1. EXPECTED CREDIT LOSS (ECL)-BASED LOAN LOSS PROVISIONING FRAMEWORK

TAGS: GS 3: ECONOMY

THE CONTEXT: Banks have sought a one-year extension from the Reserve Bank of India (RBI) for implementation of the Expected Credit Loss (ECL)-based loan loss provisioning framework.

EXPLANATION:

• In January 2023 the RBI came out with a draft guidelines proposing adoption of expected credit loss approach for credit impairment and gave banks one year period after the final guidelines are released for implementation of expected credit loss approach for loss provisioning.

Present framework of incurred loss method:

• At present, banks set aside money after an asset turns bad, and once the new system is put in place, it is widely expected to have an one time impact on bank profit.
• Credit risk losses are bifurcated into two types: expected loss and unexpected loss. Expected loss refers to the amount of loss anticipated on a loan or portfolio of loans and is mitigated using policies, risk pricing and provisions. Unexpected loss is addressed through regulatory capital.
• Currently, banks in India follow the incurred loss approach IRAC norms as prescribed by the Reserve Bank of India (RBI) in accounting for losses on loans and other financial assets. This approach, however, is not aligned with IFRS 9 and Ind AS 109.
• Incurred loss approach is based on the principle that losses are uncertain and difficult to predict, and that they should be recognised when they are certain to have occurred. Accordingly, even if a loan has a high risk of default and expected to result in a loss, the loss will not be recognised until the borrower actually defaults and the loss is incurred.

What is EXPECTED CREDIT LOSS (ECL)-BASED LOAN LOSS PROVISIONING FRAMEWORK

• ECL is a method of accounting for credit risk that is based on the loss that is likely to occur on a loan or portfolio of loans. It is used to estimate potential future losses on financial assets and to recognise those losses in financial statements. It represents the probability weighted estimate of the present value of all cash shortfalls from an instrument.
• In simple terms, ECL is calculated by estimating the forward-looking probability of default for each loan, and then multiplying that probability by the likely loss given default, which is the percentage loss that is expected to occur if the borrower defaults. The resulting value multiplied by the likely exposure at default is the expected loss for each loan, and the sum of these values is the expected loss for the entire portfolio.
• It recognises losses on loans as soon as they are expected to occur, regardless of whether the borrower has actually defaulted.
• The other key differentiator in the computation of provision for credit loss is that ECL factors in the historical credit quality of the lender, while incurred loss approach does not consider the same.
• The ECL models adopted by banks will be subject to rigorous validation as well as process-based checks, and to prudential regulatory floors.

Draft Guidelines:

• The RBI has proposed that banks will be allowed to design own credit loss models and spread the higher provisions over a five-year period under a newer system of setting aside money for lending.
• The banks will also have to make provisions for delays made by borrowers in their repayments under the proposed framework, in addition to existing provisioning requirement.
• This may lead to increased provisioning as the lenders will have to calculate estimated loss of interest income and provide for them.
• Under the ECL norms, banks will be required to classify financial assets (primarily loans, including irrevocable loan commitments, and investments classified as held-to-maturity or available-for-sale) into one of the three categories – Stage 1, Stage 2, and Stage 3, depending upon the assessed credit losses on them, at the time of initial recognition as well as on each subsequent reporting date and make necessary provisions.
• The RBI also proposed to introduce a transitional arrangement for introduction of ECL norms in order to avoid a capital shock.

Applicability of norms

• The measures will be applicable to banks’ loans and advances, including sanctioned limits under revolving credit facilities, lease receivables, financial guarantee contracts and investments in the debt and equity markets and investments classified as held-to-maturity or available-for-sale.

2. APPOINTMENT OF UNION PUBLIC SERVICE COMMISSION (UPSC) CHAIRMAN

TAGS: PRELIMS PERSPECTIVE

THE CONTEXT: Manoj Soni, a former Vice-Chancellor of two universities in Gujarat, was on May 16, 2023 sworn in as the Chairman of the Union Public Service Commission (UPSC). He was already serving as the Chairman in charge since April 2022. He had joined the UPSC as a member in June 2017.

EXPLANATION:

ABOUT UNION PUBLIC SERVICE COMMISSION (UPSC)

• Article-315 to Article 323 provides for elaborate provisions of constitutional body of Public Service Commission for the Union and a Public Service Commission for each State.
• The Union Public Service Commission is headed by a chairman, and it can have a maximum of 10 members.
• It shall be the duty of the Union and the State Public Service Commissions to conduct examinations for appointments to the services of the Union and the services of the State respectively.
• It shall also be the duty of the Union Public Service Commission, if requested by any two or more States so to do, to assist those States in framing and operating schemes of joint recruitment for any services for which candidates possessing special qualifications are required.
• The expenses of the Union or a State Public Service Commission, including any salaries, allowances and pensions payable to or in respect of the members or staff of the Commission, shall be charged on the Consolidated Fund of India or, as the case may be, the Consolidated Fund of the State

Appointment and term of office of members:

• Article-316 provides for appointment and term of office of members.
• The Chairman and other members shall be appointed by President and in the case of a State Commission by the Governor of the State.
• It is provided that as nearly as may be one-half of the members of every Public Service Commission shall be persons who have held office for at least ten years either under the Government of India or under the Government of a State.
• The terms and conditions of service of chairman and members of the Commission are governed by the Union Public Service Commission (Members) Regulations, 1969.
• Every member holds office for a term of six years or until he attains the age of sixty-five years, whichever is earlier.

Removal of Members

• A member of a Public Service Commission may be removed from his office in the manner provided in clause (1) or clause (3) of article 317.
• The chairman and any other member of the Commission can submit his resignation at any time to the President of India.
• He may be removed from his office by the President of India on the ground of misbehaviour (only if an inquiry of such misbehavior is made and upheld by Supreme Court) or if he is adjudged insolvent, or engages during his term of office in any paid employment outside the duties of his office, or in the opinion of the President unfit to continue in office by reason of infirmity of mind or body.

Further reappointment:

• Chairman of the Union Public Service Commission shall be ineligible for further employment either under the Government of India or under the Government of a State.
• Chairman of a State Public Service Commission shall be eligible for appointment as the Chairman or any other member of the Union Public Service Commission or as the Chairman of any other State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State.
• A person who holds office as a member of a Public Service Commission shall, on the expiration of his term of office, be ineligible for reappointment to that office.
• Member other than the Chairman of the Union Public Service Commission shall be eligible for appointment as the Chairman of the Union Public Service Commission or as the Chairman of a State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State.
• Member other than the Chairman of a State Public Service Commission shall be eligible for appointment as the Chairman or any other member of the Union Public Service Commission or as the Chairman of that or any other State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State.

Functions of UPSC

• It shall be consulted on all matters relating to methods of recruitment to civil services and for civil posts.
• It shall be consulted on the principles to be followed in making appointments to civil services and posts and in making promotions and transfers from one service to another and on the suitability of candidates for such appointments, promotions or transfers.
• It shall be consulted on all disciplinary matters affecting a person serving under the Government of India or the Government of a State in a civil capacity, including memorials or petitions relating to such matters.
• It shall be consulted on any claim by or in respect of a person who is serving or has served under the Government of India or the Government of a State or under the Crown in India or under the Government of an Indian State, in a civil capacity, that any costs incurred by him in defending legal proceedings instituted against him in respect of acts done or purporting to be done in the execution of his duty should be paid out of the Consolidated Fund of India, or, as the case may be, out of the Consolidated Fund of the State.
• It shall be consulted on any claim for the award of a pension in respect of injuries sustained by a person while serving under the Government of India or the Government of a State or under the Crown in India or under the Government of an Indian State, in a civil capacity, and any question as to the amount of any such award.

