1. SUPREME COURT RULING ON JALLIKATTU

TAGS: PRELIMS PERSPECTIVE
THE CONTEXT: A five-judge Bench of the Supreme Court upheld the amendments made by the legislatures of Tamil Nadu, Maharashtra, and Karnataka to The Prevention of Cruelty to Animals (PCA) Act, 1960, allowing bull-taming sports like jallikattu, kambala, and bullock-cart races.
EXPLANATION:

Background:

2014 ruling of Supreme Court:

• Animal Welfare Board of India, which is a statutory body under the Centre, and animal rights groups like People for the Ethical Treatment of Animals (PETA), provided documentary evidence to the court suggesting that the jallikattu animals were physically and mentally tortured.
• In 2014 SC ruling has then held that “bovine sports” were contrary to the provisions of Sections 3, 11(1)(a) and (m) of the Prevention of Cruelty to Animals Act, 1960 which relate to the “duties of persons having charge of animals” and define animal cruelty respectively.

Notification by Ministry of Environment, Forest and Climate Change:

• On January 7, 2016, a notification was issued by the Ministry of Environment, Forest and Climate Change prohibiting the “exhibition or training of bulls as performing animals”.
• However, an exception was carved in the notification, which specified that bulls might still be trained as performing animals at events such as Jallikattu in Tamil Nadu, according to the customs and culture of different communities.
• It was also specified that this exception is subject to conditions such as reducing the pain and suffering of bulls utilised in such sports.

Amendment by States:

• Tamil Nadu, Maharashtra, and Karnataka had in 2017 passed amendments to the central law against cruelty to animals in order to allow traditional sports such as the taming of bulls during Pongal.
• Following this, a SC Bench comprising then Chief Justice of India (CJI) Dipak Misra and Justice Rohinton Nariman opined that the jallikattu issue involved substantial questions of interpretation of the Constitution, and referred the matter to the Constitution Bench.
• The Bench was tasked with deciding whether Tamil Nadu could preserve jallikattu as its cultural right under Article 29(1) of the Constitution, which states that “any section of the citizens residing in the territory of India or any part thereof having a distinct language, script or culture of its own shall have the right to conserve the same”.

Recent judgement:

• Five-judge Bench overruled the view taken by a two-judge Bench of the court in its 2014 ruling in ‘Welfare Board of India v. A. Nagaraja’, banning such sports including jallikattu.
• Bench led by Justice KM Joseph ruled that the amendments, made in 2017 were “valid legislations”, it said that the jallikattu issue was “debatable”, and must ultimately be decided by the House of the People (Lok Sabha).
• Adding that the 2017 amendment “minimises cruelty to animals in the concerned sports”, the court held that once it’s implemented and read with the rules, the sports will not come under the definition of cruelty defined in the 1960 Act.
• Jallikattu” as bovine sports have to be isolated from the manner in which they were earlier practised and organising the sports itself would be permissible, in terms of the Tamil Nadu Rules.
• The court also said that the 2017 amendment does not violate Articles 51-A (g) and 51-A (h), which impose duties on Indian citizens to protect the environment and develop a scientific temper, humanism, spirit of inquiry, and reform, respectively. Further, it also held that the amendment didn’t violate Articles 14 (Right to Equality) and 21 (Right to Life) of the Constitution.

What is Jallikattu?

• Jallikattu, also known as eruthazhuvuthal, is a bull-taming sport traditionally played in Tamil Nadu as part of the Pongal harvest festival.
• The festival is a celebration of nature, and thanksgiving for a bountiful harvest, of which cattle-worship is part.
• However, the practice of jallikattu has long been contested, with animal rights groups and the courts expressing concern over cruelty to animals and the bloody and dangerous nature of the sport that sometimes causes death and injuries to both the bulls and human participants.

Stand of Other states

• Karnataka cabinet in January 2017 decided to amend the PCA Act, 1960, to pave the way for kambala, a sport involving a pair of buffaloes tied to the plough and anchored by one person. The buffaloes are made to run in parallel muddy tracks in a competition in which the fastest team wins.
• Maharashtra passed an amendment to the PCA Act, 1960, allowing “bullock cart races” involving bulls to conduct a race, “whether tied to cart with the help of wooden yoke or not (by whatever name called), with or without a cartman with a view to follow tradition and culture on such days”.

Animal Welfare Board of India

• Animal Welfare Board of India is a statutory advisory body on Animal Welfare Laws and promotes animal welfare in the country.
• It is established in 1962 under Section 4 of the Prevention of Cruelty to Animals Act, 1960.
• The Board consists of 28 Members including 6 Members of Parliament (2 Members of Parliament from Rajya Sabha and 4 Members of Parliament from Lok Sabha).The term of office of Members is for a period of 3 years.

Prevention of Cruelty to Animals (PCA) Act, 1960

• The Prevention of Cruelty to Animal Act, 1960 is one of the most comprehensive laws on the subject of animal welfare in India. It is an Act of the Parliament passed on 26 December 1960 with a vision to prevent cruelties on animals.

The main objective of the Act is:

• The Act prevents unnecessary pain or suffering on animals.
• The Act enshrines provisions for establishing the Animal Welfare Board of India, its powers, functions, constitution, and term of the office of members of the Board.
• The Act enshrines the guidelines regarding the experimentation on animals for scientific purposes and empowers a committee to make rules with regards to such experiments.
• The Act restricts the exhibition and training of performing animals. Both the terms ‘exhibit’ and ‘train’ are separately defined under Section 21 of the Act.

2. OPEN NETWORK FOR DIGITAL COMMERCE (ONDC)

TAGS: GS 3: ECONOMY; GS 3: SCIENCE AND TECHNOLOGY
THE CONTEXT: After the revolution brought in the realm of digital payments by the Unified Payments Interface (UPI), the Open Network for Digital Commerce (ONDC) is set to break new ground in the country’s digital commerce ecosystem.
EXPLANATION:

What is ONDC, and how does it work?

• ONDC is an interoperable network based on the BeckN protocol that anyone can piggyback on. It seeks to break down silos in digital commerce by enabling platforms of varying configurations (big or small) to connect and operate seamlessly on it.
• It comprises different entities called ‘Network Participants’, including Buyer Applications, Seller Applications, and Gateways that perform the search and discovery function.

Features of ONDC:

• It employs cutting-edge digital infrastructure, seeking to democratise digital commerce in India and make it more accessible and inclusive.
• ONDC with its network-centric approach and inclusive governance framework, will transform the digital commerce landscape in India and serve as an important reference point for a forward-looking Digital Public Infrastructure (DPI) governance framework.
• By moving the exchange of goods and services from a platform-centric approach to a network-centric approach, ONDC eliminates the need for buyers and sellers to use the same application, and promotes the discoverability of local digital stores across industries.
• From the buyer’s perspective, ONDC offers greater freedom of choice, reducing the overwhelming reliance on a single platform.
• Sellers also stand to benefit greatly: the network-centric approach of ONDC reduces the skewed bargaining power in favour of the platforms, which often results in higher entry barriers and lower margins for selle
• ONDC’s network-centric approach levels the playing field by making goods and services equitably accessible to all and benefiting all participants in the ecosystem.

