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  • Classifying Merit and Non merit Freebies

    FreebieContext

    • The debate that began with an RBI 2022 report on state finances followed by Prime Minister Narendra Modi’s comment on revdi culture aka freebies, has garnered substantial attention so much so that the Supreme Court is hearing on this issue. Freebies have now assumed more importance than ever.

    What are freebies?

    • Freebies could be defined as non-merit subsidies. The term Freebies is not new; rather it is a prevalent culture in Indian politics (in the name of socialism).
    • The political parties are always trying to outdo each other in luring the Indian voters with freebies.

    What are Subsidies?

    • Subsidies are money transfers (implicit or explicit) by the government in an attempt to drive prices artificially below market prices.
    • As a National Institute of Public Finance and Policy (NIPFP) study by Sudipto Mundle and Satadru Sirkar puts it, budget subsidies, in particular, are defined as the unrecovered cost of economic and social services.
    • However, all subsidies cannot be easily classified into merit or non-merit.

    FreebieWhat are the objectives behind providing freebies?

    • Welfare state: It could be said that providing freebies empowers the state to, first, deliver welfare as a welfare state should, by providing subsidised merit goods like health and education;
    • Combating poverty: To help households combat poverty (especially in economically stressed times characterised by fewer job opportunities, lower incomes, high inflation, etc.) by providing subsidised public goods like food, electricity, etc.
    • Populist spending: To appeal to the electorate through outright populist spending.

    Question of classification between a merit and a non-merit freebies?

    • Blur Boundary: The boundaries between the aforementioned objectives begin to blur when it comes to classifying one form of freebie as a merit or a non-merit subsidy.
    • Few examples: Are corporate tax cuts non-merit subsidies or a measure to boost investment? 2. Is making bus rides free for women in the national capital a non-merit subsidy or a way to boost women’s mobility and labour-force participation? 3. Are free laptops to students in Tamil Nadu not a way to bridge the digital divide in education?
    • Varying definition: The existing arguments develop an understanding that freebies cannot be defined in a finite context, and that the definition varies across space and economic conditions.

    FreebieHow freebies impact revenue of the state?

    • Adverse impact on revenues: Regardless of which one gets classified as good or bad, freebies are simply expenditures or foregone revenues. Any freebie-induced debt burden could have an adverse effect on the state finances if, one, it hasn’t been properly accounted for through transparent budgeting procedures (including off-budget borrowings in debt calculations)
    • Increase in Fiscal deficit: Either way, they lead to an increase in fiscal deficit whose financing could necessitate taking on debt. It threatens fiscal sustainability, i e, it limits the state’s ability to service its debt-related commitments without making an unrealistic fiscal adjustment.
    • Lack of data leading to leakages: The targeting of beneficiaries to ease the burden on the exchequer is one way to check these expenditures but lack of data has forced a situation wherein leakages and duplication of beneficiaries is commonplace.
    • Jeopardises long-term growth and development: In the absence of adequate avenues of revenue mobilisation, any fiscal adjustment achieved by contracting critical expenditures on the social sector and capital formation further jeopardises long-term growth and development. The emanating risk of fiscal sustainability means a “revdi” today would take a toll on tomorrow’s generation.

    What could be the solution?

    • Setting up an independent fiscal council: Setting up an independent fiscal council that has been recommended by the FRBM Review Committee (2017), and recently constituted Finance Commissions too, including the 15th Finance Commission.
    • Providing information and advisory: FRBM report says, the council will serve both an ex-ante role providing independent forecasts on key macro variables like real and nominal GDP growth, tax buoyancy, commodity prices as well as an ex-post monitoring role, and also serve as the institution to advise on triggering the escape clause and also specify a path of return.
    • Monitoring finance: Such a council should work for the union as well as the states. Monitoring of finances and fiscal rules could also help ensure that states comply with a medium-term fiscal policy framework, which has been long argued for by economists.

    FreebieConclusion

    • Freebies cannot be defined easily, and constitutionally, any state government should be empowered to spend the way it wants, provided the fiscal policy is sustainable. The message from the freebies debate is to make informed economic decisions whilst attending to key development objectives.

    Mains Question

    Q. There is nothing wrong in having social security programme that aims to lift the poor get out of poverty and empower the vulnerable sections of the society. In this context, where do you see the goal of sustainable economic development? Comment.

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  • Stubble burning in Punjab at 3-year low

    stubble

    Though early days, the number of crop fires reported out of Punjab are at a three-year low, suggest data from the Indian Agricultural Research Institute (IARI) that tracks such fires via satellite.

    What is Stubble Burning?

    • Stubble (parali) burning is a method of removing paddy crop residues from the field to sow wheat from the last week of September to November.
    • It is usually required in areas that use the combined harvesting method which leaves crop residue behind.
    • This practice mostly carried out in Punjab, Haryana and UP contributes solely to the grave winter pollution in the national capital.

    Emissions from stubble burning

    • The process of burning farm residue is one of the major causes of air pollution in parts of north India, deteriorating the air quality.
    • Stubble burning is a significant source of carbon dioxide (CO2), volatile organic compounds (VOCs), nitrogen oxides (NOx) and hydrocarbons (HC).

    Despite emissions, why do farmers burn stubble?

    • Crop residue burning is practised by the farmers to prepare the land for the next cultivation.
    • The major reason behind the stubble burning is the short time available between rice harvesting and sowing of wheat as delay in sowing wheat affects the wheat crop.
    • Between the harvesting of the paddy crop and the sowing of the next crop, there is only a two to three weeks’ time window is left.
    • Even though farmers are aware that the burning of straw is harmful to health, they do not have alternatives for utilizing them effectively.
    • The farmers are ill-equipped to deal with waste because they cannot afford the new technology that is available to handle the waste material.
    • Therefore, stubble burning is considered one of the cheapest methods to clean the field after the harvesting season.

