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The Incident: The elections for urban local bodies in Nagaland—slated to be held on 1 February—were postponed in the light of violent protests.

The Issue: Tribal traditional bodies, exclusively run by men, are opposed to 33 per cent reservation for women in elections to civic bodies.

The Argument:  Article 234(T) of the Constitution, which provides for 33 per cent reservation for women in local body elections, would “infringe upon Naga traditions and customs”.

 

Backgrounder:

1992: The Constitution amended to provide 33% reservation for women in municipalities.

1993: Article 243(T) of the Constitution, which provides for 33 per cent reservation for women in local bodies, came into force.

2001: Nagaland passed its Municipal and Town Council Act but didn’t include the reservation provision

2004: Nagaland held ULB polls without providing the mandatory right to women.

2005: The Gauhati high court, acting on a petition, directed Nagalandto include women reservation; The state government amended its municipal Act and included the provision.

2009: Even after this, the state government couldn’t conduct fresh elections to ULBs due to opposition from tribal bodies.

2011: Naga Mothers’ Association (NMA) received a favourable judgment from a single-judge bench of the Gauhati High Court.

July 2012: A division bench set asides the 2011 single bench judgment.

Sep 2012: Nagaland Assembly Resolution opposed 33 per cent quota.

Nov 2016: Assembly revoked its resolution of September 2012.

 

What followed: The tribal bodies protested loudly as soon as the elections were announced and threatened candidates who intended to file nominations that they would be ex-communicated from their respective tribes. The Naga Hoho, the body that represents the state’s 16 tribal groups, contends that the reservation violates the safeguards to the tribal customary laws provided by the Constitution’s Article 371A. Coming under pressure, some candidates didn’t file nominations and some others withdrew their papers. Those who refused to withdraw from the fray were ex-communicated, ranging from 10 to 30 years.

When the State government refused to call off the elections, the tribal bodies announced a bandh from January 28 to February 1. They enforced the bandh across Nagaland although elections took place in several places on February 1.

Meanwhile, on January 31, two persons were killed in Dimapur, the commercial capital of the State. Things soon took an ugly turn, and the Nagaland government declared the elections ‘null and void’.

But even before the bandh call, the focus had started shifting from women’s reservation to issues of taxes and land ownership contained in the Nagaland Municipal (Third Amendment) Bill 2016.

The Other Side: The women’s rights groups in the state argue that since municipalities and town councils are not customary institutions, women should be entitled to the reservations in these urban local bodies mandated by the 74th amendment to the Constitution. At 76.69 per cent, women’s literacy in Nagaland is far above the national average. Naga women work in fields, excel in business, and as academics and professionals. But customary laws prevent them from claiming rights to land or inheriting ancestral property. Since Rano Mese Shaiza was elected to the Lok Sabha in 1977, no Naga woman has made it to Parliament. The Nagaland state assembly has never had a woman member. It is unfortunate that another chance to resolve these contradictions has been lost.

What next? The Nagaland government has decided to write to the Centre demanding that Nagaland be exempted from Part IX A of the Constitution.  If  Nagaland is exempted from the purview of Part IX of the Constitution, Naga women will have absolutely no hope of entering into and participating in decision-making bodies.

Reservation for women is necessary in patriarchal societies like Naga society, for instance, where there is a historical culture of inequalities even though Nagas don’t practise sati, female foeticide and infanticide, and do not believe in dowry or the caste system. But Naga customs, culture and traditions preclude women from inheriting land and participating in the decision-making process, which is exactly what Article 371(A) protects.

P.S.: While the all-male tribal bodies have been opposing women’s reservation in civic bodies, Nagaland has had 25 per cent reservation for women in the village development boards (VDB). It was Section 50 of the Nagaland Village and Area Council Act of 1978 that provided for such a reservation.

Leading Nagaland editor and author Monalisa Changkija said, “In the controversy over 33 per cent reservation for women, the most pertinent aspect hasn’t been discussed yet – the economic connotations inherent in politically empowering women through reservations. Naively assuming that such reservations violate Article 371(A) and would affect Naga culture and customs would be to miss the whole point of the argument against the reservations. The core of the issue – like most other issue – is ownership of land and related resources. Naga culture and customs debar women from land ownership hence our Customary Laws preclude women from inheriting land.”

She also says that Naga society has never held men and women to be equals. “This is reinforced by Naga male-dominated tribal bodies’ recent diktat to ex-communicate anyone who contested the civic elections with 33% women’s reservation. Women’s reservation is necessitated in patriarchal societies for reasons of inequalities that are ubiquitous in Naga society – even if we don’t practice dowry, sati, female foeticide, infanticide and the caste-system.”

That women do not find political space in Nagaland is evident from the fact that no woman has ever made it to the State Legislative Assembly since the state was formed in 1963. Barely a dozen women have contested Assembly elections in these five decades. One woman, Rano M Shaiza, however, managed to win from the lone Lok Sabha constituency of the state. That was in 1977 and she remains the first and only woman to achieve that feat.

In the 2013 Assembly polls, the female voter turn-out in the state stood at 91.22 per cent as against 89.82 per cent for men. However, the sex ratio in Nagaland, according to the 2011 Census, stood at 931, below the national average of 940.

Article 371(A) of the Indian Constitution (Special provision with respect to the State of Nagaland) states, “Notwithstanding anything in this Constitution, (a) no Act of Parliament in respect of (i) religious or social practices of the Nagas, (ii) Naga customary law and procedure, (iii) administration of civil and criminal justice involving decisions according to Naga customary law, (iv) ownership and transfer of land and its resources, shall apply to the State of Nagaland unless the Legislative Assembly of Nagaland by a resolution so decides.”

