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  • We are live! And our keys are the most authentic!

    We are live! And our keys are the most authentic!

    Everyone join in!

    https://www.youtube.com/watch?v=PPBROLP8Vxo

  • [PDF]Releasing Keys for Set C. Set A and Set B will follow in the next 20 mins.

    For explanations and the logic we have used to resolve controversial questions Register here

    Register Here!

    The solutions are marked in RED.

    Question-paper-for-Red-Boxes-Final_01Download

    First reaction from Civilsdaily

    1. Factual questions on the lines of state PCS were high.
    2. Questions on armed forces, environment were tough. These were generally not from topics that aspirants study.
    3. Polity, economics and geography were on easier lines.
    4. Economics – capital markets, bonds – https://indianexpress.com/article/upsc-current-affairs/upsc-essentials/upsc-prelims-2024-economy-six-key-areas-to-focus-9354795/
    5. IR was also on expected lines – https://indianexpress.com/article/upsc-current-affairs/upsc-essentials/upsc-prelims-2024-special-six-areas-international-relations-9356189/
    https://www.youtube.com/watch?v=MwYcS2bMd-I&t=386s

    For explanations and the logic we have used to resolve controversial questions Register here

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  • [Live]UPSC Prelims 2023 – Question Paper, Answer Key, Solutions with Explanations

    [Live]UPSC Prelims 2023 – Question Paper, Answer Key, Solutions with Explanations

    Prelims 2023 is here. And we are all with you. We will keep updating this section with all the necessary details.

    Message from entire Civilsdaily’s Team

    Good luck for tomorrow from the entire Civilsdaily Family. This is not a feel-good post but a hard-hitting one because life isnt feel good and upsc definitely isnt feel good. Tomorrow is an important day, and having the right mindset is crucial. Ultimately, Prelims is a mind game.

    1. **Going from strength to strength**

    Molightson’s story is significant. He comes from the Maring tribe in Manipur, leading a content life with limited exposure to the outside world. His painful experiences with city life and hotel management could’ve made him bitter. But not him. He learned to handle pressure. He appeared for Prelims amidst riots in Manipur. He could’ve said Prelims is not worth risking his life, given his slim chances. Instead of blaming the world for his problems, he looked inward and went from strength to strength. The right kind of people have this attitude.

    2. **Control the controllables**

    Anything you do in life with a 0.1% success rate will have uncontrollable elements. Your hard work and the inner force to push your limits are necessary conditions but not sufficient. To achieve success, many factors need to come together. Animesh, AIR 2 was battling his Mom’s cancer(where he eventually lost) on one front and fighting UPSC on the other(where he aced like none). We all want to win all fights. But all we can do is give our best and leave the rest to destiny. If you haven’t done your best, putting your best foot forward to control what you can; then you dont have the right to blame what you can’t control.

    3. **Choices you make**

    You always have a choice in how to respond to a situation. Consider last year’s Prelims. Many came out saying elimination techniques were ineffective. Yet, every ranker used a spectrum of elimination techniques, few requiring solid prior knowledge and deep conceptual understanding, while others requiring none.

    Many rankers have held sessions with us, solving the Prelims paper and explaining the same.

    What happened here? Your response was reactive. UPSC tricked you into believing what your institutes taught you was worthless. Those who could stop these thoughts gave their best. Tomorrow is not about content, or academics. That is something you can fix with time. It is about getting these life lessons right. It is about building this kind of resilience.

    Not sure whether UPSC intended its candidates to be this tough. But the kind of folks entering the services NOW definitely have the right mindset.

    🔗 For PDFs. Fill out the form here – https://bit.ly/cd_yt to register and get the keys.

  • [15th June 2024] The Hindu Op-ed: Reimagining Indian federalism

    [15th June 2024] The Hindu Op-ed: Reimagining Indian federalism

    PYQ Relevance:

    Q The concept of cooperative federalism has been increasingly emphasised in recent years. Highlight the drawbacks in the existing structure and the extent to which cooperative federalism would answer the shortcomings. (UPSC IAS/2015)
    Q How far do you think cooperation, competition and confrontation have shaped the nature of federation in India? Cite some recent examples to validate your answer. (UPSC IAS/2020)

    Mentors’ comment: Federalism is crucial as it balances power between national and regional governments, fostering a diverse and inclusive governance structure. It allows regions to address local needs effectively while maintaining national unity. By promoting cooperation and accommodating diversity, federalism enhances democratic participation, prevents centralization of power, and ensures more equitable resource distribution, supporting overall stability and development.

