ECONOMIC GEOGRAPHY: NATURAL RESOURCES

1. INDIA USED MORE COAL POWER IN 2021 THAN 2020: IEA STUDY

THE CONTEXT: According to a recent analysis from the International Energy Agency (IEA), India used 13 per cent more coal to generate electricity in 2021 than 2020, given the COVID-19 pandemic.

THE EXPLANATION:

• According to Experts, China and India might be some of the countries where the green transition may also be slowed down because Russia would shift their energy exports to them.
• India’s carbon dioxide (CO2) emissions in 2021 soared to 80 megatonnes (Mt) above pre-pandemic levels in 2019, the report found. A slump in the renewable energy sector could partly explain this spike. Growth in this sector slowed to a third of its average rate of the previous five years.
• Also, the report noted that commodity prices are on a high. This has increased the cost of producing solar photovoltaic modules, wind turbines and biofuels.
• Globally, a similar pattern played out in 2021. CO2 emissions rose six per cent to 36.3 billion tonnes last year. Thirty-three per cent of these can be traced back to China.
• CO2 emissions worldwide dropped in the early days of the COVID-19 pandemic as countries announced strict lockdowns to control the spread of the SARS-CoV-2 virus. Emissions globally dropped to 5.4 per cent in 2020, compared to the previous year. The shutdown hurt economies worldwide.

Global patterns

• Global methane levels went up five per cent in 2021, but were still lower than pre-pandemic levels, according to the IEA report. The overall greenhouse gas emissions reached 40.8 gigatonnes of CO2 equivalent in 2021, above the previous all-time high in 2019.
• CO2 emissions from energy combustion and industrial process accounted for close to 89 per cent of energy sector greenhouse gas emissions in 2021. Gas flaring accounted for another 0.7 per cent of CO2 emissions.
• The United States and many European countries switched to coal from gas, adding roughly 250 Mt of CO2 in 2021. The costs of operating existing coal plants were considerably cheaper than that of gas-fired power plants for most of 2021.

 Value Addition:

• Coal is used to meet over 70% of India’s electricity needs. Most of this coal comes from domestic mines. In FY 2020-21, India produced 716 million tonnes of coal, compared with 431 million tonnes a decade ago.
• Most of the country’s coal production is limited to Chhattisgarh, Odisha, Jharkhand and Madhya Pradesh with a total production of over 550 million tonnes, contributing to over 75% of the country’s total coal production.
• The Prime Minister promised to increase non-fossil fuel energy capacity to 500 GW by 2030, meet 50% energy needs from renewable sources and reduce carbon emissions by 1 billion tonnes in a decade.
• According to an estimate by the Centre for Science and Environment, the promise to reduce emissions by 1 billion tonnes means that India would need to reduce its carbon output by 22% by 2030. India now meets about 12% of its electricity needs from renewable sources and increasing it to 50% by 2030 will be difficult.

THE SOCIAL ISSUES AND SOCIAL JUSTICE

2. EXPLAINED: WHAT IS MANUAL SCAVENGING, AND WHY IS IT STILL PREVALENT IN INDIA?

THE CONTEXT: The Mumbai Police arrested three people for hiring three men who died while manually scavenging a septic tank of a public toilet.

THE EXPLANATION:

What is manual scavenging?

Manual scavenging is the practice of removing human excreta by hand from sewers or septic tanks. India banned the practice under the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013 (PEMSR). The Act bans the use of any individual for manually cleaning, carrying, disposing of or otherwise handling in any manner, human excreta till its disposal.

In 2013, the definition of manual scavengers was also broadened to include people employed to clean septic tanks, ditches, or railway tracks. The Act recognizes manual scavenging as a “dehumanizing practice,” and cites a need to “correct the historical injustice and indignity suffered by the manual scavengers.”

Why is manual scavenging still prevalent in India?

The lack of enforcement of the Act and exploitation of unskilled labourers are the reasons why the practice is still prevalent in India. The Mumbai civic body charges anywhere between Rs 20,000 and Rs 30,000 to clean septic tanks. The unskilled labourers, meanwhile, are much cheaper to hire and contractors illegally employ them at a daily wage of Rs 300-500.

According to report, there are 472 deaths due to manual scavenging had been recorded from 2016 to 2020.

Compensation

As per the Prohibition of Employment of Manual Scavengers and their Rehabilitation (PEMSR) Act, 2013 and the Supreme Court’s decision in the Safai Karamchari Andolan v/s Union of India case, a compensation of Rs 10 lakh each was awarded by the High Court to the three women. The Government Resolution is a huge win for safai karamcharis within the state because it acknowledges the role of the State even when deaths occur in private societies. Many deaths recorded are in private societies, where labourers are illegally hired.

Value Addition:

Prohibition of Employment of Manual Scavengers and their Rehabilitation (PEMSR) Act, 2013

• The Act prohibits the employment of manual scavengers, the manual cleaning of sewers and septic tanks without protective equipment, and the construction of insanitary latrines.
• It seeks to rehabilitate manual scavengers and provide for their alternative employment.
• Each local authority, cantonment board and railway authority is responsible for surveying insanitary latrines within its jurisdiction. They shall also construct a number of sanitary community latrines.
• Each occupier of insanitary latrines shall be responsible for converting or demolishing the latrine at his own cost. If he fails to do so, the local authority shall convert the latrine and recover the cost from him.
• The District Magistrate and the local authority shall be the implementing authorities.
• Offences under the Bill shall be cognizable and non-bailable and may be tried summarily.

THE INTERNATIONAL RELATIONS

3. INDIA, CANADA TO REBOOT TRADE-PACT TALKS

THE CONTEXT: According to the Ministry of Commerce and trade, India and Canada have decided to restart talks for a comprehensive economic partnership agreement (CEPA) and will strive to seal an investment-protection agreement.

THE EXPLANATION:

• CEPA negotiations will be formally relaunched, and the two countries will consider an interim agreement or Early Progress Trade Agreement (EPTA) that could be concluded early as a transitional step. India is eyeing market access for its sweet corn, baby corn and bananas in Canada.
• According to Joint statement, the EPTA shall include ‘high level commitments in goods, services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, and dispute settlement, and may also cover any other areas mutually agreed.
• CEPA talks with Canada had got derailed amid the COVID-19 pandemic but were expected to restart after the Canadian elections concluded in September 2021.

Value Addition:

Historical Ties:

• Canada and India have longstanding bilateral relations built upon shared traditions of democracy, pluralism and strong interpersonal connections. Canada is home to one of the largest communities of Indian origin, with approximately 4% of Canadians being of Indian heritage (1.4 million people).
• In 2019, India was the largest source of international students for Canada’s universities, colleges and schools.

Trade relations:

• A priority market for Canada, India is Canada’s 11th largest export market, and 12th largest trading partner overall. Canada’s commercial priorities in India are targeted at India’s policy objectives and sectors where Canada has a comparative advantage.
• Total bilateral trade between the two countries, including goods and services crossed $11 billion. During April 2021-January 2022, Indian exports to Canada increased to $3 billion, up almost by a fourth as compared to 2020.
• Major Indian exports to Canada include drugs and pharmaceutical products, iron & steel products, marine products, cotton fabrics & readymade garments (RMG) and chemicals etc, while key Canadian exports to India comprise pulses, fertilizers, coal and crude petroleum etc.

4. THE BIOLOGICAL WEAPONS CONVENTION (BWC)

THE CONTEXT: India reiterated at UNSC, the need to implement biological and toxin weapons convention in full letter and spirit amid fears of the Russia-Ukraine conflict turning into a bio-chemical war.

THE EXPLANATION:

• The Russian request for the Security Council meeting followed a US rejection of Russian accusations that Ukraine is operating chemical and biological labs with American Support.
• According to Russia’s Ministry of Defence, it has documents confirming that on the territory of Ukraine there was a network of 30 biolabs where “very dangerous
• In this context, India underlined the importance attached by India to the Biological and Toxin Weapons Convention (BTWC) as a key global and non-discriminatory disarmament convention, prohibiting an entire category of weapon of mass destruction.
• Also, it noted that, India believes that any matters relating to obligations under the BTWC should be addressed as per the provisions of the convention, and through consultation and cooperation between the parties concerned.

Value Addition

Biological Weapons Convention (BWC)

• The BWC is a key element in the international community’s efforts to address WMD proliferation and it has established a strong norm against biological weapons. The Convention has reached almost universal membership with 183 States Parties and four Signatory States.
• Formally known as “The Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction”, the Convention was negotiated by the Conference of the Committee on Disarmament in Geneva, Switzerland.
• Mandate: The Biological Weapons Convention (BWC) effectively prohibits the development, production, acquisition, transfer, stockpiling and use of biological and toxin weapons. It was the first multilateral disarmament treaty banning an entire category of weapons of mass destruction (WMD).
• It opened for signature on 10 April 1972 and entered into force on 26 March 1975. The BWC supplements the 1925 Geneva Protocol, which had prohibited only the use of biological weapons.
• India ratified this treaty in 2015.
• HQ: Geneva.

THE ENVIRONMENT AND ECOLOGY

5. ILLEGAL TRADE OF PANGOLIN IN BIHAR-NEPAL BORDER

THE CONTEXT: A joint team of Sashastra Seema Bal (SSB) and the Bihar Forest department rescued the pangolins and arrested two smugglers in the Govardhan forest area of VTR, West Champaran district.

THE EXPLANATION:

• A team of SSB also seized deer horns worth Rs 22 lakh and arrested two smugglers at Aamgachi near the Nepal border in Araria district.
• According to wildlife experts, pangolin scales and body parts are used for preparing traditional medicines in some Asian countries, for which the mammal is in high demand in the international trafficking market. Smugglers prefer live pangolins, which fetch more money (in lakhs) than the scales.
• The smugglers have been using the state to move body parts of poached animals as well as live specimens either to Nepal or West Bengal, to send them to China, Myanmar and other southeast Asian countries, where demand is high for use in traditional medicines.

Value Addition:

• There are two species of Pangolins found in India, the Indian Pangolin (Manis crassicaudata) and Chinese Pangolin (Manis pentadactyla).

  

• The Indian Pangolin occurs sporadically throughout the plains and the Himalayan foothills to southern India. In the north-east it is replaced by the Chinese Pangolin, a species whose range extends to South-East Asia.
• Both the species are listed under Schedule I of the Wildlife (Protection) Act of 1972. IUCN lists the Indian Pangolin as ‘Near Threatened’ and the Chinese Pangolin as ‘Endangered’.
• Both the species are on CITES Appendix II (but currently with zero export quotas for wild-sourced specimens).

Threats:

• Although pangolins are traded locally throughout India, the main threat to their survival comes from the high demand from international markets in China and Southeast Asia both for their flesh, which is considered a delicacy and a ‘tonic food’ for its alleged medicinal properties, and for their scales. Currently no international trade in Asian pangolin species is permitted under CITES.

THE PRELIMS PRACTICE QUESTIONS

QUESTIONS OF THE DAY 12^TH MARCH  2022

Q. Consider the following statements about the Biological Weapons Convention:

1. It prohibits the development, production, acquisition, transfer, stockpiling and use of biological and toxin weapons.
2. India is the founding member of the convention.

