TOP 5 TAKKAR NEWS OF THE DAY (2nd JUNE 2023)

1. EXCAVATION AT PURANA QILA AND PRE MAURYAN CONNECTION

TAG: GS 1: ART AND CULTURE

CONTEXT: A fresh round of excavations at the site of Delhi’s Purana Qila or Old Fort has uncovered evidence of the continuous history of the city since the pre-Mauryan era. The findings include shards of Painted Gray Ware pottery which are usually dated to around 1200 BC to 600 BC.

EXPLANATION:

  • The new excavations have also found remains of a 900-year-old Vaikuntha Vishnu from the Rajput period, a terracotta plaque of Goddess Gaja Lakshmi from the Gupta period, the structural remains of a 2,500-year-old terracotta ring well from the Mauryan period, and a well-defined four-room complex from the Sunga-Kushan period dating back to 2,300 years ago, besides beads, seals, copper coins and a bone needle.
  • Trade activities: More than 136 coins and 35 seals and sealings have been discovered from a small excavated area, indicating the site’s pivotal role as a centre for trade activities.
  • Earlier efforts have revealed nine cultural levels, representing different historical periods, including pre-Mauryan, Mauryan, Sunga, Kushana, Gupta, post-Gupta, Rajput, Sultanate, and Mughal. The ongoing excavation, initiated in January 2023, aims to establish a complete chronology of the site.

Pre Mauryan characteristics:

  • The political system at the time of pre mauryan was characterized by the existence of two distinct forms of government: monarchical kingdom and clan oligarchies or Ganasamghas.
  • The geographical locations of these units were unique with the monarchical kingdom occupying the Ganga-Yamuna valley and the Ganasamghas being located near the foothills of the Himalayas.
  • The agrarian based economy encouraged the formation of an impressive officialdom that is an indispensable aspect of state formation.
  • It made possible the support of a large standing army that was imperative for the expanding frontiers of the kingdoms of the Ganga valley and as an instrument of coercive control within the kingdom.
  • The standing army divided into various specialized groups replaced the tribal militia of the earlier society and became an instrument of coercion directly in the control of the king.

Purana qila:

  • Purana Qila, built by Sher Shah Suri and Mughal emperor Humayun, is believed by many to be the site of Indraprastha, as mentioned in the Mahabharat.
  • The fort was the inner citadel of the city of Din Panah during Humayun’s rule who renovated it in 1533 and completed five years later.
  • Shah Suri, defeated Humayun in 1540, naming the fort Shergarh; he added several more structures in the complex during his five-year reign. Purana Qila and its environs flourished as the “sixth city of Delhi”.
  • Purana Quila is roughly rectangular in shape having a circuit of nearly two kilometers.
    The thick ramparts crowned by merlons have three gateways provided with bastions on either side.
  • It was surrounded by a wide moat, connected to river Yamuna, which used to flow on the east of the fort.
  • The northern gate way, called the Talaqui darwaza or the forbidden gateway, combines the typically Islamic pointed arch with Hindu Chhatris and brackets; whereas the southern gateway called the Humayun Darwaza also had a similar plan.
  • The massive gateway and walls of Purana Quila were built by Humayun and the foundation laid for the new capital, Dinpanah.

2. DISCLOSURE NORMS FROM HIGH-RISK FOREIGN PORTFOLIO INVESTORS (FPIs)

TAG: GS 3: ECONOMY

CONTEXT: The markets regulator SEBI floated a consultation paper mandating additional disclosure norms from high-risk foreign portfolio investors (FPIs) that have either concentrated single group exposures and/ or significant overall holdings in their India equity investment portfolio.

EXPLANATION:

  • SEBI said there is a need for additional disclosures for certain types of FPIs in order to have greater investor protection, and for fostering greater trust and transparency in the Indian securities market ecosystem.
  • The paper has mandated additional disclosure norms from these FPIs to guard against possible circumvention of Minimum Public Shareholding (MPS), and to prevent possible misuse of the FPI route to circumvent the requirements of Press Note 3 (PN3).
  • SEBI said such disclosures must be unconstrained by any materiality thresholds set by the PMLA (Prevention of Money Laundering) rules and FPI regulations.
  • The paper has proposed to categorize FPIs into high, moderate and low risk. All FPIs except for government and government-related entities such as central banks, sovereign wealth funds, and pension funds or public retail funds, are proposed to be categorized as high-risk FPIs.

What has SEBI proposed?

  • The markets regulator has proposed that enhanced transparency measures for fully identifying all holders of ownership, economic, and control rights may be mandated for certain high-risk FPIs.
  • It proposed that high-risk FPIs, holding more than 50 per cent of their equity Asset Under Management (AUM) in a single corporate group, would be required to comply with the requirements for additional disclosures.
  • Also, the existing high-risk FPIs with an overall holding in Indian equity markets of over Rs 25,000 crore will also be required to comply with new disclosure requirements.
  • They will have to follow the new norms within 6 months, failing which the FPI will have to bring down its AUM below the threshold within a time frame.

What is Press Note 3?

  • During the Covid-19 pandemic, the government amended the Foreign Direct Investment (FDI) policy through a Press Note 3.
  • The amendments were said to have made to check opportunistic takeovers/acquisitions of stressed Indian companies at a cheaper valuation.
  • The new regulations required an entity of a country, sharing land border with India or where the beneficial owner of an investment into India is situated or is a citizen of any such country, to invest only under the Government route.
  • Also, in the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/purview of the said policy amendment, such subsequent change in beneficial ownership will also require government approval.

Will the proposed norms be applicable to FPIs?

  • The capital markets regulator said the proposed additional requirements are for high-risk FPIs and will not impact low-risk and moderate-risk FPIs in any

Foreign portfolio investment (FPI):

  • Foreign portfolio investment (FPI) is a common way to invest in overseas economies.
  • It includes securities and financial assets held by investors in another country.
  • It also includes bonds or other debt issued by these companies or foreign governments, mutual funds, or exchange-traded funds (ETFs) that invest in assets abroad or overseas.
  • On a macro-level, foreign portfolio investment is part of a country’s capital account and shown on its balance of payments (BOP). BOP calculates the amount of money flowing from one country to other countries over a financial year.
  • FPI is relatively liquid depending on market volatility.
  • Individual investors interested in opportunities outside their own country invest via FPI.  It does not give investors direct ownership of a company’s assets.

3. AIMING FOR NATIONALLY DETERMINED CONTRIBUTIONS (NDC) TARGETS

TAG: PRELIMS PERSPECTIVE

CONTEXT: While India may have internationally committed in its Nationally Determined Contributions(NDC) to half its installed electricity being sourced from renewable sources by 2030, an estimate of the country’s projected power needs by the Central Electricity Authority (CEA) suggests that this target may be achieved early, by 2026-27.

EXPLANATION:

  • National Electricity Plan (NEP) notes that the share of non-fossil based capacity is likely to increase to 57.4% by the end of 2026-27 and may likely to further increase to 68.4% by the end of 2031-32 from around 42.5% as on April 2023.”
  • Installed capacity, however, does not perfectly translate into generated power as different sources of energy have varying efficiencies, and not all sources of power are available at all times. Accounting for this, the available power from renewable energy will only be around 35.04% of the total generated electricity by 2026-27 and 43.96% by 2031-32, the NEP estimates.
  • The NEP projects that the likely installed capacity for 2026-27 would be 609,591 MW, comprising 273,038 MW of conventional capacity (coal-235,133 MW, gas-24,824 MW, nuclear-13,080 MW) and 336,553 MW of renewable-based capacity (large hydro-52,446 MW, solar-185,566 MW, wind-72,895 MW, small hydro-5,200 MW, biomass-13,000 MW, pump storage plants-7,446 MW) along with Battery Energy Storage System (BESS) capacity of 8,680 MW/34,720 MWh.
  • By 2031, the proportion of renewable energy capacity in the overall mix is likely to be 66%. Thus, in 2031-32, the total capacity is estimated to be 900,422 MW comprising 304,147 MW of conventional capacity (coal-259,643 MW, gas–24,824 MW, nuclear-19,680 MW) and 596,275 MW of renewable-based capacity (large hydro-62,178 MW, solar-364,566 MW, wind-121,895 MW, small hydro-5,450 MW, biomass-15,500 MW, pump storage plants-26,686 MW), along with BESS capacity of 47,244 MW/236,220 MWh.

