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  • Automatic Number Plate Reader (ANPR) cameras for toll collection

    In light of congestion at toll plazas, the Road Transport and Highways Ministry is now moving ahead with a plan to replace toll plazas with cameras that could read number plates, also known as Automatic Number Plate Reader (ANPR) cameras.

    ANPR cameras

    • The plan is to remove toll plazas on national highways and instead rely on ANPR cameras, which will read vehicle number plates and automatically deduct toll from the linked bank accounts of vehicle owners.
    • The model is simple: Entry and exit of toll roads will have cameras capable of reading number plates, and toll will be deducted based on these cameras.

    Can all number plates be read by the cameras?

    • Not all number plates in India can be read, and only those that have come after 2019 will be registered by the cameras.
    • The government, in 2019, had come up with a rule mandating passenger vehicles to have company-fitted number plates, and only these number plates can be read by cameras.
    • The government plans to come up with a scheme to replace older number plates.
    • A pilot of this scheme is underway and legal amendments to facilitate this transition are also being moved to penalise vehicle owners who skip toll plazas and do not pay.

    Current model for toll collection: FASTags

    • Currently, about 97 per cent of the total toll collection of nearly Rs 40,000 crore happens though FASTags — the remaining 3 per cent pay higher than normal toll rates for not using FASTags.
    • With FASTags, it takes about 47 seconds per vehicle to cross a toll plaza.
    • There’s a marked throughput enhancement – more than 260 vehicles can be processed per hour via electronic toll collection lane as compared to 112 vehicles per hour via manual toll collection lane, according to government data.
    • While FASTags have eased traffic at toll plazas across the country, congestion is still reported as there are toll gates that need to be crossed after authentication.

    Why such move?

    • Congestion at toll plazas on national highways continues to impact commuters despite 97 per cent of tolling happening through FASTags.
    • Apart from ANPR helping to ease congestion, the government is also looking at GPS technology as one of the options for toll collection.

    Are there issues with ANPR?

    • The success of ANPR cameras will depend on creating an ecosystem that is in sync with the requirements of the camera.
    • The biggest problem being faced during the trials is when things are written on number plates, beyond the nine digit registration number, such as ‘Govt of India/Delhi’ etc.
    • Another problem that ANPR cameras face is in reading number plates on trucks, as most of the time they are hidden or soiled etc.
    • A pilot on a key expressway has found that about 10 per cent of vehicles with such number plates are being missed by the ANPR cameras.

    Back2Basics: What is ‘FASTag’?

    • As per Central Motor Vehicles Rules, 1989, since 1st December 2017, the FASTag had been made mandatory for all registered new four-wheelers and is being supplied by the Vehicle Manufacturer or their dealers.
    • It has been mandated that the renewal of fitness certificate will be done only after the fitment of FASTag.
    • For National Permit Vehicles, the fitment of FASTag was mandated since 1st October 2019.
    • FASTags are stickers that are affixed to the windscreen of vehicles and use Radio Frequency Identification (RFID) technology to enable digital, contactless payment of tolls without having to stop at toll gates.
    • The tags are linked to bank accounts and other payment methods.
    • As a car crosses a toll plaza, the amount is automatically deducted, and a notification is sent to the registered mobile phone number.

    How does it work?

    • The device employs Radio Frequency Identification (RFID) technology for payments directly from the prepaid or savings account linked to it.
    • It is affixed on the windscreen, so the vehicle can drive through plazas without stopping.
    • RFID technology is similar to that used in transport access-control systems, like Metro smart card.
    • If the tag is linked to a prepaid account like a wallet or a debit/credit card, then owners need to recharge/top up the tag.
    • If it is linked to a savings account, then money will get deducted automatically after the balance goes below a pre-defined threshold.
    • Once a vehicle crosses the toll, the owner will get an SMS alert on the deduction. In that, it is like a prepaid e-wallet.

     

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  • What is Floor Test?

    Bihar Chief Minister has won the floor test in the Assembly.

    What is a floor test?

    • A floor test is a measure to check whether the executive is enjoying the confidence of the legislature.
    • It is a constitutional mechanism under which a Chief Minister appointed by the Governor can be asked to prove majority on the floor of the Legislative Assembly of the state.

    How is it conducted?