Which of the statements given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

1. Explained: What is manual scavenging, and why is it still prevalent in India? READ MORE
2. Behind India’s Lowest Female Labour Force Participation Rates in the World READ MORE

1. Is it easier to be unhappy than to be happy? READ MORE
2. Rebalancing ecology, economics & ethics READ MORE

1. India used more coal power in 2021 than 2020, which could delay its climate goals: IEA READ MORE
2. The Irreversibility of Change in Climate READ MORE

1. Electoral democracy vs constitutional democracy: Post-poll lessons READ MORE
2. Seeking Succour READ MORE
3. Critical Importance of Cooperative Federalism READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Innovative tech creating unprecedented disruption in banking sector: Khara READ MORE
2. Govt tightens IPO valuation scrutiny, jolts startups eyeing listings: Report READ MORE
3. India, China hold 15th round of military talks READ MORE
4. India, Canada to reboot trade agreement talks READ MORE
5. Border, forest officials seize live pangolins, deer horns on Bihar-Nepal border READ MORE
6. US officially designates Qatar as a major non-NATO ally READ MORE
7. Kerala Budget: New IT park proposed in Kannur, 4 IT corridors READ MORE

Main Exam    

GS Paper- 1

1. The mystery of an ancient Hindu-Buddhist kingdom in Malay Peninsula READ MORE
2. Alternatives for Secure Adaptation and Mitigation Strategies READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Electoral democracy vs constitutional democracy: Post-poll lessons READ MORE
2. Seeking Succour READ MORE
3. Critical Importance of Cooperative Federalism READ MORE

SOCIAL ISSUES

1. Explained: What is manual scavenging, and why is it still prevalent in India? READ MORE

INTERNATIONAL ISSUES

1. Double trouble: Nato and the EU are not overly excited about granting membership to Ukraine READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. More jobs can shock-proof the Indian economy. Unemployment allowance can be cushion for now READ MORE
2. India is making a mistake by increasing contract labour instead of quality jobs READ MORE  
3. Behind India’s Lowest Female Labour Force Participation Rates in the World READ MORE
4. Negotiating Disciplines on Fisheries Subsidies at the WTO: Sustaining the Blue Economy READ MORE

ENVIRONMENT AND ECOLOGY  

1. India used more coal power in 2021 than 2020, which could delay its climate goals: IEA READ MORE
2. The Irreversibility of Change in Climate READ MORE

SCIENCE AND TECHNOLOGY

1. Shutdown this misguided energy policy: The vulnerabilities of reactors and their high costs are strong reasons why India must cancel its nuclear expansion plans READ MORE
2. Towards a composite tech evolution: Technology impacts life anywhere and everywhere READ MORE

SECURITY

1. Arms lobbies rip S Asia with forced weaponry sales READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Is it easier to be unhappy than to be happy? READ MORE
2. Rebalancing ecology, economics & ethics READ MORE

Questions for the MAIN exam

1. Our economy is a subset of ecology, and therefore, to save ecology, we must be ethical in our economic activities. In the light of the statement, discuss how our activities can be balanced between ecology, economics, and ethics?
2. ‘In urban India, India should empower local governments to meet their adaptive capacities and support them in preparing their disaster atlas to ensure minimum damage to lives and assets’. Discuss the statement.

QUOTATIONS AND CAPTIONS

• True humility is not thinking less of yourself, it is thinking of yourself less.
• The women here have taught the entire society to live with harsh natural challenges, taught to fight and taught to win.
• It is imperative that to achieve sustainable development, the broken harmony between economy, ecology and ethics be restored.
• Understanding that our economy is a subset of our ecology is critical. It is therefore vital that human behaviour toward nature be modified and corrected. To achieve this, ecology and ethics need to work in tandem.
• Climate-resilient development should be commensurate with social justice.
• Strengthening the “cooperative” element of our federal structure is the key factor in formulating the fiscal relationships in the Indian economy.
• India needs to revisit its urban planning strategy, which should be people-centric. Simultaneously, it should empower local governments to meet their adaptive capacities and support them in preparing their disaster atlas to ensure minimum damage to lives and assets.
• This indicates a severe ‘time poverty’ for women who in the process of balancing might be required to give up on rest and leisure, with severe consequences for their physical and emotional well-being.
• The existing policies in India are not universal across all sectors of the economy and are dogged by exclusions. A commitment to gender equality, after all, is the nazariya that is most needed now and ever.
• Presidential intervention shapes and defines that vital ‘consequential disturbance’, just as the lack of it signifies the waste of that power and more importantly, responsibility.

50-WORD TALK

• New Delhi’s admission that a malfunction led to the firing of a cruise missile into Pakistan will cause justified global concern. In nuclear-weapons environments, annihilation is just one accident or misperception away. Full, transparent investigation is necessary. India and Pakistan must begin a serious dialogue to reduce nuclear risks.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and also exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

THE SOCIAL ISSUES AND SOCIAL JUSTICE

1. INDIA HAD THE HIGHEST MORTALITY OF ANY COUNTRY DURING PANDEMIC: LANCET STUDY

THE CONTEXT: According to the new study published by the Lancet, as many as 4.07 million people in India are estimated to have died during the COVID-19 pandemic in 2020 and 2021.

THE EXPLANATION:

• This analysis attempted, for the first time, to estimate excess deaths during the COVID-19 pandemic worldwide.
• It has determined that 18.2 million people in 191 countries have died since March 2020 – versus 5.94 million officially recorded deaths.
• Overall, it suggests that India had the highest mortality of any country during the pandemic.
• This is eight times more than the number of COVID-19 deaths India has officially registered. Even now, the official toll is only 0.5 million.
• The second worst-hit country is reportedly the US, with 1.13 million deaths in 24 months – 1.14-times more than its officially recorded deaths. Five more countries had excess deaths exceeding 0.5 million in this period: Russia, Mexico, Brazil, Indonesia, and Pakistan.
• These seven countries together account for more than half of all excess deaths due to COVID-19 in the 191 countries.

State-wise scenarios

• According to the analysis, eight states in India had mortality rates exceeding 200 deaths per 100,000 people. Only 50 other countries in the world, of the 191, had worse mortality during the pandemic. These states were Uttarakhand, Manipur, Maharashtra, Chhattisgarh, Haryana, Himachal Pradesh, Punjab and Karnataka (in descending order).
• On the other hand, Arunachal Pradesh, Andhra Pradesh, Telangana, Sikkim, Rajasthan, Gujarat, Uttar Pradesh, Jharkhand, West Bengal and Goa had excess mortality rates lower than the global average – of 120.6 per 100,000 people.
• In terms of the absolute number of estimated deaths, Maharashtra topped the chart in India with 0.6 million. Bihar came second with 0.3 million.
• Also the study noted, “the magnitude of disease burden might have changed for many causes of death during the pandemic period due to both direct effects of lockdowns and the resulting economic turmoil”.

THE SCIENCE AND TECHNOLOGY

2. EXPLAINED: WHAT IS XENOTRANSPLANTATION?

THE CONTEXT: In a landmark surgery in January 2022, doctors replaced the heart of a 57-year-old patient with the heart of a genetically altered pig. However, the patient died two months after the operation

THE EXPLANATION:

The experimental procedure was done after the US Food and Drug Administration (FDA) granted emergency authorization for it on December 31, 2021. The patient had been ruled ineligible for a conventional heart transplant or an artificial heart by major transplant centres.

WHAT IS XENOTRANSPLANATATION?

• According to the FDA, xenotransplantation is “any procedure that involves the transplantation, implantation or infusion into a human recipient of either (a) live cells, tissues, or organs from a nonhuman animal source, or (b) human body fluids, cells, tissues or organs that have had ex vivo contact with live nonhuman animal cells, tissues or organs”.
• Xenotransplantation is seen as an alternative to the clinical transplantation of human organs whose demand around the world exceeds supply by a long distance.

The First Instance,

Xenotransplantation involving the heart was first tried in humans in the 1980s. A well-known case was that of an American baby, Stephanie Fae Beauclair, better known as Baby Fae, who was born with a congenital heart defect, and who received a baboon heart in 1984.

Why the heart of a pig?

• Pig heart valves have been used for replacing damaged valves in humans for over 50 years. There are several advantages to using the domesticated or farmed pig as the donor animal for xenotransplantation.
• The pig’s anatomical and physiological parameters are similar to that of humans, and the breeding of pigs in farms is widespread and cost-effective. Also, many varieties of pig breeds are farmed, which provides an opportunity for the size of the harvested organs to be matched with the specific needs of the human recipient.

3. “THE PARAM GANGA”-A PETASCALE SUPERCOMPUTER

THE CONTEXT: National Supercomputing Mission (NSM) has deployed PARAM Ganga, a supercomputer at Indian Institute of Technology (IIT) Roorkee, with a supercomputing capacity of 1.66 petaflops.

THE EXPLANATION:

• The availability of such a supercomputer will accelerate the research and development activities in multidisciplinary domains of science and engineering with a focus to provide computational power to the user community of IIT Roorkee and neighbouring academic institutions.
• The system is designed and commissioned by C-DAC under phase-2 of the build approach of the NSM. Substantial components utilized to build this system are manufactured and assembled within India along with an indigenous software stack developed by C-DAC, which is a step towards the Make in India initiative of the government.
• C-DAC has been entrusted the responsibility to design, development, deployment and commissioning of the supercomputing systems under the build approach of Mission. The Mission plans to build and deploy 24 facilities with cumulative compute power of more than 64 Petaflops.

National Supercomputing Mission (NSM)

• The Mission envisages empowering our national academic and R&D institutions spread over the country by installing a vast supercomputing grid comprising of more than 70 high-performance computing facilities.
• The four major pillars of the NSM, namely, Infrastructure, Applications, R&D, HRD, have been functioning efficiently to realize the goal of developing indigenous supercomputing eco system of the nation.
• The National Supercomputing Mission (NSM) which is being steered jointly by Ministry of Electronics & Information Technology (MeiTY) and the Department of Science and Technology (DST) and implemented by Centre for Development of Advanced Computing (C-DAC) and Indian Institute of Science (IISc), Bangalore, has progressed significantly.

Value Addition:

What are Super Computers?

A supercomputer is the fastest computer in the world that can process a significant amount of data very quickly. The computing Performance of a “supercomputer” is measured very high as compared to a general purpose computer. The computing Performance of a supercomputer is measured in FLOPS (that is floating-point operations per second) instead of MIPS. The supercomputer consists of tens of thousands of processors which can perform billions and trillions of calculations per second, or you can say that supercomputers can deliver up to nearly a hundred quadrillions of FLOPS.

Applications:

Common applications for supercomputers include testing mathematical models for complex physical phenomena or designs, such as climate and weather, evolution of the cosmos, nuclear weapons and reactors, new chemical compounds (especially for pharmaceutical purposes), and cryptology.

4. SCIENTISTS DEVELOP ENERGY-EFFICIENT HYDROGEN PRODUCTION BY UREA ELECTROLYSIS

THE CONTEXT: Indian Scientists have designed an electrocatalyst system for energy-efficient hydrogen production with the help of electrolysis of urea. The urea electrolysis is helpful towards urea-based waste treatment with low-cost hydrogen production. This can be utilized for energy production towards our country’s benefits.

THE EXPLANATION:

Hydrogen Production by Urea electrolysis

• The energy requirement for production of hydrogen through water electrolysis can be reduced by 70 % through urea electrolysis.
• The energy-intensive counterpart of water splitting, oxygen evolution, can be replaced with urea oxidation in urea electrolysis. The low-cost, earth-abundant Ni-based catalysts are widely applied for this process.
• The main challenge associated with urea oxidation is retaining the prolonged activity of the catalyst as the strong adsorption of the reactive intermediate (COx) on the active site, referred to as catalyst poisoning, causes activity loss.

Methodology:

• The scientists have explored electrocatalysts and shown that surface defective NiO and Ni2O3 systems having more Ni3+ ions are more efficient electrocatalysts than conventional NiO. They have used high-energy electron beams to produce surface defective unsaturated Ni sites in NiO (e-NiO).
• The study reveals that e-NiO prefers direct mechanism of urea electro-oxidation due to strong adsorption of urea molecule, whereas NiO favors indirect mechanism with low activity. Further, the prominent electrocatalyst poison COx could be removed by adjusting the molar ratio of KOH and Urea with improved kinetics.

What is the significance of the production of hydrogen by Urea electrolysis?

India is one of the top countries in urea production, and it produced 244.55 LMT of urea during 2019-20. The nitrogenous fertilizer industries generate a high concentration of ammonia and urea as effluents. Hence, this can be utilized for energy production towards our country’s benefits.

THE PRELIMS PERSPECTIVE

5. NARI SHAKTI PURASKAR’ – 2020 AND 2021

THE CONTEXT: The President of India, has conferred the ‘Nari Shakti Puraskar’ for the years 2020 and 2021, on the occasion of International Women’s Day on March 08, 2022, at Rashtrapati Bhavan, New Delhi.