3. LAUNCH OF NVS-01 SATELLITE

TAGS: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: The Indian Space Research Organisation (ISRO) will fly NVS-01 to augment the seven-satellite navigation constellation NavIC on May 29, 2023.

EXPLANATION:

• Five years after launching the last navigation satellite in 2018, ISRO is gearing up to launch a new one from Sriharikota to replace an old satellite.
• The aim is to maintain a constellation of functional seven satellites needed to keep its navigation system operational and running.

NVS-01 satellite:

• ISRO is likely to launch NVS-01, a navigation satellite on-board from the Geosynchronous Launch Vehicle or GSLV Mk-II.
• This will be a return flight mission for the GSLV launch vehicle, which will carry the next generation NavIC satellite.
• The NVS-01 satellite will replace the navigational capabilities of another satellite IRNSS-1G in the constellation that was launched in 2016 and has a mission life of 12 years.
• IRNSS-1G was the seventh navigation satellite of the seven satellites constituting the IRNSS space segment. Its predecessors—IRNSS-1A, 1B, 1C, 1D, 1E and 1F—were launched by PSLV-C22, PSLV-C24, PSLV-C26, PSLV-C27, PSLV-C31 and PSLV-C32
• It will retain its communication and messaging capabilities.

Navigation with Indian Constellation (NavIC):

• At present, there are four major global navigation system the US global positioning system, the Russian GLONASS, the European Galileo, and the Chinese Beidou. There are two regional navigational systems in the world Japan’s Quasi-Zenith system and India’s Navic.
• It is a regional navigation satellite system and was established by ISRO which was earlier known as Indian Regional Navigation Satellite System (IRNSS).
• It aims to meet the “positioning, navigation and timing” requirement of the nation.
• NavIC is designed with a constellation of seven satellites and a network of ground stations operating 24×7. Three satellites of the constellation are placed in geostationary orbit and four satellites are placed in inclined geosynchronous orbit.
• The ground network consists of a control centre, precise timing facility, range and integrity monitoring stations, two-way ranging stations, etc.
• NavIC offers two services–standard position service (SPS) for civilian users and Restricted Service (RS) for strategic users. These two services are provided in both L5 (1176.45 MHz) and S band (2498.028 MHz).
• NavIC coverage area includes India and a region up to 1,500km beyond Indian boundary.
• NavIC signals are designed to provide user position accuracy better than 20m and timing accuracy better than 50ns(nano second).
• NavIC SPS signals are interoperable with the other global navigation satellite system (GNSS) signals of GPS (US), Glonass (Russia), Galileo (Europe) and BeiDou.
• Two frequencies, the L5 and S bands, are used by the seven satellites in the NavIC constellation so far to provide positioning information. These satellites’ replacements, the new NVS-01 satellites and later, will also have L1 frequency. Even less sophisticated, consumer-grade gadgets like smartwatches can pick up the L1 signal, which is the oldest and most reliable GPS signal. The use of NavIC in devices for civilian use can therefore increase with this band.
• NavIC is better than GPS in some aspects. While GPS can get you within 20 metres of your target, NaVIC is more accurate and can get you even closer within 5 metres. However, unlike GPS, which can be used anywhere in the world, NaVIC is regional and can only be used within India and up to 1,500 km from its borders.

4. NEW GOODS AND SERVICES TAX (GST) COMPLIANCE MEASURES

TAGS: GS 3: ECONOMY

THE CONTEXT: In two significant measures to curb tax evasion and increase compliance under the Goods and Services Tax (GST) regime, the government has decided to lower the threshold for businesses to generate e-invoice for business-to-business (B2B) transactions, from Rs 10 crore to Rs 5 crore, and has rolled out the automated return scrutiny module for GST returns in a backend application for central tax officers.

EXPLANATION:

• Amid rising instances of GST frauds and cases of fake invoices, these changes are expected to broaden the compliance mandate for more businesses, especially small and medium enterprises and help boost the GST revenue collections.

Recent changes:

->Automated return scrutiny module:

• Finance Minister in a review of the Central Board of Indirect Taxes & Customs (CBIC), had given directions to roll out an automated return scrutiny module for GST returns at the earliest.
• This will enable the officers to scrutinize GST returns of centre-administered taxpayers selected on the basis of data analytics and risks identified by the system.
• This will display discrepancies on account of risks associated with a return to the tax officers. They will interact with the taxpayers through the GSTN common portal for communication of discrepancies noticed in returns and subsequent action in form of either issuance of an order of acceptance of reply or issuance of show cause notice or initiation of audit/ investigation.

->Changes for e-invoicing:

• The government has also lowered the threshold for businesses to generate e-invoice for business-to-business (B2B) transactions to Rs 5 crore from Rs 10 crore under GST. The changes will come into effect from August 1. 2023.
• At present, businesses with turnover of Rs 10 crore and above are required to generate e-invoice for all B2B transactions.

->What is e-invoicing?

• The GST Council in its 37th meeting in September 2019 had approved the standard of e-invoice with the primary objective to enable interoperability across the entire GST ecosystem.
• Under this, a phased implementation was proposed to ensure a common standard for all invoices, that is, an e-invoice generated by one software should be capable of being read by any other software and through machine readability, an invoice can then be uniformly interpreted.
• With a uniform invoicing system, the tax authorities are able to pre-populate the return and reduce the reconciliation issues.
• With a high number of cases involving fake invoices and fraud availment of input tax credit, GST authorities have pushed for implementation of this e-invoicing system to help to curb the actions of tax evaders and reduce the number of frauds as the tax authorities will have access to data in real-time.
• E-invoicing was initially implemented for large companies with turnover of over Rs 500 crore, and within three years the threshold has now been lowered to Rs 5 crore.
• E-invoicing for B2B transactions was made mandatory for businesses with turnover of over Rs 500 crore from October 1, 2020. Then it was extended to businesses with turnover of over Rs 100 crore from January 1, 2021, after which it was extended to businesses with turnover of over Rs 50 crore from April 1, 2021, and then the threshold was lowered to Rs 20 crore from April 1, 2022. It was further reduced to Rs 10 crore from October 1, 2022.
• Reduction in the e-invoicing threshold is seen as an important factor for boosting GST revenue collections and checking frauds, it will also increase compliance requirements for smaller businesses.

GOODS AND SERVICES TAX (GST) COUNCIL:

• It has been provided in the Constitution (One Hundred and First Amendment) Act, 2016 that the GST Council, in discharge of various functions, shall be guided by the need for a harmonized structure of GST and for the development of a harmonized national market for goods and services.
• As per Article 279A, the Council will make recommendations to the Union and the States on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws, principles that govern Place of Supply, threshold limits, GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters, special provisions for certain States, etc

GST Council which will be a joint forum of the Centre and the States, shall consist of the following members: –

1. a) Union Finance Minister – Chairperson
2. b) The Union Minister of State, in-charge of Revenue of finance – Member
3. c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government – Members

Working of council:-

The Constitution (One Hundred and First Amendment) Act, 2016 provides that every decision of the GST Council shall be taken at its meeting by a majority of not less than 3/4th of the weighted votes of the Members present and voting. The vote of the Central Government shall have a weightage of 1/3rd of the votes cast and the votes of all the State Governments taken together shall have a weightage of 2/3rd of the total votes cast in that meeting. One half of the total number of members of the GST Council shall constitute the quorum at its meeting.

