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Digital Personal Data Protection Bill: Need A Pre-legislative Consultation
Central Idea
- The Ministry of Electronics and Information Technology has drafted a Digital Personal Data Protection (DPDP) Bill. A data protection law must safeguard and balance peoples’ right to privacy and their right to information, which are fundamental rights flowing from the Constitution. Unfortunately, this Bill fails on both counts.
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Why do we need data protection?
- Increasing internet use: India currently has over 750 million Internet users, with the number only expected to increase in the future.
- Data breaches: At the same time, India has among the highest data breaches in the world. Without a data protection law in place, the data of millions of Indians continue to be at risk of being exploited, sold, and misused without their consent.
- Individual privacy: Data monetization may happen at cost of individual privacy. The most sought-after datasets are those that contain sensitive personal data of individuals, ex. medical history, and financial data.
- Lack of writ proceedings against corporate action: Unlike state action, corporate action or misconduct is not subject to writ proceedings in India. This is because fundamental rights are, by and large, not enforceable against private non-state entities. This leaves individuals with limited remedies against private.
DPDP Bill, 2022 is based on seven principles
According to an explanatory note for the bill, it is based on seven principles-
- Lawful use: The first is that “usage of personal data by organisations must be done in a manner that is lawful, fair to the individuals concerned and transparent to individuals.”
- Purposeful dissemination: The second principle states that personal data must only be used for the purposes for which it was collected.
- Data minimisation: Bare minimum and only necessary data should be collected to fulfill a purpose.
- Data accuracy: At the point of collection. There should not be any duplication.
- Duration of storage: The fifth principle talks of how personal data that is collected cannot be “stored perpetually by default,” and storage should be limited to a fixed duration.
- Authorized collection and processing: There should be reasonable safeguards to ensure there is “no unauthorised collection or processing of personal data.”
- Accountability of users: The person who decides the purpose and means of the processing of personal data should be accountable for such processing.
Why the Bill must be put through a process of rigorous pre-legislative consultation?
- Dilutes the provisions of the Right to Information (RTI) Act: The Bill seeks to dilute the provisions of the Right to Information (RTI) Act, which has empowered citizens to access information and hold governments accountable. It is behind the cloak of secrecy that the rights of individuals are most frequently abrogated, and corruption thrives.
- Fails to safeguard right to privacy: Proposed Bill creates wide discretionary powers for the Central government and thus fails to safeguard people’s right to privacy.
- For instance: Under Section 18, it empowers the Central government to exempt any government, or even private sector entities, from the provisions of the Bill by merely issuing a notification.
- The Bill does not ensure autonomy of the Data Protection Board: Given that the government is the biggest data repository, it was imperative that the oversight body set up under the law be adequately independent to act on violations of the law by government entities. The Bill does not ensure autonomy of the Data Protection Board, the institution responsible for enforcement of provisions of the law.
- Government direct control over the Data Protection Board: The Central government is empowered to determine the strength and composition of the Board and the process of selection and removal of its chairperson and other members.
- Serious apprehensions of its misuse by the executive: The Central government is also empowered to assign the Board any functions under the provisions of this Act or under any other law.
- Going digital by design fails to those who do not have meaningful access: The Bill stipulates that the Data Protection Board shall be ‘digital by design’, including receipt and disposal of complaints. As per the latest National Family Health Survey, only 33% of women in India have ever used the Internet. The DPDP Bill, therefore, effectively fails millions of people who do not have meaningful access to the Internet.
Conclusion
- The government has been given the power to exempt not only government agencies but any entity that is collecting user data, from having to comply with the provisions of this bill when it is signed into law.
Mains question
Q. It is behind the cloak of secrecy that the rights of individuals are most frequently abrogated, and corruption thrives. Discuss.
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[Burning Issue] Shiv Sena Party Symbol Conundrum
Context
- The Election Commission of India (ECI) has recognized the Eknath Shinde group as the official “Shiv Sena”, allowing them to use the official “Bow & Arrow” symbol and “Shiv Sena” name.
- The Uddhav Thackeray faction has been allowed to use the name “Shiv Sena (Uddhav Balasaheb Thackeray)” and the symbol of the “flaming torch” for the upcoming bye-elections in the Maharashtra assembly.
- In this context, this edition of the burning issue will elaborate on the topic of allotment of elections symbols, EC’s role and overall party politics in India. The topic is important for the upcoming Prelims as well as Mains Examination.
What are party election symbols?
- An election symbol is a standardized symbol allocated to a political party. They are used by the parties during their campaigning and are shown on Electronic Voting Machines (EVMs), where the voter chooses the symbol and votes for the associated party.
- They were introduced to facilitate voting by illiterate people, who can’t read the name of the party while casting their votes.
How does the Election Commission decide on party symbol disputes?
- In the 1960s, the Government of India proposed that the regulation, reservation and allotment of electoral symbols should be done through a law of Parliament, i.e., Symbols Order.
- In a response to this proposal, the Election Commission of India (ECI) stated that the recognition of political parties is supervised by the provisions of the Election Symbols (Reservation and Allotment) Order, 1968 and so will the allotment of symbols. In 1968, the Election Commission promulgated this order.
- Symbols order has provisions regarding the registration and recognition of political parties as state and national parties.
- Under Paragraph 15 of the Order, it can decide disputes among rival groups or sections of a recognized political party staking claim to its name and symbol.
- As per the guidelines, when a recognized political party splits, the Election Commission decides on assigning the symbol by evaluating the support enjoyed by a claimant in both organizational and legislative wings. within the political party.
- Where it is not possible to decide which group has a majority, the EC may freeze the party’s symbol and allow the groups to register with new names.
- Additionally, the Supreme Court in the Sadiq Ali case (1972) formulated three tests for deciding on party symbol disputes. In this case, only one test proved conclusive.
3 tests formulated by the Supreme Court
Following are the three tests and their application as per which the ECI made its decision–
Test of Aims and Objects of the Party Constitution
- Regarding this test, the ECI found that the test could not yield an effective outcome as both sides claimed adherence to the aims and objectives of the party. Therefore, ECI held–
“The application of this test will render an inconclusive answer for the purpose of adjudicating the present dispute.”
Test of Party Constitution
- While applying this test, the commission found that the party constitution on which the respondent (Uddhav Thackeray faction) was placing strong reliance was undemocratic. Further, the complete list of office bearers of various bodies was not provided to the commission, whenever elections were held or appointments were made. As per the commission –
“Any reliance on the test of party constitution for determining the present dispute case would be undemocratic and catalytic in spreading such practices across parties.”
Test of Majority
- The election commission of India found that the majority test was in favor of the petitioner (Eknath Shinde faction). The commission found that the majority test outcome in the legislative wing reflected the qualitative superiority of the majority test in favor of the Shinde faction.
Bigger Picture: Democratic Deficit in Political Parties
- Several of the political parties in India have witnessed factionalism in the recent past some examples being Janata Dal (United), Samajwadi Party, Indian National Congress etc. highlighting the issue of democratic deficit in political parties.
- In its order, the ECI highlighted the importance of internal party democracy. It stated–
“The requirement for a written constitution of political parties and an undertaking to the effect that such Constitution adheres to the norms of democracy prescribed in the Constitution of India is meant to promote inner party democracy.”
Other Issues with Political Parties in India
- Lack of proper organisation: Another feature of the Indian party system is its lack of structure. Political parties live and die by their organization.
- Groupism inside India’s party structure: In India, groupism is a major problem for every political party. This shatters a party’s cohesiveness, causing it to split into several factions. Ex. INC, NCP, TMC.
- Extra-constitutional ways of gaining power: Political parties do not hesitate to utilize uncertain measures to gain political power in addition to legitimate means. Ex. Resort Politics
- Populist tendencies: In India, it is well-noticed that political parties turn to populist politics to gain power. They take unfair advantage of people’s emotions and compulsions, promote populist slogans, and mislead the public. Ex. Temple reconstruction movements
- Lack of discipline among party members: It has been observed that members of various political parties are unconcerned about party discipline, preferring instead to sling dirt at one another. Ex. Undue political statements
- Communal characteristics: The people of India are influenced by caste and religion, and they have a strong sense of allegiance to their caste and religion.