    Impact of stubble burning

    • Air Pollution: Stubble burning emits toxic pollutants in the atmosphere containing harmful gases like Carbon Monoxide (CO), methane (CH4), carcinogenic polycyclic aromatic hydrocarbons, volatile organic compounds (VOC). These pollutants disperse in the surroundings and eventually affect air quality and people’s health by forming a thick blanket of smog. Along with vehicular emissions, it affects the Air Quality Index (AQI) in the national capital and NCR.
    • Soil degradation: Soil becomes less fertile and its nutrients are destroyed when the husk is burned on the ground. Organic content of soil is completely destroyed. Stubble burning generates heat that penetrates into the soil, causing an increase in erosion, loss of useful microbes and moisture.

    Alternative solutions

    • Power generation: The available paddy straw can be effectively used for power generation, which will go a long way towards overcoming the problem of disposal of crop residues and power deficit in the region.
    • In-situ decomposition: Suitable machinery for collection, chopping and in situ incorporation of straw is required. We can use Pusa Biodecomposer, Biomethanation etc.
    • Organic manuring: Convert the removed residues into enriched organic manure through composting.

    Conclusion

    • Unless financial assistance is to be provided by the Centre for boosting farm mechanization, it is difficult to completely stop stubble burning.
    • States need to make alternative arrangements for the consumption of paddy straw into the soil as per the directions of the NGT.

     

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  • [Burning Issue] Global fuel dynamics and India’s Energy Security

    oil

    Context

    • Despite the global decline in crude oil prices over the last month and buying of cheap Russian crude oil, the retail prices of Petrol and Diesel in India have remained high. These increased prices have also caused high inflation in India, leading to an increase in key policy rates by RBI.
    • In this context, in this edition of the burning issue, we will study Global fuel dynamics and how it impacts India’s energy security.

    Global fuel dynamics

    • Global production of oil- averaged 95.6 million barrels per day in 2021. The top producing country group was OPEC (31.7 million b/d) followed by OECD (31.0 million b/d). The top three producing countries were the United States (18.9 million b/d), Saudi Arabia (10.8 million b/d), and Russia (10.8 million b/d).
    • Price of oil- The average Brent crude oil spot price declined to USD100/bbl in August from USD112/bbl in July. Brent crude oil prices have sunk by over USD20/bbl after peaking in June, pressured by tightening monetary policies and demand concerns in China
    • Demand of crude oil- Global liquids demand saw a slight increase in August to 99.4 MMb/d, but remained below June’s 100 MMb/d.
    • Factors impacting prices- Oilgenerates revenue for countries with enough oil reserves to produce more oil than they consume. Not surprisingly, events such as unrest in oil-producing regions, new oil field discoveries, and advances in extraction technology profoundly affect the oil industry.
    • Recent decline in prices- Benchmark Brent crude oil prices dipped to USD100/bbl in August – the lowest in the past six months. Elevated inflation levels, rate hikes by major central banks, and concerns about a slowdown in the Chinese economy have impacted oil and fuel demand, leading to a price decline.
    • Natural gas- accounts for 32% of primary energy consumption in the United States, the world’s largest producer. Russia is the second biggest producer, and also has at least 37 trillion cubic meters of natural gas reserves, the most in the world. Also, there was a steep rise in the international prices of natural gas triggered by the Russia-Ukraine war disrupting global supplies

    Why crude oil prices were high till last month?

    (A) Limited Supply:

    • Major oil-producing countries had cut oil production amid a sharp fall in demand due to the Covid-19 pandemic.
    • The Russian-Ukraine war has disrupted the supply chains. Also, sanctions on Russia, Iran and Venezuela by the US have reduced supplies of crude in international markets leading to price rises.
    • In early October 2022, OPEC agreed to cut back on oil production to increase prices.

    (B) Revival of Demand:

    • Theproduction and rollout of vaccines for Covid-19 and the rising consumption post the COVID lockdowns last year have both led to a revival in international crude oil prices.

    (C) Geopolitical reasons:

    • Geopolitical tension has risen between Russia, which is the second largest oil producer in the world, and neighbouring Ukraine.
    • In January, there were drone attacks on oil facilities in UAE, another major oil producer.
    • An outage on a major oil pipeline linking Saudi Arabia and Turkey further added to the pressures.

    Impacts of Global fuel dynamics on the Energy Security of India

    • Energy security of India is threatened– Sanctions on Iran & Russia and the reduction of oil production by OPEC have caused prices of Crude oil to sour to record high levels, making it unbearable for the economy and common man, thus negatively impacting the energy security of India.
    • Current Account Deficit: The increase in oil prices will increase the country’s import bill, and further disturb its current account deficit (excess of imports of goods and services over exports). According to estimates, a one-dollar increase in crude oil price increases the oil bill by around USD 1.6 billion per year.
    • Inflation: The increase in crude prices could also further increase inflationary pressures that have been building up over the past few months. This will decrease the space for the monetary policy committee to ease policy rates further.
    • Fiscal Health: If oil prices continue to increase, the government shall be forced to cut taxes on petroleum and diesel which may cause a loss of revenue and deteriorate its fiscal balance.The revenue lost will erode the government’s ability to spend or meet its fiscal commitments in the form of budgetary transfers to states, payment of dues and compensation for revenue shortfalls to state governments under the goods and services tax (GST) framework.