Nationally Determined Contribution (NDC)

  • Following Prime Minister 2022 announcement in Glasgow, Scotland of India’s 2070 Net Zero target, India updated its Nationally Determined Contribution (NDC) in August 2022 whereby it committed to achieving “about 50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030 and reduce emission intensity by 35 percent from 2005 levels, and become carbon-neutral by 2070.
  • The NDCs are commitments made by countries under the terms of the Paris Agreement to keep global temperatures from rising beyond two degrees Celsius by the end of the century, and are required to be updated once in five years.

Central Electricity Authority

  • It is a Statutory Body constituted under the erstwhile Electricity (Supply) Act, 1948, hereinafter replaced by the Electricity Act, 2003, where similar provisions exists, the office of the CEA is an “Attached Office” of the Ministry of Power.
  • The CEA is responsible for the technical coordination and supervision of programmes and is also entrusted with a number of statutory functions.
  • It is headed by a Chairman, who is also ex-officio Secretary to the Government of India, and comprises six full time Members of the CEA of the rank of ex-officio Additional Secretary to the Government of India, they are designated as Member (Thermal), Member (Hydro), Member (Economic and Commercial), Member(Power Systems), Member(Planning) and Member(Grid Operation and Distribution).
  • Section 73 of the Electricity Act, 2003 empowers the Authority to perform such functions and duties as the Central Government may prescribe or direct, and in particular to: –
  1. a) Advise the Central Government on the matters relating to the national electricity policy, formulate short-term and perspective plans for development of the electricity system and co-ordinate the activities of the planning agencies for the optimal utilization of resources to sub serve the interests of the national economy and to provide reliable and affordable electricity for all consumers
  2. b) Specify the conditions for installation of meters for transmission and supply of electricity:
  3. c) Promote and assist in the timely completion of schemes and projects for improving and augmenting the electricity system
  4. d) Promote measures for advancing the skill of persons engaged in the electricity industry
  5. e) Advise the Central Government on any matter on which its advice is sought or make recommendation to that Government on any matter if, in the opinion of the Authority, the recommendation would help in improving the generation, transmission, trading, distribution and utilization of electricity.

National Electricity Plan

  • It is prepared by the CEA and is a five-year plan that assesses India’s current electricity needs, projected growth, power sources, and challenges.
  • It is prepared in accordance with the National Electricity Policy and notify such plan once in five years.

Central Electricity Regulatory Commission (CERC)

  • CERC is a statutory body constituted under the provision of the erstwhile Electricity Regulatory Commissions Act, 1998 and continued under Electricity Act, 2003 (which has since repealed inter alia the ERC Act, 1998).
  • The main functions of the CERC are to regulate the tariff of generating companies owned or controlled by the Central Government, to regulate the tariff of generating companies other than those owned or controlled by the Central Government, if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State, to regulate the inter-State transmission of energy including tariff of the transmission utilities, to grant licences for inter-State transmission and trading and to advise the Central Government in formulation of National Electricity Policy and Tariff Policy.

State Electricity Regulatory Commission (SERC)

  • The concept of SERC as a statutory body responsible for determination of tariff and grant of licence at intra-State level was envisaged in the erstwhile Regulatory Commissions Act, 1998 and has been continued in the Electricity Act, 2003 (which has since repealed inter alia the ERC Act, 1998).
  • Main responsibilities of the SERC are to determine the tariff for generation, supply, transmission and wheeling of electricity, whole sale, bulk or retail sale within the State; to issue licences for intra-State transmission, distribution and trading; to promote co-generation and generation of electricity from renewal sources of energy etc.

4. SECTION 124A OF THE INDIAN PENAL CODE (IPC)

TAG: GS 2: GOVERNANCE

CONTEXT: The Section 124A of the Indian Penal Code (IPC) dealing with sedition needs to be retained but certain amendments could be made for greater clarity regarding its usage, the 22nd Law Commission has said in its report to the government.

EXPLANATION:

Highlights of the 22nd Law commission report:

  • The commission said sedition being a “colonial legacy” is not a valid ground for its repeal but in view of the misuse of Section 124A, the panel has recommended that the Centre issue model guidelines to curb any misuse.
  • In this context, it is also alternatively suggested that a provision analogous to Section 196(3) of the Code of Criminal Procedure, 1973 [CrPC] may be incorporated as a proviso to Section 154 of CrPC, which would provide the requisite procedural safeguard before filing of an FIR with respect to an offence under Section 124A of IPC.
  • The Law Commission said the existence of laws such as Unlawful Activities (Prevention) Act (UAPA) and the National Security Act (NSA) does not by implication cover all elements of the offence envisaged under Section 124A of the IPC.
  • Further, in the absence of a provision like Section 124A of IPC, any expression that incites violence against the government would invariably be tried under the special laws and counter-terror legislation, which contain much more stringent provisions to deal with the accused.
  • While any alleged misuse of Section 124A of IPC can be reined in by laying down adequate procedural safeguards, repealing the provision altogether can have “serious adverse ramifications for the security and integrity of the country, with the subversive forces getting a free hand to further their sinister agenda as a consequence”.

IPC Section 124 A:

  • The IPC Section 124 A says, “Whoever, by words, either spoken or written, or by signs, or by visible representation, or otherwise, brings or attempts to bring into hatred or contempt, or excites or attempts to excite disaffection towards the Government estab­lished by law in India shall be punished with [im­prisonment for life], to which fine may be added, or with impris­onment which may extend to three years, to which fine may be added, or with fine.
  • The expression “disaffection” includes disloyalty and all feelings of enmity. It is a non-bailable offence.
  • Section 124A is useful in the fight against anti-national, separatist, and terrorist factors, among others.
  • It defends the elected government against attempts to destroy it through the use of violent acts and illegal methods.
  • It helps in maintaining the legitimacy of the government established by law is a necessary condition for the cohesion of a state.

5. LITHIUM AND MINERAL REGULATION IN INDIA

TAG: PRELIMS PERSPECTIVE

CONTEXT: The news of potentially significant reserves of lithium, an element needed to manufacture batteries used in electric cars and other renewable energy infrastructure, in Jammu and Kashmir has been welcomed universally. Commentators have called this a boost for national prosperity and security without dismissing concerns about the potential social and environmental impacts.

EXPLANATION:

Status of India’s lithium industry:

  • India’s electric-vehicle (EV) market was valued at $383.5 million in 2021, and is expected to expand to $152.21 billion in 2030.
  • India imported 450 million units of lithium batteries valued at $929.26 million (₹6,600 crore) in 2019-2020, which makes the development of the country’s domestic lithium reserves a matter of high stakes. Scholars have argued that the ongoing global transition to low-carbon economies, the rapid expansion of artificial intelligence (AI), and 5G networks will greatly reshape global and regional geopolitics. The access to and control over rare minerals, such as lithium and cobalt, will play a crucial role in these epochal changes.

How do other countries manage lithium reserves?

  • The Supreme Court also recalled that the Union government could always ban private actors from mining sensitive minerals, as is already the case with uranium under the Atomic Energy Act 1962. In today’s context, lithium is as important as, if not more than, uranium.
  • The stories of two South American countries, Chile and Bolivia — which have the largest known reserves of lithium are particularly instructive. And here the government has designated lithium as a strategic resource and its development has been made the exclusive prerogative of the state.

Lithium:

  • Lithium is the world’s softest and lightest metal, needed by battery-powered devices.
  • It is soft enough to be cut with a vegetable knife and light enough to float when put in water.
  • It stores chemical energy and converts it into electrical energy.
  • Also known as ‘White Gold’, lithium attracts a massive demand in global markets as the metal is present in every chargeable electronic and battery-powered gadgets.
  • According to a World Bank report, the global demand for lithium metal will increase by 500 percent by 2050.
  • The metal is also widely used to manufacture wind turbines, solar panels, and EVs – which are the leading carbon-neutral alternatives for the future.
  • A lithium battery is the only alternative for EVs since it has a high power-to-weight ratio, enabling it to provide a large charge while keeping the vehicle’s curb weight low.

Regulation of minerals in India:

  • India’s mineral and mining sector operates under a federal structure where the powers and responsibilities for regulation of the sector are divided between the central government and the respective State governments in accordance with the Union List, State List and the Concurrent List contained in the Seventh Schedule of the Constitution of India.
  • Administration of the mining sector in India is the collective responsibility of the central government and the State governments.
  • The central government has the power under entry 54 of the Union List to regulate mines and mineral development to the extent that such a regulation is declared by the Parliament to be in public interest.
  • The State governments’ power to regulate mines and mineral development under entry 23 of the State List is subject to the power of the central government.
  • Further to its powers under entry 54 of the Union List, the central government has framed the Mines & Minerals (Development and Regulation) Act 1957 (MMDR Act), which is the principal legislation governing the mineral sector (other than petroleum and natural gas) in India.
  • Minerals are classified into minor minerals and major minerals. Minor minerals include building stones, gravel, ordinary clay, ordinary sand and other minerals that the central government declares to be a minor mineral. Minerals that cannot be categorised as minor minerals are considered to be major minerals and include coal, manganese ore and iron ore, as well as other minerals used for industrial purposes.