ONDC’s inclusive governance approach:

• ONDC entity, a not-for-profit company incorporated under Section 8 of the Companies Act 2013, manages and operates the ONDC Network.
• It is responsible for building and maintaining the underlying infrastructure (common registries and protocols) as well as defining the rules of engagement and code of conduct for the Network Participants through the ONDC Network Policy and the ONDC Network Participant Agreement.
• Moving a step forward from previous Digital Public Infrastructure (DPI) governance models such as those of Aadhar and UPI, ONDC takes a more representative and multistakeholder approach to the governance that prioritises the evolving needs of its users.

How will the system be funded?

• The ONDC entity was initially promoted by the Quality Council of India and has since raised from multiple investors including private and public sector banks, depositories, development banks, and other financial institutions.
• While initial funding was obtained through share allotments, the ONDC entity aims to develop a self-sustaining financial model in the future.
• One potential revenue stream could include charging a small fee from platforms to fund ongoing and expansion-related activities independently.

Involvement of Government in ONDC:

• ONDC has been endorsed by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Union Ministry of Commerce and Industry. DPIIT is not involved in ONDC’s funding, but is at the forefront of its evangelisation through light-touch governmental oversight.
• To ensure a market+community driven approach to decision-making, the board includes representatives from banks, the government, and independent industry and civil society members.
• It will establish a User Council, comprising representatives from Network Participants and civil society. The User Council will provide regular guidance on various aspects of the network’s functioning and governance, serving as a liaison between Network Participants, Consumers, and the network.

3. THE ISSUE OF DOTTED LAND

TAGS: GS 3: ECONOMY
THE CONTEXT: The Andhra Pradesh government has started removing “dotted lands” in the state from the prohibited list, restoring full rights of selling or pledging these lands to the farmers who own them. Over 2 lakh acres of these British-era dotted lands have been identified for permanent denotification.
EXPLANATION:

What kind of lands are dotted lands?

• Dotted lands are disputed lands for which there are no clear ownership documents.
• Typically, one or more individuals as well as the government’s Revenue Department lay claim over the land.
• These lands were also noted as disputed lands in the resettlement register or land records register. The dots on the land documents indicated their disputed status.

Background:

• These lands came to be known as “dotted lands’’ because when, during the British era, land ownership surveys and resettlement of land records were taken up, local revenue officials who were tasked with identifying government-owned and privately-owned lands put dots in the ownership column if more than one person claimed ownership, or if ownership could not be clearly established.
• In urban areas, dotted lands have been illegally sold and houses have been constructed, which cannot be taxed. With lakhs of acres under dispute, the government also loses on stamp duty revenue.

How did these ownership disputes arise?

• If landowners did not leave clear wills passing on land to their heirs or children, and if a dispute arose because more than one heir lay claim over the land.
• Some of the land records in question are more than 100 years old, and had been locked up in the prohibited list in and registers.
• During subsequent surveys, government officials left the ownership column blank indicating their disputed status as per Section 22A of the Registration Act.

How will this step benefit landowners/farmers?

• Government introduced a Bill in march, 2023 to amend the Revenue Act to grant titles to farmers who have been cultivating dotted lands for more than 12 years.
• The dots, and entries in land registers, will be removed and these farmers will be given clear land ownership documents.
• As financial institutions do not recognise dotted land documents as clear ownership documents. Those farmers who were using the land, they could not procure loans from banks and financial institutions by putting up the land as collateral.
• With the lands now being taken off the prohibited list, landowners/farmers will get full rights over the lands, and enjoy all usual rights as land owners.
• They can apply for financial assistance for crop support, purchase seeds and fertilisers, and procure farm equipment. The landowners/farmers can also sell the lands or gift to kin or relatives.

4. RBI REGULATION OF GREEN DEPOSITS

TAGS: GS 3: ECONOMY
THE CONTEXT: Reserve Bank of India (RBI) came up with a regulatory framework for banks to accept green deposits from customers. Under the new framework, banks that accept green deposits will have to disclose more information on how they invest these deposits.
EXPLANATION:

What are green deposits?

• Green deposits are not very different from the regular deposits that banks accept from their customers. The only major difference is that banks promise to earmark the money that they receive as green deposits towards environment-friendly projects.
• Deposit raised under this banner should be deployed towards projects earmarked for green financing. Green financing is lending to or investing in projects which contribute towards climate risk mitigation, climate adaptation and resilience, and other climate-related or environmental objectives including biodiversity management and nature-based solutions.
• For example, a bank may promise that green deposits will be used towards financing renewable energy projects that fight climate change.
• This apart, all the rules applicable to normal deposits will be applicable to green deposits.
• A green deposit is just one product in a wide array of other financial products such as green bonds that help investors put money into environmentally sustainable projects.

RBI’s regulatory framework:

• The RBI’s framework for the acceptance of green deposits lays down certain conditions that banks must fulfill to accept green deposits from customers.
• Firstly, banks will have to come up with a set of rules or policies approved by their respective Boards that need to be followed while investing green deposits from customers.
• These rules need to be made public on the banks’ websites and banks will have to disclose regular information about the amount of green deposits received, how these deposits were allocated towards various green projects, and the impact of such investments on the environment.
• A third-party will have to verify the claims made by banks regarding the projects in which the banks invest their green deposits as well as the sustainability credentials of these business projects.
• The registered entities shall issue green deposits as cumulative or non-cumulative deposits.
• On maturity, the green deposits would be renewed or withdrawn at the option of the depositor. The green deposits shall be denominated in Indian Rupees only. The tenor, size, interest rate and other terms and conditions are defined in the Master Direction of the Reserve Bank.

Eligiblity norms:

• The framework is applicable to Scheduled Commercial Banks including Small Finance Banks excluding Regional Rural Banks, Local Area Banks and Payments Banks and all deposit-taking Non-Banking Financial Companies (NBFCs), including Housing Finance Companies.
• The RBI has come up with a list of sectors that can be classified as sustainable and thus eligible to receive green deposits.
• These include renewable energy, clean transportation including electric vehicles, climate change adaption, sustainable water and waste management, pollution control terrestrial and aquatic biodiversity conservation, energy efficiency, and afforestation and so on.
• Banks will be barred from investing green deposits in business projects involving fossil fuels, nuclear power, tobacco, etc.

Aims:

• It aims to satisfy depositors who care about the environment by investing their money in environmentally sustainable investment products.
• It is aimed at preventing greenwashing, which refers to making misleading claims about the positive environmental impact of an activity.
• The idea is to foster and develop a green finance ecosystem in the country.
• The framework is intended to “encourage regulated entities (REs) to offer green deposits to customers, protect interest of the depositors, aid customers to achieve their sustainability agenda, and help augment the flow of credit to green activities/projects.