    Reasons for recent fall in crude oil prices

    • Strengthening of US Dollar: For the first time since early February, international crude benchmark Brent went below $90 a barrel last week. This level was last seen before Russia invaded Ukraine. The recent decline came amid expectations of further US dollar rise due to Fed rate hikes.
    • Reducing global demand: Global energy demand is softening, especially in China, where crude oil imports fell 9.4% last month compared to a year ago, as the country’s zero-Covid policy has led to full or partial lockdowns in more than 70 cities since late August.
    • Fear of global recession: US Fed has been increasing the policy rate aggressively causing the Dollar to appreciate vis-à-vis other currencies and outflow of capital thus generating fears of a global recession and thus reducing the demand for oil in the future.
    • Increasing Russian oil supplies: India is buying Russian crude in defiance of Western, especially US pressure, to isolate the country economically and financially. India is buying Russia’s flagship Urals grade at discounts of as much as $35 a barrel on prices before the war

    But why fuel prices are still high in India?

    • Non-passing of savings: Indian refiners are not passing on the cost savings derived from declining crude oil prices since last month.
    • No government support to companies: Petrol was deregulated in June 2010 and diesel in November 2014. Since then, the government does not pay oil firms any subsidy to compensate them for losses they might incur on selling fuel at rates below cost.
    • High losses: The three biggest oil retailers in India posted a combined net loss of Rs 18,480 crore in the June quarter.
    • Recover past losses: No revision of fuel prices by oil marketing companies is to recover the losses that state-owned fuel retailers incurred in keeping the fuel prices unchanged when international oil prices surged to multi-year highs.

    Current Energy scenario in India

    • Aim: Indian Government aims to increase energy in India and reduce energy poverty, with more focus on developing alternative sources of energy, particularly nuclear, solar and wind energy.  India attained 63% overall energy self-sufficiency in 2017.
    • 3rd biggest energy consumer: The primary energy consumption in India grew by 10.4% in CY2021 and is the third biggest with a 6% global share after China and USA.
    • The energy basket: The total primary energy consumption from coal (452.2 Mtoe; 45.88%), crude oil (239.1 Mtoe; 29.55%), natural gas (49.9 Mtoe; 6.17%), nuclear energy (8.8 Mtoe; 1.09%), hydro-electricity (31.6 Mtoe; 3.91%) and renewable power (27.5 Mtoe; 3.40%) is 809.2 Mtoe (excluding traditional biomass use) in the calendar year 2018.
    • Import dependency: In 2018, India’s net imports are nearly 205.3 million tons of crude oil and its products, 26.3 Mtoe of LNG and 141.7 Mtoe coal totalling 373.3 Mtoe of primary energy which is equal to 46.13% of total primary energy consumption. India is largely dependent on fossil fuel imports to meet its energy demands – by 2030.

    Challenges to Energy security in India

    • Low domestic resources: India, with 17% of the world’s population, has just 0.8% of the world’s known oil and natural gas resources.
    • High domestic demand: India’s domestic production is not sufficient to meet its demand. As a result, India already imports 80% of its crude oil needs. Without new and substantial domestic discoveries, imports will continue to increase.
    • Volatile energy supply regions: Problems of diversification of energy sources for India arise from the political volatility, and geopolitics of the regions from where India imports its energy products like the Persian Gulf region, and countries like Russia, Iran, etc.
    • Low share of natural gas usage in India: Natural gas currently provides only 8% of India’s primary energy supply despite the fact that 50% of that gas comes from domestic sources, onshore and offshore. Today, oil accounts for 36% of the country’s primary energy use. This figure is set to rise both in absolute and in percentage terms.
    • Low Private sector participation: Private sector’s Cold response to Government initiatives and policies such as HELP and mine auctions.
    • Lack of holistic policy: India currently does not have a holistic National energy policy but is divided into a national electricity policy, renewable energy policy, etc. leading to a lack of coherency in all energy sectors and ministries.

    Energy policy in India

    • In this context, in 2017, NITI Aayog published a draft National energy policy (NEP) with four key objectives of Access at affordable prices, Improved security and Independence, Greater Sustainability and Economic Growth.
    • The draft NEP proposes actions to meet the objectives in such a way that India’s economy is ‘energy ready’ in the year 2040.

    Some Draft NEP proposals for the Energy Sector

    • India has nearly 3.17 million square km of sedimentary area, out of which only 19% has been moderate to well-explored. To quickly appraise the entire sedimentary area, there is a need to offer geological data to prospective Exploration and Production (E&P) companies.
    • Setting up of 90-day consumption requirement of strategic and commercial storage, both for crude and petroleum products through innovative private investment strategies is needed.
    • To increase the penetration of natural gas, a National Gas Grid would have to be rolled out throughout the country.
    • There is a need to migrate the existing hydrocarbon regime (both Nomination and PSCs) to the emerging framework of market-determined prices and marketing freedom. However, this cannot be done overnight and needs to be achieved in gradual phases.
    • OMCs have done a commendable job in maintaining petroleum supplies throughout the country. The next step in this direction is to encourage competition through the entry of the private sector in a big way, to raise efficiency and consumer satisfaction levels.

