INDIAN POLITY

1. ‘ONE NATION, ONE UNIFORM’ FOR POLICE

THE CONTEXT: Addressing the first Chintan Shivir (brainstorming session) of state home ministers and top police officers Prime Minister pitched the idea of “One Nation, One Uniform” for Indian police forces.

THE EXPLANATION:

Prime Minister’s push for unity

• Prime Minister’s suggestion “One Nation, One Uniform” is in line with his broader attempt to introduce a uniform set of policies across the country. In August 2022 the Ministry of Chemicals and Fertilisers announced that it had implemented the “One Nation One Fertiliser” The Government of India in August 2019 had introduced the “One Nation One Ration Card” scheme.
• The Indian Prime Minister has also repeatedly suggested the implementation of “One Nation, One Election”, and adopting a single voter list for all polls.
• While pitching his new uniform scheme, he said, “There is one important issue for our nation. Currently in our country, there is a ‘one nation, one ration’ card; ‘one nation, one mobility’ card; ‘one nation, one grid’ and a ‘one nation, one sign language’. Just like this, all the states should think of a ‘one nation, one uniform’ policy.”

Law and order is a State Subject

• The Indian Constitution puts police forces under the jurisdiction of state governments, and each of the 28 states have their own police force. Both ‘public order’ and the ‘police’ are placed in List II (State List) of the Seventh Schedule of the Constitution, which deals with the division of powers between the Union and States.
• In the circumstances, it is unclear how the PM’s suggestion, if the government were to take it up seriously, might be implemented.
• While police personnel in India are often associated with the colour khaki, their uniforms do differ in varying degrees in different regions. Since state governments and even an individual force can decide the uniform their personnel wear, there are at times inconsistencies in their official attire. For example:
• The Kolkata Police wear white uniforms.
• Puducherry Police constables wear a bright red cap with their khaki uniforms.
• Delhi Traffic Police personnel wear white and blue uniforms.

INTERNATIONAL RELATIONS

2. WHAT IS ANTI-SEMITISM AND WHY IS IT FINDING A NEW VOICE ACROSS THE GLOBE?

THE CONTEXT: Recently the clothing giant Adidas announced that it would be cutting all ties with Kanye West, now known as Ye, following a series of concerning comments that were that were widely deemed to be anti-Semitic.

THE EXPLANATION:

What is anti-Semitism?

• The term anti-Semitism refers to any form of prejudice against the Jewish people. However, the term itself is a misnomer as Semitic designates a language group, not a race. Though anti-Semitism can linguistically be used to describe a prejudice against speakers of the Semitic languages (including Arabs and Ethiopians,) in practical terms, it is commonly used specifically to pertain to Jews.
• According to the International Holocaust Remembrance Alliance, an intergovernmental organisation formed in 1998, the following should be used as a working definition of anti-Semitism:
  • “Anti-semitism is a certain perception of Jews, which may be expressed as hatred toward Jews. Rhetorical and physical manifestations of anti-semitism are directed toward Jewish or non-Jewish individuals and/or their property, toward Jewish community institutions and religious facilities.”
• Racial anti-Semitism, most commonly associated with the Nazis, stems from a belief that Jews are a distinct, inferior race with inherent genetic traits. This form usually manifests in the belief that Jews need to be exterminated altogether.
• Religious anti-Semitism traces its roots to the early days of Christianity and is accompanied by a notion that Jews should be converted to other faiths.

Current instances of anti-Semitism

• From far-right demonstrators in the US, attacks on synagogues in Sweden, arson attacks on kosher restaurants in France and an increase in crimes against Jews in the UK, globally, anti-Semitism is exploding once again.
• According to the Anti-Defamation League (ADL), an annual audit of anti-Semitic incidents in the US showed a 34 per cent increase from 2020 to 2021. In Germany, the number of violent anti-semitic attacks surged by more than 60 per cent in 2018 from the year before, while anti-Semitic acts in France that year increased by more than 70 per cent. Reports from Australia and Canada reflect a similar trend.

HEALTH ISSUES

3. WHO GLOBAL TB REPORT 2022

THE CONTEXT: Recently, the WHO released the Global TB Report 2022. The Report notes the impact of the COVID-19 pandemic on the diagnosis, treatment and burden of disease for TB all over the world.