    Let’s learn_ _

    Why in the news?

    On June 4, 2024, the BJP fell short of a Lok Sabha majority, relying on regional partners. This coalition governance could curb the BJP’s dominance and revitalize India’s federal structure, damaged over the past decade.

    Undermine the Federalism in last decade before the 2024 election 

    • Centralisation of Power: Under the current administration, there has been a significant shift towards centralising power at the expense of state autonomy, moving away from the principle of cooperative federalism.
    • Use of Investigative Agencies: Regulatory and investigative agencies like the Enforcement Directorate, Central Bureau of Investigation, and Income-Tax agencies have been used to clamp down on political opponents from regional parties, thereby undermining state authority and autonomy.
    • Imposition of Hindi: Efforts to impose Hindi on non-Hindi speaking southern states have been part of a broader strategy to homogenize the nation, disregarding the linguistic and cultural diversity of states.
    • Unilateral Decision-Making: Key decisions, such as imposing a nationwide lockdown during the COVID-19 pandemic, were made unilaterally by the central government without consulting the states, exemplifying a top-down approach.
    • Fiscal Manipulation: The financial autonomy of states has been undermined by the central government through mechanisms like levying cesses on various items, which are not shared with states, disrupting the balance of fiscal federalism.

    The concerns of the Southern States

    • Financial Disparity: Southern states recognize the necessity of correcting regional imbalances but are concerned about disproportionate financial allocations favoring less-performing northern states. For example, Uttar Pradesh received ₹25,069 crore in tax devolution, more than the combined total for all five southern states.
    • Potential Political Disenfranchisement: There is anxiety over the potential political dominance of northern states like Uttar Pradesh and Bihar, particularly concerning the upcoming delimitation exercise. These states, with their larger populations, could outweigh the southern states’ influence in the Lok Sabha.

    Measures to resolve the concerns of southern States

    • Need for Equitable Redistribution: Southern leaders emphasise the importance of equitable redistribution and representation, advocating for a balanced approach that does not financially persecute the high-performing southern states.
    • Coordination Among Southern Leaders: Southern chief ministers are likely to collaborate to address the threat of political disenfranchisement, recognising that their collective interests are at stake in maintaining a fair federal structure.

    Why Need to Revive the Inter-State Council?

    • Potential for Effective Deliberation: Although the Council has the potential to be a formidable forum for decision-making and dispute resolution, it has become ineffective under the control of the Ministry of Home Affairs.
    • Independent Arena for Coordination: Reviving the Council would provide an independent space for consultation, decision-making, and dispute resolution, ensuring better coordination between states and various governmental departments on issues affecting states.
    • Accommodating Diversity: In a diverse country like India, fostering a sense of common belonging while respecting the developmental differences among states is crucial. The Council can help in creating policies that are inclusive and considerate of these differences.
    • Preventing Fragmentation: Ensuring that all states feel that their common nationhood is beneficial helps in maintaining national unity. Without proper forums for dialogue, regional, religious, and linguistic tensions could escalate.
    • Addressing Inequitable Power Dynamics: The statement “We have more people, so we will have more money and power” threatens to disrupt the delicate balance of federalism. The Council can help address these power imbalances and promote equitable development across all states.

    Conclusion: To strengthen India’s federalism, revitalizing the Inter-State Council is crucial, ensuring it operates independently for effective consultation and decision-making. Equitable fiscal practices, respect for state autonomy, and promotion of cultural diversity will foster cooperative governance and prevent centralization, thereby balancing regional needs with national unity.

    Source: https://www.thehindu.com/opinion/lead/reimagining-indian-federalism/article68290374.ece#:~:text=This%20Modi%2Dfied%20brand%20of,on%20political%20opponents%20from%20regional

  • Unsolved issue of the Buddha Relics from Bavikonda

    Why in the News?

    • Ten years after the division of Telangana from united Andhra Pradesh, the distribution of antiquities, manuscripts, and cultural objects remains contentious.
      • The custody of objects like Buddha Relics from Bavikonda are part of this dispute.

