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VISIONIAS

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CURRENT AFFAIRS
AUGUST 2015
To
MARCH 2016

Copyright by Vision IAS


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form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
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VISIONIAS
www.visionias.in

CURRENT AFFAIRS
AUGUST 2015

Copyright by Vision IAS


All rights are reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
IAS

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TABLE OF CONTENTS
1. POLITY AND GOVERNANCE __________________________________________________________ 5
1.1. Good Governance and Human Rights ______________________________________________________ 5
1.1.1. Human DNA Profiling Bill, 2015 __________________________________________________________________ 5
1.1.2. SC / ST (Amendment) Bill Passed by Lok Sabha _____________________________________________________ 7
1.1.3. Singapore Governance Lessons for India _________________________________________________________ 8

1.2. Parliament and State Legislature _________________________________________________________ 8


1.2.1. Money Bill ___________________________________________________________________________________ 8
1.2.1.1. Circumventing Upper House Through Money Bill Strategy _________________________________________ 8
1.2.2. Functioning and Conduct of Business _____________________________________________________________ 9
1.2.2.1. Parliamentary Paralysis _____________________________________________________________________ 9

1.3. Centre State Relations ________________________________________________________________ 9


1.3.1. Fiscal Federalism _____________________________________________________________________________ 9
1.3.1.1. Special Category Denied to Andhra Pradesh ____________________________________________________ 9

1.4. E-Governance models and applications __________________________________________________ 11


1.4.1 Initiatives Under CCTNS Projects ________________________________________________________________ 11
1.4.1.1. Names of Chargesheeted Sex Offenders to be Made Public Under CCTNS Project _____________________ 11

2. SOCIAL ISSUES____________________________________________________________________ 12
2.1. Poverty and Exclusion _________________________________________________________________ 12
2.1.1. MGNREGA _________________________________________________________________________________ 12
2.1.1.1. Ministry of Rural Development (MoRD) s New REPORT: MGNREGS UPDATES ________________________ 12

2.2. SC/ST/OBC/Minorities _________________________________________________________________ 12


2.2.1. Nai Manzil Scheme Launched __________________________________________________________________ 12
2.2.2. DRAFT IIM BIll _______________________________________________________________________________ 13

2.3. Other_______________________________________________________________________________ 14
2.3.1. National Handloom Day Celebrated _____________________________________________________________ 14

3. INTERNAL SECURITY / LAW & ORDER _________________________________________________ 15


3.1. Security challenges and their management in border areas ___________________________________ 15
3.1.1. North East Insurgency ________________________________________________________________________ 15
3.1.1.1. NAGA Peace ACCORD_____________________________________________________________________ 15

3.2. Role of external state and non-state actors in creating challenges to internal security______________ 16
3.2.1. UAPA amendment to bring individuals under terror ban list __________________________________________ 16
3.2.2. NIA recommendations for youth saved from terror path ____________________________________________ 16

3.4. Linkages between development and spread of extremism ____________________________________ 17


3.4.1. Centre adopting a five-pronged strategy to contain left wing extremism ________________________________ 17

4. SCIENCE & TECHNOLOGY ___________________________________________________________ 18


4.1. Indigenization of technology and developing new technology _________________________________ 18
4.1.1. ISRO's titanium sponge plant in Kerala fully commissioned___________________________________________ 18
4.1.2. GSLV D6 successfully Launched _________________________________________________________________ 18

4.2. Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology ________ 19
4.2.1. GSAT-6 (Geosynchronous Satellite) ______________________________________________________________ 19
4.2.2. Multi-Application Solar Telescope (MAST) Operationalised at Udaipur Solar OBSERVATORY (USO) ___________ 19
4.2.3. Ebola Vaccine developed ______________________________________________________________________ 20
4.2.4. DISHA (Digital Saksharta Abhiyan) _______________________________________________________________ 20

4.3. Science and Technology- developments and their applications and effects in everyday life __________ 21
4.3.1. Cloud seeding _______________________________________________________________________________ 21
4.3.2. Smart Vault: A fully automated locker ___________________________________________________________ 21
4.3.3. Silage______________________________________________________________________________________ 21
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4.3.4. Aerial seeding _______________________________________________________________________________ 22

4.4. Awareness in the fields of Space _________________________________________________________ 22


4.4.1. UN Kalam Global Sat _________________________________________________________________________ 22

4.5. Indigenization of technology and developing new technology _________________________________ 23


4.5.1. Semi-cryogenic launch vehicle__________________________________________________________________ 23

5. ENVIRONMENT ___________________________________________________________________ 24
5.1.Conservation, environmental pollution and degradation ______________________________________ 24
5.1.1. Increasing number of Migratory Birds InCoringa sanctuary ___________________________________________ 24
5.1.2. Athirappilly hydroelectric project _______________________________________________________________ 24
5.1.3. ESZ around Okhla bird sanctuary notified _________________________________________________________ 24
5.1.4. Majority of ecologically sensitive zones still not notified _____________________________________________ 25
5.1.5. Climate change: Obama unveils Clean Power Plan hailed as US's strongest ever climate action _____________ 26
5.1.6. Use of Firewood for cooking in rural Areas ________________________________________________________ 26
5.1.7. E-Payment Module to deposit compensatory levies into CAMPA Funds ________________________________ 27

5.2. Environmental conservation ____________________________________________________________ 27


5.2.1. Thane Creek declared as Flamingo Sanctuary by MAHARASHTRA GOVERNMENT _________________________ 27
5.2.2. Chengalikodan Banana ________________________________________________________________________ 28
5.2.3. Only Four segments eligible for solar roof top subsidy ______________________________________________ 28
5.2.4. Kikiki huna _________________________________________________________________________________ 29

6. ECONOMY _______________________________________________________________________ 30
6.1. Liberalization impact on Economy _______________________________________________________ 30
6.1.1. Solar Dispute at WTO _________________________________________________________________________ 30

6.2. Tax Evasion __________________________________________________________________________ 30


6.2.1. SEBI to bring managers in Tax Havens under its ambit ______________________________________________ 30
6.2.2. FATCA _____________________________________________________________________________________ 31

6.3. Industry_____________________________________________________________________________ 31
6.3.1. E-Commerce sector __________________________________________________________________________ 31
6.3.1.1. India to lift ceiling on e-commerce exports ____________________________________________________ 31

6.4. Public Sector Banks reforms ____________________________________________________________ 32


6.4.1. Indradhanush Plan ___________________________________________________________________________ 32

6.5. Capital Market _______________________________________________________________________ 33


6.5.1. Easing norms for Infrastructure Investment Trusts _________________________________________________ 33

7. INTERNATIONAL / INDIA AND WORLD ________________________________________________ 34


7.1. India US ___________________________________________________________________________ 34
7.2. India-Italy: Status Quo in Marines Case ___________________________________________________ 34
7.3. India - Afghanistan ____________________________________________________________________ 35
7.4. India UAE: PM's Visit to UAE___________________________________________________________ 35
7.5. India - Iran __________________________________________________________________________ 35
7.6. India and the UNSC ISSUES _____________________________________________________________ 36
7.7. Travel & Tourism Competitive Index 2015 _________________________________________________ 37
7.8. China Pakistan Economic Corridor (CPEC) Project __________________________________________ 37
7.9. Sendai Framework for Disaster Risk Reduction _____________________________________________ 38
7.10. SAARC Promotes Non Wood Forest Produce _____________________________________________ 38
7.11. Jaipur Summit: Forum for India Pacific Islands Cooperation (FIPIC) ___________________________ 39
7.12. Anchor Baby & Birth Tourism: A controversy ______________________________________________ 40
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8. ALSO IN NEWS ___________________________________________________________________ 41


8.1. Tripura passed resolution against capital punishment _______________________________________ 41
8.2. Mysuru Tops Swachh Bharat Ranking _____________________________________________________ 41
8.3. Independence Day Speech of the Prime Minister Important Take Aways _______________________ 41
8.4. Project Masoom by Young India _________________________________________________________ 42
8.5. Linguistic Survey of India to be Published__________________________________________________ 42
8.6. Cabinet approves pact with the Seychelles to curb black money _______________________________ 43
8.7. Gujarat violence: 24x7 situation room to track social media ___________________________________ 43
8.8. Steps taken by govt. to check gold smuggling ______________________________________________ 44
8.9. Use of unused TV spectrum to provide broadband Internet connectivity ________________________ 44
8.10. Samanvay web portal ________________________________________________________________ 44
8.11. Government to announce premium pricing for difficult fields ________________________________ 45
8.12. Banking ____________________________________________________________________________ 45
8.12.1. Approval to Payment Banks ___________________________________________________________________ 45

8.13. India and the Arab League: No Change in India's Position on Palestine _________________________ 45
8.14. India Bangaldesh: MOU to Fight Fake Currency __________________________________________ 46
8.15. India Pakistan _____________________________________________________________________ 46
8.15.1. NSA Meeting Called Off ______________________________________________________________________ 46
8.15.2. India Decides to Boycott CPU Meet ____________________________________________________________ 46

8.16. India Seychelles ____________________________________________________________________ 47


8.17. India China: Daulat Beg Oldie, The Fifth Border Meeting Point ______________________________ 47
8.18. India Myanmar ____________________________________________________________________ 47
8.19. Indian Sailors Get International Identity__________________________________________________ 48
8.20. Concerns WRT to Indians Abducted in Libya ______________________________________________ 48
8.21. Expanded Suez Canal _________________________________________________________________ 48

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1. POLITY AND GOVERNANCE


1.1. GOOD GOVERNANCE AND HUMAN RIGHTS
1.1.1. HUMAN DNA PROFILING BILL, 2015
What is DNA Profiling

DNA Profiling is a technology that can be used


to identify individuals. It is a very sensitive
technique which only needs a few skin cells, a
hair root or a tiny amount of blood or saliva.
DNA profiling is especially useful for solving
crimes but can also be used to confirm if
people are related to each other, such as for
paternity testing.

Why DNA Profiling Law is needed

What is DNA
DNA in an individual's chromosomes controls an
array of visible characteristics (including race,
colouring and sex) as well as invisible
characteristics (such as blood groups and
susceptibility to inherited diseases). The DNA is
the same in all of the cells in the body of an
individual. It is almost certainly true that each
person's DNA is unique (unless he or she has an
identical twin).

At present, DNA testing labs are unregulated


and lack uniform testing protocols and procedures. In the
absence of a legal framework, a database can't be prepared
and maintained.
It depends on the government as to what kind of information it
wants included in the database such as information on only
convicted persons, suspects or all those jailed.
If the database is to include all those in custody, then the DNA
profile of acquitted individuals will have to be deleted, as done
in some countries.

Real Life Examples


Settling paternity suits, like in the
case of former UP chief minister
ND Tiwari. The identity of deposed
Iraqi leader Saddam Hussein was
established through DNA testing.

Salient feature of the Bill


A DNA profiling law is supposed to codify everything and set
procedures for collection, safety, use and access of DNA samples
and data.

DNA data to become admissible as evidence in judicial


proceedings
Handling of DNA testing.
Regulation of use of this information by law enforcement agencies and others.
Two new bodies will be created a DNA Profiling Board that will act as the regulator, and supervise all
activities relating to testing, storage and matching of DNA
samples, and a DNA Data Bank, both at the national level
The Indian Code of Criminal Procedure
and in the states. All existing and new DNA labs will have
was amended in 2005 to enable the
to seek accreditation from the Board. DNA profiles will
collection of a host of medical details
have to be stored in the data bank.
from accused persons upon their arrest
Bill legalizes collection and analysis of the DNA samples
which included DNA profiling and such
for Repeat offenders, suspects, missing persons, unknown
other tests which the registered medical
deceased persons, volunteers for forensic purposes.
practitioner thinks necessary in a
particular case.

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What are the objections


1. Privacy: DNA information can reveal personal details
as well as more intrusive information such as
allergies, susceptibility to diseases, etc. Critics say
the Bill does not have adequate safeguards against
the collection and storage of such information and
its misuse. The Bill does not say who can access the
database, and does not provide a guarantee that it
would not be used for anything other than the
specified purpose.
However, the counter argument is that a very
limited information is proposed to be stored, just 17
sets of numbers out of billions that can tell nothing
about the individual except to act as a unique
identifier. DNA will be collected from a very small
proportion of people, mainly those in conflict of
law.

Misuse of Data: In most countries, the DNA database is used only for criminal investigations, but
Indias bill allows for a lot more. For examples, it can be used to identify victims of accidents or
disasters, to identify missing persons, and for civil
disputes. The bill even allows the creation of
UK setup a DNA database also allowed
population statistics, identification research,
keeping data of more than one million
parental disputes, issues relating to reproductive
innocent people on what was considered
technologies and migration. These provisions could
a criminal database, as the law allowed
one day allow the government to push civilians to
DNA data to be recorded and stored at
provide DNA data.
arrest, rather than waiting for the
Technically it is possible for the data to be used for
individual to be charged with offense.
non-forensic purposes and to decipher information
With Indias poor record on citizen
such as family history, medical history and ancestry.
privacy, the lax provisions in the draft bill
The prescribed form for collection of data from
are worrying.
criminals has a column for "caste", which experts
fear could lead to profiling of certain castes and
population groups.
The UID database already has biometric information for most Indians. If any government in future
decides to link the UID database with the DNA database, it would place in the hands of the
government and its agencies all personal details about millions of citizens.

2. Reliability Issue: There are some circumstances when even DNA data may not be reliable. for instance, if
a person has had blood transfusion or a bone marrow transplant, they will have someone elses DNA in
their body for some time. There are also cases of DNA chimeras, where one individual may possess
multiple genomes. Other times, DNA data recovered from a crime scene may not be enough to produce
a correct match for the algorithms.
3. Consent Issue: The bill does not clarify under what circumstances someones DNA will be collected for
the database with or without consent.
4. On data collection and deletion: When DNA data are collected, the person will also have to provide
their name, gender, address, and their caste. Further, it does not set a limit to how long someones DNA
will kept on record.
5. The Bill has controversial clauses dealing with "issues relating to pedigree" and introducing an intrusive
mode of collecting samples from living persons called "intimate forensic procedure".
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Way forward
There is need to move from eyewitness evidence to forensic evidence, of which DNA is an integral part.
Currently, capabilities are limited and proposed law would help to create the infrastructure, including trained
manpower, to facilitate DNA testing in our country.

1.1.2. SC / ST (AMENDMENT) BILL PASSED BY LOK SABHA


Provisions of Act:

The Bill seeks to amend the Scheduled Castes and


the Scheduled Tribes (Prevention of Atrocities)
Act, 1989.
The Act prohibits the commission of offences
against members of the Scheduled Castes and
Scheduled Tribes (SCs and STs) and establishes
special courts for the trial of such offences and
the rehabilitation of victims.

Actions to be treated as offences


The Act outlines actions by other than SCs/STs
against SCs or STs to be treated as offences.
Certain existing categories are amended and few
new categories of actions are added.
Forcing an SC or ST individual to vote or not vote
for a particular candidate in a manner that is
against the law.
Assaulting or sexual exploiting an SC or ST woman
Preventing SCs/STs from following activities: (a) using common property resources, (b) entering any
place of worship that is open to the public, (c) entering
an education or health institution.
New offences added under the Bill include:
The bill also specifies duties for public servants which,
Garlanding with footwear,
if neglected, shall be punishable with imprisonment.
Compelling to dispose or carry
The duties include:
human or animal carcasses, or do
manual scavenging,
o Registering a complaint or FIR,

Abusing SCs or STs by caste name


o Reading out information given orally, before
in public,
taking the signature of the informant and giving
Attempting to promote feelings of
a copy of this information to the informant etc
ill-will against SCs or STs or
Role of courts:
disrespecting any deceased person
held in high esteem
The Bill specifies that an Exclusive Special Court must
be established at the district level to try offences under
Imposing or threatening a social or
the Bill.
economic boycott.
Special Court may be established to try offences in
districts with fewer cases.
Adequate number of courts must be established so that cases are disposed of within two months.
Appeals of these courts shall lie with the high court, and to be disposed of within three months.
A Public Prosecutor and Exclusive Public Prosecutor shall be appointed for every Special Court and
Exclusive Special Court respectively.
Rights of victims and witnesses
It shall be the duty of the state to make arrangements for the protection of victims, their dependents
and witnesses.
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the Bill may take measures such as: (a) concealing the names of witnesses, (b) taking immediate action in
respect of any complaint relating to harassment of a victim, informant or witness, etc
Any such complaint shall be tried separately and be concluded within two months.

1.1.3. SINGAPORE GOVERNANCE LESSONS FOR INDIA


Recently, Singapore celebrated the Golden Jubilee of its Independence and bade farewell to Lee Kuan Yew (LKY),
the first and longest serving Prime Minister of Singapore. The governance architecture, designed by LKY, has
been a leading cause for Singapore to emerge from third world to the first in just 50 years. It holds valuable
lessons for India to emulate such as:
o
o
o

The competitive salaries in public sector attracted the societys best people into public service
The Singapore government invested heavily in primary education, which enabled a larger share of the
population to participate in the economic growth.
Similar to India, Singapore inherited many of the cultural barriers prevalent in Asian societies.
However, the rigorous campaign encouraged women to join the workforce by making it safer for
women to travel at night and publicly discussing the benefits of a dual-income family.

1.2. PARLIAMENT AND STATE LEGISLATURE


1.2.1. MONEY BILL
1.2.1.1. CIRCUMVENTING UPPER HOUSE THROUGH MONEY BILL STRATEGY
Recently Opposition alleged that government was the eroding legislative powers of Rajya Sabha by deliberately
introducing crucial bills as money bills. Rajya Sabha has virtually no powers regarding passage of money bills.
Constitutional Provisions regarding money bill

Article 110 defines what constitutes money bill and the Constitution has vested power to certify money
bill in Lok Sabha Speaker, whose decision is final.
The money Bill once passed by the Lok Sabha is automatically passed by Parliament if it has been in the
Rajya Sabha for a fortnight (fourteen days). Thus, the Lok Sabha alone has the power to accept or reject
money bills.
However, the Constitution makes it abundantly clear that money bills should contain only matters listed
under article 110 (1). If a bill is a combination of any of the above and some other provisions not
incidental to those matters, it cannot be called a money bill.

Lack of remedy

The Speaker, while certifying a bill as money bill, is in effect depriving the Rajya Sabha of its legislative
power to disapprove a bill. There is no remedy lying with Rajya Sabha for wrong decision taken by
speaker regarding certification of money bill.

Way Forward

Neither the Constitution nor the House rules lay down any procedure with regard to certifying a money
bill. It is therefore necessary to evolve a proper procedure for the Speaker to arrive at a decision.
A more prudent approach would be the examination of given bill by committee of the secretariesgeneral of both Houses and accordingly, Speaker takes a final decision.

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1.2.2. FUNCTIONING AND CONDUCT OF BUSINESS


1.2.2.1. PARLIAMENTARY PARALYSIS
Recently, the Parliament witnessed near wash-out of whole monsoon session because of persistent
Government-Opposition deadlock.
Impacts of Parliamentary paralysis

Hurried passage of bills without proper debate and discussions or sometimes important bills get struck
causing developmental setback to nation.
MPs cede space to non-parliamentary actors, vitiating the decision-making process and proliferating
subordinate legislation activities.
People lose faith in Parliament and Parliamentary democracy.
Slogan shouting and disruption obstructs free and open debate in the Parliament.
The exercise of Parliamentary accountability is compromised.
Waste of precious time and public exchequer in arrangement of proceedings.

Suspension of MPs
The Speaker has the power, under Rule 374(A) of the general Rules of Procedure and Conduct of Business, to
eject and suspend members who disrupt proceedings. Her decision in this context is final. However, the Speaker
takes the action of suspension as the last resort because it is seen as muzzling of free debate in the Parliament.
Way Forward:

It is imperative to frame objective guidelines along with proper training and education to legislators for
the healthy functioning of Parliamentary proceeding. The periodic publication of members performance
in the Parliament would provide effective feedback and incentive to perform efficiently.
The political class of India needs to realise that many countries look towards India as a successful
example of democracy. The stability of democratic institutions is also linked with foreign investment in
country which India is in dire need.

1.3. CENTRE STATE RELATIONS


1.3.1. FISCAL FEDERALISM
1.3.1.1. SPECIAL CATEGORY DENIED TO ANDHRA PRADESH

The centre denied granting Special Category Status to Andhra Pradesh by announcing in Parliament that
there is no policy anymore for according special category status to any State. Instead, states could be
provided special economic packages.

Special Category states in India:

The concept of special category state was introduced with 5th Finance Commission recommendation to
provide certain disadvantaged states with preferential treatment in the form of central assistance and
tax breaks.

Benefits available for Special Category states vis--vis other states include:

30 per cent of the Normal Central Assistance (NCA) earmarked for Special Category States and the
remaining 70 per cent to General Category States entitled to assistance in the grant-loan ratio of 90:10
as compared with 30:70 ratios for other States.
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Special plan assistance for projects (90 per cent grant) and untied special central assistance (100 per cent
grant) were being given only to Special Category States.
Assistance for externally-aided projects in the grant-loan ratio of 90:10, whereas such assistance to other
States is on back-to-back basis.
Under the Accelerated Irrigation Benefit Programme (AIBP), Special Category States get 90 per cent of
the project cost as grant as compared with 25 per cent grant for others.

Special Category Status: recent approach of government:


Several changes over the years, more particularly those introduced in the Union Budget 2015-16, have resulted
in considerable dilution of benefits to the Special
Category States.
The parameters required for Special Category status

10

Following the increase in tax devolution to


Hilly and difficult terrain
States from 32 to 42 per cent of divisible
Low population density or sizeable share of
pool of central taxes, the Centre has
tribal population
dispensed with normal plan assistance,
Strategic location along borders with
special central assistance and special plan
neighbouring countries
assistance from 2015-16 onwards

Economic and infrastructural backwardness


The share of normal central assistance in
Non-viable nature of state finances.
total plan assistance, which was the
predominant channel of central plan
assistance to States had come down to just 15 per cent with the proliferation of Centrally Sponsored
Schemes (CSS).
The only attraction that remains is the benefit of assistance for externally aided projects (90 per cent
grant). There are very few externally aided projects in the Special Category States.
The Union Budget 2015-16 has drastically reduced the allocations under Accelerated Irrigation Benefit
Programme (AIBP).
The Finance Commission does not distinguish between special and non-special category states in its
allocation.Currently, there are 11 states with Special Category Status Jammu & Kashmir, Uttarakhand,
Himachal Pradesh and all North Eastern states.
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1.4. E-GOVERNANCE MODELS AND APPLICATIONS


1.4.1 INITIATIVES UNDER CCTNS PROJECTS
1.4.1.1. NAMES OF CHARGESHEETED SEX OFFENDERS TO BE MADE PUBLIC UNDER CCTNS
PROJECT

Government is planning to make public online names of all such persons who are sex offenders and others
charge sheeted for crime against women anywhere in the country.
The Crime and Criminals Tracking Network and System (CCTNS) is to be extended for publication of list and
will be visible to parents, employers and concerned people.
List of wanted and most-wanted criminals, publication of a list of proclaimed offenders, information on
human trafficking and missing persons, accessing legal services will also be part of the online initiative
under the CCTNS.