- Criminalization of politics: Leaders are valued for their capacity to attract crowds and raise funds as elections become more and more expensive.
How to attain Internal Democracy within parties?
- Internal elections: It shall be the duty of the political party to take appropriate steps to ensure the holding of elections at all levels. The political party shall hold elections in an unpartisan way by their ‘karyakartas’.
- Strengthening Anti-defection Law: The Anti-Defection Act of 1985 requires the party legislators to act according to the party whip which is decided by the diktats of the highest party leadership. One way to democratize political parties is to promote intra-party dissent.
- Limited reservations: Seats can be reserved for women and members of the backward community including minorities.
- Empowering ECI: The ECI shall be competent to inquire into allegations of non-compliance with any of the provisions requiring elections.
- Social audit and penal provisions: ECI should have the penal power to deregister a party until free and fair elections in the party are conducted.
- Encouraging a new generation of leaders: For a long, there is a widespread impression created that a lot of good people shy away from politics. It is, therefore, necessary that this impression be changed and efficient people brought into the political arena.
Way forward
- The 170th report of the Law Commission of India on the reform of electoral laws dedicated an entire chapter to the necessity of providing laws relating to internal democracy within parties.
- It observed that a political party that does not respect democratic principles in its internal working cannot be expected to respect those principles in the governance of the country.
- The National Commission for Review of Working of Constitution states that there should be comprehensive legislation regulating the registration and functioning of political parties or alliances of parties in India.
Conclusion
- The top leaders of the political parties need to introspect and allow for democratic decision-making in the party’s affair’s thus paving the way for intra-party democracy.
- Such a step would strengthen the Party Culture in India, thus improving the Political ethics and overall Politics in India.
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India plans to export Solar Power
Central idea: The article states that the Ministry for New and Renewable Energy is working towards increasing the production of solar modules in the country, with the goal of making India a net exporter of solar modules by 2026.
How can India be a net exporter of solar energy?
- Increased manufacturing of PV modules: By 2026, Indian industry will be able to manufacture solar modules worth 100 gigawatts (GW) annually, and help the country be a net exporter of solar power.
- Increased installation capacity: This would significantly aid India’s target of installing 500 GW of electricity capacity from non-fossil sources by 2030.
Issues with solar power sector
Ans. Reduced capacity
- Slow pace: India had planned to install 175 GW of renewable energy by December 2022, including 100 GW of solar power, but has only achieved 122 GW, with solar power accounting for only 62 GW.
- Huge cost: A key bottleneck has been the cost of solar modules (or panels).
- Regressive import duties: While India has traditionally relied on China-made components such as poly-silicon wafers, necessary to make modules, higher customs duty on them has shrunk supply. This was done to make equivalent India-manufactured components more competitive.
Motive behind export promotion
- Surplus generation: India need about 30-40 GW for our domestic purposes annually and the rest can be used for export.
- Manufacturing boost: PLI scheme for polysilicone manufacturing is in place are designed to encourage the manufacturers of ingots and wafers in India.
What obstructs solar power growth in India?
Ans. Land crunch
- Apart from module prices, land acquisition has been a major challenge for solar power manufacturers.
- Despite the Centre commissioning 57 large solar parks worth 40 GW in recent years, only 10 GW have been operationalized.
- Installing a megawatt of solar power requires on average four acres of land. So various developers face challenges in acquiring it and that’s one reason for the delay.
Various initiatives for solar energy in India
- International Solar Alliance (ISA): India, along with France, launched the ISA in 2015, a global platform to promote the use of solar energy.
- Solar Parks: The government has set up Solar Parks to provide land and infrastructure to developers for the installation of solar power projects.
- Rooftop Solar Program: The government has launched a rooftop solar program to promote the installation of solar panels on rooftops of residential and commercial buildings.
- Incentives and subsidies: The government has provided various incentives and subsidies to promote the adoption of solar energy, including tax exemptions, accelerated depreciation, and subsidies for capital costs.
Way forward
India has significant potential to become a major exporter of solar power. Here are some steps that can be taken to promote solar power export by India:
- Increase domestic production: To promote solar power export, India needs to increase domestic production of solar panels and equipment. This can be achieved by providing incentives and subsidies to domestic manufacturers, reducing import duties on raw materials, and investing in research and development.
- Focus on quality: Indian manufacturers need to focus on producing high-quality solar panels and equipment that can compete with products from other countries. The government can establish quality standards and certification programs to ensure that Indian-made products meet international quality standards.
- Develop infrastructure: India needs to develop a robust infrastructure to support the export of solar power, including transportation, storage, and transmission facilities. The government can provide support for the development of this infrastructure, such as funding and regulatory support.
- Partner with other countries: India can partner with other countries to promote the export of solar power. The International Solar Alliance, of which India is a founding member, can play a key role in this regard.
- Expand market access: India needs to expand market access for its solar power products by signing trade agreements with other countries and participating in international exhibitions and events. The government can also provide support for Indian companies to participate in trade fairs and exhibitions abroad.
By implementing these measures, India can promote the export of solar power and become a key player in the global solar energy market.
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Centre in final stages of notifying Emissions Trading Scheme
After the passing of the Energy Conservation (Amendment) Bill last December, the Centre is now in the final stages of notifying an Emissions Trading Scheme (ETS).
Emissions Trading Scheme (ETS)
- India does not currently have a national Emissions Trading Scheme (ETS). However, there have been some efforts to introduce an ETS in the country.
- In 2018, the Ministry of Environment, Forest and Climate Change (MoEFCC) released a draft of the National Clean Air Programme (NCAP).
- It proposed the introduction of a market-based mechanism for reducing air pollution for the first time.
- The mechanism was not explicitly called an ETS, but it was described as a “cap-and-trade system.”
Successful example of Carbon Market: EU’s emissions trading system (ETS)
- Under the EU’s ETS launched in 2005, member countries set a cap or limit for emissions in different sectors, such as power, oil, manufacturing, agriculture, and waste management.
- This cap is determined as per the climate targets of countries and is lowered successively to reduce emissions.
- Entities in this sector are issued annual allowances or permits by governments equal to the emissions they can generate.
- If companies produce emissions beyond the capped amount, they have to purchase additional permit, either through official auctions or from companies.
- This makes up the ‘trade’ part of cap-and-trade.
How is carbon price determined?
- The market price of carbon gets determined by market forces when purchasers and sellers trade in emissions allowances.
- Notably, companies can also save up excess permits to use later.
- Through this kind of carbon trading, companies can decide if it is more cost-efficient to employ clean energy technologies or to purchase additional allowances.
- These markets may promote the reduction of energy use and encourage the shift to cleaner fuels.
Other such examples
- China launched the world’s largest ETS in 2021, estimated to cover around one-seventh of the global carbon emissions from the burning of fossil fuels.
- Markets also operate or are under development in North America, Australia, Japan, South Korea, Switzerland, and New Zealand.
Significance of Carbon Market
- The World Bank estimates that trading in carbon credits could reduce the cost of implementing NDCs by more than half — by as much as $250 billion by 2030.
- Last year, the value of global markets for tradable carbon allowances or permits grew by 164% to a record 760 billion euros ($851 billion).
- The EU’s ETS contributed the most to this increase, accounting for 90% of the global value at 683 billion euros.
- As for voluntary carbon markets, their current global value is comparatively smaller at $2 billion.
What is the progress at UN?
- The UN international carbon market envisioned in Article 6 of the Paris Agreement is yet to kick off as multilateral discussions are still underway about how the inter-country carbon market will function.
- Under the proposed market, countries would be able to offset their emissions by buying credits generated by greenhouse gas-reducing projects in other countries.
- In the past, developing countries, particularly India, China and Brazil, gained significantly from a similar carbon market under the Clean Development Mechanism (CDM) of the Kyoto Protocol, 1997.
- India registered 1,703 projects under the CDM which is the second highest in the world.
- But with the 2015 Paris Agreement, the global scenario changed as even developing countries had to set emission reduction targets.