TOP 5 TAKKAR NEWS OF THE DAY (31st MAY 2023)

1. EVERGREENING OF LOANS

TAGS: GS 3: ECONOMY

CONTEXT: Reserve Bank of India (RBI) Governor raised red flags over banks adopting innovative methods for evergreening of loans covering up the real status of stressed loans of corporates to project an artificial clean image in cahoots with corporates. However, bankers differ, saying that sometimes it is practical to extend liquidity support to companies that are genuinely facing issues.

EXPLANATION:

What is evergreening of loans?

  • The process of evergreening of loans, a form of zombie lending, is typically a temporary fix for a bank. If an account turns into a non-performing asset (NPA), banks are required to make higher provisions which will impact their profitability.
  • So, to avoid classifying a loan as an NPA, banks adopt the evergreening of loans. In the past, many banks had indulged in dressing up bad loans and given additional funds to companies who didn’t have the capacity to repay.

How evergreening of loans are done?

  • An accommodative monetary policy creates an enabling environment for weak banks to evergreen loans to zombies and keeps them alive. The RBI has been following an accommodative policy since March 2020 when the pandemic struck the country.
  • It is done by bringing two lenders together to evergreen each other’s loans by sale and buyback of loans or debt instruments.
  • Here, good borrowers being persuaded to enter into structured deals with a stressed borrower to conceal the stress.
  • It is done by use of internal or office accounts to adjust borrower’s repayment obligations.
  • It is done by renewal of loans or disbursement of new/additional loans to the stressed borrower or related entities closer to the repayment date of the earlier loans.

Consequences:

  • Most of the evergreening has happened in public sector banks which subsequently led to a jump in Non Performing Assets(NPAs).
  • Banks delay the recognition of losses due to loan defaults and engage in evergreening, which is essentially the rolling over of debts of unviable borrowers that would have otherwise defaulted. This is purely misgovernance, so that bad loans are made to look good many a time by additional lending to troubled borrowers.
  • Some banks have even extended such loans to wilful defaulters to keep them out of the defaulters’ books.
  • Such resource misallocation supports the crowding-out effects ascribed to zombies, according to an RBI paper on Zombies and the Process of Creative Destruction.
  • It results in credit being diverted to weak entities – which is ultimately diverted for other purposes or it becomes a bad loan – depriving the genuine credit needs of good borrowers.

When do banks evergreen loans?

  • Restructuring is often used by banks for ‘evergreening’ problem accounts to keep the reported NPA levels low.
  • However, with the enactment of the bankruptcy code, evergreening has declined but recovery has remained abysmally low.
  • It normally happens due to the unholy relationship between bankers and borrowers.

How can evergreening be stopped?

  • As suggested by committee to Review Governance of Boards of Banks wherever significant evergreening in a bank is detected by the RBI, penalties should be levied through cancellations of unvested stock options and claw-back of monetary bonuses on officers concerned.
  • The primary defence against evergreening must however come from the CEO, the audit committee and the board. The audit committee, in particular, needs to be particularly vigilant.

What is Non Performing Assets(NPA):

  • A loan turns into a nonperforming asset, or NPA, if the interest or instalment remains unpaid even after the due date and remains unpaid for a period of more than 90 days.

Different types of non-performing assets depend on how long they remain in the NPA category.

a) Sub-Standard Assets: An asset is classified as a sub-standard asset if it remains as an NPA for a period less than or equal to 12 months.

b) Doubtful Assets: An asset is classified as a doubtful asset if it remains as an NPA for more than 12 months.

c) Loss Assets: An asset is considered a loss asset when it is “uncollectible” or has such little value that its continuance as a bankable asset is not suggested. However, some recovery value may be left in it as the asset has not been written off wholly or in parts.

2. LEGAL PROVISIONS OF THE CONTRACT

TAGS: GS 2: GOVERNANCE

CONTEXT: The Supreme Court has held that the government, when entering into a contract under the President’s name, cannot claim immunity from the legal provisions of that contract under Article 299 of the Constitution.

EXPLANATION:

Issue:

  • The case dealt with an application filed by Glock Asia-Pacific Limited, a pistol manufacturing company, against the Centre regarding the appointment of an arbitrator in a tender-related dispute
  • Glock Asia Pacific entered into a contract with the Ministry of Home Affairs for the supply of 31,756 Glock pistols. Subsequently, there was a dispute between the two parties due to the Centre invoking a performance bank guarantee.
  • Glock then issue a notice invoking arbitration, nominating a retired DelhiHigh Court judge as the sole arbitrator. When the government was called to accept this, it said that the arbitrator’s nomination violated one of the tender conditions that said an officer in the Law Ministry, appointed by the MHA Secretary, would be the arbitrator in case of a dispute.
  • Thus, Glock challenged this clause in the agreement, which allowed a government officer to resolve the difference between the two parties as an arbitrator, as one party here was the MHA itself.
  • A performance bank guarantee, similar to a letter of credit, is the bank’s promise that it will meet the debtor’s liabilities, provided that he fails to meet the contractual obligations.
  • A letter of credit is essentially a financial contract between a bank, a bank’s customer and a beneficiary. Generally issued by an importer’s bank, the letter of credit guarantees the beneficiary will be paid once the conditions of the letter of credit have been met.
  • Letters of credit are used to minimize risk in international trade transactions where the buyer and the seller may not know one another.

What did the court hold?

  • One of the major grounds of the challenge given under Section 12(5) of the Arbitration and Conciliation Act, 1996, says that notwithstanding any prior agreement, any person whose relationship with the parties or counsel of the dispute falls under any of the categories in the Seventh Schedule will be ineligible to be appointed as an arbitrator.
  • The Seventh Schedule includes relationships where the arbitrator is an employee, consultant, advisor, or has any other past or present business relationship with a party.
  • Deciding the case in Glock’s favour, the court observed that the arbitration clause allowed a “serving employee of the Union of India, a party to the contract, to nominate a serving employee of the Union of India as the Sole Arbitrator.” Holding this to be in conflict with Section 12(5), the court allowed the present application.
  • The court also appointed former SC judge Justice Indu Malhotra “as the Sole Arbitrator to adjudicate upon the disputes” in the case.
  • Referring to the recommendation of the 246th Law Commission Report, which dealt with the issue of contracts with government entities, the court observed that when the party appointing an arbitrator is the State, “the duty to appoint an impartial and independent adjudicator is even more onerous.”
  • Thus, the court rejected the Centre’s reliance on Article 299, saying, “Article 299 only lays down the formality that is necessary to bind the government with contractual liabilityand not “the substantial law relating to the contractual liability of the Government”, which is to be found in the general laws of the land.

Article 299 of the Constitution:

  • Article 298 grants the Centre and the state governments the power to carry on trade or business, acquire, hold, and dispose of property, and make contracts for any purpose,
  • Article 299 delineates the manner in which these contracts will be concluded.
  • Articles 298 and 299 came after the Constitution came into effect and the government entered into contracts even in the pre-independence era.
  • According to the Crown Proceedings Act of 1947, the Crown could not be sued in court for a contract it entered into.
  • Article 299 of the Constitution provides that “all contracts made in the exercise of the executive power of the Union or of a State shall be expressed to be made by the President or by the Governor of the State” and that all such contracts and “assurances of property made in the exercise of that power shall be executed” on behalf of the President or the Governor by persons in a manner as directed and authorised by them.
  • Further, the phrase ‘expressed to be made and executed’ under Article 299 (1) means that there must be a deed or contract in writing and that it should be executed by a person duly authorised by the President of the Governor on their behalf.
  • The objective behind Article 299(1), as per the 1954 top court ruling in ‘Chatturbhuj Vithaldas Jasani v. Moreshwar Parashram & Ors’, is that there must be a definite procedure according to which contracts must be made by agents acting on the government’s behalf; otherwise, public funds may be depleted by unauthorized or illegitimate contracts. It implies that contracts not adhering to the manner given in Article 299(1) cannot be enforced by any contracting party.
  • However, Article 299 (2) says that essentially, neither the President nor the Governor can be personally held liable for such contracts.

What are the requirements for government or state contracts?