    India’s Quest for Energy Security: The Steps Taken

    • Exploring domestic energy reserves: To promote oil and gas production at the domestic level, the Indian Government has been taking several steps which range from encouraging Indian companies to increase their domestic activities and widening its engagement with multinational companies, broadening opportunities for them to participate in oil and gas exploration in India.
    • HELP policy: Government has launched an Open licensing and acreage policy under the Hydrocarbon exploration and licensing policy (HELP) in 2017. The HELP marked an important transition from regulation to liberalization of India’s E&P sector; it is a very significant upstream reform of the fiscal regime.
    • Policy and operational changes: to stimulate the investments and development in the exploration of hydrocarbon sources of energy, some of the steps have focussed on regulatory changes, a transparent gas pricing policy and redevelopment of uneconomical assets.
    • Exploring alternative sources: The domestic efforts have also seen a concerted focus on exploring various alternative sources of energy that are infinite, renewable and environment-friendly. The government has given a massive push in this regard in energy production through solar energy, wind power, hydroelectricity power, and biomass, and nuclear energy.
    • Diversifying energy sourcing regions: Two-thirds of India’s oil imports come from Gulf region. India is following in the footsteps of other major oil-importing economies and making significant efforts to obtain supplies from sources outside the Gulf such as regions of Latin America, Africa, the Caspian Basin, Russia and the waters of the Indo-Pacific region.
    • Launch of NDR: In support of the OALP, the government launched the National Data Repository in June 2017. It is a comprehensive archive of geo-scientific data for E&P activities. By allowing companies to access the data through an e-platform and consult relevant information, the government helped the interested parties in making bidding decisions.
    • Small field policy launched: Discovered Small Field Policy was launched in 2016 to tap unmonetized small oil/gas discoveries in India, Discovered Small Field provides an easy and low-risk investment option for interested parties to encourage E&P activities.

    Way forward

    • Reinforce its oil emergency response policy- to adapt it to the expected strong growth in oil consumption, with increased dedicated emergency stocks and procedures, including demand restraint measures and a proper analysis of risks by using oil disruption scenarios.
    • Strengthen the regulatory oversight- of the sector. Non-discriminatory access to oil transport and the level-playing field in the mid-and downstream oil sector.
    • Promote the diversification- of oil sources and reduce India’s high oil import dependence by enhancing exploration and production activities and the development of alternative sources, such as biofuels.
    • Foster the creation of a liquid market- for natural gas in India, gradually moving from gas allocation and multiple pricing regimes to the creation of a gas hub, so that domestic gas and LNG imports can be used most efficiently and competition can flourish.
    • Strengthen and clarify the roles and responsibilities- of the regulatory supervision of natural gas market activities (upstream, midstream and downstream) to ensure a non-discriminatory access regime to pipeline capacity so that both LNG imports and new gas discoveries can find their way to markets and investment in gas transport and storage is encouraged.
    • Ensure gas is treated on a level playing field- with other fuels for taxation and is included under the GST, as the country strives to increase the share of gas in the total energy supply.
    • Enhance international engagement- by India on global oil security issues.

    Conclusion

    • Nation has achieved a lot in the energy sector in recent years which has propelled it to become one of the largest economies in the world.
    • But to continue on this growth path, India’s energy policy needs to be pursued more inclusively in its domestic and international settings to address its fast-growing energy demand in a competitive geo-political environment.

  • Aatmanirbhar in defence production: Where does India stand?

    India ranks fourth among 12 Indo-Pacific nations in self-reliant arms production capabilities, according to a study released this month by the Stockholm International Peace Research Institute (SIPRI).

    Study on Defence production

    • China tops the list, Japan is second, South Korea is in third place, and Pakistan is at number 8.
    • The study, which measures self-reliance until 2020, is based on three indicators of self-reliance in each country:
    1. Arms procurement — imports, licensed and domestic production as a proportion of the government’s total procurement of major conventional arms;
    2. Arms industry — the study presents the five largest arms companies in each country, where data are available, ranked by sales of arms and military services in 2020 to both domestic and export customers;
    3. Uncrewed maritime vehicles, the sea equivalent of drones — covering both uncrewed surface vehicles (USVs) and uncrewed underwater vehicles (UUVs), meant to provide a qualitative understanding of how countries are engaging domestic research institutes and firms to produce such cutting edge systems.

    How has China progressed?

    • China was the world’s fifth largest arms importer in 2016-20.
    • Its self-reliance policies, and its high economic growth in that period meant that the Chinese arms industry now increasingly fulfils the requirements of the People’s Liberation Army (PLA).
    • Its high volume of imports in absolute terms accounts for only 8 per cent of total procurement for the period, the lowest share for any of the 12 governments studied in this report.

    Why is India still lagging behind?

    • India is ranked as the second-largest importer of arms for its armed forces in 2016-20.
    • India is highly dependent on imports of complete foreign major arms, including many produced under licence or as components for its domestic production.
    • Of India’s total volume of procurement in 2016–20, 84 per cent was of foreign origin.
    • Domestic arms companies provide only 16 per cent of its total procurement.

    Steps taken by the Centre to boost defence production

    • Licensing relaxation: Measures announced to boost exports since 2014 include simplified defence industrial licensing, relaxation of export controls and grant of no-objection certificates.
    • Lines of Credit: Specific incentives were introduced under the foreign trade policy and the Ministry of External Affairs has facilitated Lines of Credit for countries to import defence product.
    • Policy boost: The Defence Ministry has also issued a draft Defence Production & Export Promotion Policy 2020.
    • Budgetary allocation: In addition, a percentage of the capital outlay of the defence budget has been reserved for procurement from domestic industry.
    • Defence Industrial Corridors: The government has also announced 2 dedicated Corridors in the States of TN and UP to act as clusters of defence manufacturing that leverage existing infrastructure, and human capital.
    • Long-term vision: The vision of the government is to achieve a turnover of $25 bn including export of $5 bn in Aerospace and Defence goods and services by 2025.
    • Push for self-reliance: The govt has identified the Defence and Aerospace sector as a focus area for the ‘Aatmanirbhar Bharat’ or Self-Reliant India initiative.