    About Bavikonda Buddhist Complex

    • Bavikonda, a significant ancient Buddhist site dating from the 3rd century BC to the 3rd century AD, is located along the Eastern Coastline of Andhra Pradesh near Visakhapatnam on the way to Bheemunipatnam.
    • It is located an ancient trade route linking Andhradesa with North India via Kalinga, along with its proximity to ancient ports.
    • The discovery of Roman silver coins further supports this historical context.
    • The site also features Buddhapada slabs intricately carved with Ashtamangala symbols, found on the platforms surrounding the Mahachaitya.

    About Buddha Relics from Bavikonda

    • The relics were discovered in 1993 during archaeological excavations conducted by the Andhra Pradesh Department of Archaeology and Museums (DAM).
    • These discoveries have significantly contributed to our understanding of the spread of Buddhism in the region during the post-Ashoka period along the Krishna River basin.
    • Nature of Relics:
    • The site at Bavikonda yielded several earthen vessels containing gold objects and precious beads.
    • These relics are believed to include corporeal remains (related to skull) of the Buddha, along with silver and gold caskets.
    • These were found alongside an earthen urn or receptacle (Samudgaka) containing ashy deposits and burnt charcoal.

    Noted Buddhavanam Sites in Andhra Region

    • Thotlakonda: Located near Visakhapatnam, Thotlakonda is another prominent Buddhist site dating back to the 3rd century BC to the 3rd century AD. It consists of monastic complexes, stupas, chaityas, viharas, and a university. Excavations have revealed relics and artifacts indicating it was a major center for Buddhist learning and trade.
    • Salihundam: Situated near Srikakulam, Salihundam dates from the 2nd century BC to the 12th century AD. It features remnants of stupas, votive stupas, monastic complexes, and sculptures. The site is noted for its architectural and sculptural heritage, reflecting a blend of Buddhist and Hindu influences over centuries.
    • Pavurallakonda: Close to Bheemunipatnam, Pavurallakonda is a Buddhist hilltop monastery dating back to the 3rd century BC to the 2nd century AD. It includes viharas, chaityas, and relic caskets. The site offers panoramic views of the coastline, adding to its spiritual ambiance.
    • Ghantasala: Located near Krishna district, Ghantasala served as an ancient Buddhist site from the 2nd century BC to the 2nd century AD. It contains stupas, viharas, and relics that indicate its significance as a trading hub and center for Buddhist teachings.
    • Nagarjunakonda: Situated in the Guntur district, Nagarjunakonda is an island on the Krishna River that flourished from the 3rd century BC to the 3rd century AD. It boasts numerous Buddhist monasteries, stupas, chaityas, and sculptures. The site is renowned for its architectural grandeur and extensive archaeological findings.

     

    PYQ:

    [2015] Which of the following kingdoms were associated with the life of Buddha?

    1. Avanti
    2. Gandhara
    3. Kosala
    4. Magadha

    Select the correct answer using the codes given below:

    (a) 1, 2 and 3

    (b) 2 and 3 only

    (c) 1, 3 and 4

    (d) 3 and 4 only

  • CIC upholds decision of Rashtrapati Bhavan on RTI query

    Why in the News? 

    • The Central Information Commission (CIC) upheld Rashtrapati Bhavan’s response to an RTI query regarding the number of times former President Kovind returned decisions by the Prime Minister/Union Council of Ministers for reconsideration.
      • The President’s Secretariat stated that no information was available on record regarding such returns.

    Back2Basics: Right to Information (RTI)

    • The RTI Act of 2005 grants Indian citizens the right to access government-held information, with exceptions.
    • Its goal is to enhance transparency and accountability in public authorities.
    • This Act replaced the earlier Freedom of Information Act of 2002.
    • RTI aligns with Freedom of Speech and Expression (Article 19) in India’s Constitution.

    About Central Information Commission (CIC)

    Details
    Establishment Set up under the Section 12 of the Right to Information Act, 2005.
    Function
    • Oversees implementation of RTI Act in Central Government and Union Territories.
    • Resolves complaints and decides appeals related to the Act.
    Headquarters New Delhi
    Composition
    • Chief Information Commissioner (CIC)
    • Up to 10 Information Commissioners (IC), (appointed by President on recommendation of PM-led Committee consisting Leader of Opposition and Cabinet Ministers.)
    Qualifications CIC and IC must be persons of eminence in public life with wide knowledge and experience in: Law, Science and Technology, Social Service, Management, Journalism, Mass Media, Administration, and Governance.