5. LIBERALISED REMITTANCE SCHEME (LRS)

TAGS: GS 3: ECONOMY
THE CONTEXT: The government sought to clarify its decision to bring overseas credit card spends under the Liberalised Remittance Scheme (LRS) for forex outgo.
EXPLANATION:

Issue:

• Earlier debit card spends were covered under the LRS, but international credit card were not under purview and data collected from top money remitters under the scheme revealed that international credit cards were being issued with limits in excess of the norm.
• Finance Ministry announced that international credit card payments will come under the RBI’s liberalised remittance scheme, or LRS. This means any remittance over $2.5 lakh or its equivalent in a foreign currency will need the Reserve Bank of India’s (RBI) approval.
• Ministry assured that the scheme will not cover bona fide business visits overseas by employees and said the imposition of 20% tax collection on source or TCS for foreign remittances will primarily impact tour travel packages, gifts to non-residents and domestic high net-worth individuals investing in assets such as real estate, bonds, stocks outside India.
• The main impact will only be on investment in assets such as real estate, bonds and stocks outside India by high net worth people using their credit cards; tour and travel packages, and expensive gifts to non-residents.

The Liberalised Remittance Scheme (LRS):

• It is part of the Foreign Exchange Management Act (FEMA) 1999 which lays down the guidelines for outward remittance from India.
• The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.
• Under LRS, all resident individuals, including minors, are allowed to freely remit up to USD250,000 per financial year (April – March). In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian.
• This can be for any permissible current or capital account transaction, or a combination of both.
• Authorised dealers, such as banks, enable such transactions between residents and their overseas dependents, using only your PAN card for verification.
• Besides remittances, LRS can also offer foreign exchange services to Indian citizens for medical expenses or travelling.
• However, corporates, partnership firms, Hindu Undivided Family and charitable trusts are not eligible to use the LRS.

Prohibited items under the Scheme:

• Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000.
• Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty.
• Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market.
• Remittance for trading in foreign exchange abroad.
• Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as “non- cooperative countries and territories”, from time to time.
• Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
• Gifting by a resident to another resident, in foreign currency, for the credit of the latter’s foreign currency account held abroad under LRS.

Individuals can avail of foreign exchange facility for the following purposes within the LRS limit of USD 2,50,000 on financial year basis:

• Private visits to any country (except Nepal and Bhutan)
• Gift or donation
• Going abroad for employment
• Emigration
• Maintenance of close relatives abroad
• Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up
• Expenses in connection with medical treatment abroad
• Studies abroad
• Any other current account transaction which is not covered under the definition of current account in FEMA 1999.

1. Think Less to Live Longer READ MORE
2. Learn to listen READ MORE
3. In search of a pluralistic paradigm READ MORE
4. Things to be desired READ MORE

1. Safeguarding ocean lifelines is India’s goal READ MORE  
2. Explained: Climate Change, Earthquakes and Hydropower in the Himalayas READ MORE

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

1. Centre-state friction taking its toll on governance READ MORE
2. Parliamentary panels are indispensable READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. RBI to pull out ₹2,000 notes from active circulation READ MORE  
2. Centre reverses Supreme Court order, gives Delhi Lieutenant Governor final say on bureaucrats READ MORE
3. RBI triples payout to govt., to transfer ₹87,416 crore as surplus READ MORE
4. Supreme Court gets two new judges as CJI administers oath of office to Justices Mishra and K.V. Viswanathan READ MORE
5. Turkey, Saudi skip registration for Srinagar G20, China stays away READ MORE
6. Pakistan and Iran inaugurate border market: What it is and why it has been launched READ MORE
7. What is  the Open Network for Digital Commerce (ONDC), and why is everyone talking about it? READ MORE
8. Project Cheetah: Rajasthan, Madhya Pradesh can share some animals, expert tells DTE READ MORE
9. Oxford University’s WildCRU, Panthera join forces for Africa’s lions; appoint joint programme director READ MORE

Main Exam

GS Paper- 1

1. Safeguarding ocean lifelines is India’s goal READ MORE  

GS Paper- 2

POLITY AND GOVERNANCE

1. Centre-state friction taking its toll on governance READ MORE
2. Parliamentary panels are indispensable 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. On India at the G-7 summit: India’s presidency of G-20 gives it additional heft at G-7 summit READ MORE  
2. G-7 summit to focus on countering China READ MORE
3. Indian Diplomacy in Overstretch READ MORE
4. G20, G7 and Nuclear Diplomacy READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. How India can become the global supplier for digital metrology and remote calibrations READ MORE  
2. A sustainable growth rate: At what level will India have no output gap? READ MORE
3. It’s clear Indian economy is not ‘fast-growing’, govt must raise capacity for growth & employment READ MORE
4. Equality versus Empowerment: Women in Indian Legislature READ MORE

ENVIRONMENT AND ECOLOGY

1. Explained: Climate Change, Earthquakes and Hydropower in the Himalayas READ MORE

SCIENCE

1. India’s women in science, and their struggle READ MORE

SECURITY

1. Fighting cyber crimes better READ MORE

DISASTER MANAGEMENT

1. Warming warning: On the World Meteorological Organization projections for temperature trends READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Think Less to Live Longer READ MORE
2. Learn to listen READ MORE
3. In search of a pluralistic paradigm READ MORE
4. Things to be desired 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

• Power does not corrupt. Fear corrupts… perhaps the fear of a loss of power.
• 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

• The Jallikattu matter should have never gone to a constitution bench. Time has been wasted. The court said whether a law to “preserve cultural heritage” is a debatable issue has to be concluded in the House of people. The legislature had already taken a call on the animal rights-tradition conflict.
• The killing of a 23-year-old doctor in Kollam by her patient is disturbing. Kerala’s approval of an ordinance prescribing imprisonment for perpetrators of violence against healthcare workers is a step in the right direction. However, the state must take measures to protect its medical community before the crime is committed.
• Supreme Court has rightly faulted Manipur High Court for its factually incorrect verdict on ST status for Meiteis. The power to modify the ST list is with the President, the HC does not have the remit. Having disapproved of it in strong words, the Supreme Court should have stayed it.

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.

1. GREEN OPEN ACCESS RULES 2022

TAGS: GS 3: ENVIRONMENT

THE CONTEXT: Union New and Renewable Energy Minister has directed the industry to set targets under the Green Open Access Rules 2022, in a bid to accelerate the country’s renewable energy programmes.

EXPLANATION:

• Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 has been notified by Ministry of Power.
• The Ministry of Power notified Power System Operation Corporation (POSOCO) as Central Nodal Agency to set up and operate a single window green energy open access system for renewable energy under these Rules.
• It was launched in order to further accelerate our ambitious renewable energy programmes, with the objective of ensuring access to affordable, reliable, sustainable and green energy for all.
• As per the Electricity Act 2003, the tariff is determined by the Appropriate Commission. Accordingly, the tariff for the green energy shall be determined by Appropriate Commission and shall comprise of the average pooled power purchase cost of the renewable energy, cross-subsidy charges, if any, and service charges covering the prudent cost of the distribution licensee for providing green energy to the consumers.
• It is a major step towards achieving India’s aims to cut emissions in India to net zero by 2070 and aims to achieve 500 GW renewable power capacity, reduce emissions by one billion tonnes and an emissions intensity of the GDP by 45 percent by 2030.