Previous Year Questions on similar lines:

Q. Recent directives from Ministry of Petroleum and Natural Gas are perceived by the `Nagas’ as a threat to override the exceptional status enjoyed by the State. Discuss in light of Article 371A of the Indian Constitution. (GS 2, 2013)

Q.1) Consider the following statements:

1. South Asia Sub-regional Economic Cooperation (SASEC) is a very recent grouping of Asian Development Bank to promote regional prosperity.
2. Myanmar has become the latest country to join SASEC.

Which of the above statements is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

 

Q.2) The government of India recently launched ‘SAMPADA’ as an umbrella scheme for which of the following sectors?

a) Civil Supplies

b) Financial Services

c) Food Processing

d) Information Technology

 

Q.3) Consider the following statements about ‘Huygens’:

1. It was a lander released on Saturn’s largest moon, Titan.
2. It was a joint project of Italian Space Agency, NASA and European Space Agency.

Which of the above statements is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

 

Q.4) Cassini spacecraft, which recently made its final plunge into the Saturn, was launched in 1997 from

a) Kennedy Space Centre

b) Vandenberg Air Force Base

c) Patrick Air Force Base

d) Cape Canaveral

 

Q.5) Which of the following statements about the ‘Brane Craft’ is/are not correct?

1. It is being developed jointly by NASA and European Space Agency
2. It is a spacecraft being developed to remove space debris

Select the correct answer using the codes given below.

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

 

Q.6) The Golden Lion Award winning movie at the recently concluded Venice Film Festival has been directed by

a) Guillermo del Toro

b) Alexander Payne

c) Xavier Legrand

d) Samuel Maoz

 

Q.7) Which of the following is/are among the features of the recently launched ‘iPhone X’ by Apple Inc.?

1. Wireless charging
2. Facial recognition
3. Organic Light-Emitting Diode (OLED) Screen

Select the correct answer using the codes given below.

a) 2 and 3 only

b) 1, 2 and 3

c) 2 only

d) 1 and 3 only

 

Q.8) Cox’s Bazar, Ukhia and Shah Porir Dwip which have recently been in news are located in

a) Bhutan

b) India

c) Myanmar

d) Bangladesh

 

Q.9) Foundation stone of the Ahmedabad-Mumbai bullet train project was recently laid. This bullet train shall not pass through

a) Jamnagar

b) Vadodara

c) Surat

d) Anand

 

Q.10) Article 371A of the Indian Constitution contains special provision in respect to the state of

a) Tripura

b) Manipur

c) Nagaland

d) Meghalaya

 

Q.11) Astra, which successfully completed development trials recently, is indigenously developed

a) nuclear powered submarine

b) unmanned air vehicle

c) beyond visual range air-to-air missile

d) nuclear capable surface-to-air missile

 

Q.12) Which of the following has not been added as a new event in the Olympics by the International Olympic Committee?

a) Water Polo

b) Karate

c) Skateboard

d) Sport Climbing

 

Q.13) Which of the following statements about Sickle cell anaemia is not correct?

a) It is a genetic blood disorder

b) It results in an abnormality in the oxygen-carrying haemoglobin

c) Malnutrition is a major cause of sickle cell anaemia

d) Tribes of south Indian States are naturally immune to it

 

Q.14) Which of the following is not an auction house?

a) Sotheby’s

b) Fitch

c) Bonham’s

d) Phillips

 

Q.15) What is Global Financial Integrity (GFI)?

a) A intergovernmental think-tank that undertakes research to stem the flow of illegal money

b) A for-profit US-based think tank that provides service to the government organizations to study the flow of illegal money

c) An organization working under the aegis of the World Bank that entertains specific requests from the countries to track illegal money

d) A non-profit research and advisory organization that quantifies and studies the flow of illegal money

 

Q.16) Which of the following was renamed as the Abdul Kalam Island after the former President of India?

a) Sriharikota

b) Wheeler Island

c) Thumba

d) Byalalu

 

Q.17) Which of the following is/are biofuel crops ?

1. Corn
2. Wheat
3. Soyabean
4. Jatropha
5. Sugarcane

Select the correct answer using the codes given below.

a) 4 and 5 only

b) 1, 3, 4 and 5 only

c) 1, 2 3 and 4 only

d) 1, 2, 3, 4 and 5

 

Q.18) CORPAT is a maritime exercise between India and

a) Indonesia

b) Malaysia

c) Japan

d) Singapore

 

Q.19) Which of the following statements is correct about the new series of WPI index?

a) The base year has been revised to 2014-15

b) The weight of primary items has increased to 64.2 per cent

c) The number of items covered in the new series has decreased to 657

d) The weight of fuel and power has decreased to 13.1 per cent

 

Q.20) Pneumonia in children may be caused by

1. Bacteria
2. Fungi
3. Virus

Select the correct answer using the codes given below.

a) 2 and 3 only

b) 1 and 3 only

c) 1 and 2 only

d) 1, 2 and 3

 

Q.21) Which of the following Indian Cities have been selected under the global mobility programme, ‘Mobilise Your City’ ?

a) Chandigarh, Jabalpur and Pune

b) Ambala, Hyderabad, and Shillong

c) Ahmedabad, Kochi and Nagpur

d) Gauhati, Jhansi and Nellore

 

Q.22) Read the following paragraph carefully:

“On December 13, 1931, he set sail on the French ship, Amboise, on a voyage that would take him to the Soviet Union and other countries in Europe. Heralding his Soviet tour, he published a part translation of The Communist Manifesto. Soon after his arrival, he made the mandatory visit to the Lenin Mausoleum in Red Square. He visited the Baku oilfields in Azerbaijan, Sukhumi in Abkhazia, and Tbilisi in Georgia.”