    NON-ELIGIBLITY: Members of Parliament or Legislature of any State or Union Territory, hold any office of profit, be connected with any political party, or carry on any business or profession.
    Tenure
    • CIC and IC hold office for such term as prescribed by Central Government or until they attain age of 65 years, whichever is earlier.
    • NO Reappointment.
    • IC can be appointed as Chief Information Commissioner, but total tenure including term as IC should not exceed 5 years.
    Removal
    • President can remove CIC or IC on grounds like insolvency, conviction for moral turpitude, engaging in another office of profit, etc.
    • Removal for misbehaviour requires Supreme Court enquiry and recommendation.
    Salary & Conditions Salary, allowances, and service conditions determined by Central Government, cannot be varied to their disadvantage during service (After RTI Amendment Act,2019)
    How RTI amendment, 2019 has changed CIC?
    • Before the 2019 amendment to the RTI Act, ICs at the CIC held a 5-year fixed term and were considered equal in status to the Chief Election Commissioner and Supreme Court judges.
    • The 2019 amendments granted the Centre the power to alter these terms at its discretion.
    Functions
    • Receives and inquires into complaints related to RTI Act violations, including non-appointment of Public Information Officer, refusal or delay in information, unreasonable fees, incomplete or false information.
    • Submits annual report on Act’s implementation to Central Government, presented to Parliament.
    Powers
    • Can suo-moto order inquiries, summon persons, enforce oaths, access and inspect documents, receive evidence on affidavit, requisition public records, summon witnesses, and enforce compliance of decisions.
    • Can direct public authorities on information access, officer appointments, record management, training, and impose penalties or compensation for non-compliance.

     

    PYQ:

    [2018] The Right to Information Act is not all about citizens’ empowerment alone, it essentially redefines the concept of accountability. Discuss. (150 words)

    [2019] There is a view that the Officials Secrets Act is an obstacle to the implementation of RTI Act. Do you agree with the view? Discuss.

    [2020] “Recent amendments to the Right to Information Act will have a profound impact on the autonomy and independence of the Information Commission”. Discuss.

  • What are the standards for awarding death sentence, the President’s ‘Mercy’ power?

    Why in the News?

    • The President of India has rejected a Mercy Petition to pardon a Pakistani terrorist.
      • The accused was one among the Lashkar-e-Tayyeba terrorists who attacked the Red Fort in 2000, killing two soldiers and a civilian guard.

    What is the process of Mercy Petition?

    • Step 1: The convict facing a death sentence can file a mercy petition within 7 days of the Supreme Court dismissing their appeal.
    • Step 2: The convict or their relative submits a written petition to the President or governor, citing grounds such as sole breadwinner, physical/mental health, perceived harshness of the law, or judicial errors.
    • Step 3: The petition is forwarded to the Ministry of Home Affairs for assessment and recommendations, including consultation with the relevant State government.
    • Step 4: Based on Home Ministry recommendations and the Council of Ministers’ advice, the President can accept or reject the mercy plea without a specified time limit.
    • Step 5: While governors cannot pardon death sentences, they can commute, remit, or reprieve sentences under their state’s executive powers for offences against state laws.

    Judiciary on Mercy Petitions:

      • Bachan Singh v. State of Punjab (1980): The Supreme Court, upheld the death penalty but set the stringent criteria. It emphasized that the death penalty should be awarded only in the “rarest of rare” cases when all mitigating circumstances are considered.
      • In Maru Ram v. Union of India (1981), the Supreme Court ruled that the power to grant pardons under Article 72 of the Constitution must be exercised based on the advice of the Council of Ministers.
      • In Kehar Singh vs Union of India (1989) case, the court asserted that presidential pardon is an act of grace, not a right that can be claimed. The exercise of this power is purely administrative and not subject to judicial review.
      • In the Dhananjoy Chatterjee vs State of West Bengal (1994) case, the Supreme Court clarified that the pardoning powers under Articles 72 and 161 of the Constitution can only be exercised by the Central and State Governments, respectively, and not autonomously by the President or Governor.
      • In Epuru Sudhakar & Anr. v. Government of Andhra Pradesh (2006), the Supreme Court ruled that the clemency powers of the President and Governor under Article 72 and Article 161 are subject to judicial review.
      • In Shatrugan Chauhan v. State of U.P. (2014), the appex court has also commuted the death sentence in cases of inordinate delay in deciding mercy petitions. The court commuted the sentence of one Gurmeet Singh after he spent 27 years in custody (and 21 years on death row). 
      • In Mohd. Afzal Guru vs State of Delhi (2014) case, the court-mandated a minimum 14-day gap between the rejection of a mercy petition and the execution of a death penalty, ensuring adequate time for legal recourse.
      • Report of the 262nd Law Commission (2015): Recommended abolishing the death penalty for all crimes except terrorism-related offenses and waging war.
      • In April 2023, the Supreme Court upheld the Mumbai High Court’s decision to commute the death sentence of a woman and her sister due to significant delays in deciding their mercy petitions.

    About Presidents’ Pardoning Powers under Article 72

    • According to Article 72, the President of India has the power to grant pardons, reprieves, respites, or remissions of punishment or to suspend, remit, or commute the sentence of any person convicted of any offense: In cases where the punishment or sentence is by a Court Martial;
      • According to Article 161, the Governor of a State has the power to grant pardons, reprieves, respites, or remissions of punishment or to suspend, remit, or commute the sentence of any person convicted of any offence against any law relating to matters under the executive power of the State.
    • In the recent Supreme Court Ruling of 2021, the apex court held that the Governor of a state can pardon prisoners, including those on death row, even before they have served a minimum of 14 years of their prison sentence.

    Did you know?

    1. Pardon means completely absolving the person of the crime and letting him go free. The pardoned criminal will be like a normal citizen.
    2. Commutation means changing the type of punishment given to the guilty into a less harsh one, for example, a death penalty commuted to a life sentence.
    3. Reprieve means a delay allowed in the execution of a sentence, usually a death sentence, for a guilty person to allow him some time to apply for a Presidential Pardon or some other legal remedy to prove his innocence or successful rehabilitation.
    4. Respite means reducing the quantum or degree of the punishment to a criminal in view of some special circumstances, like pregnancy, mental condition etc.
    5. Remission means changing the time period of the punishment without changing its nature, for example reducing twenty years of rigorous imprisonment to ten years.

    Cases as specified by Art. 72

    In all cases where the punishment or sentence:

    1. is by a court-martial.
    2. is for an offence against any law relating to a matter to which the executive power of the Union extends.
    3. is a sentence of death.

    Nature of the Pardoning Power

    • The pardoning power of the president is not absolute.
    • At a procedural level, the apex court in Epuru Sudhakar & Anr. v. Government of Andhra Pradesh (2006) has held that the President’s power must be exercised based on the aid and advice of the Council of Ministers and can be challenged on multiple grounds including that relevant material was not considered, the power was exercised based on political considerations, or there was no application of mind.
    • This has not been discussed by the Constitution but is the practical truth. Further, the constitution does not provide for any mechanism to question the legality of decisions of presidents or governors exercising mercy jurisdiction.

     

    PYQ:

    [2014] Instances of President’s delay in commuting death sentences have come under public debate as denial of justice. Should there be a time specified for the President to accept/reject such petitions? Analyse.

  • In news: Nagarhole Tiger Reserve

    Why in the News?

    • Ashwatthama, a 38-year-old elephant, died of electrocution near Karnataka’s Nagarahole Tiger Reserve.
      • The High Court of Karnataka suo motu initiated a PIL petition to inquire about this incident attributed to a lack of care and diligence by concerned authorities.

    Nagarahole Tiger Reserve

    • Located in the Western Ghats in Karnataka; Spans over 643 square kilometers.
    • Declared a wildlife sanctuary in 1955 and a tiger reserve in 1999.
    • Part of the Nilgiri Biosphere Reserve is recognised as an Important Bird Area (IBA) and a Project Tiger, Project Elephant reserve.
    • Managed by the Karnataka Forest Department with efforts focused on conservation, ecotourism, and community engagement.
    • The reserve is crisscrossed by several rivers such as the Kabini River, Lakshmana Tirtha River, and Moyar River.
      • Flora and Fauna: Known for its diverse ecosystem, including tropical and moist deciduous forests, home to a variety of wildlife such as tigers, leopards, elephants, gaur, and several species of deer and birds.