Key Features:

• There will be a uniform Renewable Purchase Obligation (RPO), on all obligated entities in area of a distribution licensees. Green hydrogen/green ammonia has also been included for fulfillment of its RPO. The consumers will be given green certificate beyond their RPO obligation.
• It will provide certainty on open access charges to be levied on Green Energy Open Access consumers which includes transmission charges, wheeling charges, cross-subsidy surcharge and standby charges.
• It also enables a simplified procedure for the open access to green power. Open access permits a consumer to purchase power from a source of his/her choice.
• The transaction limit would be minimum 100 KW for non-captive consumers. No limit has been kept for captive consumers.
• These rules are notified for promoting generation, purchase and consumption of green energy including the energy from Waste-to-Energy plants.
• Consumers are entitled to demand supply of Green Power from Discoms. Discoms would be obligated to procure and supply green power to eligible consumers.
• Commercial and Industrial consumers are allowed to purchase green power on voluntarily basis.

Green Open Access Registry:

• It is a transparent platform through which long term, medium term and short-term open access transactions will be managed and performed to interstate transmission system and intra state transmission system.
• The Power Ministry has notified the Grid Controller of India Limited as the central nodal agency to operate the Green Open Access Registry (GOAR) portal which is the single window portal to register and apply for the green energy open access.
• This platform will be accessible to all the stakeholders present in the Indian Power Market.
• This platform will provide automated transaction workflows to ease the turnaround time of transaction for all open access consumers.

Green energy open access portal:

• It will allow consumers with a 100 KW-sanctioned load to get a supply of renewables. The government rules mandate approval for green energy open access to be granted to consumers in a time-bound manner within 15 days.

Power System Operation Corporation Limited (POSOCO)

• It is a wholly owned subsidiary of Power Grid Corporation of India Limited (PGCIL). It was formed in March 2010 to handle the power management functions of PGCIL.
• It is responsible to ensure the integrated operation of the Grid in a reliable, efficient and secure manner.
• It consists of 5 Regional Load Despatch Centres and a National Load Despatch Centre (NLDC).

2. 25 YEARS OF KUDUMBASHREE

TAGS:  GS 1: SOCIETY

THE CONTEXT: In her maiden visit to Kerala, President of India inaugurated the silver jubilee celebrations of Kudumbashree, the largest self-help group network in the country. The president had also released a handbook titled chuvadu (footsteps) that codified ideas for the movement’s future and the achievements it has gained so far.

EXPLANATION:

• Kudumbashree means “prosperity of the family” in the local Malayalam language is the Kerala government’s ongoing participatory “poverty eradication and women empowerment” mission.
• It began in 1998 as a cluster of microcredit neighbourhood groups with thrift and credit activities, creating many crisis managers and entrepreneurs of humble origins over the years.
• The collective transformed ordinary women from poverty-ridden families into agents of change and recovery in critical times like the flood and the pandemic.
• Now, Kudumbashree is Kerala’s biggest social capital. Its members have risen to become elected members of the three-tier local bodies after enforcing the 33 per cent women reservation (in Kerala local bodies, the percentage of reservations is 50).

Background:

The two immediate contexts for Kudumbashree are the following:

• First, in 1997, a three-member task force constituted by the Kerala Government recommended setting up a State Poverty Eradication Mission (SPEM). However, it became fully operational only in April 1999 with the name Kudumbashree Mission.
• The second immediate context was the 73^rdand 74^th Constitution Amendment Acts. The Kerala government used the amendment as an opportunity to deliver poverty alleviation programmes through local participation and self-government institutions.
• From the beginning, it has been functioning under the local self-government department by accepting financial support from the union government and NABARD.

Membership:

• The Mission conceives women empowerment and community development as central to poverty eradication.
• Thus, the membership of the Mission’s community network is limited to women.
• During the initial phase, the membership consisted of women from below-poverty-line households but currently all adult women are eligible for membership to the Neighbourhood Groups the basic units of Kudumbashree’s community network.
• The membership follows a “one family, one member” rule. However, any women irrespective of this rule can participate in the discussion and activities of the Kudumbashree.

Organization:

• A three-tiered community network or self-help groups of women implements this mission.
• At the primary level, Kudumbasree is the collective of Neighbourhood Groups (NHG). Area Development Societies (ADS) at the ward level and Community Development Societies (CDS) at the local government level.
• The first and the lowest tier of Kudumbashree’s community network is Neighbourhood Groups (or Ayalkootamin Malayalam) consisting of ten to twenty women. The second level consisting of two or more Neighbourhood Groups is Area Development Societies. All Area Development Societies in an area are affiliated to the local self-government level Community Development Society.

Aims:

• The mission aims to eradicate poverty through women empowerment.
• economic empowerment such as through collective farming, livestock farming, market development
• social empowerment such as destitute identification and rehabilitation, and rehabilitation of mentally challenged persons
• women empowerment consisting of educational programmes and programmes for the elimination of violence against women.
• It also plans income-generating activities involving agriculture or micro-enterprises to be run jointly by members of the network.
• It also helps the local self-government institutions (Panchayats in rural areas and Municipalities in urban areas) in the preparation and implementation of the local bodies’ anti-poverty plan, women component plan, and other local development schemes.
• It also assists the local self-government institutions in the identification of beneficiaries of central (federal) and state (provincial) government’s welfare programmes.
• Community Development Society of the network acts as a liasing body with banks for loans for the network’s activities.
• It also facilitates capacity building activities by training and providing information to women in particular to assume leadership roles.
• It also helps in creating awareness around gender related government initiatives such as prevention of violence against women and legal literacy.

3. ARTIFICIAL SWEETENERS

TAGS: GS 2: HEALTH ISSUES

THE CONTEXT: The World Health Organisation recommended against using artificial sweeteners to achieve weight loss and prevent lifestyle diseases such as diabetes. The report emphasized that while there was a need to cut intake of sugar, it should not be replaced by artificial sweeteners.

EXPLANATION:

Artificial sweeteners or non-sugar sweeteners (NSS):

• Non-sugar sweeteners or artificial sweeteners are intensely sweet chemicals up to several hundred times sweeter than sugar that are used for sweeten food while only adding very little or no calories.
• It provides the sweet taste with very little to no calories. Many diabetics use the sweeteners in their tea and coffee, but there is a growing market for packaged foods and beverages using these sweeteners to offer low-calorie options.
• Common NSS include acesulfame K(Ace-K), aspartame, advantame, cyclamates, neotame, saccharin, sucralose, stevia and stevia derivatives. Erythritol, a popular artificial sweetener that is widely available in India and abroad under various brand name was associated with an increased risk of heart attack and stroke.