Q. We are witnessing increasing instances of sexual violence against women in the country. Despite existing
legal provisions against it, the number of such instances is on rise. Suggest some innovative measures to tackle
this menace. (Q 8, Paper IV, UPSC 2014)

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2. SOCIAL ISSUES
2.1. POVERTY AND EXCLUSION
2.1.1. MGNREGA
2.1.1.1. MINISTRY OF RURAL DEVELOPMENT (MORD) S NEW REPORT: MGNREGS UPDATES
The important findings of report include:

The programme reduced poverty overall by up to 32 per cent and prevented 14 million people from
falling into poverty.
At an all-India level, the average days worked under the MGNREGS is less than four, pointing to the
relatively small impact of the scheme to the overall rural job market.
Although it fails to add to the number of days that individuals work, it attracted individuals who were
previously employed in less productive work, thereby raising their incomes.
While the period of 2004-05 to 2011-12 saw a sharp rise in rural wages, MGNREGS plays only a modest
role in wage increases.
The MGNREGS may be the first opportunity for many women to earn cash income resulting in
substantial increase in womens control over resources including cash in hand and the likelihood of
having a bank account Children from MGNREGS households were likely to obtain higher levels of
educational attainment and were less likely to be working.
On the economic front, financial inclusion rose in general during this period, reliance of moneylenders
declined and accessing of formal credit grew.
The report finds that work rationing - the inability of all interested households to get 100 days of work
is holding back MGNREGS.
The findings clearly states there is huge unmet demands for MGNREGS work. The reasons cited for
mismatch in demands and supplies are paucity of funds at the level of implementations and erratic fund
flows.The report released by United Nation Development Programme recently had similar findings and
stated the schemes uptake is far greater in the lean season that in the peak agricultural season.

2.2. SC/ST/OBC/MINORITIES
2.2.1. NAI MANZIL SCHEME LAUNCHED

12

The Ministry of Minority Affairs launched a new Central Sector Scheme Nai Manzil.
The aim of the scheme would be employment generation of the youths and also extending loans for
opening enterprises.
The scheme will address educational and livelihood needs of minority communities in general and
Muslims in particular as it lags behind other minority communities in terms of educational attainments
The target group of scheme will be all out of school / dropped out students and those studying in
Madrasas. It is so because they will not be getting formal Class XII and Class X Certificates rendering
them largely unemployed in organised sector.
The scheme is intended to cover people in between 17 to 35 age group from all minority communities as
well as Madrasa students.
The scheme would provide bridge courses to the trainees and get them Certificates for Class XII and X
through distance medium educational system and at the same time also provides them trade basis
skill training in 4 courses Manufacturing, Engineering, Services, Soft skills.
This scheme will provide avenues for continuing higher education and also open up employment
opportunities in the organised sector.
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2.2.2. DRAFT IIM BILL


The Human Resource Development Ministry has come up with a draft IIM bill, which seeks to give the ministry
authority over the institutes on a range of issues. Unlike the Indian Institutes of Technology, IIMs dont function
under an Act of Parliament.
The Bill proposes

Grant of statutory status to the 13 existing IIMs


Declare these IIMs 'institutions of national importance'
Will enable the IIMs to confer degrees, instead of diplomas and fellowships.

Several features of the Draft Bill raised debate over the autonomy

Board of Governors of each IIM will be the principal executive body, grants the Centre powers to
override the Board.
Board can make rules and regulations regarding tenure, remuneration, etc for IIM employees but only
after taking approval from the Centre.
The ministrys approval will be required for matters related to admission criteria, scholarships and
fellowships as well as how to conduct Board meetings.
The decision of the Central Government, whether a question is one of policy or not, shall be final

Argument against the Bill

There is concern at the overarching government control, evident in the use of the word regulation,
which needs to be done away with. Particularly worrying are the clauses in the draft Bill that give powers
currently held by the individual IIM Boards to the government.
The Bill, in its present form, will end the independence of the Board of Governors of the IIMs and it will
convert them to mere rubber stamps. The real decision-making power will be transferred to officials of
the ministry, who have neither the required skill nor the experience to sit in judgment over academic
matters.
It empowers the central government to subsequently make rules for all matters such as appointment
of the chairperson, terms and conditions for the director and administrative issues.

Argument for the Bill

Performance norms for directors have not been set by IIM boards. Under such circumstances, it is not
practical to expect that the boards can enforce accountability. Its important for the dominant
stakeholder and promoter, i.e. the Government of India, to keep a watch. This will require monitoring of
decisions, not just outcomes.
A committee headed by R.C. Bhargava in 2008 made observations on IIM boards, Board agendas are
filled with routine administrative approval requestsonly rarely do boards discuss strategy and prepare
any long-term plans.
The government intervention is needed to fix serious shortcomings in governance in the IIM system e.g.
IIMs have not had fixed tenures for board members, something that is considered as a basic axiom of
good governance. The new Bill limits the terms of board members to a maximum of six years.

Way Forward
There are provisions in the IIM Bill that require discussion for example, provision related to all
regulations made by the IIM boards require the prior approval of the government. But the IIMs can
hardly contest the basic aim of the Bill, i.e. to put in place transparent processes and clear norms for
accountability in the system.
13

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Q. Should premier institutes like IITs/IIMs be allowed to retain premier status, allowed more academic
independence in designing courses and also on decide mode/criteria of selection of students. Discuss in light of
the growing challenges. (Q 13, Paper II, UPSC 2014)

2.3. OTHER
2.3.1. NATIONAL HANDLOOM DAY CELEBRATED

1st National Handlooms Day was celebrated on August 7.


Itstressed on creating new designs, branding and e-commerce to launch the rich, colourful heritage on a
global scale.
Handlooms constituted 15 per cent of the total cloth consumption in the country. There is a need to
make handlooms fashionable by constantly evolving and innovating, and at the same time ensuring
quality.
The fashion and design education in the country needs to reorient itself with the traditional handloom.
India Handloom Mark was launched to win the trust and confidence of customers.

Few Facts:

14

Power looms dominate Indias textile production with 60% of output followed by Handlooms
The Handloom industry is the second-largest employment provider for the rural population in India
after agriculture.
The US is major importer of Indian handloom products followed by the UK and Germany.
Khadi is governed by the Khadi and Village Industries Commission (KVIC).

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3. INTERNAL SECURITY / LAW & ORDER


3.1. SECURITY CHALLENGES AND THEIR MANAGEMENT IN BORDER
AREAS
3.1.1. NORTH EAST INSURGENCY
3.1.1.1. NAGA PEACE ACCORD
Government of India recently signed the historic peace accord with National Socialist Council of Nagalim (IsakMuivah), a key outfit in the region demanding a unified Naga identity and a separate Nagalim State for over six
decades. Under the accord, there is ceasefire agreement till April 27, 2016.
Historical Background
Naga problem is the legacy of British rule which, by design, kept the Nagas isolated and insulated from the rest
of the nation.
Earlier, NSCN (I-M) fought for an independent Nagaland, but later on demanded a Greater Nagaland by slicing
off parts of Assam, Manipur and Arunachal Pradesh to unite 1.2 million Nagas. However, it was opposed by the
three states concerned.
Timeline

Naga Movement gained momentum in the late 1940s with the coming of Phizo as the leader
Nagaland was given full statehood in 1963 as the 16th State of Indian Union, before which it was a
district of Assam.
The National Socialist Council of Nagaland was formed in 1980 to establish a Greater Nagaland,
encompassing parts of Manipur, Nagaland, the north Cachar hills (Assam).
The NSCN split in 1988 to form two groups namely NSCN(IM) & NSCN(K).
Nagaland recorded more than 87% voter turnout in 2014 Indian general election which was highest
voters turnout in India which Indian authorities consider as faith of Naga people in democracy of India.
Shillong Accord was signed in 1975 to accept supremacy of Constitution of India, surrender arms and
renounce demand for the secession. It was not accepted by some leaders of the Naga movement and led
to formation of NSCN.

The present agreement was with NSCN (IM) and was the culmination of over 80 rounds of negotiations spanning
16 years, with the first breakthrough coming in 1997 when a ceasefire agreement was sealed.
Demand of NAGA's
A Nagalim comprising all contiguous Naga-inhabited areas, along with Nagaland. But nearby 3 states namely
Arunachal Pradesh, Manipur and Assam opposing the demand as their territory is included in Nagalim.
Analysis of Accord
Many smaller groups have not been part of the decisive phases of the peace process. The other factions Khole
Kitovi (KK), Reformations (R), Khaplang are not included under the accord.

15

The details of agreement has not been made public yet and there is no clarity on controversial
sovereignty demand that was central to the I-M groups negotiations strategy, or on the demand for
the creation of a Nagalim or Greater Nagaland that is tied to claims on the territories of the
neighbouring States of Manipur, Assam and Arunachal Pradesh.

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The major challenges lying ahead for the government are:

To recognise the Naga sense of identity without acceding to claims on the territories of other States.
To allow the people of Nagaland greater autonomy without allowing concessions on the sovereignty of
India.

Way Forward:

The success of agreement lies with the


ability of NSCN (IM) to bring on board all
sections of the Naga people, especially
the rival armed groups, towards an
inclusive peace settlement. Historically
such accords had also cause
factionalism in body-politic. For
instance, the Shillong Accord led to
creation of factions of erstwhile NSCN by
Isak Chishi Swu, Th. Muivah and S.S. Khaplang.
Under such circumstances, New Delhi will have to take joint responsibility, along with the NSCN, to take
the agreement to the other armed Naga groups.

How far are Indias internal security challenges linked with border management, particularly in view of the
long porous borders with most countries of South Asia and Myanmar? [Mains 2013]

3.2. ROLE OF EXTERNAL STATE AND NON-STATE ACTORS IN CREATING


CHALLENGES TO INTERNAL SECURITY
3.2.1. UAPA AMENDMENT TO BRING INDIVIDUALS UNDER TERROR BAN LIST

The government is all set to amend the Unlawful Activities (Prevention) Act (UAPA) to bring in a clause
that would pave the way to designate individuals along with terror organisations under the banned
list of entities.
Under Section 35 of the UAPA, there are 38 groups in the list of banned terrorist organisations.
The amendment would cover the case of an individual not being associated with any terrorist
organisation but committing an offence outside India.

3.2.2. NIA RECOMMENDATIONS FOR YOUTH SAVED FROM TERROR PATH


Background:
Till now, 17 Indians are learnt to have joined ISIS.
Nearly 20 have been stopped from joining the IS.
Areeb Majeed from Maharashtra, the only IS
recruit who managed to return.
Recommendations

16

Invoke lighter sections of the law against them.


Potential young terror recruits should be identified
and bind-down orders issued against them.
A local constable can be of immense help in such
cases where any youth is showing signs of
radicalisation.
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Community policing.

Reason behind these recommendations

Not to deter parents and other family members from coming forward to report such cases.
Booking them under lighter sections can act as a deterrent and will create the fear of the law in their
minds.

Q. The diverse nature of India as a multi-religious and multi-ethnic society is not immune to the impact of
radicalism which has been in her neighborhood. Discuss along with the strategies to be adopted to counter
this environment. (Mains 2014)

3.4. LINKAGES BETWEEN DEVELOPMENT AND SPREAD OF EXTREMISM


3.4.1. CENTRE ADOPTING A FIVE-PRONGED STRATEGY TO CONTAIN LEFT WING
EXTREMISM
Features:

17

Containing the presence of Naxalists would not be by using force (armed forces) alone but by taking up
development programmes in the naxal-affected areas and creating awareness among the communities
there against taking to the path of violence being adopted by the LWE groups.
The Centre is planning to develop the LWE-affected areas in the fields of education, health,
communication and others.
The Centre would utilise modern technologies such as drones and unmanned aerial vehicles (UAVs) as
part of its strategy to contain the LWE.
As part of combating the LWE groups effectively, the Centre was procuring six modern helicopters for
the use of armed forces engaged in the task.
About 400 fortified police stations were already constructed in such areas and there were plans to set up
2,100 BSNL towers to provide mobile phone network.

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4. SCIENCE & TECHNOLOGY


4.1. INDIGENIZATION
TECHNOLOGY

OF

TECHNOLOGY

AND

DEVELOPING

NEW

4.1.1. ISRO'S TITANIUM SPONGE PLANT IN KERALA FULLY COMMISSIONED

The indigenous Titanium Sponge Plant at Chavara in Kerala has been fully commissioned and has started
commercial production required for space applications.
The national Space programme can now fully bank on made-in-India titanium sponge that goes into
making its satellite and launch vehicle parts.
This is the only integrated plant in the world that undertakes all activities right from mining of Ti
minerals to manufacturing of aerospace grade Ti sponge under one roof.

Significance

Now, India has become the seventh country in the world producing Titanium sponge commercially.
Big saving of forex reserve as earlier India used to import titanium.
India is endowed with the third largest reserve of Titanium bearing minerals.
Annual requirement: 200-300 metric tonnes.

Why Titanium is required in Aerospace and Defence equipments: high strength and non-corrosive quality.

4.1.2. GSLV D6 SUCCESSFULLY LAUNCHED

The GSLV D-6 is the second


successful
consecutive
launch
(earlier launch GSLV D-5 in January)
of the GSLV series with indigenous
cryogenic upper stage.
ISRO is planning to test GSLV Mk III
capable of carrying payload up to
four tonne by the end of next year.

Difference between Cryogenic stage and


other stages

The cryogenic stage is technically a


very complex system, as compared
to solid liquid propellant stages, due
to its use of propellants at extremely
low temperature (cryo) and the
associated thermal and structural
challenges. A cryogenic rocket stage
is more efficient and provides more
thrust for every kilogram of
propellant it burns.

Significance

18

2 consecutive successful launches


proved the capability of ISRO and
enhanced its confidence.
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GSLV will cost just one third of money spent on foreign agencies, which will reduce satellite launch cost
as well as will save forex.
It will enhance Indias capability to be a competitive player in the multimillion dollar commercial launch
market. It will help in earning foreign exchange.
The GSLV will help ISRO put heavier communication satellites of GSAT class into orbit.
Reduction of dependence on foreign agencies gives strategic boost in this high tech sector

Q. Significance of the SPOT-6 rocket launch for ISRO. [mains 2012]

4.2. AWARENESS IN THE FIELDS OF IT, SPACE, COMPUTERS, ROBOTICS,


NANO-TECHNOLOGY, BIO-TECHNOLOGY
4.2.1. GSAT-6 (GEOSYNCHRONOUS SATELLITE)

It is aimed at primarily benefiting the country's strategic users and other specific authorised users.
It has life of nine years and 2 tonne launch mass.
It will provide S-band communication services in the country.
It includes a first-of-its-kind S-Band antenna with a diameter of six meter. This is the largest antenna
ISRO has ever made for a satellite.
It will offer a Satellite Digital Multimedia Broadcasting (S-band) service, via mobile phones and mobile
video/audio receivers for vehicles.
It can also be utilized for strategic and social applications.

4.2.2. MULTI-APPLICATION SOLAR TELESCOPE (MAST) OPERATIONALISED AT


UDAIPUR SOLAR OBSERVATORY (USO)
Purpose and significance

Detailed study of the Solar activity including its magnetic field. This study of solar activities would
facilitate space weather predictions in the future.
Capable of capturing three-dimensional aspects of the solar magnetic fields further enabling the
scientists to get a better understanding of the solar flares and eruptions taking place in such twisted
magnetic fields.
USO is a part of Physical Research Laboratory (PRL), which is an autonomous unit of the Department of
Space.
The observatory is situated on an island in the middle of Fatehsagar lake.

Why observatory is made in the middle of lake

Large water body surrounding the telescopes decreases the amount of heating of the surface layers.
This decreases the turbulence in the air mass and thereby improves the image quality and seeing.

Features of MAST

19

50 cm aperture
Off-axis Gregorian-Coude telescope

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Other Telescopes in India


Name/Observatory
National Large Solar Telescope
ARIES Observatory
Solar Tunnel Telescope, Kodaikanal Solar Observatory

Aperture
200 cm
15 cm
61 cm (24 in)

Year
proposed
1961
1958

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Location
Merak Village, Ladakh,
Nainital,
Kodaikanal,

4.2.3. EBOLA VACCINE DEVELOPED

Developed by Public Health Agency of Canada


Trial result show 100% efficacy.
How it works: A dummy virus (vesicular stomatitis virus, or VSV) was designed with diluted elements of
Ebola. As the risk-free virus enters a human body, it alarms the immune system, which launches a
scathing attack on the intruder, killing it along with the deadly Ebola virus.

Ebola Disease

The Ebola virus causes viral hemorrhagic fever.


Symptoms: Early symptoms include sudden onset of fever, weakness, muscle pain, headaches and a sore
throat.
The early symptoms progress to vomiting, diarrhea, impaired kidney and liver function and sometimes
internal and external bleeding.
It kills between 25 and 90 percent of those infected, with an average of about 50 percent.

How does Ebola virus spread?

Humans contract Ebola through contact with the bodily fluids of infected animals or the bodily fluids of
infected humans.

Region affected: Sub-Saharan Africa (Guinea, Sierra Leone, and Liberia)

4.2.4. DISHA (DIGITAL SAKSHARTA ABHIYAN)

Central Government launched a programme to invest Rs 450-500 crore on providing basic computer
education to about 50 lakh people over the next three years with the help of private companies.
The investment will be made in certain identified districts. One person would be chosen from every
eligible household for training.
The programme offers two-hour, 10-hour and 20-hour courses in local languages.
The scheme targets to train approximately 52.5 lakh persons that include Anganwadi and ASHA workers
and authorized ration dealers in all the States/UTs across the country.
Government would deliver various services such as e-education, e-health and e-governance through a
national broadband network which is expected to be in place by 2017.

Disha Mobile App

The app, Disha, is expected to help people learn about computers and Internet through self-learning
modules.
In order to offer digital literacy to tribal and Dalit women in Bihar, govt. awarded tablet computers to
women who received training from common service centres in the state.

DISHA handbook

20

It is composed in such a manner that anyone with little or no digital literacy can also learn using this
book by means of pictographic lessons on computers operations.
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4.3. SCIENCE AND TECHNOLOGY- DEVELOPMENTS


APPLICATIONS AND EFFECTS IN EVERYDAY LIFE

AND

THEIR

4.3.1. CLOUD SEEDING


Why in News: The Karnataka State government has decided to take up cloud seeding to overcome the crisis in
the agricultural sector owing to deficient rainfall this year.

Cloud seeding, a form of weather


modification, is an attempt to change
the amount or type of precipitation
that falls from clouds, by dispersing
substances into the air that serve as
cloud condensation or ice nuclei.
Chemicals used:
Silver iodide,
potassium iodide and dry ice (solid
carbon dioxide). Liquid propane

Uses:

To increase rainfall in a particular


area.
To prevent hail and fog
[Mains 2014] Drought has been recognized as a disaster in view of its party expense, temporal
duration, slow onset and lasting effect on various vulnerable sections. With a focus on the
September 2010 guidelines from the National disaster management authority, discuss the
mechanism for preparedness to deal with the El Nino and La Nina fallouts in India.
[Mains 2012] Examine the causes and the extent of desertification in India and suggest remedial
measures.

4.3.2. SMART VAULT: A FULLY AUTOMATED LOCKER


ICICI Bank launched the first of its kind fully automated digital locker named Smart vault.
Features

24 x 7 access to customers with high end security.


It is protected by multi-layer security system which includes biometric, PIN authentication and debit
cards among others.
Customers can access it without any intervention by the branch staff.
It brings a very different, much more convenient, state of art branch experience to the customers.

4.3.3. SILAGE
What it is: Silage, a green fodder compacted in air tight conditions to be used as substitute for green fodder
during the lean period for livestock
Uses

21

Potential fodder for livestock living in the rain shadow areas


Can be used as alternative during dry period
Potential to increase the milk yield
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Why in News: Tamilnadu government has embarked upon a programme to popularise silage making. Scientists
of Tamil Nadu Veterinary University Training and Research Centre at Karur demonstrated the silage making by
using repol polypropylene (silage bags)
Method of Silage Preparation

Green grass mass is stored in large sacks made from polythene


Once the bag is filled, the material is pressed to remove the air and thereby preventing decomposition.
After that it is fermented by adding diluted molasses and preserved for 60 days at appropriate moisture
levels.

4.3.4. AERIAL SEEDING


What it is: Aerial seeding is a technique of sowing seeds using helicopters and aeroplanes to scatter them.
Why in News: Andhra Pradesh govt. launched aerial seeding of nearly 1,500 hectares of degraded forest on hill
slopes in Guntur and Krishna districts that are not suitable for traditional methods of sowing.
success of Aerial Seeding: The Gandhi Hill in AP did not have any greenery a few decades ago, but today the
entire hill is covered by trees because of aerial seeding followed up by protection.
Significance

Large wildfires can destroy large areas of plant life resulting in erosion hazards. Arial seeding may quickly
and effectively reduce erosion hazards and suppress growth of invasive plant species.
Can be used where terrain is extremely rocky or at high elevations or otherwise inaccessible
Efficient coverage of a large area in the least amount of time

4.4. AWARENESS IN THE FIELDS OF SPACE


4.4.1. UN KALAM GLOBAL SAT
A global satellite for earth observation and disaster risk reduction GlobalSat for DRR proposed under the
UN framework is to be dedicated to A.P.J. Abdul Kalam by naming it as UN Kalam Global Sat.
Why renaming

The renaming will inspire the next generation of scientists, engineers and space explorers to foster
innovation and entrepreneurship and pooling of resources to find low-cost solutions to major problems
facing mankind.
Mr. Kalam had envisaged space faring nations joining hands to find solutions to mankinds major
problems such as natural disasters, energy and water scarcity, health-care education issues and weather
prediction.

UN Kalam Global Sat

22

Launched on third UN World Conference on Disaster Risk Reduction held at Sendai in Japan in March
2015.
The GlobalSat was proposed in response to the need for a globally interconnected disaster and
environmental management system since no single country can afford to develop a complete set of
sensors and satellite systems needed for forecasting, monitoring and mitigating disasters like floods,
drought, typhoons, earthquakes, wild fires, windstorms, or tidal events.
It will provide a common platform that will allow sharing of space and data segments, with an ability to
serve individual nations disaster management and development needs.

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4.5. INDIGENIZATION
TECHNOLOGY

OF

TECHNOLOGY

AND

DEVELOPING

NEW

4.5.1. SEMI-CRYOGENIC LAUNCH VEHICLE

23

ISRO signed MoU with Russian space agency to boost its plan for Semi-cryogenic launch vehicle.
ISRO's third rocket development programme
Cost: Rs. 1,800-crore
Fuel: space-grade kerosene and liquid oxygen
Capacity: six to ten tonnes to heights of 36,000 km.
Currently only the U.S. and Russia have this technology
Future: According to ISRO it will be ready with the engine [SCE-200] in six to eight months.
This would be double the lifting power of the GSLV and triple that of the PSLV.

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5. ENVIRONMENT
5.1.CONSERVATION, ENVIRONMENTAL POLLUTION AND DEGRADATION
5.1.1. INCREASING NUMBER OF MIGRATORY BIRDS INCORINGA SANCTUARY

Between September and March, about 89,000 birds were there in this sanctuary including the native
species and winged visitors.
Visitors (Birds) are coming from the Arctic region, Russia, China and Mongolia.