    Protective Measures: Project Elephant

    • It was launched in the year 1992 as a Centrally Sponsored Scheme with the following objectives:
      • To protect elephants, their habitat & corridors
      • To address issues of man-animal conflict
      • The welfare of captive elephants
    • It covers 23 states across India.
    • The Ministry of Environment, Forest and Climate Change provides financial and technical support to major elephant range states in the country through the project.
    • It contributed to the increase in the wild elephant population from around 25,000 in 1992 to about 30,000 in 2021.

    Status of Elephant Conservation in India

    Details
    Population Estimate
    • India hosts the largest population of wild Asian Elephants (Elephas maximus), with around 29,964 individuals,
    • Approximately 60% of the global population (2017 census).
    Leading States Karnataka holds the highest number of elephants, followed by Assam and Kerala.
    Conservation Status
    • IUCN Red List:  Endangered.
    • CMS: Appendix I.
    • Wildlife (Protection) Act, 1972: Listed under Schedule I,
    • CITES: Appendix I.

     

    PYQ:

    [2020] With reference to Indian elephants, consider the following statements:

    1. The leader of an elephant group is a female.
    2. The maximum gestation period can be 22 months.
    3. An elephant can normally go on calving till the age of 40 years only.
    4. Among the States in India, the highest elephant population is in Kerala.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 2 and 4 only

    (c) 3 only

    (d) 1, 3 and 4 only

  • India’s growth story has a ‘beneficial ownership’ hurdle

    Why in the News?

    To achieve a $5 trillion economy by 2025-26, India must eliminate obstacles hindering Foreign Investments and facilitate smoother processes for companies and investors.

    About the Indian Foreign Exchange Management (Non-debt Instruments) Rules

    • FEMA outlines the formalities and procedures for the dealings of all foreign exchange transactions in India. These foreign exchange transactions have been classified into two categories — Capital Account Transactions and Current Account Transactions.
    • The Indian Foreign Exchange Management (Non-debt Instruments) Rules, 2019, commonly referred to as FEMA NDI, regulates foreign investments in Indian companies. These rules are critical for overseeing the flow of foreign capital into the country, ensuring that investments align with national interests and do not pose security risks.
    • The amendment to the Indian Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (“FEMA NDI”) was again made through press note number 3 in the year 2020.
    • In exercise of the powers conferred by section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and consequent to the Foreign Exchange Management (Non-Debt Instrument) Rules, 2019, the Reserve Bank of India makes the following regulations relating to mode of payment and reporting requirements for investment in India by a person resident outside India.
      • ‘Act’ means the Foreign Exchange Management Act, 1999 (42 of 1999);
      • ‘Rules’ means Foreign Exchange Management (Non-Debt Instrument) Rules, 2019;
    • On April 16, 2024, the Ministry of Finance, through the Department of Economic Affairs, notified the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024 (the “Amendment“), prescribing new entry routes for foreign investment in activities under the space sector.

    Introduction of Press Note 3 (PN3) Requirement:

    • What does it mean?: This amendment requires prior government approval for any investments from entities or individuals in countries that share a land border with India. This rule applies if the investment comes directly from these countries or if the beneficial owner (the real person who ultimately owns or controls the investment) is a citizen or resident of these countries.
    • The purpose: Implemented during the COVID-19 pandemic, the rule aims to prevent opportunistic takeovers of struggling Indian companies by neighboring countries

    Challenges with the Recent Amendment

    • Undefined ‘Beneficial Owner’: The term ‘beneficial owner’ isn’t clearly defined in the PN3 Requirement, leading to confusion. Different laws define the term differently, making it hard for companies to know which standards to follow.
    • Regulatory Uncertainty: Since the latter half of 2023, the Reserve Bank of India (RBI) has adopted a stricter interpretation of these rules. This shift has caused anxiety among investors and companies, as practices previously deemed acceptable are now being scrutinized.
    • Regulatory Burden: Companies now face significant delays and a high rate of rejection when seeking approval for investments. According to some officials, proposals worth ₹50,000 crore have been stalled or rejected in the past three years, with 201 applications being turned down.
    • Severe Fines: Non-compliance with the PN3 Requirement can result in fines up to three times the amount of the investment. For many startups, this could mean financial ruin, as the fines could exceed their revenue or assets.
    • Legal Battles: Violations could lead to lengthy and costly legal disputes, further burdening the already slow judicial system in India.