    • As per the Constitution, the Chief Minister is appointed by the Governor of the state.
    • When a single party secures the majority of the seats in the house, the Governor appoints the leader of the party as the Chief Minister.
    • In case the majority is questioned, the leader of the party which claims majority has to move a vote of confidence and prove majority among those present and voting.
    • The Chief Minister has to resign if they fail to prove their majority in the house.
    • This happens both in the parliament and the state legislative assemblies.
    • In situations when there are differences within a coalition government, the Governor can ask the Chief Minister to prove majority in the house.

    Can a floor test be postponed?

    • The Supreme Court recently had given some respite to some rebel leaders in Maharashtra to respond to the disqualification notice issued by the Speaker.
    • Citing this as the reason, the original party leaders and loyalists have stated that it is ‘unlawful’ to initiate a floor test when the disqualification decision of the rebel leaders is pending.
    • However, the previous judgments of the Supreme Court had ruled that the floor test needs not to be deferred even if the decision to disqualify the members is pending.
    • In the 2020 Shivraj Singh Chouhan v/s Speaker case, the court had clarified the same.
    • Additionally, the top court had allowed the rebel leaders to skip the floor test during the political crisis in Karnataka in 2019.

    What is composite floor test?

    • There is another test, Composite Floor Test, which is conducted only when more than one person stakes claim to form the government.
    • When the majority is not clear, the governor might call for a special session to see who has the majority.
    • The majority is counted based on those present and voting. This can also be done through a voice vote where the member can respond orally or through division voting.
    • Some legislators may be absent or choose not to vote.
    • In division vote, voting can be done through electronic gadgets, ballots or slips.
    • The person who has the majority will form the government. In case of tie, the speaker can also cast his vote.

    Governors’ discretion

    • When no party gets a clear majority, the governor can use his discretion in the selection of chief ministerial candidate to prove the majority as soon as possible.

    Issues with the floor test

    • Sometimes ruling party MLAs are lured with rewards, political or otherwise.
    • Thus, the “floor test” becomes constitutionally immoral and unjust.
    • This will amount to circumventing the Tenth Schedule through engineered defections through the judicial process.

    Back2Basics: No Confidence Motion

    • The process is explained under rule 198 of the Lok Sabha.
    • Though there is no mention of the term ‘No confidence motion’ or ‘floor test’ in the Constitution, Articles 75 and 164 do mention that the executive both at the Centre and state is collectively responsible to their respective legislatures.
    • Any member from the Opposition can move the no-confidence motion against the ruling government.
    • The motion has to receive the backing of at least 50 members before it is accepted and subsequently.
    • A date for the discussion of the motion is announced by the Speaker, which has to be within 10 days from the date of acceptance.

     

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  • Explained: The Competition (Amendment) Bill, 2022

    The long-awaited Bill to amend the Competition Act, 2002, was finally tabled in the Lok Sabha recently.

    What is the Indian Competition Act?

    • The Indian Competition Act was passed in 2002, but it came into effect only seven years later.
    • The Competition Commission primarily pursues three issues of anti-competitive practices in the market: anti-competitive agreements, abuse of dominance and combinations.
    • As the dynamics of the market changes rapidly due to technological advancements, AI, and the increasing importance of factors other than price, amendments became necessary to sustain and promote market competition.
    • Therefore, a review committee was established in 2019 which proposed several major amendments.

    Competition (Amendment) Bill, 2022: Key features

    (1) Regulation of combinations based on transaction value

    • The Act prohibits any person or enterprise from entering into a combination which may cause an appreciable adverse effect on competition.
    • Combinations imply mergers, acquisitions, or amalgamation of enterprises.
    • The prohibition applies to transactions where parties involved have: (i) cumulative assets of more than Rs 1,000 crore, or (ii) cumulative turnover of more than Rs 3,000 crore, subject to certain other conditions.
    • The Bill expands the definition of combinations to include transactions with a value above Rs 2,000 crore.

    (2)  Definition of control for classification of combination:

    • For classification of combinations, the Act defines control as control over the affairs or management by one or more enterprises over another enterprise or group.
    • The Bill modifies the definition of control as the ability to exercise material influence over the management, affairs, or strategic commercial decisions.

    (3) Time limit for approval of combinations

    • The Act specifies that any combination shall not come into effect until the CCI has passed an order or 210 days have passed from the day when an application for approval was filed, whichever is earlier.
    • The Bill reduces the time limit in the latter case to 150 days.

