TOP 5 TAKKAR NEWS OF THE DAY (4th JULY 2023)

1. THE LEGALITY OF THE DELHI ORDINANCE

TAG: GS 2: POLITY

THE CONTEXT: The Ordinance promulgated by the President on May 19, 2023 amending the Government of National Capital Territory of Delhi Act 1991(GNCTD Act) took away the services from the jurisdiction of the Delhi government. The services had been earlier restored to the Delhi government by the Supreme Court in a landmark judgment delivered on May 11, 2023.

EXPLANATION:

• Supreme Court has held in a large number of cases that since Parliament does not possess judicial powers, it cannot negate the decision of the Court. The Ordinance nullifies that judgment of the Supreme Court.
• The Court had found that if a government does not have control over its officers it would paralyse governance which cannot be the intention of the Constitution makers while incorporating Article 239AA, which gives a special constitutional status to Delhi.
• The Court held that “legislative and executive power over services such as the Indian Administrative Services or Joint Cadre Services which are relevant for the implementation of policies and vision of NCTD [National Capital Territory of Delhi] in terms of day-to-day administration of the region shall lie with the NCTD.”

Provision for Services under Delhi Government:

• Article 239AA (3)(a) which states that Delhi’s Legislative Assembly shall have the power to make laws with respect to any of the matters enumerated in the State list or the concurrent list except the three excluded items such as police, public order and land.
• Since the executive power is co-extensive with the legislative power the Government of NCTD gets all the powers to deal with the services. This position was affirmed by the Constitution Bench of the Supreme Court.

How the ordinance is violating the constitutional provisions?

• Section 3A of the new GNCTD Act inserted through the Ordinance which states that notwithstanding anything contained in any judgment of any court, the legislative assembly shall not have the power to make laws with respect to any matter enumerated in entry 41 which means services.
• After taking away the services from the Delhi government, the Ordinance confers the powers of posting, transfer and disciplinary matters on an authority named the National Capital Civil Services Authority consisting of a chairman and two members.
• The Chief Minister is made the chairman and the Chief Secretary and the Home Secretary are the other members. With two members constituting the quorum and the fact that the two members can take all decisions makes the purpose of constituting this authority all too obvious.
• All decisions relating to posting, transfer, disciplinary issues etc. will be taken by the two officers and the opinion of the Chief Minister will have no value. These decisions will then be forwarded to the Lieutenant Governor of Delhi whose decision shall be final.
• Such a statutory body, wherein all decisions are taken by bureaucrats and the opinion of an elected Chief Minister can just be ignored, is unheard of in administrative history.

Ordinance making power of the President

• Article 123 of the Indian Constitution grants the President of India certain lawmaking powers i.e. to Promulgate Ordinances when either of the two Houses of the Parliament is not in session which makes it impossible for a single House to pass and enact a law.
• When both the houses of the parliament or the legislatures are in session then there is no provision for the promulgation of the ordinances.
• Ordinances may relate to any subject that the parliament has the power to make law, and would be having the same limitations as
• When the legislature is not in session: the President can only promulgate when either of the House of Parliament is not in session.
• Immediate action is needed: the President though has the power of promulgating the ordinances but the same cannot be done unless he is satisfied that there are circumstances that require him to take immediate action.
• Parliament should approve: after the ordinance has been passed it is required to be approved by the parliament within six weeks of reassembling. The same will cease to operate if disapproved by either House.
• The President may withdraw an ordinance at any time. However, he exercises his power with the consent of the Council of Ministers headed by the President.
• The Ordinances may have retrospective effect and may modify or repeal any act of parliament or other ordinances. It may be used to amend a tax law but it can never amend the Constitution.

Few cases related to Ordinances:

Case 1: The Central farm laws which met with widespread protests were initially brought through the ordinance route. The Farmers Produce Trade and Commerce (Promotion and Facilitation) Ordinance, The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, and the ordinance to amend The Essential Commodities Act were brought in June 2020. Later, all three ordinances were replaced by laws in parliament during its monsoon session in 2022.