India’s efforts
The new Bill empowers the Centre to specify a carbon credits trading scheme.
- Issuance of credit certificates: Under the Bill, the central government or an authorised agency will issue carbon credit certificates to companies or even individuals registered and compliant with the scheme.
- Tradable carbon credits: These carbon credit certificates will be tradeable in nature. Other persons would be able to buy carbon credit certificates on a voluntary basis.
Existing mechanisms
- Notably, two types of tradeable certificates are already issued in India-
- Renewable Energy Certificates (RECs) and
- Energy Savings Certificates (ESCs)
- These are issued when companies use renewable energy or save energy, which are also activities which reduce carbon emissions.
Lacunas of the bill
- No clear mechanism: The Bill does not provide clarity on the mechanism to be used for the trading of carbon credit certificates— whether it will be like the cap-and-trade schemes or use another method— and who will regulate such trading.
- Confusion over nodal agency: The right ministry to bring in a scheme of this nature, pointing out that while carbon market schemes in other jurisdictions like the US, UK are framed by their environment ministries, the Indian Bill was tabled by the power ministry instead of the MoEFCC.
- Ambiguity over existing certificates: The Bill does not specify whether certificates under already existing schemes would also be interchangeable with carbon credit certificates and tradeable for reducing carbon emissions.
- Overlapping: The question, thus, is whether all these certificates could be exchanged with each other. There are concerns about whether overlapping schemes may dilute the overall impact of carbon trading.
Challenges to carbon markets
- Double counting: of greenhouse gas reductions
- Quality and authenticity: These parameters of climate projects that generate credits to poor market transparency
- Greenwashing: Companies may buy credits, simply offsetting carbon footprints instead of reducing their overall emissions or investing in clean technologies.
- Inefficiency: The IMF points out that including high emission-generating sectors under trading schemes to offset their emissions by buying allowances may immensely increase emissions on net.
Way forward
- Alignment with NDCs: The UNDP emphasizes that for carbon markets to be successful, emission reductions and removals must be real and aligned with the country’s NDCs.
- Transparent financing: It says that there must be “transparency in the institutional and financial infrastructure for carbon market transactions”.
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Telangana’s Teja Chilli is hot property in many nations
The burgeoning demand for the popular Teja variety of red chilli, famous for its culinary, medicinal and other wide-ranging uses, in the export market is proving to be a boon for the Telangana Agriculture Market.
Teja Chilli
- Teja or S17 is one of the hottest varieties of red chillies produced in India. (GI tag not accorded yet.)
- The chilli is known and liked across the country for its fierce hot flavor and rich aroma.
- Southern India is the main region of Teja or S17 red chilli production.
- It has a capsaicin content of 0.50-0.70% making it more pungent and spicy.
- The huge demand for Oleoresin, a natural chilli extract, is mainly driving the export of Teja variety to various spice processing industries in several Asian countries.
Where it is produced?
- Khammam district is the largest producer of Teja variety of red chilli.
- It is the leading exporter of the pungent fruit.
- The Mudigonda-based Oleoresin extraction firm of a Chinese company is engaged in export of the by product to its clients.
Trade significance of this chilli
- Teja variety of red chilli is being exported to China, Bangladesh and a few other south Asian countries from Khammam mainly through the Chennai port.
- The export of Teja variety of red chilli is expected to grow from the present ₹2000 crore per annum to ₹2500 crore next year.
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APJ Abdul Kalam SLV: India’s 1st Hybrid Rocket launched
India’s first hybrid sounding rocket by private players was launched by some students from Pattipulam village off Tamil Nadu coast.
About APJ Abdul Kalam SLV
- Martin Foundation in association with Dr APJ Abdul Kalam International Foundation and Space Zone India successfully completed the project known as Dr APJ Abdul Kalam Satellite Launch Vehicle Mission 2023.
- The student team included 200 from the fishermen community in Tamil Nadu and Pondicherry, 100 students from tribal communities across India, and 60 from Tamil Nadu.
What is a Hybrid Rocket?
- A hybrid rocket is a type of rocket engine that combines features of both liquid-fueled and solid-fueled rockets. In a hybrid rocket, a solid fuel is burned in combination with a liquid or gaseous oxidizer to produce thrust.
- The solid fuel in a hybrid rocket is typically made of a polymer, such as hydroxyl-terminated polybutadiene (HTPB), which is cast into a cylindrical shape and placed inside the rocket motor.
- The oxidizer, which is typically nitrous oxide (N2O), is stored in a separate tank and fed into the combustion chamber of the rocket motor.
How does it work?
- When the oxidizer is introduced into the combustion chamber, it reacts with the solid fuel, producing a hot gas that is expelled through a nozzle at the end of the rocket.
- The combustion process can be controlled by adjusting the flow rate of the oxidizer, making hybrid rockets more controllable than solid rockets.
Benefits offered over conventional rockets
- Hybrid rockets are generally simpler and less expensive to manufacture than liquid rockets, while providing more control than solid rockets.
- They are also safer than both liquid and solid rockets, since the fuel and oxidizer are stored separately and can be easily shut off in case of an emergency.
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Cooling Earth with Moon Dust
The article introduces the idea of using Moon dust to cool the Earth and explores the feasibility and potential risks associated with the proposal.
Moonlight cooling of Earth
- The idea of using lunar dust to cool the Earth’s temperature is based on a natural phenomenon called “moonlight cooling.”
- When the Moon’s surface reflects the sun’s rays, it cools down rapidly after sunset.
- Scientists believe that a thin layer of lunar dust could be used to create a similar effect on the Earth’s surface.
- The proposal suggests launching a spacecraft to the Moon to collect dust particles, which would then be transported to the Earth’s atmosphere and released.
Feasibility of the move
- This is not a new idea. In fact, it has been proposed before as a way to combat global warming, and several studies have been conducted to explore its feasibility.
- One study published in the journal Earth’s Future estimated that the technique could reduce the Earth’s temperature by 1.5 degrees Celsius, which is a significant amount in the context of climate change.
Risks and Drawbacks
- Health concerns: The dust could harm the environment or respiratory health if it is not properly controlled.
- Threats to aviation: The particles are abrasive and could damage aircraft engines or other machinery if they were to fall to the ground.
- Feasibility and cost: Collecting enough dust to make a significant impact on the Earth’s temperature would require a significant investment of resources, including launching multiple spacecraft to the Moon.
Frankenstein’s Monster Analogy
- The article draws a comparison between the proposed use of moon dust and the story of Frankenstein’s monster, in which a scientist creates a monster that ultimately causes destruction and chaos.
- The analogy suggests that the use of moon dust could have unintended consequences that are difficult to predict, and that such large-scale climate interventions should be approached with caution.
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Disqualification of Sitting MP: The Conundrum
Central Idea
- The instance where the Kerala High Court, in January this year, suspended the verdict passed by the Kavaratti District and Sessions Court (in an attempt to murder case) in which the then sitting Member of Parliament (MP) of Lakshadweep was sentenced to 10 years in jail. The issue is on whether disqualification for conviction is final or whether it can be revoked. This issue can arise whenever a legislator is disqualified.
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The background: Facts are as follows
- The facts are as follows. Mr. Faizal The then sitting MP of Lakshadweep was convicted by the Kavaratti sessions court on January 11 for attempt to murder, and sentenced to 10 years imprisonment.
- On January 13, the Lok Sabha announced that he was disqualified as an MP with effect from the date of conviction.
- On January 18, the Election Commission of India (ECI) fixed February 27 as the date for by-election to that constituency, with the formal notification to be issued on January 31.
- Faizal appealed to the Kerala High Court for a stay on his conviction and sentence, which the High Court suspended on January 25.
- The High Court suspended Faizal Faizal’s conviction due to the cost of a parliamentary election and the disruption of developmental activities in Lakshadweep.
- Faizal challenged the ECI’s announcement in the Supreme Court of India. On January 30, the ECI said it was deferring the election.
