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New Category of Reservation, EWS
Context
- The Supreme Court has now upheld the validity of the 103rd constitutional amendment. For instance, economic criterion was provided for this new category of affirmative action.
What is the verdict of supreme court?
- SC/ST Excluded in new clause: The Scheduled Castes, Scheduled Tribes and non-creamy layer Other Backward Classes were excluded from the newly inserted clauses of Article 15(4) and 16(4).
- The ceiling of 50 per cent reservation was breached: The cap of 50% is breached and the individual rather than the group became the basis of backwardness.
Do you know?
- Indra Sawhney Vs. Union of India -Issued 50% Cap on Caste-based reservation: In the case the Supreme Court held that reservation for beneficiaries should not exceed 50% of India’s population. It was this case that issued a cap limit on caste-based reservations.
The Backgrounder: What are concerns over the reservation verdicts so far?
- Judiciary is reluctant supporter of reservation: A closer look at the judicial response to reservation policies from Dorairajan (1951) to MR Balaji (1963) to Indra Sawhney (1992) to M Nagaraj (2006) shows that the Indian judiciary has not been quite supportive of such policies.
- New conditions for new category of reservation: In many cases, it created new conditions in the implementation of such policies by introducing several exclusions/doctrines/rules etc. In fact, Parliament had to amend the Constitution through the 77th amendment to overturn Indra Sawhney judgment against reservation in promotions.
- Reservation in promotion cancelled: The 85th constitutional amendment was passed to undo the Virpal Singh Chauhan (1995) and Ajit Singh (1999) judgments that had introduced the “catch up rule” under which general candidates, who are promoted after SC/ST candidates, will regain their seniority over earlier promoted SC/ST candidates.
- Concerns about dilution of merit: Basically, Indian courts have been emphasising merit and have been concerned about the dilution of “merit”. In several reservation matters, the courts have been more interested in protecting the interests of general categories.
- 90% population is eligible under EWS: As a matter of fact, the EWS reservation is for the erstwhile general candidates: The Rs 8-lakh family income provision covers over 90 per cent of our population.
What is the significance of this recent Judgement?
- New category on economic basis: The majority verdict is right in saying that though reservation on economic basis is new it has not made the Constitution unrecognizable. Justice Trivedi said the legislature best understands the needs of the people. The majority does have a point in holding that the basic structure doctrine does not bind Parliament from laying down the economic criterion. Such a basis does not impinge on the equality code of the Constitution.
- Poverty as an injustice: Justice Maheshwari has quoted a number of judgments in which poverty was mentioned as a fundamental source backwardness. Justice Maheshwari held that poverty is not merely a stage of stagnation but a point of regression.
- Identity of constitution will not change: India’s affirmative action programme far was catering to only historical injustices and social backwardness. The extension of this benefit to others, in the opinion of Justice Maheshwari, won’t change the identity of the Constitution.
- Towards the justice: The court observed that the new reservation is in furtherance of the Preamble’s goal of achieving justice – social, economic and political.
- Consistent with FR’s and DPSP’s: The other judges were also of the view that any provision that is consistent with fundamental rights and directive principles cannot be held to be in the teeth of the basic structure doctrine.
- Constitutional amendment upheld: Constitutional amendments are rarely struck down since this can be done only on the narrow ground of the amendment being violative of the basic structure of the Constitution. Since 1973, when the basic structure doctrine was propounded, over 70 amendments had been passed but only five have so far been struck down. The NJAC was the last one in 2016.
Critical analysis of judgement
- Goes to Individual and not group reservation: Economic disadvantage is individual, unlike caste discrimination. It carries no social stigma. The Court has gone against the earlier precedents on this point, which is why Justice Bhat was not able to persuade himself to agree with this reasoning, particularly when SC/ST/OBC categories have been excluded.
- Argument over level playing field for open category: The majority was of the view that such an exclusion was inevitable for the true operation and effect of new policy. If existing beneficiaries are not excluded, it would amount to excessive benefit and advantage. Justice Maheshwari said that in the vertical reservation provided to these groups also, others are excluded. He said that those who are themselves receiving the benefit of others’ exclusion cannot object to their exclusion in the reservation policy made for others.
- Debate on SC/ST exclusion: Justice Bhat observed that since the bulk of the poorest people belong to SC/ST/OBC groups, their exclusion is not right. The majority was also of the view that Parliament is entitled to experiment with new policies.
- 50% ceiling breached: The majority also cited a number of earlier judgments on the 50 per cent ceiling such as NM Thomas (1976), in which Justices Fazal Ali and V R Krishna Iyer observed that the arithmetical limit cannot be pressed too far. In Vasanth Kumar (1985), Justice Chinnappa Reddy observed that “for a court to say that reservation should not exceed 40 per cent, 50 per cent or 60 per cent would be arbitrary and the Constitution does not permit us to be arbitrary”.
- Indira Sawhney judgement is overturned: Even Indra Sawhney had kept a small window for the government to go beyond the 50 per cent ceiling. The real question is would the Court have permitted such a breach at the all-India level if the same had been done for the existing beneficiaries of the reservation policy.
- justice to general categories is not injustice to others: Justice Maheshwari admitted so when he observed that the 50 per cent limit was for the benefit of general candidates and it causes no injustice to the reserved categories. Justice Bhat, though, felt this may open the floodgates.
Conclusion
- Justice should not only be done but should also be appear to have been done. Economical weaker section reservation was an effort to pacify the dissatisfaction among general categories against reservation. However, the merit system will be compromise or not only time will tell.
Mains Question

Q. Does exclusion of SC/ST from EWS reservation is justifiable? How EWS reservation will impact the merit system in India?