Case 2: An ordinance was brought for ‘Commission on Air Quality Management’ (CAQM) in October 2020, the ordinance allows for the setting up of a statutory body to manage air quality in India’s polluted National Capital Region and adjoining areas of the Indo-Gangetic plain, which includes Punjab, Haryana, Rajasthan and Uttar Pradesh.

2. RECENT FINDING OF PARKER SOLAR PROBE

TAG: SCIENCE AND TECHNOLOGY

THE CONTEXT: Parker Solar Probe identifies mechanism driving the sun’s fast wind and finds magnetic energy near sun’s surface enables solar wind to reach gravity-defying speeds.

EXPLANATION:

Recent finding

• Researchers have utilized data from NASA’s Parker Solar Probe to understand how the sun’s wind, composed of ionized particles or plasma, can exceed speeds of 1 million miles per hour.
• This could assist in predicting large solar eruptions, enhance our understanding of cosmic wind phenomena, and aid in the search for habitable planets.
• They discovered that the energy released from the magnetic field near the sun’s surface is powerful enough to drive the fast solar wind, which is made up of ionized particles called plasma that flow outward from the sun.
• The solar wind forms a giant magnetic bubble, known as the heliosphere, that protects planets in our solar system from a barrage of high-energy cosmic rays that whip around the galaxy.
• Solar wind also carries plasma and part of the sun’s magnetic field, which can crash into earth’s magnetosphere and cause disturbances, including geomagnetic storms.
• These storms occur when the sun experiences more turbulent activity, including solar flares and enormous expulsions of plasma into space, known as coronal mass ejections.
• Geomagnetic storms are responsible for spectacular aurora light shows that can be seen near the Earth’s poles.
• Entire surface of the sun is covered in small “jetlets” of hot plasma that are propelled upward by magnetic reconnection, which occurs when magnetic fields pointing in opposite directions cross-connect which triggers the release of massive amounts of energy.
• First characterization of the bursts of magnetic energy occurs in coronal holes, that are openings in the sun’s magnetic field as well as the source of the solar wind.
• The researchers demonstrated that magnetic reconnection between open and closed magnetic fields known as interchange connection is a continuous process, rather than a series of isolated events. This led t to conclusion that the rate of magnetic energy release, which drives the outward jet of heated plasma, was powerful enough to overcome gravity and produce the sun’s fast wind.
• By understanding these smaller releases of energy that are constantly occurring on the sun, researchers hope to understand and possibly even predict the larger and more dangerous eruptions that launch plasma out into space.

The Parker Solar Probe:

• It is a NASA space probe launched in 2018 with the mission of making observations of the outer corona of the Sun.
• It will approach to within 9.86 solar radii from the center of the Sun, and by 2025 will travel, at closest approach, as fast as 690,000 km/h (430,000 mph), or 0.064% the speed of light.
• It is the fastest object ever built by humans.

3. PM-PRANAM (PM PROGRAMME FOR RESTORATION, AWARENESS, GENERATION, NOURISHMENT AND AMELIORATION OF MOTHER EARTH) SCHEME

TAG: SCHEMES

THE CONTEXT: Recently, the Cabinet Committee on Economic Affairs (CCEA) approved the PM-PRANAM (PM Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth) scheme.

EXPLANATION:

• The PM-PRANAM scheme is aimed to promote use of nutrient-based, biofertilizers for sustainable agriculture to save the soil by balanced use of fertilizers.
• Centre would incentivise those States which would adopt alternative fertilizers with the subsidy that was saved by reducing the use of chemical fertilizers.
• The scheme included a bouquet of various schemes which would boost farmers’ income, strengthen natural / organic farming, rejuvenate soil productivity, and ensure food security.

Objectives of PM PRANAM Scheme:

• The scheme aims to reduce the subsidy burden on chemical fertilisers, expected to increase by 39% to Rs.2.25 lakh crore in 2022-2023 compared to Rs.1.62 lakh crore in the previous year.
• It aims to discourage chemical fertiliser usage and promote sustainable agriculture practices.
• The government plans to introduce this scheme to reduce the use of chemical fertilisers in India by incentivising states.