  • In its judgement, the court referred to its 1966 ruling in ‘K.P. Chowdhry v. State of Madhya Pradesh. And Others’, which laid down essential requirements for government contracts under Article 299.
  • In that ruling, the top court had reiterated three conditions to be met before a binding contract against the government could arise, namely:

(i)the contract must be expressed to be made by the Governor or the Governor-General

(ii) it must be executed in writing

(iii) the execution should be by such persons and in such manner as the Governor or the Governor-General might direct or authorise.

  • Prior to this, the Apex Court, in its 1962 ruling in ‘State of Bihar v. Messrs. Karam Chand Thapar’, had laid down these three conditions too.

3. A COMMEMORATIVE COIN OF RS 75 DENOMINATION ON INAUGURATION OF NEW PARLIAMENT

TAGS: PRELIMS PERSPECTIVE

CONTEXT: To mark the inauguration of the new Parliament building, Prime Minster released a commemorative coin of Rs 75 denomination. In a notification released ,the Ministry of Finance first announced the launch of the coin. “The coin of Seventy-Five Rupees denomination shall be coined at the Mint for issue under the authority of the Central Government.

EXPLANATION:

  • India has been issuing commemorative coins since the 1960s for several reasons such as paying homage to notable personalities, spreading awareness about government schemes, or remembering key historic events.
  • The country released its first commemorative coin in 1964 in honour of Jawaharlal Nehru, who had passed away that year.

Features of commemorative coin:

  • As per the Ministry of Finance notification, the latest Rs 75 coin is circular in shape with a diameter of 44mm. The composition of the coin is of a quaternary alloy 50 per cent silver, 40 per cent copper, 5 per cent nickel and 5 per cent zinc.
  • “The face of the coin shall bear the Lion Capitol of Ashoka Pillar in the centre, with the legend “सत्यमेि जयते” (Satyameva Jayate) inscribed below, flanked on the left periphery with the word “भारत” (Bharat) in Devnagri script and on the right periphery the word “INDIA” in English.
  • It added that the other side of the coin displays an image of the new parliament building. The inscription “Sansad Sankul” is written in Devanagari script on the upper periphery while the words “Parliament Complex” in English on the lower periphery of the coin.
  • If someone wants to acquire commemorative coins, they can do so by visiting the website of the Securities of Printing and Minting Corporation of India Limited (SPMCIL).
  • The Coinage Act, 2011 gives the central government the power to design and mint coins in various denominations. In the case of coins, the role of the RBI is limited to the distribution of coins that are supplied by the central government.
  • All coins are minted in the four mints owned by the Government of India in Mumbai, Hyderabad, Kolkata and Noida

Securities of Printing and Minting Corporation of India Limited (SPMCIL)

  • It a wholly owned Schedule ‘A’ Miniratna Category-I company of Government of India, incorporated on 13th January, 2006.
  • SPMCIL, technically a new entity, has centuries-old experience in Security Printing and Minting.
  • The management, control, maintenance and operations of the erstwhile 9 production units under Currency and Coinage division, Department of Economic Affairs, Ministry of Finance, Government of India, was transferred to SPMCIL on February 10, 2006.
  • The Ministry of Finance exercises its administrative control over SPMCIL through Board of Directors.
  • SPMCIL is engaged in the manufacture/ production of Currency and Bank Notes, Security Paper, Non-Judicial Stamp Papers, Postal Stamps & Stationery, Travel Documents viz. Passport and Visa, Security certificates, Cheques, Bonds, Warrant, Special Certificates with security features, Security Inks, Circulation & Commemorative Coins, Medallions, Refining of Gold & Silver, and Assay of Precious Metals.

Coinage Act, 2011

  • The Coinage Act was enacted on 1st September 2011 and it extends to the whole of India.
  • The Coinage Act, 2011 was enacted to consolidate the laws in relation to coinage and the mints and its protection.
  • The Act puts a strict bar on activities like melting, destruction, making or possession of the coins thereof for issue and for matters connected therewith or incidental thereto
  • RBI functions as an agent of the Government in the distribution of Coins. It is responsible for making decisions on the pattern, production and the all-inclusive management of the nation’s currency, with the aim of ensuring an adequate supply of clean and genuine notes.

Under the Act, the Government has the authority to —

  • Establish a Mint at any place which may be managed by it or by any other person, upon whom the purpose is devolved
  • Abolish any Mint.

4. GURU RAVIDAS

TAGS: GS 1: ART AND CULTURE

CONTEXT: In California, members of an under-the-radar, minority religious community are stepping into the public eye to advocate for making the state the first in the nation to outlaw caste bias. They are the Ravidassia followers of Ravidass, a 14th century Indian guru who preached caste and class equality. There are about 20,000 members of the community in California, most of them in the Central Valley.

EXPLANATION:

Guru Ravidass:

  • Ravidass was born in the 14th century in a village near Varnasi, India, to a family of cobblers and tanners who belonged to the then-untouchable or leather-working caste known as “chamars.”
  • Guru Ravidassbelonged to the lowest-rung of the caste system formerly considered untouchable and also known as Dalit, which means “broken” in Hindi.
  • Ravidass was an Indian guru, mystic and poet who was one of the most renowned figures in the North Indian bhakti movement, which placed love and devotion to god above all and preached against the caste system.
  • The Guru Granth Sahib, which is the sacred text of Sikhism, bears 40 verses or shabads of Ravidass.

Ravidassia temples:

  • A Ravidassia place of worship is called a sabha, dera, gurdwara or gurughar, which could all be translated as temple.
  • The temples serve a post-worship meal as Sikh gurdwaras also do, which is known as langar.
  • Ravidassia temples often display idols and/or pictures of Guru Ravidass in the prayer halls.

The Ravidassia identity:

  • Many male Ravidassia members wear long hair in a turban and carry Sikh articles of faith such as the kada or bracelet, kangha or wooden comb and kirpan, the sheathed, single-edged knife.
  • Many men and women in the community also have Sikh last names Singh and Kaur.
  • Idols and images of Ravidass, however, can only be seen in a Ravidass temple.
  • In addition, the community celebrates the birthday of their guru, which typically falls in February. Many Ravidass temples also observe the birth anniversary of B.R. Ambedkar, the Indian Dalit rights icon whose given name was Bhimrao.
  • The faith also has followers who are Hindu and those who are from different parts of India.
  • Ravidassia community members in California are largely of Punjabi descent.

5. ENVIRONMENTAL IMPACT OF CONSUMPTION

TAGS: GS 3: ENVIRONMENT

CONTEXT: The ever-increasing demand for agricultural products is leading to significant social and environmental consequences worldwide. The expansion of international trade has created global supply chains, directly linking consumers to geographically-distant impacts, including carbon emissions, biodiversity loss, freshwater depletion, soil degradation and labour-rights issues – all of which have local, regional, and global relevance.
EXPLANATION:

  • Due to its vast size and consumer market, India is a global anchor of the trade in agricultural products. It has also undergone remarkable social and economic development over the last several decades. This has led to an increasing demand as well as supply of these products.
  • Large land areas in India are used to service the international demand for grains, fruits, and vegetables, among other products, which puts pressure on national soil and water resources. At the same time, India’s vast consumer market means that large amounts of land, even outside its borders, are used to satisfy domestic demand.

What is food-based impact accounting?

  • The expansion of such imports has contributed to increasing the environmental pressure in the exporting countries.
  • Tackling these demand-supply dynamics is now a key aspect of international environmental governance.
  • The current paradigm in measuring impacts and allocating responsibility is based on a production-based accounting method: it measures impacts in the place where the products are produced.
  • There are concerns about its limitations in managing ‘leaks’, fixing accountability, and ensuring equity and justice among producers and consumers.

What is consumption-based accounting?

  • Consumption-based accounting accounts for impacts at the point of consumption, attributing all the social and environmental impacts that occurred during production and trade to the final products and to the eventual consumers.
  • That is, the approach urges the consumer (whether social groups or countries) to accept responsibility for the embodied or ‘virtual’ impacts of the product that is being consumed.
  • This approach has become prominent thanks to growing concerns around the divide between countries that are producers and those that are consumers, leading to a high degree of international co-dependence.

What is the demand perspective?

  • From a demand perspective, the basis for this approach is straightforward: since the pressure on natural and human resources is largely the direct result of consumption practices in developed economies, the responsibility for any consequences due to the production process should fall on those consumers as well.
  • A consumption-based approach thus highlights the responsibility of industrialised states to mitigate impact and the rights of developing economies to not carry an excexcessive burden. This is an extension of the principle of common but differentiated responsibilities that make up global climate governance.

What is the supply perspective?