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November 8, 2022
[Burning issue] World Energy Outlook Report 2022
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Context
- Recently, the International Energy Agency released its flagship World energy outlook report. The report analyses the current and future energy of the world and specific regions.
- In this context, this edition of the burning issue is highlighting the key observations made in the report about the energy scenario of the world and the relevant way forward.
About the WEO Report
- The World Energy Outlook report is the International Energy Agency’s annual publication
- and is recognized as the authoritative source for global energy projections and analysis.
- The report presents detailed projections of production, energy demand, trade and investment, and fuel by fuel region-wise.
- It offers crucial insights into the world’s energy demand and supplies under various scenarios and the implications for energy security, climatic goals, and economic growth.
Three Possible Scenarios

The Outlook has explored three scenarios that provide a framework for thinking about the future of energy and exploring the implications of various policy choices, investment trends, and technology dynamics. The scenarios are:
- Stated Policies Scenario (STEPS): which looks not at what governments say they will achieve, but at what they are actually doing to achieve the targets and objectives they have set out, and assesses where this leads the energy sector.
- Announced Pledges Scenario (APS): which examines where all current announced energy and climate commitments – including net zero emissions pledges as well as commitments in areas such as energy access – would take the energy sector if implemented in full and on time.
- Net Zero Emissions by 2050 Scenario: which maps out a way to achieve a 1.5 °C stabilization in global average temperature and meet key energy‐related UN Sustainable Development Goals.
Key findings of the report – World View

(A) Global energy crisis and the world economy:
- Russia’s invasion of Ukraine has sparked a global energy crisis. According to the report, Russia’s actions have turned a rapid economic recovery from the pandemic into full‐blown energy turmoil.
- The crisis has stoked inflationary pressures and created a looming risk of recession, as well as a huge USD 2 trillion windfalls for fossil fuel producers above their 2021 net income.
(B) Is the crisis a boost, or a setback, for energy transitions?
- With energy markets remaining extremely vulnerable, today’s energy shock is a reminder of the fragility and unsustainability of our current energy system. A key question for policymakers is whether the crisis will be a setback for clean energy transitions or will catalyze faster action.
- Climate policies and net zero commitments were blamed in some quarters for contributing to the run‐up in energy prices, but there is scant evidence for this.
- In the most affected regions, higher shares of renewables were correlated with lower electricity prices, and more efficient homes and electrified heat have provided an important buffer for some – but far from enough – consumers.
(C) Policy responses are fast‐tracking the emergence of a clean energy economy
- New policies in major energy markets help propel annual clean energy investment to more than USD 2 trillion by 2030.
- Clean energy becomes a huge opportunity for growth and jobs, and a major arena for the international economy. As markets rebalance, renewables, supported by nuclear power, see sustained gains; the upside for coal from today’s crisis is temporary.
- The increase in renewable electricity generation is sufficiently fast to outpace growth in total electricity generation, driving down the contribution of fossil fuels for power competition.
(D) Fossil fuel peak into view now
- For the first time, a WEO scenario based on prevailing policy settings has the global demand for each of the fossil fuels exhibiting a peak or plateau.
- In the STEPS, coal use falls back within the next few years, natural gas demand reaches a plateau by the end of the decade, and rising sales of electric vehicles (EVs) mean that oil demand levels off in the mid‐2030s before ebbing slightly to mid‐century.
- Global fossil fuel use has risen alongside GDP since the start of the Industrial Revolution in the 18th century: putting this rise into reverse while continuing to expand the global economy will be a pivotal moment in energy history.
(E) Led by clean electricity, some sectors are poised for a faster transformation
- Investments in clean electricity and electrification, along with expanded and modernized grids, offer clear and cost‐effective opportunities to cut emissions more rapidly while bringing electricity costs down from their current highs.
- Today’s growth rates for the deployment of solar PV, wind, EVs and batteries, if maintained, would lead to a much faster transformation than projected in the STEPS, although this would require supportive policies not just in the leading markets for these technologies but across the world.
- Supply chains for some key technologies – including batteries, solar PV and electrolyzers – are expanding at rates that support higher global ambition.
(F) Efficiency and clean fuels get a competitive boost
- Today’s high energy prices underscore the benefits of greater energy efficiency and are prompting behavioral and technology changes in some countries to reduce energy use.
- Demand for cooling needs to be a particular focus for policymakers, as it makes the second‐ largest contribution to the overall rise in global electricity demand over the coming decades (after EVs).
- In the STEPS, cooling demand in emerging and developing economies rises by 2 800 terawatt‐hours by 2050, which is the equivalent of adding another European Union to today’s global electricity demand.
- This growth is reduced by half in the APS because of tighter efficiency standards and better building design and insulation bolstered by stronger policy support – which are brightening the prospects for many low‐emissions fuels.
However, there is a FLIP SIDE too