Identify the nationalist referred to in the above paragraph.

a) Tiruppur Kumaran

b) Vanchinathan

c) V.O. Chidambaram Pillai

d) Erode Venkatappa Ramasamy

 

Q.23) Kalamkari painting refers to

a) a hand-painted cotton textile in South India

b) a handmade drawing on bamboo handicrafts in North-East India

c) a block-painted woolen cloth in Western Himalayan region of India

d) a hand-painted decorative silk cloth in North-Western India

 

Q.24) p and q are natural numbers such that sum of their cubes is 1729. Then which of the following statements is/are correct?

1. p×q is even
2. p+q odd

Select the correct alternative using the codes given below.

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

 

Q.25) Sum of all three digit natural numbers, which are divisible by 11, is

a) 44550

b) 44450

c) 43550

d) 43450

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Get the solutions here- Click2download

Note4Students

Marital Rape has been in news recently because Modi government has filed an affidavit in the Supreme Court arguing against criminalizing marital rape. A number of op-eds have been written over this issue in past few Months. Also, this topic is linked to GS 1 Social issues and GS 2 Vulnerable sections. Therefore, CD considers this topic important for mains 2017.

Context

The Narendra Modi government has filed an affidavit in the Supreme Court arguing against criminalizing marital rape. According to Government Doing so would “destabilize the institution of marriage, apart from being an easy tool for harassing husbands

 

What is marital rape?

Marital rape (also known as spousal rape and rape in marriage) is non-consensual sex in which the perpetrator is the victim’s spouse. It is a form of partner rape, Domestic violence and sexual violence.

Current status of marital rape in India

1. Our legal system doesn’t provide any concrete protection to the victims of marital rape. Under Hindu marriage act, 1955 one of the “conjugal duties” of the wife is to provide sexual satisfaction to her husband, a very archaic thought congruent to the thoughts of a patriarchal society. Section 375 of the Indian Penal Code(IPC) considers forced sex in marriages as a crime only when the wife is below 15 or the couple is legally separated. Thus, marital rape is not a criminal offense under the IPC.
2. Marital rape victims have to take recourse to the Protection of Women from Domestic Violence Act 2005(PWDVA).The PWDVA, which came into force in 2006, outlaws marital rape. However, it offers only a civil remedy for the offence.

 

Arguments in favour of criminalizing marital rape

1. Sheer Number: Out of the total number of rapes reported to NFHS (though it is an informal survey whose premise was to provide anonymity), 97.7% rapes were committed by the people known to the victim, out of which marital rapes accounts for 2/3rd.Thus the sheer  intensity  of marital rape suggests that it should be criminalized.
2. Mental Trauma: There have been many heartrending stories of women raped every night, even during pregnancy and child birth. It is a physical as well as mental trauma because the perpetrator is known to the person, often very close.
3. Violation of Fundamental right: Marital rape is considered as the violation of Fundamental Right guaranteed under Article 14 of the Indian constitution which guarantees the equal protection of laws to all persons.
4. By depriving married women of an effective penal remedy against forced sexual intercourse, it violates their right to privacy and bodily integrity, aspects of the right to life and personal liberty under Article 21, by differentiating them from unmarried women.
5. Marital privacy – which justifies laws such as the marital rape exception – is a fundamental denial of society’s commitment to treating all persons with equal concern and respect.
6. After making high pitch for the government flagship Beti Bachao beti padao, we want our ‘Beti’ to not have a right on her own body. If marital rape has been committed, wife is a rape survivor and she has same rights like any other rape survivor.
7. International Example: Many countries have made it a crime for a husband to force his wife to have sex in recent years. Malaysia changed its laws to that effect in 2007; Turkey in 2005; and Bolivia in 2013. The United States began criminalizing marital rape in 1970s and most European countries in the 1990s. The United Nations has also recommended India to criminalize marital rape. Though we try to emulate US in many areas to prove ourselves as progressive, doesn’t this law provide the opportunity for the same
8.  Even the Law Commission’s report (2000) and Justice Verma panel’s (2013) recommended to do away with the exemption granted to marital rape in the laws.

 

Arguments against Criminalization ?

1. Subjective: It is very subjective and intricate to determine whether consent was acquired or not. Sometimes women use denying intercourse even if she is comfortable with, as a tool for punishment or getting their demands fulfilled.
2.  Prone to Misuse: If marital rape is criminalized without adequate safeguards it could be misused like the current dowry law by the dissatisfied wives to harass and   torture their Husbands.
3. Marriage is the holy institution and application of such laws will wither away its basic fabric as it will lead the investigation to the intricate relationship between the couple.
4. Burden on Judiciary: Will increase the burden of judiciary which otherwise may serve other more important causes
5. Potentially miniscule Law: This law will more likely to be a passive and potentially minuscule law. Since less educated and rural women are not likely to use it and the other strata of women can be said to empowered enough to say no for this kind of acts of their rapist husband’s. 
6. Cannot be applied to India: The concept of marital rape, as understood internationally, cannot be suitably applied in the Indian context due to various factors like level of education/illiteracy, poverty, myriad social customs and values, religious beliefs, mindset of the society to treat the marriage as a sacrament, etc.
7. U.S.A did criminalize marital rapes in 1970’s, most European countries have done so, countries such as Bolivia and Turkey, being the latest entrants to this list. It is a weak argument that just because so and so country have done it, so should we. Going by this logic, Netherlands has legalized prostitution and marijuana, then, so should we.