  • From a supply perspective, the proponents of consumption-based accounting claim that it can encourage cleaner production since producer countries are implicitly encouraged to implement strategies that lower the environmental footprint of their exports.
  • The approach can also go a long way to fix ‘leaks’ in production systems, where production is often taken to jurisdictions that are relatively lenient about production standards (including India).

What are the benefits for environmental action?

  • The application of this approach to estimate carbon emissions, in the form of embodied emissions, and water use, in the form of virtual water, has also been around in the scientific literature for some time, but has only recently made inroads into policy making.
  • Even from a consumption-based accounting perspective, India finds itself in a unique position. Currently, major developed economies have an environmental footprint in India because of their consumption of Indian agricultural produce. Conversely, India’s own deforestation footprint outside its borders has increased over the last two decades and is rapidly growing, even if it remains below that of several G-20 countries on a per-capita basis.



TOP 5 TAKKAR NEWS OF THE DAY (26th MAY 2023)

1. DANCING GIRL OF MOHENJODARO

TAGS: GS 1: ART AND CULTURE

THE CONTEXT: On the occasion of International Museum Day (May 18), Prime Minister inaugurated the International Museum Expo in Delhi’s Pragati Maidan. During the ceremony, PM Modi also unveiled the Expo’s mascot a “contemporised” version of the famous Dancing Girl of Mohenjodaro. “

EXPLANATION:

Dancing Girl of Mohenjodaro

  • The figurine is a naturalistic free-standing sculpture of a nude woman, with small breasts, narrow hips, long legs and arms compared to her torso, and a short torso and wears a stack of 25 bangles on her left arm and her head is tilted slightly backward and her left leg is bent at the knee.
  • It was made about 2500 BC, the statuette was found in the remains of a small house in the southwestern quarter of Mohenjo Daro by Indian archaeologist D. R. Sahni [1879-1939] during his 1926-1927 field season at the site.
  • Vast majority of figurines at IVC sites are terracotta, made from fired clay. Only a handful of Harappan figurines are carved from stone such as the famous priest-king figure or dancing lady which is made of lost-wax copper bronze.
  • Human figurines can give insight into concepts of sex, gender, sexuality and other aspects of social identity.

Lost wax (cire perdue) method:

  • The lost wax method used by Harappan metallurgists involved first carving the object out of wax, then covering it in wet clay.
  • Once the clay was dried, holes were bored into the mold and the mold was heated, melting the wax. The empty mold was then filled with a melted mixture of copper and tin. After that cooled, the mold was broken, revealing the copper-bronze object.

City of Mohenjodaro:

  • The ruins of the huge city of Moenjodaro discovered in 1921 built entirely of unbaked brick in the 3rd millennium B.C. lie in the Indus valley.
  • The archaeological ruins are located on the right bank of the Indus River, 510 km north-east from Karachi, and 28 km from Larkana city, Larkana District in Pakistan’s Sindh Province.
  • The well planned city mostly built with baked bricks and having public baths; a college of priests; an elaborate drainage system; wells, soak pits for disposal of sewage, and a large granary, bears testimony that it was a metropolis of great importance, enjoying a well organized civic, economic, social and cultural system.
  • Mohenjodaro comprises two sectors:
  1. a citadel area in the west where the Buddhist stupa was constructed with unbaked brick over the ruins of Moenjodaro in the 2nd century AD
  2. the lower city ruins lies to the east spread out along the banks of the Indus where buildings are laid out along streets intersecting each other at right angles, in a highly orderly form of city planning that also incorporated systems of sanitation and drainage.

Major archaeological findings of Mohenjo Daro

  • The great bath
  • Citadel
  • Bronze statue of dancing girl
  • Bronze buffalo
  • Steatite statue of a bearded priest
  • Seal of Pashupati
  • The great granary
  • Assembly hall
  • 3 cylindrical-shaped seals similar to Mesopotamian ones.
  • Terracotta toys
  • A piece of woven cloth

2. KRISHNA RIVER WATER SHARING DISPUTE

TAGS: GS 2: INTER STATE WATER DISPUTE

THE CONTEXT: The nagging dispute over the water share of the Krishna river between Andhra Pradesh (A.P.) and Telangana remains unresolved, even nine years after the bifurcation of the combined State.

EXPLANATION:

Current mechanism of Krishna river dispute:

  • There is no mention of water shares in the Andhra Pradesh Reorganisation Act, 2014
  • At a meeting convened by the then Ministry of Water Resources in 2015, the two States had agreed for sharing water in the 34:66 (Telangana:A.P.) ratio as an ad hoc arrangement with the minutes clearly specifying that it has to be reviewed every year.
  • The arrangement in the Act was only for the management of water resources by setting up two Boards, the Krishna River Management Board (KRMB) and the Godavari River Management Board (GRMB).
  • The KRMB, however, continued the same ratio year after year in spite of the opposition by Telangana.
  • In October 2020, Telangana raised its voice for an equal share, till water shares are finalized and refused to continue the existing arrangement.
  • Unable to convince the member States, the river Board has referred the matter to the Ministry of Jal Shakti (MoJS).

Constitutional provisions

  • As water comes under state list. According to Entry 17 of State List, states can legislate with respect to rivers.
  • However, Entry 56 of the Union List gives the Central government the power to regulate and develop inter-state rivers and river valleys.
  • Article 262 empowers Parliament to provide for the adjudication of any dispute or complaint with respect to the use, distribution or control of the waters of, or in, any inter-State river or river valley.
  • As per Article 262, the Parliament has enacted the following:
  1. River Board Act, 1956: This empowered the GOI to establish Boards for Interstate Rivers and river valleys in consultation with State Governments. Till date, no river board has been created.
  2. Inter-State Water Dispute Act, 1956: Under this act, if a state government or governments approach the Centre for the constitution of a tribunal, the government may form a tribunal after trying to resolve the dispute through consultations.

Features of River Boards Act 1956

  • It provides for the establishment of River Boards, for the regulationand development of inter-State rivers and river valleys.
  • Central Government may establish a Board on a request received from a State Government or otherwise for “advising the Government interested” in relation to such matters concerningthe regulation or development of an inter-State river or river valley (or any specified part) as maybe notified by the Central Government.
  • Different Boards may be established for different inter-State rivers or river valleys.
  • The Board is to consist of the Chairman and such other members as the Central Governmentthinks fit to appoint. They must be persons having special knowledge and experience in irrigation,electrical engineering, flood control, navigation, water conservation, soil conservation,administration or finance.
  • Functions of the Board are set out in detail in section 13 of the Act as covering conservation of the water resources of the inter-State river, schemes for irrigationand drainage, development of hydro-electric power, schemes for flood control, promotion ofnavigation, control of soil erosion and prevention of pollution.
  • But the functions of the Board are advisory and not adjudicatory.
  • By section 14(3), the Board is directed to consult all the Governments concerned and to securetheir agreement, as far as possible.

Features of Inter-State Water Disputes Act, 1956

  • A State Government which has a water dispute with another State Government may request theCentral Government to refer the dispute to a tribunal for adjudication.
  • The Central Government, if it is of opinion that the dispute cannot be settled by negotiation, shallrefer the dispute to a Tribunal.
  • The Tribunal’s composition is laid down in the Act. It consists of a Chairman and two other members, nominated by the Chief Justice of India from among persons who, at the time of such nomination, are Judges of the Supreme Court. The Tribunal can appoint assessors to advise it in the proceedings before it.
  • On the reference being made by the Central Government, the Tribunal investigates the matterand makes its report, embodying its decision. The decision is to be published and is to be finaland binding on the parties.
  • Jurisdiction of the Supreme Court and other courts in respect of the dispute referred to the
    Tribunal is barred.
  • The Central Government may frame a scheme, providing for all matters necessary to give effectto the decision of the Tribunal. The scheme may, inter alia, provide for establishing an authorityfor implementing (section 6A).