The Council is empowered to make recommendations to the Union and the States on the following:-
(a) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services tax
(b) the goods and services that may be subjected to, or exempted from the goods and services tax
(c) model Goods and Services Tax Laws, principles of levy, apportionment of Integrated Goods and Services Tax and the principles that govern the place of supply
(d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax
(e) the rates including floor rates with bands of goods and services tax
(f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster
(g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand

(h) the date on which GST shall be levied on petroleum crude, high speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel
(i) any other matter relating to the goods and services tax, as the Council may decide.

5. THAWING PERMAFROST

TAGS: GS 3: ENVIRONMENT

THE CONTEXT: With rising global temperatures, thawing permafrost is likely to destabilise thousands of industrial sites and linked contaminated areas in the Arctic, which could result in the spread of toxic substances across the region, according to a new study. The study, ‘Thawing permafrost poses environmental threat to thousands of sites with legacy industrial contamination’, was published in the journal Nature Communications.

EXPLANATION:

What is Permafrost?

• Permafrost is essentially any ground that stays frozen 0 degree Celsius or lower for at least two years straight.
• Permafrost can be found both on land and beneath the ocean’s surface. It can be found in locations where the temperature rarely rises above freezing. This indicates that permafrost is common in Arctic locations such as Greenland, Alaska, Russia, China, and Eastern Europe.
• According to the National Aeronautics and Space Administration (NASA), permafrost is composed of “a combination of soil, rocks and sand that are held together by ice. The soil and ice in permafrost stay frozen all year long.” However, although the ground remains perennially frozen, permafrost regions aren’t always covered with snow.
• As Earth’s climate warms, the permafrost is thawing. That means the ice inside the permafrost melts, leaving behind water and soil. Thawing permafrost can have dramatic impacts on our planet and the things living on it.

Findings of the study:

• Because of the characteristics of permafrost, countries and corporations began building infrastructure on the Arctic’s permafrost. The region witnessed a further expansion of industrial and economic development during the Cold War, it became a centre for resource extraction and military activities. This led to the accumulation of industrial and toxic waste on or in permafrost which was never removed.
• The known industrial waste types in the region include drilling and mining wastes, toxic substances like drilling muds and fluids, mine waste heaps, heavy metals, spilled fuels, and radioactive waste.
• But as the Arctic is getting warmer nearly four times as fast as the rest of the planet due to climate change, permafrost is thawing rapidly, which could destabilise not only the industrial sites but also the contaminated areas.
• And once the destabilisation takes place, toxic substances would be unleashed across the region, threatening numerous species living there and the health of people who depend on them.
• According to the report, current models predict that “a pulse of carbon released” from permafrost to the atmosphere will occur within the next hundred years, if not sooner. It is unknown how much carbon will be released from permafrost in the coming years.

Other consequences of thawing permafrost:

• One of its most dangerous consequences is the release of greenhouse gases into the atmosphere. A 2022 report by NASA said, “Arctic permafrost alone holds an estimated 1,700 billion metric tons of carbon, including methane and carbon dioxide. That’s roughly 51 times the amount of carbon the world released as fossil fuel emissions in 2019.”
• A 2022 study by Columbia University observed that thawing permafrost would unleash thousands of dormant viruses and bacteria. Some of these “could be new viruses or ancient ones for which humans lack immunity and cures, or diseases that society has eliminated, such as smallpox or Bubonic plague.
• Furthermore, Plant matter frozen in permafrost does not decay, however, when permafrost thaws, microbes within the dead plant material begin to break down the matter, releasing carbon into the atmosphere.

1. MITOCHONDRIAL DONATION TREATMENT

TAGS: GS 3: SCIENCE AND TECHNOLOGY

CONTEXT: Recently, a baby born using three persons’ DNA in the United Kingdom. The baby has three parents, technically, deriving the mitochondria from a donor apart from genetic material (DNA) from biological parents. Pioneering technology was used to facilitate this, in order to prevent the child from inheriting the mother’s mitochondrial disease.

EXPLANATION:

Process of the treatment:

• Three-parent baby, human offspring produced from the genetic material of one man and two women through the use of assisted reproductive technologies, specifically Mitochondrial Replacement Therapy (MRT) and three-person In Vitro Fertilization (IVF).
• Baby carries most of its DNA from its parents, and a minor per cent from the donor, whose mitochondria have been used while fertilising the egg.
• The errant mitochondrial DNA may be removed either before or after In-Vitro Fertilisation.
• In the first case, the nuclear DNA of the donor egg is removed and replaced by that of the egg from the woman whose mitochondrial DNA needs to be replaced. After that, this egg is fertilised as usual and implanted into the womb.
• In the second option, following in-vitro fertilisation, the fertilised nuclear DNA is transferred to a donor egg from which the nuclear DNA has already been removed. This leaves the errant mitochondrial DNA out as the fertilised nuclear DNA now has the donor mitochondrial DNA for company.

What are Mitochondria?

• One of the primary organelles in each cell is the nucleus, which contains our DNA, or genetic information.
• Mitochondria are another type of double-membraned cellular organelle, which are crucial for generating energy. They are commonly known as the powerhouse of the cell and they divide independently of the cell.
• They have a very small genome of their own, which in many ways resemble that of more primitive life forms.
• The mitochondrial DNA controls its functions much like the rest of the DNA of any living form and decides what the organism would look and act like.

How do Mitochondria get affected?

• Mitochondrial DNA makes up less than 0.0005% of our entire DNA, but since the child receives it only from the mother, any aberrations in her mitochondrial DNA that may cause diseases are passed on completely to the child.
• Similar to nuclear DNA, mitochondrial DNA serves an important purpose, namely providing the genetic blueprint for molecular machines called proteins that carry out cellular functions. However, this capacity of mitochondria to carry DNA also makes them a genetic liability of sorts.
• Specifically, just like nuclear DNA, mitochondrial DNA is susceptible to mutations in the DNA code that can cause disease. If these DNA mutations lead to the production of damaged mitochondrial proteins, they can cause a class of diseases termed mitochondrial disorders.

What is the need?

• Certain defects might occur impacting the way the mitochondria produce energy for the cells (especially in the ‘energy-hungry’ tissues of the brain, nerves, muscles, kidneys, heart, liver), and thereby impacting cell function.
• The diseases that arise out of such mitochondrial mutations are called mitochondrial diseases.
• When the mitochondria are impaired and do not produce sufficient energy, that affects how the organs function, leading to a broad assortment of symptoms across the body, including brain damage, organ failure and muscle wastage.

Possible risks:

• The procedure is not without risks. Recent research has found that in some cases, the tiny number of abnormal mitochondria that are inevitably carried over from the mother’s egg to the donor egg can multiply when the baby is in the womb. So-called reversion or reversal could lead to a disease in the child.

2. CENTRE FOR PROCESSING ACCELERATED CORPORATE EXIT (C-PACE)

TAGS: PRELIMS PERSPECTIVE

CONTEXT: The Ministry of Corporate Affairs (MCA) has set up the Centre for Processing Accelerated Corporate Exit (C-PACE) to centralise the process of striking off companies from the MCA Register.