Features of PM PRANAM Scheme:

• The scheme will be financed by the “savings of existing fertiliser subsidy” under the schemes run by the Department of Fertilisers scheme and will not have a separate budget.
• 50% subsidy savings will be given as a grant to the state that saves money.
• States can use 70% of the grant given under the scheme for asset creation related to alternate fertiliser production and technological adoption of alternate fertiliser units at the block, village and district levels.
• States can use the remaining 30% of the grant money to incentivise panchayats, farmer producer organisations, farmers and self-help groups involved in awareness generation and reducing fertiliser use.
• The government would compare a state’s reduction or increase in urea in a particular year to its average consumption of urea during the last three years.
• The data on a Fertiliser Ministry dashboard, IFMS (Integrated fertilisers Management System), would be used to collect the state’s urea consumption data.

Benefits of PM PRANAM Scheme:

• The scheme explicitly aims to promote the reduced use of chemical fertilisers.
• It would promote using other nutrients and fertilisers, including natural nutrients.
• Reduced use of chemical fertilisers may improve soil quality in the long run.
• Excessive exposure to chemical fertilisers affects human health through cancers and diseases caused due to DNA damage. It would promote a safe work environment.
• Environmental pollution due to chemical fertilisers can pollute water bodies, leading to algal bloom and affecting aquatic life. This scheme would prevent environmental damage.
• It would encourage natural farming, lower the burden of subsidies, increase yield, and encourage states.

4. GREEDFLATION AND ITS COUNTER ARGUMENTS

TAG: GS 3: ECONOMY

THE CONTEXT: Recently, economists have questioned the validity of the argument that corporate thirst for higher profits is the cause behind inflation.

EXPLANATION:

• Greedflation refers to price inflation caused by corporate greed for high profits in products as food and energy.
• Here, where companies exploit inflation by raising prices excessively, going beyond covering their increased costs, and aiming to maximize their profit margins.
• Progressives in the United States have accused corporate greed as a major reason for the historically high price inflation in the U.S. since the pandemic.
• S. corporations have allegedly increased the prices of their goods by more than what was necessary to compensate for higher input costs caused by supply-chain bottlenecks.
• The proponents of the idea of greedflation argue that corporate profit margins have risen significantly since the pandemic even the larger economy has struggled which has contributed to high inflation.
• They also see this as a sign of increased market dominance by corporations and have called for efforts to rein in market power of large corporations and some have even advocated for a ban on price hikes to prevent “profiteering”.

Reasons for greedflation:

• Cost of inputs used by businesses has risen at a faster pace than the pace at which the prices of consumer goods have risen which indicates market dominance of U.S. corporations may have risen considerably could possibly be a sign of weakening competition among businesses.
• However, it still does not mean that rising profit margins are the reason behind high inflation as prices are ultimately determined by buyers and not by sellers.
• The only way corporations can influence the overall price level is by reducing the supply of goods and services. There is, however, no evidence of deliberate reduction in the output of U.S. corporations recently.
• The current high inflation in the U.S. is due to U.S. Federal Reserve’s expansionary monetary policy during the pandemic which increased the prices of goods and services in the economy.
• This condition combined with supply-chain bottlenecks caused by stringent lockdowns led to high inflation.

Greedflation and cost push inflation:

• Greedflation is compared to other theories of “cost-push” inflation which attribute inflation to a rise in input costs. For example, in the past, a rise in the wages demanded by workers has been blamed for the rise in the prices of goods and services. In the case of greedflation, it is the rise in the corporate thirst for profits that is seen as a cost that is driving up prices.
• A criticism of the cost-push theory of inflation has been that it ignores the fact that the cost of producing any good is itself determined indirectly, but ultimately, by consumers. It should be noted that the cost of inputs, which can be used towards different alternative ends of society, is determined by competitive bidding in the market.

Inflation:

• Inflation refers to a general rise in the price level (meaning a widespread rise in the prices of goods and services across the broader economy) rather than in the prices of individual goods and services.
• Inflation is the percentage change in the value of the Wholesale Price Index (WPI) on a year-on year basis. It effectively measures the change in the prices of a basket of goods and services in a year. In India, inflation is calculated by taking the WPI as base.
• Inflation occurs due to an imbalance between demand and supply of money, changes in production and distribution cost or increase in taxes on products. When economy experiences inflation, i.e. when the price level of goods and services rises, the value of currency reduces.