Reason:

Dwindling of mud ponds in the Pulicat


Low levels of water at the Point Calimere

Coringa Sanctuary

Second largest stretch of mangrove forests in India after Sundarbans of West Bengal.
Home for 24 mangrove tree species
There are 266 bird species in the Coringa mangrove, including 94 species of migratory birds.

5.1.2. ATHIRAPPILLY HYDROELECTRIC PROJECT

Athirappilly hydroelectric project, proposed across the Chalakudy river, has received the go-ahead from
the Expert Appraisal Committee (EAC) for River Valley and Hydroelectric Projects.
Capacity: 163MW
The project was proposed by the Kerala State Electricity Board (KSEB) a decade ago.

Reasons of Delay

Agitations by various environmental groups


Series of litigations against the project
Western Ghats Ecology Expert Panel rejected it

Issues considered by EAC and its observations

Loss of forestland
Displacement of tribes - EAC felt that there were no tribal families in the submergence area of the
Athirappilly reservoir
Endemic species -EAC observed that no endemic species specifically of project area
The damage due to submergence of flora and fauna of the area was mitigable.

5.1.3. ESZ AROUND OKHLA BIRD SANCTUARY NOTIFIED

24

The Ecologically Sensitive Zone in the Okhla Bird Sanctuary will be the area up to 100 metres from the
eastern, western and southern boundary and up to 1.27 km from the northern boundary of the Okhla
Bird Sanctuary.
Notification was issued after the National Board of Wild Life (NBWL) cleared the process of demarcating
the ESZ.

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Impact
A big relief to thousands of home buyers in Noida and its vicinity as their apartments will now fall out of the new
notified area.
Features of Okhla sanctuary

Number of bird species 300 bird species, especially water birds.


Situated at the Okhla barrage over Yamuna River.
Area: About 4 sq km

Species

Two critically endangered (CR) species: white-rumped vulture and Indian vulture
Nine vulnerable (VU) species: Baikal teal, Baers pochard, sarus crane, sociable lapwing, Indian skimmer,
Pallass fish eagle, lesser adjutant, bristled grassbird and Finns weaver
Seven near threatened (NT) species: ferruginous pochard, black-bellied tern, grey-headed fish eagle,
erratically east to West Bengal and south to Kerala and Sri Lanka.

Concerns

Once a thriving habitat for flamingos and sarus and pochards, the Okhla Bird Sanctuary today is devoid
of most of its winged visitors.
Commercial complexes, DND expressway, flyovers and even the Ambedkar Park, have destroyed the
feeding grounds around the bird sanctuary.

5.1.4. MAJORITY OF ECOLOGICALLY SENSITIVE ZONES STILL NOT NOTIFIED

Total number of national parks and wildlife sanctuaries are 526


ESZ has been notified only around 26 of them yet.

ESZ and its significance

According to the national wildlife policy,


each of these wildlife zones was to have a
protective zone (ESZ) around it, where
polluting and detrimental activities would
be restricted.
The ESZ is based on the principles of
providing sanctity to protected areas and
strengthening the buffer zones and
corridors around such areas.
All forms of infrastructure projects of
commercial or public purpose, including
mining, industries and hydro-power
projects, are prohibited within such
zones.

Supreme Court order on ESZ

25

All states and Union Territories were


required to send proposals detailing the
site-specific geographical extent of ESZs
around environmentally protected areas
falling within their boundaries.
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Unless site-specific ESZs are declared a 10-km area around each of these wildlife zones is treated as an
ESZ.

Reasons

Several states such as Himachal Pradesh, Rajasthan and Goa have consistently raised concerns about
creating ESZs.
Many states not sending proposals on time.
According to officials procedural complexities were primarily to be blamed for the delays.

[Mains 2013] What are the consequences of illegal mining? Discuss the ministry of environment and forests
concept of GO AND NO GO zones for coal mining.
[Mains 2012] The issue of tourism in core areas of tiger reserve forests in the country is a subject matter of
debate. Critically examine various aspects of this issue, keeping in view relevant recent judicial
pronouncements.

5.1.5. CLIMATE CHANGE: OBAMA UNVEILS CLEAN POWER PLAN HAILED AS US'S
STRONGEST EVER CLIMATE ACTION
Aim: The Clean Power Plan sets standards to reduce CO2 emissions by 32% from 2005 levels by 2030.
How?
It sets carbon pollution
reduction goals for power
plants and requires states to
implement plans to meet
goals. States have until
September 2016 to submit
plans, but must comply by
2022.
The Administration believes
the plan will boost a major
climate summit in Paris in
December and encourage
other countries to submit
their own plans.

5.1.6. USE OF FIREWOOD FOR COOKING IN RURAL AREAS


Statistics according to NSSO report

Percentage of rural households using firewood: 67% (2/3)


Percentage of urban households using firewood: 14%

Key observations in the report

26

The use of firewood for cooking has declined only very slowly over the years in rural India. (from 78.2%
in 1993-94 to 67.3% in 2011-12)
LPG use in rural households has grown relatively fast (from fewer than 2% to 15% in 2011-12)
87% of Scheduled Tribe households and 70 per cent of Scheduled Caste households in rural India use
firewood
Tamil Nadu had the highest use of LPG among rural households, with over a third using it for cooking,
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followed by Kerala and Punjab.


25% of rural households still rely on kerosene for lightening.
Over the past decade, the proportion of households using kerosene to light their houses has, however,
halved in rural India.

5.1.7. E-PAYMENT MODULE TO DEPOSIT COMPENSATORY LEVIES INTO CAMPA


FUNDS

The Government launched an e-payment module, with an objective to make the payment of
compensatory levies receivable in case of diversion of forest land.
No payments will be accepted other than through this portal, unless specifically ordered by CAMPA
(Compensatory Afforestation Fund Management and Planning Authority).

Significance

It will simplify administrative procedures, without compromising on environmental safeguards.


It will end delays in the deposit of compensatory levies.
It will enhance transparency in the process.

CAMPA

Compensatory Afforestation Fund Management and Planning Authority (CAMPA) are meant to promote
afforestation and regeneration activities as a way of compensating for forest land diverted to non-forest
uses.
National CAMPA Advisory Council has been established as per orders of The Honble Supreme Court with
the following mandate:
o Lay down broad guidelines for State CAMPA.
o Facilitate scientific, technological and other assistance that may be required by State CAMPA.
o Make recommendations to State CAMPA based on a review of their plans and programmes.
o Provide a mechanism to State CAMPA to resolve issues of an inter-state or Centre-State
character.

STATE CAMPA

The Honble Supreme Court approved the guidelines prepared by the MoEF for utilizing CAMPA funds by
an agency to be constituted in the states and to be known as The State CAMPA.
It administer amount received from the CAMPA and utilize the funds collected for
o Undertaking compensatory afforestation
o Assisted natural regeneration
o Conservation and protection of forests
o Infrastructure development
o Wildlife conservation and protection

5.2. ENVIRONMENTAL CONSERVATION


5.2.1. THANE CREEK DECLARED AS FLAMINGO SANCTUARY BY MAHARASHTRA
GOVERNMENT
Name: Thane Creek Flamingo Sanctuary

27

The Maharashtra government has declared the area along Thane Creek as Flamingo Sanctuary under
Sec. 18 of the Wildlife Protection Act, 1972.
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It will be Maharashtra's second Marine sanctuary, after Malvan.


By November, over 30,000 of these beautiful birds, come to this sanctuary. They stay here till May, after
which most of them migrate to the Bhuj area of Gujarat for breeding.
Almost 90% are Lesser Flamingos and the remaining are Greater Flamingos.
Other Bird species: About 200 including Globally Threatened Species like the Greater Spotted Eagle.

Significance

It is a very significant step for the conservation of this unique natural environment with its eclectic mix of
mangroves, mudflats and threatened species of birds.
Now the ecosystem will be closely monitored and shielded from serious threats like discharge of
effluents, dumping of sewage and other biotic interferences.
At the same time, the scientific community, wildlife enthusiasts and the general public could enjoy
access to this natural wonder in a regulated manner.

5.2.2. CHENGALIKODAN BANANA


Why in news: Chengalikodan has been accorded the Geographical Indication (GI)
status.
It is known for its unique size, shape, colour and taste.
Other Products which have GI status

Palakkadan matta rice, Vazhakkulam pineapple, Pokkali rice, Wayanadan


scented rice varieties Gandhakasala and Jeerakasala and Central
Travancore jiggery.
Nearly 200 unique goods have been registered as GIs in India.

Significance of GI registration

GI registration confers legal protection to the products


It Prevents unauthorised use of a GI by others
It helps consumers get quality products of desired traits
It promotes economic prosperity of producers of goods by enhancing demand in national and
international markets
It is essential to get protection in other countries.

5.2.3. ONLY FOUR SEGMENTS ELIGIBLE FOR SOLAR ROOF TOP SUBSIDY

Union Ministry of New and Renewable Energy (MNRE) has indicated that its subsidy or central financial
assistance (CFA) for solar rooftop projects will be provided only to projects under four categories.
Domestic content requirement (for modules made in India) will be applicable to only those installations
where the subsidy is provided.
Private, commercial and industrial buildings rooftops will not be covered under the subsidy unless the
solar system is owned by a government organization.
Other provisions for small solar power plant: Custom duty concessions, 10 years tax holiday, provision
for loans and also loans upto Rs.10 lakh for individual loans under priority sector lending.

Four categories

28

Residential

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Institutional (schools, educational institutions, medical colleges and hospitals and R & D institutions
both public and private)
3. Government (both central and state government organizations as also all Panchayati Raj buildings)
Social sectors (old age homes, orphanages, common service centres and welfare homes, etc)

Subsidy: 15% of the benchmark cost


[Mains 2012] Given the accelerated pace of development and demand for energy, would you consider
renewable energy as a viable option for Indias future?

5.2.4. KIKIKI HUNA


Why in news: Recently it has been found in Tamil Nadu, India.
Features

29

Smallest insect in the world, dimension: 0.16 mm


A multicellular organism that is smaller than single-celled organisms.
Like all fairyflies, Kikiki huna lays its eggs in the eggs of other insects.
The entire life stage is passed in the single egg, from which it emerges as an adult.
It was first discovered in Trinidad around 20 years ago and later in Hawaii.
Other countries where it has been found: Australia and Argentina.

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6. ECONOMY
6.1. LIBERALIZATION IMPACT ON ECONOMY
6.1.1. SOLAR DISPUTE AT WTO

Why in news: A World Trade Organization (WTO) panel has ruled against India in a dispute raised by the
US over the countrys solar power programme, requiring the government to offer a level playing field to
both foreign and domestic manufacturers of solar panels. The panel also struck down the Indian
governments incentive policies, especially subsidies provided for domestic solar companies for
manufacturing solar cells and solar modules

Reasons

Indian governments imposition of local content requirements for solar cells and solar modules- It has
offered financial support of up to Rs.1 crore per megawatt (MW) to the implementing agency for setting
up large solar capacities by placing orders with domestic manufacturers.
WTO members are not supposed to insist on national content requirements that discriminate against
foreign products. Under national treatment, imports must be treated on a par with domestically
manufactured products.

Impacts

Make in India programme, aimed at attracting foreign investment and turning India into a manufacturing
hub and green energy target to install 100 gigawatts may be affected
No major impact as Only a small portion of the orders are to be channeled through the subsidy route

6.2. TAX EVASION


6.2.1. SEBI TO BRING MANAGERS IN TAX HAVENS UNDER ITS AMBIT

Seeking to root out undeclared wealth, India's market regulator, the Securities and Exchange Board of
India (SEBI), is trying to bring some large wealth managers operating out of low-tax centres like Hong
Kong and Singapore under its ambit.
Under Indian rules, a resident Indian can remit up to $250,000 per year outside the country. Once the
money is moved abroad, authorities lose oversight of the funds.
SEBI has asked international private banks to register their offshore units with it if they are soliciting
business in India.

Reasons

The Government of India is cracking down on tax evasion and black money as a means of boosting
revenues. It is prosecuting several individuals on suspicion of having undeclared assets outside the
country. An estimated $344 billion has been illegally removed from the Indian economy between 2002
and 2011.
Some boutique private banks in such centres have been trying to tap wealthy Indians and manage their
foreign assets without having operations in the country and without informing local regulators.

Impacts

30

By registering with SEBI, some private banks would have to admit that they are managing funds of
wealthy Indian clients outside the country. That in turn could prompt further requests from SEBI to share
information about Indian individuals.
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Apart from affecting wealthy individuals, SEBI's moves could make private bankers think twice about
building their business in India, even though Indian private wealth is expected to show double-digit
growth.

6.2.2. FATCA

Government has notified rules to comply with the information reporting requirements of the US Foreign
Account Tax Compliance Act, or FATCA.
India and US signed an agreement to share financial information about their residents Financial
institutions, including banks, deposit taking non-banking finance companies, mutual funds, private
equity funds, custodians and life insurance companies, who will have to maintain information about
their customers, including name, address, tax identification number etc. They will also have to disclose
information about the bank account balance.
Disclosure requirements are subject to certain thresholds. For instance, accounts opened before 30 June
2014 with a balance of less than $50,000 do not have to be disclosed by individuals. This limit is
$250,000 in case of entities. institutions such as regional rural banks and cooperative banks that deal
with low-value transactions are not covered.
This is a significant milestone achieved as under the reciprocity clause of these agreements, the
government shall receive information about the Indian tax residents parking money abroad. Such
information, together with provisions of the newly introduced Black Money Act, will help to curb tax
evasions

Challenges

Indian financial institutions will need to train front-end staff, third-party distributors and build a balance
between effective implementation and handling customer sensitivities.
State-run banks, given their large customer base, it would be difficult to comply changes
Banks will also have to invest more money in upgrading their technology to maintain such data in an
electronic format.

6.3. INDUSTRY
6.3.1. E-COMMERCE SECTOR
6.3.1.1. INDIA TO LIFT CEILING ON E-COMMERCE EXPORTS

31

Commerce ministry for the first time provided export incentives to e-commerce exports up to Rs. 25,000
through courier services for items such as handloom products, books, leather footwear, toys and
customized fashion garments from six ports on a pilot basis.
At present, the revenue department is developing the EDI (electronic data interchange) software on a
public private partnership mode with the Express Industry Council of India. Once the software is ready,
the e-commerce incentive scheme will be rolled out throughout the country and without any limit on the
value.
Presently, the value of such items shipped through couriers are not captured under regular export data
and often categorized as samples because if they have to follow the normal export route, they have to
file shipping bill and checks by custom officials, which is a cumbersome process for small exporters with
small values. The software will do away with the problem.
At present, the government allows 100% FDI in wholesale e-commerce trading but none in retail ecommerce. The government is reluctant to allow FDI in retail e-commerce, fearing it will lead to the
backdoor entry of foreign offline supermarket chains.

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Once reluctant to negotiate the issue at multilateral forums since its domestic e-commerce policy is not
clear on the matter, India has started sending signals that it is ready to make e-commerce part of trade
agreements.
In the inter-session meeting of trade ministers belonging to the 16-member regional comprehensive
economic partnership at Kuala Lumpur, India agreed to the formation of a working group on ecommerce, after initial strong resistance to the move by Japan.
Similarly, reversing its stand against engagement in e-commerce at the BRICS grouping (comprising
Brazil, Russia, India, China and South Africa), India agreed to the Framework for BRICS E-commerce
Cooperation at a summit in Ufa, Russia.

6.4. PUBLIC SECTOR BANKS REFORMS


6.4.1. INDRADHANUSH PLAN
Background

The Public Sector Banks (PSBs) play a vital role in Indias economy. In the past few years, because of a
variety of legacy issues including the delay caused in various approvals as well as land acquisition etc.,
and also because of low global and domestic demand, many large projects have stalled.
Public Sector Banks which have got predominant share of infrastructure financing have been sorely
affected. It has resulted in lower profitability for PSBs, mainly due to provisioning for the restructured
projects as well as for gross NPAs. To revive the deteriorating state of PSBs government launched
Indradhanush Plan recently.

What is Indradhanush Plan

32

It is a seven pronged plan launched by Government to revamp functioning of public sector banks.
The seven elements include appointments,
board of bureau, capitalization, de-stressing,
and
empowerment,
framework
of
accountability and governance reforms
(ABCDEFG).
Banks board of bureau will replace existing
appointments board. Its members would be
appointed in the next six months to be headed
by the RBI governor.
Banks board bureau would also hold bad assets
of public sector banks
The bureau will comprise a chairman and six
members, of which three will be from the
government. The remaining three will be
professionals from banking and other sectors.
The bureau will help in the eventual transition
to a bank holding company.
It is an attempt to separate the functioning of
the banks from the government by creating
another entity in the middle to act as a link
between the two.
The government has also finalized a new way
of monitoring state-run banks. They will be
given marks based on quantitative parameters
like NPA management, return on capital,
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growth and diversification of business and financial inclusion, and qualitative parameters like human
resources initiatives and strategic steps taken to improve asset quality.
Challenges

Indradhanush framework talks about the government putting in Rs 70,000 crore into these banks over
the next four years but The PJ Nayak committee report released in May 2014 estimated that between
January 2014 and March 2018 "public sector banks would need Rs. 5.87 lakh crores of tier-I capital. So,
the government is not investing as much as the public sector banks really need to get out of the current
situation that they are in.
Non-reference to disinvestment.
Lack of a concrete plan to tackle NPAs.
Many measures that the government has listed out as a part of the Indradhanush framework have
already been around for a while now, having been put in place by the Reserve Bank of India
Implementation method of the issue of govt: interference as mentioned in the policy,
The Nayak Committee had proposed a BBB comprising entirely of senior bankers. Under Indradhanush,
the government will be represented on the BBB.
Experts believe that the real reform is for the government to vest the ownership of all the banks in a
single holding company, whose board comprises professionals of integrity. It can select PSB boards and
oversee their working.

6.5. CAPITAL MARKET


6.5.1. EASING NORMS FOR INFRASTRUCTURE INVESTMENT TRUSTS

33

The Securities and Exchange Board of India (Sebi) has proposed to ease norms for infrastructure
investment trusts (InvITs) as a way to encourage firms to unlock capital.
In September 2014, SEBI had allowed firms to launch real estate investment trusts (REITs) and InvITs to
help cash-strapped developers get easier access to funds while creating a new investment avenue for
institutions and wealthy individuals.
A domestic InvIT can raise long-term funds from unit holders, helping developers unlock value in their
operational or completed projects or repay debt associated with those projects. Infrastructure firms can
transfer a portfolio of their operational projects to such a trust and launch it in the market.
However, infrastructure companies have been slow to respond as they sought a relaxation in rules and
clarity on taxation.
Under the new rules, the minimum commitment amount by sponsors in InvITs has been reduced from
25% to 10%. In other words, the company that promotes a trust can hold as little as 10% of the units
issued by the trust.
Additionally, Sebi proposed to allow an InvIT to invest in SPVs that act as holding companies for other
SPVs.

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7. INTERNATIONAL / INDIA AND WORLD


7.1. INDIA US
India and the US have decided to sign a pact on exchange of information on terrorists on a Real Time Basis
during the counter-terrorism and homeland security dialogue scheduled to be held in December this year. The
Homeland Security Presidential Directive (HSPD -6) is a model text agreement proposed by the U.S. for exchange
of terrorist screening information between the Terrorist Screening Centre (TSC) of the U.S. and an Indian agency.
Significance:
It is to enhance homeland security cooperation and discuss building capacity in cyber security and critical
infrastructure protection, countering illicit finance, global supply chain security, megacity policing, and science
and technology. With this agreement in place, India could get access to a U.S. database of 11,000 terror suspects
on a real time basis. India has also asked for access to Internet-related data from U.S.-based service providers
like Google, Yahoo, and Bing, among others.
Criticism:
Some Indian security agencies have expressed concern over giving unhindered access to the U.S. on such
sensitive database.
Note: The US has already finalised such agreements with 30 countries. Terrorist Screening Centre (TSC) is a
multi-agency organisation administered by FBI which consolidates several terrorist watch list maintained by
different US government agencies into single terrorist data base on terror suspects.

7.2. INDIA-ITALY: STATUS QUO IN MARINES CASE


The International Tribunal for the Law of the Sea (ITLOS) has put a status quo in the Italian marines case and has
asked both India and Italy to suspend all court proceedings and refrain from initiating new ones.It is a kind of
victory for India as the court did not allow one of the accused marines to go home from Indian custody despite
Italys plea. The other accused marine is already in Italy and is allowed to stay back home by the Supreme Court
due to medical reasons.
Background:

February, 2012 - The marines, who were on board ship Enrica Lexie, are accused of killing two Indian
fishermen off the Kerala coast under the misconception that they were pirates.

July 2015 - During hearing in the Supreme Court, Italy had made a plea before the court saying it has
invoked international arbitration challenging Indias jurisdiction.But, India has been saying that it had
jurisdiction to try the Italian marines as the alleged offence had taken place in the Indian waters.

ITLOS:

34

The ITLOS is an independent judicial body established by the United Nations Convention on the Law of
the Sea to adjudicate disputes arising out of the interpretation and application of the Convention. India
is also a signatory to this convention.

The Convention also established the International Seabed Authority, with responsibility for the
regulation of seabed mining beyond the limits of national jurisdiction, that is beyond the limits of the
territorial sea, the contiguous zone and the continental shelf.

The Tribunal is composed of 21 independent members and based in Hamburg, Germany.

The Tribunal has the power to settle disputes between party states. Currently, there are 161 parties.

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7.3. INDIA - AFGHANISTAN


Recently, India has rejected another invitation from Kabul to revive the Strategic Partnership Agreement (SPA)
signed in 2011 to hold a meeting of the Strategic Partnership Council (SPC). India and Afghanistan have held
only one meeting of the SPC (in 2012).
India was the first country Afghanistan chose to sign a strategic partnership agreement with, despite the U.S.
and Pakistan keen on doing so. Since then, however, India has significantly withdrawn from its strategic promises
to Afghanistan for a number of reasons.

A barrage of attacks from the Taliban supported by Pakistan to Indian presence have forced India to
reconsider its strategic and military assistance there.

From 2014 after former president Karzai, President Ashraf Ghani made a decisive shift like visiting the
Pakistan General Headquarters and inviting the Army and intelligence chiefs to Kabul, and signing an
MoU between intelligence agencies NDS and ISI, even as his government joined talks with the Taliban
hosted by Pakistan.

7.4. INDIA UAE: PM'S VISIT TO UAE

Prime Minister made his first visit to the Gulf region and West Asia with a trip to the United Arab
Emirates (UAE), marking the first visit by Indian PM to the UAE in more than three decades. In 20142015, trade between India and the UAE crossed $59 billion with the balance of trade in favour of India,
making the UAE one of Indias biggest trading partners. India and UAE elevated the relationship
between the two countries to a comprehensive strategic partnership.
Both the countries agreed to co-ordinate efforts to fight radicalisation and misuse of religion by groups
and countries for inciting hatred, perpetrating and justifying terrorism or pursuing political aims. It is
seen as a shift in foreign policy where security and terrorism take precedence over diplomacy in driving
Indias interests.
The joint statement was also significant in the way it indicted Pakistan and state sponsored terror
without naming the country.
The two countries would also work towards the adoption of Indias proposed Comprehensive
Convention on International Terrorism in the United Nations.
The UAE will also support Indias candidature for a permanent seat in the United Nations Security
Council (UNSC).