EXPLANATION:

Establishment of C-PACE:

• It was announced in the Union Budget 2022-23. C-PACE came into effect on April 1, 2023.
• The establishment of C-PACE is part of the MCA’s efforts towards ease of doing business and ease of exit for companies.
• The C-PACE institution, established under sub-section (1) of section 396, of the Companies Act, 1956 will be operational through the Registrar of Companies (RoC) for the purpose of processing and disposal of applications.

Operation of C-PACE:

• It is located at the Indian Institute of Corporate Affairs in Gurgaon.
• It will be in operation through the Registrar of Companies (RoC) for the purposes of exercising functional jurisdiction of processing and disposal of applications
• It will work under the supervision of the Director General of Corporate Affairs.

Objectives of C-PACE:

• It will reduce the burden on the registry and provide stakeholders with hassle-free filing, timely and process-bound striking off of their company’s names from the register.
• It will help keep the registry clean and provide stakeholders with more meaningful data.
• As per new rules issued by the Ministry of Corporate Affairs, from May 1, applications for removal of the name of a company under Section 248 of the Companies Act would be made to the registrar, C-PACE.
• It is expected that the process of voluntary winding up of companies would now be completed in six months as against the earlier timeline of two years.
• Section 248 of the Companies Act, 2013 provides for the removal of the name of the company from the RoC if it is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within the said period for obtaining the status of a dormant company under Section 455.

Reasons for establishment:

• Setting up of the C-PACE is part of the several measures taken by the MCAin the recent past towards ease of doing business and ease of exit for the companies.
• Earlier, several IT-based systems have been established for accelerated registration of new companies.
• Despite the Insolvency and Bankruptcy Code, 2016 (IBC) significantly changing the insolvency scenario in the country, the timelines for admission and resolution of such cases have fallen woefully short of expectations.
• This has led to the need for a detailed statutory mechanism for resolving cross-border insolvency that would aid in the resolution of complex cases that involve cases of groups having multiple jurisdictions and would maximise value for all stakeholders.
• Centre for Processing Accelerated Corporate Exit (C-PACE) with process re-engineering will facilitate and speed up the voluntary winding-up of these companies from the currently required two years to less than six months.

3. SANTINIKETAN FOR INCLUSION IN UNESCO’S WORLD HERITAGE LIST

TAGS: PRELIMS PERSPECTIVE

CONTEXT: Santiniketan, the home of Nobel laureate Rabindra Nath Tagore has been recommended for inclusion in UNESCO’s World Heritage List. The recommendation was made by the International Council on Monuments and Sites (ICOMOS), which is the advisory body to the UNESCO World Heritage Centre, based on a file moved by the Indian government.

EXPLANATION:

• Santiniketan, if selected would be the second cultural symbol from West Bengal, to make it to the UNESCO list. In 2021, UNESCO included ‘Durga Puja in Kolkata’ in its list of Intangible Cultural Heritage of Humanity.
• However, it would be India’s 41st world heritage site and going to be the third site in Bengal; the other two are Darjeeling Himalayan Railways and Sundarbans National Park.

Selection criteria for UNESCO’s World Heritage List:

• To be included on the World Heritage List, sites must be of outstanding universal value and meet at least one out of ten selection criteria mentioned in the UNESCO list.

(i)to represent a masterpiece of human creative genius

(ii)to exhibit an important interchange of human values, over a span of time or within a cultural area of the world, on developments in architecture or technology, monumental arts, town-planning or landscape design

(iii)to bear a unique or at least exceptional testimony to a cultural tradition or to a civilization which is living or which has disappeared

(iv)to be an outstanding example of a type of building, architectural or technological ensemble or landscape which illustrates (a) significant stage(s) in human history

(v)to be an outstanding example of a traditional human settlement, land-use, or sea-use which is representative of a culture (or cultures), or human interaction with the environment especially when it has become vulnerable under the impact of irreversible change

(vi)to be directly or tangibly associated with events or living traditions, with ideas, or with beliefs, with artistic and literary works of outstanding universal significance. (The Committee considers that this criterion should preferably be used in conjunction with other criteria)

(vii)to contain superlative natural phenomena or areas of exceptional natural beauty and aesthetic importance

(viii)to be outstanding examples representing major stages of earth’s history, including the record of life, significant on-going geological processes in the development of landforms, or significant geomorphic or physiographic features

(ix)to be outstanding examples representing significant on-going ecological and biological processes in the evolution and development of terrestrial, fresh water, coastal and marine ecosystems and communities of plants and animals

(x)to contain the most important and significant natural habitats for in-situ conservation of biological diversity, including those containing threatened species of outstanding universal value from the point of view of science or conservation.

UNESCO World Heritage Sites in India:

There are 32 cultural sites, 7 natural sites and 1 mixed as recognised by UNESCO. Here is the list of 40 UNESCO World Heritage Sites in India:

Shantiniketan

• It is the place where the Nobel laureate Rabindranath Tagore resided and set up the esteemed Visva-Bharati University.
• In the early 20th century, India was under the yoke of colonialism, and Santiniketan heralded a break from colonial revivalist architecture to forge a new modernity, which was not looking to the West but inwards, exploring indigenous materials and techniques, delving into India’s rich past and absorbing influences from the East to create a pan-Asian modernity.
• Santiniketan was a bold attempt to revive indigenous construction techniques to create a contextual, regional modernism”.

International Council on Monuments and Sites

• ICOMOS, a France-based international culture body, comprises professionals, experts, and representatives from local authorities, companies and heritage organizations.
• It is dedicated to the conservation and enhancement of global architectural and landscape heritage.

4. LONDON INTERBANK OFFERED RATE (LIBOR)

TAGS: GS 3: ECONOMY

CONTEXT: The Reserve Bank of India (RBI) told banks and other regulated entities to ensure a complete transition away from the London Interbank Offered Rate (LIBOR) from July 1, 2023.

EXPLANATION:

What is LIBOR?

• LIBOR is the benchmark interest rate at which major global banks lend to one another.
• It is administered by the Intercontinental Exchange or ICE., which asks major global banks how much they would charge other banks for short-term loans.
• The rate is calculated using the Waterfall Methodology, a standardized, transaction-based, data-driven, layered method.
• It is computed for five currencies with seven different maturities ranging from overnight to a year. The five currencies for which LIBOR is computed are the Swiss franc, euro, pound sterling, Japanese yen and US dollar. ICE benchmark administration consists of 11 to 18 banks that contribute to each currency.

How LIBOR is used?

• It is the global reference rate for unsecured short-term borrowing in the interbank market.
• It acts as a benchmark for short-term interest rates.
• It is used for pricing interest rate swaps, currency rate swaps as well as mortgages.
• It is an indicator of the health of the financial system and provides an idea of the trajectory of impending policy rates of central banks.
• Banks and private companies were using LIBOR as the benchmark rate for raising funds abroad.
• It was a key benchmark for setting the interest rates charged on adjustable-rate loans, mortgages and corporate debt.

What was wrong with LIBOR?

• In 2012, it came to light that many global banks had colluded to manipulate the LIBOR. The LIBOR also had a role to play in escalating the 2008 financial crisis. As a result, many central banks and regulatory authorities decided to move away from the benchmark.
• LIBOR is being replaced by the Secured Overnight Financing Rate (SOFR) on June 30, 2023, with a phase-out of its use beginning after 2021.