The specific provisions
- The provision for disqualification is given in Article 102 of the Constitution: It specifies that a person shall be disqualified for contesting elections and being a Member of Parliament under certain conditions. These include holding an office of profit, being of unsound mind or insolvent, or not being a citizen of India. It also authorises Parliament to make law determining conditions of disqualifications.
- The Representation of the People Act (RPA), 1951: The RPA provides that a person will be disqualified if convicted and sentenced to imprisonment for two years or more. The person is disqualified for the period of imprisonment and a further six years.
- Exception for the sitting members: There is an exception for sitting members; they have been provided a period of three months from the date of conviction to appeal; the disqualification will not be applicable until the appeal is decided.
A case of differential treatment of candidates
- Challenges under Article 14 of the constitution: The differential treatment of candidates for elections and sitting members was challenged under Article 14 (right to equality).
- Prabhakaran vs P. Jayarajan: A Constitution Bench of the Supreme Court, in 2005 (K. Prabhakaran vs P. Jayarajan), decided that the consequences of disqualifying a contestant and a sitting member were different.
- Reasoning behind treating differently: The strength of the party in the legislature would change, and could have an adverse impact if a government had a thin majority. It would also trigger a by-election. Therefore, it was reasonable to treat the two categories differently.
- Lily Thomas vs Union of India: In 2013, a two-judge Bench of the Supreme Court again considered whether this exception was constitutionally invalid (Lily Thomas vs Union of India). It stated that Article 102 empowers Parliament to make law regarding disqualification of a person for being chosen as, and for being, a member of either House of Parliament.
- Exception for sitting members was unconstitutional: The judgment stated that making an exception for sitting members was against the constitution. As per Article 101, if a Member of Parliament is disqualified under Article 102, their seat will become vacant immediately. This means that if the conditions outlined in Article 102 are met, the disqualification will take effect automatically and immediately.
What is the confusion?
- In Navjot Singh Sidhu case, Supreme Court stayed his conviction: Navjot Singh Sidhu, an MP, was convicted and sentenced to three years imprisonment. He resigned from his seat but wanted to contest the election and appealed for a stay on his conviction. In 2007, the Supreme Court stayed his conviction, which removed the disqualification until the appeal was decided, allowing him to contest the election.
- Question arises In Kerala case: The Lakshadweep seat was declared vacant, but the Election Commission of India (ECI) announced deferring the by-election after a stay order was granted. The Lok Sabha has kept the seat vacant and has not reinstated the MP. The question is whether the disqualification can be backdated, as if it never happened, and the election avoided. Or, whether the disqualification is removed only from the date of the stay order, and the vacated seat can be filled only through a by-election.
- Conundrum and Implications: The conundrum arises because the Lily Thomas judgment requires the seat to be vacated immediately upon disqualification, whereas the Kerala High Court stay aims to keep the MP in the seat until the appeal is decided. The answer to this issue will have implications for similar cases in the future.
Conclusion
- As India continues to strengthen its democratic system, one important issue that needs resolution is determining the correct answer for when a disqualification is removed for a sitting member of parliament who has been granted a stay on their conviction. The conflicting court judgments and constitutional provisions only highlight the need for a clear and definitive resolution to this issue, which will undoubtedly enhance the credibility and legitimacy of the Indian political system.
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Debating the Abolition of Judicial Vacations
Central Idea
- The longstanding tradition of judicial vacations in India has come under scrutiny as a parliamentary committee.
- Recent remarks by Chief Justice DY Chandrachud reignited discussions on the allocation of vacation days to Indian judges, shedding light on the intricate dynamics of judicial work patterns and the rationale behind vacation allotments.
Vacation in Judiciary
- Judicial Workdays: The Supreme Court has 193 working days annually, High Courts function around 210 days, and trial courts operate for 245 days. High Courts possess the authority to structure their calendars as per service rules.
- Long-standing Practice: The practice of vacations, particularly the extensive 7-week (formerly 10-week) summer recess, has its origins in colonial times.
Understanding Vacation Benches
- Composition and Role: The CJI appoints a Vacation Bench, a specialized court that operates during the Supreme Court’s summer and winter breaks. Although the court is not fully closed during vacations, this bench handles cases deemed “urgent matters.”
- Urgent Cases: While there is no explicit definition for “urgent matters,” the Vacation Bench typically entertains writs associated with habeas corpus, certiorari, prohibition, and quo warranto, all related to enforcing fundamental rights.
- Rule 6 of Order II of the Supreme Court Rules, 2013: Under this rule, the CJI nominates Division Benches for urgent miscellaneous and regular hearing matters during the summer vacation period. The rule allows for the appointment of judges to hear urgent cases individually or in a Division Court.
Historical Significance and Notable Cases:
- Impactful Decisions: Vacation Benches have delivered significant judgments in the past. A well-known instance is when a Vacation Bench Judge refused PM Indira Gandhi’s plea to stay an Allahabad High Court decision in 1975, which led to the Emergency declaration.
- Triple Talaq Case: In 2017, a Vacation Bench of the Supreme Court heard the triple talaq case during vacation days.
Debates and Arguments Surrounding Vacation Benches
[A] Arguments in Favor:
- Judicial Rejuvenation: Advocates emphasize the need for vacation periods to provide judges with mental and physical rejuvenation.
- Extended Work Hours: Considering the demanding nature of judicial work, proponents assert that the long working hours necessitate periodic breaks.
- Writing Judgments: Judges use vacation time to draft judgments, contributing to the timely disposal of cases.
[B] Arguments Against:
- Pendency and Delays: Critics argue that the extended and frequent vacations exacerbate the backlog of cases and contribute to the slow pace of justice delivery.
- Inconvenience to Litigants: For litigants, vacations translate to additional delays in case hearings.
Calls for Reform
- Malimath Committee (2000): The committee proposed reducing vacation periods by 21 days, advocating for the Supreme Court to operate for 206 days and High Courts for 231 days annually.
- Law Commission of India (2009): The commission recommended curtailing vacations by 10-15 days and extending court working hours to address the substantial backlog of cases.
- Supreme Court’s 2014 Rule Change: The Supreme Court truncated the summer vacation period from 10 weeks to seven weeks.
- RM Lodha Commission (2014): It suggested that individual judges should take leave at different times throughout the year instead of having all judges on vacation at once.
Proposed Approach and Suggested Changes
- Continuous Operation: The 133rd committee supports the notion that individual judges should take their leave at different intervals, thereby ensuring that the courts remain open throughout the year.
- Redefined Judicial Vacations: The parliamentary report calls for a reevaluation of the traditional concept of vacations, advocating for a more modern and efficient approach to court operation.
- Comparison with Other Countries: The report suggests that the vacation practices of the Supreme Court and High Courts should be reviewed in comparison to other countries’ higher courts and constitutional institutions.
Conclusion
- The debate surrounding the abolition of judicial vacations in India emphasizes the necessity for a dynamic and effective approach to court operations.
- While the tradition has historical significance, the current judicial landscape calls for a re-evaluation of practices to ensure efficient functioning, address the backlog of cases, and minimize inconveniences to litigants.
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Agriculture: An Inclusive Model of Madhya Pradesh
Central Idea
- India is today a $3.5 trillion economy. As per the IMF forecast, If the current growth trend continues, the country is likely to be a $5.4 trillion economy by 2027. No wonder, Prime Minister Narendra Modi has termed the next 25 years, when India completes 100 years of Independence, as Amrit Kaal. There are lessons from Madhya Pradesh’s agriculture model for inclusive sustainable growth.
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India’s Growth trajectory
- India seems to be on the right path and is doing pretty well especially when compared to its progress in the first six decades after 1947.
- As per IMF, it took India almost 59 years since Independence to become a $0.95 trillion economy in 2006. But then it became a $2.3 trillion economy by 2016 it added $1.35 trillion in 10 years.
- In 2022, it became a $3.5 trillion economy by adding $1.2 trillion in just six years. If India stays this course, the country could rise to a $25 to $30 trillion economy by 2047.
How inclusive is this growth?
- Inclusiveness measurement and performance: Inclusiveness is measured by looking at the record of the laggard states, especially the so-called BIMARU states (Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh), and also the performance of the agricultural sector that engages the largest share of workforce 46.5 per cent in 2020-21.