THE EXPLANATION:

Overall, 29 women have been conferred the award for the years 2020 and 2021 in recognition of their outstanding and exceptional work towards the empowerment of women, especially the vulnerable and marginalised. There was a total of 28 awards which included 14 awards each for the years 2020 and 2021. The award ceremony for the year 2020 could not be held in 2021 due to the COVID-19 pandemic.

Value Addition:

• Every single Nari Shakti Puraskar is disturbed among the deserving individuals and institutions on 08th March every year. The announcement of the award is made by the Ministry of Women and Child Development.
• Nari Shakti Awards 2022 is distributed in six institutional categories: Rani Lakshmi Bai Award, Rani GaidinliuZeliang Award, Mata Jijabai Award, Kannagi Devi Award, Devi Ahilya Bai Holkar Award & Rani Rudramma Devi Awards and two individual categories: For courage and bravery & For making outstanding contributions to women’s endeavour, community work, or making a difference, or women’s empowerment.
• It is the highest civilian award for women, which is given to deserving women because of their good deeds in the field of women empowerment.

6. EXERCISE “DHARMA GUARDIAN”-INDIA AND JAPAN

THE CONTEXT: Exercise Dharma Guardian, an annual exercise between Indian Army and Japanese Ground Self Defence Force, concluded at Belgaum with a focus on counter-terrorism operations and disruptive technologies between two key partners in the Indo-Pacific region.

THE EXPLANATION: 

• Dharma Guardian is an annual military exercise that is being conducted in India since 2018.
• It has covered a vast spectrum – from cross training and combat conditioning in the field environment to sports and cultural exchanges. The contingents from the two armies jointly attended demonstrations at the firing ranges and also participated in various tactical exercises. Both contingents shared their expertise on contemporary subjects of counter-terrorism operations, as also on exploiting disruptive technologies such as drone and anti-drone weapons.

Other Joint Exercises with Japan

• SHINYUU Maitri: This is a bilateral exercise conducted between the Japanese Air Self Defence Force (JASDF) and the Indian Air Force.
• JIMEX: It is a bilateral maritime exercise held between Japan and India.
• Sahayog-Kaijin: A joint bilateral exercise between the Japan Coast Guard and the Indian Coast Guard.

THE PRELIMS PRACTICE QUESTIONS

QUESTIONS OF THE DAY 11^TH MARCH  2022

Q1. Consider the following statements:

1. Assertion (A): Craters on the moon are of a more permanent nature than that of Earth.
2. Reason (R): There is absence of atmosphere and plate tectonics on(in) the moon whereas both are present on(in) Earth.

Select the correct answer from the following:

a) A is true, but R is false.

b) A is false, but R is true.

c) A is true and R is the correct explanation of A.

d) Both a and R are not correct.

ANSWER FOR 10^th MARCH 2022

Answer: D

Explanation:

• Please refer to given map-

THE CONTEXT: On February 11, 2022, the Securities and Exchange Board of India (SEBI) passed an order involving the country’s largest stock exchange-The National Stock Exchange. Apart from highlighting the issue of corporate misgovernance, the whole episode has raised questions on the role of the capital market regulator. In this article, we examine the issue in detail.

ALL YOU NEED TO KNOW ABOUT THE NSE IMBROGLIO

THE SEBI FINDINGS:

• The National Stock Exchange (NSE)’s former Managing Director (MD) and Chief Executive Officer (CEO) is penalized for misusing her office for:
• making appointments,
• concealing confidential information about operations of the exchange,
• and making incorrect and misleading submissions to the Securities and Exchange Board of India (SEBI).
• The regulator states that her unknown spiritual guru influenced her decision-making.
• The former NSE Chief is also being examined for a case registered in May 2018 about alleged abuse of a trading software of the exchange and the SEBI order comes in this backdrop (Read Ahead).

IMPROPER PERSONNEL MANAGEMENT:

• The former NSE head appointed a person as the Chief Strategic Officer (CSO) of the exchange despite the latter not having any exposure to capital markets.
• SEBI notes that the exchange had not advertised any vacancy about the appointment of CSO
• SEBI notes that his previous work experience was not relevant to his new consultancy position at NSE. With recurrent appraisals and performance ratings, his compensation rose to ₹4.21 crore within two years(1.8 crores when he joined)

DIVULGING CONFIDENTIAL INFORMATION:

• The regulator found the former NSE Chief guilty of divulging confidential information about the NSE’s organizational appointments, financial results and projections, dividend pay-out ratio, and board meeting consultations to her unknown spiritual guru.

FAILURE OF THE NSE BOARD:

The NSE Board was found guilty of not informing the market’s regulator and opting to keep it under wraps.

PENALTIES IMPOSED:

• The former NSE Chief has been forbidden from dealing in stocks, etc. for three years, alongside a penalty of ₹3 crores.
• The erstwhile CSO has been restrained from associating with any market infrastructure institution or an intermediary for three years. He would also have to pay a penalty of ₹2 crores.
• NSE has been ordered not to launch any new product for the next six months.

AN ANALYSIS OF THE NSE SCAM?

BLOW TO CAPITAL MARKETS:

• The NSE is a Market Infrastructure Institution that provides facilities for trading stocks and other products in the capital market.
• The scam has sent alarm bells to the investors and trading community and even has the potential to undermine the economic security of the nation apart from hugely denting investors’ confidence.
• The government has already indicated that it will initiate measures to sustain investors’ confidence in the Indian capital market.

POOR CORPORATE GOVERNANCE:

• The approach by the Board of NSE amounted to a cover-up of the entire episode so that no outsider, including the regulator, would ever come to know.
• The public interest and shareholder directors collectively decided to not document the board discussion concerning the irregularities of the management, thereby abdicating their primary responsibilities.
• Instead of sacking her, the Board allowed her to resign with respectable compensation and buried the matter, reflecting the complete collapse of corporate governance in NSE.

REWARDING MALFEASANCE:

• The entire Board’s complicity is further indicated by the fact that, despite being aware that the MD-cum-CEO was divulging confidential information of the NSE to an anonymous individual and had recruited and excessively rewarded another individual, the Board allowed her to resign on December 2, 2016.
• For good measure, the Board placed on record her “sterling contribution and approved a 44-crore severance package!

CONDUCT OF DIRECTORS OF GOVT COMPANIES/BANKS:

• Senior executives of the LIC, the SBI group, and the Stock Holding Corporations, etc, are part of the BoD who are delegated to protect the interests of their companies. But they have not raised any alarm but went along with the questionable approach of the management.
• Their role highlights a troubling issue: when they are on the Board of prominent private sector companies, they apparently abandon their own companies.
• And it also seems they are ready to align themselves and take instructions from the executive management of the private sector companies. It raises questions for the public about how the parent companies themselves are managed.

REGULATOR’S CONDUCT:

• The SEBI’s order on the NSE saga and the delay of six years in concluding the probe raises troubling questions on the regulator’s role (Read Ahead)

A SERIES OF SCAMS IN NSE:

• The current scam comes in the backdrop of a progressing CBI-led investigation into the co-location scam and other glaring irregularities in NSEs.
• This points out that the NSE’s financial success and near-monopoly have clouded the judgment of the NSE leadership or they believe to be above the rule of law.

WHAT IS THE CO-LOCATION SCAM?

WHAT ARE CO-LOCATION FACILITIES?:

• There are dedicated spaces in the exchange building, right next to the exchange servers, where high-frequency and algo traders can place their systems or programs.

BENEFITS OF THESE FACILITIES:

• With the co-location facilities being extremely close to stock exchange servers, traders here have an advantage over other traders due to the improvement in latency (time taken for order execution).
• But the co-location is mainly used only by institutional investors and brokers for their proprietary trader. Retail investors have a negligible presence here.

UNFAIR ACCESS TO SERVERS:

• The scam in NSE’s co-location facility took place almost a decade ago. It was alleged that one of the trading members, OPG Securities, was provided unfair access between 2012 and 2014 that enabled him to log in first to the server and get the data before others in the co-location facility.
• It was alleged that the owner and promoter of said private company abused the server architecture of NSE in conspiracy with unknown officials of NSE, SEBI, etc.
• This preferential access allowed the algo trades of this member to be ahead of others in the order execution.

ROLE OF WHISTLEBLOWER AND MEDIA:

• The scam came to light due to a whistle-blower’s complaint to SEBI in 2015, in which the entire modus operandi of the people gaming the system was laid out.
• When Money life(a media outlet) exposed the scam, the NSE management adopted a high-handed attitude, slapping a ₹100 crore defamation suit against Money life.
• The matter moved to Bombay High Court, which came down hard on NSE and dismissed its suit. Further, NSE was told to pay ₹50 lakh as the penalty for its arrogant attitude in responding to the media.

EXTENT OF LOSS:

• The point to note is that there is no way of proving any loss to any investors or traders due to this scam. The SEBI order of 2019 directed OPG Securities and its directors to disgorge unfair gains of ₹15.7 core with the interest of 12 percent from April 7, 2014, as a national loss.

PENALTY ON NSE:

• In 2016, SEBI asked NSE to carry out a forensic audit of its systems and deposit the entire revenue from its co-location facilities into an escrow account. Deloitte was tasked with the job of conducting a forensic audit of NSE’s systems.
• In 2019, SEBI passed its order on the issue, asking NSE to pay ₹625 crores with an interest of 12 percent and also barred NSE from raising money from the stock market for six months.

CORRECTIVE MEASURES:

• NSE has changed its order execution protocol in the co-location facility to Multicast TBT from April 2014, thus plugging the loophole that allowed some to game the system.

THE SECURITIES AND EXCHANGE BOARD OF INDIA: AN OVERVIEW

CONSTITUTION OF SEBI:

• The Securities and Exchange Board of India was constituted as a non-statutory body on April 12, 1988, through a resolution of the Government of India.
• The Securities and Exchange Board of India was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.

PROTECTIVE FUNCTION OF SEBI:

• Checking price rigging
• Prevent insider trading
• Promote fair practices
• Create awareness among investors
• Prohibit fraudulent and unfair trade practices

REGULATORY FUNCTION OF SEBI:

• Designing guidelines and code of conduct for the proper functioning of financial intermediaries and corporate.
• Regulation of takeover of companies
• Conducting inquiries and audits of exchanges
• Registration of brokers, sub-brokers, merchant bankers, etc.
• Levying of fees
• Performing and exercising powers
• Register and regulate credit rating agency

DEVELOPMENT FUNCTION OF SEBI:

• Imparting training to intermediaries
• Promotion of fair trading and reduction of malpractices
• Carry out research work
• Encouraging self-regulating organizations
• Buy-sell mutual funds directly from AMC through a broker

OBJECTIVES OF SEBI:

• Protection to the investors: The primary objective of SEBI is to protect the interest of people in the stock market and provide a healthy environment for them.
• Prevention of malpractices: This was the reason why SEBI was formed. Among the main objectives, preventing malpractices is one of them.
• Fair and proper functioning: SEBI is responsible for the orderly functioning of the capital markets and keeps a close check over the activities of the financial intermediaries such as brokers, sub-brokers, etc.

POWERS OF SEBI:

• SEBI is a quasi-legislative, quasi-judicial and quasi-executive body.
• SEBI has the power to regulate and approve any laws related to functions in the stock exchanges.
• It has the powers to access the books of records and accounts for all the stock exchanges and it can arrange for periodical checks and returns into the workings of the stock exchanges.
• It can also conduct hearings and pass judgments if there are any malpractices detected on the stock exchanges.
  When it comes to the treatment of companies, it has the power to get companies listed and de-listed from any stock exchange in the country.
• It has the power to completely regulate all aspects of insider trading and announce penalties and expulsions if a company is caught doing something unethical.

GOVERNANCE OF SEBI:

• The SEBI Board consist of nine members-
• One Chairman appointed by the Government of India
• Two members who are officers from Union Finance Ministry
• One member from the Reserve Bank of India
• Five members appointed by the Union Government of India

ENFORCEMENT OF LAWS:

• SEBI enforces provisions of the SEBI Act, the Depositories Act 1996, the Securities Contracts (Regulation) Act, 1956, among others.
• A Securities Appellate Tribunal established under section 15-K of the Securities and Exchange Board of India Act hears appeal from the orders of SEBI which can be challenged in the SC only.