    (4) Anti-competitive agreements

    • Under the Act, anti-competitive agreements include any agreement related to production, supply, storage, or control of goods or services, which can cause an appreciable adverse effect on competition in India.
    • Any agreement between enterprises or persons, engaged in identical or similar businesses, will have such adverse effect on competition if it meets certain criteria.
    • These include: (i) directly or indirectly determining purchase or sale prices, (ii) controlling production, supply, markets, or provision of services, or (iii) directly or indirectly leading to collusive bidding.
    • The Bill adds that enterprises or persons not engaged in identical or similar businesses shall be presumed to be part of such agreements, if they actively participate in the furtherance of such agreements.

    (5) Settlement and Commitment in anti-competitive proceedings

    • Under the Act, CCI may initiate proceedings against enterprises on grounds of: (i) entering into anti-competitive agreements, or (ii) abuse of dominant position.
    • Abuse of dominant position includes: (i) discriminatory conditions in the purchase or sale of goods or services, (ii) restricting production of goods or services, or (iii) indulging in practices leading to the denial of market access.
    • The Bill permits CCI to close inquiry proceedings if the enterprise offers: (i) settlement (may involve payment), or (ii) commitments (may be structural or behavioral in nature).
    • The manner and implementation of settlement and commitment may be specified by CCI through regulations.

    (6) Relevant product market

    • The Act defines relevant product market as products and services which are considered substitutable by the consumer.
    • The Bill widens this to include the production or supply of products and services considered substitutable by the suppliers.

    (7) Decriminalization of certain offences

    • The Bill changes the nature of punishment for certain offences from imposition of fine to penalty.
    • These offences include failure to comply with orders of CCI and directions of Director General with regard to anti-competitive agreements and abuse of dominant position.

    Most notable amendment on: Merger and acquisition

    • Any acquisition, merger or amalgamation may constitute a combination.
    • Section 5 currently says parties indulging in merger, acquisition, or amalgamation need to notify the Commission of the combination only on the basis of ‘asset’ or ‘turnover’.
    • The new Bill proposes to add a ‘deal value’ threshold.
    • It will be mandatory to notify the Competition Commission of any transaction with a deal value in excess of ₹2,000 crore and if either of the parties has ‘substantial business operations in India’.

    Key note on gun-jumping

    • Parties should not go ahead with a combination prior to its approval.
    • If the combining parties close a notified transaction before the approval, or have consummated a reportable transaction without bringing it to the Commission’s knowledge, it is seen as gun-jumping.
    • The penalty for gun-jumping was a total of 1% of the asset or turnover.
    • This is now proposed to be 1% of the deal value.

    What next?

    • By implementing these amendments, the Competition Commission should be better equipped to handle certain aspects of the new-age market and transform its functioning to be more robust.
    • The proposed amendments are undoubtedly needed; however, these are heavily dependent on regulations that will be notified by the Commission later.
    • These regulations will influence the proposals.
    • Also, the government needs to recognize that market dynamics change constantly, so it is necessary to update laws regularly.

     

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  • Artforms in news: Yakshagana dance

    This newscard is an excerpt of the original article published in TH.

    What is Yakshagana?

    • Yakshagana is a traditional theater, developed in Dakshina Kannada, Udupi, Uttara Kannada, Shimoga and western parts of Chikmagalur districts, in the state of Karnataka and in Kasaragod district in Kerala.
    • It emerged in the Vijayanagara Empire and was performed by Jakkula Varu.
    • It combines dance, music, dialogue, costume, make-up, and stage techniques with a unique style and form.
    • Towards the south from Dakshina Kannada to Kasaragod of Tulu Nadu region, the form of Yakshagana is called as ‘Thenku thittu’ and towards north from Udupi up to Uttara Kannada it’s called as ‘Badaga Thittu‘.
    • It is sometimes simply called “Aata” or āṭa (meaning “the play”). Yakshagana is traditionally presented from dusk to dawn.
    • Its stories are drawn from Ramayana, Mahabharata, Bhagavata and other epics from both Hindu and Jain and other ancient Indic traditions.

    Try this question from CSP 2017:

    Q.With reference to Manipuri Sankirtana, consider the following statements:

    1. It is a song and dance performance.
    2. Cymbals are the only musical instruments used in the performance.
    3. It is performed to narrate the life and deeds of Lord Krishna.

    Which of the statements given above is/are correct?

    (a) 1, 2 and 3.

    (b) 1 and 3 only

    (c) 2 and 3 only

    (d) 1 only

     

    Post your answers here.