    Issues retarding defence indigenization

    • Excess reliance on Public Sector: India has four companies (Indian ordnance factories, Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL) and Bharat Dynamics Limited (BDL)) among the top 100 biggest arms producers of the world.
    • Policy delays: In the past few years, the government has approved over 200 defence acquisition worth Rs 4 trillion, but most are still in relatively early stages of processing.
    • Lack of Critical Technologies: Poor design capability in critical technologies, inadequate investment in R&D and the inability to manufacture major subsystems and components hamper the indigenous manufacturing.
    • Long gestation: The creation of a manufacturing base is capital and technology-intensive and has a long gestation period. By that time newer technologies make products outdated.
    • ‘Unease’ in doing business: An issue related to stringent labour laws, compliance burden and lack of skills, affects the development of indigenous manufacturing in defence.
    • Multiple jurisdictions: Overlapping jurisdiction of the Ministry of Defence and Ministry of Industrial Promotion impair India’s capability of defence manufacturing.
    • Lack of quality: The higher indigenization in few cases is largely attributed to the low-end technology.
    • FDI Policy: The earlier FDI limit of 49% was not enough to enthuse global manufacturing houses to set up bases in India.
    • R&D Lacunae: A lip service to technology funding by making token allocations is an adequate commentary on our lack of seriousness in the area of Research and Development.
    • Lack of skills: There is a lack of engineering and research capability in our institutions. It again leads us back to the need for a stronger industry-academia interface.

    Way forward

    • Reducing import dependence: India was the world’s second-largest arms importer from 2014-18, ceding the long-held tag as the largest importer to Saudi Arabia, says 2019 SIPRI report.
    • Security Imperative: Indigenization in defence is critical to national security also. It keeps intact the technological expertise and encourages spin-off technologies and innovation that often stem from it.
    • Economic boost: Indigenization in defence can help create a large industry which also includes small manufacturers.
    • Employment generation: Defence manufacturing will lead to the generation of satellite industries that in turn will pave the way for a generation of employment opportunities.

     

     

     

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  • Places in news: Solomon Islands

    solomon

    Solomon Islands PM has assured Australia that his nation will not allow a Chinese military presence in its territory.

    Where is the Solomon Islands located?

    • The Solomon Islands is a sovereign country consisting of six major islands and over 900 smaller islands in Oceania, to the east of Papua New Guinea and northwest of Vanuatu.
    • Its capital, Honiara, is located on the largest island, Guadalcanal.
    • It is part of the ethnically Melanesian group of islands in the Pacific and lies between Papua New Guinea and Vanuatu.
    • The country takes its name from the Solomon Islands archipelago, which is a collection of Melanesian islands that also includes the North Solomon Islands (a part of Papua New Guinea).
    • It excludes outlying islands, such as the Santa Cruz Islands and Rennell and Bellona.

    Quick recap of its past

    • The islands, which were initially controlled by the British Empire during the colonial era, went through the hands of Germany and Japan.
    • It then went back to the UK after the Americans took over the islands from the Japanese during World War II.
    • The islands became independent in 1978 to become a constitutional monarchy under the British Crown, with a parliamentary system of government.
    • Nevertheless, its inability to manage domestic ethnic conflicts led to close security relations with Australia, which is the traditional first responder to any crisis in the South Pacific.

    How did China enter the picture?

    • Earlier this year, the Solomon Islands established a security agreement with China, saying it needed Beijing’s assistance with its domestic security situation.
    • But the announcement had rattled the west, esp. the US, Australia and others in the Indo-Pacific region.
    • The concerns were that the agreement could potentially lead to a Chinese military base on the island nation and a gain in power-projection capabilities.
    • At that time, following intense scrutiny, the Solomon Islands had denied that the agreement would allow China to establish a naval base.
    • The Island insisted that the agreement was only to assist the Solomon Islands with what he called “hard internal threats”.

    What is the Solomon Islands’ stance?

    • The government has asked all partner countries with plans to conduct naval visits or patrols to put them on hold until a revised national mechanism is in place.
    • The revised national mechanism applied to all foreign vessels seeking access to the country’s ports.
    • The nation wanted to build up its own naval capacity.
    • It has some unfortunate experiences of foreign naval vessels entering its waters without any diplomatic clearance.

    What is behind China’s growing influence in the region?

    • There is no dispute that China has been rapidly increasing its presence and influence in the region for over three decades, particularly in the South Pacific.
    • Certainly Beijing views the Pacific Island region as an important component of its Belt and Road Initiative (BRI).
    • Specifically, it sees the region as a critical air freight hub in its so-called Air Silk Road, which connects Asia with Central and South America.

    Concerns of the West

    • The United States and its regional allies, such as Australia and New Zealand, are concerned that the China-Solomon Islands security pact allows Chinese naval vessels to replenish there.
    • That could open the door to a Chinese naval base, which would significantly extend China’s military reach in the South Pacific.”
    • It is likely that this security agreement between China and the Solomon Islands has been driven by, what the CFR calls, Beijing’s “sense of vulnerability” in the region.

    What is the rationale for the Solomon Islands’ increasing proximity to China?

    • The Solomon Islands had cultivated strong ties with Taiwan, which ended with the emergence of the current government in Honiara.
    • In 2019, the regime change switched Taiwan for China.
    • This was supposedly after Beijing offered half a billion US dollars in financial aid, roughly five times what Taiwan spent on the islands in the past two decades.
    • It has been alleged by the pro-Taiwan Opposition that the incumbent government has been bribed by China.

    Why is China interested in the Solomon Islands?

    • Isolating Taiwan: The Solomon Islands was one among the six Pacific island states which had official bilateral relations with Taiwan.
    • Supporter in UN: The small Pacific island states act as potential vote banks for mobilising support for the great powers in international fora like the United Nations.
    • Larger EEZ: These states have disproportionately large maritime Exclusive Economic Zones when compared to their small sizes.
    • Natural resources: Solomon Islands, in particular, have significant reserves of timber and mineral resources, along with fisheries.
    • Countering US: But more importantly, they are strategically located for China to insert itself between America’s military bases in the Pacific islands and Australia.