A QUESTION MARK ON SEBI’S REGULATORY ROLE

INEXPLICABLE DELAY:

• Though SEBI began investigations in 2016, it has taken six years to arrive at this order. However, SEBI’s order raises more questions than it answers as it has not taken the issue to a logical conclusion.

DILUTION OF OFFENCE:

• The order passed by SEBI’s whole-time member contains no provision for conducting any investigation into the possible criminal aspects of the then NSE Chief’s conduct.
• It appears that SEBI sees her criminal offense of sharing NSE’s internal confidential information with an unknown person as indiscretion.
• But converting a grave criminal offense into a regulatory indiscretion may set a dangerous precedent for the entire capital market ecosystem.

POOR CAPACITY OF SEBI:

• Multiple complaints were lodged in SEBI against the then NSE MD &CEO, which led SEBI to investigate her case.
• If SEBI lacked the capability or capacity to take the investigation further, it should have sought the assistance of other investigating agencies.
• The NSE Board chairman, upon discovering that Chitra was sharing information regarding NSE with her Himalayan Yogi, apprised the NSE Board members in a closed-door meeting. And that information was too sensitive to be even recorded in minutes of the board meeting.

NO FEAR FOR REGULATORS:

• NSE had knowledge that she shared sensitive information with the alleged yogi and NSE Board had concealed this information from SEBI Long after she had resigned, and only when SEBI probed, NSE directed Ernst &Young to figure out the identity of the alleged Yogi.
• The whole episode reflects poorly on the status and respect the SEBI commands or put in other words; the regulated seems to have scant regard for the regulator and seems to believe that the system can be gamed and they will never get caught.

LOST OPPORTUNITY FOR REFORMS:

• SEBI missed an opportunity to make an example of the CMD’s case as a warning to rogue managers. However, the meager penalty meted out by SEBI indicates the regulator is as keen as NSE to close the case rather than address the ethical and legal cracks within the system. The penalty imposed on her is ₹3 crore – less than 7% of her severance package of ₹44 crores.

SEBI’S FAILURE TO UPHOLD NATIONAL INTEREST:

• By relegating this case to a mere issue of breach of compliance, SEBI has effectively turned a possible criminal offense into a civil case. This case will embolden more who may now find it easier to abuse their official positions to compromise their own company’s integrity or hurt national interest.

ABDICATION OF AUTHORITY:

• Despite being armed with exceptional powers among financial regulators to summon market participants and to search and seize evidence, SEBI failed to show the intent to get to the bottom of the scam while the trail was still hot.

REVITALIZING THE REGULATOR AND REFORMING THE NSE: THE WAY FORWARD

SCALE UP THE RESOURCE BASE:

• SEBI as a regulator has to scrutinize millions of transactions done almost every minute in the stock market and that by itself makes its task herculean. The problem is compounded by the need to act swiftly, and naturally, there are limitations.
• Hence, the resource base of SEBI, especially human infrastructure, needs to be scaled up so also its technological capability through AI, etc.

FAST TRACK REFORMS IN NSE:

• A leading stock exchange like NSE is a systemically important institution as it serves an economic function and is the symbol of the free market. Any disruption in the NSE has a repercussion on the economy and the country.
• The NSE leadership needs to put their house in order by upholding the laws of the land and also by holding accountability of the management to the Board, which also need to be accountable to the public.
• Processes and practices currently in place at NSE need to be revisited so that such an event doesn’t re-occur at such an important market infrastructure institution.

ACTIONS BY SEBI:

• SEBI has also instituted various changes in the governance of market infrastructure institutions (MIIs), including board committee structures and oversights, the tenor of management, accountability for lapses at MIIs, etc., which can strengthen the control environment.

FULFILLING SEBI’S MANDATE:

• SEBI has been tasked with preserving the integrity of the capital market and institutionalizing good governance in the stock market ecosystem.
• For the sake of millions who trust SEBI to preserve the integrity of the Indian capital market, the regulator must fix the systemic deficiencies in the Indian exchange.
• It must not be seen as favoring or taking a soft approach to matters of regulatory violation, especially by powerful players.

EXPECTATION FROM THE NEW SEBI CHIEF:

• Regulating the stock exchanges independently and efficiently, especially when doubts have arisen regarding the functioning of the NSE, should be high on the list of tasks for the newly appointed chairperson of SEBI.

ROLE OF PMO AND OTHERS:

• The SEBI order itself seems incomplete and there seems to be something more than what meets the eye. This could require further investigation by other agencies, and the Finance Ministry and the Prime Minister’s Office need to act expeditiously.
• The CBI investigation into this scam also needs to be fast-tracked and should be done professionally to unearth the truth and to prosecute and punish the guilty.

REGULATING THE REGULATOR:

• The SEBI order has done more damage to its credibility and many questions have remained unanswered. Thus, a thorough inquiry into the investigation conducted by SEBI by independent agencies needs to be undertaken to find out if any extraneous considerations were involved in the manner of investigation or its findings.
• This does not in any way will deem to be an encroachment into the regulator’s autonomy but will be a step towards improving regulatory quality.
• Additionally, a Regulatory Impact Assessment needs to be conducted to assess the functioning of SEBI and the Parliament’s control over it needs to be strengthened through standing committee oversight, periodic reports, etc.

RESTRUCTURING THE BOARD OF NSE:

• Persons occupying key management positions at important institutions, even if professionals, should be rotated at reasonable intervals.
• Allowing an individual to turn into a permanent fixture as CEO or MD is a bad idea. It is improper for an outgoing CEO/MD to continue on the Board.
• And it is worse if this happens when the ex-CEO’s deputy assumes charge as the new CEO. Not only can this create situations of nexus, but it can also tie down the successor from initiating a clean-up of legacy structures.

WHISTLEBLOWER PROTECTION:

• As it was a whistle-blower letter that alerted SEBI to the irregularities at NSE, MIIs must be asked to put in place well-defined employee whistle-blower mechanisms, where complaints can be lodged directly with the concerned.
• The identity of the whistle-blower must be strictly protected to prevent vindictive action.

PROFESSIONAL CONDUCT OF THE GOVT COMPANY/BANK REPRESENTATIVES:

• The LIC is coming to the market for its initial public offering, and prospective shareholders and policyholders have a right to demand an explanation from LIC on the unprofessional conduct of its representatives on NSE in this period.
• Similarly, shareholders of SBI also should demand an explanation from SBI on the conduct of its officers when deputed as directors in other companies.
• The govt should take note of the negligence/irresponsibility of these members and stringent actions need to be taken against them if found to be complicit.

THE CONCLUSION:  Despite the capture of power by a few individuals and the governance infractions they indulged in, few can dispute that the National Stock Exchange (NSE) has served Indian financial markets extremely well in the three decades of its existence. Its state-of-the-art electronic platform and reliable trading and settlement systems have ensured that there were no systemic failures through the worst of upheavals. It is therefore critical for the government and the regulator to get to work on fixing the loopholes in the governance structures at the NSE so that such infractions don’t recur. The regulator needs to introspect on its actions both in the co-location and ‘yogi’ scams and learn from the mistakes.

QUESTIONS:

• Stock exchanges as institutional mechanisms have an important role to play in ensuring the stability of the financial and economic system. But, the recent instances of misgovernance in India’s premier stock exchange have the potential to undermine the financial and economic security of the country. Elaborate.
• Who will regulate the regulator is a question that needs to be answered while balancing the imperatives of regulatory autonomy and accountability. Examine the statement in the context of the SEBI’s role in the recent National Stock Exchange scams.
• What do you understand by the term co-location in the context of capital markets? How far do you think that poor regulation by SEBI and questionable corporate governance at the National Stock exchange has contributed to it?
• The capital market regulator needs capital: human, financial, and technological. Comment
• When a regulatory authority combines legislative, executive, and judicial powers, there is bound to exist a lack of any meaningful accountability leading to arbitrariness in decision making which will defeat the purposes for which the regulator is created in the first place- fair play, competition, and facilitation. Critically examine.

ADD TO YOUR KNOWLEDGE

NSE was incorporated in 1992. It was recognized as a stock exchange by SEBI in April 1993 and commenced operations in 1994 with the launch of the wholesale debt market. NSE, set up after Harshad Mehta’s scam, is today the largest stock exchange in India in terms of trading volume and figures also in the top list of Asia’s stock exchanges.
The National Stock Exchange of India Limited offers a platform to companies for raising capital. Investors can access equities, currencies, debt, and mutual fund units on the platform. In India, foreign companies can raise capital using the NSE platform through initial public offerings (IPOs), Indian Depository Receipts (IDRs), and debt issuances. The NSE also offers clearing and settlement services.

NSE Functions

• To establish a trading facility for debt, equity, and other asset classes accessible to investors across the nation.
• To act as a communication network providing investors an equal opportunity to participate in the trading system.
• To meet the global standards set for financial exchange markets.

1. CJI for greater women share in judiciary READ MORE
2. A fundamental shift in electoral behaviour READ MORE
3. The Uniform Civil Code novelty in Goa: Though not strictly Uniform Civil Code, the Goa Civil Code is a progressive law that allows equal division of income and property between spouses READ MORE
4. Defections are a threat beyond election results today. Here are five ways we can fix it READ MORE

1. India’s growth story is missing women READ MORE
2. The COVID-19 Impact on Women in India: Increased Material and Physical Violence READ MORE

1. Why Achieving a ‘Circular Economy’ Is Important for Effective Climate Action READ MORE
2. India used more coal power in 2021 than 2020, which could delay its climate goals: IEA READ MORE

1. Happy teams are more creative and productive READ MORE
2. A Ukrainian Mirror: War, women and peace READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Kudankulam Village Panchayat adopts resolution against AFR facility READ MORE
2. At the Colombo Security Conclave, Doval calls for regional response to maritime challenges READ MORE
3. India’s sugar exports accelerate on global price rally, weak rupee READ MORE
4. Russia hits back at Western sanctions with export bans READ MORE
5. Explained: What is xenotransplantation, the process of using an animal’s organ to keep a human alive? READ MORE
6. Too Many of India’s Sloth Bears, Dhole Are Dying in Road Kills READ MORE
7. More than 75% of Amazon rainforest near tipping point, may transform into dry savanna: Study READ MORE

Main Exam  

GS Paper- 1

1. India’s growth story is missing women READ MORE
2. The COVID-19 Impact on Women in India: Increased Material and Physical Violence READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. CJI for greater women share in judiciary READ MORE
2. A fundamental shift in electoral behaviour READ MORE
3. The Uniform Civil Code novelty in Goa: Though not strictly Uniform Civil Code, the Goa Civil Code is a progressive law that allows equal division of income and property between spouses READ MORE
4. Defections are a threat beyond election results today. Here are five ways we can fix it READ MORE

INTERNATIONAL ISSUES

1. Russia-Ukraine conflict can spark a global food crisis READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Dilemma for central banks amid inflation READ MORE
2. Addressing uncertainty: Necessary changes in GST must be made in time READ MORE
3. From Grain and Corn to Edible Oil, India Will Feel the Food Ripples of Ukraine’s Crisis READ MORE

ENVIRONMENT AND ECOLOGY  

1. Why Achieving a ‘Circular Economy’ Is Important for Effective Climate Action READ MORE
2. India used more coal power in 2021 than 2020, which could delay its climate goals: IEA READ MORE

SCIENCE

1. What do we know about the newest crater on the moon? READ MORE

SECURITY

1. Arms lobbies rip S Asia with forced weaponry sales READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Happy teams are more creative and productive READ MORE
2. A Ukrainian Mirror: War, women and peace READ MORE

Questions for the MAIN exam

1. Discuss the importance of the circular economy for an Effective Climate Action. What should be the way forward for India in this regard?
2. Discuss why women’s higher participation in the labour force is vital for inclusive growth? How Women-friendly work policies can helpful to achieve this goal?