- Performance of GDP at the state level: The country averaged a GDP growth of 6.7 per cent per annum in this period and its agri GDP growth stood at 3.8 per cent per annum. This is satisfying, though not as outstanding as China’s performance.
- Of all the major states: Gujarat topped the list in overall GDP growth at 8.9 per cent closely followed by Uttarakhand (8.7 per cent), Telangana (8.6 per cent) and Haryana (8 per cent). At the bottom of this list were Jammu and Kashmir (5.2 per cent), Assam (5.4 per cent), West Bengal (5.5 per cent), Uttar Pradesh (5.6 per cent) and Jharkhand (5.7 per cent).
- Madhya Pradesh (MP): MP is the only state whose agriculture contribution to overall GDP has increased to 40 per cent, as against 18.8 percent at the all-India level its model should aptly be described as inclusive and sustainable.
- Jharkhand: Jharkhand has performed exceptionally well in agriculture with a growth rate of 6.4 per cent per annum, largely driven by diversification towards horticulture and livestock.
- Punjab: In contrast, the Green Revolution champion Punjab hasn’t done well. Its Agri-GDP growth was a meagre 2 per cent per annum over this period.
Inclusive and sustainable Model of Madhya Pradesh
- Highest growth rate: Madhya Pradesh has performed very well it has clocked the highest growth rate in agriculture at 7.3 per cent. Its overall GDP growth is a respectable 7.5 per cent.
- Agri-GDP growth is above India Agri-GDP growth: The state’s agri-GDP growth is way above the all India agri-GDP growth and the state is a shining example of doubling the contribution of horticulture in its value of agriculture and allied sector.
- Well-diversified portfolio in agriculture: MP has made its mark as a top-notch player in tomato, garlic, mandarin oranges, pulses especially gram and soyabean cultivation. MP is also the second-largest producer of wheat after UP, and the third-largest milk producer after UP and Rajasthan.
- Doubled irrigation coverage: It is following a well-diversified portfolio in agriculture while doubling irrigation coverage from 24 to 45.3 per cent of its gross cropped area over the last two decades.
Conclusion
- Madhya Pradesh agriculture model suggests that a well-diversified portfolio in crops is behind the high growth in the farm sector. This is inclusive and sustainable and offers a path for other Indian states.
Mains Question
Q. A well-diversified portfolio in crops could be an engine of high growth in India’s farm sector. Discuss. Support your answer with an illustration.
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Organ transplant rules In India: A Significant Step
Central Idea
- The changes to the organ transplant rules announced by the Union health ministry last week, are small, but significant, steps towards giving a new lease of life to many people with failing organs. Despite of performing the third-the greatest number of transplants in the world, only about 0.01 percent of Indians donate their organs after death, according to the World Health Organization.
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What are the changes introduced?
- No age ceiling for organ receivers: With the new changes, patients who are 65 years and older can now register for receiving organs from a deceased donor. Now an individual of any age can register for organ transplant.
- Previously: Previously, the upper age limit for registering patients requiring organs from deceased donors was 65 years, but this ceiling has now been removed.
- No domicile criteria for receivers: Eliminate the domicile criterion for registering to receive organs, so that patients in need can register in any state.
- Previously: Currently, certain states restrict registration for deceased organ donors to only those who are domiciled in the state or give them preference. Organs harvested in one state are first shared with other hospitals within the same state, then in the region and then share nationally on the occasion that no match was found.
- No registration fees: The ministry has also requested that states not impose any fees on patients seeking registration for organ transplantation, as it violates the 2014 Transplantation of Human Organs and Tissues Rules.
- Previously: States such as Maharashtra, Kerala, Gujarat, and Telangana charge between Rs 5,000 and Rs 10,000 to register patients who need an organ replacement. The health ministry has rightly directed these states to stop charging this fee.
Where does India stand?
- Third Highest number of transplants in the world: India conducts the third highest number of transplants in the world every year. Yet barely four per cent of the patients who require a liver, heart or kidney transplant manage to get one.
- Organ transplants has significantly increased over the past decade: According to latest available official data, the number of organ transplants has significantly increased over the past decade. In 2013, there were 4,990 organ transplants, whereas in 2022, there were 15,561 a jump of 211 percent.
- Kidney transplants: Specifically, the number of kidney transplants from living donors increased by approximately 181 percent from 3,495 in 2013 to 9,834 in 2022. The number of kidney transplants from deceased donors increased by approximately 193 percent from 542 in 2013 to 1,589 in 2022.
- Liver transplants: The total number of liver transplants from living donors increased by approximately 350 percent from 658 in 2013 to 2,957 in 2022, and from deceased donors, it increased by approximately 217 percent from 240 in 2013 to 761 in 2022. Deceased donors account for nearly 17 percent of all transplants in India.
- Heart and Lung transplants: The total number of heart transplants increased by approximately 733 percent from 30 in 2013 to 250 in 2022, while lung transplants increased by approximately 500 percent from 23 to 138.
- Government hospitals fall behind: Furthermore, private hospitals lead in organ transplants while numbers in government hospitals remain relatively low, sources said.
Challenges to Organ Donation in India
- Lack of awareness: There is a lack of awareness among the general public about the importance of organ donation, the legal framework governing it, and the procedures involved. This can limit the number of potential donors.
- Cultural beliefs and superstitions: In India, there are several cultural beliefs and superstitions that discourage organ donation. Some people believe that organ donation is against religious beliefs, or that it can impact the soul or afterlife.
- Lack of infrastructure: India faces a shortage of hospitals and medical facilities that are equipped to handle organ transplantation. This can limit the availability of organs for transplantation.
- Regulatory bottlenecks: While the legal framework exists, there is a lack of implementation and enforcement of the law. This can lead to issues such as organ trafficking and black-market activities.
Did you know?
- NOTTO Scientific Dialogue 2023 was organized to bring all the stakeholders under one roof to brainstorm ideas about interventions and best practices in the organ and tissue transplant field that can be taken up for saving lives.
What is National Organ and Tissue Transplant Organization (NOTTO)?
- NOTTO is a national level organization set up under Directorate General of Health Services, Ministry of Health and Family Welfare, Government of India.
- It has following two divisions:
- National Human Organ and Tissue Removal and Storage Network: It functions as apex Centre for All India activities of coordination and networking for procurement and distribution of Organs and Tissues and registry of Organs and Tissues Donation and Transplantation in the country
- National Biomaterial Centre: The main thrust & objective of establishing the centre is to fill up the gap between ‘Demand’ and ‘Supply’ as well as ‘Quality Assurance’ in the availability of various tissues. The centre will take care of the Tissue allografts such as Bone and bone products, Skin graft, Cornea and Heart valves and vessel.
Conclusion
- The percentages are very likely to go up once the changes in the rules announced last week take effect. The organ shortage problem is, however, a complex one, that continues to confound planners, even in nations whose healthcare systems are far better equipped than that of India’s. There is a need to expand the number of institutions where surgeries and transplants are undertaken. A uniform policy, will help patients in seeking transplant from deceased donors at any hospital in the country, giving them a lot of flexibility.
Mains Question
Q. Despite of performing the third-the greatest number of transplants in the world, only about 0.01 percent of Indians donate their organs after death. Discuss the recent changes in the rules of transplantation suggested by Union Health Ministry.
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![[Sansad TV] Diplomatic Dispatch: Operation Dost & India’s role as First Responder](https://d18x2uyjeekruj.cloudfront.net/wp-content/uploads/2022/12/sansad.jpg)
[Sansad TV] Diplomatic Dispatch: Operation Dost & India’s role as First Responder
In this article, we will discuss Operation Dost and India’s increasing profile as a first responder and net security provider.
Context
- On 6th of February, a massive earthquake struck southern Turkiye and Syria affecting millions of people in the region.
- Immediately on receiving news of this tragedy, Prime Minister Narendra Modi directed that all possible assistance be extended to the affected people.
What is Operation Dost?
- Operation Dost is an ongoing search and rescue operation initiated by India to aid Syria and Turkey, after the 2023 Turkey–Syria earthquake devastated both countries on 6 February 2023.