    What does this mean for the established geopolitical configuration in the region?

    • Diminishing western influence: The Pacific islands, in the post-World War II scenario, were exclusively under the spheres of influence of the Western powers, in particular, the US, UK, France and Australia and New Zealand.
    • Inserting into western hegemony: All of them have territorial possessions in the region, with the three nuclear powers among them having used the region as a nuclear weapons testing ground.
    • Shifting of dependencies: The smaller island nations of the region are heavily dependent on them, especially Australia as it is a resident power.

     

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  • Amendments to Bharat Series Rules

    bharat

    The Ministry of Road Transport and Highway has issued a draft notification proposing new rules to further increase the scope of implementation of the BH series vehicle registrations.

    Bharat series (BH-series)

    • There was a procedure of re-registration of a vehicle while moving to another state.
    • A vehicle bearing BH registration mark shall not require assignment of a new registration mark when the owner of the vehicle shifts from one State to another.
    • Format of Bharat series (BH-series) Registration Mark –

    Registration Mark Format:

    1. YY BH #### XX
    2. YY – Year of first registration
    3. BH- Code for Bharat Series
    4. ####- 0000 to 9999 (randomized)
    5. XX- Alphabets (AA to ZZ)

    Why such move?

    • Station relocation occurs with both Government and private sector employees.
    • Such movements create a sense of unease in the minds of such employees with regard to transfer of registration from the parent state to another state.
    • Under section 47 of the Motor Vehicles Act, 1988, a person is allowed to keep the vehicle for not more than 12 months in any state other than the state where the vehicle is registered.

    Who can get this BH series?

    • BH-series will be available on voluntary basis to Defense personnel, employees of Central Government/ State Government/ Central/ State PSUs and private sector companies/organizations.
    • The motor vehicle tax will be levied for two years or in multiple of two.
    • This scheme will facilitate free movement of personal vehicles across States/UTs of India upon relocation to a new State/UT.
    • After the completion of the fourteenth year, the motor vehicle tax shall be levied annually which shall be half of the amount which was charged earlier for that vehicle.

     

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

  • Essay Essential Program 2023: Personalized Mentorship led Essay Writing and Evaluation program | Foundation building lectures by Zeeshan sir, Tests, and 1-1 mentorship | Enrollment open

    Essay Essential Program 2023: Personalized Mentorship led Essay Writing and Evaluation program | Foundation building lectures by Zeeshan sir, Tests, and 1-1 mentorship | Enrollment open

    enroll for the program | click here to schedule a 1-1 call with senior mentors to discuss more

    Aspirants, UPSC 2023 is around 8 months away and it is high time now to start Essay writing. A lot of aspirants delay it till the post-prelims phase, considering the weightage of this Exam (250 marks in mains), this is a poor strategy and a recipe for disaster.

    Before you get into the Prelims 2023 zone, which will be from Feb, you must utilize the next few months (Oct-Feb) for Essay particularly.

    An Essay is a ‘Written Interview’ in UPSC mains 

    CivilsDaily is pleased to launch Essay Essential Program 2023 and this time we have made it holistic for you. One of the changes is lectures, that Zeeshan sir will be imparting skills in Essay writing.

    Table of content:

    1. About Essay Writing for UPSC-CSE
    2. Essay Program Details: Essay Essential Plus Program 2023 with Zeeshan sir’s mentorship and Essay Essential Program 2023
    3. Program inclusion and Course Fee
    4. Experience of our 2022 batch of students
    enroll for the program | click here to schedule a 1-1 call with senior mentors to discuss more

    Essay writing for UPSC-CSE

    • Two essays are given and have to be written in under 3 hours in 1000-1200 words. Each essay carries 125 marks for a total of 250
    • The essay paper is divided into two sections- Section A and Section B. Each section carries a choice of 4 essays, and the aspirants have to choose only one essay from each section.
    • The instructions in the syllabus are clear in what is expected from aspirants. And Aspirants are expected to keep their thoughts closely to the subject and arrange their ideas accordingly. It further states that credit is given for effective and coherent expression
    • The underline keywords are super important because, after content, these are the exact parameters on which the essay will be evaluated.

    Essay writing is an important component of the Civil Services Examination (CSE), which tries to gauge the writing skills, knowledge, critical thinking, imagination, and creativity of the candidates. Particularly, in the UPSC CSE (Main), scoring well in the Essay paper, which is allocated a decent share of 250 marks, has become crucial to final selection into the coveted services like IAS, IPS, IFS, etc.

    In the Essay paper, the UPSC demands certain attributes, which focus on “conciseness, relevance, and effective and exact expression” of the views presented, in an orderly fashion. However, the scenario may not be as simple as it appears. This segment is not easy to master, and getting a good score in an Essay has always been a challenge for the aspirants.

    enroll for the program | click here to schedule a 1-1 call with senior mentors to discuss more

    An essay is an organized piece of writing. This means that it consists of several paragraphs which are arranged in such a way that there is a beginning, a middle, and an end.

    Although many say that practice makes one perfect, in the case of UPSC essays practice alone is not enough. To clear and get top rank in UPSC, certain things are required, like; Accurate basic structure, Body Keywords, Central idea of the thesis statement, Brainstorming, Adding elements, PESTLE analysis, Outlining the essay, Sticking to the word and time limit, fitting introduction and mark-leaving conclusion, Quotes, Etc.

    And for a beginner, acquiring all these concepts, dimensions, and solutions required to solve is nothing but deep pain. 