THE EXPLANATION:

• According to the Report, India was among the eight countries accounting for more than two-third of the total TB patient count. The other seven countries were China, Pakistan, Indonesia, the Philippines, Nigeria & the Democratic Republic of the Congo.
• However, prior to the publication of the Global Report, India’s Ministry of Health and Family Welfare had communicated to WHO that the Ministry has already initiated domestic studies to arrive at a more accurate estimate. India’s data will be provided after the conclusion of studies by 2023. India is also conducting its own National Prevalence Survey to assess the true TB burden. The WHO Report also noted that India is the only country to have such a survey.
• The Ministry of Health and Family Welfare has stated that India’s TB incidence for the year 2021 is 210 per 100,000 population, compared to the baseline year of 2015 (incidence was 256 per lakh of population in India). In 2021, over 22 crore people were screened for TB in India. The Ministry says that the aim has been to find and detect more cases to arrest onward transmission of the disease in the community which has contributed to the decline in incidence.

Campaigns by India to end the infectious disease:

• The reported number of people newly diagnosed with TB fell from 7.1 million in 2019 to 5.8 million in 2020. Experts have noted that TB services, among many other services, were disrupted by the Covid-19 pandemic in 2021. Many people with TB were not diagnosed and treated.
• But in India, even during the pandemic, various measures were taken which led to the National TB Elimination Programme notifying over 21.4 lakh TB cases. The Ministry attributed the success in the detection of disease to the mandatory notification policy to ensure all cases are reported to the government. Further, intensified door-to-door active case finding drives were conducted to screen patients and ensure no household is missed.

Several Initiatives by the government for TB eradication

• ‘Pradhan Mantri TB Mukt Bharat Abhiyaan’ to eliminate TB by 2025.
• National Strategic Plan for Tuberculosis Elimination 2017-2025.
• National Tuberculosis Elimination Program (NTEP)- Centrally Sponsored Scheme.
• TB Harega Desh Jeetega Campaign.
• Bacillus Calmette–Guérin (BCG) vaccine included in the Indradhanush program.
• National TB Elimination Programme to meet the goal of ending the TB epidemic by 2025 the country, five years ahead of the Sustainable Development Goals (SDG) for 2030
• Two vaccines VPM (Vaccine Projekt Management) 1002 and MIP (Mycobacterium Indicus Pranii) have been developed and are under Phase-3 clinical trial.
• Ni-kshayPoshan Yojana: It provides Rs 500 support through direct benefit transfer to the patients.
• The government has also focused on utilizing technology and creating digital health IDs for TB patients under the Ayushman Bharat Digital Health Mission to ensure proper diagnostics and treatment are available.

VALUE ADDITION:

• TB is caused by a bacterium (mycobacterium tuberculosis) that mostly affect the lungs. It can spread when people with TB expel bacteria into the air, for example, by coughing. According to the Report, most people who develop the disease are adults. In 2021, men accounted for 56.5% of the TB burden, adult women (32.5%) and children (11%).
• TB is preventable and curable and around 85% of people who develop the disease can be successfully treated with a 4 to 6 months drug treatment.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

4. FOREST DECLARATION ASSESSMENT 2022

THE CONTEXT: According to the 2022 Forest Declaration Assessment report, Deforestation rates worldwide declined only modestly in 2021 by 6.3 per cent compared to the 2018-20 baseline.

KEY FINDINGS OF THE ASSESSMENT

• The report highlighted that, Global Forest loss decreased in 2021, but the crucial climate goal of stopping deforestation by 2030 would still be missed.
• Deforestation rates worldwide declined only modestly in 2021 by 6.3 per cent compared to the 2018-20 baseline, according to the 2022 Forest Declaration Assessment published October 24, 2022.
• Some 145 countries affirmed their commitment to halt and reverse forest loss and land degradation by 2030 at the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow (2021).
• According to report, Brazil was the world’s largest contributor to deforestation in 2021. The country marked a 3 per cent rise in the rate of deforestation in 2021 compared to the baseline 2018-2020.
• Bolivia and the Democratic Republic of the Congo underwent deforestation at 6 per cent and 3 per cent, Although Brazil didn’t show a large increase, its total deforestation rates each year remained high — making it the world’s largest contributor.
• Global tree cover increased by 130.9 million hectares over the past two decades. Three-quarters of the global gain was concentrated in 13 countries. The most significant improvements were observed in Russia (28.4 per cent), Canada (13.0 per cent), the United States (10.7 per cent), Brazil (6.2 per cent), and China (5 per cent).
• China showed the largest net gain in tree cover — 2.1 million hectares (Mha). India also marked a gain of 0.87 Mha in tree cover.
• Indonesia reduced deforestation after implementing the forest moratorium and improved enforcement measures.
• Currently, domestic and international mitigation finance for forests averages $2.3 billion per year — less than 1 per cent of the required. Forest funding must increase by up to 200 times to meet 2030 goals.