7.5. INDIA - IRAN


MOU : Chabahar Port
India had recently signed a Memorandum of Understanding with Iran for the development of the Chabahar port.
Irans offer to India to help build a rail link to connect the strategically located Chabahar Port with the
International North-South Transport Corridor (INSTC) project is facing hurdles over terms of contract, related to
the ownership and maintenance of the rail network.
The proposal to India is to help to build over 500km-rail link from the Chabahar in Southeast Iran
to connect with Zahedan, capital of SistanBaluchistan province. Zahedan is connected with
the main Iranian railway network and the
proposed rail link when concluded will join
Chabahar with INSTC and provide access to
Azerbaijan, Turkmenistan and beyond.

35

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Background:
Chabahar port is suitably located to serve Indias outreach in the region to Afghanistan and beyond as well as
link with INSTC to which India is one of the initial signatories. International North-South Transport Corridor
(INSTC) is the ship, rail, and road route for moving freight between India, Russia, Iran, Europe and Central Asia.
Russia, Iran and India signed the agreement for the INSTC project in 2002. In 2014, Dry runs of the two routes in
INSTC were conducted, the first was Mumbai to Baku (Azerbaijan) via Bandar Abbas (Iranian Port) and the
second was Mumbai to Astrakhan (Russia) via Bandar Abbas, Tehran and Bandar Anzali (Iran).
Implications: India is keen to tap the trading potential with countries in the region and has been pushing for
providing connectivity. The objective of the corridor is to increase trade connectivity between major cities such
as Mumbai, Moscow, Tehran, Baku, Bandar Abbas, Astrakhan, Bandar Anzali and etc.
Visa Policy
India has liberalised its visa policy for Iran and struck it off the prior referral category (PRC) of countries. Three
categories of visas employment, conference, students and research visa were on the restricted list till now.
The two countries have agreed to facilitate development in various fields including ports, north-south corridor,
petrochemicals, steel industries, pharmaceuticals, and medical equipment
Implications: India sees Iran as a key supporter in the wake of the growing threats and influence of Islamist
terror groups such as the Islamic State in Central Asia. For the ease of doing business, It will lead to large number
of Iranians visiting India and help boost economy.
Iranian Foreign Ministers Visit
The Iranian foreign ministers visit comes at a time when India is looking to recalibrate its ties with the countries
in West Asiabetween security partner Israel, Shia-majority Iran, which is a crucial energy partner, and the
Sunni Arab Gulf nations that have an impact on Indian security and also are home to many million Indian
expatriate workers and important suppliers of energy.

7.6. INDIA AND THE UNSC ISSUES


After the United States, Russia too has clarified that it is open to supporting Indias bid for a permanent seat in
the United Nations Security Council (UNSC). Russia supports the candidature of India and Brazil as well as an
African country in the UNSC.
But the US, Russia and China are not in favour of any large-scale reforms of the UN security council and giving
veto power to new members.
Background
India, which will be competing for a permanent seat with Germany, Japan and Brazil, already has the support of
France and the U.K., and has long held that as one of the biggest democracies and a growing economy it is
poised to take its place in the UNSC complete with the veto. However, China remains a big roadblock as it has
not clarified its position on support for India.
Implications

36

It is imperative that the consolidated document uploaded by the President of the General Assembly,
Sam Kutesa, at least be accepted by the countries as a basis for discussing UN reform next year.
Indian officials feel that the fact that countries have committed to positions is a positive development
for the process in this long discussion of seven years.
If, anyone of the P-5 countries for instance, China decides to veto a resolution to accept the
document, Indias hopes for a permanent seat in the near future will be in danger.

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India and UNSC

India was among the founding members of United Nations.


It is the second largest and one of the largest constant contributor of troops to United Nations
Peacekeeping missions.
India, since long time, has been demanding expansion of UNSC and its inclusion as permanent member
in it. It has been a member of UNSC for 7 terms and a member of G-77 and G-4, so permanent
membership is a logical extension.

UNSC - Key Facts

The United Nations Security Council (UNSC) is one of the six principal organs of the United Nations and is
charged with the maintenance of international peace and security.
Its powers include the establishment of peacekeeping operations, the establishment of international
sanctions, and the authorization of military action through Security Council resolutions; it is the only UN
body with the authority to issue binding resolutions to member states.
The Security Council consists of fifteen members. Russia, the United Kingdom, France, China, and the
United Statesserve as the bodys five permanent members. These permanent members can veto any
substantive Security Council resolution, including those on the admission of new member states or
candidates for Secretary-General.
The Security Council also has 10 non-permanent members, elected on a regional basis to serve two-year
terms. The bodys presidency rotates monthly among its members.

7.7. TRAVEL & TOURISM COMPETITIVE INDEX 2015


As per the Travel and Tourism Competitiveness Index (TTCI) 2015, of the World Economic Forum, Indias rank has
improved significantly to 52nd this year from 65th in 2013. Improving the ranking had been set as a target in the
Result Framework Document (RFD) of the Ministry of Tourism for the year 2014-15.
Travel & Tourism Competitive Index measures the set of factors and policies that enable the sustainable
development of the Travel & Tourism (T&T) sector, which in turn, contributes to the development and
competitiveness of a country. It is published biennially and that is of 141 economies.

7.8. CHINA PAKISTAN ECONOMIC CORRIDOR (CPEC) PROJECT


China and Pakistan recently signed 20 more agreements to implement the ambitious China-Pakistan Economic
Corridor (CPEC) project.
CPEC

37

The agreements were signed at the CPEC Forum held at Karamay city in Xinjiang province bordering
Pakistan-occupied Kashmir (PoK).

This project will shorten the route for Chinas energy imports from the Middle East by about 12,000 kms.

The project includes building of highways, railways as well as pipelines. It is among the six economic
corridors conceived under Chinas Silk Road Economic Belt and 21st-Century Maritime Silk Road.

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Indias Concerns
India has conveyed its objections to China as it passes through disputed territory i.e. POK. However, China
defends it as commercial project aimed at improving the lives of people.

7.9. SENDAI FRAMEWORK FOR DISASTER RISK REDUCTION

India has decided to implement the Sendai framework.


The Sendai Framework for Disaster Risk Reduction 2015-2030 was adopted during the Third UN World
Conference on Disaster Risk Reduction held in Sendai, Japan in March, 2015.
It is the first major agreement of the post-2015 development agenda, with seven targets and four
priorities for action.
The United Nations Office for Disaster Risk Reduction (UNISDR UN International Strategy for Disaster
Reduction) has been actively supporting Indias Leadership role in implementation of Sendai Framework
for disaster risk reduction in the Asian region.
The Sendai Framework is a 15-year, voluntary, non-binding agreement which recognizes that the State
has the primary role to reduce disaster risk but that responsibility should be shared with other
stakeholders including local government, the private sector and other stakeholders.
The Sendai Framework is the successor instrument to the Hyogo Framework for Action (HFA) 2005-2015
Building the Resilience of Nations and Communities to Disasters.

7.10. SAARC PROMOTES NON WOOD FOREST PRODUCE


SAARC (South Asian Association for Regional Cooperation) Expert Group on Community-based Sustainable
Management of NWFP and Income Generation for Communities With Delegates from the eight membernations, namely Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
Key Agenda

38

The meeting also mooted the establishment of legal, fiscal and market mechanisms to ensure
sustainability of NWFP harvesting with community participation.
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They also resolved to set up a comprehensive policy framework to legalise the collection, processing
and certification of the products and to facilitate value addition.
The meeting also came to a general consensus on establishing a real-time market intelligence and
monitoring system for high value forest produce.
To curb over exploitation, the expert group mooted steps to entrust local communities with the
proprietorship of these resources.

Non Wood Forest Products (NWEP)

Food and Agriculture Organization (FAO) defines NWFP as being goods of biological origin other than
wood derived from forests, other wooded land and trees outside forests.

NWFP may be gathered from the wild, or produced in forest plantations, agro forestry schemes and from trees
outside forests. Examples of NWFP include products used as food and food additives (edible nuts, mushrooms,
fruits, herbs, spices and condiments, aromatic plants, game), fibres (used in construction, furniture, clothing or
utensiles), resins, gums, and plant and animal products used for medicinal, cosmetic or cultural purposes.NWFP
have also attracted considerable global interests in recent years due to the increasing recognition of their
contribution to environmental objectives, including the conservation of biological diversity.

7.11. JAIPUR SUMMIT:


COOPERATION (FIPIC)

FORUM

FOR

INDIA

PACIFIC

ISLANDS

India hosted the second summit of the Pacific Islands countries, Forum for India-Pacific Islands Cooperation
(FIPIC) as part of a strategy to expand its presence in the region which is important from an economic and
geostrategic standpoint. The agenda included agriculture, food processing, fisheries, solar energy, e-networks for
coordination in telemedicine and tele-education, space cooperation and climate change

PM announced a major plan to open a new space research and satellite monitoring station on the Fiji
Islands. A satellite monitoring station in Fiji will provide India with an independent satellite tracking
capacity. At present, India relies on the United States and Australia to assist it with monitoring its
satellites over the Pacific.
The summit in Jaipur underlined the growing geostrategic importance of the 14 South Pacific islands that
lie at the centre of a key maritime route rich in resources and one of the largest voting blocs in the
United Nations.
The support of these countries is key to India's attempt to become a permanent member of the UN
Security Council.

Implications

Indias strong relations with Fiji, which has considerable influence in the region, was a strong point
which could help counter the growing Chinese influence.
Analysts argue that most of the economies in the region are based on agriculture, fisheries and smallscale industries and Indias capacity in these sectors is even better than Europe and China; it can
cultivate relations with the island nations based on its technology.
Even small investments will make a big impact in these regions
Many of these countries send their nationals to India for education through programmes sponsored by
the Indian Council of Cultural Relations

Thus, India should make a beginning keeping in mind its strengths, possible synergy and complementarity of
interests and needs.

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7.12. ANCHOR BABY & BIRTH TOURISM: A CONTROVERSY


Why in News
The anchor baby issue is prevalent in US due to the 2016 presidential campaign where one party promises to
end it, and another to support it.
A child born of an immigrant in the United States, said to be a device by which the U.S.-born children can
sponsor their parents for citizenship after they reach 21 years of age. Since those children are automatically
allowed to choose American citizenship.
Criticism
It is being criticised that the United States' "birthright citizenship" is an incentive for illegal immigration, and that
immigrants come to the country to give birth specifically so that their child will be an American citizen.
Specially criticised for Asians coming to the U.S. and taking advantage of birth-right citizenship referring the
term birth tourism. Where Pregnant Chinese women paying agencies to bring them to the U.S. to have their
babies so that they can grow up as American citizens. It is criticised as fraud by taking advantage of a noble
concept.
Counter Criticism

While studies by the Pew Research Centre and the Centre for Immigration Studies estimate that nearly 300,000
children a year are born in the U.S. with at least one parent who is an undocumented immigrant, nearly 70 per
cent of them come from Mexico, El Salvador and Honduras, and not China (Asia).

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8. ALSO IN NEWS
8.1. TRIPURA PASSED RESOLUTION AGAINST CAPITAL PUNISHMENT

Tripura Assembly has passed a resolution to request the Union Government to amend Section 302 of the
IPC to abolish capital punishment. In resolution, it asked to replace death sentence with life sentence unto
death.
In Bachan Singh vs State Of Punjab, 1980, The Supreme Court of India ruled that the death penalty should
be imposed only in "the rarest of rare cases. Also, In November 2012, India again upheld its stance on
capital punishment by voting against the UN General Assembly draft resolution seeking to ban death
penalty.

Q. Instances of Presidents delay in commuting death sentences have come under public debate as denial of
justice. Should there be a time limit specified for the President to accept/reject such petitions? Analyse (Q5,
Paper II, UPSC 2014)

8.2. MYSURU TOPS SWACHH BHARAT RANKING


Ministry of Urban Development released Swachh Bharat Ranking which included 476 first tier cities with
population more than 1 lakh.
The survey used two parameters for cleanliness in cities:

How minimal open defecation was in the city.


How robust the municipalities were with the solid waste management system.

The city of Mysuru was found impressive on both the parameters.


The basic purpose of the survey was to find out where exactly the cities were standing at the launch of Swachh
Bharat Mission and what distance they have covered ever since.

8.3. INDEPENDENCE DAY


IMPORTANT TAKE AWAYS

SPEECH

OF

THE

PRIME

MINISTER

The Prime Minister gave broad overview of the achievements in last fifteen months along with certain
announcements such as:

41

While stressing the need for farmers' welfare declared that the Ministry of Agriculture would be
renamed as the Ministry of Agriculture and Farmers' Welfare.
Announced "Start-Up India" initiative to encourage entrepreneurship among the youth of India. Every
bank branches should encourage at least one Dalit or Adivasi entrepreneur, and at least one woman
entrepreneur.
To make India a developed nation by 2022, with a house and access to basic services like electricity, to
all.
To connect with electricity, all the 18,500 villages which still remain without power, within the next 1000
days.
To end the practice of "interviews" for recruitments even at relatively junior levels at the earliest, and to
promote merit by recruiting only through transparent, online processes.

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To convert 44 labour laws into four simplified codes related to industrial relations, wages, social security
and safety.
To utilise unclaimed amount lying in EPF account for the welfare of workers.

8.4. PROJECT MASOOM BY YOUNG INDIA


The Young India has launched a nationwide Project Masoom against child sexual abuse.
Need of initiative:

Rising number of child abuse cases reported in the media is a cause for alarm.
Large number of cases not reported due to lack of awareness or the fear of loss of reputation.

About Project:

The idea is to create better awareness about the issue and effectively spread the message by campaigning
at public places like cinema halls.

The campaign material lists ways to protect children from the abusers. Also it enlightens about the
Protection of Children from Sexual Offences (POSCO) Act 2012.

The project will also be introduced in schools to educate the parents, teachers and children about the
issue.

Major Challenges:

Parents choose not to complain and also discourage their children from talking about it. This gives an
undue advantage to the abusers.
In many nuclear families parents work and entrust the job to pick up and drop their children on unknown
van or auto drivers.
Also, not many parents show inclination to understand the childrens world.

Way Forward:
It is the duty of every parent to listen to their children and observe their activities, behaviour and mood and also
caution them about good and bad things.
Few Facts:

One in every six male and one in every four female children under 18 years fall victim to sexual abuse.
Close relatives are the main culprits in 89 per cent of the cases.
Parents/family members are unaware of the incident in 70 percent of the cases.

8.5. LINGUISTIC SURVEY OF INDIA TO BE PUBLISHED


The Gujarat based Bhasha Research and Publication Centre (BPRC) conducted Peoples Linguistic Survey of
India in 2013. The important findings of survey are as follows:

42

The survey identified 860 languages in India.


The state of Arunachal Pradesh has maximum number of dialects.
About 300 languages are untraceable since Independence.
Around 40 Crore people in India can communicate in Hindi and it has gained popularity more than
English.
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The survey holds great significance as it is almost a century after George Griersons Linguistic Survey of India
that such a survey has been carried out.

8.6. CABINET APPROVES PACT WITH THE SEYCHELLES TO CURB BLACK


MONEY
Provisions and Impact

Information received under the agreement can be disclosed to any other person or entity with prior
written consent of the country sending such information.
It provides for a Mutual Agreement Procedure for resolving any difference or for agreeing on
procedures.
It will stimulate information exchange between two nations for tax purposes.
Will help curb tax evasion and avoidance.

Other steps taken to curb black money:

India joined 59 countries in the Multilateral Competent Authority Agreement on the Automatic
Exchange of Financial Account Information in May. This agreement obliges signatories to exchange
periodically and automatically a wide range of financial information among themselves.
India signed an inter-governmental agreement with the U.S. to implement the Foreign Account Tax
Compliance Act (FATCA), a significant step towards curbing overseas tax evasion and black money.

8.7. GUJARAT VIOLENCE: 24X7 SITUATION ROOM TO TRACK SOCIAL


MEDIA
What it is:
Parallel system to keep watch on activities on the Internet
The 24x7 situation room could be a collaborative initiative of six or seven Ministries but headed by the Home
Ministry.
Features:

Analyze social media content and generate social media intelligence through analysis.
Through such 24x7 situation rooms the government aims to build a counter-narrative in real time to
ensure that credible information is disseminated.
A similar set-up the New Media Wing in the Information and Broadcasting Ministry generates social
media reports and sends it to top bureaucrats twice a day.

Immediate Reason:
A huge gathering was mobilised for the Patel agitation in Gujarat by messages circulated through social
networking sites and mobile applications.
Q. What are social networking site and what security implications do these sites present? [Mains 2013]

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8.8. STEPS TAKEN BY GOVT. TO CHECK GOLD SMUGGLING

Regular rummaging of aircrafts and scanning of passenger baggage to detect concealment.


To stop gold smuggling at the sea route connecting Sri Lanka and Tamil Nadu, agencies are regularly
contacted and patrolling is being conducted along the coastal areas.
Actionable intelligence is shared with agencies like coast guard, IB, state police to check any untoward
movement of persons or goods in the sea route connecting Sri Lanka and Tamil Nadu
In 2014-15, there were 169 gold seizure cases.

Other facilities to prevent Gold Smuggling

Sophisticated door frame metal detectors.


Hand held metal detectors.
X-rays baggage machines.

8.9. USE OF UNUSED TV SPECTRUM TO PROVIDE BROADBAND


INTERNET CONNECTIVITY

A research group at the Indian Institute of Technology Bombay (IITB) has set up Indias first pilot test-bed
which uses unused TV spectrum to provide broadband Internet connectivity in rural areas.
The Department of Telecom (DoT) has also granted an experimental licence to IITB to conduct tests in
TVs UHF band.

Significance

could be used inDigital India programme Cheaper than optic fibre network
can provide coverage within a radius of 1to 10 km from the access network such as WiFi zones, access
points and clusters to an optic fibre point of presence.

8.10. SAMANVAY WEB PORTAL


Purpose:
To monitor progress and implementation of the Sansad Adarsh Gram Yojana (SAGY) launched by Ministry of
Rural Development.
Features

SAMANVAY will compile all schemes of both the Centre and state governments at the gram panchayat
level
More than 1800 central and state schemes across India have been documented in SAMANVAY.

Significance

44

This move will help the MPs to utilise relevant schemes in planning and implementation of Sansad
Adarsh Gram Yojana (SAGY).

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8.11. GOVERNMENT TO ANNOUNCE PREMIUM PRICING FOR DIFFICULT


FIELDS

In an attempt to incentivize hydrocarbon exploration, the government will soon announce premium
pricing on new discoveries in difficult areas.
This will allow explorers such as Oil and Natural Gas Corp. Ltd (ONGC) and Reliance Industries Ltd (RIL) to
charge a premium over and above the price formula approved by the government in October last year.
This comes against the backdrop of waning investor interest in the Indian hydrocarbon sector, with
around 70% of Indian basins remaining largely under-explored.
In October 2014, the government announced a new gas-pricing formula. According to the formula
approved by the Cabinet Committee on Economic Affairs (CCEA), on a net calorific value (NCV) basis, the
price applicable from 1 April to 30 September is $5.18 per million British thermal unit (mmBtu).

India approved the New Exploration Licensing Policy (Nelp) in 1997it took effect in January 1999to boost
hydrocarbon exploration. Under Nelp, the government allocates rights to explore hydrocarbon blocks through
a bidding process and has done this in nine phases so far for 360 blocks, with an investment of around $21.3
billion. Hydrocarbon explorers in India have made a total payment of $15.41 billion to the Union government
as royalties and cess, and $1.93 billion to state governments since 1994.

8.12. BANKING
8.12.1. APPROVAL TO PAYMENT BANKS

The Reserve Bank of India (RBI) has given in-principle


approval to 11 entities to open payments banks that will
In-principle approval will be valid for
widen the reach of banking services and push the
18 months, after which the entities will
be given formal licenses, provided they
governments goal of financial inclusion.
fulfil conditions stipulated by RBI
This new category of banks will provide basic savings,
Concerns
deposit, payment and remittance services to people without
access to the formal banking system.
The payments banks will target financially excluded
customers like migrant workers, low-income households and tiny businesses. They will not be in the
business of lending, so they will be shielded from the risks that conventional banks are exposed to.
there are sceptics who wonder whether banks that cannot lend money and which will be limited to
keeping a maximum deposit of Rs.1 lakh per customer have a future at all.
Another concern is that RBI may have problems regulating these virtual banks that will operate mainly
with point-of-sales devices and through business correspondents.

8.13. INDIA AND THE ARAB LEAGUE: NO CHANGE IN INDIA'S POSITION


ON PALESTINE

45

The official statement reiterated Indias support to the Palestinian cause. It also underlined that there is
no change in Indias position and that the President of India will visit Palestine, Israel and Jordan
together, and our basic support for the Palestinian cause will remain undiluted in future. This statement
reiterates Indias commitment to Palestinian issue which remains a sensitive one in the Arab world.

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It can be seen as a balancing act on the part


of India which wants to strengthen relations
with Israel as well as safeguard its traditional
ties with the Arab countries.
On July 3, India for the first time abstained
from voting on an anti-Israel resolution at
the UN Human Rights Council. The
resolution called for accountability from the
parties to last years conflict in Gaza that
killed over 2,000 people and justice for all
violations of international law in the
occupied Palestinian territory. India later
argued that its abstention was on account of
a direct action-oriented reference made in
the resolution to the International Criminal
Court, of which it is not a member.

8.14. INDIA BANGALDESH: MOU TO FIGHT FAKE CURRENCY


At a meeting of the Joint Task Force on Fake Currency Notes in Dhaka India and Bangladesh have signed a
memorandum of understanding to curb the smuggling of counterfeit currency notes, posing a threat to national
security by sharing intelligence on a real-time basis.

8.15. INDIA PAKISTAN


8.15.1. NSA MEETING CALLED OFF

Pakistan called of the proposed meeting between the NSAs of India and Pakistan as stipulated in the
Ufa declaration of July 2015. The declaration stated that the nations will strengthen their cooperation
to counter international terrorism, giving the central role in this action to the United Nations. India was
firm on its stand that the talks would be about terrorism and terrorism alone. Pakistan wanted a broader
agenda that included a territorial dispute over Kashmir.

Implications:

The cancellation of NSA levels talks is symptomatic of relations between the two parties that have
shown lack of trust in recent times.
Prime Ministers of the two countries would have an opportunity to meet on the side-lines of the United
National General Assembly session in September. The scheduled meeting between the top brass of
Pakistan Rangers and BSF would also be a small step towards continuation of contacts.

8.15.2. INDIA DECIDES TO BOYCOTT CPU MEET


India has decided to boycott the 61st conference of the Commonwealth Parliamentary Union (CPU) to be held
in Islamabad unless Pakistan extends an invitation to the Speaker of the Jammu and Kashmir Assembly.