- The Indian Army prepared its rescue teams with relief materials within 12 hours after disaster struck (much before the Turkish Army was mobilised).
How swiftly did India respond?
- Rescue ops: The NDRF has already flown close to 100 rescue workers along with dog squads to help with efforts, using specialised CSSR (Collapsed Structure Search and Rescue) equipment and techniques.
- Doctors’ dispatch: A military medical contingent has set up a field hospital in Turkiye for a 30-bed facility and specials, x-ray machines, ventilators, generators and ambulances
- Relief material: About 25 Tonnes of relief material, protective gear, clothes, emergency medicines, medical items have already reached, more to follow
- Tech support: India provided Garuda Aerospace’s drones to the most affected areas to identify those trapped under rubble, along with modified Kisan drones carrying medications, food, and supplies.
Central Idea: HADR Diplomacy
- Disaster relief diplomacy, also known as Humanitarian Assistance and Disaster Relief (HADR) diplomacy, refers to a country’s efforts to provide aid and support to other countries affected by natural disasters or conflicts.
- This approach to diplomacy involves a country’s deployment of personnel, resources, and aid to provide assistance to those in need.
- It involves the sharing of expertise, resources, and knowledge to provide relief and support during times of crisis.
Features of HADR Diplomacy
- Multipronged approach: HADR diplomacy is typically a multilateral effort, involving partnerships between multiple countries, international organizations, and local authorities. This approach allows for a coordinated response to a disaster and promotes international cooperation.
- Capacity-building: HADR diplomacy involves building up a country’s capacity to provide assistance during times of crisis. This includes training personnel, acquiring equipment and supplies, and developing disaster response plans.
- Focus on vulnerable populations: HADR diplomacy is often focused on supporting vulnerable populations affected by disasters, such as women, children, the elderly, and those with disabilities.
- Long-term support: HADR diplomacy goes beyond immediate disaster relief efforts and often involves long-term support for affected communities. This can include rebuilding infrastructure, providing healthcare and education, and promoting economic recovery.
- Emphasis on communication and information sharing: HADR diplomacy involves effective communication and information sharing between different agencies, governments, and organizations. This is essential for coordinating a response to a disaster and ensuring that resources are used effectively.
- Respect for local culture and customs: HADR diplomacy involves an understanding and respect for local culture and customs. This helps ensure that relief efforts are culturally appropriate and sensitive to the needs of the affected population.
Why is it used?
- Soft power tool: It is mixed with solidarity and empathy at a time when suffering populations require as much help as possible.
- Building ties: Disaster relief diplomacy can be used to build strong ties between countries and promote international cooperation.
- Responsible global actor: Disaster relief diplomacy can also serve as a means to demonstrate a country’s commitment to global humanitarian efforts and help build its reputation as a responsible global actor.
India and HADR Diplomacy
- India’s humanitarian assistance and disaster relief (HADR) capacities tying into its diplomacy have grown significantly. It began after the 2011 Tsunami.
- The Quad was also conceived out of an initial blueprint to build disaster response systems in the region.
Instances of India sending aid to natural disaster-hit countries
- Maldives: After the 2004 Tsunami, the Indian government announced a composite package worth five crore rupees. Under “Operation Castor”, 50 sorties were undertaken and four aircraft and two Naval ships were engaged in relief operations. Repairing and restoring generators and communication, providing drinking water, and setting up medical camps on ships was also done.
- Sri Lanka: India sent its forces to carry out rescue operations, called “Operation Rainbow”, in Sri Lanka hours after the Tsunami struck the country on December 26, 2004. Not only this, India provided medical assistance to thousands of victims by setting up medical camps in coordination with the local civil and military health authorities. Preventative medication and vaccines were also supplied.
- Myanmar: When cyclone Nargis hit Myanmar in 2008 killing at least 20,000 people, India was among the first countries to send aid to them. It gave 125.5 tonnes of relief material, including medicines, clothing, utensils, water tanks, tents and tarpaulin.
- Japan: The 2011 Tsunami wreaked havoc in Japan. Apart from providing relief materials, India also sent 46 members of the NDRF to search and rescue in the town of Onagawa. It was their first overseas operation. The team included a doctor, three officers, six inspectors, two paramedics and constables and carried 9,000 kg of equipment and food.
- Nepal: In the aftermath of the 2015 Nepal earthquakes, the NDRF deployed 16 of its urban search and rescue (USAR) teams, which comprised more than 700 rescuers in the country. They rescued 11 injured persons and retrieved 133 dead bodies from the rubble. The teams also organised six medical camps and attended to 1,219 persons. Indian authorities sent more than 1,176 tonnes of relief materials to Nepal.
India’s traditional rivalry with Turkiye
Ankara’s long-standing stance on Kashmir and backing Pakistan, especially at the United Nations (UN), pushed some to ask why India was offering aid if Turkiye did not back India’s sovereignty.
Setting differences aside, why is India helping Turkey?
- In the case of India providing earthquake relief to Turkey, there are several factors that likely influenced India’s decision:
- Humanitarian considerations: The primary reason for providing assistance in times of disaster is to help those in need, regardless of political or strategic considerations. The earthquake in Turkey was a humanitarian crisis, and India likely felt compelled to provide assistance to help alleviate the suffering of those affected.
- Diplomatic reset: Disaster relief efforts can also serve as a means of promoting diplomatic relations between countries. By providing aid to Turkey, India may have been seeking to build goodwill and improve its relationship with the country.
- Shared interests: Despite past disagreements and conflicts, India and Turkey share some common history, culture and interests such as economic and strategic ties. Providing aid to Turkey may have been a way for India to demonstrate its commitment to these shared interests.
- International reputation: As a rising global power, India likely sees disaster relief efforts as a means of demonstrating its commitment to global humanitarian efforts and building its international reputation. By providing HADR, India has established itself as a responsible global actor.
- Cultural and people-to-people ties: India and Turkey share cultural and historical ties, with both countries having a rich cultural heritage. Ex. Ankara granting e-visa facilities to Indian tourists and Bollywood films being popular among Turkish masses.
While past conflicts and disagreements may influence international relations, countries often engage in aid and diplomatic efforts with countries they may have had past grievances with for a variety of reasons.
Diplomatically, what did India gain?
- Bilateral ties reset: In this case, India’s assistance to Turkiye comes at a time when ties are still tense- particularly over unwarranted Turkish statements and aids to radicalists in Kashmir.
- Global responder image: Especially in the year of India’s G20 presidency, India’s assistance burnishes its image as a leader of the developing world.
- Military capability on display: This disaster portrayed India’s swift response to rescue operations by mobilizing transporters, field hospitals, and technical teams within hours. It somehow portrays India’s preparedness for War.
- Improves response time: Op dost would help India with future calamities in India or anywhere in the world.
- Economic benefits: India’s HADR diplomacy has also brought economic benefits to the country. By providing aid and support to other countries, India has developed trade and economic relationships, and gained access to new markets and resources.
How can Turkiye benefit from this?
- Preferring India over appeasing Pakistan: It is becoming increasingly obvious that Turkey is getting disenchanted with Pakistan by and by, the most important factor behind its animosity towards India. The number of illegal Pakistanis.
- Battling domestic economic crisis: Turkey, which is undergoing a big economic crisis with historically high inflation of 80 percent, has to be pragmatic, not ideological, so as to win more friends than foes.
- Attracting more Indian tourists: Indians are now the third-largest Asian tourists in Turkey after China and Indonesia. Indian businesses, from food to technology, have been gradually expanding their presence in Turkey.
- Rebuking its ideals of Khilafat: Turkey perhaps realizes now its failure to emerge as the leader a grouping consisting of Pakistan, Malaysia, Iran, and Qatar, in an attempt to break Saudi and UAE’s ideological supremacy within the Islamic world.
- Rebuilding ties with Israel: Turkey re-established diplomatic relations with Israel after more than a decade of tensions that erupted in 2010 when Israeli commandos killed 10 Turkish activists in Gaza. India can help them come closer.