Environment- As a Living Being:

• Recent years have seen legal interventions in the European Union, Ecuador and India to protect forests.
• In 2021, a constitutional court in Ecuador upheld the rights of nature enshrined in the country’s constitution. The court said mining in protected areas violated the constitutional rights of nature and that the government should revoke the mining licenses.
• In April 2022, the Madras High Court declared nature as a living being with all rights and duties of a living being.

THE GLIMPSES OF INDIA STATE OF FOREST REPORT, 2021

• ISFR 2021 has found that there is an increase of 1,540 square kilometres (0.22%) of forest cover and 721 sq km (0.76%) of tree cover compared to the 2019 report.
• The total forest cover of the country is 21.71% of the geographical area; the tree cover is estimated at 2.91% of the geographical area. Thus, the total forest and tree cover comes to 24.62% of the geographical area of the country.
• Forest cover inside the recorded forest areas/greenwash (RFA/GW) has shown a slight increase of 31 sq km, whereas there is an increase of 1509 sq km of forest cover outside the RFA/GW as compared to the previous assessment of 2019.
• The states with the highest increase in the forest cover are Andhra Pradesh (647 sq km), Telangana (632 sq km), Odisha (537 sq km), Karnataka (155 sq km) and Jharkhand (110 sq km). The reason for the increase in the forest cover in states like Andhra Pradesh is plantation and agroforestry.
• The ISFR 2021 report attributed the improvement in forest cover to “better conservation measures, protection, afforestation activities, tree plantation drives and agroforestry”.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

5. SAFAL (SIMPLIFIED APPLICATION FOR AGRICULTURAL LOANS)

THE CONTEXT: Recently, Odisha Chief Minister launched the common credit portal SAFAL to increase farmers’ access to loans.

THE EXPLANATION:

What is SAFAL?

SAFAL (Simplified Application for Agricultural Loans) is India’s first online agricultural credit facilitation portal. This common credit portal eases access to over 300 term loan products provided for farmers and agri-entrepreneurs. These term loan products will be provided by more than 40 partner banks.

What are the benefits of the SAFAL portal?

• The portal acts as a one-stop solution for farmers and agri-entrepreneurs to access loans offered by public and private sector banks, regional rural banks, state cooperative banks and small finance banks. It can simplify the loan application process, benefiting both the banks and farmers. It will minimise information asymmetry by sending real-time notification about the status of the loan to farmers at every stage of the loan application.
• It will also benefit the government by providing complete visibility of demand and disbursal of formal agricultural credit across states. This information will help create a data-backed government policies and schemes in the future. The portal will increase access to agricultural loans, which in turn will boost the farmers’ productivity and growth of agri-businesses. This portal has been integrated with Krushak Odisha. It has access to more than 70 model project reports.

What is Krushak Odisha portal?

• Krushak Odisha is an authentic database of farmers in the state, including small, marginal, and landless cultivators and agricultural labourers. It provides information related to the farmers’ residence, land, crops cultivated, livestock reared, and fisheries practiced. This information has been verified by government extension workers.
• The database aims to reduce paperwork for farmers and ease access to government services and schemes. The integration of Krushak Odisha portal with SAFAL portal will ensure that the banks get authentic information about farmers who are applying for credit facilities.

PRELIMS PERSPECTIVE

6. GARUDA JOINT AIR FORCE EXERCISE

THE CONTEXT: Recently, the Indian and French air forces are undertaking an 18-day military exercise in Jodhpur involving a significant number of combat jets such as Rafale, Tejas, Jaguar and Sukhoi-30s to further enhance operational cooperation.