46

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Indias decision stems from Islamabads refusal to invite the J&K Speaker on the grounds that it is in
violation of the UN Security Council Resolution 1991(1951) of March 30, 1951 and resolution 122 (1957)
of January 4, 1957.
It was argued that Pakistans decision is in violation of CPU rules and also perplexing as the J&K branch
was part of the 3rd Asia and India Regional CPU Conference held in Islamabad in March 2007.
Pakistan claims that the invitation to J&K would contradict the fundamentals of Pakistans foreign policy.

8.16. INDIA SEYCHELLES


During the visit of Seychelles President James Alix Michel to India, Several key issues were discussed and deals
signed. As

Maritime security ties and cooperation on blue economy with the island nation.
A Taxation Agreement with the Seychelles for allowing exchange of information to curb tax evasion and
avoidance
Agreements of Space cooperation and Agriculture

Implications:

The location of Seychelles in Indian ocean makes it all the more important for Indian interests from the
perspective of Indias burgeoning diplomacy with Island nations such as the ones in the Pacific..
As the Seychelles is considered one of the preferred offshore havens for routing of funds, signing and
ratification of the taxation pact with the island nation will help in curbing and unearthing black money.
The two countries have excellent security cooperation in the Indian Ocean region, as India has provided
aircraft, naval vessels and coastal radar systems for strengthening surveillance capacities and this visit
follows on the achievements of the visit of Prime Minister in March 2015.

8.17. INDIA CHINA: DAULAT BEG OLDIE, THE FIFTH BORDER


MEETING POINT
Daulat Beg Oldie in Ladakh was designated as fifth border meeting point between India and China as a major
step to keep the frontiers calm.

This is the second border meeting point to be set up between the two countries over the past year.
In May, the two countries opened another border meeting point in Kibithu in Arunachal
PradeshImplications
It might have the scope of complementarity and reconciliation of Chinas Belt and Road initiative with
Indias Act East Policy.
However, the Indian side has yet to confirm about the Chinese position on bilateral issues.

8.18. INDIA MYANMAR


India has provided relief supplies to Myanmar on a request from the flood-hit country. Widespread floods and
landslides have wreaked havoc in the nation on Indias eastern border, affecting 2.5 lakh people and damaging
over five lakh acres of farm land.

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Implications

In April, India took the lead in rescue and relief operations in Nepal after an earthquake in the Himalayan
nation. Though the Nepalese government appreciated Indias role, sections of Indian media were
criticised for its coverage of the tragedy.
Cooperation in the times of need can bolster Indias image and goodwill in the neighbourhood; however
such occasions also call for a sensitive handling of public relations with subtelity.

8.19. INDIAN SAILORS GET INTERNATIONAL IDENTITY


In a move that could improve the employability of Indian sailors in international shipping, the Union
government has ratified the International Seafarers Identity Documents Convention, 2003, which will provide
for a globally recognised seafarers identity document. The Convention, under the International Labour
Organisation, has been ratified by 30 other countries.

In addition to facilitating mobility of seafarers, the smart card will improve maritime security with a
verifiable identification.
Many countries require such identification before they grant special facilities to seafarers.
Soon, the biometric data of Indian seafarers will be collected and the identity document will be issued in
the form of a globally recognised smart card within the next six months.

Implications

Every year, several hundred Indian sailors are incarcerated abroad for various reasons, and without
proper internationally recognised identification, they do not have the full support of the law.
In addition, this ratification by India will increase the employability of Indian sailors by allowing them to
cross into foreign waters unhindered. India has over 1.8 lakh seafarers, just around 7 per cent of the
global share of sailors.

8.20. CONCERNS WRT TO INDIANS ABDUCTED IN LIBYA


In a development that highlights threats posed to Indian interests by the rise of radical groups such as Islamic
State four Indians were abducted in Libya near the town of Sirte. Two of them were subsequently released.
It raises several issues : .

As it was unclear which group held the men.


And moreover India maintains only a small mission in Tripoli with Charge d Affaires Mohammad Rashid
Khan,and monitors the situation through the Embassy in Tunisia.
The incident brings militants threatening an armageddon-like war on India, calling on jehadi groups
in Afghanistan and Pakistan to unite against India.
The incident brings into question the larger problem for the government of Indian nationals who
continue to live in and travel to areas of major conflict despite clear advisories issued by the
government.

8.21. EXPANDED SUEZ CANAL

48

Egypt President unveiled an expanded Suez Canal with the first ships passing through the waterway in
what Egypt hopes will boost its economy and global standing.
The government says the project will more than double the canals annual revenue to $13.2 billion by
2023.
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VISIONIAS
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CURRENT AFFAIRS
SEPTEMBER 2015

Copyright by Vision IAS


All rights are reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
IAS.

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TABLE OF CONTENTS
1. POLITY AND GOVERNANCE __________________________________________________________ 5
Sedition Circular by Maharashtra Government __________________________________________________ 5
Draft encryption policy _____________________________________________________________________ 7
Foreign Funding of NGOs and FCRA ___________________________________________________________ 9
Shyama Prasad Mukherji Rurban Mission _____________________________________________________ 10
Pradhan Mantri Khanij Kshetra Kalyan Yojana(PMKKY) __________________________________________ 11
Revision of National Register of Citizen (1951) in Assam _________________________________________ 12
Protection of Manipur People Bill, 2015 ______________________________________________________ 14
Law Commission recommended capital punishment abolition ____________________________________ 16
Also in News ____________________________________________________________________________ 17
E-Governance ___________________________________________________________________________ 17
World Bank report on Urbanization in South Asia_______________________________________________ 17
Special Court Bill passed by Andhra Pradesh Assembly __________________________________________ 18
SC portal on pendency of cases _____________________________________________________________ 18
Steps Taken by The Central Government for Relief to Farmers in view of Deficit Monsoon _____________ 19
Water Policy in India ______________________________________________________________________ 19
Indian Railways - Safety and Security_________________________________________________________ 20
Seventh Pay Commission __________________________________________________________________ 20

2. SOCIAL ISSUES____________________________________________________________________ 21
Framework for ranking Indian institutes ______________________________________________________ 21
Maternal And Child Health _________________________________________________________________ 22
India and MDG __________________________________________________________________________ 23
Reservation in India ______________________________________________________________________ 24
Countries with gender parity are at economic advantage ________________________________________ 26

3. INTERNAL SECURITY _______________________________________________________________ 27


Gujarat Control of Terrorism and Organized Crime Bill (GCTOC) ___________________________________ 27
National Center of Excellence in Technology for Internal Security (NCETIS) __________________________ 28
Regulation of Explosives in India ____________________________________________________________ 29
Colombo Plan Drug Advisory Programme _____________________________________________________ 29
Government - Internet Companies cooperation to manage security crises ___________________________ 30

4. SCIENCE & TECHNOLOGY ___________________________________________________________ 31


SPACE __________________________________________________________________________________ 31
ASTROSAT ______________________________________________________________________________ 31
LAPAN A2/Orari__________________________________________________________________________ 32
NASAs SERVIR-Mekong project _____________________________________________________________ 32
ISRO conferred Gandhi Peace Prize 2014 ______________________________________________________ 33
2

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Europa Clipper Mission ____________________________________________________________________ 33


Mission on Mars (Mangalyaan) A technology demonstrator mission ______________________________ 33
PMs address at special session of National Meet on Promoting Space Technology based Tools and
Applications in Governance and Development _________________________________________________ 35
Defence ________________________________________________________________________________ 35
Floating test range for Ballistic missile defence systemBMD Phase 2 ______________________________ 35
Amogha-I Missile _________________________________________________________________________ 36
Karwar - world's largest naval base east of the Suez Canal________________________________________ 36
Integrated Air Command and Control System (IACCS) ___________________________________________ 36
Defence Procurement _____________________________________________________________________ 37
Indias Joint Military Exercises ______________________________________________________________ 37
Health and Biotech _______________________________________________________________________ 38
Injectable Polio Vaccine (IPV) _______________________________________________________________ 38
Worlds First Meningitis B Vaccination _______________________________________________________ 38
Brucella ________________________________________________________________________________ 39
mtDNA _________________________________________________________________________________ 39
IT _____________________________________________________________________________________ 39
MOOC _________________________________________________________________________________ 39
PM's visit to Silicon Valley- Important technology related outcomes _______________________________ 40
Flasher _________________________________________________________________________________ 41
Hybrid Vacuum Toilets ____________________________________________________________________ 41
Powerwall ______________________________________________________________________________ 41

5. ENVIRONMENT ___________________________________________________________________ 42
Meeting of Like-Minded Developing Countries (LMDC) __________________________________________ 42
National Green Highway Policy _____________________________________________________________ 42
The Public Liability Insurance (PLI) Act, 1991 ___________________________________________________ 43
National Offshore Wind Energy Policy ________________________________________________________ 44
Ethical concerns regarding climate change ____________________________________________________ 45
First ever leopard census in India ____________________________________________________________ 46
Yellow-throated bulbul ____________________________________________________________________ 46

6. ECONOMY _______________________________________________________________________ 47
Tackling NPAs ___________________________________________________________________________ 47
FMC merger with SEBI_____________________________________________________________________ 48
Deflation in India _________________________________________________________________________ 49
Present Indian economic situation ___________________________________________________________ 50
Gold monetization scheme and Sovereign gold bond scheme _____________________________________ 52
Teaser Home Loan ________________________________________________________________________ 53

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Also In News ____________________________________________________________________________ 54


Spectrum trading norms to be notified soon ___________________________________________________ 54
World Banks Survey: Ease of doing business __________________________________________________ 55
Draft framework on External Commercial Borrowings (ECB) ______________________________________ 56
RBI and interest rates _____________________________________________________________________ 56
New features introduced on currency notes ___________________________________________________ 57
US Federal Reserve kept benchmark rates unchanged ___________________________________________ 58
Various initiatives to make India attractive for global investment__________________________________ 59
Oil exploration in India - Revenue sharing model _______________________________________________ 59

7. INDIA & WORLD / INTERNATIONAL AFFAIRS ___________________________________________ 61


Comprehensive Nuclear Test Ban Treaty ______________________________________________________ 61
UNSC reform ____________________________________________________________________________ 62
India Australia __________________________________________________________________________ 63
India-Cambodia: _________________________________________________________________________ 64
India- Sri Lanka: __________________________________________________________________________ 64
Indias Look West policy __________________________________________________________________ 65
Conclusion ______________________________________________________________________________ 66
India - Iran ______________________________________________________________________________ 66
Myanmar Election ________________________________________________________________________ 67
Nepal adopts first democratic Constitution ____________________________________________________ 68
Sri Lankan war crimes _____________________________________________________________________ 69
ASEAN Trade Corridor _____________________________________________________________________ 70
Europes refugee crisis ____________________________________________________________________ 70
Attacks on bloggers in Bangladesh: __________________________________________________________ 72
U.K.s Labour Party _______________________________________________________________________ 73
Greek election ___________________________________________________________________________ 73
Conflict in Korean peninsula ________________________________________________________________ 74
Sustainable Development Goals _____________________________________________________________ 75
Also in News ____________________________________________________________________________ 77
Citizenship for religious persecuted peoples ___________________________________________________ 77
Safe harbor _____________________________________________________________________________ 78
UNESCO award __________________________________________________________________________ 78
G-20 ___________________________________________________________________________________ 78
White House medal _______________________________________________________________________ 78
Parade to commemorate WW II victory_______________________________________________________ 78
Tibet Autonomous Republic (TAR) ___________________________________________________________ 79

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1. POLITY AND GOVERNANCE


SEDITION CIRCULAR BY MAHARASHTRA GOVERNMENT

The circular asks police to bear in mind that the sedition clause of IPC can be invoked against 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, dissatisfaction and provoking violence" against the central or state
government.
However, the section 124-A will not be invoked against those trying to bring change in government through
legal means without hatred and contempt.
It came under severe criticism that it is an attempt to curb free speech.

BACKGROUND

The circular was issued at the instance of the Bombay


High Court when it dismissed sedition charges against
Freedom of Speech and Expression
cartoonist Aseem Trivedi. The latter had been charged
The Constitution of India provides Freedom of
and arrested by the Mumbai police in September 2011
Speech
and Expression as Fundamental Right
under Section 124A in relation to some of his cartoons.
under
article
19(1) (a). However, it is not an
While dismissing the charges, the court held that
absolute
right.
The state can impose reasonable
merely criticizing the government could not be termed
restrictions
on
its exercise on the grounds of
as sedition.
sovereignty
and
integrity of India, security of
The state government gave an undertaking to the court
the state, friendly relations with foreign states,
that it would issue clear guidelines to the police on the
public order, decency or morality, contempt of
use of Section 124A.
court, defamation, and incitement to an
This circular was presented to the court in March this
offence.
year and was finally sent out to police stations at the
end of August.
It is the Marathi version of these guidelines that has generated controversy as it has injected ambiguity and
room for discretion that inevitably results in precisely the kind of misuse that the court sought to prevent.

CONTROVERSY

Instead of clarifying to the police the limits of using the law, the Marathi version appears to expand it.
1. while the English version states that words, signs or representations against politicians or public
servants by themselves do not fall in this category unless the words/signs/representations show them as
representatives of the government, the Marathi version irons out all these caveats by stating, words,
signs, or representation to be treated as seditious if they are against a person who is shown as
representative of government., It gives police the discretion to decide whether the politician or public
servant is shown as representative of the government.
2. the English guidelines state that words, signs or representations must bring the government (Central or
State) into hatred or contempt or must cause or attempt to cause disaffection, enmity or disloyalty to the
government and the words/signs/representation must also be an incitement to violence or must be
intended or tend to create public disorder or a reasonable apprehension of public disorder. But in the
Marathi translation there is ambiguity. In any case, reasonable apprehension of public disorder in
English or Marathi allows room for many different interpretations and has been used liberally by the
police to put down agitations.

The ambiguity in the circular can be misused by the state against an individual citizen for fair criticism of
politician or public personality and or against a fair criticism of their policies.
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It is contended that clause 1 and 2 of the circular does not mention that "apprehension or anticipated
danger" must be based on reasonable ground that the danger apprehended is real and imminent.

SECTION 124A

The section 124A of Indian Penal Code is a pre-independence


provision which covers sedition charges against government.
In 1962, the Supreme Court upheld Section 124A and held that it
struck a correct balance between fundamental rights and the
need for public order.
Human rights activists and supporters of free speech argued that
this section is draconian and should be got rid of.

Popular cases under section 124A


Protesters

of Kudankulam
nuclear plant
writers like Arundhati Roy
Social activist Binayak Sen
Cartoonist Asim Trivedi

ARGUMENT AGAINST SECTION 124A

It stifles the democratic right of people to criticize the government.


The police might not have the requisite training to understand the consequences of imposing such a
stringent provision.
It has been used arbitrarily to curb dissent. In many cases the main targets have been writers, journalists,
activists who question government policy and projects, and political dissenters.
The massive levels of poverty, poor health care, unemployment, malnourishment and poor policies leading
to farmer's suicide - justifies expressing dissent and disenchantment against government openly.
The draconian nature of this lawnon-bailable, non-cognisable and punishment that can extend for life
has a strong deterrent effect on dissent even if it is not used.
The press should be protected so that it could bare the secrets of government and inform the people. Only a
free and unrestrained press can effectively expose deception in government.
Legislation exists to deal with unlawful activities and armed movements. There is no need to criminalize
words spoken or written.

WAY FORWARD
The provisions of the section should be so construed as to limit their application to acts involving intention or
tendency to create disorder or disturbance of law and order, or, incitement of violence and there must be a clear
guidelines on this without any ambiguity. This will ensure that section 124 A of IPC strikes a balance between
security and smooth functioning of state with the fundamental right of freedom of speech and expression.

Questions:
1. Discuss Section 66A of IT Act, with reference to its alleged violation of Article 19 of the Constitution. (UPSC
Mains GS 3 - CSE 2013)
2. What do understand by the concept freedom of speech and expression? Does it cover hate speech also?
Why do the films in India stand on a slightly different plane from other forms of expression? Discuss. (UPSC
Mains GS 2 - CSE 2014)

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DRAFT ENCRYPTION POLICY

Under Section 84A of Information


Technology Act, 2000 Rules are to be
framed to prescribe modes or methods
for encryption. In this regard, a draft
National Encryption Policy was
formulated by an Expert Group setup
by Government.
The aim was to enable information
security environment and secure
transactions in Cyber Space for
individuals, businesses, Government
including nationally critical information

Why in News?
The Government of India recently published the Draft National
Encryption policy for public comments online seeking methods
of data encryption of data and communications used by the
government, businesses, and even citizens. The said draft
policy evoked strong responses from various stakeholders and
consequently, shortly after its introduction for comments in
the public domain, the said Draft National Encryption policy
was withdrawn by the Government.
systems and networks.

THE OBJECTIVE OF THE POLICY

To synchronize with the emerging global digital


economy / network society and use of Encryption for
ensuring the Security / confidentiality of data and to
protect privacy in information and communication
infrastructure without unduly affecting public safety
and National Security.
To encourage wider usage of Digital Signature by all
entities
including
Government
for
trusted
communication, transactions and authentication.
To encourage the adoption of information security
best practices by all entities and Stakeholders in the
Government, public & private sector and citizens that are
consistent with industry practice.

FEATURES
SALIENT
ENCRYPTION POLICY

OF

NATIONAL

All citizens are required to store the plain text of the


encrypted messages for 90 days and provide it to law
enforcement agencies as and when required.
All vendors of encryption products need to register their
products with the designated agency of the Government
All encryption technology used in India shall be cleared by
the government.
Government shall maintain a list of all encryption
technologies and only those technologies which are on the
list can be used in this country. It means government knows
every encryption technology used in India
Common use Web-based applications and social media sites
such as WhatsApp, Facebook and Twitter were exempted
The encryption products being used in Internet-banking and
payment gateways under direction of the RBI And those
being used for e-commerce and password- based
transactions, are also exempted.
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What is encryption?
Encryption is the process of encoding
messages or information in such a way that
only authorized parties can read it.
For example: word "IAS" can become "JBT" in
encrypted form, if every letter is replaced by
next alphabet. Those who know how it is
encoded can only able to read "IAS"
correctly.

Uses of Encryption
All messaging services like WhatsApp, Viber,
Google Chat, Yahoo messenger use
encrypted services. Banks and e-commerce
sites also use encryption to protect financial
and private data including passwords.

How did encryption originate?


The Preamble to the draft policy states
that
encryption
technology
was
traditionally deployed most widely to
protect the confidentiality of military and
diplomatic communication. However, the
revolution in Internet technology,
expanded the scope of encryption to ecommerce and e-governance civilian
applications. This further led to the need
to protect privacy and increase the
security of the Internet and associated
information systems and develop policies
that favor the spread of encryption
worldwide.
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CRITICISM

Policy will affect almost all Internet users- a majority is not even aware that it is using encryption
technologies.
The biggest concern of this new policy is around the fact that users and organizations would on demand
need to store all communication in plain text for 90 days from the date of transaction and make it available
to law enforcement agencies. Most of the users in India do not know the meaning of plain text and in such a
case they can be held liable for not storing their encrypted data in plain text format. Thus, almost everyone
using the Internet will find themselves in violation of these rules.
In case of communication with any foreign entity, the primary responsibility of providing readable plaintext
along with the corresponding encrypted information shall rest on the business or citizen located in India.
Additionally, service providers located within and outside India, using encryption technology for providing
any type of services in India, must enter into an agreement with the government. This is seen as impractical
as there are many service providers around the world that use encryption. It would be highly unrealistic for
all of these to enter into an agreement with the Indian government.
Keeping a copy of the data will require huge storage and that will come at a cost.
There is a fear that the policy will start a new registration raj, now that all encryption technologies that can
be used in India will need to be certified and listed by the agencies concerned.
For companies that store private data it would mean storing passwords in plain text, which means private
and confidential data will remain unencrypted and hence vulnerable for 90 days.
The government proposed to prescribe the algorithms and key sizes for encryption. This implies government
control over all data.

WHY INDIA NEEDS ENCRYPTION POLICY?

To promote use of encryption for ensuring the security/


Examples from other countries
confidentiality of internet communication and transactions
To facilitate investigation of crimes and threats to national
USA -Computer Fraud and Abuse Act.
security in the age of sophisticated encryption technology
Australia -Defence Trade Control Act.
To promote research in encryption technology as it is
restricted and not available to India under Wassenaar agreement.
To build consumer confidence in retail and e-governance, encouraging more Indians to go online and
strengthening the countrys underdeveloped cybersecurity sector.
To check misuse of encryption.

WHAT SHOULD BE THE BROAD CONTOURS OF POLICY?

The policy should leave room for innovation in the field of encryption technology so that industry leaders
have incentives to innovate and offer consumers more secure information services.
The policy should goal for securing information through a minimum standard, instead of rendering it
insecure by dictating a standard that might get obsolete.
The policy must be sensitive to the need to promote cybersecurity research in India.
The process to retrieve encrypted data must be transparent and necessarily be backed by a court warrant
from a civil court, obtained through an open judicial hearing.
The policy should provide guidance on the use of information/ data within the country in a regulated manner
and ensure that our government agencies can access them for investigating serious issues related to
terrorism, national security and critical infrastructure.
The new policy would need to focus on enterprises such as e-commerce companies to ensure their
encryptions were good enough to secure customer's financial and personal data
The policy should prescribe technologies which are globally accepted. It should also talk about revising them
from time to time, which is very important as this is a dynamic space.
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WAY FORWARD
It is encouraging to see the government take steps towards securing information. Cybercrime and cyber terror
are real threats and governments need to devise solutions to fight them. The answer lies in developing the
capability to monitor and tackle such threats effectively and in a manner that strikes a reasonable balance
between privacy rights and security concerns.

FOREIGN FUNDING OF NGOS AND FCRA


Ministry of Home Affairs (MHA) recently cancelled the registration of Greenpeace India. The government took
this measure under the Foreign Contribution Regulation Act (FCRA).

FOREIGN CONTRIBUTION REGULATION ACT (FCRA )

The act seeks to regulate the acceptance and utilization of foreign contribution or foreign hospitality.
It prohibits "organisation of political nature" among others to accept foreign contributions
The central government has the power to prohibit from accepting foreign contribution or hospitality for
activities detrimental to the national interest or national security.

KEY CONCERNS WITH FCRA

Though the stated objective was to strengthen internal security, it addresses only the voluntary sector and
only foreign funding. This constitutes less than one per cent of gross inflow of foreign funds into India.
The FCRA registration process under the Bill confers a number of discretionary powers to the authorized
officer.
There are a number of terms in the Bill including, foreign source, foreign hospitality, and speculative
business that either lack clarity or are not defined.
It gives the central government powers to classify any organization as of "political nature" and prohibits its
funding but it does not provide any guidelines to define organizations of a political nature.
Many of the objectives of the Bill are met by other laws in force such as the Unlawful Activities Prevention
Act, 1967, the Prevention of Money Laundering Act, 2002, the Foreign Exchange Management Act, 1999, and
the Income Tax Act, 1961.