    What can be the better solution? (Way forward) 

    • Ownership Thresholds: Define beneficial ownership with clear thresholds, such as 10% to 25% ownership stakes. This would help companies understand whether they need to seek approval.
    • Control-Conferring Rights: Specify which rights indicate control, such as the ability to influence board decisions or veto significant operational changes. Exclude rights that merely protect investor interests, such as veto powers over mergers.
    • Investor Representations: Allow Indian companies to require foreign investors to provide assurances about their compliance with the PN3 Requirement, backed by indemnities.It would provide a safety net for Indian companies.
    • Time-Bound Reviews: Introduce a system where companies can seek timely advice from regulatory authorities on whether specific clauses in their investment agreements confer control. This would be similar to mechanisms in competition law, offering clarity and reducing the risk of penalties for inadvertent non-compliance.

    Mains PYQ:

    Q Foreign Direct Investment (FDI) in the defence sector is now set to be liberalized: What influence this is expected to have on Indian defence and economy in the short and long run? (UPSC IAS/2014)

  • No outcome in Bonn: why money is key to climate action

    Why in the news?

    The Bonn climate meeting failed to define a new climate finance goal, crucial for finalizing a sum exceeding $100 billion annually by the end of 2024.

    Key Highlights of the Climate Meeting in Bonn, Germany

    • Failure to Define New Climate Finance Goal: The recent climate meeting in Bonn did not make significant progress in setting a new climate finance goal. This new goal is supposed to replace the existing $100 billion per year target, which needs to be finalized by the end of 2024.
    • Outcome: The meeting only produced a lengthy 35-page “input paper” summarizing various countries’ demands and concerns, without providing any concrete numbers or agreements. This paper is expected to be developed into a formal negotiating draft for COP29 in Baku, Azerbaijan.

    Search for a New NCQG (New Collective Quantified Goal)

    • Importance of Climate Finance: Money is essential for climate action, including mitigation, adaptation, and other tasks like collecting and reporting climate data, which require substantial funds, especially in developing countries.
    • Existing Commitment: Developed countries had promised to mobilize $100 billion annually from 2020 to help developing countries fight climate change. This target is now being re-evaluated to increase the amount post-2025.

    Previous Assessment

    • Current Needs: It is widely recognized that developing countries now require trillions of dollars annually. A UNFCCC assessment indicated that these countries need about $6 trillion by 2030 for climate actions, with adaptation needs alone requiring $215 billion to $387 billion annually.
    • Energy Transition: The global shift to clean energy requires investments of about $4.3 trillion per year until 2030 and around $5 trillion annually thereafter until 2050 to achieve global net-zero emissions.
    • Developing Countries’ Demands: India has proposed that developed countries should provide at least $1 trillion annually after 2025, while Arab and African countries have suggested figures of $1.1 trillion and $1.3 trillion, respectively.

    Debate Over Contribution

    • Original Responsibility: According to the UNFCCC and Paris Agreement, only the 25 countries listed in Annexure 2, along with the European Economic Community, are responsible for providing climate finance to developing countries.
    • Shifting Responsibility: These countries argue that other nations, such as China, Gulf countries, and South Korea, are now economically capable and should also contribute. However, countries like China have stated they do not intend to take on additional responsibilities beyond their current efforts.
    • Developed Countries’ Stance: While acknowledging that the new target must be higher than the existing $100 billion per year, developed countries have not made any specific offers publicly.

    Way forward:

    • Clear Definition of Climate Finance: Establish a universally accepted definition of climate finance to prevent discrepancies in reporting and ensure transparency.
    • Precise Targets and Timelines: Set clear, incremental targets leading up to the final goal, with defined timelines for achieving these targets. This will provide a roadmap for both developed and developing countries.

    Mains PYQ:

    Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference?  (UPSC IAS/2021)

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