(A) Rapid transitions ultimately depend on investment
- A huge increase in energy investment is essential to reduce the risks of future price spikes and volatility and to get on track for net zero emissions by 2050.
- From USD 1.3 trillion today, clean energy investment rises above USD 2 trillion by 2030 in the STEPS, but it would have to be above USD 4 trillion by the same date in the NZE Scenario, highlighting the need to attract new investors to the energy sector.
- Governments should take the lead and provide strong strategic direction, but the investments required are far beyond the reach of public finance. It is vital to harness the vast resources of markets and incentivize private actors to play their part.
- Shortfalls in clean energy investment are largest in emerging and developing economies, a worrying signal given their rapid projected growth in demand for energy services.
(B) What if transitions don’t pick up?
- If clean energy investment does not accelerate as in the NZE Scenario then higher investment in oil and gas would be needed to avoid further fuel price volatility, but this would also mean putting the 1.5 °C goal in jeopardy.
- In the STEPS, an average of almost USD 650 billion per year is spent on upstream oil and natural gas investment to 2030, a rise of more than 50% compared with recent years. This investment comes with risks, both commercial and environmental, and cannot be taken for granted.
India-specific observations in the report
- Coal and gas production to peak: India’s coal generation and oil imports are going to peak in 2030, while gas imports will double around the same time.
- Challenge of electricity sufficiency: The primary challenge for the country is going to be about meeting its rising electricity demand. It said India will have to find out ways to meet this increasing demand with renewables and nuclear on a scale that is large enough to reduce the use of “unabated coal‐fired generation”, which provides nearly three‐quarters of the electricity supply currently.
- 2^nd Largest coal producer now: It revealed that India became the world’s second‐largest coal producer in 2021 (in energy terms), overtaking Australia and Indonesia, and that it plans to increase domestic production by more than 100 million tonnes of coal equivalent (Mtce) by 2025 from the current levels.
- Again rise in coal demand: Coal demand in India rose rapidly between 2010 and 2019, mainly as increases in electricity demand were largely met through coal‐fired power. Coal use in India dropped by 7 percent in 2020 due to the pandemic, but increased by 13 percent in 2021, therefore already surpassing the 2019 levels.
- Rising energy demand: India becomes the world’s most populous country by 2025 and, combined with the twin forces of urbanisation and industrialisation, this underpins rapid growth in energy demand, which rises by more than 3 percent per year in the stated policies scenario (STEPS) from 2021 to 2030. It sees the largest increase in energy demand of any country,
- Possible energy security: Even though India continues to make great strides with renewables deployment and efficiency policies, the sheer scale of its development means that the combined import bill for fossil fuels doubles over the next two decades in the STEPS, with oil by far the largest component. This points to continued risks to energy security.
- Oil imports to peak soon: Coming to oil imports, the IEA found that in the APS, India’s oil imports will peak in the 2030s and fall below the current level by 2050.
What should be done for a better energy transition
- Affordable transition: A focus on affordable, secure transitions based on resilient supply chains from non-renewables to renewables should be made. A new energy security paradigm is needed to maintain reliability and affordability while reducing emissions. The Outlook includes ten principles that can help guide policymakers through the period when declining fossil fuel and expanding clean energy systems co‐exist.
- Scale up clean energy technologies: Synchronise scaling up a range of clean energy technologies with scaling back fossil fuels.
- Promote energy efficiency also: Tackle the demand side and prioritize energy efficiency. The energy crisis highlights the crucial role of energy efficiency and behavioral measures to help avoid mismatches between demand and supply.
- Inclusive energy economy: Reverse the slide into energy poverty and give poor communities a lift into the new energy economy.
- Bring down the cost: Collaborate to bring down the cost of capital in emerging markets and developing economies. The cost of capital is a signal of the real and perceived risks associated with the investment, and it is higher in many emerging markets and developing economies than elsewhere.
- Promote supply chain resilience: Ensure diverse and resilient clean energy supply chains. High and volatile critical mineral prices and highly concentrated supply chains could delay energy transitions or make them more costly.
- Foster the climate resilience of energy infrastructure: The growing frequency and intensity of extreme weather events present major risks to the security of energy supplies.
Conclusion
- The energy crisis promises to be a historic turning point towards a cleaner and more secure energy system. The alignment of economic, climate and security priorities has already started to move the dial toward a better outcome for the world’s people and the planet.
- Much more remains to be done, and as these efforts gather momentum, it is essential to bring everyone on board, especially at a time when geopolitical fractures on energy and climate are all the more visible. This means redoubling efforts to ensure that a broad coalition of countries has a stake in the new energy economy.
- The journey to a more secure and sustainable energy system may not be a smooth one. But today’s crisis makes it crystal clear why we need to press ahead.
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November 8, 2022
Supreme Court, in a majority verdict, upholds the EWS Quota
A Constitution Bench of the Supreme Court, in a 3:2 majority decision, upheld the validity of the 103rd Constitutional Amendment, which provides 10% reservation in government jobs and educational institutions to the Economically Weaker Sections (EWS) of society.

What else?
- The judgment excludes the “poorest of poor” among Scheduled Castes (SC), Scheduled Tribes (ST), Socially and Educationally Backward Classes (SEBC) and Other Backward Classes (OBC) from its scope.
What was the 103^rd Amendment?
- The 103rd Amendment inserted Articles 15(6) and 16(6) in the Constitution to provide up to 10 per cent reservation to the economically weaker sections (EWS) among non-OBC and non-SC/ST sections .
- In other words, the amendment had changed the Constitution and introduced a quota for the poor among the so-called ‘forward castes’ or ‘general category’.
Quota available to EWS
- The quota is available in:
1. Admissions to higher educational institutions and
2. Initial recruitment in central government jobs
- The amendment also empowered state governments to provide reservation on the basis of economic backwardness.
On what basis was the quota challenged?

Ans. Violation of Basic Structure
- Violation of basic structure: Essentially, the challenge was based on the argument that the 103rd amendment violated the “basic structure” of the Constitution.
- Socially disadvantage: The primary argument in this case stemmed from the view that the special protections guaranteed to socially disadvantaged groups is part of the basic structure.
- Sole economic criterion: The 103rd Amendment departs from this by promising special protections on the sole basis of economic status.
Key arguments by the Judges