KEY CONCERNS WITH FOREIGN FUNDED NGOS

Recently, Home ministry found 748 organizations who receive foreign donations but have not filed their
return. Filing annual return is a mandatory procedure under the FCRA
In totality, only about 10 per cent of the over 22 lakh non-government organizations file their annual income
and expenditure statements, revealed by CBI
Many reports of misappropriation of funds by NGOs and their lack of transparency and accountability
Though political activism with foreign funds is prohibited under FCRA, some Foreign Funded NGOs have
been found actively taking part in political campaigns
Leading NGOs have been accused of mobilizing resistance against development projects (for instance, in the
power sector), allegedly at the behest of foreign agencies, thus damaging Indias growth potential
Claiming involvement in human rights initiatives or social empowerment, some organizations are
allegedly fronts for foreign-supported extremist and secessionist groups.
Allegations have been made of using foreign funds in religious conversion which is banned under FCRA.
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WORRIES OF NGOS

Registration for the FCRA was easy a few years ago, it has now become a lot more stringent.
Often, the larger NGOs do not face a problem when it comes to funding, but smaller ones does.
There are several NGOs that exist only on paper. These have given others a bad name too and so the funding
has dried up for many sectors

RECENT REFORMS TAKEN BY GOVERNMENT

Government replaced old rules with Foreign Contribution Regulation Rules 2015 to govern foreign
contributions received by NGOs
The Home Ministry had proposed making all dealings with NGOs online
The government has decided to host a website for such NGOs lacking wherewithal to create a website of
their own.
Banks have to inform Home Ministry about all foreign funds coming to an NGO account within 48 hours. This
is to enable monitoring use or misuse of foreign funds.
The ministry has reduced the number of forms to be filled in by the NGOs and now the registration, renewal
and prior permission forms have been combined into one single form
The government plans to streamline the audit and registration of non-governmental organizations (NGOs)
receiving foreign funding to ensure greater disintermediation of processes so that there is minimal contact
with the bureaucracy.
NGOs that do not receive any foreign funding in a particular fiscal year will not be required to file a certified
copy of the auditors report with the ministrys foreigners division.

WAY FORWARD

Sensitize all NGOs about compliance of FCRA act and rules when they receive funds from abroad.
All NGOs must respect the law of the land, maintain transparency and remain above board.
Agencies involved in creating engineered dissent just to influence the polity and economy of India should be
selectively handled.
Issues like misappropriation of funds, lack of transparency and accountability of NGOs need to be addressed
to bridge trust deficit between government and civil society

SHYAMA PRASAD MUKHERJI RURBAN MISSION


The government launched Shyama Prasad Mukherji Rurban Mission to drive economic, social and infrastructure
development in rural areas.

NEED

10

To transform rural India into engine of growth.


To generate opportunities in villages arresting mass exodus from villages in search of jobs and other facilities
that cities offer.

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SALIENT FEATURES OF THE RURBAN MISSION

To develop 300 Rurban clusters over next 3 years, across the country. It is cluster of smart villages
developed by provisioning of economic activities, developing skills & local entrepreneurship and providing
infrastructure amenities.
The State Governments would identify the clusters in accordance with the Framework for Implementation
prepared by the Ministry of Rural Development. The framework will be adopted using a scientific process of
cluster selection which involves an objective analysis of the demography, economy, tourism and pilgrimage
significance and transportation corridor impact.
The funding for Rurban Clusters will be through various schemes of the Government converged into the
cluster.
The mission will provide an additional funding support of upto 30 percent of the project cost per cluster as
Critical Gap Funding (CGF) as Central Share to enable development of such Rurban clusters.
Fourteen mandatory components has been identified under mission which include provision of basic
amenities, development of agricultural infrastructure, improving digital literacy and skill development, fully
equipped mobile health units and inter-village road connectivity.
The Mission also has an Innovation budget towards facilitating research, development and capacity building.
The scheme is expected achieve twin objectives of strengthening rural areas and disburdening the urban
areas hence leading to balanced regional development and growth of the country.

PRADHAN MANTRI KHANIJ KSHETRA KALYAN YOJANA(PMKKY)

The Ministry of Mines launched new programme to provide for the welfare of areas and people affected by
mining related operations, using the funds generated by District Mineral Foundations (DMFs).
It was the Observation of Justice A P Shah Commission in Odisha that the mighty mining companies with the
connivance of the concerned department violate mining related laws and indulge in illegal mining activities.
Also the mineral-rich areas are afflicted by a severe asymmetry of power between local communities and
the State-miner combine.

OBJECTIVES

To implement various developmental and welfare projects/programs in mining affected areas that
complement the existing ongoing schemes/projects of State and Central Government:
o To minimize/mitigate the adverse impacts, during and after mining, on the environment, health and
socio-economics of people in mining districts
o To ensure long-term sustainable livelihoods for the affected people in mining areas

SALIENT FEATURES

11

High priority areas like drinking water supply, health care, sanitation, education, skill development, women
and child care, welfare of aged and disabled people, skill development and environment conservation will
get at least 60 % share of the funds.
For creating a supportive and conducive living environment, balance funds will be spent on making roads,
bridges, railways, waterways projects, irrigation and alternative energy sources.
All areas directly affected by mining related operations as well as those areas indirectly affected by such
operations will be covered under PMKKKY.
Indirectly affected areas are those where negative impacts of mining in the form of deterioration of water,
soil and air quality, reduction in stream flows and depletion of ground water, congestion and pollution due
to mining operations etc. happen.
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This way, government is facilitating mainstreaming of the people from lower strata of society, tribals and
forest-dwellers who have no wherewithal and are affected the most from mining activities.
The Mines and Minerals (Development & Regulation) Amendment Act, 2015, mandated the setting up of
District Mineral Foundations (DMFs) in all districts in the country affected by mining related operations and
to protect the interests of tribal communities who have borne the costs of mining.
The miners have to contribute a fraction to DMF of total royalty payable to people. Using the funds
generated by this contribution, the DMFs are expected to implement the PMKKKY.

REFORMS REQUIRED FOR EFFECTIVE IMPLEMENTATION

The DMF's board and its executive committee should have representation from local communities.
There should be provision of conducting social audits by local people of projects carried out by DMFs.
There is need of building the capacities of affected communities providing them with monitoring powers on
existing mines, enabling informed participation in consent processes, and holding periodic district-level
consultations on the impacts of mining
The decision-making in mining projects must yield to greater public scrutiny, in particular of local
communities.
Public participation and local knowledge should be incorporated in institutional framework as they are
crucial to building an effective DMF.
The present structure is overly centralized, communities can neither plan nor authorize tasks, which they
believe the DMF should undertake.

REVISION OF NATIONAL REGISTER OF CITIZEN (1951) IN ASSAM


WHAT IS NRC, 1951 UPDATION?

National Register of Citizens, 1951 is a register prepared


after the conduct of the Census of 1951. These registers
covered each and every person enumerated during the
Census of 1951.
National Register of Citizens (NRC) updation means the
process of enlisting the names of citizens (or their
descendants) based on Electoral Rolls up to 1971, 1951
NRC, or in any one of the other admissible documents
issued up to 1971, which would prove their presence in
Assam on or before 1971.
An Indian citizen from another state also who moved to
Assam after the specified date is not eligible for inclusion in
the NRC though he can continue to vote.

Why in News?

It is first time being revised since 1951


and only in state of Assam.
It is expected to be completed by
March 2016
Entire process is overseen by Registrar
General of India and monitored by
three-member monitoring committee
by Supreme Court.

NEED OF NRC UPDATION

12

To comply with the demands in Assam Accord signed in 1985.


Assam has witnessed series of violence since 1970s on the issue of illegal migrants, mostly from Bangladesh.
There are demands to send back those who came after 1971. NRC updation is expected to help in solving
this issue.
It is the way to assimilate Bengali Muslims in Assamese society and only way to democratically solve this
problem.
It will provide proof of Indian citizenship to many people stereotyped as illegal migrants.
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The families which met with undue harassment by terming them illegal migrant can be stopped.
It is being updated as per Supreme Court orders.

ISSUES
1. WORRIES OF FINDING LEGACY DATA

Those who migrated between 1966 and 1971 were minor did not have names in any voter list before 1971.
Many Muslims who fled Assam during Partition because of riots returned later but could not be included
under NRC 1951.
Discrepancy in names in government documents, caused by misspelling and inclusion of nicknames in place
of actual names, since the names were recorded in Assamese. It would pose problem in identification and
authentication of legacy data leading to exclusion.
There is a great deal of unease over the fact the government has not made available all voter lists till 1971.
There has been concern from several indigenous tribes who may not have any pre-1971 documents to prove
their identity. The modalities for identifying them are yet to be worked out.

2. OPPOSITION TO NRC REVISION

There are writ petition pending before Supreme Court to declare cut-off year as 1951 instead of 1971.
There are question about validity of 1951 NRC data because it was incomplete.
Few supports NRC be updated on the basis of 2014 electoral roll.
Few feel this revision exercise should be carried out in entire country instead of being selective to Assam.

3. POST NRC REVISION

13

The treatment to those who will be left out of NRC revision will become a political issue.
As per Assam Accord, the foreigners who came post 1971 were to be evicted. However, it is much easier said
than done. From 1985 to 2012, the government has been able to send back only around 2500 out of over
55000 identified illegal migrants.
India needs repatriation treaty with Nepal and Bangladesh to push back those who will be excluded from
NRC.
There are claims for religion based differentiation of illegal migrants which may further complicate the
settlement process. Some political parties claim that the Hindus who came from Bangladesh are not
foreigners and should be given citizenship.
Since Bangladesh is not ready to take them back, lakhs of such Indian citizens, who have had their names on
the Indian electoral rolls for the past four decades, and who are in possession of Electoral Photo Identity
Card, would be rendered stateless.

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PROTECTION OF MANIPUR PEOPLE BILL, 2015


ISSUE
In Manipur violence has erupted in the tribal districts after the Manipur Legislative Assembly passed three bills
Protection of Manipur Peoples Bill, 2015, the Manipur Land Revenue & land Reforms (Seventh Amendment) Bill,
2015 and the Manipur Shop & Establishment (Second Amendment) Bill, 2015.

14

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BACKGROUND

The bills are the result of two months of protest by several organizations demanding imposition of Inner
Line Permit (ILP) in line with Arunachal Pradesh, Mizoram and Nagaland where the system is prevalent. The
dominant Mietei community of Manipur have been demanding the implementation of the permit to restrict
the entry of mainland Indians for years.

REASONS OF RECENT PROTESTS IN MANIPUR OVER THIS BILL

Tribal claim that the Manipur Land Revenue & land Reforms (Seventh Amendment) Bill, 2015 would ease the
process of buying land by migrant workers in the state. Manipur land reforms bill apparently brings all land
under the Manipur government which even includes tribal lands.
The tribal population among Kuki and Naga communities, whose land is protected under the 6th schedule on
account of being a tribal people, believe that its a ploy by the Meitei dominated Manipur government to
grab tribal land and marginalize their population. Tribal land in the state is governed by customary law and
can only be sold to another tribal.
Protection of Manipur Peoples Bill, 2015 puts the base year to identify non-indigenous people has been set
to 1951 whereas the tribal Kukis, Mizos and Chins which mostly reside in hilly areas say that the tribal
councils have not kept records prior to 1971 so it may result in their exclusion.
There is also an apprehension that the definition of Manipur People could be used in other Acts/Bills to
deny services, facilities and amenities to the people of Manipur, especially the tribal people, in seeking
government jobs, admission to schools, colleges or in case of State quota in medical and engineering
admissions.

INNER LINE PERMIT SYSTEM (ILPS)


The Inner Line Permit regulates the entry of non-domicile citizens into a restricted region. The British used this to
safeguard their revenue-generating regions in the Northeast against raiding tribal communities from the hills.
Today, ILP is seen as a way to protect the demographic, cultural, political and social integrity of the small tribal
populations in the hill states. At present, it is imposed in Arunachal Pradesh, Mizoram and Nagaland.

REASON FOR DEMAND OF ILP IN MANIPUR

Currently there is no restriction on the entry by the citizen of India. The increase in the population has
caused a panic in the mind of the people of Manipur.
People of Manipur see outsiders as a threat to employment opportunities and their culture. Currently many
economic activities such as shops, small businesses are being done by migrants which poses threat to
interests of locals there.
Many times Illegal migration leads to communal conflict and violence.

CRITICISMS OF ILPS

15

ILPS is against constitutional rights like Right to free movement across the country, right to equality, right to
reside peacefully within any part of the country.
ILPS will turn Manipur into more isolated and insulated. Thus it will lead to more insecurity and vulnerability
and integrity of the state.
Migration helps underdeveloped NE states to avail services like medical, educational facilities etc. from
outside states. Therefore People should demand a well-equipped Legislation to regulate the migration in
place of ILP.

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WAY FORWARD

The immediate need is to restore peace and normalcy in the State at the earliest possible, more importantly
to prevent the further loss of lives which can aggravate the already tense situation.
State government should have consulted the Hill Areas Committee before passing the Bills in order to clear
any misunderstanding. So there is a need of effective consultation among them.
Illegal Migration has more threats in terms of security of the state. Recent Bodo Muslim Clash in Assam was
due to the fear of being marginalized and land alienated. So, there is need to protect interests of various
ethnic groups in Manipur.

LAW COMMISSION RECOMMENDED CAPITAL PUNISHMENT ABOLITION

Law Commission presented its 262nd Report, titled The death penalty where it recommended abolition of
the death penalty for all crimes except terrorism-related offences and waging war against the state.

BACKGROUND

Debate on death penalty is not new and in 1931 itself a Bill was introduced to abolish death penalty in India.
In the Constituent Assembly also, Dr. B R Ambedkar had opposed death penalty.
Earlier Law Commission also in its 35th Report had favored retention of death penalty.

ARGUMENTS FOR ABOLITION OF DEATH PENALTY, AS GIVEN BY THE COMMISSION

There is no conclusive evidence to suggest that the death penalty has greater deterrent effect than life
imprisonment.
As per NCRB data, rate of decline in murder has coincided with a corresponding decline in the rate of
executions since 1992.
It is an excessive punishment for purpose of incapacitation.
The SC ruled that retribution has no Constitutional value (Shatrughan Chauhan case).
Death Penalty leaves no scope for reformation.
Public opinion have been given an important role to play.
Focusing on death penalty leads to neglect of the restorative and rehabilitative aspects of justice.
Diverts attention from problems ailing criminal justice system - poor investigation, crime prevention and
rights of victims of crime.
The SC itself has come to doubt the implementation of rarest of rare test (Bachan Singh case) due to rather
high rate of death penalty.
Fallibility of criminal justice system e.g.- Ravji Rao case.
The exercise of clemency power under article 72 and 161 have failed against acting as final safeguard against
miscarriage of justice.

REASONS FOR REVIEWING THE DEATH PENALTY

16

Earlier in 1967 the Law Commission rejected its abolition citing the size of the country and diversity of its
population across which law and order had to be maintained. India has undergone many changes since then
for e.g.: higher national wage, changes in development, the introduction of a new code of criminal
procedure in 1973 and the emergence of constitutional due process standards, calls for abolition of the
death penalty from political parties and judicial developments.
There is lack of resources in India justice system, an overstretched police force and ineffective prosecution as
among the reasons. As a result, the administration of capital punishment is vulnerable to misapplication.
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Thus most people who are executed are poor people as they cannot afford the expenses involved in
defending them against conviction.
India has retained capital punishment while 140 countries have abolished it in law or in practice.

ALSO IN NEWS
E-GOVERNANCE
MAHARASHTRA TO OFFER ESSENTIAL SERVICES ONLINE

Maharashtra become first state to offer essential services such as birth and death certificates, marriage
registration, domicile documents online.
It has enacted Right to Service act under which 224 services were guaranteed

RIGHT TO SERVICE ACT

It binds the state government and its agencies to deliver designated services in a stipulated time
Including Maharashtra, there are 20 states in India which have similar laws.
The first state to do so was Madhya Pradesh which enacted Right to Service Act in 2010.

WORLD BANK REPORT ON URBANIZATION IN SOUTH ASIA

17

South Asias urbanization is messy and hidden in that an estimated 130 million South Asians live in
informal settlements i.e. slums and sprawl.
Hidden urbanization is seen in the large share of Indias
Importance of Urbanization: Over 54% of
population that lives in settlements that possess urban
the world's population now lives in urban
characteristics but do not satisfy the criteria required to
areas, creating 80% of global GDP,
be officially classified as urban.
consuming two-thirds of global energy and
Urban population growth is not driven by rural to urban
accounting for 70% of greenhouse gas
migration as is commonly thought. Report says that 44%
emissions, according to World Bank data.
of the urban population growth that India experienced
Urbanization leads to concentration of
between 2001 and 2011 was due to natural increase and
economic activity, improves productivity
29.5% to the reclassification of rural settlements into
and spurs job creation, specifically in
census towns.
manufacturing and services.
The report called for initiatives at the policy and
institutional level to tap the economic potential it offers.
Focus has to be on reforms, they are required to address three fundamental urban governance deficits in:
1. Empowerment deficit - of local governing bodies - Inter-governmental fiscal relations must be improved
to address empowerment.
2. Resources deficit - practical ways must be identified to increase the resources available to local
governments to allow them to perform their mandated functions.
3. Accountability deficit - mechanisms must be strengthened to hold local governments accountable for
their actions.
To tackle messy urbanization and bring about lasting improvements in both prosperity and livability, policies
are also required for
1. to improve the ways in which cities are connected and planned,
2. working of land and housing markets, and
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3. Citys resilience to natural disasters and the effect of climate change.


The challenge will be to make the transition inclusive, providing opportunities and jobs to youth, especially
women, and supported by efficient service infrastructure. If managed well, urbanization can lead to sustainable
growth.
Questions:
1. The significance of counter-urbanization in the improvement of metropolitan cities in India. UPSC Paper I
2011.
2. Examine the status of urbanization among the states in India and bring out spatial inequalities. UPSC Paper I
2009

SPECIAL COURT BILL PASSED BY ANDHRA PRADESH ASSEMBLY


The Andhra Pradesh Legislative Assembly passed Special Courts Bill, 2015 for the constitution of special courts.

IMPORTANT PROVISIONS OF BILL

To facilitate time bound disposal of corruption cases against public servants by constituting Special Courts in
Andhra Pradesh.
Enable state to recover assets acquired illegally by public servants.
Utilization of recovered wealth for the development of the State and for public good and purpose.
The public servant includes both peoples representative and government officers. Earlier, Bihar and Odisha
brought in similar laws to recover ill-gotten properties and used them for public purpose.

SC PORTAL ON PENDENCY OF CASES


The Supreme Court of India, recently inaugurated the public access portal of National Judicial Data Grid (NJDG).

ABOUT PORTAL

18

The webpage ecourts.gov.in/services will give consolidated figures of pending cases in District Judiciary
across the country.
It will also disseminate national and State,
Pendency of Cases in Judiciary
district and court wise information.
It would also separately provide data and
Nearly three crore cases pending in Indian courts.
details of cases filed by senior citizen and
The CJI recently set deadline of five years to end
women.
trial of all the pending cases.
The pendency statistics would be updated by
district court complexes on a daily basis.
The initiative is to promote transparency and access of information for all the stakeholders of the justice
delivery system.

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ABOUT NATIONAL JUDICIAL DATA GRID

The National Judicial Data Grid (NJDG) is a part of the on-going e-Courts Integrated Mission Mode Project to
transform justice delivery by ICT enablement of courts.
NJDG will work as a monitoring tool to identify, manage & reduce pendency of cases.
It will also help in providing timely inputs for making policy decisions to reduce delay and arrears in the
system
It will facilitate better monitoring of court performance and systemic bottlenecks, and, thus, facilitate better
resource management.
The NJDG will cover all categories of cases, including those relating to juvenile justice system.

STEPS TAKEN BY THE CENTRAL GOVERNMENT FOR RELIEF TO


FARMERS IN VIEW OF DEFICIT MONSOON

Allocation of additional days 50 days of work under MGNREGA to households in drought affected areas
Diesel Subsidy Scheme for farmers in affected areas
Enhancement of ceiling on Seed subsidy in affected areas
Farmers in the drought affected districts/ blocks will be provided monitory assistance for taking up
appropriate combination of interventions to save horticulture crops, for production of additional fodder.
States have been advised to keep aside about 5 to 10% of fund allocated under Rashtriya Krishi Vikas
Yojana (RKVY) for undertaking appropriate interventions to minimize the advance impact of an aberrant
monsoon on the agriculture sector.

SUGGESTIONS

Cut the fat layer of intermediaries between farmers and the bulk or industrial consumers of farm produce.
India needs to invest more in developing rural infrastructure- roads connecting villages to market towns and
post-harvest crop storage infrastructure.
Water scarcity both due to poor rains and depleted aquifersis now a reality in large parts of India. So
investment in drought resistant varieties, better irrigation techniques like drip irrigation, sprinkler irrigation
is required.

WATER POLICY IN INDIA


The renowned water policy expert Shri Ramaswamy R. Iyer died this month. He played key role in drafting
India's first National Water Policy in 1987. India adopted first National water Policy in 1987 and subsequently
updated it in 2002 and 2012.

NATIONAL WATER POLICY 2012: SALIENT FEATURES

19

National Framework Law: It must provide general principles governing relations among the Centre, the
States and the local governing bodies and a comprehensive legislation for optimum development of
interstate rivers and river valleys.
Uses of Water: Optimum utilization of water, to ensure access to a minimum quantity of potable water to all
its citizens, Community based water management should be institutionalized and strengthened etc.
Adaptation to Climate Change: Special impetus should be given towards mitigation at micro level by
enhancing the capabilities of community to adopt climate resilient technological options.
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Enhancing Water Available for Use.


Demand Management and Water Use Efficiency: Water footprints, and water auditing should be developed
to promote and incentivize efficient use of water.
Water Pricing: Pricing of water should ensure its efficient use and reward conservation.
Conservation of river corridors, water bodies and infrastructure.
Management of flood and drought.
Water supply and sanitation.
Institutional Arrangements: National level forum to deliberate and evolve consensus, co-operation and
reconciliation amongst party States.
Trans-boundary River: Efforts should be made to enter into international agreements with neighbouring
countries for exchange of hydrological data of international rivers on near real time basis.
Database and information system: National Water Informatics Center should be established to collect,
collate and process hydrologic data regularly from all over the country.
Research and Training needs: An autonomous center for research in water policy should also be established.

INDIAN RAILWAYS - SAFETY AND SECURITY


The plan has come amid an increase in number of railway accidents in recent months.

The Railways will launch a zero-accident mission envisaging renewal of tracks, more railway bridges, better
signaling and rolling out of accident-proof coaches and engines.
It is expected that once implement fully, the accident rate will go down and speeds will improve, facilities
will improve, quality of service will go up and revenue will increase and customer experience will go up
significantly.
With this objective in mind, the Ministry has planned an investment of Rs 8.5 lakh crore in the next five
years.
One of the option is to do prudential borrowing from institutions such as the LIC, the World Bank and other
multilateral agencies, which would be repaid in the next 30-40 years through an increase in revenues.
Also Railway is working on increasing the transparency and efficiency of the Railways by bringing in a change
in the accounting system, which was key to attracting investments. Moving to commercial accounting was
one of the key recommendations of the Bibek Debroy panel on railway restructuring.

SEVENTH PAY COMMISSION


The commission, headed by Justice A. K. Mathur was formed in February 2014. The committee's
recommendations are scheduled to take effect from 1 January, 2016.