Types of inflation:

1. Demand-Pull Inflation: This type of inflation is caused due to an increase in aggregate demand in the economy.

Causes of Demand-Pull Inflation:

• A growing economy or increase in the supply of money
• Asset inflation or Increase in Forex reserves
• Government spending or Deficit financing by the government
• Depreciation of rupee. Low unemployment rate.

2. Cost-Push Inflation: Cost pull inflation is considered bad among the two types of inflation. Because the National Income is reduced along with the reduction in supply in the Cost-push type of inflation.

Causes of cost pull inflation:

• Increase in price of inputs
• Hoarding and Speculation of commodities
• Defective Supply chain, Increase in indirect taxes
• Depreciation of Currency
• Interest rates increased by RBI

5. DEEP SEA MINING

TAG: GS 1: GEOGRAPHY

THE CONTEXT: The International Seabed Authority that regulates the deep sea mining and world’s ocean floor is now preparing to resume negotiations that could open the international seabed for mining the materials critical for the green energy transition.

EXPLANATION:

• The ISA’s Legal and Technical Commission, which oversees the development of deep-sea mining regulations, will meet in early July to discuss the yet-to-be mining code draft. The earliest that mining under ISA regulations could begin is 2026. Applications for mining must be considered and environmental impact assessments need to be carried out.
• In the meantime, some companies such as Google, Samsung, BMW and others have backed the World Wildlife Fund’s call to pledge to avoid using minerals that have been mined from the planet’s oceans.
• More than a dozen countries including France, Germany and several Pacific Island nations have officially called for a ban, pause or moratorium on deep sea mining at least until environmental safeguards are in place.

What is deep sea mining?

• Deep sea mining involves removing mineral deposits and metals from the ocean’s seabed. There are three types of such mining: taking deposit-rich polymetallic nodules off the ocean floor, mining massive seafloor sulphide deposits and stripping cobalt crusts from rock.
• Deep sea mining can led to findings of nodules, deposits and crusts containing materials, such as nickel, rare earths, cobalt and more, that are needed for batteries and other materials used in tapping renewable energy and also for everyday technology like cellphones and computers.

Deep sea mining regulation:

• Countries manage their own maritime territory and exclusive economic zones, while the high seas and the international ocean floor are governed by the United Nations Convention on the Law of the Seas. It is considered to apply to states regardless of whether or not they have signed or ratified it.
• Under the treaty, the seabed and its mineral resources are considered as the “common heritage of mankind” that protects the interests of humanity through the sharing of economic benefits and protecting marine environments.

Environmental concerns:

• Ecosystems will be damaged by mining, especially without any environmental protocols.
• Damage from mining can include noise, vibration and light pollution, as well as possible leaks and spills of fuels and other chemicals used in the mining process.
• Sediment dust from some mining can harm filter feeding species like corals and sponges, and could smother or otherwise interfere with some creatures.

International Seabed Authority (ISA):

• It is an intergovernmental body of 167 member states and the European Union established under the 1982 UN Convention on the Law of the Sea (UNCLOS) and its 1994 Agreement on Implementation.
• The ISA’s dual mission is to authorize and control development of mineral related operations in the international seabed considered the “common heritage of all mankind and also protect the ecosystem of the seabed, ocean floor and subsoil in “The Area” beyond national jurisdiction.
• The ISA is to safeguard the international deep sea, the waters below 200 meters or 656 feet, where photosynthesis is hampered by inadequate light Governing approximately half of the total area of the world’s oceans, the ISA is to exercise oversight of activities that might threaten biological diversity and harm the marine environment.
• The Authority operates as an autonomous international organization with its own Assembly, Council and Secretariat.

India in International Seabed Authority:

• International Seabed Authority has officially designated India as a “Pioneer Investor”.
• Pioneer Investor is an early investment made in any new sector or technology. e.g. Polymetallic nodules at the ocean bed.
• International Seabed Authority (ISA) and Ministry of Earth Sciences also exchanged PMN (Polymetallic Nodules) exploration extension contract. This contract was initially signed on 25th March 2002 for a period of 15 years, which later was extended by the authority twice for 5 years period, during 2017 and 2022.

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