QUOTATIONS AND CAPTIONS

• Hope is being able to see that there is light despite all of the darkness.
• The period of the Covid-19 pandemic has witnessed a dramatic worsening of the conditions of ordinary women and girls, made worse by official apathy and patriarchal attitudes of those in power.
• China and India might be some of the countries where the green transition may also be slowed down because Russia would shift their energy exports to them.
• Higher exports from the world’s second-biggest sugar producer could check the rally in global prices.
• To be able to build and nurture the foundation of happiness, business leaders need to inculcate a sense of appreciation, gratitude, respect and cooperation among employees.
• Agencies such as State Trading corporations, Food Corporation of India, and multinational grains and oilseeds trading firms can help tide over the crisis and create a resilient and efficient food supply chain and public distribution system.
• Women’s higher participation in the labour force is vital for inclusive growth and for that Women-friendly work policies are required.
• Though not strictly Uniform Civil Code, the Goa Civil Code is a progressive law that allows equal division of income and property between spouses.
• Transitioning towards a ‘circular economy’ is seen as crucial for sustainable development.
• A circular economy is one where waste simply does not exist: resources are instead used, reused and recycled as much as possible.
• Countries including India would need to plug gaps – such as cultural ones – to set it on a path of transition to a circular economy.

50-WORD TALK

• Conflict-related sexual violence affects all genders, but there is a peculiar dimension to the way it affects women. In the rhetoric of war, women come to embody the nation, its identity, and its honour, and when they are raped or forcibly impregnated, the violence is also intended to break the spirit of the community, nation, or state to which they belong, in a conflict.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and also exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

[WpProQuiz 178]

THE CONTEXT: A Bill to amend the Preamble to the Constitution has been introduced by a ruling party MP in the Rajya Sabha during the winter session of the Parliament (Dec 04, 2021) amidst protests by Opposition MPs. The winter session also saw the introduction of more than 150 Private Member Bills in the Parliament. In this article, we analyze the various aspects of the Private Member Bills with a special focus on the one introduced to amend the Preamble.

UNDERSTANDING THE MODALITIES OF THE PRIVATE MEMBER BILL

WHAT IS A PRIVATE MEMBER BILL?: 

• A Bill introduced in either House by a Member of Parliament, who is not a Minister, is a Private Member’s Bill.
• The MPs who intend to introduce private member bills have to notify the House Secretariat about the Bill at least a month before and these bills can only be introduced and discussed on Fridays.
• Currently, Private members’ bills have been capped at three bills/per session by an MP.
• If there are multiple private member bills scheduled for a particular Friday in the Lok Sabha, then the Parliamentary Committee on Private Member’s Bills and Resolutions classifies these bills based on their significance and urgency.

REQUIREMENT OF LEGISLATIVE COMPETENCE:

• The first and foremost requirement in the case of a Private Member’s Bill is that it should be within the legislative competence of the Parliament. In other words, the subject of the Bill should relate to the subjects included in the Union or Concurrent List contained in the Seventh Schedule of the Constitution of India.

ATTACHMENT OF MEMORANDUM OF DETAILS:

• Notices of Bills are required to be accompanied by copies of the text of the Bill, together with a Statement of Objects and Reasons, duly signed by the member giving notice.
• A Bill involving expenditure from the Consolidated Fund of India must also be accompanied by a financial memorandum inviting particular attention to the clauses involving expenditure.
• It must also give an estimate of recurring and non-recurring expenditures likely to be involved in case the Bill is passed into law.

THE MANDATE OF PRIOR RECOMMENDATION FOR INTRODUCTION:

• If the Bill cannot be introduced (Articles 3 and 274 ) without the previous sanction or recommendation of the President, the Bill should annex a copy of such sanction or recommendation.
• The notice is not valid until this requirement is complied with and hence cannot be introduced in the House.
• While Article 3 deals with the formation of new states or alteration of names or boundaries of existing States, Article 274 deals with Bills affecting taxation in which states are interested.

MANDATORY RECOMMENDATION FOR CONSIDERATION:

• A Bill which, if enacted, would involve expenditure from the Consolidated Fund of India, cannot be taken into consideration or referred to a Select/Joint Committee unless the member obtains the requisite recommendation of the President for consideration of the Bill under Article 117(3) of the Constitution.
• In the case of such Bills, members-in-charge should obtain the recommendation of the President beforehand to enable them to proceed further with the Bill.

CONSTITUTIONAL AMENDMENT:

• Bills seeking to amend the Constitution, apart from being subject to the normal rules applicable to Private Members’ Bills, have also to be examined by the Committee on Private Members’ Bills and Resolutions and only those Bills which have been recommended by the Committee are put down in the List of Business for the introduction.

COMMITTEE ON PRIVATE MEMBERS’ BILLS AND RESOLUTIONS

The Committee on Private Members’ Bills and Resolutions consists of not more than fifteen members nominated by the Speaker. The term of the Committee is one year. The Deputy Speaker is always included as a member and appointed Chairperson of the Committee. Private Members’ Bills and Resolutions are governed by Rules of Procedure and Conduct of Business in Lok Sabha and of the Directions by the Speaker.

The functions of the Committee on Private Members’ Bills and Resolutions are:

to examine every Bill seeking to amend the Constitution, a notice of which has been given by a private member, before a motion for leave to introduce the Bill is included in the List of Business;
to examine all Private Members’ Bills after they are introduced and before they are taken up for consideration in the House and to classify them according to their nature, urgency, and importance into two categories, namely, category A and category B;
to allot time to Private Members’ Bills and Resolutions for their discussion in the House; and
to perform such other functions in respect of Private Members’ Bills and Resolutions as may be assigned to it by the Speaker from time to time.

MAJOR PRIVATE MEMBER BILLS INTRODUCED IN THE WINTER SESSION OF THE PARLIAMENT

AMENDMENT TO THE PREAMBLE: Dealt with separately. Read Ahead.

REPEAL OF LABOUR CODES:

• The Private Member Bill was introduced in Rajya Sabha by an Opposition MP to repeal the four new Labour Codes being opposed by Trade Union Leaders and Labour law scholars alike.
• Private Bill introduced for repealing the four Labour Codes is called the Labour Codes (Repeal) Bill and it asserts that the new Codes have only diluted the provisions given by the previous Labour Acts, instead of fortifying them.
• Private Bill states that in addition to eliminating the shield of collective bargaining making it more difficult for the workers to assert their rights, the Labour Codes are intrinsically biased towards employers and corporates, emboldening them to violate the rights of workers.

OTHER BILLS INTRODUCED IN RS:

• Among the other private member’s Bills introduced in the RS was the Women’s (Reservation in Workplace) Bill, Bill to amend the Tenth Schedule of the Constitution, setting a three-month limit on deciding matters of disqualification of members under the anti-defection law, and the Population Control Bill, 2021

ANTI LYNCHING BILL:

• The ‘Protection from Lynching Bill’ was introduced in LS by a Congress member Shashi Tharoor that provides for effective protection of constitutional rights of vulnerable persons, to punish acts of lynching, and to have designated courts for expeditious trial of such offenses.

EMPLOYEE WELFARE:

• The ‘Right to disconnect Bill” introduced in LS by an Opposition MP that seeks to establish an employees’ welfare authority to confer the right on every employee to disconnect from work-related telephone calls and emails beyond work hours and on holidays and the right to refuse to answer calls and emails outside work hours.

TAMING THE INTELLIGENCE AGENCIES:

• Another Opposition MP introduced a Bill in LS to regulate the functioning and exercise of the power of Indian intelligence agencies and to provide for coordination, control, and oversight of such agencies.

RAJYASABHA REPRESENTATION FOR THE UT OF CHANDIGARH:

• Demanding that the Union Territory be given representation in the Rajya Sabha, an MP had moved the Private Members’ Bill in LS, saying that the member of the Upper House can be elected by an electoral college consisting of elected members of the municipal corporation of Chandigarh.
• It was mentioned in the Bill that earlier, Delhi councilors used to elect a Rajya Sabha member when there was no Assembly there.

SIGNIFICANCE OF THE PRIVATE MEMBER BILLS

FULFILLING PRIMARY RESPONSIBILITY:

• The primary role of our MPs is to legislate. Yet lawmaking has in practice become the exclusive preserve of the government of the day.
• Through the private member Bills, the MPs are actually doing the work they are elected to do-legislation.
• This is a vehicle that is available to an MP to play his part as an active legislator, in addition to speaking on bills introduced by the government.

ESCAPE THE RIGOUR OF THE ANTI-DEFECTION LAW:

• The anti-defection law basically reduces our MPs to a headcount because the decision of the political party on any piece of legislation is supreme and binding on all MPs in the party.
• The private member Bill route provides a viable alternative for the MPs to present their and their constituencies’ views/needs, which may not attract the wrath of Schedule 10.

OUTLINING POSSIBLE SOLUTIONS:

• MPs choose to use the Private Member Bill route as one more way of demonstrating their competence in not just understanding an issue but also coming up with possible solutions through a legislative proposal.

DEMONSTRATING THE SENSE OF THE HOUSE:

• MPs also believe that this is an important way of signaling to the government the need for legislation on some critical issues.
• Even though the Bill may not be passed, it sometimes brings out the “sense of the House” on an important policy issue, which can then be taken up by the government.
• Before the voting age was reduced from 21 years to 18 years in 1989, there was a private member’s Bill that proposed such a change. The debate on the floor of the House showed that MPs across party lines were in support of such a move. That Bill was not passed, but the government later brought a bill to amend the Constitution to bring about this change.

INDIVIDUAL AND INSTITUTIONAL BENEFITS:

• If more MPs use these opportunities to demonstrate leadership on critical issues on the floor of the House, then it will ensure their effective participation and revitalize the institution of Parliament, which arguably has been losing its sheen.
• This would go some way in addressing the perception that MPs do not do any work once elected.
• This will also help individual MPs prove that they are not mere “rubber stamps” of the political party leadership.

WHAT ARE THE CHALLENGES FACED BY PRIVATE MEMBER BILLS?

Government Bills enjoy greater chances of being accepted by the House than Private Members’ Bills. By convention, the motion for the introduction of a Bill is not opposed. However, there have been instances when the motion for introduction was opposed and also negatived by the House. The chances of a Private Bill becoming the law is minuscule considering only 14 Private Member Bills have become law so far, the last one being the Supreme Court (Enlargement of Criminal Appellate Jurisdiction) Bill, 1968, which was passed in 1970.

Further, the government’s backing becomes a must for such a bill to be passed in both Houses, given the numbers are stacked in favor of the ruling party. Often, governments also don’t want to be seen as ceding legislative space to individual MPs. Secondly, there is a general decline in the quality of members entering the House, which has reduced the quality of legislative business. Thirdly, the party structure based on High Command, the ADL, Whip, etc. has undermined the role of individual MPs in the Parliamentary system. Lastly, the MPs are laymen and unlike the Government Bills, they have negligible access to experts’ advice(bureaucracy) and secretarial service, which act as a roadblock in drafting legislation.

THE PRIVATE MEMBER BILL TO AMEND THE CONSTITUTION

FEATURES:

• The Bill, titled the Constitution (Amendment) Bill, 2021, seeks to substitute “EQUITABLE” for the word “SOCIALIST” in the Preamble to the Constitution.
• For the words “EQUALITY of status and of opportunity”, the Bill seeks to substitute the following:
• “EQUALITY of status and of opportunity to be born, to be fed, to be educated, to get a job and to be treated with dignity,
• ACCESS to information technology and all its implications, irrespective of caste, creed, social status or income.”
• For the words “FRATERNITY assuring the dignity of the individual and the unity and integrity of the Nation”, the Bill seeks to substitute the following, namely: –
• “FRATERNITY assuring the dignity of the individual and the community and the unity and integrity of the Nation
• HAPPINESS, assuring a high gross domestic happiness.”