20

The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its
employees and often these are adopted by states after some modifications.
Nearly 48 lakh central government employees and 55 lakh pensioners will be befitted by the pay
commission.
Financial burden Seventh pay commission will definitely bring a toll on the exchequer. The reason being
Government has to manage OROP's expenditures too. Experts say that Central government's salary bill will
rise by 9.56% to Rs. 1,00,619 crore after Seventh pay commission will come into effect.
According to a report, as a result of the recommendations of the Sixth Pay Commission, pay and allowances
of Union government employees became more than doubled between 2007-08 and 2011 from Rs.74,647
crore to Rs. 166,792 crore.

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2. SOCIAL ISSUES
FRAMEWORK FOR RANKING INDIAN INSTITUTES
The Union Ministry of HRD launched National Institutional Ranking Framework (NIRF) for educational
institutions.

WHAT IS NIRF?

This framework outlines a methodology to rank institutions across the country.


Although the Ranking Frameworks are similar, the exact methodologies are domain specific. Ranking
methods have been worked out for engineering and management institutions, while those for other
domains will be announced soon.
The framework follows an Indian approach which considers India-centric parameters like diversity and
inclusiveness apart from excellence in teaching learning and research.
The parameters are under the five broad headings
1. Teaching learning and resources- these parameters are related to the core activities of any place of
learning. These lay emphasis on measuring numbers and quality of faculty, library and lab resources and
general facilities for development of
young persons.
2. Research, consulting and collaborative
performance- These parameters attempt
to measure the quantity and quality of
research output as seen through
international data bases, IPR generation
and interface with industry and fellow
professionals.
3. Graduation outcomes- is parameter
forms the ultimate test of the
effectiveness
of
the
core
teaching/learning activity, and measures
the student graduation rate and their
success in finding appropriate placement in industry and Government or taking up higher studies.
4. Outreach and Inclusivity- the Ranking framework lays special emphasis on representation of women and
socially challenged persons in student and/or faculty populations, and also on outreach activities of the
institution.
5. Perception- The ranking methodology gives a significant importance to the perception of the institutes
by its stakeholders. This will be accomplished through Stakeholder Surveys.

IMPORTANCE OF NIRF

21

It would enable parents, students, teachers, educational institutions and other stakeholders to rank
institutions on the basis of a set of objective parameters and a transparent process.
It will facilitate a level playing field in ranking for institutions
The institutions which have been working in languages other than English and excelled relatively in the
recent past will be greatly benefited.
It will give Indian institutions a competitive platform free of any international bias.

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WHY WE NEED IT?

International rankings do not entirely suit Indian realities.


International ranking agencies does not consider inclusivity of our institutions and the body of work in
regional languages.
To provide benchmarks to measure the productivity of Indian universities and creating a sense of movement
and competition among them.
To give new institutions a level playing field with older institutions
To promote social inclusion in the institutes.

CHALLENGES WITH RANKINGS: INDIAN CONTEXT

The lack of data on many aspects of higher education. Without reliable data on all of the aspects of ranking
from all of the universities included, the rankings will have limited value.
The ranking should not be limited to public universities only else ranking will have limited value
A few of the private institutions are innovative and may score well, although most will not. These universities
may have less data available and some may be reluctant to report accurate statistics.
The teacher/student ratio usually used in ranking do not adequately measure actual teaching quality
Most rankings count articles, citation rates in internationally respected journals. However, due to lack of
sufficient internationally recognized Indian journals, there is no accurate way of evaluating either the scope
or the influence of the publications of Indian academics.

MATERNAL AND CHILD HEALTH


RAPID SURVEY ON CHILDREN (2013 - 14)
IMPORTANT FINDINGS

22

No State reported an increase in the proportion of


children underweight or stunted, a significant reversal
from past trends.
All States have performed poorly in reducing the
number of underweight adolescent girls.
At the national level, stunting is higher in rural areas
(41.7 per cent) than in urban areas (32.1 per cent), as
is the case for underweight children.
Tamil Nadu, West Bengal, Uttarakhand and Tripura
are the only States which have reduced the proportion
of underweight adolescent girls
Kerala remains the best performing State in the
number of child stunting cases
Manipur and Mizoram have the lowest numbers of
underweight children.
Uttar Pradesh still has the highest levels of child
stunting, with over 50 per cent of the children under
the age of five underdeveloped
Jharkhand has the highest number of underweight
children under the age of five
Among the developed States, Gujarat is the only one
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to perform worse than the national average in reducing the numbers of child stunting cases and
underweight children.
However, The Ministry of Statistics and Programme Implementation (MoSPI) has raised concerns on the
sampling design and methodology adopted for UNICEFs Rapid Survey on Children (RSOC).
ANALYSIS

The proportion of institutional deliveries among recent births shot up and the proportion attended by a
skilled provider also rose. It reflects the impacts of various government schemes including Janani Suraksha
Yojana.
However, the maternal care has not seen much improvement. For instance, the proportion of pregnant
women who had at least three antenatal checkups was not much higher than in 2005-06. Similarly, the
proportion who consumed Iron and Folic Acid tablets for at least 90 days was very low.
In some States, many women deliver in health centers for the sake of cash incentives, with very limited real
benefits in terms of natal or postnatal care.
The proportion of children with a vaccination has seen substantial progress which is an achievement after an
alarming phase of near stagnation in routine immunization.
The improvement in immunization can be attributed to works by Accredited Social Health Activists (ASHAs),
who are now actively involved in immunisation programmes along with Anganwadi workers and Auxiliary
Nurse Midwives (ANMs).
The proportion of undernourished children declined substantially as compared to the preceding period,
when child undernutrition was declining at a glacial pace. Yet, much faster progress is required if India is to
overcome this colossal problem in a reasonable period of time.
There are worrying signs of stagnation in some important fields such as
o Access to safe drinking water - close to 10 per cent of households are still deprived of it
o Slow progress of sanitation - At present rate, it will take at least another 40 years for India to eliminate
open defecation.

INDIA AND MDG


WHAT IS MDG?

India has made remarkable progress in achieving the MDG health-related targets. The country has been able
to substantially reduce its under-five mortality rate from 126 deaths per 1,000 live births in 1990 to 53
deaths per 1,000 live births in 2013.
Mart initiatives, such as the Call to Action, Indias Newborn Action Plan and the Integrated Action Plan for
Pneumonia and Diarrhoea, have paid tremendous health dividends.
But there is still a long way to go.
Of the nearly six million children under the age of five who die from preventable causes every year around
the world, 21 per cent are from India. Many of these children die because of malnutrition and infectious
diseases.

WHAT WE NEED TO DO?

23

Adopt comprehensive and integrated approach to child health, one that focuses on nutrition, safe water,
improved sanitation, micronutrient supplements and vaccination against preventable pneumonia and
diarrhoea.
India will have to focus on its most vulnerable children children who are poor, live in rural areas or face
discrimination because of ethnicity, caste, gender or disability.
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The multilateral institutions such as GAVI, a global vaccine alliance, the World Health Organization and
UNICEF should complement the governments efforts by providing vaccine supplies in under-served areas,
and strengthening health systems, planning, monitoring, research and logistics.
The Indian government must seek solutions to barriers that prevent children from receiving vaccinations.

VACCINE BARRIERS:

These barriers include


o Gender disparities
o Procurement and delivery challenges
o Too few front line health workers and
o Lack of information or misinformation on the benefits of immunization.

RESERVATION IN INDIA
WHY IN NEWS?
The Gujarat witnessed statewide mobilization of Patel community demanding quota for themselves and reforms
in reservation policy of India.

CONSTITUTIONAL PROVISIONS

Article 15(3) - State can make special provision for women and children
Article 15(4) - State can make special provision for the advancement of any socially and educationally
backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes
Article 16(4) - State can make provision for the reservation of appointments or posts in favour of any
backward class of citizens
Article 46 - To promote the educational and economic interests of SCs, STs, and other weaker sections of
society

IMPORTANT SUPREME COURT JUDGMENTS

Mandal Case: Under this, Supreme Court restricted total reserved quota up to 50 percent and excluded
advanced section in other backward castes from benefits of reservation
Justice O. Chinnappa Reddy in his 1985 judgment: efficiency cannot be used as a camouflage to let the
upper classes take advantage of the backward classes in its name and to monopolise the services,
particularly the higher posts and the professional institutions.
Jat Reservation: The Supreme Court ruled that caste and historical injustice cannot blind a state in
according backward status to a community and that new emerging groups such as transgenders must be
identified for quota benefits.

NEED OF RESERVATION IN INDIA

24

Social empowerment of disadvantaged section of society


Reduce discrimination by providing educational and employment opportunities

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ISSUES WITH RESERVATION POLICY OF INDIA

Stagnant: The reservation policy which was initiated as a temporary provision (for 10 years) for Scheduled
Castes(SC) and Scheduled Tribes (ST) in our Constitution in 1950, has expanded its coverage and has now
become an almost a permanent feature.
The existing reservation policy has failed to assimilate lowest castes/tribes within the mainstream economy
and society.
Political Mobilization: Over the years, political parties has utilized caste-based reservation as vote bank
politics for their electoral gain
Inter-caste conflicts and tensions: The tool of reservation has failed miserably in removing caste differences
and has promoted the caste divide and caste conflicts.
Dissatisfaction: the communities excluded from reservations harbor animosity and prejudice against the
castes included in the reservation category.
Class within Castes: The creamy layer of reserved category has benefited most leaving mostly on the fringes
devoid of any benefits and poor.
The poor among general categories are resentful and frustrated, and tend to blame reservations for all their
problems.

REFORMS REQUIRED

Better Identification: New yardsticks need to be developed for the identification of backward group instead
of solely deciding on the basis of caste. It should include social and economic criteria.
Dis-reservation: Families of public officials of a certain rank IAS, IPS, other Central and State civil services,
present or former MLAs, MPs, other senior politicians certain high income professionals like physicians,
chartered accountants, managers above a certain rank in the private sector, and businessmen and others
above a certain income should be dis-reserved.
Self-proclaimed backwardness: The perception of a self-proclaimed socially backward class of citizens
cannot be a constitutionally permissible yardstick for determination of backwardness.
Support to poor: No child with ability and desire should ever be denied opportunities for higher education
on account of poverty or birth. Scholarships, free tuition, soft loans and other mechanisms must be
strengthened.
Develop Capabilities: Apart from providing admission to colleges and jobs, capabilities of the deprived and
excluded section should also be developed.
Assimilation: The benefits should flow to the vast majority of underprivileged children from deprived castes;
not restricted to few elites.

SHOULD WE MOVE AWAY FROM CASTE-BASED RESERVATION?

Caste-based reservation has not been completely successful in bringing up the weakest member of the
group.
It prevents us from transcending caste and causes resentment against the beneficiary group, and existing
prejudices and stereotypes against the group are reinforced.

EVALUATE EVIDENCE-BASED APPROACH FOR AFFIRMATIVE ACTION


Under Evidence based approach, the policy framework is explicitly linked to empirical information relating to
disadvantage. It requires collection, maintenance and analysis of data of all citizens. It may include social as well
as economic indicators. Its merits and demerits are:

25

Better Identification: The individuals genuinely in need of support or preference can be identified cutting
across the caste boundaries.

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The major advantage of such an approach is that it highlights the fundamental reasons why affirmative
action is being undertaken namely, various sorts of social and economic disadvantage.
Reduces caste-based politics: It helps to de-essentialise identity markers like caste or religion.
Reduce inter-caste conflicts: It provides a rational explanation why specific castes or communities are
entitled to compensatory discrimination.
Assimilation: It might also help target the benefits better by prioritizing the weakest members of a weak
group.
Disadvantage: The only downside is that such approaches become data dependent, and are vulnerable to
the failings of the data sources, and to the fallacy of data.

WAY FORWARD
India has changed a lot since the reservation policy was introduced. The deficiency of data and technology has
made then government to adopt simple approach of caste-based reservation. However, with the availability of
sufficient data through census and real time updation technologies using Aadhaar number, evidence based
approach could be utilized. It will help in better targeting and thus providing benefits to real beneficiary.

COUNTRIES WITH GENDER PARITY ARE AT ECONOMIC ADVANTAGE


The World Bank's latest Women, Business and the Law report shows that countries whose laws discriminate
against women and do not promote gender equality suffer economically.

Income Loss to economy: The gender gaps in womens entrepreneurship and labor force participation
account for income losses in country. These are losses that many countries cant afford, particularly those
facing high levels of poverty. The estimated income losses for South Asia is 19 percent whereas it is 10
percent in Europe.
Women Empowerment: When women are allowed to work in a profession of their choice, when they have
access to financial services and when they are protected, by law, from domestic violence, they are not only
economically empowered, they also live longer.
Benefits to private firms: In private firms where women had greater representation on boards, those
organisations were less likely to be hit by scandals like bribery or fraud.
Poverty and gender inequality: The link between the fight against poverty and gender equality is strong,
which is why we work with many countries to tackle gender-based barriers.

In India, inheritance law reform has provided greater economic freedom to women. Women used their
increased savings to spend more money on their daughters education.

26

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3. INTERNAL SECURITY
GUJARAT CONTROL OF TERRORISM AND ORGANIZED CRIME BILL
(GCTOC)
The Gujarat Control of Terrorism and Organized Crime
(GCTOC) Bill was passed by the Gujarat Legislative
Assembly on March 31, 2015. The earlier three versions
have been rejected by the President of India in 2004,
2008 and 2009 respectively. The Bill will now be sent for
presidential assent.

Earlier presidential assent was denied mainly


because of two provisions in the Bill -admissibility
of confession before police as evidence and police
empowerment to carry out phone surveillance.
Union Government has diluted the provisions
regarding phone surveillance. Now the Union home secretary is final authority on phone-tapping requests
while bill proposed that state home secretary should be final authority.
The other sticking point in the Bill - admissibility of evidence collected through confessions made before an
SP rank investigating officer, in a court of law - has been accepted by the Centre as such provisions also exist
in the Maharashtra Control of Organized Crime Act (MCOCA) of 1999.

CRITICISMS

27

Critics say that GCTOC is similar to draconian anti-terror laws


Difference between MCOCA and
such as the TADA and the POTA. Both were considered failed
GCTOC
experiments because they led to gross abuse and promoted
Both have almost similar provisions.
police tyranny.
The only difference is about bail. The
The provision about confessions made to law enforcement by
MCOCA allows for the court to grant
an accused can be grossly abused, as confessions can be
bail while the GUJTOC seems to be
extracted by the police under torture.
inspired from the now repealed
Prevention of Terrorism Act (POTA).
It allows the custody of an accused for 180 days rather than
the 90 days provided under normal law.
May lead to abuse of the law in order to settle political scores especially using ruling party-driven law
enforcement.
Authorization of interception of telephonic conversations and their admissibility in evidence. This will
promote snooping and can be misused.
This makes the government immune from any legal action for anything which is in good faith done or
intended to be done in pursuance of this Act. There is anxiety that the Executive will exploit this section and
become less accountable to the law for its commissions and omissions.
The most troubling aspect of MCOCA has been the way that It has been used as a charge in all manner of
cases ranging from real estate deals, prostitution and match-fixing, as the police seek to stack the odds in
their favour in order to secure a conviction.
The above practice has repeatedly met with censure from the courts and there is no guarantee that GCTOC
wont go down the same path.

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CAUSES/NEED OF SUCH ACTS

The common thread running through all these controversial pieces of legislation is the notion that regular
process, as outlined by the Code of Criminal Procedure, is not enough to deal with a changed internal
security situation.
Being situated on the border with Pakistan, Gujarat has every reason to protect itself as well as it can, and
the new piece of legislation fits into the scheme of things in the State.
Organized criminal syndicates make common cause with terrorist gangs and foster macro terrorism, which
extends beyond national boundaries. There is a reason to believe that organized criminal syndicates are
operating in the state and there is immediate need to curb their activities.

SUGGESTIONS

To make a claim or take the position that an anti-terror law such as the one Gujarat is now steering will
eliminate terror would be dishonest and hypocritical. At the same time, to portray GCTOC as being a tool to
serve the ruling dispensations political ends would also be unfair.
The long term solution could be to focus on better resources and training for investigators who can continue
to work under the existing Code of Criminal Procedure, which is already comprehensive in scope.

Questions:
What, in your opinion, are the causes of terrorism? Suggest suitable measures to deal with the threat of
terrorism in India. UPSC Paper I 2008

NATIONAL CENTER OF EXCELLENCE IN TECHNOLOGY FOR INTERNAL


SECURITY (NCETIS)
Need: Presently India do not have a center with long term and focused approach to develop technologies to
meet internal security challenges for Police and Paramilitary forces. The NCETIS will act as national nodal facility,
to cater to the requirements of homeland/internal security technology requirements and technologies for
disaster management.

FUNCTIONS

28

The NCETIS is expected to work in the electronic technology areas, of homeland/internal security, specifically
for Police and Paramilitary forces and disaster management, covering the broad areas such as:
o Communication Systems
o Video Surveillance and Analysis
o Ground Penetration Radar (GPR) for Landmine detection
o Unmanned Vehicles
o Cyber and Data Security
o Biometric Applications
o Handheld Detectors for Explosives, Landmines, Chemical and Biological Warfare
o Thermal Imaging
It will focus on handling modern warfare techniques, enhancing intelligence services and improving internal
security, in the face of rising terror threats.

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It is working on detectors for land mines, cyber security, cryptology, video surveillance, image processing,
monitoring of unmanned vehicles and biometric security.
It will discuss security gaps with various agencies - such as Mumbai police, CRPF, CISF - and conduct research
to provide the required technology.

REGULATION OF EXPLOSIVES IN INDIA


REGULATING ACTS/RULES

Why in News?

Explosives Act, 1884


Inflammable Substances Act, 1952
Explosives Rules, 2008

ISSUES RELATED TO REGULATION

The sale and transport of explosive materials is regulated by the


Petroleum and Explosives Safety Organization (PESO), under the
Union Commerce and Industry Ministry.
This centralized regulation raises question about the ability of a
Central agency to monitor all explosive substances everywhere in the
country.
The agency is still to computerize its operation which is very crucial
for efficient regulation
A system is yet to be worked out for a real-time tracing and tracking
programme enabling police and district collector to monitor sale and
purchase of explosive in their area.

Recently, illegally stored gelatin


sticks exploded in Madhya
Pradesh, claiming about hundreds
of lives and raising questions
about regulation of the sale,
purchase
and
subsequent
monitoring of explosive materials
across the country.
What is Gelatin Sticks?
It is a blasting material invented
by Alfred Nobel (who also
invented Dynamite). It cannot
explode without detonator and
thus, it can be stored safely.

WAY FORWARD
There is need of decentralized process of regulation by allowing States to make their own laws to regulate
explosives. Also, there should be an Explosives Control Bureau, like the Narcotics Control Bureau for effective
monitoring and enforcement of laws.

COLOMBO PLAN DRUG ADVISORY PROGRAMME

29

DAP is the only regional intergovernmental programme exclusively aimed at capacity building for drug
demand reduction in the Asia and Pacific Region.
During the last three decades the DAP has assisted member counties in initiating the process of policy
evolution, in finding appropriate solutions on a bilateral and/or multi-lateral basis and in encouraging
national efforts among member countries towards drug demand reduction.
Since its inception, DAP has focused on responding to the changing needs of member countries that face
multi-faceted problems in regards to illicit drug production, trafficking and abuse. DAP has embarked on
several innovative strategies in six arms.
CPDAP Networks:
o Prevention
o Youth Treatment and Rehabilitation
o Special Services for Children
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o Supply Reduction and Law Enforcement


o Curriculum Development and Credentialing
The services in these networks are also extended to non-member countries, keeping up with the Colombo
Plan mandate of self-help and mutual-help in development.

SOUTH ASIAN SUB-REGIONAL DRUG FOCAL POINT MEETING

The Narcotics Control Bureau is organizing the Sub-Regional Drug Focal Point Meeting and Drug Demand
Reduction (DDR) Expert Group Consultation, South Asia under the Colombo Plan Drug Advisory Programme
(CPDAP).
It will have participation of delegates from various participating countries namely Afghanistan, Bangladesh,
Bhutan, India, Iran, Maldives, Nepal, Sri Lanka and observer countries namely USA and Myanmar.
The main objective of the meeting is to review the progress of the Drug Demand and Supply Reduction
activities in the region.
This conference will facilitate exchange of views on technical aspects of the drug cooperation programme
and it aims at achieving effectiveness and efficiency.
It will also address the needs of the member states and help formulate a uniform strategic plan to address
drug use and abuse related problems.

GOVERNMENT - INTERNET COMPANIES COOPERATION TO MANAGE


SECURITY CRISES

30

The effective cooperation between Government and Internet companies could help government in
controlling situations of security crisis like communal riots.
In the absence of cooperation government. has to take excessive measures like shutting off mobile data
services. It was recently witnessed in Gujrat, J&K and Manipur to maintain law and order situation
By these actions, lives of ordinary users and businesses is affected.
But the main challenge is that Data-mining giants based outside the country Google, Twitter, Facebook
and WhatsApp do not always cooperate with law enforcement authorities during a security crisis.
So there is a need that foreign Internet companies cooperate with governments during security crises. The
cooperation is in public interests. Without a sustained dialogue between both parties, the government will
continue to deploy ham-handed measures (as in Gujarat) to meet its ends.

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4. SCIENCE & TECHNOLOGY


SPACE
ASTROSAT
Astrosat is India's first dedicated astronomy observatory to study distant celestial object. ASTROSAT is seen as a
smaller version of NASA's Hubble Space Telescope. The Space Observatory will be able to detect objects in
multiple wavelengths such as X-rays and UV, but with far lower precision than Hubble.
Features of ASTROSAT:

LAUNCH VEHICLE

It was launched by PSLV-C30 along with six tiny


satellites from foreign countries including US.
This is the first time that an Indian rocket launched
satellites from the US.
30th consecutive successful launch of PSLV.

Till now, Indian scientists had to rely on the telescopes


and platforms operated by NASA and the European
Space Agency to study radiation bands that carry
information about neutron stars, newly born or
exploding stars and the spiraling hot gases around
black holes. Now, Astrosat's telescope can help them
in their study and search for answers

MAIN SCIENTIFIC FOCUS ON

Uniqueness: With the help of its six payloads,


it enables simultaneous multi-wavelength
observations of various astronomical objects
with a single satellite.
Payloads: 4 X-ray payloads, 1 UV telescope
and charge particle monitor
178 cr, 1513 Kg satellite will be placed in 650
kms near equatorial orbit.
Projected life term: - 5-years.
Joint collaboration between ISRO, TIFR,
BAARC, Indian Institute of Astrophysics,
Bengaluru and the Inter - University Centre for
Astronomy and Astrophysics, (IUCCA), Pune.

Features of Europa

Understand high energy processes in binary star


systems containing neutron stars and black holes.
Estimate magnetic fields of neutron stars.
Study star birth regions and high energy processes
in star systems lying beyond our galaxy.
Detect new briefly bright X-ray sources in the sky.
Perform a limited deep field survey of the
Universe in the ultraviolet region.

Jupiters Icy satellite


The most likely candidate for hosting life in our
solar system after the Blue Marble.
According to past research this icy world has a
huge sub-surface ocean that is twice as deep as
the deepest spot in Earth's oceans.