 

Conclusion

1. Sexual consent is the right of every woman, married or unmarried, as much as of men, and nonconsensual sex should be treated exactly the same, irrespective of the relationship of the perpetrator to the victim. Adequate safeguards however need to be included in the law which limits the opportunities for misusing this law like the dowry law. Just because the law can be misused does not mean that we should evade from our responsibility. However just legal reform is not sufficient as along with legal reform we also need social reform so that this menace could be eradicated from our society.  It is the progressive social consciousness which is need of the hour.

 

 

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Note4students

It is important due to its applications in many fields(as given below).

Basics of the ‘Big Data’

Big data is a term for data sets that are so large or complex that traditional data processing application software is inadequate to deal with them. Big data challenges include capturing data, data storage, data analysis, search, sharing, transfer, visualization, querying, updating and information privacy.

The data could be from social networks, web server logs, traffic flow sensors, satellite imagery, broadcast audio streams, banking transactions, MP3s of rock music, the content of web pages, scans of government documents, GPS trails, telemetry from automobiles, financial market data and so on.

It answers specific questions such as the need of the customers, their opinion and image of the brand

For organisations, analysis of this hidden data may give an insight into things which were previously hidden due to its bulk and the subsequent cost required for its process. This is done by collecting, organizing and analysing large sets of data to discover patterns and other useful information.

For instance, analysis of shoppers’ transactions, social and geographical data gives the analyst knowledge about peer influence on customers, greatly reducing the time that would otherwise require for sampling followed by extensive investigations.

It also enables new products and services, by combining a large number of signals from a user’s actions and those of their friends, Facebook has been able to craft a highly personalized user experience and create a new kind of advertising business.

With the right big data analytics platforms an enterprise can boost sales, increase efficiency, and improve operations, customer service and risk management.

One of the fundamental reasons for opposition of Big Data is centered on privacy since massive amounts of personal data is collected and analysed without a consideration to the person in question.

The large volume of information being collected may be used by finance companies to personalise various schemes for maximisation of their benefits thereby leading to indiscrimination against a certain group of people.

Applications based on ‘Big Data’ Technology

Seed Selection – Big-data businesses can analyse varieties of seeds across numerous fields, soil types, and climates and select the best.

Crop disease – Similar to the way in which Google can identify flu outbreaks based on where web searches are originating, analysing crops across farms helps identify diseases that could ruin a potential harvest.

Irrigation – Precision agriculture aids farmers in tailored and effective water management, helping in production, improving economic efficiency and minimising waste and environmental impact.

Weather – Advanced analytics capabilities and agri-robotics such as aerial imagery, sensors help provide sophisticated local weather forecasts can help increasing global agricultural productivity over the next few decades.

Climate change –  Since, climate change and extreme weather events will demand proactive measures to adapt or develop resiliency, Big Data can bring in the right information to take informed decisions.

Food processing – They help in streamlining food processing value chains by finding the core determinants of process performance, and taking action to continually improve the accuracy, quality and yield of production. They also optimise production schedules based on supplier, customer, machine availability and cost constraints.

Loss control – In India, every year 21 million tons of wheat is lost, primarily due to scare cold-storage centres and refrigerated vehicles, poor transportation facilities and unreliable electricity supply. Big Data has the potential of systematisation of demand forecasting thus reducing such losses.

Pricing – A trading platform for agricultural commodities that links small-scale producers to retailers and bulk purchasers via mobile phone messaging can help send up-to-date market prices via an app or SMS and connect farmers with buyers, offering collective bargaining opportunities for small and marginal farmers.

How can it be a Challenge?

The challenges and opportunities of data is immense in a country like India with 638,000 villages and 130 million with 140 million hectares of cultivable land under 127 agro climatic regions capable of supporting 3,000 different crops and one million varieties.

Self-driven vehicles can already drive themselves across fields using Global Positioning System (GPS) signals accurate to less than inch of error thus helping farmers plant more accurately.

But the real potential is what happens when this data from thousands of tractors on thousands of farms is collected, grouped and analysed in real time.

There is need to formulate a business model wherein value can be captured from the scale of data being captured by different players in the agri-supply chain.

Companies must act now to focus, simplify and standardise big data through an enterprise-wide data management strategy.

Question

Q.) The age of Big Data, the growing pervasiveness of Aadhaar, and the government’s push towards a cashless and digital economy has led to a re-emergence of interest in privacy and data protection in India. In your opinion, what are the key elements that should drive the design of a privacy law (when it is actually enacted), or laws that have an impact on privacy? Discuss.

 

 

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Note4students

It has recently became a hot topic of discussion due to a famous debate between Elon Musk and Mark Zuckerberg.

What is Artificial Intelligence?

1. Artificial intelligence is the branch of computer science concerned with making computers behave like humans. The term was coined in 1956 by John McCarthy at the Massachusetts Institute of Technology.

2. Artificial Intelligence is the area of computer science focussing on creating machines that can engage on behavior that human consider intelligent.

3. It is the study of ways in which machines can be made to have sufficient creative reasoning power to perform mental task at which, at prevent, human beings are better.

4. Examples of problem that falls under the area of Artificial Intelligence include common sense tasks, such as understanding of language, recognising scenes, finding a way to reach an object that is far overhead etc.

5. In addition Artificial Intelligence includes expert tasks, such as diagnosing diseases, designing computer system and planning scientific expedition.

Where can we use Artificial Intelligence?

1. Games playing: programming computers to play games against human opponents.

2. Expert systems: programming computers to make decisions in real-life situations (for example, some expert systems help doctors diagnose diseases based on symptoms).