CONTROVERSY:

• The opposition parties have claimed that Amendment to the Preamble is an attack on the very edifice of the Constitution, “adding that the Bill had not got the President’s prior consent.
• They wanted the Bill to be disallowed because Preamble is part of the “basic structure” of the Constitution and cannot be amended. Amendment to the Preamble is an attack on the edifice of the Constitution, they added.
•  Scholars point out that as the Bill aims to achieve equality of status and opportunity to be born, fed, and educated, apart from guaranteeing jobs and access to information technology, it is possible to suggest that it will involve expenditure from the Consolidated Fund of India, and therefore, will require the President’s recommendation in terms of Article 117(3) of the Constitution.
• It can also be suggested that these promises in the Preamble would involve revenue mobilization through taxation and, therefore, impinge on the states’ interests in the federal set-up. The rigor of Article 274 may, therefore, be attracted, barring the introduction of such a Bill.

CAN THE PREAMBLE BE AMENDED THROUGH A PRIVATE MEMBER BILL?

Before answering this question, it must be to analyze the current position of the Preamble vis-à-vis the Constitutional Amendment. While in the Berubari Union in 1960, the SC held that the Preamble is not a part of the Constitution, in Kesavanada Bharati 1973, it reversed its opinion. The majority in the Kesavananda Bharati case held that the Preamble is a part of the Constitution, and it can be amended, but, Parliament cannot amend the basic features of the Preamble. The court observed, “The edifice of our Constitution is based upon the basic element in the Preamble. If any of these elements are removed, the structure will not survive, and it will not be the same Constitution and will not be able to maintain its identity. The Preamble is amended once in 1976 through the 42nd Amendment Act, which in essence came after the 1973 ruling of the SC. Thus, the Preamble was amended even when it was the part of Basic Structure of the Constitution.
Now the question is whether, through a Private member Bill, the Constitution can be amended. A Private Member can introduce a CAB and is not barred from it except that s/he has to satisfy some conditions as discussed at the beginning of this Article. As the Constitution can be amended in three ways, it depends on the nature of the CAB introduced by the Private Member and the subsequent support/majority they get in passing it into a Constitutional Amendment Act. As also subject to judicial scrutiny as to whether such amendments fall foul of the Basic Structure. Having said that, the attempt to amend the Preamble at this juncture where there is a general lack of faithfulness to the Constitution, especially among the governing class, would be seen as another step towards tinkering with the original Constitution. In any case, the Preamble is neither a source nor a limitation on the power of the executive. Thus such proposed amendments will not serve any purpose but only lead to a political slugfest and legal challenges.

THE WAY FORWARD:

• The Private Member Bills have immense scope for furthering and deepening the participation of individual MPs in the parliamentary process and democratic governance. Thus, the MPs must utilize these opportunities fully, which will contribute towards enhancing the quality of lawmaking.
• The government of the day must have an open mind towards these Bills so that MPs will be encouraged to pilot them, which will reduce the dependency of the government over the administration for lawmaking.
•  It is necessary to provide expert advice, secretarial assistance, knowledge support, etc., for the MPs in a sustained manner. This will help improve the understanding of the MPs concerning critical issues and raise their capacity to formulate relevant legislative proposals.
• It goes without saying that using the Private Member Bill route for scoring political brownie points or to garner publicity will create a negative climate and will undermine the sanctity of this instrument of democracy.

THE CONCLUSION: It is a healthy sign that more than 150 Private Member Bills have been introduced in the 2021 Winter session of the Parliament. But, the chance for success of any of them is highly doubtful given the history. This must be changed. The Private Member Bills are vehicles to channel the grassroots issues into legislative proposals and actual laws. Thus, the governments must encourage and actively support this process. However, using this tool for personal aggrandizement, publicity, or further ideological considerations, as is seen in the Preamble amendment saga, needs to be eschewed.

QUESTIONS:

• What are Private Member Bills? To what extent it can be said that this device has been helpful for MPs from the opposition side to influence the policy decisions of the government of the day.
• “The instrumentality of Private Member Bills serves no purpose as none of them has been passed by the Parliament in the past five decades” Critically Examine
•  “As the Preamble of the Constitution does not confer any right on the citizen, the attempt to add lofty ideals through Amendments is nothing but a waste of political energy and Parliamentary resources”. Comment.

THE ECONOMIC DEVELOPMENT

1. NEW PAYMENT SYSTEM FOR FEATURE PHONE USERS:” UPI123PAY”

THE CONTEXT: The Reserve Bank of India, launched the country’s most famous unified payments interface (UPI) service for feature phones. Termed as UPI123PAY, the service will allow 40 crore feature phone users across India to access the payment service.

THE EXPLANATION:

• As of now,UPI was available only across all smartphones in India but with the latest move, feature phone users will also be allowed to send and receive payments.
• The UPI123Pay service is a three-step method to initiate and execute services for users, which will work on phones which do not have an option for internet connection. Presently there are an estimated 40 crore mobile phone users who possess feature phones.
• These users will now be able to undertake a host of transactions by 1. calling an IVR (interactive voice response) number, 2. app functionality in feature phones, 3. missed call-based approach and 4. also proximity sound-based payments.
• Users will be able to make payments to their friends and family, pay their utility bills, recharge FASTags, pay mobile bills and also check their account balances, the central bank said, adding customers will also be able to link bank accounts, set or change UPI PINs.

2. CABINET APPROVES NATIONAL LAND MONETIZATION CORPORATION

THE CONTEXT: The Union Cabinet, chaired by Prime Minister has approved the setting up National Land Monetization Corporation (NLMC),it will be wholly owned Government of India company with an initial authorized share capital of Rs 5000 crore and paid-up share capital of Rs 150 crore.

THE EXPLANATION:

• NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies. The proposal is in pursuance of the Budget Announcement for 2021-22.

SIGNIFICANCE?

• At present, CPSEs hold considerable surplus, unused and under used non-core assets in the nature of land and buildings. For CPSEs undergoing strategic disinvestment or closure, monetization of these surplus land and non-core assets is important to unlock their value.
• NLMC will support and undertake monetization of these assets. This will also enable productive utilization of these under-utilized assets to trigger private sector investments, new economic activities, boost local economy and generate financial resources for economic and social infrastructure.
• NLMC is also expected to own, hold, manage and monetize surplus land and building assets of CPSEs under closure and the surplus non-core land assets of Government owned CPSEs under strategic disinvestment.
• Efficiency:NLMC will undertake surplus land asset monetization as an agency function. It is expected that NLMC will act as a repository of best practices in land monetization, assist and provide technical advice to Government in implementation of asset monetization programme.
• Technical Experts: NLMC will have necessary technical expertise to professionally manage and monetize land assets on behalf of CPSEs and other Government agencies. The Board of Directors of NLMC will comprise senior Central Government officers and eminent experts to enable professional operations and management of the company.  The Chairman, non-Government Directors of the NLMC will be appointed through a merit-based selection process.

NLMC will be a lean organization with minimal full time staff, hired directly from the market on contract basis.  Flexibility will be provided to the Board of NLMC to hire, pay and retain experienced professionals from the private sector.

• Nodal Agency: Department of Public Enterprise, Ministry of Finance, will set up the company and act as its administrative ministry.

3. CABINET NOD FOR MINING NEW MINERALS

THE CONTEXT: The Union Cabinet, chaired by Prime Minister has approved the proposal of the Ministry of Mines for amendment of Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as ‘the Act’) for specifying the rate of royalty in respect of Glauconite, Potash, Emerald, Platinum Group of Metals (PGM), Andalusite, Sillimanite and Molybdenum.

THE EXPLANATION:

• The approval would ensure auction of mineral blocks in respect of Glauconite, Potash, Emerald, Platinum Group of Metals, Andalusite and Molybdenum thereby reducing import of these minerals, generating empowerment opportunity in the mining sector as well as manufacturing sector which will help in ensuring inclusive growth of a large section of the society.
• The approval will lead to import substitution in respect of many important minerals for the economy of the country thereby saving valuable forex reserves. It will reduce country’s foreign dependency through the local production of minerals.
• The Act was amended in 2015 to usher in new regime of granting mineral concessions through auction to ensure transparency and non-discrimination in allocation of mineral wealth of the country.
• To give further impetus to the mineral sector, the Act has been further amended in 2021. Under the reforms, the Government has given major boost to auction of mineral blocks, increasing production, improving ease   of   doing   business   in   the   country   and   increasing contribution of mineral production to Gross Domestic Product (GDP).

What is the Need?

In the last 4-5 years, Central Agencies like Geological Survey of India and Mineral Exploration Corporation Ltd. have carried out exploration and handed over reports to the State Governments of several blocks of minerals which are hitherto not mined in the country.

 When it comes to minerals such as Glauconite/ Potash, Emerald, Platinum Group of Metals (PGM), Andalusite and Molybdenum, the country is totally dependent on import of these minerals for meeting our requirements.

As a major step towards mineral self-sufficiency, many State Governments have identified such mineral blocks for auction. However, the rate of royalty for these minerals were not separately provided and was not appropriate for giving impetus to mining of these minerals.

Minerals like Glauconite and Potash are used as fertilizer in agriculture. Platinum Group of Metals (PGM) are high value metal used in various industries and new innovative applications. Minerals like Andalusite, molybdenum are vital minerals used in industrial applications.

Value Addition:

The Mines and Minerals (Development and Regulation) Amendment Bill, 2021

Highlights:

• Removal of restriction on end-use of minerals: The Act empowers the central government to reserve any mine (other than coal, lignite, and atomic minerals) to be leased through an auction for a particular end-use (such as iron ore mine for a steel plant). Such mines are known as captive mines.  The Bill provides that no mine will be reserved for particular end-use.
• Sale of minerals by captive mines: The Bill provides that captive mines (other than atomic minerals) may sell up to 50% of their annual mineral production in the open market after meeting their own needs.   The central government may increase this threshold through a notification.  The lessee will have to pay additional charges for mineral sold in the open market.
• Auction by the central government in certain cases: Under the Act, states conduct the auction of mineral concessions (other than coal, lignite, and atomic minerals). Mineral concessions include mining lease and prospecting license-cum-mining lease.  The Bill empowers the central government to specify a time period for completion of the auction process in consultation with the state government.  If the state government is unable to complete the auction process within this period, the auctions may be conducted by the central government.
• National Mineral Exploration Trust (NMET): The Bill provides for the constitution of a Statutory body named the National Mineral Exploration Trust (NMET). It will see the overall functioning of the mining sector.
• National Mineral Index(NMI): The Bill proposes to introduce an index-based mechanism by developing a National Mineral Index(NMI). Various statutory payments and future auctions can use the National Mineral Index in the future.

4. THE INLAND WATER SYSTEM FOR THE NORTHEAST

THE CONTEXT: The Indian government has undertaken the ambitious Jal Marg Vikas Project (JMVP) with an investment of about Rs 4,600 crore for the capacity augmentation of NW-1 (Ganga) for safe and sustainable movement of vessels of up to 2000 tonnes. After the MV Lal Bahadur Shastri’s journey, Inland Waterway Authority of India is looking to run regular scheduled services on these waterway routes.

THE EXPLANATION:

• The docking of the vessel carrying 200 MT of food grains for the FCI has rekindled hope for the inland water transport system which the landlocked northeast depended on heavily before India’s independence in 1947.
• It passed through Bhagalpur, Manihari, Sahibganj, Farakka, Tribeni, Kolkata, Haldia, Hemnagar in India, Khulna, Narayanganj, Sirajganj and Chilmari in Bangladesh and again to India on National Waterway-2 (NW2, river Brahmaputra) through Dhubri and Jogighopa covering 2,350 km.

How did the water cargo service through Bangladesh come about?

• The resumption of cargo transport service through the waterways in Bangladesh has come at a cost since the Protocol on Inland Water Transit and Trade was signed between the two countries.
• India has invested 80% of ₹305.84 crore to improve the navigability of the two stretches of the IBP (Indo-Bangladesh Protocol) routes — Sirajganj-Daikhowa and Ashuganj-Zakiganj in Bangladesh.

Indo-Bangladesh Protocol

The Inland Water Transit & Trade exists between India and Bangladesh under which inland vessels of one country can transit through the specified routes of the other country.

The existing protocol routes are:

• Kolkata-Pandu-Kolkata
• Kolkata-Karimganj – Kolkata
• Rajshahi-Dhulian-Rajshahi
• Pandu-Karimganj-Pandu

For inter-country trade, certain ports of call have been designated in each country.