THE EXPLANATION:

About Garuda joint Air force exercise

• AIM: “This joint exercise will provide a platform for both the countries to enhance operational capability and interoperability, while also sharing best practices”.
• It is the seventh edition of the bilateral exercise, being hosted by India for the fourth time so far. The first, third and fifth editions were conducted in India in 2003, 2006 and 2014 at Air Force stations Gwalior, Kalaikunda and Jodhpur, respectively. The second, fourth and sixth editions were conducted in France in 2005, 2010 and 2019.

India-France military cooperation

• The military cooperation between India and France has witnessed a major expansion in the last few years.
• In August, a French Air and Space Force contingent, including three Rafale jets, made a strategically crucial stopover at the IAF’s Sulur base in Tamil Nadu as part of a mega military operation it carried out in the Pacific Ocean.
• In March, the Indian and French navies carried out a five-day mega wargame in the Arabian Sea, involving frontline ships, submarines, maritime patrol aircraft, fighter aircraft and helicopters.

1. Tuning in to self-reflection for peace sake READ MORE
2. Police Cynicism READ MORE
3. Scientific and conscious READ MORE

1. Fewer cyclones in Bay of Bengal but frequency increased in Arabian Sea: Report READ MORE
2. Emissions Gap Report 2022: Pledges to cut greenhouse gas emissions way off track READ MORE
3. The world needs more urgent climate action READ MORE
4. If India wants to fulfil its 2030 climate promises, it must take stronger steps: UN report READ MORE

1. UNDP’s latest report on poverty highlights India’s great leap upward READ MORE  
2. Awareness needed to fight cleft lip problem READ MORE

1. The death penalty and humanising criminal justice READ MORE
2. Variations in Acts of universities pose problems READ MORE
3. Rule of Law waning: The government’s the world over are becoming autocratic and less responsive to people’s needs READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. TB cases notified in India in 2021 18% higher than 2020: Health Ministry READ MORE
2. SP leader Azam Khan disqualified from U.P. Assembly after conviction in hate speech case READ MORE
3. Tulu, Kodava speakers demand priority for their languages too in Kannada development Bill READ MORE
4. Hawaii Officials Warn World’s Largest Active Volcano Could Erupt READ MORE
5. Failing to meet the inflation target: Why is RBI panel holding a special meeting on November 3? READ MORE
6. Two more Indian beaches given prestigious Blue Flag certification READ MORE
7. Uttar Pradesh’s 27 ‘sugarcane tigers’ to find forest home soon READ MORE
8. Lebanon and Israel sign US-mediated sea border deal, deliver them to UN READ MORE

Main Exam

GS Paper- 1

1. Colonialism and its discontents today READ MORE
2. ‘Divide and rule’ does not work Making sense of an outreach to Pasmanda Muslims READ MORE
3. ‘Women, Life. Freedom’ READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. The death penalty and humanising criminal justice READ MORE
2. Variations in Acts of universities pose problems READ MORE
3. Rule of Law waning: The government’s the world over are becoming autocratic and less responsive to people’s needs READ MORE

SOCIAL ISSUES

1. UNDP’s latest report on poverty highlights India’s great leap upward READ MORE  
2. Awareness needed to fight cleft lip problem READ MORE

INTERNATIONAL ISSUES

1. Central Asia: The new battleground for US and China READ MORE
2. Xi envisions China-centric world order READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. The US and China are battling for semiconductor supremacy READ MORE
2. GM mustard crop: Green nod a step towards making farmers future-ready READ MORE

ENVIRONMENT AND ECOLOGY

1. Fewer cyclones in Bay of Bengal but frequency increased in Arabian Sea: Report READ MORE
2. Emissions Gap Report 2022: Pledges to cut greenhouse gas emissions way off track READ MORE
3. The world needs more urgent climate action READ MORE
4. If India wants to fulfil its 2030 climate promises, it must take stronger steps: UN report READ MORE

DISASTER MANAGEMENT

1. There are no ‘natural disasters’ READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Tuning in to self-reflection for peace sake READ MORE
2. Police Cynicism READ MORE
3. Scientific and conscious READ MORE

Questions for the MAIN exam

1. ‘The battle against internal terror cannot be fought without the help of the people’. Discuss, why development projects are critical for rooting out extremism?
2. How far do you agree with this view that recent supreme court concern against hate speech is good move, but this is the administration and executive that can work effective against the propagation of hate? Justify your view.