    Writing a good essay can be very challenging and confusing. Time and again we’ve received many queries from students like:

    • Reviews provide additional points but don’t address the inherent shortcomings and deficiencies in my skills.
    • Will reading ready-made sample essays help me prepare for essays?
    • Don’t know how to start an essay, or how to organize one.
    • Can we do well in essays without practicing by re-using our GS paper knowledge alone?
    • Is there a universal format that I can stick to?
    • Content related- some suffer from information overload others from information deficit.
    • Importance of rough work for essays.
    • Difficulty in balancing time and quality in both topics.

    That’s why we’ve invested a great deal of energy to create a program the likes of which are offered by no one else

    Civilsdaily’s Essay Programs 2023

    Civilsdaily’s Essay program is now complete with Essay Writing, Test series, evaluation, and 1-1 mentorship component.

    There are two variants this time:

    1. Essay Essential Program 2023 with lectures and 1-1 mentorship
    2. Essay Essential Program Plus 2023 with lectures and Zeeshan sir’s mentorship

    What are we offering and how is it unique?

    What makes CivilsDaily’s program distinctive is – its process-driven approach. The process may have some common minimum steps for all but your individuality in the form of your essay writing is paramount. Here comes the role of a mentor with whom a reliable one-to-one discussion will certainly be a game-changer.

    Not information-centric but rather an analytical and critical style of Essay writing. Our focus is on personalized attention in evaluation, execution, and course correction.

    Essay writing and foundation-building lectures by Zeeshan sir

    Zeeshan sir will be taking 15 lectures covering different themes and frameworks for UPSC Essays. These lectures will form the foundation of your content for the essay.

    Zeeshan sir will also be discussing different frameworks for writing an Essay.

    CEP Methodology:

    • Orientation Session – brainstorming, thesis statement, types of introduction, way to conclude, main body arguments, and their organization in your essay.
    • Pre-test discussion on the theme for building the arguments and content.
    • Post-test one-on-one discussion with an evaluated copy.

    Highly relevant, precise, and thoughtful topic selection

    Our research tells us there are 8 broad themes of essays being asked since 2010 – Economy, Polity, Women Issues, Education, Science & Tech, Philosophy, IR, Miscellaneous.

    1. Social Issues- Women Issues, Social Movements, Class, Caste, Youth, Geriatric
    2. Economy,
    3. Political System and Governance
    4. Human Development- Health, Education, Employment
    5. Science & Technology- IT/ITeS, AI
    6. Ethical, Abstract or Philosophical,
    7. IR
    8. Miscellaneous

    An innovative methodology for reviews

    Our biggest innovation lies in our review methodology. Specific portions of your essay will be highlighted with symbols to indicate issues in essay writing:

    • Fundamental Flaws like judgments/strong postures that you need to be avoided at all costs.
    • Appreciation for uniqueness.
    • Structure is not maintained. Issues with Language and expression.
    • General Suggestions for candidates.

    Along with this, Zeeshan sir and senior mentors will also leave specific reviews on strengths and weaknesses.

    We don’t want to merely suggest additional points that can be googled by the student or point out superficial flaws like not ‘sticking to the topic’. They don’t necessarily highlight the shortcomings in the essay. This adds very little value to students. We go much beyond that and help students fix major flaws in their essays.

    10 parameters on which your essays are going to get evaluated

    1. Comprehension of the Essay topic
    2. Language and Expression of Essay writing
    3. Structure and Organization of thought.
    4. Objectivity and Biases. Balance of perception
    5. Attitude whether a learner or judgmental
    6. Focus and attention
    7. Content, Knowledge, and information processing capability
    8. Ability to forge links in an interdisciplinary manner
    9. The simplicity of disposition
    10. Observational Skills

    Model essays with indicative structure and good essay copies

    You will be provided with good essay copies to serve as sample answers. This is a better alternative than sample answers which are hastily written and at times not updated with the latest figures.

    Students have an incorrect impression that going through a sample essay will somehow help them write better essays. This is incorrect.

    To develop your competency in tackling different topics, you have to be able to come up with appropriate structures. This aspect of the program addresses this issue.

    The expectation from you would be that you study the solutions in detail and try to address the shortcomings in your essays. Should doubts persist, we’re here to help.

    One-to-one Mentorship and CivilsDaily’s handholding

    This component of the program is the most important. Post-evaluation of your essay test you will get on a one-to-one discussion with senior mentors and in the case of Essay Essential Plus Program 2023 with Zeeshan sir. You will be discussing the topics in considerable depth, appropriate structure, pitfalls to avoid, etc.

    Along with that, Sir will also discuss copies presenting different styles in which the essays could be attempted.

    enroll for the program | click here to schedule a 1-1 call with senior mentors to discuss more

    Membership to an exclusive community

    Habitat is our learning platform, here you’ll be given membership to an exclusive Essay group. This group will be administered by Zeeshan sir, Sajal sir, in-service officers, rankers, and other mentors.

    For essays, you need multiple perspectives to understand a topic or an issue in its entirety. You need discussions; arguments; confluence, confrontation, and integration of ideas. Here, discussions will be facilitated by mentors and enriched by different viewpoints from peers. Moreover, you can ask and discuss any of your doubts with peers and Zeeshan sir.

    Habitat discussions

    Besides these, you will be given the following

    • Any additional material that we release for essays.
    • Notes and reference material including good articles, essays, etc. on Habitat group.