These Ports of call generally act as an intermediate stops for a ship on its scheduled journey for unloading and loading of cargo or taking on supplies or fuel and maintenance and refurbishing is carried out.

These are:

India

• Haldia (West Bengal)
• Kolkata (West Bengal)
• Pandu (Assam)
• Karimganj (Assam)
• Silghat (Assam)

Bangladesh

• Narayanganj
• Khulna
• Mongla
• Sirajganj
• Ashuganj

Significance:

• The waterways will not only remove geographical hindrance but also provide an economical and convenient transportation for the businesses and people of the region.
• In line with India’s “Act East” policy, the Indian Ministry of Ports, Shipping and Waterways has taken up several infrastructure projects on National Waterway-1, IndoBangladesh Protocol route and NW2, through the Inland Waterways Authority of India (IWAI) to improve connectivity with the Northeastern region through waterways via Bangladesh.

National Waterway:

In 2016, the government notified 111 inland waterways as National Waterways of India under the National Waterways Act, 2016. Of these, 13 National Waterways are operational for shipping and navigation and cargo/passenger vessels.

The Inland Waterways Authority of India under the Ministry of Shipping is developing the National Waterways for commercial navigation, including with assistance from the World Bank.

THE GOVERNMENT SCHEMES/INITIATIVES IN NEWS

5. GLOBAL CENTRE FOR TRADITIONAL MEDICINE IN INDIA

THE CONTEXT: The Union Cabinet, chaired by Prime Minister has approved the establishment of the WHO Global Centre for Traditional Medicine (WHO GCTM) in Jamnagar, Gujarat by signing a Host Country agreement between the Government of India and the World Health Organization (WHO).

THE EXPLANATION:

The WHO GCTM will be established in Jamnagar under the Ministry of AYUSH.  This would be the first and only global outposted Centre (office) for traditional medicine across the globe.

Benefits:

• To position AYUSH systems across the globe
• To provide leadership on global health matters pertaining to traditional medicine.
• To ensure quality, safety and efficacy, accessibility and rational use of traditional medicine.
• To develop norms, standards, and guidelines in relevant technical areas, tools and methodologies, for collecting data undertaking analytics, and assess impact. Envisage WHO TM Informatics centre creating a collaborative of existing TM Data banks, virtual libraries, and academic and research institutes.
• To develop specific capacity building and training programmes in the areas of relevance to the objectives and conduct training programmes in campus, residential, or web-based, and through partnerships with the WHO Academy and other strategic partners.

The WHO GCTM would provide leadership on all global health matters related to traditional medicine as well as extend support to member countries in shaping various policies related to traditional medicine research, practices and public health.

The Ministry of AYUSH has collaborated with WHO on many fronts including developing benchmarks documents on training and practice of Ayurveda and Unani System, introducing a second module in the Traditional Medicine Chapter of the International classification of Diseases-11, developing apps like M-yoga, supporting the work of International Pharmacopeia of Herbal Medicine (IPHM) and other research studies etc.

 Significance:

• Traditional medicine is a key pillar of health care delivery systems and plays a crucial role in maintaining good health and well-being. Safe and effective traditional medicine will play a significant role in ensuring all people have access to quality essential health care services and safe, effective and affordable essential medicines as the world approach the ten-year milestone for Sustainable Development Goals in 2030.
• The WHO-GCTM will identify various challenges faced by the countries in regulating, integrating and further positioning Traditional Medicine in respective countries.

THE PRELIMS PRACTICE QUESTIONS

QUESTIONS OF THE DAY 10^TH MARCH  2022

Q. Which of the following pairs is/are incorrectly matched?

1. National Waterway 1 – Ganga River
2. National Waterway 3 – East Coast Canal
3. National Waterway 5 – West Coast Canal

Select the correct answer using the code given below:

a) 1 only

b) 1 and 2 only

c) 3 only

d) 2 and 3 only

ANSWER FOR 9^th MARCH 2022

Q1. Answer: D

Explanation:

Both the statements are correct

SARKARIA COMMISSSION

Recommendations on Appointment of Governor:

• should be an eminent person.
• must be a person from outside the State.
• not have participated in active politics at least for some time before his appointment.
• he should be a detached person and not too intimately connected with the local politics of the State.
• he should be appointed in consultation with the Chief Minister of the State, Vice-President of India and the Speaker of the Lok Sabha.
• His tenure of office must be guaranteed and should not be disturbed except for extremely compelling reasons and if any action is to be taken against him, he must be given a reasonable opportunity for showing cause against the grounds on which he is sought to be removed. In case of such termination or resignation of the Governor, the Government should lay before both the Houses of Parliament a statement explaining the circumstances leading to such removal or resignation, as the case may be.
• After demitting his office, the person appointed as Governor should not be eligible for any other appointment or office of profit under the Union or a State Government except for a second term as Governor or election as Vice-President or President of India, as the case may be and
• At the end of his tenure, reasonable post-retirement benefits should be provided.
• The Punchhi commission recommended that Governor shall have fixed tenure.

1. Elective identity, religion and gender READ MORE
2. Culture and Behaviour READ MORE

1. Water management needs a hydro-social approach READ MORE   
2. Is eco-shaming enough to save the planet? READ MORE

1. Skewed social mindset: Break silence over rape to deter crime & heal victims READ MORE
2. Women as Change Agents in Corporate India READ MORE
3. India’s gender empowerment enigma READ MORE

1. Governors must be fair in inviting CMs READ MORE
2. Federalism And The Idea Of Regionalism READ MORE
3. Call for Indianisation is a fallacy, if not a fraud on the Constitution READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. UPI123Pay: Payment solution for feature phone users READ MORE
2. Reviving the inland water transport system for the Northeast READ MORE
3. Shackleton’s ship ‘Endurance’ found beneath Antarctic ice, 100 years on READ MORE
4. National Land Monetization corporation: Cabinet clears agency to monetise Govt land READ MORE
5. US man who got first pig heart transplant dies after 2 months READ MORE
6. DCGI gives emergency use nod to SII’s Covovax for 12-17 years age group READ MORE
7. Cabinet approves establishment of WHO Global Centre for Traditional Medicine in India READ MORE
8. More than 75% of Amazon rainforest near tipping point, may transform into dry savanna: Study READ MORE

Main Exam    

GS Paper- 1

1. Skewed social mindset: Break silence over rape to deter crime & heal victims READ MORE
2. Women as Change Agents in Corporate India READ MORE
3. India’s gender empowerment enigma READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Governors must be fair in inviting CMs READ MORE
2. Federalism And The Idea Of Regionalism READ MORE
3. Call for Indianisation is a fallacy, if not a fraud on the Constitution READ MORE

INTERNATIONAL ISSUES

1. India should keep door open for talks with Pak READ MORE
2. INDIA’S PRUDENT DIPLOMACY IN WAR READ MORE
3. Five Reasons Why the Ukraine War Will Adversely Impact India-UK Ties READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Our country is caught between a rock and a hard place READ MORE
2. Corruption’s consequences READ MORE
3. To reduce oil import, focus on renewables READ MORE

ENVIRONMENT AND ECOLOGY  

1. Water management needs a hydro-social approach READ MORE   
2. Is eco-shaming enough to save the planet? READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Elective identity, religion and gender READ MORE
2. Culture and Behaviour READ MORE

Questions for the MAIN exam

1. Discuss the issues associated with efficient freshwater management in India.
2. ‘The call for Indianization of India’s legal system is evidently a fallacy and does not consist in a call to constitutionalize despite the false pretext’. Discuss the statement in the light of the recent call for the Indianization of India’s legal system.
3. How far do you agree with this view that to address the issue of antinomies in Indian federalism, there is a need to give more autonomy to the state governments? Analyse your view.

QUOTATIONS AND CAPTIONS

• Wherever the art of medicine is loved, there is also a love of humanity.
• A legal system is a department of values. So is the case with ideology, ethics and morality, including political morality. Any particular orientation or identity of a legal system or constitutional system depends on the values and ideology on which it is built and being developed.
• The call for Indianization of India’s legal system is evidently a fallacy and does not consist in a call to constitutionalize despite the false pretext.
• Faith and belief, emotions and attitudes take centre-stage, which is why intellectual, emotional and spiritual factors throughout our growing years and after, play significant roles.
• Strong and autonomous state governments can offset the antinomies that Indian federalism is in the habit of reproducing.
• The strong and autonomous state governments, to the possible extent that federalism permits, can offset the antinomies that Indian federalism is in the habit of reproducing, such as the misuse of extraordinary powers of Parliament.
• In federalism it is important to share the federal powers—precisely for shared-rule and self-rule—but it is all the more important to use those powers for achieving constitutional goals and morality and also for holding out together the beautiful Indian diversity.
• India and the UK face an unprecedented trust deficit in light of Russia’s invasion of Ukraine. As Russia’s war efforts expand, so, too, will this deficit widen.
• The troubling resistance to criminalising marital rape neatly encapsulates the concerns of a violently patriarchal society.
• Governors often exercise discretion in deciding who to invite to form the government, especially in the case of close elections. They must be fair and judicious, and discharge their duty without fear or favour.
• A hybrid water management system is necessary, where the individual, a community and society have definite roles in the value chain. The challenge is not to be techno-centric but anthropogenic.

50-WORD TALK

• Russia and Ukraine will Thursday begin high-level talks, the first since their war. Prime Minister Volodymyr Zelenskyy says Ukraine won’t join NATO. Russia claims it will not topple his regime. The missteps of the two countries caused suffering for their people, and the world. Even belated wisdom must be welcomed.
• Consensus is claimed in Pakistan between elected govt and the army over the National Security Policy though the goal of peace with neighbour contradicts the military objective of India being an existential threat. Imran Khan has pontificated about Pakistan drawing geo-economic benefits from its geo-strategic location. Army Chief Bajwa has also spoken about burying the past. But strategic ambiguity prevails over the demand for rolling back Article 370 before talks.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and also exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

[WpProQuiz 177]

THE CONTEXT: The Haryana government has recently brought in the Haryana State Employment of Local Candidates Act 2020, which provides for reservation in certain categories of private sector employment. The law has been subject to critical judicial scrutiny while it is also objected to by industry associations. Earlier, states like Andhra Pradesh have also provided for such reservations in the private sector. In this write-up, we examine these issues in detail.

THE SALIENT FEATURES OF THE HARYANA STATE EMPLOYMENT OF LOCAL CANDIDATES ACT 2020

RESERVATION IN THE PRIVATE SECTOR:

• On January 15, 2022, the government notified the “Haryana State Employment of Local Candidates Act, 2020”.
• The law makes it mandatory for all employers in the state to reserve 75 percent of the jobs offering a monthly gross salary or wages of up to ₹30,000 for candidates “domiciled in the state of Haryana”.
• The state government also relaxed the residency requirement from 15 to five years for a person to get a bona fide resident certificate in the state to provide some flexibility to the private companies in hiring.
• This law applies to new recruitments and will not come into effect from retrospective effect.
  Exclusion has been made for Central and State governments and entities owned by them.

APPLICATION OF THE ACT:

• The Act applies to all the ‘Employers’ in the state.
• This includes all companies, partnership firms, societies, trusts, limited liability partnership firms and.
• Any person or employer that employs 10 or more employees in any trade, business, manufacturing unit, or enterprise.
• The law provides for fines between ₹10,000 and ₹2 lakh for violation of the provisions.

SUNSET CLAUSE:

• The law will have a sunset clause and will cease after ten years of enactment.

MANDATORY REGISTRATION:

• All employers in the state have been directed to register their existing employees garnering a monthly pay of not exceeding ₹30,000 on the designated portal within three months and can now initiate any new recruitment in this pay bracket only after completing this process.

ENSURING COMPLIANCE:

• All employers will also need to file a quarterly report on the government’s designated portal providing information regarding the local candidates employed and appointed in this pay bracket.
• These reports would be subject to scrutiny by designated officials, who will be empowered to ask the employer to furnish the documents or conduct verification.