     

     

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  • 24th August 2022| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1        Population and associated issues

    GS-2        Poverty & Hunger

    GS-3        Major crops and cropping patterns

    GS-4        Emotional intelligence-concepts, and their utilities and application in administration and governance.

    Question 1)

     

    Q.1 Explain why child labour continues to persist in India, despite stringent measures taken by the government for its eradication. (10 Marks)

     

    Question 2)

    Q.2 While the Mid-Day Meal scheme was aimed at fulfilling the nutritional needs of students, it is far behind in achieving this objective. Discuss. Also, suggest remedial measures in this context. (10 Marks)

    Question 3)

    Q.3 Highlighting the factors that affect the cropping pattern in India, discuss the need for modifying it in the context of the emerging agro-ecological concerns. (15 Marks)

    Question 4)  

    Q.4 How will you apply emotional intelligence in administrative practices? (10 Marks)

     

    HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?

    1. Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.

    2. A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.

    3. You can write your answer on an A4 sheet and scan/click pictures of the same.

    4.  Upload the scanned answer in the comment section of the same question.

    5. Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.

    6. If you upload the answer on the same day like the answer of 11th  February is uploaded on 11th February then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis

    7. If you are writing answers late, for example, 11th February is uploaded on 13th February , then these answers will be evaluated as per the mentor’s schedule.

    8. We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Staff so that the mentor is notified about your answer.

    *In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. 

    1. For the philosophy of AWE and payment: 
    CLICK HERE To join Daily AWE

  • Benami Law can’t be applied retrospectively: SC

    The Supreme Court has declared as “unconstitutional and manifestly arbitrary” the amendments introduced to the Benami Property Transactions Act, 1988  in 2016, which apply retrospectively and can send a person to prison for three years even as it empowers the Centre to confiscate “any property” subject to a benami transaction.

    What is Benami Property?

    • Benami in Hindi means without name. So, a property bought by an individual not under his or her name is benami property.
    • It can include property held in the name of spouse or child for which the amount is paid out of known sources of income.
    • A joint property with brother, sister or other relatives for which the amount is paid out of known sources of income also falls under benami property.
    • The transaction involved in the same is called benami transaction.
    • The benami transactions include buying assets of any kind — movable, immovable, tangible, intangible, any right or interest, or legal documents.

    Why do people indulge in such transactions?

    • As a usual practice, to evade taxation, people invest their black money in buying benami property.
    • The real owner of these properties are hard to trace due to fake names and identities.

    What is the Benami Law?

    • The first act against benami properties was passed in 1988 as the Prohibition of Benami Property Transactions Act, 1988.
    • To block all loopholes, the government in July 2016 decided to amend the original act.
    • So after further amendment, Benami Transactions (Prohibition) Amendment Act, 2016 came into force on November 1, 2016.
    • The PBPT Act defines benami transactions, prohibits them and further provides that violation of the PBPT Act is punishable with imprisonment and fine.
    • The PBPT Act prohibits recovery of the property held benami from benamidar by the real owner.
    • Such, properties are liable for confiscation by the Government without payment of compensation.

    What amendment is this article talking about?

    • The 2016 law amended the original Benami Act of 1988, expanding it to 72 Sections from a mere nine.
    • Sections 3(2) and 5 were introduced through the Benami Transactions (Prohibition) Amendment Act, 2016.
    • A Bench, led by CJI N.V. Ramana, declared Sections 3(2) and 5 introduced through this amendment as unconstitutional.

    Which sections did the Supreme Court declare unconstitutional?

    (b) Section 3(2)

    • A/c to this, a person can be sent behind bars for a benami transaction entered into 28 years before the Section even came into existence.
    • CJI Ramana held that the provision violated Article 20(1) of the Constitution.
    • Article 20(1) mandates that no person should be convicted of an offence, which was not in force “at the time of the commission of the act charged as an offence”.

    (b) Section 5

    • It said that “any benami property shall be liable to be confiscated by the Central Government”.
    • The court held that this confiscation provision cannot be applied retrospectively.
    • The CJI dismissed the government’s version that forfeiture, acquisition and confiscation of property under the 2016 Act was not in the nature of prosecution and cannot be restricted under Article 20.

    What else did the apex court observe?