Water Dispute Tribunals in India:

 Tribunal States Concerned Date of
Constitution
Current Status
Godavari Water Disputes Tribunal Maharashtra, Andhra Pradesh, Karnataka, Madhya Pradesh, Orissa April 1969 Report and decision given in July 1980.
Krishna Water
Disputes Tribunal – I
Maharashtra,
Andhra Pradesh, Karnataka,
April 1969 Report and decision given in May 1976.
Narmada Water Disputes Tribunal Rajasthan, Madhya Pradesh, Gujarat, Maharashtra October 1969 Report and decision given in December 1979. Narmada Control Authority (NCA) was constituted to implement the decision.
Ravi & Beas
Water Tribunal
Punjab, Haryana, Rajasthan April 1986 Report and decision given in April
1987. Further Report is pending.
Cauvery Water Disputes Tribunal Kerala, Karnataka, Tamil Nadu, Puducherry June 1990 Report and Decision given on 5 February 2007. Supreme Court modified the decision on 16 February 2018. The Cauvery Water Management Authority (CWMA) and Cauvery Water Regulation Committee (CWRC) were constituted to implement the modified decision.
Krishna Water Disputes Tribunal -II Karnataka, Andhra Pradesh, Maharashtra, Telangana April 2004 Report and decision given on 30 December 2010. SLPs filed pending in the Court. The term of the Tribunal has been extended after the bifurcation of Andhra Pradesh. The matter is under adjudication in the Tribunal.
Vansadhara Water Disputes
Tribunal
Andhra Pradesh, Odisha February 2010 Report and decision submitted on 13 September 2017. Further Report is pending.
Mahadayi Water Disputes
Tribunal
Goa, Karnataka, Maharashtra November 2010 Report and decision submitted on 14 August 2018. Further Report is pending.
Mahanadi Water
Disputes Tribunal
Chhattisgarh, Odisha March 2018 Under adjudication by the Tribunal. Report and decision are awaited.

3. NARCO TEST AND ARTICLE 20(3)

TAGS: PRELIMS PERSPECTIVE

THE CONTEXT: Protesting wrestlers at Jantar Mantar said they were willing to undergo a narco analysis test provided it was monitored by the Supreme Court. Taking into consideration the international norms on human rights, the right to a fair trial, and the right against self-incrimination under Article 20(3) of the Constitution, the court said, “We must recognise that a forcible intrusion into a person’s mental processes is also an affront to human dignity and liberty, often with grave and long-lasting consequences.

EXPLANATION:

Narco test:

  • In a ‘narco’ or narco analysis test, a drug called sodium pentothal is injected into the body of the accused, which transports them to a hypnotic or sedated state in which their imagination is neutralised. In this hypnotic state, the accused is understood as being incapable of lying and is expected to divulge information that is true.
  • Sodium pentothal or sodium thiopental, is a fast-acting, short-duration anaesthetic used in larger doses to sedate patients during surgery. It belongs to the barbiturate class of drugs that act on the central nervous system as depressants.
  • Because the drug is believed to weaken the subject’s resolve to lie, it is sometimes referred to as a “truth serum”.

Polygraph test:

  • A polygraph test is carried out on the assumption that physiological responses triggered when one is lying are different from what they otherwise would be.
  • Rather than injecting drugs into the body, polygraph tests attach instruments like cardio-cuffs or sensitive electrodes to the suspect and measure variables such as blood pressure, pulse rate, respiration, change in sweat gland activity, blood flow, etc., while the suspect is being questioned.

Article 20(3) of the Constitution:

  • Indian Constitution provides immunity to an accused against self-incrimination under Article 20(3) which states ‘No person accused of an offence shall be compelled to be a witness against himself’.
  • This privilege is only available to a person accused of an offence i.e. “person against whom a formal accusation relating to the commission of an offence has been levelled, which may result in prosecution”.
  • In India, a formal accusation can be made by lodging of an F.I.R. or a formal complaint against a person accusing him of committing a crime, it is not necessary that the trial or enquiry should have commenced before a court.
  • Article 20 (3) does not apply to departmental inquiries into allegations against a government servant since there is no accusation of any offence.
  • The privilege against self-incrimination is available at both trial and pre-trial stage i.e. when the police investigation is going on and the person is regarded as an accused, or even if his name is not mentioned in the FIR as an accused.

4. NITI AYOG HEALTH INDEX

TAGS: PRELIMS PERSPECTIVE

THE CONTEXT: The three southern states of Kerala, Tamil Nadu and Telangana emerged as the top performers among the ‘larger states’ in the NITI Aayog’s annual ‘health index’ for the Covid year of 2020-21. While Tripura was the best among the ‘smaller states’, Delhi ranked at the bottom of the Union territories’ list.

EXPLANATION:

Outcomes of fifth health index report:

  • Among the 19 ‘larger states’, Kerala, Tamil Nadu and Telangana have emerged as the top three performers, occupying first, second and third place respectively, in terms of overall performance. Bihar (19th), Uttar Pradesh (18th) and Madhya Pradesh (17th) are at the bottom of the list.
  • In terms of incremental performance, Rajasthan, Uttarakhand and Odisha emerged as the top three performers in 2020-21, as compared to their performance in 2019-20.
  • Among the eight smaller states, Tripura has recorded the best overall performance, followed by Sikkim and Goa; Arunachal Pradesh (6th), Nagaland (7th) and Manipur (8th) are at the bottom.
  • And among the eight UTs, Lakshadweep has been ranked as the top performer in terms of overall performance, while Delhi ranked at the bottom.

Health Index:

  • It is an “annual tool to assess the performance” of states and UTs.
  • It is divided in three parts – larger states, smaller states and union territories.
  • Niti Aayog brings out the index in collaboration with the Union Health Ministry and World Bank.
  • It is a weighted composite index based on 24 indicators grouped under the domains of ‘health outcomes’, ‘governance and information’, and ‘key inputs/ processes’ and each domain has been assigned weight based on its importance with higher score for outcome indicators.
  • The ‘health outcomes’ domain include indicators like neonatal mortality rate, total fertility rate, sex ratio at birth, immunisation coverage, proportion of institutional deliveries, total case notification rate of tuberculosis, and proportion of people living with HIV on antiretroviral therapy.
  • The ‘governance and information’ domain includes indicators like proportion of institutional deliveries, average occupancy (in months) of three key posts at state level, average occupancy (in months) of the chief medical officer, and days taken for fund transfer.
  • The ‘key inputs/ processes’ domain is a measure of health infrastructure available, including proportion of functional 24X7 primary healthcare centres, districts with functional cardiac care units, and vacancies in healthcare provider positions.

5. CENSUS AND NATIONAL POPULATION REGISTER

TAGS: PRELIMS PERSPECTIVE

THE CONTEXT: If citizens want to exercise the right to fill the Census form on their own rather than through government enumerators, they will have to first update their National Population Register (NPR) details online. The NPR, first put together in 2010 and updated in 2015, already has the details of 119 crore people. Census 2021, which has been postponed indefinitely, will be the first digital Census giving citizens an opportunity to “self-enumerate” as and when it is conducted.

EXPLANATION:

  • The Office of the Registrar of General of India (ORGI), which conducts the Census, has developed a “Self-Enumeration (SE)” portal which allows the respondents to view and update the information of their households members.
  • The yet-to-be-launched mobile-friendly portal will allow users to register the mobile number in the NPR database, self-enumerate and fill the details under Houselisting Operations.
  • Respondents can update the details of their family members online without the help of an enumerator for privacy and to reduce financial and administrative burden incurred in collection of field data.
  • The portal accessible to “respondents of India” will offer secure and controlled access to the respondent’s family information and authentication based on pre-filled information available with ORGI and One Time Password (OTP) sent to registered mobile number.

Census:

  • The Indian Census is the largest collection of statistical information of Indian citizens to study its society, demography, economics, anthropology, sociology, statistics etc.
  • It is done every 10 years, the census was first conducted in 1872 during the British rule and the first complete census was done in 1881.
  • It is conducted by the Office of the Registrar General and Census Commissioner, India, under the Ministry of Home Affairs, Government of India
  • The last census was done in 2011 and the in 16th census instead of forms, every individual can fill the required details on an app. No document will be required to be shown as proof and self-declaration will suffice.
  • It mentions name of person, relationship to head, sex, date of birth and age, current marital status, religion, mother tongue, literacy status are some of the fundamental questions one can find in almost all census questionnaires.

The Census is conducted in two phases:

  • The first phase the Houselisting Operations (HLO) and Housing Census is to be conducted with simultaneous updating of NPR.
  • Population enumeration is the second and the main phase, which collects details on key social and economic parameters.

Office of the Registrar General and Census Commissioner (ORGI):

  • It is established in the Ministry of Home Affairs under Registrar General and ex-Officio Census Commissioner, India.
  • This organisation is responsible for generating data on population statistics including vital statistics and census.

Functions of ORGI:

(i) Housing & Population Census: The Census Commissioner, India is the statutory authority vested with the responsibility of conducting the Housing & Population Census in India under Census Act, 1948 and the Rules framed thereunder. Planning, coordination and supervision of the field activities; data processing; compilation, tabulation and dissemination of Census results are the primary duties of this office.