PROVISION OF EXEMPTION:

• The government may exempt certain industries by notification and has so far exempted new start-ups and new Information Technology Enabled Services (ITES) companies, as well as short-term employment, farm labor, domestic work, and promotions and transfers within the state.
• There is a provision also for an exemption if an adequate number of local candidates of desired skill or proficiency are not available for a particular category of jobs. But the government can accept or reject the claim or direct the company to train local candidates in the desired skills.

THE ARGUMENTS OF THE GOVERNMENT IN FAVOUR OF THE ACT

• One of the key arguments of the government has been that urbanization and industrialization have led to substantial land acquisition in the state, which has historically been an agrarian society.
• The government believes this has led to a reduction in employment opportunities in the agriculture sector for the local youth and the law will help create new job opportunities for them and also encourage skill development.
• It also believes it will reduce the dependency of employers in Haryana on migrant workers and improve their efficiencies.
• The private jobs reservation was part of the election manifesto of the alliance partner in the coalition government in the state.
• Social justice is an important aim of any welfare state, and the law is enacted in this direction.
• According to the state, the Act makes a valid classification by grouping local candidates who are unemployed and domiciled in Haryana, irrespective of their caste, creed, sex, place of origin or place of birth and their social status, to achieve the object of providing suitable employment in the private sector.
• It says that the Act makes a “geographical classification” based on domicile and in furtherance of the fundamental right to life, livelihoods, and health conditions of persons domiciled in the state.
• It claimed that there is no restraint against a state legislature from creating geographical classification to incentivize and grant concessions to citizens or industrial units.

A CRITICAL SCRUTINY OF THE ACT

CONCERNS OF THE INDUSTRY:

• Industry bodies have raised concerns about the implementation of a law that is discriminatory and against the concept of one nation. They believe this will substantially increase their compliance burden, especially on small and micro-enterprises.
• One of the key concerns of the industry is also whether enough workers will be even available for jobs in trades that are dominated by workers from certain clusters of the country, such as construction and manufacturing as well as in the services sector such as hospitality and retail.
• Almost all of the employees in MSMEs fell under the ₹30,000 pay bracket. Such industries hire and let go of workers as per demand, it would not always be possible to find local employees when required.

IMPACT ON INVESTMENT CLIMATE:

• It is said that this will impact the business-friendly image of the state’s ease of doing business rankings and may also discourage fresh investments by industries.
• The Federation of Indian Chambers of Commerce and Industry (FICCI) has said that the law would “spell disaster” for private investment in the state and impede industrial development.
• This law is also held to be going back to Inspector Raj prevalent in the pre-1990 LPG era.

STATE INTERVENTION IN THE MARKET:

• Any rule which tries to artificially control the internal functioning of a private enterprise against the market will affect its competitiveness in the market and hurt its productivity.
• Minimal government interference is usually an indicator of a mature economy; in this case, that appears to have gone out of the window and is also against “Minimum Government and Maximum Governance”.

CHANCES OF RELOCATION OF INDUSTRIES:

• If companies in Haryana have difficulty finding skilled resources as a result of a law, they may be forced to relocate to other cities due to insufficient local manpower.
• This will further reduce the scope of employment.

ECONOMIC FRAGMENTATION:

• This Act violates the fundamental idea of the Indian economy as one unit and dilutes steps to integrate the markets, which may lead to labor market fragmentation.
• There would be an exodus of low-paid workers as they would be unable to find work unless their states of origin give them sufficient job opportunities.
• What if the other states also start following the Haryana way?

IMPACT ON COMPANIES:

• Jobs in the private sector is based “purely” on the “skills and the analytical bent” of the employee.
• Other than potentially increasing costs for companies, the compliance burden on them will be huge, which also may provide opportunities for rent-seeking for bureaucracy.

CONSTITUTIONAL ISSUES:

• It is held that the new law went against constitutional provisions and violates Articles 14, 15, and 19 of the Constitution ((Read ahead)
• The core issue is whether a state could restrict employment based on domicile that too in the private sector.
• The stay granted by the Punjab and Haryana High Court was vacated by the Supreme Court. But it directed the
• High Court to decide on the issue within a month and asked the state government not to take any coercive steps against the employers for the time being.

CONSTITUTIONAL ISSUES INVOLVED IN THE ACT

VIOLATES ARTICLE 14 and 15:

• The plea filed in the Court states that the Act violates Article 14 (equality before law) and Article 15, which prohibits discrimination on various grounds religion, race, caste, sex, or place of birth.

VIOLATES ARTICLE 16:

• Article 16 of the Constitution specifically provides for equality of opportunity for all citizens in public employment.
• It prohibits discrimination on several grounds, including place of birth and residence.
• However, it permits Parliament to make a law that requires residence within a State for appointment to a public office.
• This enabling provision is for public employees and not for private-sector jobs. And the law needs to be made by Parliament and not by a State legislature.

VIOLATES ARTICLE 19:

• It stands in violation of Article 19 of the Indian Constitution, which guarantees the right to freedom, including to reside and settle in any part of the Indian territory and practice any profession, business, or trade.
• Article 19(1)(g) of the Constitution guarantees freedom to carry out any occupation, trade, or business. There may be reasonable restrictions “in the interests of the general public”, and in particular related to specifying any professional or technical qualifications, or to reserve a sector for a government monopoly.
• This Act, by requiring private businesses to reserve 75% of lower-end jobs for locals, encroaches upon their right to carry out any occupation.

CONTRARY TO COMMON CITIZENSHIP:

• The plea states that the Act is contrary to the very idea of common citizenship for the Union of India and that it fails to uphold the federal structure of the Union of India, which is part of the basic structure of the Constitution of India.
• India was envisaged as a Union of States with Single citizenship, which necessarily implied that States were not entitled to either bestow citizenship individually or any resembling privilege.

VIOLATES 50 PERCENT NORM:

• The question of permissibility also arises if the Indira Sawhney vs Union of India case is considered, where the Supreme Court had capped the reservation limit in public sector jobs at 50% in 1992.
• Legal experts have said that one may then contend that the reservation limit in private sector employees should not exceed that prescribed for public services.

AGAINST RESERVATION JURISPRUDENCE:

• The Supreme Court, in 2002, ruled that preference given to applicants from a particular region of Rajasthan for appointment as government teachers was unconstitutional. It said that reservations could be made for backward classes of citizens, but this cannot be solely on account of residence or domicile.
• In 1995, Rules in Andhra Pradesh that gave preference to candidates who had studied in the Telugu medium were struck down because they discriminated against more meritorious candidates.

POLITICS OF DOMICILE RESERVATION: AN OVERVIEW

Domicile politics (Sons of the soil) is nothing new to India, and Haryana is far from the first state to enact such restrictive laws. Earlier, Maharashtra, Andhra Pradesh, Karnataka, and Madhya Pradesh enacted laws requiring locals to be given preference in private jobs. However, each had to overcome its own set of obstacles, ranging from Constitutionality to compliance. Andhra Pradesh was the first state to enact such a law in the face of rising unemployment in 2019, but it was challenged in the High Court there. Karnataka too passed such laws, most recently in October last year, asking the private sector to give preference to local candidates, but companies did not know how to ensure compliance. Madhya Pradesh too has promised to bring in a 70% private sector job reservation quota for locals. In August last year, Maharashtra too joined the bandwagon and announced that it would make it mandatory for the private sector to reserve 80% of its jobs for residents only.

ANDHRA PRADESH EMPLOYMENT OF LOCAL CANDIDATES IN THE INDUSTRIES/FACTORIES ACT, 2019

The Andhra Pradesh law, passed by the Assembly in July 2019, and notified promptly next month, reserved 75% of jobs for locals in industries and factories, including any joint venture and project taken up under the public-private partnership (PPP) model. Where suitable local candidates were not available, the industry or factory would be given three years to train local candidates with “active collaboration of the Government”. The government also laid down that industry would have to apply for any exemptions from the Department of Labour, Employment and Training before sourcing employees from other states.
For now, the priority for the state, according to industry experts, is on getting new industries to absorb the local candidates in phases, as implementing the law for the existing workforce would entail terminating employees who may be from other States. The government is not forcing employers to implement the Act for various reasons, which mainly include the prevailing gloomy industrial scenario, largely attributable to the pandemic’s aftermath.
While the government has begun training programs to develop skilled labor to cater to various sectors and implement the Act, an advocate has filed a writ petition challenging the law’s constitutional validity. The state, the advocate, stated, has no power to prescribe the domicile or place of birth or place of residence as a requirement for public employment.

THE WAY FORWARD

HUMAN CAPITAL FORMATION:

• When it comes to investment, Haryana has not been lacking. But, Investors, stakeholders, and industry bodies on multiple occasions have stated that there is a shortage of adequately skilled local workforce — especially in the technology sector.
• Thus, skill development programs need to be undertaken on a war footing in collaboration with industries, vocational training institutes, etc.
• The states need to work in tandem with the Ministry of Skill Development and Entrepreneurship for implementing the National Skill Development Mission etc.

RAPID EMPLOYMENT GENERATION:

• According to CMIE data, Haryana’s unemployment rate has been higher than the national average for the past four years. In April 2020, approximately 40% of Haryana’s job seekers returned home empty-handed.
• Thus, it is imperative to fast-track employment opportunities for the youth, and a good start would be filling up the state level and national level vacancies in governmental posts that run into lakhs.
• Secondly, start-up ecosystems need to be promoted for entrepreneurship and employment generation.

PERSUASION THAN COERCION:

• Given the bleak employment situation in the backdrop of the reported loss of millions of jobs during the pandemic, it is no surprise that the leadership in every state seeks to find employment opportunities for its youth.
• But, a more persuasive and incentivizing approach can achieve the objective than a coercive approach. For instance, tax incentives for companies employing local candidates, ease of compliance for such companies, land concessions, subsidies, etc.
• If reservations have to be made, they should begin with a lower threshold of 20%-25% and give time for the state’s youth to inculcate and hone their specialized skill sets.

JUDICIAL DETERMINATION:

• Even though the Constitution allows the Parliament to prescribe a residential criterion for employment to public posts, it is doubtful whether such a measure can be extended to the private sector.
• Thus, an authoritative pronouncement by the apex Court would provide clarity to the issue.

SHUN POLITICAL NATIVISM:

• The broader trend of raising the sons of the soil issue for electoral gains in States will hurt the investment climate across the country.
• If more states follow suit, there will surely be an extreme level of talent crunch across industries in different States, and the free movement of India’s manpower resources within the nation will be threatened.
• Thus, political nativism may lead to parochial economics which in turn can create social unrest in the polity.

BALANCED AND RAPID REGIONAL DEVELOPMENT:

• The rise in regional inequalities (east vis-a-vis west and south) since the 1990s has deepened social divisions, with migration largely headed towards the western and southern States where infrastructure is better developed.
• The setting up of educational and skills institutions in backward areas can bridge the gap between the states and within the states(urban-rural) and these regions can turn into hubs of economic activity.
• The Aspirational District Programme of the GoI and various schemes for MSME development have huge potential in this regard.

THE CONCLUSION:  The Constitution conceptualizes India as one nation with all citizens having equal rights to live, travel, and work anywhere in the country. These State laws seem to go against this vision by restricting the right of out-of-State citizens to find employment in the state. This restriction may also indirectly affect the right to reside across India as finding employment becomes difficult. Beyond the question of Constitutionality, what is flagged by such developments is the state of the economy, especially the labour economy. Thus, sustainable employment generation policies and programs formed and implemented with wide-ranging consultations, especially with the industries, will surely be considered as good politics and good economics.

QUESTIONS:

• Explaining the salient features of the Haryana State Employment of Local Candidates Act 2020, comment upon the challenges in its implementation.
• How far do you think that providing domicile reservation by states through enactments can solve the problem of unemployment?
• Critically analyze the Constitutional issues involved in making domicile requirements mandatory for private sector employment.
• “Political nativism may be good politics but is parochial economics”. Illustrate and comment.
• “Minimum government and Maximum governance philosophy of the government entails regulation and not control” Examine the statement in the context of state legislation mandating reservation in the private sector.
• The social justice pledge of the Indian Constitution is at variance with the quest for efficiency of the private sector. Thus, affirmative action programs should be limited to the public sector only. Critically Examine.