QUOTATIONS AND CAPTIONS

• Multiculturalism isn’t about culture, it’s about power.
• The Global Hunger Index exposes the falsity of poverty estimates that do not take into account the true rise in cost of living.
• Grazing by mammalian herbivores can be a climate mitigation strategy.
• The quest for Atmanirbharta has to be an ongoing and long-term endeavour that must take due note of its adverse impact on the military’s short and mid-term operational effectiveness.
• Water resources are essential for economic development. India has 4 per cent of global water resources for its use. India’s water resources are under immense pressure.
• India needs to embark on export-led growth to create high-income jobs with a big role of MSMEs.
• The Government should identify better alternatives and encourage innovation that can eventually lead to the betterment of public health. It is essential for the government to take on a multidimensional and unprejudiced stance in adopting harm reduction alternatives for the betterment of its citizens.
• Consensus among political parties is needed to avert the financial disaster that freebies will lead to in the long run.
• Fostering peaceful coexistence of the diverse sects and sections of society is crucial for India’s image globally, too, as its voice gains credence in diplomatic and geopolitical affairs.
• The Supreme Court’s intervention in the matter is welcome. Now, political and legal action must follow in case of hate speech.
• Development projects bolster internal security and help policing become more focused and result-oriented, ensuring a government-people bond.
• Administrative bias on the one hand and the spread of social prejudice on the other cannot be allowed to vitiate the national mood. the Court must do everything possible to nudge authorities to enforce the law against the propagation of hate.

ESSAY TOPIC

• Multiculturalism isn’t about culture, it’s about power.

50-WORD TALK

• It’s good that Delhi politicians are talking about garbage, sewage and Yamuna water pollution. They should go beyond poll-time whataboutery and join their heads to find solutions. Mountains of garbage surrounding the national capital are a disgrace. They’re a blot on Swachh Bharat. They must disappear from the city’s skyline.

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 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 CONTEXT: On August 23^rd 2021, Union Minister for Finance and Corporate Affairs launched the asset monetisation pipeline of Central ministries and public sector entities – National Monetization Pipeline.

WHAT IS MONETISATION?

• In a monetisation transaction, the Government transfers revenue rights to private parties for a specified transaction period in return for upfront money, a revenue share, and commitment of investments in the assets. On the other hand, Disinvestment is pulling out the money invested in the company by selling the stake, either partially or fully. Disinvestment involves dilution of ownership of the business / PSU.
• Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), for instance, are the key structures used to monetise assets in the roads and power sectors.
• These are also listed on stock exchanges, providing investors liquidity through secondary markets as well.
• While these are structured financing vehicles, other monetisation models on PPP (Public Private Partnership) basis include: Operate Maintain Transfer (OMT), Toll Operate Transfer (TOT), and Operations, Maintenance & Development (OMD). OMT and TOT have been used in the highways sector, while OMD is being deployed in the case of airports.

ALL YOU NEED TO KNOW ABOUT THE NATIONAL MONETISATION PIPELINE

INTRODUCTION

• Union Budget 2021-22 has identified the monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.
• The Budget provided for the preparation of a ‘National Monetisation Pipeline (NMP)’ of potential brownfield infrastructure assets. NITI Aayog, in consultation with infra line ministries, has prepared the report on NMP.
• NMP aims to provide a medium-term programme roadmap for public asset owners, along with visibility on potential assets to the private sector.
• The end objective of this initiative is to enable ‘Infrastructure Creation through Monetisation’ wherein the public and private sector collaborate, each excelling in their core areas of competence, to deliver socio-economic growth and quality of life to the country’s citizens.
• The report on NMP has been organised into two volumes.

ü  Volume I is structured as a guidebook, detailing the conceptual approaches and potential models for asset monetisation.

ü  Volume II is the actual roadmap for monetisation, including the pipeline of core infrastructure assets under Central Govt.

FRAMEWORK

• The framework for monetisation of core asset monetisation has three key imperatives.