3. Natural language: programming computers to understand natural human languages.

4. Neural networks: Systems that simulate intelligence by attempting to reproduce the types of physical connections that occur in animal brains.

5. Robotics: programming computers to see and hear and react to other sensory stimuli.

Approaches:

1. Neural Network: This is bottom up approach. It basically aims at mimicking the structure & functioning of the human brain, to create intelligent behaviour. Researchers are attempting to build a silicon based electronic network that is modeled on the working & form of human brain.

2. Expert System: This is top down approach. Instead of starting at the base level of neurons, followers of the expert system are designing intelligent machines by taking advantage of the phenomenal computational power of the modern computer that can solve problem by deductive logic.

 

Application of AI

They combine precision & computational powers with pure logic, to solve problems & reduce error in operation therefore are used in every field of human endeavor.

1. Heavy Industries & Space: Through AI an entire manufacturing process can be made totally automated, controlled & maintained by computer system in car manufacturing machine tool production, computer chip production. etc. They carry out dangerous tasks like handling hazardous radioactive materials.

2. Finance: Banks use intelligent software application to screen & analyse financial data. Software that can predicts trends in stock market have been created which have been known to beat humans in predictive power.

3. Computer Science: Researchers in quest of AI have created spin offs like dynamic programming, object oriented programming, symbolic programming, intelligent storage management system etc.

4. Aviation: Air lines use expert system in planes to monitor atmospheric condition & system status.

5. Weather Forecast: Neural Network is used for predicting weather condition. Previous data are fed to a neural network which learns the pattern & uses that knowledge to predict weather pattern.

Question

Q.)Discuss critically various opinions  expressed against Artificial Intelligence by scientists, philosophers and technology leaders.

 

Note4Students/Syllabus Mapping: GS3

The Economic Survey 2015-16 for the first time highlighted the weakening balance sheets of public sector banks and that of some large corporate houses as one of the most critical short-term challenges for the Indian economy and an impediment to economic recovery. Terming it as ‘Twin balance sheet challenge’, it is clear that the TBS problem is the major impediment to private investment, and thereby to a full-fledged economic recovery. Undoubtedly, this makes it a hot topic for 2017 CSE Mains in the context of Indian economic challenges that need immediate attention.

 

What is this Twin Balance Sheet Problem?

The twin balance sheet problem refers to the ballooning of debt on the books of corporate entities and the estimated Rs10 trillion of stressed assets that have piled up at banks because of the inability of borrowers to repay.

Thus, TBS is two-fold problems for Indian economy which deals with:

1. Overleveraged companies – Debt accumulation on companies is very high and thus they are unable to pay interest payments on loans. Note: 40% of corporate debt is owed by companies who are not earning enough to pay back their interest payments. In technical terms, this means that they have an interest coverage ratio less than 1.
2. Bad-loan-encumbered-banks – Non Performing Assets (NPA) of the banks is 9% for the total banking system of India. It is as high as 12.1% for Public Sector Banks contributing to four-fifths of the total NPAs. As companies fail to pay back principal or interest, banks are also in trouble.

 

Concerns  around this TBS issue

Corporate Sector	Banking Sector
Gross capital formation by the private sector has come down sharply over the past three years. The Gross Fixed Capital Formation has declined from 34% in 2011-12 to 27% in 2016-17 which indicates stalled investments in the economy.	More than four-fifths of the non-performing assets are in the public sector banks, where the NPA ratio had reached almost 12 percent.
 The corporate investment is in the doldrums right now. New data from the Centre for Monitoring Indian Economy shows that new project proposals in the June quarter were at their lowest level in three years.	At its current level, India’s NPA ratio is higher than any other major emerging market (with the exception of Russia), higher even than the peak levels seen in Korea during the East Asian crisis.
New data from the Centre for Monitoring Indian Economy shows that new project proposals in the June quarter were at their lowest level in three years.   40 percent of the corporate debt it monitored did not earn enough to pay the interest obligations on their loans.	 The capital adequacy ratio of six banks is likely to fall below 9% in a severe macro stress scenario, dragging the system-level ratio down to 11.2% by March 2018 from 13.3% as of March 2017.
 While corporate debts are rising, the economic survey noted that their profits are low and the situation is forcing the firms to cut investment and preserve their cash flow.	 The latest edition of the regulator’s Financial Stability Report (FSR), released on Friday, said a severe credit shock is likely to impact capital adequacy and profitability of a significant number of banks.
	At least 13 of these banks accounting for approximately 40 per cent of total loans are severely stressed

 

What are the reasons for this issue?

1. The origins of the NPA problem dates back to the decision taken during the mid-2000s.
2. During this period for the first time in the country’s history, everything was going right: corporate profitability was amongst the highest in the world, encouraging firms to hire labor aggressively, which in turn sent wages soaring.
3. Firms made plans accordingly. They launched new projects worth lakhs of crores, particularly in infrastructure-related areas such as power generation, steel, and telecoms, setting off the biggest investment boom in the country’s history.
4. Within the span of four short years, the investment-GDP ratio had soared by 11 percentage points, reaching over 38 percent by 2007-08.
5. This time saw extraordinary increase in the debt of non-financial corporations.

Work in Progress- yet visible shortcomings!!

RBI has deployed several mechanisms to deal with the stressed asset problems, of these mechanisms that are particularly notable. Success of schemes, however, has been limited. There are several reasons why progress has been so limited:

Poor Loss recognition: – The Asset Quality Review (AQR) was meant to force banks to recognize the true state of their balance sheets but banks kept on ever greening loans.