    • The court observed that the 2016 Act condemned not only transactions that were traditionally denominated as benami but also a “new class of fictitious and sham transactions”.
    • The court said the intention of Parliament was to condemn property acquired from ill-gotten wealth.
    • These proceedings cannot be equated as enforcing civil obligations, the CJI noted.

    Why curb benami transactions?

    • Inflationary implications: Rather than hoarding the black money in cash, the tax evader invest their accumulated illegal money in buying benami properties.
    • Loss of economic activity: The whole process affects the revenue generation of government hampering growth and development of the state.
    • Tax evasion: Since the percentage of tax payer in the country is a dismal low, the government fails to successfully implement its policies and schemes due to lack of resources.
    • Money laundering: Benami transactions also serves the illicit purpose of money laundering.

    Conclusion

    • A tough law against benami properties is the need of the hour to check corruption.
    • However, due process of law needs to be followed in true letter and spirit.

     

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  • Reinvigorating the Chabahar Port

     

    After months of what appeared to be a go-slow, the Union government has pushed up its interest in using Iran’s Chabahar port to connect to Afghanistan and Central Asia for trade, with the visit of the Union Minister of Ports, Shipping & Waterways to the port.

    Chabahar Port

    • In 2016, India signed a deal with Iran entailing $8 billion investment in Chabahar port and industries in Chabahar Special Economic Zone.
    • The port is being developed as a transit route to Afghanistan and Central Asia.
    • India has already built a 240-km road connecting Afghanistan with Iran.
    • All this were expected to bring cargo to Bandar Abbas port and Chabahar port, and free Kabul from its dependence on Pakistan to reach the outer world.
    • Completion of this project would give India access to Afghanistan and beyond to Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia and Europe via 7,200-km-long multi-modal North-South Transport Corridor (INSTC).

    Why is Chabahar back in the news?

    • The visit is a chance to strengthen ties and the maritime relationship between the two countries.
    • Due to pandemic, there were less number of visits from India to Iran and vice-versa and the pace of the project is also allegedly slower.
    • This visit will also highlight the importance of Chabahar as a gateway for Indian trade with Europe, Russia and CIS [Commonwealth of Independent States] countries.
    • India is keen in developing the Shahid Beheshti port as a “a transit hub” and link it to the International North South Trade Corridor (INSTC), that also connects to Russia and Europe.

    What is India’s strategic vision for Chabahar?

    When the first agreement for Chabahar was signed by then PM Atal Bihari Vajpayee in 2003, the plan had a three-fold objective:

    1. To build India’s first offshore port and to project Indian infrastructure prowess in the Gulf
    2. To circumvent trade through Pakistan, given the tense ties with India’s neighbour and build a long term, sustainable sea trade route and
    3. To find an alternative land route to Afghanistan, which India had rebuilt ties with after the defeat of the Taliban in 2001
    • Subsequently, PM Manmohan Singh’s government constructed the Zaranj -Delaram Highway in Afghanistan’s South.
    • It would help connect the trade route from the border of Iran to the main trade routes to Herat and Kabul, handing it over to the Karzai government in 2009.
    • In 2016, PM Modi travelled to Tehran and signed the agreement to develop Chabahar port, as well as the trilateral agreement for trade through Chabahar with Afghanistan’s President Ashraf Ghani.

    Commencement of operations

    • Since the India Ports Global Chabahar Free Zone (IPGCFZ) authority took over the operations of the port in 2018, it has handled 215 vessels, 16,000 TEUs (Twenty-foot Equivalent Units) and four million tons of bulk and general cargo.

    Why is it gaining importance?

    • In the last few years, a fourth strategic objective for the Chabahar route has appeared, with China’s Belt and Road Initiative making inroads in the region.
    • The government hopes to provide Central Asia with an alternate route to the China-Pakistan Economic Corridor (CPEC) through Iran for future trade.

    Why is the Chabahar dream taking so long to realise?

    • India’s quest for Chabahar has hit geopolitical road-block after road-block; the biggest issue has been over Iran’s relationship with western countries, especially the United States.
    • In years when western sanctions against Iran increased, the Chabahar project has been put on the back-burner.
    • However, the nuclear talks resulted in the Joint Comprehensive Plan of Action (JCPOA) in 2015 came into being, the Chabahar port has been easier to work on.
    • In 2018, the Trump administration put paid to India’s plans by walking out of the JCPOA and slapping new sanctions on dealing with Iran.
    • This led to the Modi government “zeroing out” all its oil imports from Iran, earlier a major supplier to India, causing a strain in ties.
    • India also snapped ties with Afghanistan after the Taliban takeover in August 2021, which put an end to the humanitarian aid of wheat and pulses that was being sent to Kabul via Chabahar.
    • When India restarted wheat aid this year, it negotiated with Pakistan to use the land route to Afghanistan instead.