WHO recommendations:

• The WHO guideline on NSS is part of a suite of existing and forthcoming guidelines on healthy diets that aim to establish lifelong healthy eating habits, improve dietary quality and decrease the risk of NCDs worldwide.
• While there could be some weight-lossand reduction in Body Mass Index in the short term as the artificial sweeteners bring down the calories consumed, but in the long run they have been linked to weight gain.
• The sweeteners have also linked to an increased risk of Type-2 diabetes, cardiovascular diseases, and mortality in the long run. It is also linked to bladder cancer and preterm birth when consumed by pregnant women.
• Long-term adverse effects in the form of increased risk of death and disease offset any potential short-term health benefit resulting from the relatively small reduction in body weight and BMI observed in randomized controlled trials.
• The recommendation applies to all people except individuals with pre-existing diabetes and includes all synthetic and naturally occurring or modified non-nutritive sweeteners that are not classified as sugars found in manufactured foods and beverages or sold on their own to be added to foods and beverages by consumers.
• The recommendation does not apply to personal care and hygiene products containing NSS, such as toothpaste, skin cream, and medications, or to low-calorie sugars and sugar alcohols (polyols), which are sugars or sugar derivatives containing calories and are therefore not considered NSS.

4. SUSTAINABILITY AND RELATED INITIATIVES

TAGS: GS 3: ENVIRONMENT

THE CONTEXT: There are a number of traditional conservationists who dismiss the works covered under the broader sustainability/nature-based solutions framing it as deceptive. On the other hand, there are hardcore business folks who almost always feel a false sense of piety towards the sustainability agenda.

EXPLANATION:

• Sustainability is the ability to maintain or support a process over time. There is need of the strengthening of a better understanding and a space for deeper engagement and collaboration.
• While conservation is more action-focused on specific areas (landscape, theme, species), sustainability remains a bit more overarching. It is a strategic process of convening multiple stakeholders around a policy objective and programme strategies that would augment the work being done through conservation approaches.

Environment, Social and Governance:

• It is a framework that helps stakeholders understand how an organization is managing risks and opportunities related to environmental, social, and governance criteria (sometimes called ESG factors).
• It typically includes managing and avoiding the depletion of natural resources to maintain global ecological balance.
• It takes the holistic view that sustainability extends beyond just environmental issues.

Corporate Social Responsibility (CSR):

• It is a management concept whereby companies integrate social and environmental concerns in their business  operations and interactions with their stakeholders.
• CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line-  Approach”), while at the same time addressing the expectations of  shareholders and stakeholders.

ESG vs CSR:

CSR may be used as an internal framework, while ESG provides a measure of assessment for investors. Corporate social responsibility is a business model by which companies make a concerted effort to operate in ways that enhance rather than degrade society and the environment whereas ESG provides a more quantitative measure of sustainability.

European Deforestation Regulation (EUDR):

• It is an initiative to limit deforestation caused by forestry and agricultural activities all over the world.
• EU deforestation-free regulation is part of the EU Green Deal and a broader EU strategy to protect the world’s forests.
• While these regulations focus on deforestation caused by illegal timber logging, the new EU deforestation-free regulation covers a broader set of commodities.
• The regulation affects seven specific commodities (cocoa, coffee, soy, palm oil, wood, rubber, and cattle) and their derivatives, as well as products made using these commodities (e.g. leather, cosmetics, chocolate etc.).
• The new Regulation will require any companyimporting or exporting these commodities from the EU to prove the products are deforestation-free. This applies to any company, regardless of whether they are EU-based or not, and for legal and illegal sources of deforestation in Europe and overseas.
• The Regulation defines a product as deforestation-free when the product itself, its ingredients or its derivatives were not produced on land subject to deforestation or forest degradation after the cut-off date of 31 December 2020. This cut-off date has been suggested to minimize disruption to international supply chains.

Greenwashing:

• It is typically corporate action to be perceived as environmentally conscious for marketing purposes without any notable sustainability efforts.
• It happens when a company makes an environmental claim about something the organization is doing that is intended to promote a sense of environmental impact that doesn’t exist. The green claim is typically about some form of positive effect on the environment.
• Greenwashing is when an organization spends more time and money on marketing itself as environmentally friendly than on actually minimizing its environmental impact.
• It’s a deceitful marketing gimmick intended to mislead consumers who prefer to buy goods and services from environmentally conscious brands Whilst some greenwashing is unintentional and results from a lack of knowledge about what sustainability truly is, it is often intentionally carried out through a wide range of marketing and PR efforts. But the common denominator among all greenwashing is that it is not only misleading, but it’s also really not helping to further sustainable design or circular economy.

As the United Nations Framework Convention on Climate Change’s common but differentiated responsibilities says:

The aim is minimum disruption and destruction — not to destroy the planet, the environment and the existing human life and ensure that this life remains available to future generations in its totality. With this understanding, countries and companies are building sustainability reporting into everyday action and attempting to turn theoretical issues into concrete actions.

5. MISSION DefSpace AND 100^TH SPRINT (NAVY) CONTRACT

TAGS: GS 3: SECURITY

THE CONTEXT: Innovations for Defence Excellence (iDEX), the flagship initiative of Ministry of Defence, has reached a milestone with the signing of its 250^th contract – first under Mission DefSpace and 100^th SPRINT (Navy) contract.

EXPLANATION:

Mission DefSpace:

• Recognising the strategic significance of the space domain, Mission DefSpace was launched with 75 Defence Space Challenges to be addressed by the private sector in 2022.
• It aims to nurture the Indian Private Space industry through challenges addressing every stage of a space mission from mission planning to satellite data analytics.

Mission DefSpace contract

• The first iDEX contract of Mission DefSpace was exchanged where one of the winners of the challenge ‘Micropropulsion system for cubesats’. This challenge is being led by the Defence Space Agency.
• Cubesats are a class of smallsats, which are modular; low-cost; easy to manufacture, integrate, and launch; and form a critical component for launch-on-demand capabilities. For imagery/Intelligence Surveillance & Reconnaissance/communication purposes, cubesats need to be precisely aligned, hence there is a requirement of a compact micropropulsion system for precise manoeuvring and orbit correction.
• InspeCity is developing a gas-based system for this purpose. This technology, once developed, can be integrated with other satellites, including the cubesat swarm being developed under Mission DefSpace.

100^th SPRINT (Navy) contract

‘SPRINT’ initiative:

• The initiative aims at inducting at least 75 technologies/products into the Indian Navy by August 2023 as part of ‘Azadi ka Amrit Mahotsav’.
• The 100^thSPRINT (Navy) contract was exchanged where the winner of the Challenge was development of a prototype that is a lightweight ASIC (Application-Specific Integrated Circuit) based communication system using software defined antenna for Low Earth Orbit, Medium Earth Orbit and Geostationary satellite communication.

About iDEX

• iDEX is being implemented by Defence Innovation Organisation(DIO), established under the Department of Defence Production, MoD.
• It will help India become the biggest defence innovation ecosystem in the world in the times to come.
• Its objective is to provide the platform of co-creation & co-development in the defence sector. It aims to engage start-ups to contribute to the defence sector and develop defence and aerospace setup in the country.
• iDEX has also been able to generate thousands of jobs and attract India’s talent back to the country.
• iDEX is working at a path-breaking pace to ensure that its agreements with the start-ups and innovators reach logical conclusions timely, eventually opening a myriad of options for the budding, soon to be unicorns and at the same time addressing the requirement of Services.