New Guidelines by RBI:

• The RBI has told banks to ensure that no new transaction undertaken by them or their customers relies on or is priced using the USD LIBOR or the Mumbai Interbank Forward Outright Rate (MIFOR).
• In India, the RBI advised banks to stop entering into LIBOR-linked contracts latest by December 31, 2021. Major banks like SBI and ICICI Bank soon announced a transition to new benchmark rates.  The latest move is likely to have some transitory impact on banks.
• On May 12, RBI asked banks and RBI-regulated entities to take steps to ensure a complete transition away from the LIBOR from July 01, 2023. Banks and Financial Institutions (FI) were advised to ensure that no new transaction undertaken by them or their customers relies on or is priced using the USD LIBOR or the MIFOR.

What will replace LIBOR?

• The RBI has offered options like the SOFR (Secured Overnight Financing Rate), which is linked to US treasury market transactions, and the Modified Mumbai Interbank Forward Outright Rate (MMIFOR). SOFR is considered a more accurate and more secure pricing benchmark.

What exactly is SOFR?

• SOFR is a broad measure of the cost of borrowing cash overnight, collateralised by (US) treasury securities in the repo market. It is based on the actual market activity and is not dependent on a few firms to set the rates.

What will be the impact of the LIBOR transition on banks and companies?

• Banks use benchmark rates like LIBOR to price international transactions while issuing financial instruments. Banks will have to work on updating their systems and agreements.
• Since LIBOR has been used for a long time, the transition will be a complex exercise for banks. The same is true for large companies that are looking at international borrowings or bond issues.

5. DIGITAL PUBLIC INFRASTRUCTURE (DPI)

TAGS: GS 3: SCIENCE AND TECHNOLOGY

CONTEXT: Member countries of the Shanghai Cooperation Organization (SCO) China, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan have agreed on adopting India’s model of building and deploying Digital Public Infrastructure (DPI).

EXPLANATION:

Digital Public Infrastructure (DPI):

• DPI is a set of interoperable and networked technologies that facilitate information flow with robust governance and inclusive participation of actors in the ecosystem, providing new flows and benefits that are accessible to everyone.
• DPI’s benefits span all 17 Sustainable Development Goals (SDGs), with early evidence indicating that countries with DPI are much more resilient in the face of crises.
• India’s digital public infrastructure, which includes the Aadhar, Unified Payments Interface (UPI) — in other words, digital payments and Digi locker (an online storage platform), collectively come under the ‘India Stack’.

Digital Public Infrastructure (DPI) aims:

• The DPI aims to deploy digital technology among member states and ensure digitally inclusive growth. The SCO recognizes the need for interoperability and setting common standards for digital systems.
• It will put in place a common structure that will ensure interoperability between the different technologies they deploy,
• It aims to establish common standards for the interoperability of digital systems within the SCO. In line with its responsibilities as the G20 Presidency, the Indian government is reaching out to multiple countries, offering them its technology stack without any fees.
• DPI furthers peoples’ access to public services and economic opportunities. It accelerates and scales functions that lie at the heart of social and economic activity, such as identification and authentication or making and receiving payments. This initiative is expected to benefit Indian startups and system integrators.
• DPI can address common challenges that the global community is facing, from advancing gender equality to restoring our natural world.
• For many countries, such uses of digital technology hold great potential to expand access to basic resources and services, strengthen healthcare and education systems and raise overall living standards.
• They enable online, paperless, cashless, and privacy-respecting digital access to a variety of public and private services, the paper noted.
• It can support the formalisation of the Indian economy, where a large section of the population works in the informal sector, the paper added.

Unified Payments Interface

• Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
• It also caters to the “Peer to Peer” collection request which can be scheduled and paid as per requirement and convenience.

DigiLocker

• DigiLocker is a flagship initiative of the Ministry of Electronics & IT (MeitY) under the Digital India programme.
• DigiLocker aims at the ‘Digital Empowerment’ of citizens by providing access to authentic digital documents to citizens’ digital document wallets.
• DigiLocker is a secure cloud-based platform for the storage, sharing and verification of documents & certificates.

1. THE QUESTION OF ENFORCEMENT DIRECTORATE (ED) TENURE

TAGS: GS 2: POLITY AND GOVERNANCE; PRELIMS PERSPECTIVE

CONTEXT: Supreme Court said it might revisit its 2021 ruling that the tenure of a superannuated officer may be extended only in exceptional circumstances. The Supreme Court will decide whether the Central Vigilance Commission (Amendment) Ordinance, 2021 and the Delhi Special Police Establishment (Amendment) Ordinance, 2021, which allow the Union to extend the tenure of the ED Directors, are unconstitutional.

EXPLANATION:

• The Directorate of Enforcement was established in the year 1956 with its headquarters in New Delhi. The Directorate is under the administrative control of the Department of Revenue for operational purposes.
• The Directorate of Enforcement is a multi-disciplinary organization mandated with the investigation of the offence of money laundering and violations of foreign exchange laws.
• It is responsible for the enforcement of the Foreign Exchange Management Act, 1999 (FEMA) and certain provisions under the Prevention of Money Laundering Act.
• The policy aspects of the FEMA, its legislation and its amendments are within the purview of the Department of Economic Affairs. Policy issues pertaining to PML Act, however, are the responsibility of the Department of Revenue.
• Before FEMA became effective (1 June 2000), the Directorate enforced regulations under the Foreign Exchange Regulation Act, of 1973.

Tenure of Director of Enforcement:

• In November 2021, the President of India promulgated ordinances allowing the Centre to extend the tenures of the directorsof the Enforcement Directorate from two years to up to five years.
• TheDelhi Special Police Establishment (DSPE) Act, 1946 have been amended to give the government the power to keep the chief in post for one year after they have completed their two-year terms.
• The Chief of the Central Agency currently has a fixed two-year tenure, butcan now be given three annual extensions.
• However, no further extension can be granted after the completion of a period of five years in total including the period mentioned in the initial appointment.

Structure of Directorate of Enforcement:

• The Directorate of Enforcement, with its headquarters in New Delhi, is headed by the Director of Enforcement.
• This agency is a part of the Revenue Department, Ministry of Finance.
• Five regional offices are in Mumbai, Chennai, Kolkata, Chandigarh, and Delhi. These offices are headed by Special Directors of Enforcement.
• Its zonal offices are in Ahmedabad, Bangalore, Chandigarh, Delhi, Lucknow, Mumbai, Patna, Srinagar, Panaji, Guwahati, Hyderabad, Kochi, Chennai, Jaipur, Jalandhar, and Kolkata. These offices are headed by Joint Director.
• Its sub-zonal offices are in Bhuvneshwar, Kozhikode, Indore, Madurai, Nagpur, Surat, Allahabad, Raipur, Ranchi, Dehradun, and Shimla. These offices are headed by Deputy Director.

Recruitment:

• Recruitment of the officers is done by pooling officers from other Investigation Agencies. So, it comprises officers of IRS (Indian Revenue Services), IPS (Indian Police Services) and IAS (Indian Administrative Services) such as Income Tax officers, Excise officers, Customs officers, and Police.