Conclusion
- Providing relief and aid to not just neighboring, but in the extended neighborhood of West Asia bodes well for the kind of diplomacy India is aiming to conduct in the future.
- Public diplomacy, such as HADR capacities, remains one of the most effective tools to build capacities on a people-to-people level, conduct of which needs to be done in a humble way.
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GST Appellate Tribunal gets nod
The GST Council reached a broad consensus on setting up GST Appellate Tribunal; likely to be included in Finance Bill 2023.
What is GST Appellate Tribunal?
- The GST Appellate Tribunal is a quasi-judicial body proposed to be established to resolve disputes related to the Goods and Services Tax (GST) in India.
- It will function as an independent body to hear appeals against orders passed by the GST authorities or the Appellate Authority.
- The tribunal will be composed of a national bench and various regional benches, headed by a chairperson appointed by the central government.
- The proposed tribunal is expected to help expedite the resolution of disputes related to GST and reduce the burden on the judiciary.
Under GST, if a person is not satisfied with the decision passed by any lower court, an appeal can be raised to a higher court, the hierarchy for the same is as follows (from low to high):
- Adjudicating Authority
- Appellate Authority
- Appellate Tribunal
- High Court
- Supreme Court
Why need such Tribunal?
- Unburden judiciary: GST Appellate Tribunal will help resolve the rising number of disputes under the 68-month old indirect tax regime that are now clogging High Courts and other judicial fora.
- Improve efficiency of GST System: Overall, the establishment of the GST Appellate Tribunal is expected to improve the efficiency and effectiveness of the GST system in India.
- Independent mechanism: The proposed Tribunal will provide an independent and efficient mechanism for resolving disputes related to GST.
- Avoid tax evasion: It will help to expedite the resolution of disputes, reduce the burden on the judiciary, and promote greater certainty and predictability in the GST system.
Issues with present litigation
- Compliance issues: The GST system is relatively new in India, having been implemented in 2017, and there have been several issues with compliance and interpretation of rules and regulations.
- Complex adjudication hierarchy: The current dispute resolution mechanism involves multiple layers of adjudication, starting with the GST officer and as mentioned above.
- Time consuming process: This process can be time-consuming, costly, and burdensome for taxpayers, especially small and medium-sized enterprises.
How is it being established?
- The proposed GST Appellate Tribunal is expected to be included in the Finance Bill 2023.
- This means that it will become a part of the central government’s budget, and will have legal standing.
Do you know?
Income Tax Appellate Tribunal (ITAT) was the first Tribunal in India to be created on 25th January, 1941 and is also known as ‘Mother Tribunal’! And it functions under the Ministry of Law and Justice and not the obvious looking Ministry of Finance.
Back2Basics: What is a Finance Bill?
- A Finance Bill is a proposed legislation that is introduced by the government to implement the financial proposals of the Union Budget for the upcoming financial year in India.
- It is a comprehensive document that outlines the government’s revenue and expenditure for the year, including changes in tax laws, tariffs, customs duties, and other fiscal measures.
- Since the Union Budget deals with these things, it is passed as a Finance Bill.
Types of Finance Bills
- There are different kinds of Finance Bills — the most important of them is the Money Bill. The Money Bill is concretely defined in Article 110.
- In India, there are three types of Finance Bills that can be introduced in the Parliament:
- Annual Finance Bill: This is the most common type of Finance Bill and is introduced by the government every year to give effect to the tax proposals announced in the Union Budget. It contains provisions related to taxation, expenditure, and revenue collection for the upcoming financial year.
- Finance Bill (Money Bill): A Money Bill is a type of Finance Bill that contains only provisions related to taxation and expenditure, but does not include any other matter. Money Bills are deemed to be passed by the Lok Sabha, the lower house of Parliament, and do not require approval from the Rajya Sabha, the upper house of Parliament.
- Finance Bill (Non-Money Bill): This type of Finance Bill contains provisions related to taxation and other matters, such as changes in the structure of regulatory bodies or the introduction of new policies. Unlike Money Bills, Non-Money Bills must be passed by both the Lok Sabha and the Rajya Sabha to become law.
How is money bill different from Finance Bill?
- A Money Bill is certified by the Speaker as such — in other words, only those Financial Bills that carry the Speaker’s certification are Money Bills.
- Article 110 states that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:
(a) the imposition, abolition, remission, alteration or regulation of any tax;
(b) the regulation of the borrowing of money or any financial obligations undertaken
(c) the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;
(d) the appropriation of moneys out of the consolidated Fund of India;
(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;
(f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or
(g) any matter incidental to any of the matters specified in sub clause (a) to (f)
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The National Land Monetisation Corporation (NLMC)
The National Land Monetisation Corporation (NLMC) has decided to involve international property consultancy firms to speed up the process of making money by selling or leasing the land owned by the government.
What is NLMC?
- NLMC is a Special Purpose Vehicle (SPV) announced in the Union Budget 2021-22 to carry out monetisation of government and surplus land holdings of public sector undertakings (PSU).
- It falls under the administrative jurisdiction of the Ministry of Finance and is set up with an initial authorised share capital of ₹5,000 crore and a paid-up capital of ₹150 crore.
- It is a firm, fully owned by the government, to carry out the monetisation of government and public sector assets in the form of surplus, unused or underused land assets.
Aims and objectives
- Monetize underutilised or unused land parcels of Central Public Sector Enterprises (CPSEs)
- Facilitate the monetisation of assets belonging to PSUs that have ceased operations or are in line for a strategic disinvestment.
- Transfer of revenue rights: When the government monetises its assets, it essentially means that it is transferring the revenue rights of the asset (could be idle land, infrastructure, PSU) to a private player for a specified period of time.
- Govt as facilitator: In such a transaction, the government gets in return an upfront payment from the private entity, regular share of the revenue generated from the asset, a promise of steady investment into the asset, and the title rights to the monetised asset.
Significant outcomes of land monetization
- Maximum value realization: It will help monetise them in an efficient and professional manner, maximizing the scope of value realisation.
- Speed up the process: The setting of the NLMC will speed up the closure process of the CPSEs and smoothen the strategic disinvestment process.
- Capitalize land assets: It will also enable productive utilisation of these under-utilized assets by setting in motion private sector investments.
- Economic revitalization: It will boost new economic activities such as industrialisation, boosting the local economy by generating employment and generating financial resources for potential economic and social infrastructure.
- Advisory to the govt: Besides managing and monetising, the NLMC will act as an advisory body and support other government entities and CPSEs in identifying their surplus non-core assets.
Need for land monetization
There are different reasons why the government monetizes its assets.
- New sources of revenue: One of them is to create new sources of revenue essential to fulfil the government’s target of achieving a $5 trillion economy.
- Plummeting underutilized assets: Monetisation is also done to unlock the potential of unused or underused assets by involving institutional investors or private players.
- Capital generation: It is also done to generate resources or capital for future asset creation, such as using the money generated from monetisation to create new infrastructure projects.
Possible challenges for NLMC
(1) Volatile market situation
- The performance and productivity of the NLMC will also depend on the government’s performance on its disinvestment targets.
- In FY 2021-22, the government has hardly been able to raise expected amounts through various forms of disinvestment.
(2) Issues with transfer of rights
- The process of asset monetisation does not end when the government transfers revenue rights to private players.
- Identifying profitable revenue streams for the monetised land assets, ensuring adequate investment by the private player and setting up a dispute-resolution mechanism are also important tasks.
(3) Unattractiveness of PPP Model
- Posing as another potential challenge would be the use of Public Private Partnerships (PPPs) as a monetisation model.
- For instance, the results of the Centre’s PPP initiative launched in 2020 for the Railways were not encouraging.
(4) Red tapism
- The success of the initiative will depend on a range of factors, including the availability of suitable land parcels, market demand etc.
- It will be highly dependent upon the ability of the government to execute the transactions efficiently.
Conclusion
- The government’s move to monetize its vast land assets is aimed at reducing the fiscal burden and boosting infrastructure development in the country.
- By bringing in international property consultants to help with the process, the government hopes to improve efficiency and transparency, and maximize the returns on its land assets.