[A] Majority Opinion

Three judges, Justices Dinesh Maheshwari, Bela Trivedi, and S B Pardiwala, have upheld the validity of the 103rd amendment.
1. Justice Dinesh Maheshwari: He has ruled that reservation based only on economic criteria does not violate the basic structure of the Constitution, and that the exclusion of classes covered in Article 15(4) and 16(4) — that is OBCs and SC/STs — in the 103rd amendment does not damage the basic structure.
2. Justice Bela Trivedi: She has concurred with Justice Maheshwari. She ruled that treating EWS as a separate class would be a reasonable classification, and that treating unequals equally would violate the principle of equality under the Constitution.
3. Justice Trivedi: He said that 75 years after independence, it was time to revisit the system of reservation in the larger interest of society.
4. Justice S B Pardiwala: He concurred with Justice Maheshwari and Justice Trivedi. He observed that “Reservation is not an end, it is means, it should not be allowed to become a vested interest.
[B] Minority (Dissenting) Opinion
1. Justice Bhat: He has ruled that while reservation on economic criteria is per se not violative of the Constitution, excluding SC/ST/OBC from the purview of EWS is violative of basic structure. He has struck down Articles 15(6) and 16(6) for being discriminatory and violative of the equality code.
2. CJI Lalit: He said he concurs entirely with the judgment of Justice Bhat.
What about the 50% ceiling on quotas?
- The judgment appears to have struck down the ceiling of 50%.
- Justice Maheshwari said that reservations for EWS does not violate basic structure on account of 50% ceiling limit because ceiling limit is not inflexible.
How the judiciary deviated from its earlier judgments?
- However, the dissenting opinion says that permitting breach of 50% would result in compartmentalization, and the rule of right to equality will become right to reservations.
- The apex court has repeatedly underlined the 50% ceiling on reservations imposed by the landmark Indra Sawhney judgment of 1992.
- On that basis, attempts by a number of states have been struck down.
- Several of those issues can now be reopened. Now states can rebel with their populist moves to provide reservations to some communities. Ex. Nomadic Tribes case in Maharashtra.
What is the EWS Quota?
- The EWS criteria for employment and admission was notified on January 31, 2019 by the Department of Personnel and Training (DoPT) based on the 103rd Amendment.
- Under the 2019 notification, a person who was not covered under the scheme of reservation for SCs, STs, and OBCs, and whose family had a gross annual income below Rs 8 lakh, was to be identified as EWS.
- The notification specified what constituted “income”, and excluded some persons from the EWS category if their families possessed certain specified assets.
Broad issues with EWS quota
- Reduction within general category: The EWS quota remains a controversy as its critics say it reduces the size of the open category, besides breaching the 50% limit on the total reservation.
- Arbitrariness over income limit: The court has been intrigued by the income limit being fixed at ₹8 lakh per year. It is the same figure for excluding the ‘creamy layer’ from OBC reservation benefits.
- Socio-economic backwardness: A crucial difference is that those in the general category, to whom the EWS quota is applicable, do not suffer from social or educational backwardness, unlike those classified as the OBC.
- Metropolitan criteria: There are other questions as to whether any exercise was undertaken to derive the exceptions such as why the flat criterion does not differentiate between metropolitan and non-metropolitan areas.
- OBC-like criteria: The question the court has raised is when the OBC category is socially and educationally backward and, therefore, has additional impediments to overcome.
- Not based on relevant data: In line with the Supreme Court’s known position that any reservation or norms for exclusion should be based on relevant data.
- Breaches reservation cap: There is a cap of 50% on reservation as ruled in the Indira Sawhney Case. The principle of balancing equality ordains reservation.
Way forward
- Preserving the merit: We cannot rule out the sorry state of economic backwardness hampering merit in our country.
- Rational criteria: There has to be collective wisdom to define and measure the economic weakness of certain sections of society in order to shape the concept of economic justice.
- Judicial guidance: Judicial interpretation will pave the wave forward for deciding the criterion for EWS Quota.
- Targetted beneficiaries. The center needs to resort to more rational criteria for deciding the targeted beneficiary of this reservation system. Caste Census data can be useful in this regard.
- Income study: The per capita income or GDP or the difference in purchasing power in the rural and urban areas, should be taken into account while a single income limit was formulated for the whole country.
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November 8, 2022
Centre opposes petition in HC against provisions of Surrogacy Law
The Centre has opposed before the Delhi HC a petition challenging certain provisions of the surrogacy laws, including the Assisted Reproductive Technology (Regulation) Act, 2021, and the Surrogacy (Regulation) Act, 2021.

What is the case?
- The provisions challenged includes the exclusion of a single man and a married woman having a child from the benefit of surrogacy as a reproductive choice.
- It challenged the ban on commercial surrogacy.
- In their plea, the petitioners have stated that commercial surrogacy is the only option available to them.
Invoking Article 21
- The personal decision of a single person about the birth of a baby through surrogacy, that is, the right of reproductive autonomy is a facet of the right to privacy guaranteed under Article 21 of the Constitution.
- Thus, the right affecting a decision to bear or beget a child through surrogacy cannot be taken away, the petition said.
What rules say?
- Under the Surrogacy (Regulation) Act, 2021, a married couple can opt for surrogacy only on medical grounds.
- The law defines a couple as a married Indian “man and woman” and also prescribes an age-criteria with the woman being in the age of 23 years to 50 years and the man between 26 years to 55 years.
- The couple should not have a child of their own.
- Though the law allows single women to resort to surrogacy, she has to be a widow or a divorcee between the age of 35 and 45 years.
- The law does not allow single men to go for surrogacy.
Distinct features of the Surrogacy (Regulation) Act, 2021
- Definition of surrogacy: It defines surrogacy as a practice where a woman gives birth to a child for an intending couple with the intention to hand over the child after the birth to the intending couple.
- Regulation of surrogacy: It prohibits commercial surrogacy, but allows altruistic surrogacy which involves no monetary compensation to the surrogate mother other than the medical expenses and insurance.
- Purposes for which surrogacy is permitted: Surrogacy is permitted when it is: (i) for intending couples who suffer from proven infertility; (ii) altruistic; (iii) not for commercial purposes; (iv) not for producing children for sale, prostitution or other forms of exploitation; and (v) for any condition or disease specified through regulations.
- Eligibility criteria: The intending couple should have a ‘certificate of essentiality’ and a ‘certificate of eligibility’ issued by the appropriate authority ex. District Medical Board.
Eligibility criteria for surrogate mother:
- To obtain a certificate of eligibility from the appropriate authority, the surrogate mother has to be:
1. A close relative of the intending couple;
2. A married woman having a child of her own;
3. 25 to 35 years old;
4. A surrogate only once in her lifetime; and
5. Possess a certificate of medical and psychological fitness for surrogacy.
- Further, the surrogate mother cannot provide her own gametes for surrogacy.
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November 8, 2022
MHA annual report underlines need to update NPR
The Home Ministry in its latest annual report has underlined the need to update the National Population Register (NPR) database across the country, except Assam.