Functions:

• To collect, develop and disseminate intelligence relating to violations of FEMA, 1999, the intelligence inputs are received from various sources such as Central and State Intelligence agencies, complaints etc.
• To investigate suspected violations of the provisions of the FEMA, 1999 relating to activities such as “hawala” foreign exchange racketeering, non-realization of export proceeds, non-repatriation of foreign exchange and other forms of violations under FEMA, 1999.
• To adjudicate cases of violations of the erstwhile FERA, 1973 and FEMA, 1999.
• To realize penalties imposed on the conclusion of adjudication proceedings.
• To handle adjudication, appeals and prosecution cases under the erstwhile FERA, 1973.
• To process and recommend cases for preventive detention under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA).
• To undertake survey, search, seizure, arrest, prosecution action etc. against offender of PMLA offence.
• To provide and seek mutual legal assistance to/from contracting states in respect of attachment/confiscation of proceeds of crime as well as in respect of transfer of accused persons under PMLA.

The statutory functions of the Directorate include the enforcement of the following Acts:

• The Prevention of Money Laundering Act, 2002 (PMLA):It is a criminal law enacted to prevent money laundering and to provide for confiscation of property derived from, or involved in, money laundering and for matters connected therewith or incidental thereto. ED has been given the responsibility to enforce the provisions of the PMLA by conducting an investigation to trace the assets derived from proceeds of crime, to provisionally attach the property and to ensure prosecution of the offenders and confiscation of the property by the Special court.
• The Foreign Exchange Management Act, 1999 (FEMA): It is a civil law enacted to consolidate and amend the laws relating to facilitating external trade and payments and to promote the orderly development and maintenance of the foreign exchange market in India. ED has been given the responsibility to conduct an investigation into suspected contraventions of foreign exchange laws and regulations, and to adjudicate and impose penalties on those adjudged to have contravened the law.
• The Fugitive Economic Offenders Act, 2018 (FEOA):This law was enacted to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts. It is a law whereby the Directorate is mandated to attach the properties of fugitive economic offenders who have escaped from India warranting arrest and provide for the confiscation of their properties to the Central Government.
• The Foreign Exchange Regulation Act, 1973 (FERA):The main functions under the repealed FERA are to adjudicate the Show Cause Notices issued under the said Act upto 31.5.2002 for the alleged contraventions of the Act which may result in the imposition of penalties and to pursue prosecutions launched under the FERA in the concerned courts.
• Sponsoring agency under COFEPOSA:Under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), this Directorate is empowered to sponsor cases of preventive detention with regard to contraventions of FEMA.

2. ‘i-DRONE’ (Drone Response and Outreach for North East) Initiative

TAGS: PRELIMS PERSPECTIVE

CONTEXT: The Indian Council of Medical Research (ICMR) successfully conducted a trial run of the delivery of blood bags by drones under its i-Drone initiative. The trial run, as part of a pathbreaking validation study, has been undertaken for the first time in the country by the ICMR; Lady Hardinge Medical College (LHMC); Government Institute of Medical Sciences (GIMS), Greater Noida; and the Jaypee Institute of Information Technology (JIIT), Noida.

EXPLANATION:

• The vision of the Hon’ble Prime Minister of expanding the drone ecosystem in India has provided a ground for the innovative use of drones in various sectors such as agriculture, defence, disaster relief and healthcare.
• With the relaxations in the Drone Rules 2022, the inclusion of novel technologies such as drones in these sectors has been eased for researchers and drone operators.
• Leveraging upon the recent liberal regulation policies in India for low-altitude airspace for drones, the current feasibility study paved the path for using unmanned drones for the delivery of life-saving medical supplies in austere environments in future.
• The project ‘i-DRONE’ (Drone Response and Outreach for North East) assessed the feasibility of using drones to deliver vaccines and medical supplies. This was carried out in difficult geographical terrains including land, island, foothills and across hills.
• Regulators of the initiative include the Ministry of Civil Aviation (MoCA), the Directorate General of Civil Aviation (DGCA), the Airport Authority of India (AAI) and the State Health Authorities of Nagaland and Manipur.
• This ‘i-DRONE’ was first used during the Covid-19 pandemic by the ICMR for distributing vaccines to unreachable areas.
• The medical supplies delivered under the i-Drone project included COVID-19 vaccines, vaccines used in routine immunisation programs, antenatal care medicines, multi-vitamins, syringes and gloves.
• The drone delivery system focused on an end-to-end ecosystem for drone-based logistic transportation within the states and was the first successful example of delivering vaccines through drones from land to islands in South Asia.
• The aforementioned operations connected the district hospitals to the community and primary health care centres in the study districts.
• The longest drone flight under this project carried 3525 units of medical supplies from Mokokchung to the district Tuensang in Nagaland (approx. 40 km).
• Latest development in the iDrone initiative is transportation of blood and blood related products which can be done by maintaining a low temperature to avoid any damage to the products.

3. MODEL PRISONS ACT 2023

TAGS: GS 2: PRISON REFORMS

CONTEXT: The Ministry of Home Affairs (MHA) has prepared the ‘Model Prisons Act 2023’ which will replace a British-era law to overhaul the prison administration that will focus on the reformation and rehabilitation of inmates.

EXPLANATION:

• Prisons in the country and ‘persons detained therein’ are a state subject and the existing law in this context, the Prisons Act of 1894 is a pre-independence era Act and is almost 130 years old.
• Two other related laws The Prisoners Act, 1900 and The Transfer of Prisoners Act, 1950 are also decades-old. The existing Act mainly focuses on keeping criminals in custody and enforcement of discipline and order in prisons. There is no provision for the reform and rehabilitation of prisoners in the existing Act.
• The Ministry of Home Affairs hence, directed the Bureau of Police Research and Development (BPR&D), a Union government think tank on policing subjects, to review the laws and prepare a new draft.
• The Centre has finalised a comprehensive ‘Model Prisons Act, 2023’ to replace the pre-independence era ‘Prisons Act, 1894’ which mainly focused on keeping criminals in custody and enforcing discipline and order in prisons.
• Under the new Act, prisons will be viewed as reformative and correctional institutions, with a focus on transforming and rehabilitating inmates back into society as law-abiding citizens.
• It aims to address the gaps in the existing Prisons Act by providing guidance on the use of technology in prison management, making provisions for parole, furlough, and remission to prisoners to encourage good conduct, special provisions for women and transgender inmates, and a focus on the reformation and rehabilitation of inmates.

The salient features of the Model Act:

• Provisions of punishment for prisoners and jail staff for use of prohibited items such as mobile phones in jails.
• Establishment and management of high-security jails, open jails (open and semi-open).
• Provisions for protecting society from the criminal activities of hardened criminals and habitual offenders.
• Provisions for providing legal aid to prisoners, parole, furlough and premature release to incentivize good conduct.
• Provision for security assessment and segregation of prisoners, individual sentence planning, grievance redressal, the establishment of a prison development board, and a focus on the physical and mental well-being of prisoners.
• Provisions for the use of technology in prison administration, such as video conferencing with courts and scientific and technological interventions in prisons.
• Act focuses on vocational training and skill development of prisoners to facilitate their reintegration into society.
• Provision for individual sentence planning; grievance redressal, prison development board, attitudinal change towards prisoners and provision of separate accommodation for women prisoners, transgender, etc.