- If successful, the government’s land monetization drive could provide a much-needed boost to the economy and create new opportunities for private investment in the real estate sector.
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How is the Stock Market regulated in India?
The Supreme Court asked the Securities and Exchange Board of India (SEBI) and the government to produce the existing regulatory framework in place to protect investors from stock market volatility.
Central idea
- After short-seller Hindenburg Research published a report accusing the Adani Group of stock market manipulation and accounting fraud, its shares plummeted.
- Investors were reported to have lost lakhs of crores.
Laws governing the Indian Stock Market
- The securities market in India is regulated by four key laws —
- Securities and Exchange Board of India Act, 1992 (SEBI Act)
- Securities Contracts (Regulation) Act, 1956 (SCRA) and
- Depositories Act, 1996
- Companies Act, 2013
- The framing of these laws reflect the evolution and development of the capital market in India.
Brief explanation of each acts-
(1) Securities and Exchange Board of India Act, 1992 (SEBI Act)
(2) Securities Contracts (Regulation) Act, 1956 (SCRA)
- The SCRA empowers SEBI to recognise (and derecognise) stock exchanges, prescribe rules and bye laws for their functioning, and regulate trading, clearing and settlement on stock exchanges.
(3) Depositories Act, 1996
- As part of the development of the securities market, Parliament passed the Depositories Act and SEBI made regulations to enforce the provisions.
- This Act introduced and legitimised the concept of dematerialised securities being held in an electronic form.
- Today almost all the listed securities are held in dematerialised form.
(4) Companies Act, 2013
- It is an Act of the Parliament on Indian company law that regulates incorporation of a company, responsibilities of a company, directors, and dissolution of a company.
- It stipulates the type of Companies that can be formed such as- Public Ltd., Pt. Ltd., One Person Company ex.
Key role-player: SEBI
- SEBI set up the infrastructure for doing this by registering depositories and depository participants.
- The depository regulations empower SEBI to regulate functioning of depositories and depository participants by prescribing eligibility conditions, periodic inspections and powers to impose penalties including suspending or cancelling the registration as well as monetary penalties.
You should know this!
Shares and stocks both represent ownership in a company, but they are not the same thing
- A share is a unit of ownership in a company. It represents a portion of the company’s capital, and the shareholder is entitled to a corresponding portion of the company’s profits or losses.
- A company can issue different types of shares with varying rights, such as voting rights or dividend payments.
- Stock, on the other hand, is a broader term that refers to the total capital raised by a company through the issuance of shares.
- It represents the ownership of a company as a whole, rather than an individual unit of ownership.
- So, shares are a component of stock, and owning shares of a company means owning a portion of the company’s stock. Stock represents the aggregate value of a company and includes all its shares.
Can SEBI step in to curb market volatility?
- No direct meddling: While SEBI does not interfere to prevent market volatility, exchanges have circuit filters — upper and lower — to prevent excessive volatility.
- Issue directions: SEBI can issue directions to those who are associated with the market, and has powers to regulate trading and settlement on stock exchanges. Using these powers, SEBI can direct stock exchanges to stop trading, totally or selectively.
- Instant regulation: It can also prohibit entities or persons from buying, selling or dealing in securities, from raising funds from the market and being associated with intermediaries or listed companies.
What about stock exchanges?
- The SCRA has empowered SEBI to recognise and regulate stock exchanges and later commodity exchanges in India; this was earlier done by the Union government.
- In fact, the term “securities” is defined in the SCRA and powers to declare an instrument as a security remain vested in SEBI.
- The rules and regulations made by SEBI under the SCRA relate to listing of securities like equity shares, the functioning of stock exchanges including control over their management and administration.
- These include powers to determine the manner in which a settlement is done on stock exchanges (and to keep them with the times for e.g. T+1) etc.
- It seeks to protect the interests of investors by creating an Investor Protection Fund for each stock exchange.
Safeguards against fraud
- Fraud undermines regulation and prevents a market from being fair and transparent. To prevent the two key forms of fraud, market manipulation, and insider trading, SEBI notified-
- Prohibition of Fraudulent and Unfair Trade Practices Regulations, 1995
- Prohibition of Insider Trading Regulations, 1992
- These regulations, read with provisions of the SEBI Act, define species of fraud, who is an insider and prohibit such fraudulent activity and provide for penalties including disgorgement of ill-gotten gains.
- It must be noted that violation of these regulations are predicate offences that can lead to a deemed violation of the Prevention of Money Laundering Act.
Do you know?
- SEBI has been given the powers of a civil court to summon persons, seize documents and records, attach bank accounts and property, and to carry out investigations.
- Using these powers, SEBI has acted against entities and individuals like Satyam, Sahara India, Ketan Parekh and Vijay Mallya.
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Underwater noise emissions pose threat to Indian Marine species: Study
Central idea: The rising man-made (anthropogenic) underwater noise emissions (UNE) from ships in the Indian waters are posing a threat to the life of marine mammals like Bottlenose Dolphin, Manatees, Pilot Whale, Seal, and Sperm Whale.
What is Underwater Noise Emissions (UNE)?
- Underwater noise emissions (UNE) refer to sounds that are produced underwater as a result of various human activities such as shipping, oil and gas exploration, military sonar, and construction.
- UNE can have a significant impact on marine life, as many marine animals rely on sound for communication, navigation, and foraging.
- Excessive underwater noise can interfere with these activities, and can even cause physical harm to marine animals in some cases.
- As a result, there is growing concerned about the potential impact of UNE on marine ecosystems, and efforts are being made to better understand and mitigate these impacts.
UNE and marine life
- Impacts behavioural aspects: The main form of energy for multiple behavioural activities of marine mammals, which include mating, communal interaction, feeding, cluster cohesion and foraging, is based on sound.
- Threats posed by UNE: The sound that radiates from ships on a long-term basis affects them and results in internal injuries, loss of hearing ability, change in behavioural responses, masking, and stress.
Key findings about Indian waters
- Continuous shipping movement is identified to be a major contributor to the increase in the global ocean noise level.
- The UNE or underwater sound pressure levels in the Indian waters are 102-115 decibels, relative to one microPascal (dB re 1µ Pa).
- The East Coast level is slightly higher than that of the West, where there is an increase by a significant value of about 20 dB re 1µPa.
- “The frequencies of ships’ underwater self-noise and machinery vibration levels are overlapping the marine species’ communication frequencies in the low-frequency range of less than 500 Hz.
- This is called masking, which could have led to a change in the migration route of the marine species to the shallow regions and also making it difficult for them to go back to the deeper water.
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Diyodar meteorite in 2022 was India’s first Aubrite in 170 years
Central idea: A rare and unique meteorite, known as the Diyodar meteorite, was discovered in Banaskantha, Gujarat in December 2022. It is significant because it is the first aubrite to be found in India in 170 years.
What are Aubrites?
- Aubrites are a type of meteorite that are believed to have formed on a different planet in the early solar system.
- They are known for their unusual mineralogy and composition and are believed to have originated from a differentiated parent body, such as an asteroid or a planetesimal.
- They are primarily composed of a mineral called enstatite, which is a magnesium-rich silicate. They also contain other minerals such as nickel-iron, troilite, and chromite.
- Aubrites are relatively rare, comprising only about 0.1% of all known meteorites.
- They are believed to have formed under highly reducing conditions, with very little oxygen present.
Meteorite found in Diyodar, Gujarat
- The Diyodar meteorite is thought to be around 4.5 billion years old, and it is believed to have originated from the asteroid belt between Mars and Jupiter.
- Its discovery provides scientists with an opportunity to study the composition and structure of these unique meteorites.
- This, in turn, can help researchers to better understand the early solar system and the processes that led to the formation of planets.
Its composition
- Around 90% of the meteorite was composed of orthopyroxene.
- Pyroxenes are silicates consisting of single chains of silica tetrahedra (SiO 4); orthopyroxenes are pyroxenes with a certain structure.
- Pyroxenes such as diopside and jadeite have been used as gems. Spodumene was historically used as lithium ore.
- Rocks with pyroxene have also been used to make a crushed stone that is used in construction.