Coordination Issues: – The RBI has encouraged creditors to come together in Joint Lenders Forums, where decisions can be taken by 75 percent of creditors by value and 60 percent by number. But reaching agreement in these Forums has proved difficult, because different banks have different degrees of credit exposure, capital cushions, and incentives.

Lack of Proper incentives: – The S4A scheme recognizes that large debt reductions will be needed to restore viability in many cases. But public sector bankers are reluctant to grant write-downs, because there are no rewards for doing so. To address this problem, the Bank Board Bureau (BBB) has created an Oversight Committee which can vet and certify write-down proposals.

Massive Capital Constraints: –The government has promised under the Indradhanush scheme to infuse Rs 70,000 crores of capital into the public sector banks by 2018-19. But this is far from sufficient.

IBC in nascent stage: The new bankruptcy system is not yet fully in place, and even when it is, the new procedures (and participants) will need to be tested first on smaller cases.

Severe viability issues: – At this point, large write-offs will be required to restore viability to the large IC1 companies (those companies whose earnings do not even cover their interest obligations).

Lack of teeth in private Asset Reconstruction Companies (ARCs)

Many ARCs have been created, but they have solved only a small portion of the problem, buying up only about 5 percent of total NPAs. The problem is that ARCs have found it difficult to recover much from the debtors. Thus they have only been able to offer low prices to banks, prices which banks have found it difficult to accept.

Strategic Debt Restructuring (SDR) scheme

Under this creditors could take over firms that were unable to pay and sell them to new owners. Only those projects that have started commercial production can take advantage of this scheme

Sustainable Structuring of Stressed Assets (S4A)

Under this, creditors could provide firms with debt reductions up to 50 percent in order to restore their financial viability. Unlike CDR, S4A does not allow the banks to offer any moratorium on debt repayment; they are also not allowed to extend the repayment schedule or reduce the interest rate.

Way forward:

1. TBS problem can be resolved by taking a four step path that involves – recognition, recapitalization, resolution and reform.
2. First, there needs to be a readiness to confront the losses that have already occurred in the banking system, and accept the political consequences of dealing with the problem.
3. Second, the PARA needs to follow commercial rather than political principles. To achieve this, it would need to be an independent agency, staffed by banking professionals. It would also need a clear mandate of maximizing recoveries within a specified, reasonably short time period.
4. The third issue is pricing. If loans are transferred at inflated prices, banks would be transferring losses to the Rehabilitation Agency. As a result, private sector banks could not be allowed to participate – and then co-ordination issues would remain – while private capital would not want to invest in the Agency, since PARA would make losses.
5. A rekindled optimism on structural reforms in the Indian economy, along with implementation of GST and diligent implementation of Bankruptcy Code will play supporting pillars.

Conclusion:

The twin balance sheet problem is a serious drag on credit growth. The setting up of a centrally-assisted rehabilitation agency will help in taking difficult decisions which the public sector banks are unable to take. The past mechanisms of resolving this problem in the form of decentralized approach have failed. There is no point of delaying this problem because the delay is very costly for the economy as impaired banks are scaling back their credit while the stressed companies are cutting their investments. Time is opportune to create a centralized agency called Public Sector Asset Rehabilitation Agency (PARA) akin to that of East Asia adopted during their crises period. The centralized agency in the form of PARA would allow debt problems to be worked out quickly as highlighted in this year’s Economic Survey.

 

Note4Students/Syllabus Mapping: GS2

Amid allegations of EVM tampering in the recently concluded state polls and by-polls in 5 states of Punjab, Manipur, UP, Goa, and Uttarakhand have reignited the controversies and raised questions on the fairness of elections in our democracy. Some have demanded revert to ballot paper system and others for wide scale investment in VVPATs. In this article we discuss the various aspects around this issue and how VVPATs can be a solution to a transparent electoral process. Electoral reforms have always been a favourite topic of UPSC and undoubtedly VVPAT analysis in this context makes it a potential question in this year CSE Mains 2017.

 

What are the ensuing issues?

1. In the recent episode of state assembly elections many political parties have raised questions on vulnerability of EVMs and allege result fixing and whether EVMs are tamper-proof?
2. In the back drop of the media reports that a VVPAT machine showed discrepancies during a demonstration exercise in Madhya Pradesh’s Bhind, concerns are rife about whether EVMs are a reliable medium for fair and transparent elections in the country. Further questions are being raised if people are casting their votes or machines itself deciding it?
3. Most of the advanced democracies like USA, Germany and Japan continue to rely on paper ballots.
4. Cross checking and auditing is not feasible, unless equipped with VVPATs.

 

Introduction:

In the wake of the above controversy the Election Commission intends to use voter-verified paper audit trail (VVPAT) in all coming elections to bring in more transparency and boosting the confidence of people in the electoral process. ECI has sent multiple reminders to the Central government to release adequate funds for manufacture of VVPATs.

 

What is VVPAT?

1. VVPAT is a slip generated in a printer-like a machine attached to EVM and flashes voter’s choice of candidate and party. Generated slip is shown for a few seconds to the voter to cross check before it falls into a sealed drop box which can be opened during counting.
2. VVPATs are a second line of verification and are particularly useful in the time when allegations around Electronic Voting Machines’ tampering crop up.
3. After voting, the VVPAT machine dispenses a paper slip with the name, serial number and symbol of the candidate voted for.

 

Advantage VVPAT:

1. The Voter Verified Paper Audit Trail is a method that provides feedback to voters.
2. It is an independent verification printer machine and is attached to electronic voting machines.
3. It allows voters to verify if their vote has gone to the intended candidate.
4. Under VVPATs, initially, election results are announced based on the recording of votes given by EVMs. If the election results are disputed, then the votes recorded under Paper Trail System shall be counted and announced.
5. If there is any discrepancy between the two results, then the result given by VVPAT will prevail over the EVMs.