4. UNITED NATIONS FORUM ON FORESTS (UNFF)

TAGS: GS III: ENVIRONMENT; PRELIMS PERSPECTIVE

CONTEXT: The eighteenth session of UNFF18, held from May 8-12, 2023, in New York, discussed the contributions of Sustainable Forest Management (SFM) to energy, livelihoods and the SDGs. Discussions on integrated policies on SFM and energy to meet the United Nations-mandated Sustainable Development Goals (SDG) took centre stage. The 18th session of the UN Forum on Forests (8 -12 May, CR4) reviewed progress towards the UN Strategic Plan for Forests 2030 and its six Global Forest Goals, and discuss its work on capacity development, forest financing, monitoring, assessment and reporting, enhanced cooperation and coordination, regional collaboration, communication and outreach, and stakeholder engagement.

EXPLANATION:

United Nations Forum on Forests:

• It has been established in October 2000 by the Economic and Social Council of the United Nations (ECOSOC).
• It is a subsidiary body with the main objective to promote the management, conservation and sustainable development of all types of forests and to strengthen long-term political commitment to this end, based on the Rio Declaration, the Forest Principles, Chapter 11 of Agenda 21 and the outcome of the IPF/IFF Processes and other key milestones of international forest policy.
• The Forum has universal membership and is composed of all Member States of the United Nations and specialized agencies.
• It is serviced by a compact Secretariat, which is responsible for logistic preparations for UNFF-related meetings, timely preparation and dissemination of documents, as well as servicing meetings of the UNFF and its Bureau.
• The Secretariat also serves as the Secretariat for the Collaborative Partnership on Forests, and facilitates UNFF inter-sessional activities, such as expert group meetings and country-led initiatives.

UNFF18 (8 to 12 May 2023, UNHQ, New York):

• The sustainable management of the world’s forests takes centre stage at the United Nations Headquarters in New York at the UN Forum on Forests on 8-12 May 2023.
• Officials from UN Member States, the UN system, and international and regional organizations, will gather to discuss this critical planetary resource.
• According to a background paper, concurrently, there is growing recognition of the need to halt deforestation and tap into the potential of forests to address many of the socio-economic challenges in the light of the increased level of inequality and poverty around the world and issues related to food and energy insecurity, as well as increased prices of foods and goods.
• It is expected to include an interactive exchange of experiences and lessons learned on thematic priorities among Members of the UNFF, the Collaborative Partnership on Forests (CPF) and its member organizations, regional and subregional organizations and processes, and major groups and other relevant stakeholders.
• Besides, the interactive exchanges are expected to include consideration of the science-policy interface and cross-sectoral and emerging issues and will take into account youth, gender and region perspectives. The main outcome of UNFF18 will be a chair’s summary of the discussions, including possible proposals for consideration at UNFF19.

In view of this, five crucial issues underlined the importance of this 18th Session of the United Nations Forum on Forests (UNFF18):

1. Forests are essential to life on Earth: Forests cover 31 per cent of the Earth’s land area, contain over 80 per cent of the world’s terrestrial biodiversity, and store more carbon than the atmosphere.
2. They support our well-being and livelihood: More than 1.6 billion people depend on forests for subsistence, livelihood, employment and income. Some 2 billion people, roughly one-third of the world’s population and two-thirds of households in Africa, still depend on wood fuel for cooking and heating.
3. Healthy forests support healthy people: Forests and trees provide clean air and water and sustain us regardless of where we live. Zoonotic diseases account for 75 per cent of all emerging infectious diseases, and they usually occur when natural landscapes, such as forests, are cleared. Restoring forests and planting trees is an essential part of an integrated one health approach for people, species and the planet.
4. Forests continue to be at risk: Every year, we continue to lose 10 million hectares of forests, an area roughly the size of the Republic of Korea. The world’s forests are at risk from illegal or unsustainable logging, forest fires, pollution, disease, pests, fragmentation and the impacts of climate change, including severe storms and other weather events.
5. Restoring forests holds the key to a sustainable future: It is estimated that two billion hectares of degraded land worldwide have the potential to be restored. Revitalizing degraded forests is critical for meeting the UN target of increasing global forest area by 3 per cent by 2030. Doing so would also help countries to create new jobs, prevent soil erosion, protect watersheds, mitigate climate change, and safeguard biodiversity.

The thematic priorities for UNFF18 are:

• Enhancing forest-based economic, social and environmental benefits.
• Increase significantly the area of protected forests worldwide and other areas of sustainably managed forests, as well as the proportion of forest products from sustainably managed forests.
• Mobilizing financial resources and strengthening scientific and technical cooperation promoting governance frameworks to advance implementation.
• Enhancing cooperation, coordination and coherence, for Sustainable Forest Management.

UN Strategic Plan for Forests 2017-2030

• On 27 April 2017, the UN General Assembly adopted the first ever UN Strategic Plan for Forests 2017-2030.
• The Strategic Plan provides a global framework for actions at all levels to sustainably manage all types of forests and trees outside forests and halt deforestation and forest degradation.
• At the heart of the Strategic Plan are the six Global Forest Goals and 26 associated targets to be achieved by 2030, which are voluntary and universal.
• They support the objectives of the International Arrangement on Forests and aim to contribute to progress on the Sustainable Development Goals, the Aichi Biodiversity Targets, the Paris Agreement adopted under the UN Framework Convention on Climate Change and other international forest-related instruments, processes, commitments and goals.

5. INDIAN OCEAN CONFERENCE

TAGS: GS 2: INTERNATIONAL AFFAIRS

CONTEXT:  Two-day Indian Ocean Conference with the theme ‘Peace Prosperity and Partnership for a Resilient Future’ held in Dhaka, Bangladesh to discuss cooperation between the countries of the Indian Ocean region. Improving and enhancing connectivity should be the priority of the countries in the Indian Ocean region.

EXPLANATION:

Indian Ocean Conference:

• It is a flagship consultative forum of the Indian Ocean countries to deliberate upon the prospects of regional cooperation for Security and Growth for All in Region (SAGAR).
• This process began in 2016. More than 150 participants from 25 countries participated in the conference.
• It is an annual event to bring together Heads of State/Governments, Ministers, Thought Leaders, scholars, diplomats, bureaucrats and practitioners from across the region to discuss aspects of strengthening cooperation between the countries of the Indian Ocean region.

6^th Indian Ocean Conference:

• The conference was organized by the Indian Foundation, supported by the Ministry of External Affairs and the Bangladesh government.
• The theme of the conference was “Peace, Prosperity, and Partnership for a Resilient Future.”

Indian Foreign Minister highlighted:

• Member countries believe that a seamless transition into an Indo-Pacific is to their collective advantage and the Indian Ocean forms one of the core constituents of the Indo-Pacific and has the potential to shape the narrative for the entire region. India has a close association with dedicated bodies like the Indian Ocean Rim Association and the Indian Ocean Naval Symposium, which have their specific mandates.
• India’s policies are based on Neighbourhood First, Extended Neighbourhood and Security and Growth for All in Region (SAGAR). Despite India’s links with the West and Europe, it remains committed to its neighbours.
• India’s perspective for efficient and effective connectivity to ASEAN will be “a game-changer.” This aspect must be accorded priority and put in place the bilateral, plurilateral and regional tools and mechanisms to achieve their ends.
• It is essential for the credibility of the global order that foundational regimes such as the 1982 UN Convention on the Law of the Seas (UNCLOS) are respected and scrupulously observed by all signatories.
• Nations in the region must be conscious of the threats to the social fabric posed by extremism and fundamentalism taking advantage of democratic openness and global challenges like climate change and terrorism.