What did the MHA say?
- The report said the NPR is prepared under various provisions of the Citizenship Rules, 2003, framed under the Citizenship Act, 1955.
- In 2015, a few fields such as name, gender, date and place of birth, place of residence and father’s and mother’s name were updated and Aadhaar, mobile and ration card numbers were collected.
- To incorporate the changes due to birth, death and migration, the MHA pressed the need to update it again.
What is National Population Register (NPR)?
- The NPR is a Register of usual residents of the country.
- It is being prepared at the local (Village/sub-Town), sub-District, District, State and National level.
- This is carried under provisions of the Citizenship Act 1955 and the Citizenship Rules, 2003 (Registration of Citizens and issue of National Identity Cards).
- It is mandatory for every usual resident of India to register in the NPR.
- A usual resident is defined for the purposes of NPR as a person who has resided in a local area for the past 6 months or more or a person who intends to reside in that area for the next 6 months or more.
Why NPR is under fire?
- Though NPR was first compiled in 2010 and updated in 2015, the new questions were part of a trial exercise involving 30 lakh respondents in September 2019.
- The exercise has perceived the first step toward the compilation of the National Register of Indian Citizens (NRIC) according to Citizenship Rules, 2003.
How are NRIC and NPR related?
- Out of the NPR, a set of all usual residents of India, the government proposes to create a database of “citizens of India”.
- Thus, the “National Register of Indian Citizens” (NRIC) is a sub-set of the NPR.
- The NRIC will be prepared at the local, sub-district, district and State levels after verifying the citizenship status of the residents.
- The rules say the particulars of every family and individual found in the Population Register shall be verified and scrutinized by the Local Registrar.
How NPR is different from Census?
- The census involves a detailed questionnaire — there were 29 items to be filled up in the 2011 census.
- They are aimed at eliciting the particulars of every person, including age, sex, marital status, children, occupation, birthplace, mother tongue, religion, disability and whether they belonged to any SC or ST.
- On the other hand, the NPR collects basic demographic data and biometric particulars.
- While the census is legally backed by the Census Act, 1948, the NPR is a mechanism outlined in a set of rules framed under the Citizenship Act, 1955.
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November 8, 2022
Species in news: Snow Leopard
The first-ever recording of the snow leopard from the Baltal-Zojila region has renewed the hope for the elusive predator in the higher altitudes of Jammu and Kashmir and Ladakh.