     

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  • 23rd August 2022 | Prelims Daily with Previous Year Questions

    23rd August 2022 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1093]

    [WpProQuiz_toplist 1093]

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  • Iran drops some of its key demands for Nuclear Pact

    Iran has dropped some of its main demands on resurrecting a deal to rein in Tehran’s nuclear programme, including its insistence that international inspectors close some probes of its program, bringing the possibility of an Iran–US agreement closer.

    Which agreement is this article referring to?

    • It is an alternative name of the Joint Comprehensive Plan of Action (JCPOA).

    What demands of Iran are we talking about?

    • Iran had already largely relented on its demand that the US lift its designation of the Iran Revolutionary Guard Corps as a foreign terrorist organization (FTO) entity.
    • This designation was a more of symbolic move and insulting to Iranian authorities.
    • Iran also wanted a guarantee that the International Atomic Energy Agency (IAEA) would close investigations involving unexplained traces of uranium.
    • Iran wants guarantees that the IAEA would close all of them.

    What is JCPOA?

    • The Iran nuclear deal, formally known as the JCPOA is a landmark accord reached between Iran and several world powers, including the United States, in July 2015.
    • Under its terms, Iran agreed to dismantle much of its nuclear program and open its facilities to more extensive international inspections in exchange for billions of dollars’ worth of sanctions relief.

    Expected outcomes of the deal

    • Curb on the nuclear program: Proponents of the deal said that it would help prevent a revival of Iran’s nuclear weapons program.
    • Increasing regional engagement: It would thereby reduce the prospects for conflict between Iran and its regional rivals, including Israel and Saudi Arabia.

    Background of the JCPOA

    • Iran had previously agreed to forgo the development of nuclear weapons as a signatory to the Nuclear Non-proliferation Treaty, which has been in force since 1970.
    • However, after the overthrow of the Pahlavi dynasty in 1979, Iranian leaders secretly pursued this technology.
    • In 2007, U.S. intelligence analysts concluded that Iran halted its work on nuclear weapons in 2003 but continued to acquire nuclear technology and expertise.
    • Prior to the JCPOA, the P5+1 had been negotiating with Iran for years, offering its government various incentives to halt uranium enrichment.

    Issues with the deal

    (1) US withdrawal

    • The deal has been in jeopardy since President Donald Trump withdrew the US from it in 2018.
    • In retaliation for the US, Iran resumed some of its nuclear activities.

    (2) Iran’s insistence over sanctions removal

    • In 2021, President Joe Biden said the US will return to the deal if Iran comes back into compliance, though Iran’s leaders have insisted that Washington lift sanctions first.
    • Iran now has indicated that he will take a harder line than his predecessor in nuclear negotiations.

    Who are the participants?

    • The JCPOA, which went into effect in January 2016, imposes restrictions on Iran’s civilian nuclear enrichment program.
    • At the heart of negotiations with Iran were the five permanent members of the UN Security Council (China, France, Russia, the United Kingdom, and the United States) and Germany—collectively known as the P5+1.
    • The European Union also took part. Israel explicitly opposed the agreement, calling it too lenient.
    • Some Middle Eastern powers, such as Saudi Arabia, said they should have been consulted or included in the talks because they would be most affected by a nuclear-armed Iran.

    What did Iran agree to?

    • Nuclear restrictions: Iran agreed not to produce either the highly enriched uranium or the plutonium that could be used in a nuclear weapon.
    • Monitoring and verification:  Iran agreed to eventually implement a protocol that would allow inspectors from the International Atomic Energy Agency (IAEA), the United Nations’ nuclear watchdog.

    What did the other signatories agree to?

    • Sanctions relief: The EU, United Nations, and United States all committed to lifting their nuclear-related sanctions on Iran. However, many other U.S. sanctions on Iran, some dating back to the 1979 hostage crisis, remained in effect.
    • Weapons embargo: The parties agreed to lift an existing UN ban on Iran’s transfer of conventional weapons and ballistic missiles after five years if the IAEA certifies that Iran is only engaged in civilian nuclear activity.

    How has the deal affected Iran’s economy?