    Program inclusion

    • 8 FLTs before Prelims and 5 FLTs Post Prelims
    • Zeeshan sir’s lectures that will include – Orientation, Process building session, Content/approach building session.
    • Model essays
    • One-to-one mentorship
      • In Essay Essential Program 2023 by senior mentors
      • In Essay Essential Plus Program 2023 by Zeeshan sir
    • Membership in an exclusive Essay group on Habitat
    • Notes and references as required
    • Topic-wise arranged PYQs

    Course Fee:

    Essay Essential Program 2023: Rs 12,000 + GST = Rs 14,160

    Essay Essential Plus Program 2023 with Zeeshan sir’s mentorship: Rs 16000 + GST = Rs 18,880

    (Admission to Essay Essential Plus Program 2023 is subject to Zeeshan sir’s discretion)

    enroll for the program | click here to schedule a 1-1 call with senior mentors to discuss more

    How did our 2022 Essay students feel about UPSC Essay 2022?

    enroll for the program | click here to schedule a 1-1 call with senior mentors to discuss more

  • 7th October 2022| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1          Indian culture will cover the salient aspects of Art Forms, literature and Architecture from ancient to modern times.

    GS-2          Constitution of India—historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

    GS-3         Issues of buffer stocks and food security

    GS-4         Case Studies

    Question 1)

    Q.1 Although a bit different from modern democracy, democratic traditions have been a part of ancient Indian culture establishing the view that India is not just the world’s largest democracy, but also the “mother of democracy”. Discuss. (10 Marks)

    Question 2)

    Q.2 Do you think reservations for economically weaker sections (EWS) is justified? What are the arguments against it? (10 Marks)

    Question 3)

    Q.3 Rice export restrictions by India have heightened food security anxieties across the global market. Highlighting the reasons behind the move, examine its significance. (10 Marks)

    Question 4)  

    Q.4 Mr. X is a billionaire businessman who heads a conglomerate engaged in insurance, energy generation and distribution, and manufacturing. Despite being globally known as a great philanthropist, he turned down a shareholder request seeking the disclosure of the conglomerate’s actions on issues related to climate change as well as diversity and inclusion. Because of increased attention to climate and diversity issues, many leading firms have committed themselves to incorporate relevant considerations in their business strategies. Therefore, some industry-observors wonder if Mr. X is out of touch with the industry at large and have warned him that failing to address climate change issues puts his businesses under systemic risk. But, Mr. X maintained his vote against the disclosure proposal, while at the same time acknowledged the importance of both climate change and a diverse and inclusive work force. However, Mr. X believes that such ethical issues take secondary importance to maximising shareholder profit. (a) Discuss the importance of including climate change strategies and diversity and inclusion in a business organisation? (b) In your opinion, what matters more for a business organisation – socio-environmental concerns or shareholder profit? (c) How can the two above-mentioned issues be reconciled? (20 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

  • 7th October 2022 | Prelims Daily with Previous Year Questions

    7th October 2022 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1131]

    [WpProQuiz_toplist 1131]

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

  • Moonlighting: Overemployment or Underpayment

    MoonlightingContext

    • In July, Kotak Securities said in a study that at least 60% of 400 employees surveyed said they themselves had, or knew someone who had engaged in moonlighting.

    What is mean by moonlighting?

    • Moonlighting is a state where employees work for remuneration with entities other than their employers. It is not defined in any of the statutes in India. However, there are enactments that deal with double employment.

    MoonlightingHow does it affect companies and what are latest examples?

    • Wipro: According to Wipro CEO, there is a lot of chatter about people moonlighting in the tech industry. This is cheating plain and simple. The company sacked 300 employees following the discovery that they were working for rival firms on the side, leading to conflict of interest.
    • Infosys: Infosys has warned staff against moonlighting, saying it could lead to termination.
    • Effect of WFH: Another software firm DXC Technologies said that moonlighting by employees was a challenge for employers but that wouldn’t affect its WFH (work from home) policy that has worked well for both the firm and its staff.
    • Moonlighting policy: Swiggy announced a moonlighting policy’ that allows employees to pursue their passion for economic interests alongside their fulltime employment.”

    MoonlightingWhat is the Legal status of moonlighting?

    • Factory act: Section 60 of the Factories Act deals with restriction on double employment stating that “No adult worker shall be required or allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed. However, this enactment is applicable only to employees working in factories.
    • The Tamil Nadu Shops & Establishments Act, 1947: There are State enactments which deal with employment of persons working in offices, banks, shops, etc. In Tamil Nadu, it is termed as The Tamil Nadu Shops & Establishments Act, 1947. However, there is no provision wherein dealing with dual employment.
    • Glaxo Laboratories (I) Limited vs Labour Court, Meerut and others: The apex court held that “The employer has hardly any extra territorial jurisdiction. He is not the custodian of general law and order situation or the Guru or mentor of his workmen for their well-regulated cultural advancement. If the power to regulate the behaviour of the workmen outside the duty hours and at any place wherever they may be was conferred upon the employer, contract of service may be reduced to contract of slavery.” This case was not specifically about moonlighting but the court’s observation gives us an idea as to how the law may view such cases.

    MoonlightingWay forward

    • More earning: The Minister of State for Skill Development and Entrepreneurship, and Electronics and IT, said that employers should not to suppress employees who want to monetise, develop and demonstrate but also urged employees not to violate their agreements with employers.
    • Working hours: Moonlighting is subject to law of the land. The sphere of employment cannot be extended by the employer beyond working hours and outside his place of employment.
    • Socialistic view: The Courts of law in India dealing with employment are Writ Courts and Labour Courts, which exercise jurisdiction based on equity or fairness. Therefore, the Courts may lean in favour of the employee unless the contravention of the employee has led to serious prejudice and loss to the employer

    Conclusion

    • Employees are not the slaves of employers. What they do beyond the working hours is none of the business of employer unless it affects company financially or causes substantial damage to business. Government should bring the legal statute to regulate moonlighting and prevent the unjustified punishment of employees.

    Mains Question

    Q. What is moonlighting? Why employees do moonlighting? Discuss the legal framework about moonlighting in India.

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