Why in news?
- Not much is known about the number of snow leopards in J&K and Ladakh.
- The Snow Leopard Population Assessment of India (SPAI) has been concluded so far in Himachal Pradesh and Uttarakhand.
- The estimated population of the great cat is 50 and 100 in these two States respectively.
Snow Leopard
- Snow leopards live in the mountainous regions of Central and Southern Asia.
- In India, their geographical range encompasses a large part of the western Himalayas, including the UTs of J&K and Ladakh, Himachal Pradesh, Uttarakhand and Sikkim and Arunachal Pradesh in the eastern Himalayas.
- Project Snow Leopard was launched in 2009 for strengthening wildlife conservation in the Himalayan high altitudes.
- It aims at promoting a knowledge-based and adaptive conservation framework that fully involves the local communities, who share the snow leopard’s range, in conservation efforts.
Conservation status
- In the IUCN- Red List, the snow leopard is listed as Vulnerable.
- In addition, the snow leopard, like all big cats, is also listed in Appendix I of the Convention on International Trade of Endangered Species (CITES).
- In India, the snow leopard is listed under Schedule I of the Wildlife (Protection) Act, 1972, giving it the highest protection status under the country’s laws.
Conservation Efforts by India
- The Government of India has identified the snow leopard as a flagship species for the high altitude Himalayas.
- India is also party to the Global Snow Leopard and Ecosystem Protection (GSLEP) Programme since 2013.
- HimalSanrakshak: It is a community volunteer programme, to protect snow leopards, launched in October 2020.
- In 2019, First National Protocol was also launched on Snow Leopard Population Assessment which has been very useful for monitoring populations.
- SECURE Himalaya: Global Environment Facility (GEF)-United Nations Development Programme (UNDP) funded the project on conservation of high altitude biodiversity and reducing the dependency of local communities on the natural ecosystem.
- Project Snow Leopard (PSL): It was launched in 2009 to promote an inclusive and participatory approach to conserve snow leopards and their habitat.
- Snow Leopard is on the list of 21 critically endangered species for the recovery programme of the Ministry of Environment Forest & Climate Change.
- Snow Leopard conservation breeding programme is undertaken at Padmaja Naidu Himalayan Zoological Park, Darjeeling, West Bengal.
Global Snow Leopard and Ecosystem Protection (GSLEP) Programme
- The GSLEP is a high-level inter-governmental alliance of all the 12 snow leopard range countries.
- The snow leopard countries namely, India, Nepal, Bhutan, China, Mongolia, Russia, Pakistan, Afghanistan, Kyrgyzstan, Kazakhstan, Tajikistan, and Uzbekistan.
- It majorly focuses on the need for awareness and understanding of the value of Snow Leopard for the ecosystem.
Living Himalaya Network Initiative
- Living Himalayas Initiative (LHI) is established as one of WWF’s global initiatives to bring about transformational conservation impact across the three Eastern Himalayan countries of Bhutan, India (North-East) and Nepal.
- Objectives of LHI include adapting to climate change, connecting to habitat and saving iconic species.
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November 8, 2022
Price regulation of UPI
Context
- The recent discussion paper by the RBI on charges in payment systems has triggered widespread public debate, especially on the zero-charge framework for UPI transactions.
Know the basics- What is UPI?
- UPI is an instant real-time payment system developed by National Payments Corporation of India (NPCI) facilitating inter-bank transactions.
- The interface is regulated by the Reserve Bank of India and works by instantly transferring funds between two bank accounts on a mobile platform.
Why RBI wants to intervene?
- Two important reasons:
1. Goals of financial inclusion: Viewing digital payments as a public good and
2. Addressing market failures: Such as the presence of dominant firms or externalities that may arise due to the two-sided nature of this market.
- For both objectives, regulators might want to cap or set to zero the MDR or merchant discount rate (paid by merchants to their payments service provider) or the interchange fee (paid by the acquiring bank to the issuing bank), or both.
What is the present scenario of Pricing UPI?
- Subsidies on operational cost: In the case of UPI, the government subsidizes the operational costs of facilitating UPI transactions, which is reportedly inadequate. In January 2022, the Payments Council of India reported that the industry expected a loss of Rs 5,500 crore.
- Subsidies are inadequate: Even with a public good motive, in the absence of evidence, one cannot assume this to be the best allocation of limited government resources. As per the Indian Digital Payments Report (second quarter of 2022), the average ticket size of P2M transactions (person to merchant) on UPI is Rs 820. RBI’s estimated cost of Rs 2 for processing a Rs 800 transaction, is 0.25 per cent of the transaction value, much lower than the MDR cap set at 0.9 per cent for debit cards and an MDR of 2 per cent being pro- posed for RuPay credit cards on UPI.
- Presently MDR is Zero: A floor MDR of 0.25 per cent is, therefore, not unreasonable. Arguably, these are substitutable services competing for the same pool of merchants. Policymakers must also bear in mind behavioural challenges in moving from zero MDR to a positive MDR. Anchored at a zero MDR since January 2020, merchants, especially ones with thin margins, may hesitate to accept an increase in MDR, even if they benefit on net terms.
How RBI can regulate price?
- Understanding what to regulate: In order to understand how and what to regulate, we borrow from the rationale followed for other two-sided markets that exhibit cross-platform externalities. consumers benefit more if the size of the merchant network accepting a payment instrument (for example, debit cards) is larger and, at the same time, merchants benefit more if many consumers use debit cards.
- Recovering the cost from merchants: Card networks like Visa and Mastercard compete for banks, usually not too many, to issue their cards. Since the acquiring bank must pay the interchange fee, they recover these costs from merchants.
- Regulating the interchange fee: In most jurisdictions, the interchange fee is regulated to prevent banks from charging exploitative rates and the MDR is left to be commercially determined. This is also done for administrative ease, since banks are fewer, while monitoring bank-merchant contracts can be onerous.
- Charging the MDR: In the UPI parallel, involving payment service providers of payers and payees, the remitter and beneficiary banks as well as NPCI, RBI could either regulate the inter change fee between payment service providers or the merchant discount rate charged by them.
- Deciding between MDR and interchange fee: The market for merchant acquisition is usually more competitive and can be left unregulated, and if necessary, the interchange fee between the two payment service providers can be regulated. If both markets are sufficiently competitive, regulation could mean establishing a floor/ cap charge. The decision what to regulate is, therefore, crucial.
- Example of telecom industry: A related example is available in the telecom industry where facilities provision is regulated through the interconnection fee, while retail prices for the relatively competitive telecom services segment are left to the market. For externalities of the two-sided market to be internalized, the choice of instrument must be carefully evaluated.
- Determining the actual price: The next step is to determine the price level, which is a lot trickier. Drawing from economic theory, the optimal level would depend on whether the regulator cares only about consumer welfare (as op- posed to total welfare), and whether the issuing and acquiring banks make positive margins on each transaction.
How digital payment is charged around the world and India’s requirement?
- Example of PIX of Brazil: Pix, a two-year-old interoperable digital payments system in Brazil, provides a good comparison of how price setting might be considered in the UPI context. Pix does not regulate MDR, payment service providers have the freedom to set MDR, though in practice most banks currently don’t charge an MDR, largely to onboard more merchants on their platforms.
- MDR appears less attractive: The indicated cost is R$ 0.01 for each 10 transfers, or 16 paise in Indian rupees for every s10 transactions. This is substantially lower than the costs estimated for India and is also perhaps the reason why payment service providers are not immediately inclined to recover costs through MDR.
- Not hampering the innovation and investment: In general, benefits of regulatory intervention should outweigh the costs of intervening. The costs of intervening not only include the administrative costs, but also potential costs arising from setting the wrong interchange fee or cap, as well as any costs arising from the impact of the intervention on future investment and innovation in the market.
Do you know what is Merchant Discount Rate?
- Merchant Discount Rate (alternatively referred to as the Transaction Discount Rate or TDR) is the sum total of all the charges and taxes that a digital payment entails.
- Simply put, it is a charge to a merchant by a bank for accepting payment from their customers in credit and debit cards every time a card gets swiped in their stores.
- Similarly, MDR also includes the processing charges that a payments aggregator has to pay to online or mobile wallets or indeed to banks for their service.
Conclusion
- Policymakers must collect more data on costs of transfer, user preferences, both merchants and consumers, as well as undertake a thorough analysis of substitutability and competition in the digital payments sector, to put our best foot forward in helping achieve the potential of UPI in India.
Mains Question

Q. Explain the reasons for success of UPI in India? Analyze the Role of UPI in financial inclusion in India?

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November 7, 2022
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Topics for Today’s questions:

GS-1 Population and associated issues

GS-2 Important aspects of governance, transparency and accountability, e-governance applications

GS-3 Conservation, environmental pollution and degradation, environmental impact assessment.