1. The dilemma of truths & half-truths READ MORE
2. To Jesus, good or bad, all are God’s family READ MORE
3. Resilient and Determined READ MORE
4. Things to be desired READ MORE

1. Why a normal monsoon is key READ MORE  
2. With India as G20 president, where do the country’s climate and emission goals figure? READ MORE

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

1. ED overreach: Central agency should pay heed to SC observation READ MORE
2. Avoid regulatory overdrive: Trai’s recent moves run counter to its track record of light-touch regulation READ MORE
3. The regulation imperative: When we regulate medicines, airplanes, food, money, and travel, why wouldn’t we regulate artificial intelligence? READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Credit cards put under LRS to check excess forex spends: govt. READ MORE  
2. Centre pushes vaccination as lumpy skin disease ravages cattle again READ MORE
3. What are RBI regulations on green deposits? READ MORE
4. Hiroshi F Suzuki: ‘India is a critical partner in the ultimate goal of creating a world without N-arms’ READ MORE
5. Supreme Court upholds Tamil Nadu law allowing jallikattu: What is this decade-old case? READ MORE
6. Andhra Pradesh begins freeing 2 lakh acres of ‘dotted lands’: What are these disputed lands, which will now go to their tillers? READ MORE
7. 25 years of Kudumbashree: How this Kerala women’s collective intervened to empower women, fight poverty READ MORE
8. WWF confirms the presence of gharials in Pakistan’s Punjab READ MORE
9. Oxford University’s WildCRU, Panthera join forces for Africa’s lions; appoint joint programme director READ MORE

Main Exam

GS Paper- 1

1. Why a normal monsoon is key READ MORE  

GS Paper- 2

POLITY AND GOVERNANCE

1. ED overreach: Central agency should pay heed to SC observation READ MORE
2. Avoid regulatory overdrive: Trai’s recent moves run counter to its track record of light-touch regulation READ MORE
3. The regulation imperative: When we regulate medicines, airplanes, food, money, and travel, why wouldn’t we regulate artificial intelligence? 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. A long-drawn test for India’s diplomatic skills: Walking the tightrope seems to have paid off for India, but the multilateral challenges it faces will multiply READ MORE
2. India-Maldives defence cooperation: Partnership and partisanship READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. New deal. Green innovation, a major driving force READ MORE  
2. View: A $5 trillion Indian economy is possible. The real challenge is something else READ MORE
3. Needed: A sustainable blue economy READ MORE
4. All you need to know about ONDC: The UPI of e-commerce in India 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. Comprehensive legal framework a must to curb cybercrime READ MORE

DISASTER MANAGEMENT

1. Warming warning: On the World Meteorological Organization projections for temperature trends READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. The dilemma of truths & half-truths READ MORE
2. To Jesus, good or bad, all are God’s family READ MORE
3. Resilient and Determined READ MORE
4. Things to be desired 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 the light of 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 the light recent geo-political developments.

QUOTATIONS AND CAPTIONS

• A vote is like a rifle; its usefulness depends upon the character of the user.
• 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

• The Jallikattu matter should have never gone to a constitution bench. Time has been wasted. The court said whether a law to “preserve cultural heritage” is a debatable issue has to be concluded in the House of people. The legislature had already taken a call on the animal rights-tradition conflict.
• The killing of a 23-year-old doctor in Kollam by her patient is disturbing. Kerala’s approval of an ordinance prescribing imprisonment for perpetrators of violence against healthcare workers is a step in the right direction. However, the state must take measures to protect its medical community before the crime is committed.
• Supreme Court has rightly faulted Manipur High Court for its factually incorrect verdict on ST status for Meiteis. The power to modify the ST list is with the President, the HC does not have the remit. Having disapproved of it in strong words, the Supreme Court should have stayed it.

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.

UPSC Civil Services Final Result 2022

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1. SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 (POSH)

TAGS: GS 1: SOCIETY

THE CONTEXT: Ten years after the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (PoSH) came into force, the Supreme Court Bench of India has said there are “serious lapses” and “uncertainty” regarding its implementation, issuing directions to the Union, States, and Union Territories to verify if all government bodies had formed Internal Complaint Committees and to ensure that the composition of such panels is in strict adherence with the Act.

EXPLANATION:

How was the PoSH Act formed?

• Supreme Court noting the absence of any law “enacted to provide for effective enforcement of the basic human right of gender equality” guarantee against “sexual harassment at workplaces”, laid down a set of guidelines in 1997, christened the Vishakha Guidelines, to fill the statutory vacuum till a law could be enacted.
• These were to be “strictly observed in all workplaces” and were binding and enforceable in law.
• The Court drew its strength from several provisions of the Constitution including Article 15 (against discrimination on grounds only of religion, race, caste, sex, and place of birth), also drawing from relevant International Conventions and norms such as the General Recommendations of the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), which India ratified in 1993.
• National Commission for Women submitted drafts of a Code of Conduct for the Workplace in 2000, 2003, 2004, 2006 and 2010.
• After this, the Protection of Women against Sexual Harassment at Workplace Bill was introduced by then Women and Child Development Minister in 2007. The amended Bill came into force on December 9, 2013, as the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) or PoSh Act.

How are sexual harassment, the workplace, and an employee defined under the PoSh Act?

• The PoSH Act defines sexual harassment to include unwelcome acts such as physical contact and sexual advances, a demand or request for sexual favours, making sexually coloured remarks, showing pornography, and any other unwelcome physical, verbal, or non-verbal conduct of a sexual nature.
• It also lists down five circumstances that would constitute sexual harassment if they are connected to the above-mentioned acts- (i) Implied or explicit promise of preferential treatment in employment (ii) Implied or explicit threat of detrimental treatment in employment (iii) Implied or explicit threat about present or future employment status (iv) Interference with work or creating an intimidating or offensive or hostile work environment and (v) Humiliating treatment likely to affect health or safety.
• Under the Act, an employee is defined not just in accordance with the company law. All women employees, whether employed regularly, temporarily, contractually, on an ad hoc or daily wage basis, as apprentices or interns or even employed without the knowledge of the principal employer, can seek redressal to sexual harassment in the workplace.
• The law expands the definition of ‘workplace’ beyond traditional offices to include all kinds of organisations across sectors, even non-traditional workplaces (for example those that involve telecommuting) and places visited by employees for work. It applies to all public and private sector organisations throughout India.

Internal Complaints Committee (ICC):

• The law requires any employer with more than 10 employees to form an Internal Complaints Committee (ICC) which can be approached by any woman employee to file a formal sexual harassment complaint.
• It has to be headed by a woman, have at least two women employees, another employee, and, to pre-empt any undue pressure from senior levels, to include a third party such as an NGO worker with five years of experience, familiar with the challenges of sexual harassment.
• Besides, the Act mandates every district in the country to create a local committee (LC) to receive complaints from women working in firms with less than 10 employees and from the informal sector, including domestic workers, home-based workers, voluntary government social workers and so on.
• These two bodies have to conduct inquiries in line with the POSH Act and comply with the “principles of natural justice” stated in the Rules of the Act.
• A woman can file a written complaint either to the internal or local complaints committee within three to six months of the sexual harassment incident.
• There are two ways to resolve the issue by the committee- “through conciliation” between the complainant and the respondent (which cannot be a financial settlement), or committees could initiate an inquiry, taking appropriate action based on what it finds.
• The employer has to file an annual audit report with the district officer about the number of sexual harassment complaints filed and actions taken at the end of the year. It also makes the employer duty-bound to organise regular workshops and awareness programmes to educate employees about the Act, and conduct orientation and programmes for ICC members. If the employer fails to constitute an ICC or does not abide by any other provision, they must pay a fine of up to ₹50,000, which increases for a repeat offence.