ESTIMATED POTENTIAL

• Considering that infrastructure creation is inextricably linked to monetisation, the period for NMP has been decided to be co-terminus with the balance period under National Infrastructure Pipeline (NIP).
• The aggregate asset pipeline under NMP over the four years, FY 2022-2025, is indicatively valued at Rs 6.0 lakh crore.
• The estimated value corresponds to ~14% of the proposed outlay for the Centre under NIP (Rs 43 lakh crore).
• This includes more than 12 line ministries and more than 20 asset classes. The sectors included are roads, ports, airports, railways, warehousing, gas & product pipeline, power generation and transmission, mining, telecom, stadium, hospitality and housing.
• Sector-wise Monetisation Pipeline over FY 2022-25 (Rs crore):

• The top 5 sectors (by estimated value) capture ~83% of the aggregate pipeline value. These top 5 sectors include Roads (27%) followed by Railways (25%), Power (15%), oil & gas pipelines (8%) and telecom (6%).
• Regarding annual phasing by value, 15% of assets with an indicative value of Rs 0.88 lakh crore are envisaged to be rolled out in the current financial year (FY 2021-22).

Indicative value of the monetisation pipeline year-wise (Rs crore):

IMPLEMENTATION & MONITORING MECHANISM

• The programme is envisaged to be supported through necessary policy and regulatory interventions by the Government to ensure an efficient and effective asset monetisation process.
• These will include streamlining operational modalities, encouraging investor participation and facilitating commercial efficiency, among others.
• Real-time monitoring will be undertaken through the asset monetisation dashboard, as envisaged under Union Budget 2021-22, to be rolled out shortly.
• The assets and transactions identified under the NMP are expected to be rolled out through various instruments. These include direct contractual instruments such as public-private partnership concessions and capital market instruments such as Infrastructure Investment Trusts (InvIT).
• The sector will determine the choice of instrument, nature of the asset, the timing of transactions (including market considerations), target investor profile, the level of operational/investment control envisaged to be retained by the asset owner, etc.
• The monetisation value that is expected to be realised by the public asset owner through the asset monetisation process may either be in the form of upfront accruals or by way of private sector investment.
• The potential value assessed under NMP is only an indicative high-level estimate based on thumb rules. This is based on various approaches such as market or cost or the book or enterprise value etc., as applicable and available for respective sectors.

BENEFITS

• Ensures resource efficiency in infrastructure operations and maintenance by creating capital assets and addressing the country’s infrastructure needs.
• It aims to provide a transparent system that allows public authorities to monitor private players’ performance and investors to plan their future actions.
• Because these are brownfield initiatives, there is less risk for the private sector. As a result, there will be no significant delays due to land and environmental approvals.
• Globally, government-led capital creation has been a vital force in overcoming the COVID-19 pandemic-induced economic slump.
• NITI Aayog’s efforts to add coherence to contracts will improve the ease of doing business, particularly in contract enforcement.
• Assist in the creation of high-quality jobs in the various industries as envisioned by the programme.

CHALLENGES

ASSET-SPECIFIC CHALLENGES

• The MNP framework notes that other critical impediments to the monetisation process are asset-specific challenges, such as an identifiable revenue stream. This is specifically relevant to the railway sector, which has seen limited PPP success as a project delivery model.
• Konkan Railway, for instance, has multiple stakeholders, including state governments, which own a stake in the entity. Creating an effective monetisation transaction structure could be a bit challenging in this case.
• Other Asset-specific Challenges are:

ü  Low level of capacity utilisation in gas and petroleum pipeline networks.

ü  Regulated tariffs in power sector assets.

ü  Low interest among investors in national highways below four lanes.

SLOW PACE OF PRIVATISATION

• The slow pace of privatisation in government companies including Air India and BPCL. Further, less-than-encouraging bids in the recently launched PPP initiative in trains indicate that attracting private investors’ interest is not that easy.

REALISING ADEQUATE VALUE

• The other challenge is whether the adequate value from the assets will be realised or not. This depends on the quality of the bidding process and whether enough private players are attracted to bid.

MONOPOLISTIC OUTLOOK

• The only way of ensuring that asset monetisation doesn’t lead to cronyism is to make the bidding conditions such that the people eligible to bid are not a minor, predetermined set.  However, because of the project’s capital intensity, not everybody is going to be able to bid.