SAGAR or ‘Security and Growth for all in the Region’

• The vision of SAGAR or ‘Security and Growth for All in the Region’ was introduced in 2015 to focus on cooperative measures for sustainable use of the oceans.
• The mission also provides a framework for a safe, secure, and stable maritime domain in the region with the vision of marine security, maritime commons, and cooperation for nations’ security and economic aspirations.
• The vision is important for the country to leverage the blue economy. The blue economy offers India a once-in-a-lifetime opportunity to achieve its national socioeconomic goals (job creation, energy security, environmental resilience, and so on) while also improving connections with its neighbours.

United Nations Convention on the Law of the Sea (UNCLOS)

• The convention is sometimes referred to as the Law of the Sea Convention or the Law of the Sea Treaty and was adopted in 1982.
• It lays down a comprehensive regime of law and order in the world’s oceans and seas establishing rules governing all uses of the oceans and their resources.
• It contains, among other things, provisions relating to the territorial sea, the contiguous zone, the continental shelf, the exclusive economic zone and the high seas. It also provides for the protection and preservation of the marine environment, for marine scientific research and for the development and transfer of marine technology.
• One of the most important parts of the Convention concerns the exploration for and exploitation of the resources of the seabed and ocean floor and subsoil thereof, beyond the limits of national jurisdiction (the Area).
• The Convention declares the Area and its resources to be “the common heritage of mankind”. The International Seabed Authority, established by the Convention, administers the resources of the Area.

[WpProQuiz 470]

1. Inner transformation needs inner governance READ MORE
2. Empty & full of energy READ MORE
3. Embracing self-doubt READ MORE

1. Climate Change Could Derail India’s Plans To Grow Oil Palm Domestically READ MORE
2. With India as G20 president, where do the country’s climate and emission goals figure? READ MORE

1. Why the erosion of the traditional Indian family is worrying READ MORE  
2. Kids and phones: Study shows downside of early access READ MORE
3. Apathy of family and high costs hinder maternal healthcare READ MORE
4. Foundational learning outcomes: More recovery than loss READ MORE

1. Take a stance on the Places of Worship Act READ MORE
2. A Bleak Future READ MORE
3. How the Civil Servant Can Really Guard Taxpayers’ Money READ MORE
4. Did the Supreme Court Truly Give the Delhi Government a ‘Big Win’? READ MORE
5. NHRC’s international accreditation deferred: No one batting with a straight bat READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Row over adopting father’s surname in matrilineal Meghalaya READ MORE  
2. Dengue vaccine: India moves closer to getting its first indigenous vaccine READ MORE
3. SC Collegium recommends AP Chief Justice, senior advocate Vishwanathan as apex court judges READ MORE
4. PM Modi to visit Japan, Papua New Guinea and Australia from May 19-24 READ MORE
5. Monsoon likely to hit Kerala four days late, expected onset on June 4: IMD READ MORE
6. ISRO to launch navigational satellite for its constellation in May end READ MORE
7. Banks request RBI for more time to implement new ECL-based loan loss provisioning norms READ MORE
8. Go circular to end plastic pollution, UNEP report urges ahead of global meet READ MORE
9. Delayed monsoon: How a possible El Nino can lead to failed rains in parts of India READ MORE
10. The demand for a Kuki homeland, its history and rationale READ MORE

Main Exam

GS Paper- 1

1. Why the erosion of the traditional Indian family is worrying READ MORE  
2. Kids and phones: Study shows downside of early access READ MORE
3. Climate Change Could Derail India’s Plans To Grow Oil Palm Domestically READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Take a stance on the Places of Worship Act READ MORE
2. A Bleak Future READ MORE
3. How the Civil Servant Can Really Guard Taxpayers’ Money READ MORE
4. Did the Supreme Court Truly Give the Delhi Government a ‘Big Win’? READ MORE
5. NHRC’s international accreditation deferred: No one batting with a straight bat READ MORE

SOCIAL ISSUES

1. Apathy of family and high costs hinder maternal healthcare READ MORE
2. Foundational learning outcomes: More recovery than loss READ MORE

INTERNATIONAL ISSUES

1. New Delhi and the New Washington Consensus READ MORE
2. Why India needs to do a China with good friend US READ MORE
3. Indo-Pacific summits mark a global churn READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Tripping trade: on India and its trade stance: India must not rely on a few large markets, but opt for integration with global value chains READ MORE
2. Agriculture needs a ‘natural’ boost READ MORE
3. RBI must shift focus to growth READ MORE
4. Circular Economy READ MORE
5. Why data is a double-edged sword for financial supervision READ MORE

ENVIRONMENT AND ECOLOGY

1. With India as G20 president, where do the country’s climate and emission goals figure? READ MORE

SECURITY

1. Should India make tactical nukes to counter China? Delhi’s no-first-use rule has no room for it READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Inner transformation needs inner governance READ MORE
2. Empty & full of energy READ MORE
3. Embracing self-doubt READ MORE

Questions for the MAIN exam

1. In state administration, the bureaucracy, which serves as the executor of government policy, needs to be answerable only to the state’s legislative assembly. Comment on the statement in light of the recent Supreme Court judgement.
2. It is imperative for India to not only form and engage with new frameworks but also strengthen old ones, which will increase its options and influence among both developing and developed countries. Comment on the statement in light of recent geo-political developments.

QUOTATIONS AND CAPTIONS

• In our changing world, nothing changes more than geography.
• The need for young civil servants to get things done rather than letting them linger is very important. It is critical to our entire development process. Similarly, the need for transparency in appointments is important in our democracy.
• Capitalism is facing multifaceted challenges due to the problem of policy-making based on incorrect data. Governments and international agencies like the World Bank that depend on faulty official data cannot correctly analyse and help resolve the problems facing the world and its poor.
• To be effective, Shanghai Cooperation Organisation needs to come out of Chinese influence and push its own cherished goals.
• The hidden nature of caste atrocities indicates that the problem is more pervasive and deeply rooted than official records may suggest!
• Our steps for sustainable groundwater management are in the right direction and these are bringing a paradigm shift towards positive change.
• India’s increasing engagement with Africa has largely been through bilateral channels, with limited participation in multilateral forums.
• India’s engagement with the Commonwealth should not be treated as a subset of its relationship with the UK. India–UK bilateral ties could face divergences due to variety of domestic and structural factors.
• It is imperative for India to not only form and engage with new frameworks but also strengthen old ones, which will increase its options and influence among both developing and developed countries.
• Data is the next big chasm for regulators to cross, with its growing importance in the financial system and the challenges in its management.
• In the geoeconomic domain, there is growing convergence of interests between India and the US. A model less driven by market fundamentalism presents an opportunity for India.

ESSAY TOPIC

• In our changing world, nothing changes more than geography.

50-WORD TALK

• When major economies are grappling with historically high inflation, it’s welcome news that India’s prices are cooling. The contraction in wholesale inflation today follows retail inflation easing for four consecutive months. The prospect of a sustained pause in interest rate hikes by RBI will be a relief to industry too.
• Supreme Court’s interim order allowing real estate insolvency proceedings to take place on a project-wise basis is a necessary improvement. Insolvency cases usually get slowed down when dealing with large companies. Slicing the cases up by project will speed up resolution, and provide welcome relief to homeowners waiting on tenterhooks.
• The Supreme Court has provided welcome clarity on who controls government services in Delhi. If Delhi is to remain a state, then the bureaucracy, which serves as the executor of government policy, needs to be answerable only to the state’s legislative assembly and, by extension, to the people of Delhi.

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.