Working procedure of EVM’s equipped with Voter-verified paper audit trail

1. VVPAT device functions like a printer to be attached to the ballot unit.
2. Once the vote is cast it dispenses a paper slip showing the symbol on which it is cast.
3. The voter can only see this slip through a screened window.
4. After seven seconds, the slip automatically gets cut and falls into a sealed drop box.
5. The machines can be accessed, though, by the polling officials and not by the voter.
6. The printout is deposited in a box and can be used to resolve any dispute regarding the election.

 

Flipside Arguments: Election Commission’s response to allegations

1. ECI said that EVMs can neither be reprogrammed nor controlled by the external device. The source
   code is so designed that it allows the voter to cast the vote only once. The next vote can be
   recorded only after the Presiding Officer enables the ballot on the Control Unit. In between, the
   machine becomes dead to any signal from outside.
2. The Election Commission said that the comparison between EVMs in India and abroad, where they have
   failed, are both misplaced and misguided. This is because most of the systems used in other
   countries are PC based and running on the operating system. Hence they are vulnerable to hacking.
3. But EVMs in India are the standalone machine without being part of any input. The software in the
   chip is one time programmable and is burnt into the chip at the time of manufacture. Nothing
   can be written on the chip after manufacture. Thus there is a fundamental difference between
   EVMs in India and abroad.

Way forward:

1. The Supreme Court has supported the ECI’s endeavor to use VVPATs in a phased manner to usher in more transparency in voting.
2. The recent cabinet decision to release funds of Rs 3173 crores for 1.6 million Voter verifiable paper audit trail (VVPAT) units attached electronic voting machines (EVMs), is a positive step in line with ECI’s strategy for the 2019 next general election.
3. Two public sector units —Electronic Corp. of India Ltd (ECIL) and Bharat Electronics Ltd (BEL) have been approached for manufacture of those VVPATs.

Conclusion:

A free and fair election is the key requirement for sustaining the faith in the democratic ethos and thus, all such allegations on the integrity of EVMs shall be put to test by the ECI with active involvement of political parties. The increased usage of VVPATs attached EVMs are a major step in strengthening democracy as directed by the Supreme Court. It should be followed up with other electoral reforms like Right to rejection, transparency in political parties and their election finances, disqualifying criminals from contesting elections on filing of charge sheets etc as recommended by various law commissions. Political parties should come together irrespective of their positions and decide upon these electoral issues in order to further strengthen the largest democracy in world.

Note4Students

Malaria is a major public health problem in India but is preventable and curable. Malaria interventions are highly cost-effective and demonstrate one of the highest returns on investment in public health. The National Framework for Malaria Elimination (NFME) outlines India’s strategy for elimination of the disease by 2030. It’s important to its objectives, various provisions, challenges and way forward.

Introduction

1. 1. Disease burden due to malaria in India has been reduced significantly over the years with an overall decline in malaria–related morbidity and mortality. This has been made possible by a series of interventions such as the introduction of artemisinin-based combination therapy (ACT), malaria rapid diagnostic tests (RDTs) ,revision of the National Drug Policy for malaria in 2013 etc. However, a number of challenges have emerged in recent years which pose a threat to the country’s progress in its fight against malaria. These include the development of antimalarial drug resistance and insecticide resistance, development of malaria multi-drug resistance including ACT resistance in neighbouring countries, emergence of malaria in urban areas, existence of high endemic malaria pockets in hard-to-reach areas and in tribal populations, climate change and increased tourism and migration.

 

• In order to address these challenges, a national strategy for malaria elimination has been envisaged prompting the development of the National Framework for Malaria Elimination in India 2016–2030.

 

Vision

1. Eliminate malaria nationally and contribute to improved health, quality of life and alleviation of poverty.

Goals

1. Eliminate malaria (zero indigenous cases) throughout the entire country by 2030; and
2. Maintain malaria–free status in areas where malaria transmission has been interrupted and prevent re-introduction of malaria.

Objectives

The Framework has four objectives:

1. Eliminate malaria from all 26 low (Category 1) and moderate (Category 2) transmission states/union territories (UTs) by 2022;
2. Reduce the incidence of malaria to less than 1 case per 1000 population per year in all states and UTs and their districts by 2024;
3. Interrupt indigenous transmission of malaria throughout the entire country, including all high transmission states and union territories (UTs) (Category 3) by 2027; and
4. Prevent the re-establishment of local transmission of malaria in areas where it has been eliminated and maintain national malaria-free status by 2030 and beyond

Key strategic approach

1. Programme phasing considering the varying malaria endemicity in the country
2. Classification of States/UTs based on API as primary criterion (Category 0: Prevention of re- introduction phase; Category 1: Elimination phase; Category 2: Pre-elimination phase; Category 3: Intensified control phase)
3. District as the unit of planning and implementation
4. Focus on high endemic areas
5. Special strategy for P. vivax elimination.

Short term milestones

1. By end of 2016, all states/UTs are expected to include malaria elimination in their broader health policies and planning framework
2. By end of 2017, all states are expected to bring down API to less than 1 per thousand population
3. By end of 2020, 15 states/UTs under category 1 (elimination phase) are expected to interrupt transmission of malaria and achieve zero indigenous cases and deaths due to malaria.