EXECUTION RISK

• There will be execution risk in such a large programme. However, this is exactly why NMP is not adopting a one-size-fits-all approach.

TAXPAYERS’ MONEY

• The taxpayers have already paid for these public assets — and, so, why should they pay again to a private party to use them.

THE LACK OF CLEAR THINKING ON SOME OF THE DEEPER ISSUES

• A greater problem is the lack of clear thinking on some of the deeper issues that may arise as a result of such monetisation. Take the monetisation of hill /mountain railways sought to be done through the Operate, Maintain and Develop (OMD) based PPP model for a period of 30-50 years, which may be extended.
• While the concessionaire is required to maintain the heritage nature of project assets, they would not just get the right to earn fare and non-fare revenues for 30-50 years through train operations but would also be allowed to charge user charges and sub-lease rights on the station and adjoining real estate on railway land for 30-50 years.
• This has the potential to jeopardise the rights of the locals living in these areas and cause protests.

A DROP IN THE OCEAN

• Such monetisation, however well-intentioned, is a drop in the ocean. It is expected to finance no more than 5-6% of the CAPEX (of Rs. 111 lakh crore) under the National Infrastructure Pipeline over the period.
• More importantly, 13 sectors, each with multiple assets, are sought to be monetised over the next four years—when the Government has been missing its disinvestment targets year on year, even when it involves blue-chip companies like BPCL.

LITTLE CLARITY ON USE PROCEEDS

• There is a larger question of where within the Budget will such proceeds from monetisation be accounted for and how these proceeds will be spent.
• The NMP document does speak about these proceeds being used to finance further infrastructure. There are no specific guidelines/rules, however, on how these proceeds could be used. Could they be used (more importantly not used) for paying salaries, giving pensions and subsidies, etc., thereby incurring revenue expenditure?

THE LITTLE ATTENTION ON IMPLEMENTATION

• The big miss is the little attention paid to the issue of how the NMP would be implemented and a precise scenario planning based on the Government’s experience in Disinvestment.
• The 101-page Volume II document with only one page devoted to an Implementation Plan, in a nutshell, maybe the biggest challenge of the NMP.

EMPLOYMENT

• The document has been silent on maintaining the current level of jobs in assets that will be monetised.

THE WAY FORWARD

• EXECUTION IS THE KEY TO SUCCESS: While the Government has attempted to solve several difficulties due to the NMP framework’s infrastructure development, the plan’s execution remains critical to its success.
• APPROACH WITH MULTI-STAKEHOLDER: Other stakeholders must do their part if the infrastructure expansion plan is to succeed. State governments and their public-sector enterprises, as well as the private sector, are among them. In this regard, the Fifteenth Finance Commission has advocated the formation of a High-Powered Intergovernmental Group to re-examine the Centre’s and States’ fiscal responsibility legislation.
• OTHER METHODS OF RAISING RESOURCES: Other strategies for raising funds include establishing a development finance institution (DFI) and increasing the percentage of infrastructure investment in the federal and state budgets.
• DISPUTE RESOLUTION MECHANISM: The importance of strengthening judicial systems cannot be overstated. The design and implementation of NMP will naturally and automatically benefit from efficient and effective conflict resolution processes.
• STREAMLINE PPP: Based on recent experience, public-private partnerships (PPPs) now feature transparent auctions, a clear understanding of the risks and payoffs, and an open field for all interested parties. As a result, the value of PPP in greenfield projects should not be overlooked.
• TRANSPARENT BIDDING: Maintaining transparency is critical to achieving a sufficient realisation of asset value.
• NITI AAYOG RECOMMENDATIONS:
  • Bringing InvITs Under Insolvency and Bankruptcy Code (IBC):Extending IBC provisions to InvITs would help lenders access a faster and more effective debt restructuring and resolution option.
  • Tax Breaks:Tax-efficient and user-friendly mechanisms like allowing tax benefits in InvITs would attract retail investors (individual/non-professional investors).

THE CONCLUSION: Raising financial resources upfront is a bold, proactive, and confident policy statement when global economic conditions remain unpredictable and uncertain. It sends a strong message to the rest of the world that India is open to business while protecting the public purse and its inhabitants.