GS-4 Aptitude and foundational values for Civil Service, integrity, impartiality and non-partisanship, objectivity, dedication to public service, empathy, tolerance and compassion towards the weaker sections.

Question 1)

Q.1 “The processes of industrialization, urbanization and migration have led to loosening of the traditional methods of social control rendering an individual vulnerable to the stresses and strains of modern life.” Discuss the above statement with reference to the rising problem of drug abuse in Indian society. (15 Marks)

Question 2)

Q.2 Highlighting the major hurdles in citizen-centric digitalization, suggest ways to further democratize digitilization in the country. (10 Marks)

Question 3)

Q.3 The inclusion of loss and damage finance in the agenda for COP27 has renewed the fight for justice for communities losing their homes, crops, and income. Discuss. (10 Marks)

Question 4)

Q.4 Examine the relevance of following in the context of civil services: 1) Neutrality 2) Intellectual Courage 3) Diligence 4) Selflessness (10 Marks)

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November 7, 2022
Unrecognized Madrasas and Government’s role
Context
- There has been a lot of unhappiness about the UP-government’s decision to conduct a survey of unrecognized madrasas in Uttar Pradesh.
What is the intention of Government behind such survey?
- The government’s claim: The survey being an exercise to help the madrasas and their students has been less than convincing.
- Questionable intention: In the past, the government has called into question the patriotism of madrasa students by asking their management to hoist the national flag on Independence Day, record the proceedings, and submit the same to the local magistrate.
Know the History of Madrasa
- After the birth of Islam in the seventh century, Muslims who wanted a religious education joined study circles in mosques where teachers provided instruction.
- Over the next 400 years, additional centers of learning, founded and endowed by rulers, high officials and wealthy members of the community, met in public and private libraries. These were early forms of madrasa.
- By the 11^th century madrasas were well-established independent centers of learning with some of the features they retain today.
- As economies modernized, Muslims who continued to choose madrasas over other schools found that they lacked the training needed for well-paid jobs. Their socioeconomic mobility suffered. Nonetheless, many madrasas refused to integrate nonreligious subjects into their curriculum.
What is the status of unrecognized madrasas?
- Lack of direction: Most are floundering for lack of direction. Many impart elementary theological instruction through semieducated teachers.
- Dependence on community funding: If at all there, secular education is, at best, piecemeal. Madrasas depend almost fully on community funding.
- Funding cut with covid19: With the economic downturn first post demonetization and then postCOVID19, that funding has reduced to a trickle. Under normal circumstances, an institute pressed for funds cuts down on expansion plans or puts new courses on hold.
- Existential crisis for madrasa: It has become an existential crisis for tens of thousands of students. The dwindling community sponsorship has translated into less food to eat and no warm clothes for them. If that makes it seem as though the madrasas’ prime purpose is to feed and clothe the needy, the reality is not entirely different.
- Feeding and imparting the literacy: Most students are first generation learners. Many of them are sent by parents with the idea that there will be one less mouth to feed at home. For poverty-stricken parents, the madrasas’ free boarding and lodging is a blessing. The education is often considered a bonus. The Much-maligned madrasas feed the hungry and impart literacy.
What the case studies reveal about education via unrecognizes madrasas?
- Example of CBSE along with Quran: Jamiatul Hamd in Gautam Buddha Nagar district is a rare madrasa which encouraged its students to take the Central Board of Secondary Education exams alongside learning to be Hafize Quran (one who has memorized the Quran).
- Shortage of funds: The madrasa is so short of funds that the management does not know where the next meal for the students will come from. In the past, Good Samaritans sent packs of rice, lentils, wheat flour and cooking oil.
- Decline in sponsorship: Sponsorship has come down drastically, leaving the students with the prospect of going to bed hungry. Also, 40% of the students in this madrasa who went back home during the COVID19 pandemic did not return.
- Jamia Mahade Noor madrasa in Dadri: Where 30% of the students dropped out after COVID19. Day scholars face an uncertain future. Some teachers could not be retained due to paucity of funds.
- Closing down of madrasa: The cash-strapped Jamia Naseeriya Islamia in Ghaziabad closed down its wing for outstation students. In mosques across Uttar Pradesh, community aid is sought for unrecognized madrasas after daily prayers.
- Fear about survey: In almost every madrasa, there are lingering apprehensions about their fate after the survey. Many packed off their outstation students in panic when the survey started. The students may never return.
- Some student never returned: Incidentally, these schools had also sent back their outstation students after the nationwide lockdown was imposed in March 2020. Many students did not return as their parents got them employed as either farm labourers or at sundry tea shops or eateries. A student who may have at one time dreamed of becoming a scholar of Islam is now a menial worker.
What government can do?
- Upholding the Constitutional right: According to constitution the Right of a citizen not to be denied admission into state maintained and state-aided institution on the ground only of religion, race, caste, or language [Art.29(2)2]-” No citizen shall be denied admission into any educational institution maintained by the State or receiving aid out of State funds on grounds only of religion, race, caste, language or any of them”
- Survey for collecting the data: Aim of survey should not be harassment but the know the status of madrasa and they’re by collecting the data to draft policy for educational and social upliftment of students of madrasa.
- Recognition of madrasa: Following the due procedure of law government can seek Registration and recognition of madrasa.
- Financial assistance to madrasa: State government can provide the one-time financial assistance for and after the feedback and review state may continue the funding.
- Education should be the priority: Government objective should be the modern education of those who are getting poor quality of education. Any constitutional or legal hindrances should not be the excuse to provide the help to needy.
Conclusion
- While government is duty bound to provide aid to registered and recognized madrasa but not mandatory to provide financial aid to unrecognized madrasa. Government can revamp the unrecognized madrasa into modern education imparting institutions. Whatever government decides, state must provide the quality education without any biases.
Mains Question

Q. What are the cultural and educational rights enshrined under constitution? Explain government can provide the educational assistance to unrecognized religious institutions in India?