2. INDO-PACIFIC ECONOMIC FRAMEWORK FOR PROSPERITY (IPEF)

TAGS: GS 2: INTERNATIONAL RELATION

THE CONTEXT: In November 2019, India walked out from the trade pact called the Regional Comprehensive Economic Partnership (RCEP). Fast forward to 2023, and now India along with many of the same countries, but with China replaced by the United States, is getting into the U.S.-driven Indo-Pacific Economic Framework for Prosperity (IPEF).

EXPLANATION:

Indo-Pacific Economic Framework for Prosperity (IPEF):

• It is launched by United States in May 2022.
• IPEF is about developing a strategic-economic bloc an integrated economic system centered on the U.S., and, as importantly, excluding China.
• Members: India, USA, Australia, Brunei Darussalam, Fiji, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam.
• This framework will offer tangible benefits that fuel economic activity and investment, promote sustainable and inclusive economic growth, and benefit workers and consumers across the region.
• The 14 IPEF partners represent 40 percent of global GDP and 28 percent of global goods and services trade.
• The IPEF is designed to be flexible, meaning that IPEF partners are not required to join all four pillars.
• Aim: Its purpose is to “advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness for our economies. Through this initiative, we aim to contribute to cooperation, stability, prosperity, development, and peace within the region”.

What is different in IPEF from other trade deals?

• Traditionally, trade deals used to be mostly about tariffs. The U.S.’s IPEF completely removes the tariff element of typical trade deals.
• IPEF is not a Free Trade Agreement (FTA) like the Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Transpacific Partnership (CPTPP).
• IPEF as “a 21st century economic arrangement designed to tackle 21st century economic challenges, ranging from setting the rules of the road for the digital economy; to ensuring secure and resilient supply chains; to helping make the kind of major investments necessary in clean energy infrastructure and the clean energy transition; to raising standards for transparency, fair taxation, and anti-corruption”.
• It also seeks commitments to labour and environmental standards, which are highly unpopular in the region.
• Unlike other regional FTAs such as the RCEP or CPTPP, the IPEF does not offer increased market access (especially to the US market) through tariff liberalisation and non-tariff concessions.

The IPEF consists of the following four negotiating pillars:

1. Trade: The IPEF seeks to build “high-standard, inclusive, free, and fair trade commitments and develop new and creative approaches in trade and technology policy that advance a broad set of objectives that fuels economic activity and investment, promotes sustainable and inclusive economic growth, and benefits workers and consumers”.
2. Supply Chains:The IPEF will seek “first-of-their-kind supply chain commitments that better anticipate and prevent disruptions in supply chains to create a more resilient economy”. It also intends to establish an early warning system and coordinate crisis response actions.
3. Clean Energy, Decarbonisation, and Infrastructure: The framework will seek first-of-their-kind commitments on clean energy, decarbonisation, and infrastructure that promote good-paying jobs.
4. Tax and Anti-Corruption:The IPEF will seek new commitments to enact and enforce effective and robust tax, anti-money laundering, and anti-bribery regimes in line with existing multilateral obligations, standards, and agreements to curb tax evasion and corruption in the Indo-Pacific region.

India’s Stand:

• India has joined the other three pillars of supply chains, clean economy, and fair economy but not trade. But there is great pressure on it to join trade too. Joining the trade pillar is the worst, but the other pillars too contribute to developing hard new economic architectures and structures that are not tariff-based.

The rise of the ‘Indo-Pacific’:

• With the shift of the centre of gravity from the Atlantic to Asia, the new concept of the ‘Indo-Pacific’ has entered the geopolitical discourse, replacing the hitherto dominant ‘Asia-Pacific’ construct, even though its geographic boundaries are not well defined.
• Based on maritime geography, the Indo-Pacific refers to a contiguous zone encompassing the Pacific and Indian Oceans. The geographic boundaries of the Indo-Pacific could stretch from East Africa to the west coast of the US and encompass a large number of countries at varying stages of development, with distinct policy agendas and divergent interests.
• Bringing together highly heterogeneous countries with high-standard commitments on the digital economy, green infrastructure, clean energy, and social and environmental standards under the rubric of IPEF is a herculean effort.
• In the economic realm, the Indo-Pacific is one of the world’s most dynamic regions. The region accounts for more than 60% of the global GDP, and almost 50% of the global merchandise trade passes through its waters.
• The region includes the world’s four big economies: the USA, China, Japan, and India. With the engine of global economic growth shifting eastwards, the Indo-Pacific region will gain greater importance in coming years.

3. ARTIFICIAL INTELLIGENCE AND FACIAL RECOGNITION POWERED SOLUTION FOR TELECOM SIM SUBSCRIBER VERIFICATION (ASTR)

TAGS: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: The Department of Telecommunications (DoT) has developed an artificial-intelligence-based facial recognition tool that it claims has the capability of running checks on subscriber databases of telecom operators to deduce whether it contains multiple connections associated with the same person.

EXPLANATION:

Origin of ASTR:

• In 2012, DoT had issued an order to all telecom operators that they would have to share their subscriber database including users’ pictures with the department.
• These images constitute the core database on which authorities are running their facial recognition algorithm using ASTR.
• The ASTR project was conceptualised and designed between April 2021 and July 2021 by the DoT’s unit in Haryana.

How ASTR works:

• Human faces in subscribers’ images are encoded using convolutional neural network (CNN) models in order to account for the tilt and angle of the face, opaqueness and dark colour of the images.
• After that, a face comparison is carried out for each face against all faces in the database, and similar faces are grouped under one directory. Two faces are concluded to be identical by ASTR if they match to the extent of at least 97.5 per cent.
• Once the faces are matched, ASTR’s algorithm uses what it describes as “fuzzy logic” to find similarity or approximate matches for the subscriber names.

Benefits of ASTR:

• It can potentially bring down cyber frauds by detecting and blocking possible fraudulent mobile connections.
• ASTR is capable of detecting all SIMs against a suspected face in less than 10 seconds from a database of 1 crore images.
• It also accounts for any typographical errors that might have occurred while the subscriber acquisition form was being filled.

Convolutional neural network (CNN) model:

• It is a type of Deep Learning neural network architecture commonly used in Computer Vision. Computer vision is a field of Artificial Intelligence that enables a computer to understand and interpret the image or visual data.