(ii) Civil Registration System (CRS): The Census Commissioner, India is also designated as Registrar General, India under the Registration of Births & Deaths (RBD) Act, 1969, which provides for the compulsory registration of births and deaths. In this role, the RGI coordinates the functioning of the civil registration and vital statistics system in the country through all States and UTs.

(iii) Sample Registration System (SRS): Implementation of Sample Registration System, wherein large scale sample survey of vital events is conducted on a half-yearly basis, is also the responsibility of the ORG&CCI. SRS is an important source of vital rates like Birth Rate, Death Rate, Infant Mortality Rate and Maternal Mortality Rate at the State level in the country.

(iv) National Population Register (NPR): In pursuance to provisions contained in Citizenship Rules, 2003 framed under the Citizenship Act, 1955, the National Population Register is prepared by collecting information relating to all persons who are usually residing in the country.

(v) Mother Tongue Survey: The project surveys the mother tongues, which are returned consistently across two and more Census decades. The research programme documents the linguistic features of the selected mother tongues.

National Population Register:

  • The National Population Register (NPR) is a Register containing details of persons usually residing in a village or rural area or town or ward or demarcated area within a ward in a town or urban area.
  • According to the Citizenship Rules 2003, the NPR is the first step towards compilation of the National Register of Indian Citizens (NRIC/NRC).
  • NPR was first prepared in 2010 and updated in 2015 under Sub-rule (4) of Rule 3 of the Citizenship (Registration of Citizens and Issue of National Identity Cards) Rules, 2003, framed under the Citizenship Act, 1955.
  • The objective of the NPR is to create a comprehensive database of usual residents in the country. No document will be collected during this exercise.
  • While similar data is collected through the Census, according to Section 15 of the Census Act, 1948, individual data are confidential and “only aggregated data are released at various administrative levels.” The Home Ministry said that data collected under the NPR are shared with States and used by the Central government for various welfare schemes at the individual level.



TOP 5 TAKKAR NEWS OF THE DAY (25th MAY 2023)

1. SENGOL’ TO BE INSTALLED IN THE NEW PARLIAMENT

TAGS: GS 1: ART AND CULTURE

THE CONTEXT: Prime Minister will install the ‘Sengol’, a historical sceptre from Tamil Nadu, in the new Parliament building which is scheduled to be inaugurated in May, 2023. The ‘Sengol’ was received by Independent India’s first Prime Minister from Lord Mountbatten to symbolically represent the transfer of power from the British and was later kept in a museum in Allahabad.

EXPLANATION:

Background:

  • Rajagopalachari suggested that Ceremony that should be followed to symbolise the transfer of power from British to Indian hands should follow Chola model where the transfer of power from one king to another was sanctified and blessed by a high ruler.
  • The symbol used was the handover of ‘sengol’ or sceptre from one king to his successor.
  • It was the head of ancient Shaivite math Thiruvavaduthurai Aadeenam math that presented the Sengol to Indian Prime Minister in 1947.
  • A golden sceptre was crafted by Vummidi Bangaru Chetty, a famous jeweller in the Madras Presidency.

Highlights of inauguration of new Parliament building:

  • A group of musicians playing Tamil Nadu’s traditional instrument, the Nadaswaram, would lead the procession.
  • Additionally, “Adheenams,” or priests from Shaivite mutts in Tamil Nadu, will be present in the Lok Sabha’s Well.
  • The “Oduvars,” or Tamil temple singers, will lyrically recite the “Kolaru Padhigam” in the background as the Nadaswaram musicians enchant with their soulful music.
  • The Sengol will be presented to the prime minister after this revered ceremony and placed in a glass case next to the Speaker’s seat in the House.

Sengol and its significance:

  • It is derived from the Tamil word “Semmai”, meaning “Righteousness”.
  • The sceptre measures five feet in length and has a ‘Nandi’ bull on top, symbolising justice.
  • “Tamil kings had this sengol (a Tamil word for sceptre), which is a symbol of justice and good governance.
  • The two great epics Silapathikaram and Manimekalai records the significance of a sengo

Oduvars or Tamil temple singers:

  • The tradition of Oduvars is over 1,000 years old and the King Raja Raja Chola I set up grants for their services at temples.
  • Rituals in Saivaite temples are considered incomplete without their singing Thirumuraigal: Thevaram and Thiruvachagam.

Nadaswaram

  • Nadaswaram, sometimes known as nagaswaram, nadhaswaram, or nathaswaram is a prominent South Indian classical musical instrument resembling the western oboe.
  • The Nadaswaram’s body is traditionally constructed of aacha tree, although bamboo, sandalwood, copper, bronze, ebony, and ivory are also used nowadays.
  • It is played at practically all Hindu weddings and temples in the South Indian tradition and is regarded as particularly auspiciou

2. FORUM FOR INDIA-PACIFIC ISLANDS COOPERATION (FIPIC)

TAGS: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: Indian PM landed in the capital city of Port Moresby for his first visit to the country, and also is the first by any Indian prime minister, for the Forum for India-Pacific Islands Cooperation (FIPIC) summit, 2023.

EXPLANATION:

Forum for India-Pacific Islands Cooperation (FIPIC):

  • FIPIC was launched by Indian Minsitry in Fiji in November 2014.
  • FIPIC includes 14 island countries – Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu – that are located in the Pacific Ocean, to the northeast of Australia.

Idea behind FIPIC:

  • Despite their relatively small size and considerable distance from India, many of these islands have large exclusive economic zones (EEZs).
  • India’s larger focus is on the Indian Ocean where it has sought to play a major role and protect its strategic and commercial interests.
  • FIPIC initiative then marks a serious effort to expand India’s engagement in the Pacific region as well.

Exclusive Economic Zones (EEZs) is the distance up to which a coastal nation has jurisdiction over the ocean, including both living and non-living resources. It generally goes to 200 nautical miles or 230 miles (around 370 km) beyond a nation’s territorial sea.

1st FIPIC Summit:

  • FIPIC-I took place in 2014 at Suva, Fiji’s capital city.
  • India announced various development assistance initiatives and other cooperation projects in areas of climate change, trade, economy, telemedicine and teleeducation, IT, grants for community development projects, etc.

2nd FIPIC Summit:

  • FIPIC-II took place in 2015 at Jaipur City, India.
  • India approached the event from a large diplomatic perspective, calling for a “dedicated seat for Small Island Developing States in an expanded and reformed UN Security Council in both categories”.
  • Seek for concrete and effective outcome on climate change conference at COP 21 in Paris t

India-Pacific Small Island Developing States (PSIDS) Leaders’ Meeting:

  • It was held in 2019 comprising delegations of 12 out of the 14 Pacific Islands countries in New York on the sidelines of the 74th UN General Assembly.
  • The Indian government then announced an allocation of $12 million grant ($1 million to each PSIDS) towards implementation of high-impact developmental projects in the area of their choice.

Initiatives by India at 3rd FIPIC summit 2023:

  • Establishment of a super-specialty cardiology hospital in Fiji.
  • Sea ambulances will be provided to all the 14 Pacific island countries.
  • Similar to Jaipur Foot Camp, 2022 which was conducted in Fiji where prosthetic limbs were provided free of cost to people , similar camp will be set up in Papua New guinea this year and starting from 2024, two such camps will be organised every year in the Pacific island countries.

Small Island Developing States:

  • Small Island Developing States (SIDS) are a distinct group of 37 UN Member States and 20 Non-UN Members/Associate Members of United Nations regional commissions that face unique social, economic and environmental vulnerabilities.
  • The three geographical regions in which SIDS are located are: the Caribbean, the Pacific, and the Atlantic, Indian Ocean and South China Sea (AIS).
  • SIDS were recognized as a special case both for their environment and development at the 1992 United Nations Conference on Environment and Development held in Rio de Janeiro, Brazil.
  • The aggregate population of all the SIDS is 65 million, slightly less than 1% of the world’s population, yet this group faces unique social, economic, and environmental challenges.

3. NEW TAX RULES FOR ONLINE GAMING

TAGS: GS 3: ECONOMY

THE CONTEXT: The Central Board of Direct Taxes (CBDT) has come out with guidelines for Tax Deducted at Source (TDS) for online gaming platforms, defining a threshold of Rs 100 for deducting tax for winnings from online gaming. Bonus, referral bonus, and incentives will also be counted towards the taxable winnings on an online gaming platform.