    • Prior to the JCPOA, Iran’s economy suffered years of recession, currency depreciation, and inflation, largely because of sanctions on its energy sector.
    • With the sanctions lifted, inflation slowed, exchange rates stabilized, and exports—especially of oil, agricultural goods, and luxury items­—skyrocketed as Iran regained trading partners, particularly in the EU.
    • After the JCPOA took effect, Iran began exporting more than 2.1 million barrels per day (approaching pre-2012 levels, when the oil sanctions were originally put in place).

    Try this question from CSP 2020:

    Q.In India, why are some nuclear reactors kept under “IAEA Safeguards” while others are not?

    (a) Some use Uranium and others use thorium.

    (b) Some use imported uranium and others use domestic supplies.

    (c) Some are operated by foreign enterprises and others are operated by domestic enterprises.

    (d) Some are State- owned and others are privately-owned.

     

    Post your answers here.

    Back2Basics: International Atomic Energy Agency (IAEA)

    • IAEA is an international organization that seeks to promote the peaceful use of nuclear energy and to inhibit its use for any military purpose, including nuclear weapons.
    • As the preeminent nuclear watchdog under the UN, the IAEA is entrusted with the task of upholding the principles of the Nuclear Non-Proliferation Treaty of 1970.
    • It was established as an autonomous organization on July 29, 1957, at the height of the Cold War between the U.S. and the Soviet Union.
    • Though established independently of the UN through its own international treaty, the agency reports to both the UN General Assembly and the UNSC.

    What are its safeguards?

    • Safeguards are activities by which the IAEA can verify that a State is living up to its international commitments not to use nuclear programs for nuclear weapons purposes.
    • Safeguards are based on assessments of the correctness and completeness of a State’s declared nuclear material and nuclear-related activities.
    • Verification measures include on-site inspections, visits, and ongoing monitoring and evaluation.

    Basically, two sets of measures are carried out in accordance with the type of safeguards agreements in force with a State.

    1. One set relates to verifying State reports of declared nuclear material and activities.
    2. Another set enables the IAEA not only to verify the non-diversion of declared nuclear material but also to provide assurances as to the absence of undeclared nuclear material and activities in a State.

     

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  • With eye on defaulters, Centre tweaks Overseas Investment Rules

    The Finance Ministry has released the Rules for Foreign Exchange Management (Overseas Investment Rules), 2022 subsuming extant regulations for Overseas Investments and Acquisition and Transfer of Immovable Property outside India Regulations, 2015.

    What are the news Overseas Investment Rules?

    • With an eye on wilful defaulters, the new rules stipulate that:
    • Any Indian resident will have to seek an no objection certificate before making any overseas financial commitment:
    1. Who has an account appearing as a non-performing asset
    2. Or is classified as a wilful defaulter by any bank
    3. Or is under investigation by a financial service regulator or by investigative agencies in India

    What are the tweaks in overseas investment norms?

    • Any resident in India acquiring equity capital in a foreign entity or overseas direct investment (ODI), will have to submit an Annual Performance Report (APR) for each foreign entity, every year by December 31.
    • No such reporting shall be required where a person resident in India is holding less than 10% of the equity capital without control in the foreign entity.
    • There is no other financial commitment other than equity capital or a foreign entity is under liquidation.

    Ceiling on investment

    • Any resident individual can make ODI by way of investment in equity capital or overseas portfolio investment (OPI) subject to the overall ceiling under the Liberalised Remittance Scheme (LRS) of the Reserve Bank.
    • Currently, the LRS permits $2,50,000 outward investment by an individual in a year.
    • These norms make it easier for domestic corporates to invest abroad.

    What are the prohibitions?

    • Any Indian resident, who has been classified as a wilful defaulter or is under investigation by the CBI, the ED or the Serious Frauds Investigation Office (SFIO), will have to obtain a no-objection certificate (NOC).
    • NOC can be obtained from his or her bank, regulatory body or investigative agency before making any overseas “financial commitment” or disinvestment of overseas assets.
    • The rules also provide that if lenders, the concerned regulatory body or investigative agency fail to furnish the NOC within 60 days of receiving an application, it may be presumed that they have no objection to the proposed transaction.
    • Additionally, the new rules also prohibit Indian residents from making investments into foreign entities that are engaged in real estate activity, gambling in any form, and dealing with financial products linked to the Indian rupee without the specific approval of the RBI.

     

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