In a regular Neural Network there are three types of layers:

1. Input Layers: It’s the layer in which we give input to our model. The number of neurons in this layer is equal to the total number of features in our data (number of pixels in the case of an image).
2. Hidden Layer: The input from the Input layer is then feed into the hidden layer. There can be many hidden layers depending upon our model and data size.
3. Output Layer: The output from the hidden layer is then fed into a logistic function like sigmoid or softmax which converts the output of each class into the probability score of each class.

Artificial Intelligence (AI):

• Artificial Intelligence(AI) is a vast subset of computer science revolving around the development of smart machines that can perform tasks that typically need some semblance of human intelligence.
• It is a multi-faceted, interdisciplinary science, but modern advancements in deep learning and machine learning are bringing it into nearly every area of the tech industry.

Facial recognition:

• Facial recognition is a category of biometricsoftware that maps an individual’s facial features mathematically and stores the data as a faceprint. The software uses deep learning algorithms to compare a live capture or digital image to the stored faceprint in order to verify an individual’s identity.

AI face recognition software has the following advantages:

• Real-time identification
• Anti-spoofing measures
• Lessened racial or gender bias due to model training across millions of faces
• Can be used across multiple cameras.

4. 4^th POSITIVE INDIGENISATION LIST

TAGS: GS 3: SECURITY

THE CONTEXT: Defence Ministry Releases Fourth Positive Indigenisation List under make in India to reduce dependence on foreign weapon suppliers.

EXPLANATION:

Positive Indigenisation List:

• In pursuit of atmanirbhartain defence, the Ministry of Defence has approved a “positive-indigenisation list” (PIL) of 928 items which will reduce imports worth Rs 715 crore.
• The list ranges from line replacement units (LRUs) and subsystems to components, high-end materials, and spares.
• The aim of the move is in sync with the government’s overall aim to promote ‘Aatmanirbharta’ (self-reliance) in defence production and to minimise imports by the defence public sector undertakings (DPSUs).
• Gaining self-sufficiency in Defence production would not only guarantee long-term security of our country but also give significant boost to the domestic industry engaged in design, development and manufacturing of weapons and platforms.
• This will also augment the design capabilities of the domestic defence industry by involving academia and research institutions.

4th Positive Indigenisation List:

• It is the fourth such “positive indigenisation list (PIL)” comprising line replacement units, sub-systems and components used for various military platforms, equipment and weapons.
• 4th Positive Indigenisation List released during Def Expo 2022 and This list is in continuation to the three similar PILs that were brought out in December 2021, March 2022 and August 2022.
• 101 more Defence Items will now be procured from indigenous sources. Highly complex systems, sensors, weapons and ammunitions have been included in this list.
• As per preliminary estimates, more than 1,75,000 Cr worth orders would be placed on Indian Industry in the next 5-10 years.
• This would further stimulate the potential of Domestic Research & Development by attracting fresh investment into technology and manufacturing capabilities.
• The items which were already indigenised comprised 262 from the first PIL, 11 from the second list and 37 from the third PIL.
• The ministry said DPSUs will soon initiate procurement action for these notified items.

How will this take place?

• The defence ministry has set specific timelines for import ban of the items, spanning the period from December 2023 to December 2028.
• The DPSUs will undertake indigenisation of these items through different routes under ‘Make’ category and in-house development through the capabilities of MSMEs and private Indian industry, thereby providing impetus to the growth in economy, enhanced investment in defence and reduction in import dependence of DPSUs.
• In addition, this will augment the design capabilities of the domestic defence industry by involving academia and research institutions.
• These lists contain 2,500 items which are already indigenised and 1,238 (351+107+780) items which will be indigenised within the given timelines.

Reasons for the move:

• India is one of the largest importers of arms globally.
• According to estimates, Indian armed forces are projected to spend around USD 130 billion in capital procurement over the next five years.
• This will reduce dependence on imported military platforms and has decided to support domestic defence manufacturing.

5. DATA GOVERNANCE QUALITY INDEX (DGQI)

TAGS: PRELIMS PERSPECTIVE

THE CONTEXT: The Ministry of Ports, Shipping and Waterways (MoPSW) has been ranked second among 66 ministries in the Data Governance Quality Index (DGQI) assessment for the December quarter (Q3) of FY23.

EXPLANATION:

• It is conducted by the Development Monitoring and Evaluation Office (DMEO), NITI Aayog
• It aims to measure the maturity level of administrative data systems and their use in decision-making of various ministries and departments on the implementation of central sector schemes and centrally-sponsored schemes.
• It also identifies reforms to reach the frontier of seamless data exchange and its synergistic use within the ministry, while defining clear pathways to achieve these goals.

Under the realm of the overall approach, six key themes have been identified under data systems pillar covered by the Data Governance Quality Index:

• Data Generation: Data generation measures the ability of the respective ministries/departments to efficiently generate useful data in the course of their programme implementation. It covers areas related to the level of digitization, frequency and granularity of data generation. It also assesses if mobile phones, location tracking and GIS mapping is used to authenticate the generated data.
• Data Quality:Data Quality covers processes of scientifically and statistically evaluating data in order to determine whether they meet quality benchmarks. The key areas covered under this theme relate to profiling of data, data quality assessment processes (for e.g. data pipeline design, well defined data schema etc.), data cleaning, use of latest technologies and mobile phones in the process.
• Use of Technology:This theme assesses if emerging technologies are being utilized to improve data robustness. It assesses if MIS of ministries/departments have linkages with PFMS for ensuring transparency and Jan-Dhan, Aadhar and Mobile [JAM-trinity (if applicable)] for delivering last mile services. It also measures if emerging technologies like block chain, big data analytics, machine learning, artificial intelligence, IoT are being used to collect data or to draw analytical insights from it.
• Data Analysis, Use and Dissemination:One of the core themes, it covers if the collected data is being analyzed and used for evidence creation and decision making. It gauges whether ministries/departments are undertaking basic cross-sectional analyses only or regression and predictive analysis as well.
• Data Security and HR Capacity:While data security requires an in-depth analysis in itself, the same is briefly captured in the index also to reflect its importance. These were identified to be the minimum requirements expected to be met and are not meant to be exhaustive in nature.

Several existing data maturity models were studied to develop DGQI’s methodology. Three key steps of data preparedness were identified:

(a)Data Strategy to lay down systemic guidelines

(b) Data Systems to ensure smooth processes of data generation, management and its use

(c) Data driven Outcomes where data is utilized and widely shared by institutions to drive decision making.

The objectives are as follows:

• To enable review and assessment of data preparedness of the data/ MIS systems of the Ministries/Departments on objective parameters of a standardized framework.
• To prepare a self-assessment diagnostic tool that will enable the M/Ds to internally contemplate the need for improving data systems.
• To enable the commissioning agencies to conduct a comparative assessment of data preparedness and source best practices in IT systems which can enable improved cross-learning between the participating agencies.
• It iwill help in laying the foundation of more integrated monitoring systems, for e.g., a single, online, API-integrable ‘Overarching Dashboard’ kind of monitoring system of all the CS/ CSS schemes of all M/Ds, ultimately leading to a state-of-the-art data-driven decision making.

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.

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