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November 7, 2022
India’s Troubled Neighborhood, Myanmar
Context
- Twenty-one months after a military coup, which derailed a decade old experiment with limited democracy, Myanmar is struggling to cope with the consequences. People are suffering, authorities and opposition forces are locked in a cycle of violent clashes, the economy is deteriorating, and ASEAN’s mission to produce a solution has failed.
Background of Present situation in Myanmar
- Violation of constitution by Military: When the Tatmadaw (military), unhappy with the victory of the Aung San Suu Kyi led National League for Democracy in the November 2020 elections, chose to violate the constitution, it acted in the belief that the people would accept its diktat, as they had done in previous decades.
- Civilian opposition continues: Clearly, military junta underestimated public anger and their commitment to freedom and democracy. Even after killing over 2,300 people and imprisoning thousands, including Ms. Suu Kyi, the military still faces a rebellion. Its plan to hold an election next year stands jeopardized.
- Imprisonment of Suu Kyi: Suu Kyi, 77, the most popular leader, has been sentenced to 26 years of imprisonment in multiple cases on apparently trumped-up charges. Besides, 1.1 million Rohingya, driven by military oppression to seek shelter in Bangladesh in 2017, continue to languish there. Dhaka’s efforts to arrange their safe return have failed.
- Migration crisis in India and Bangladesh: Armed clashes between the military and their ethnic opponents in the border region are having a spill-over effect in Bangladesh. Dhaka continues to show restraint and a preference for diplomacy to manage the situation.
How is the response of civilian opposition against military?
- National unity Government: The parallel National Unity Government (NUG) may not be recognized by any state, but it continues to receive political and financial support from abroad. It has effectively channelled popular indignation against military rule, while still being vulnerable due to the paucity of resources and the absence of a visible leader.
- Support of ethnic groups to NUG: About 20 ethnic armed organizations (EAOs), located in the east, north and west of Myanmar’s periphery, have divergent approaches towards the postcoup conflict. Many view it as an intra Bamar contestation, an issue of limited concern to them. Some like the Karens and Kachin’s support the NUG, while others, especially those controlled or supported by China, remain aloof.
- Strong military but disunity among groups: Those operating in the Chin and Rakhine states are engaged in a fierce armed conflict with the military and have enfeebled it. But overall, due to their divergences and relative weaknesses, the EAOs are unlikely to defeat the military.
- No nationwide opposition: While the opposition has performed well, it is unable to turn the tide in its favour, without a nationwide front against the Tatmadaw. National reconciliation between the military and civilian forces, and ethnic reconciliation between the majority Bamars and ethnic minorities, have been put on hold.
UN and International criticism
- Criticism of coup: The UN has been forthright in criticizing the coup. It has expressed concern over continuing violence, support for a ‘democratic transition’, a release of all political prisoners and dialogue among the parties concerned.
- Division among international community: However, the UN Secretary General’s special envoy has had little success in promoting peace. The UN’s failure lies in the sharp divisions within the international community on how to deal with this vexed issue.
- Sanction on military: The western powers have been severely critical of the military. They have put in place several restrictive measures and imposed more sanctions. They have extended support to the NUG.
- Russian support to military: On the other hand, Russia has given considerable backing to the military regime, seeing in its own isolation an opportunity to strengthen bilateral cooperation in defence and energy supplies.
- China’s exploiting the opportunity: China is keeping a door open to democratic forces even while doing business with the regime and exploiting every opportunity to ensure progress on the China-Myanmar Economic Corridor.
- ASEAN’s divided response: ASEAN is divided in three ways: Indonesia, Malaysia, and Singapore are prodemocracy; Thailand and Laos are promilitary; and Vietnam and the Philippines are ambivalent. This disunity and the Tatmadaw’s refusal to cooperate with ASEAN have led to the non-implementation of the Five Point Consensus. The upcoming ASEAN summit may provide clues on whether the grouping can forge a united stand and devise something that works better.
India’s reaction to Myanmar situation
- Refugee crisis in India: India is concerned as the postcoup conditions have adversely impacted its interests and hampered bilateral cooperation. Mega projects stand delayed. Some 50,000 refugees, as per unofficial estimates, have been camping in Mizoram.
- Advocating the democracy: Meanwhile, there is an erroneous perception that India has abandoned the Myanmar people. The reality is that India proactively advocates an early restoration of democracy, the release of prisoners, and internal dialogue.
- Myanmar under the shadow of India-China relations: Can India do more? It can explore the possibility of a combined mediatory role with ASEAN and likeminded neighbors. Will China have a role in such a group? India-China relations preclude that possibility.
- Brokering the political settlement: Through greater unity, external players can help Myanmar in creating a suitable environment for dialogue on a political settlement. Distant countries such as Norway and Japan can play a helpful role as catalysts. But the principal responsibility to construct a solution must rest with the Myanmar elite and leadership of both camps. Through resilience and pragmatism, they crafted a way out in 2011-21. They must recreate that spirit.
Conclusion
- India has been walking on tight rope on balancing national interest and restoration of democracy in Myanmar. Sooner the civil war in Myanmar ends better for India and especially for Mizoram. ‘The Golden Land’, where Lord Buddha is revered, needs to be reinspired by his teachings. Else, a prolonged, contested military rule or a failed state seems a distinct possibility.
Mains Question

Q. How situation in Myanmar is affecting the national interest of India? What is the India’s response to the military coup in Myanmar?

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November 7, 2022

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