EXPLANATION:

New guidelines for TDS for online gaming:

  • Online gaming platforms will not be required to deduct tax at the source for a player if the net winning does not exceed Rs 100.
  • CBDT circular also said that bonus, referral bonus, incentives etc are given by the online gaming company to the intermediate user and they are to be considered as taxable deposit under Rule 133 of the Income-tax Act.
  • CBDTsaid that in order to remove the difficulty in deducting tax at source under section 194BA of the Act for “insignificant withdrawal”, it is clarified that tax may not be deducted on withdrawal on the satisfaction of all of the following conditions:
  1. net winnings comprised in the amount withdrawn does not exceed Rs 100 in a month
  2. tax not deducted on account of this concession is deducted at a time when the net winnings comprised in withdrawal exceeds Rs 100 in the same month or subsequent month or if there is no such withdrawal, at the end of the financial year
  3. the deductor undertakes the responsibility of paying the difference if the balance in the user account at the time of tax deduction under section 194BA of the Act is not sufficient to discharge the tax deduction liability calculated in accordance with Rule 133

Online gaming regulations:

  • The Ministry of Electronics and Information Technology (MEITY) notified as nodal ministry for all matters pertaining to online gaming industry and e-sports
  • MEITY notified amendment to the Existing IT Rules 2021 i.e. the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 (“Amended Rules”) with aim to regulate online gaming.
  • Key Highlights of the Amended Rules are as follows:
  1. self-regulatory structure for the online gaming industry
  2. introduction of new definitions like ‘online games’, ‘online real money games’, ‘permissible online games’, and ‘permissible online real money games’
  3. Introduced the concept of “Intermediaries”e. entities that store or transmit data on behalf of other persons and include telecom and internet service providers, online marketplaces, search engines and social media sites
  4. With an aim to track such transactions, the government had inserted a new section 194BA in the Income-tax Act, 1961 through Finance Act 2023, which mandated online gaming platforms to deduct income-tax on the net winnings in the person’s user account.
  5. Tax is required to be deducted at the time of withdrawal as well as at the end of the financial year. As per section 194BA, TDS will be applicable at the rate of 30 per cent on the net winnings from any online gaming.

Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023:

  • Social media intermediaries, with registered users in India above a notified threshold, have been classified as significant social media intermediaries (SSMIs).  SSMIs are required to observe certain additional due diligence such as appointing certain personnel for compliance, enabling identification of the first originator of the information on its platform under certain conditions, and deploying technology-based measures on a best-effort basis to identify certain types of content.
  • The Rules prescribe a framework for the regulation of content by online publishers of news and current affairs content, and curated audio-visual content.
  • All intermediaries are required to provide a grievance redressal mechanism for resolving complaints from users or victims.  A three-tier grievance redressal mechanism with varying levels of self-regulation has been prescribed for publishers.

Central Board of Direct Taxes (CBDT)

  • The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963.
  • It comes under Department of Revenue under the Ministry of Finance.
  • The officials of the Board in their ex-officio capacity also function as a Division of the Ministry dealing with matters relating to levy and collection of direct taxes.
  • The Central Board of Direct Taxes consists of a Chairman and following six Members:
  1.  Chairman
  2.  Member (Income Tax & Revenue)
  3.  Member (Legislation & Systems)
  4.  Member (Administration & Faceless Scheme)
  5.  Member (Investigation)
  6.  Member (Tax Payer Services)
  7.  Member (Audit & Judicial)

4. CARBON BORDER ADJUSTMENT MECHANISM (CBAM)

TAGS: GS 3: ENVIRONMENT

THE CONTEXT: Co-legislators at the European Commission signed the Carbon Border Adjustment Mechanism (CBAM).

EXPLANATION:

Carbon Border Adjustment Mechanism (CBAM):

  • EU’s Carbon Border Adjustment Mechanism (CBAM) is landmark tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.
  • The gradual introduction of the CBAM is aligned with the phase-out of the allocation of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of EU industry.
  • CBAM will ensure the carbon price of imports is equivalent to the carbon price of domestic production by confirming that a price has been paid for the embedded carbon emissions generated in the production of certain goods imported into the EU.
  • The CBAM is designed to be compatible with WTO-rules.

Key Features:

  • Its primary objective is to avert ‘carbon leakage’ by subjecting the import of certain groups of products from 3rd (non-EU and non-EFTA) countries to a carbon levy linked to the carbon price payable under the EU Emissions Trading System (ETS) when the same goods are produced within the EU alongside encouraging producers in non-EU countries to green their manufacturing processes.
  • It refers to a phenomenon where a EU manufacturer moves carbon-intensive production to countries outside the region with less stringent climate policies.
  • It replace EU-manufactured products with more carbon-intensive imports.
  • The CBAM will initially apply to imports of certain goods and selected precursors whose production is carbon intensive and at most significant risk of carbon leakage: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
  • Further scope extensions to include additional products (such as chemicals and polymers) are to be determined by 2026, and the full inclusion of all EU ETS products is planned by 2030.
  • CBAM will enter into force in its transitional phase as of 1 October 2023 during which EU importers must submit quarterly CBAM-reports, stating their imports of the CBAM products, as well as the emissions ‘embedded’ in their imported products. Such emissions are proposed to include direct and indirect emissions occurring during the production process of the imported goods.
  • Once the permanent system enters into force on 1 January 2026, importers will need to declare each year the quantity of goods imported into the EU in the preceding year and their embedded GHG.
  • They will then surrender the corresponding number of CBAM certificates. The price of the certificates will be calculated depending on the weekly average auction price of EU ETS allowances expressed in €/tonne of CO2 emitted. The phasing-out of free allocation under the EU ETS will take place in parallel with the phasing-in of CBAM in the period 2026-2034.
  • Moreover, it will ensure a level playing field between imports and EU products.
  • This would also form part of the continent’s broader European Green Deal which endeavours to achieve 55% reduction in carbon emissions compared to 1990 levels by 2030 and become a climate neutral continent by 205

EU Emissions Trading System (ETS):

  • It also aimed at supporting the decarbonisation of the region’s industries.
  • The ETS had set a cap on the amount of greenhouse gas emissions that can be released from industrial installations in certain sectors.
  • Allowances were to be bought on the open decentralised ETS trading market, however, certain allowances were given out for free to prevent carbon leakage.
  • Though effective in addressing the issue of leakage, EU concluded it dampened the incentive to invest in greener production at home and abroad because of the tendency to rely on free allowances to meet operational requirements and obligations.

5. SUPER COMPUTER

TAGS: GS-3: SCIENCE AND TECHNOLOGY

THE CONTEXT: Ministry of Earth Sciences (MoES) stated that India is set to dramatically scale up its super-computing prowess and install an 18-petaflop system over the course of the year 2023.

EXPLANATION:

What is Supercomputer?

  • Supercomputer is any of a class of extremely powerful computers. The term is commonly applied to the fastest high-performance systems available at any given time.
  • Such computers have been used primarily for scientific and engineering work requiring exceedingly high-speed computations.
  • Common applications for supercomputers include testing mathematical models for complex physical phenomena or designs, such as climate and weather, evolution of the cosmos, nuclear weapons and reactors, new chemical compounds (especially for pharmaceutical purposes), and cryptology.

Supercomputers in India:

  • Currently India’s hosts most powerful, civilian supercomputers Pratyush and Mihir with a combined capacity of 6.8 petaflops are housed at the Indian Institute of Tropical Meteorology (IITM), Pune, and the National Centre for Medium Range Weather Forecasting (NCMRWF), Noida, respectively.
  • They were made operational in 2018 at an investment of ₹438 crore. Both these organisations are affiliated to the Ministry of Earth Sciences(MoES).
  • Pratyush is the fourth fastest supercomputer in the world dedicated for weather and climate research, and follows machines in Japan, USA and the United Kingdom.

Features of Upcoming Supercomputers:

  • The new supercomputers, yet to be named, are imported from French corporation, ATOS an information technology service and consulting company.
  • The new supercomputers too will be housed at the IITM and NCMRWF.
  • It aims to accelerate processing power to such a degree that greatly eases complex mathematical calculations required, for among other things, and forecasting weather over the next few days.
  • The goal is eventually to be able to represent an area by 1 km-square grids and that can be used to warn of cloudburst and such rapidly evolving weather systems.

Supercomputer around world:

  • The fastest high-performance computing system in the world is currently the Frontier-Cray system at Oakridge National Laboratory, United States. This has a peak speed of 1 exa-flop (or about 1,000 petaflops). The top 10 other systems, based on speed, range from about 400 petaflops to 60 petaflops.

FLOPS  (Floating-Point Operations Per Second)

  • Floating-point according to IBM is a method of encoding real numbers within the limits of finite precision available on computers.
  • Using floating-point encoding, extremely long numbers can be handled relatively easily.
  • Flops (floating point operations per second) are an indicator of computers processing speed and a petaflop refers to a 1,000 trillion flops.