Challenges

• Population movements, often uncontrolled across states/UTs, and sharing of large international borders with neighbouring malaria endemic countries
• Shortage of skilled human resources

 

1. Insecticide resistance: The extensive use of insecticides, particularly DDT, under the vector control programme controlled malaria to a great extent but exerted high selection pressure on the vector population to develop resistance.
2. Access to conflict-affected tribal areas and to areas with a high malaria endemicity is a problem
3. High endemicity states include those in the Northeast, which share borders with neighbouring countries like Bangladesh, where the prevalence of malaria is high.
4. Neglect of malaria and unreliable data:
   • There is no reliable data to know how many people suffer from this disease annually as estimates do not take into account the 60-80% patients in the urban area who gets treatment from private hospitals
5. Although malaria is made as a notifiable disease, penalties are not imposed on doctors and hospitals if they are not notifying.

Way forward

1. With the availability of medicines and diagnostic kits, the delivery mechanism has to be streamlined to enable access to them.
2. Overburdened staffs tend to underperform. So, more community health workers and supporting staffs need to be appointed and trained to function effectively.
3. Budgetary allocation for the programme in specific and overall health care in general has to be increased.
4. Secure and sustain adequate financial resources for implementing the elimination programme through domestic funding.
5. Additionally, innovative financing models, partnerships and integration with other government departments has to be explored.
6. Also, steps have to be taken to create awareness among the people so as to ensure their active participation.
7. Lastly, there is a need for community mobilization and sustenance of efforts to make this program successful.

Questions

1. Discuss the objectives and provisions of National Strategic Plan for Malaria Elimination
2. How should India address the rising challenge of Malaria?

Note4Students

Government of India has sought to effectively prohibit cattle slaughter across the country through rules made under the Prevention of Cruelty to Animals Act, 1960.It came under heavy criticism that it is constitutional misadventure on multiple grounds involving fundamental rights, separation of powers and federalism. It is important to know the new rules and the issues involved in it.

Introduction

The prime focus of the regulation is to protect the animals from cruelty and not to regulate the existing trade in cattle for slaughter houses. It is envisaged that welfare of cattle dealt in the market will be ensured and that only healthy animals are traded for agriculture purposes for the benefits of the farmers. The notified rules will remove the scope of illegal sale and smuggling of the cattle which is a major concern. The specific provisions apply only to animals which are bought and sold in the notified live stock markets and animals that are seized as case properties.

 

Why such a rule?

Environment Ministry has issued a clarification that the notification is issued on the basis of the Supreme Court order in the case of Gauri Maulekhi versus Union of India and others.

Rules

1. It allows only farmland owners to trade at animal markets. Both seller and buyer will have to produce identity and farmland ownership documents.
2. After buying a cow, a trader must make five copies of proof of sale and submit them at the local revenue office, the local veterinary doctor in the district of the purchaser, animal market committee, apart from one each for seller and buyer
3. The cattles bought cannot be resold within six months
4. District Animal Market Monitoring Committee be set up in each which will be headed by a Magistrate, for regulation of animal markets in the district.
5. It also mandates the AMC to ensure that the buyer of cattle does not further sell the animals for slaughter.
6. The local authority is then directed to make a list of animal markets functional prior to the commencement of the rules.
7. It bans setting of animal markets within 50 km of an international border and 25 km of a state border.
8. Taking animal outside the State will require special approval of the State Government nominee.
9. The Rules go on to prohibit several practices as “cruel and harmful”. These include
   1. Animal identification methods such as hot branding and cold branding;
   2. Shearing and painting of horns, bishoping in horses and ear cutting in buffaloes;
   3. Casting animals on hard ground without adequate bedding;
   4. Use of any chemicals or colors on body parts of animals.
10. The person in charge of an animal has been fixed with the responsibility to ensure that the animal is not caused injury or unnecessary pain or suffering.
11. They also make it mandatory for veterinary inspector to certify proper loading and unloading of animals to ensure they are not cramped inside trucks. The inspector can proceed to mark any animal unfit for sale.

Criticism

1. The new regulation such as, cattle bought cannot be resold for six months will hurt the business of cattle traders
2. It introduced a lot of paperwork for cattle traders who are predominantly illiterate and poor.
3. It provides too much discretion on the hand of veterinary inspector. He has to certify proper loading and unloading of animals. He can also mark any animal unfit for sale.
4. Traders are of the view that this definition of animal markets makes it very difficult for them to procure animals.
5. The industry fears that it will lead to huge losses as most of the cattle trade for slaughter takes place through animal markets.
6. The new rules will make it difficult for farmers to dispose their spent cattle as traders usually buy buffaloes from farmers in cattle markets and then transport them to slaughterhouses.
7. The ban has hurt mostly Muslim meat and leather traders who face mounting violence by cow vigilante groups.
8. Farmers have also been deprived of a traditional source of income from selling non-milch and ageing cattle.
9. Only state governments were empowered to make laws on cattle markets and fairs, which rendered the new rules arbitrary, illegal and unconstitutional.
10. It is argued that the rules were violative of the fundamental right to carry on trade and the Prevention of Cruelty to Animals (PCA) Act of 1960, under which the rules were notified, itself does not ban cattle slaughter

Conclusion

1. The Centre must address the concerns of the trade as well as of those who suspect the notification is a part of a Machiavellian plot to influence and curb food choices. 
2. While there is a case to retain most of the rules prohibiting the cruel treatment of animals, the ban on the sale of cattle for slaughter in animal markets must go.

Questions

1. “The proposed ban on the sale and purchase of cattle for slaughter at agricultural markets violates fundamental rights of food and livelihood, and the spirit of federalism.” Critically comment
2. “Govt has banned the sale, purchase of cattle from animal markets for slaughter by notifying a stringent rule under Prevention of Cruelty to Animals Act.” Examine the issues involved.