SIGNIFICANCE

31

An open observatory (after one year) with proposal driven research approach.
Will provide useful data and big boost for the countrys astronomy community.
It will put India in an elite orbit with the U.S., Europe, Russia and Japan.

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COMPONENTS OF ASTROSAT

FIVE PAYLOADS

LAPAN A2/ORARI
An Indonesian satellite launched by India, along with ASTROSAT onboard PSLV C30.
Functions and Features

Multi-Spectral remote sensing satellite


To monitor land-use, natural resource and in disaster mitigation, ship movements, sea resources and
fishing explorations.
Successor to LAPAN A1 (also launched by India in 2007)

NASAS SERVIR-MEKONG PROJECT


Launched by National Aeronautics and Space Administration (NASA) and the US Agency for International
Development (USAID)
Countries that will be benefitted: Cambodia, Laos, Myanmar, Thailand and Vietnam
FUNCTIONS AND SIGNIFICANCE

32

It will provide timely weather, climate and other Earth related data.
It will enable to better address issues of natural resource and disaster management.
It will strengthen regional environmental monitoring.
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The partnership chiefly is intended to support climate resilience studies, providing early warning of dramatic
changes in regional water, food security, weather and climate, and land cover and land use of the entire
Mekong River Basin.

ISRO CONFERRED GANDHI PEACE PRIZE 2014


WHY ISRO CHOSEN:
The ISRO has upheld its mission of bringing space to the service of the common man and in the service of the
nation.
ISRO through space technology has immensely helped in:

Improving the mapping of agricultural land and water-shed


areas.
Providing advisories to fishing communities.
Creating data base of heritage sites.
Improving disaster management support.
Policy planning, monitoring and Implementation by
gathering relevant data from remote sensing satellites.
Communication and connectivity.

Who gets this prize?


This is an annual award given to individuals
and institutions for their contributions
towards social, economic and political
transformation through non-violence and
other Gandhian methods.
It is open to all persons regardless of
nationality, race, creed or sex.

These contributions have led to social, economic and political transformation through non-violence.

EUROPA CLIPPER MISSION

Nasa is planning to send a lander on the Europa to find signs of life.


The probe will find Europa's composition, the nature of its sub-surface ocean, as well as its ability to host life.
The European Space Agency's Jupiter Icy Moon Explorer (JUICE) is a mission to Europa that is due to launch
in 2022.

MISSION ON MARS (MANGALYAAN) A TECHNOLOGY DEMONSTRATOR


MISSION

Marking India's first venture into the interplanetary space, MOM is aimed to explore and observe Mars
surface features, morphology, mineralogy and the Martian atmosphere. Further, a specific search for
methane in the Martian atmosphere will provide information about the possibility or the past existence of
life on the planet.

FEATURES

33

It is launched by using a Polar Satellite Launch Vehicle (PSLV) rocket C25.


It costs 450 crore, weighed 1350 kg, travelled for 300 days covered 65 crore km @ 7Rs/km
It Carried 5 instruments
o Lyman-Alpha Photometer (LAP),
o Methane Sensor for Mars (MSM)),
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Particle environment studies (Mars Exospheric Neutral Composition Analyser (MENCA)),


Surface imaging studies (Thermal Infrared Imaging Spectrometer (TIS),
Mars Colour Camera (MCC)

KEY FINDINGS
The data filtering in from the payloads is yet to be fully analyzed and published by scientist involved. Initial
outcomes include:

Water on Mars
Increasing possibility of life on Mars.
High quality images published in Mars Atlas.

SIGNIFICANCE OF THE MISSION

Cost effectiveness: Technological benefits: The technology used in this


Why in news:
mission has potential application in weather forecast, computer tech,
health-medicine etc. in future
one
year
Completed
successfully on 24 September.
Success in first attempt:
Economic Benefits: As ISRO establishes reputation, gets more contracts
from foreign countries and more foreign exchange.
Effects on foreign policy: It can be used as a tool to exercise soft power by sending space missions of third
world countries and SAARC countries.
China and India recently signed an agreement on peaceful uses of outer space. So, many countries are now
wanting to partner in ISROs success.
Above all, such an achievement works as an inspiration and catalyst for innovation in the country and
bringing more youth into the field of science.

CRITICISMS

Wastage of resources, given the socio economic condition of the country.


Highly elliptical Orbit: Not ideal for clear observation of a planet.
Me too mission: Due to limited payload capability of the PSLV, the mission lacked significantly science
mission than one already performed by other Mars probe.

Should money be spent on such ventures?

34

Humans are driven to explore the unknown, discover new worlds, push the boundaries of our scientific and
technical limits, and then push further. The intangible desire to explore and challenge the boundaries of
what we know and where we have been has provided benefits to our society for centuries.

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PMS ADDRESS AT SPECIAL SESSION OF NATIONAL MEET ON


PROMOTING SPACE TECHNOLOGY BASED TOOLS AND APPLICATIONS IN
GOVERNANCE AND DEVELOPMENT
According to PM possible applications of space technology for the benefit of the common man

Location of fish catches (places where fish are in abundance) for fishermen
Irrigation infrastructure for Pradhan Mantri Krishi Sinchai Yojana
Tracking of illegal mining
Wild life monitoring and conservation
To prevent encroachment on highways
Disaster management

DEFENCE
FLOATING TEST RANGE FOR BALLISTIC MISSILE DEFENCE SYSTEM
BMD PHASE 2

India is building a unique floating testing range a huge ship with a designated displacement equivalent to
10,000 tonnes. It will overcome the limitations imposed by the land mass for carrying out missile tests of
varying ranges for the two-tier ballistic missile defence (BMD) system.

The state-of-the-art range would have many facilities such as a launch-pad, a launch control centre and a
mission control pad would be ideal.

BMD

35

The system seeks to engage and destroy incoming enemy missiles at different altitudes in the
o Endo atmosphere ( less than 30 Km) Advanced Air Defence (AAD)/Ashwin Ballistic Missile Interceptor
and
o Exo-atmospheres. ( 50 - 80 Km) Prithvi Air Defence (PAD)/ Pradyumna
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Phase I - Development of interceptors to destroy incoming missiles with a range of 2,000 km.
Phase II - Aims to build such weapons to destroy missiles with a longer range.
India has so far conducted 10 interceptor missile tests, eight of them successful. Most of the trials were
conducted in the endo-atmosphere, and a few in the exo-atmosphere.
The first phase of the system is expected to be deployed after some more interceptor trials in deployable
configuration.

AMOGHA-I MISSILE
FEATURES

Indigenously developed
Second generation anti-tank guided missile.
2.8 km range
Developed by Bharat Heavy Dynamics Limited (BDL)
Other anti-tank missile: Nag

Why in news:
Amogha-1 was successfully test-fired.

KARWAR - WORLD'S LARGEST NAVAL BASE EAST OF THE SUEZ CANAL

Together with INS Vajrakosh and INS Kadamba (another station 20 km away), the naval base at Karwar is
spread out over 1000 acres making it - the world's largest naval base east of the Suez Canal.
It will base two aircraft carriers, 40 submarines, naval air base amongst other ammunitions.
Repair Centre - 6,500 ton ship lift capacity to move all our major warships - except the aircraft carriers - to
the dry docks for repairs.

INS Vajrakosh is an Indian Navy station located near Karwar in


Karnataka, is commissioned recently.

INS Vajrakosh will be the biggest missiles, ammunition and


spares dump on the Western Sea Board. It will be a station
that will equip all warships and airplanes.

WHY KARWAR WAS CHOSEN

Project Seabird -1985


A 25000 cr project to build a naval
base at Karwar which is to be
commissioned progressively from
2005 onwards.
Phase I INS Kadamba naval station
Phase II- INS Vajrakosh naval station.

The Bombay and Cochin Harbours - the two major Naval


stations in the Western Sea Board - are over-crowded with commercial traffic.
Conceived to be out of range of Pakistans Airforce. (Not the case now)
From Karwar, deployment can be done simultaneously in a very short time.

INTEGRATED AIR COMMAND AND CONTROL SYSTEM (IACCS)


Why in news: The government has cleared the proposal for a nearly Rs 8,000-crore project for IAF's Integrated
Air Command and Control System (IACCS).
Features of Apache attack choppers
Features
Most advanced multi-role combat helicopters.
IACCS is an automated command and control
All-weather and night fighting features.
system for Air Defence (AD) planned by the
Stealth characteristics and advanced sensors.
Indian Air Force.
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It will detect and tackle enemy and terror aerial threats in real-time by putting in place a composite and
enhanced surveillance capability.
With the help of this the air headquarters will get a
Why in news:
composite air situation picture since it will be integrating Air
Force, Army, Naval and civilian radars.
India will introduce injectable or
It enables the surveillance of national airspace for airspace
inactivated polio vaccine (IPV) in its
safety and Air traffic operations.
universal immunisation programme
It helps in real time transportation of data, voice and images
(UIP) in a phased manner from
among stations and aircrafts.
November.

DEFENCE PROCUREMENT

10 Heron TP (missile-armed drones from Israel)


Government approves $400-million plan to procure armed Heron TP drones from Israel
It is capable of reconnaissance, combat and support roles.
It can be used to large terrorist camps or individual targets in hostile territory.
It will enhance India's cross-border military strike capability

MULTI-BILLION DOLLAR DEFENSE DEAL WITH BOEING

The Cabinet Committee on Security (CCS) cleared a multi-billion dollar deal with American aviation giant
Boeing.
Items in the deal: 22 Apache attack helicopters and 15 Chinook heavy-lift choppers.
The deal for Apache is "a hybrid one", with one contract to be signed with Boeing for the helicopter and the
other with the US government for its weapons, radars and electronic warfare suites.
Earlier deals with USA in last decade includes aircraft like P-8I maritime surveillance planes, C-130J 'Super
Hercules' and C-17 Globemaster-III in the transport category.

INDIAS JOINT MILITARY EXERCISES


S. No.
1
2
3
4

Name
MITRA SHAKTI 2015
KONKAN 2015

Nations with
Sri Lanka
UK

Wing
Army
Navy

Number
3rd
10th

AUSINDEX 15
KUVERIN 2015

Australia
Maldives

Navy
Joint Training
exercise

1st
6th

Military exercises are generally aimed at:


o
o
o
o

Share the best military practices


Promoting healthy military to military relations by sharing expertise of conducting operations.
Enhancing confidence, trust and mutual respect between the two militaries
Enhance future joint operations and interoperability.

Note: Every year the exercises are focused on a particular aspect of warfare, for example AUSINDEX15 is aimed
at anti-submarine warfare. However, it is not very relevant from exam point of view to remember these in detail.

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HEALTH AND BIOTECH


INJECTABLE POLIO VACCINE (IPV)
Difference between Oral Polio Vaccine (OPV) and IPV:
OPV is made up of attenuated or weakened poliovirus and there is a risk of vaccine derived polio. IPV is made up
of inactivated (killed) polio virus and will provide immunity from all three strains of polio.
Advantages

As IPV is not a 'live' vaccine, it carries no risk of vaccine-associated polio paralysis.


IPV triggers an excellent protective immune response in most people.

DISADVANTAGES

IPV induces very low levels of immunity in the intestine. As a result, when a person immunized with IPV is
infected with wild poliovirus, the virus can still multiply inside the intestines and be shed in the faeces,
risking continued circulation.
IPV is over five times more expensive than oral polio vaccine.
Administering the vaccine requires trained health workers and sterile injection equipment and procedures.

INDIAN SCENARIO
India eliminated wild polio virus infection in January last year, but there are still cases of drug induced polio that
needs to be tackled. Further, the risk of importation and continued cycle still persists. The Global Polio
Eradication Initiative (GPEI), which coordinates the global fight again polio, wants to stop all use of Trivalent
OPV.
From April, 2016 the trivalent polio vaccine that is currently administered will be replaced by the bivalent
variety. It will reduce incidence of vaccine-derived polio virus.

Suggestions to enhance immunization: Drawing up comprehensive micro-plans for routine immunization.


Intensively training frontline health workers who will carry out vaccinations.
Putting in place monitoring systems so that corrective measures can be taken when needed.

WORLDS FIRST MENINGITIS B VACCINATION


Why in News: Britain on became the first country to implement a vaccination programme for all newborn babies
against meningitis B, which is fatal in one in 10 cases.
SPREAD
According to the World Health Organization (WHO).Bacterial Meningitis accounts for 170,000 deaths globally
every year.
Average 333,000 cases/year in developing countries.
Cause: Commonly caused by bacteria Neisseria meningitidis, also called meningococcus. Though it is also caused
by virus.
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Transmission: Through saliva and occasionally through close, prolonged general contact with an infected person.
Symptoms: General poor feeling, sudden high fever, Severe persistent headache. In severe cases it can cause
death or serious complications, such as brain damage, paralysis, gangrene, or deafness.

BRUCELLA

It is a bacteria
It is potential bioweapon of low intensity
It is a causal agent for Malta fever.
Recently in the Gulf of Mexico, dolphins were found to be infected with these bacteria.

MTDNA
1. Mitochondrial DNA (mtDNA) is the DNA located in organelles called mitochondria. Most other DNA present
in eukaryotic organisms is found in the cell nucleus.
2. In humans, mitochondrial DNA (having 16569 base pairs) is solely inherited from mother.
3. Scientists in the Anthropological Survey of India (AnSI) have been studying mitochondrial DNA of various
tribal communities in India under National Project DNA Polymorphism of the Contemporary Indian
Populations Phylogeny Studies to construct the maternal phylogeny and prehistoric population movements
of human beings in the Indian sub-continent.

IT
MOOC
What are MOOCs (Massive open online courses)

A massive open online course is an online course aimed at unlimited participation and open access via the
web.

Indian govt. steps regarding MOOCs

Govt. (HRD ministry) launched the Study Webs of Active-Learning for Young Aspiring Minds (SWAYAM), a
Web portal where Massive Open On-line Courses (MOOCs) will be available on all kinds of subjects.

NEED OF MOOCS

Poor learning standards among students


A report by an online talent assessment company asserts that only 10 per cent of MBA graduated and 17 per
cent of engineering graduates in India are employable.
Poor accessibility: There is lack of quality education at basic levels and accessibility at later levels are the
driving forces behind the ill statistics.

India has achieved near universal enrolment at elementary level and enhanced hard and soft infrastructure, the
challenge lies in providing access to secondary and higher education to make the youth employable.
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OPPORTUNITIES:
Growth of information technology, increased internet user base, greater smart phone penetration and policies
of government such as digital India, National optical fibre network provides immense opportunities to provide
education and skill development via online platforms.
IMPACTS/SIGNIFICANCE

Will help in skill development


People who do not have chance to receive traditional college degrees from top institutions can now earn
certificates from MOOCs offered by the worlds top institutions.
Affordable form of education to get a job or improve in the job they have
It has the potential to unlock a billion more brains to solve the worlds biggest problems.
By providing free online courses on demand, MOOCS enable learners to learn from anywhere irrespective of
their situation as long as they have internet access.

CRITICISMS

Digital literacy is necessary to make use of the online materials as India lags behind in digital literacy.
Relying on user-generated content can create a chaotic learning environment.
The time and effort required from participants may exceed what students are willing to commit to a free
online course.

PM'S VISIT TO SILICON VALLEY- IMPORTANT TECHNOLOGY RELATED


OUTCOMES

Google to help India set up base for free Wi-Fi at 500 railway stations
Microsoft to take low-cost broadband tech to 5 lakh villages
Microsoft to set up cloud computing systems
Qualcomm to invest $150 million in India
Qualcomm innovation lab to be set up in Bengaluru

IMPORTANT ANNOUNCEMENTS BY PM
ON ENHANCING REACH OF INTERNET

PM announced plans to create more public Wi-Fi spots including at 500 railway stations across India and an
aggressive expansion of the National Optical Fibre Network to take broadband to 600,000 villages.
To connect all schools and colleges with broadband. Building I-ways are as important as highways.

ON GOVERNANCE

40

Govt. wants to free citizens from the burden of excessive paper documents in every office.
Setting up of Ebiz portal has made approvals for businesses and citizens easy and efficient, technology is
being used to impart scale and speed to development.
Technology must be accessible, affordable and value adding.
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To make governance more accountable and transparent while assuring data privacy and security.
A nation of one billion cell phones, M-Governance or mobile governance has the potential to make
development a truly inclusive and comprehensive mass movement. It puts governance within everyone's
reach.

FLASHER
What it is: A software which is used to change the IMEI number of the phone after connecting it to a computer.
The software provides the option of allotting one IMEI number to multiple phones, a technique that misguides
police during investigation.
Operation mobile hunt

A campaign of tracking the lost/ stolen mobile phones using all sort of technology started by Delhi
police.
In this operation, police ordered to persistently keep the stolen/lost/robbed mobile phones on tracking
and as and when any mobile is traced out, activate the local police station teams to recover the same.
Initially, while the retailers manage to change all other traces of a phone being stolen, they could never
tamper with the IMEI.
But now the technologies (Flasher software) of tempering with the IMEI have entered the grey market.

HYBRID VACUUM TOILETS


It is combination of vacuum toilets and bio-digester in which the discharge of the vacuum toilets is transferred
into biodigester.
The biodigester tank is fitted underneath the coach and contains anaerobic bacteria that converts human fecal
matter into water and small amount of gases before discharging the same on the ground/track.
This concept of hybrid vacuum toilet is developed by Indian railways.
Water uses: Appx. 500 ml of water for flushing while conventional toilets consumes 10-15 lt water/flush.

POWERWALL

The Powerwall is a rechargeable lithium-ion battery product manufactured by Tesla Motors for home use.
It charges home appliances using electricity generated from solar panels when sun goes down.
Automated, compact and simple to install, Powerwall offers independence from the utility grid and the
security of an emergency backup.
The Powerpack is a bigger variant available for industrial consumers with a storage capacity of 100 kWh.

Prime Ministers visit to Tesla Motors was primarily due to Indias interest in the companys solar Powerwall
technology.

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5. ENVIRONMENT
MEETING OF LIKE-MINDED DEVELOPING COUNTRIES (LMDC)
WHAT IS LMDC?
The Like Minded Group of Developing Countries (LMDC) is a group of developing countries who organize
themselves as block negotiators in international organizations such as the United Nations and the World Trade
Organization. LMDCs represent more than 50% of the world's population.
India for the first time, hosted the meeting of the Like-Minded Developing Countries (LMDC) on Climate Change.
THE OBJECTIVE OF THIS MEETING

To prepare strategies and way forward for the negotiations in the run-up to Paris COP 21 Meet. and
To exchange, coordinate and harmonize views on the Ad Hoc Working Group on the Durban Platform for
Enhanced Action (ADP) in Bonn negotiating.

The meeting is significant, as it comes at a crucial juncture in the negotiations, given the limited time available
before the CoP-21 in Paris.
KEY CONCERNS OF LMDC

The Paris Agreement should not be mitigation-centric but must address in a balanced and comprehensive
manner the six elements identified in the Durban mandate
o Mitigation with differentiated responsibility.
Membership for the group is
o Adaptation,
changeable.
o Finance
Current Members
o Capacity-building,
o Technology development and transfer,
Algeria, Argentina, Bangladesh,
o Transparency of action and support, as well as loss and
Bolivia, China, Cuba, Ecuador, Egypt,
damage in a balanced manner.
El Salvador, India, Jordan, Iraq,
There is a need for protecting the long-term interest of developing
Kuwait, Indonesia, Iran, Malaysia,
countries, based on the principles of equity and common but
Mali, Nicaragua, Pakistan, Saudi
differentiated responsibilities and respective capabilities (CBDR)
Arabia, Sri Lanka, Sudan, Syria,
Concern regarding shifting the financial burden to developing
Venezuela and Vietnam.
countries.
Disappointment at the lack of text-based negotiations in the last
round of negotiations held in Bonn.
The LMDC expressed strong reservation against any obligatory review mechanism for increasing individual
efforts of developing countries.

NATIONAL GREEN HIGHWAY POLICY


AIM

42

Developing a policy framework for the plantation of trees along highways


Reducing the impact of air pollution and dust

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Providing shade on glaring hot roads during summer


Reducing the impact of noise pollution and soil erosion
Preventing the glare from the headlights of incoming
vehicles
Generating employment
Planting trees along 6,000 km of highways in the first year.

Vision: The vision of the policy is to develop eco-friendly


National Highways with the participation of the community,
farmers, NGOs, private sector, institutions, government
agencies and the Forest Department for economic growth and
development in a sustainable manner.

The National Highways Authority of


India was constituted by an act of
Parliament, the National Highways
Authority of India Act, 1988. It is
responsible for the development,
maintenance and management of
National Highways entrusted to it and
for matters connected or incidental
thereto.
The
Authority
was
operationalized in February, 1995 with
the appointment of full time Chairman
and other Members. "

Funding: A Green Highways Fund would be setup from


contribution of 1% of the civil work of road project cost. NHAI
would serve as fund manager.

SPECIAL PROVISIONS MADE IN POLICY TO ENSURE EFFECTIVE IMPLEMENTATION

The Policy envisages a strict system of auditing whereby


money will be released by the government to the
empaneled agencies only if they have achieved a survival
rate of 90 per cent the previous year.
There will be a strong monitoring mechanism in place by
using ISROs Bhuvan and GAGAN satellite systems. Every
planted tree will be counted and auditing will be done.

Eco-Sensitve Zones by two reports:

Western Ghats Ecology Expert Panel


headed by Madhav Gadgil: 64%.
High Level Working Group headed by
K Kasturirangan who reviewed the
Gadgil report): 37%.

SIGNIFICANCE

This policy includes Plantation, Transplantation, and Beautification & Maintenance.


Pollution reduction.
Reducing the number of road accidents in India.
Achieving forest cover target.

THE PUBLIC LIABILITY INSURANCE (PLI) ACT, 1991


PROVISIONS OF THE ACT

43

The act mandates for a compulsory insurance policy for certain


industries (handling specified chemical and inflammables). It is to
hedge against any accidents and pay for any compensation to those
affected people who are not the workers.
The Act establishes an Environment Relief Fund (ERF), which is
subscribed by all such user industries.
All the State Pollution Control Boards(SPCBs)/Pollution Control
Committees (PCCs) for UTs have been advised for including PLI
insurance policy as one of the point in the check list before
according or renewing NOC to an industry.

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Why in news:
The Ministry of Environment,
Forest and Climate Change has
issued directions to Central
Pollution Control Board (CPCB) to
ensure better implementation of
Public Liability Insurance (PLI) Act,
1991.

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WESTERN GHATS
BACKGROUND

Two government appointed committees in recent past have made recommendations on how to prevent
irreversible damage to the area.
Following these 2 reports, the government had identified 4,156 villages in six states as ecologically sensitive.
The move faced resistance from the local populations and state governments, which saw a threat to
livelihood and development projects.

The Environment Ministry has asked all the six states (Gujarat, Maharashtra, Goa, Karnataka, Kerala and Tamil
Nadu) to physically verify the proposed demarcated areas and then submit specific objections.

Only four states have done this so far.


Features of notification
The extent of ESZ and the other provisions stated in the earlier draft notification remain unchanged because
proposals from the 2 State Governments of demarcation of Ecologically Sensitive Area by physical
verification has not come yet.

ACCORDING TO GOVT. WITH DEMARCATION OF ESZ

The lives of about 50 million people living in Western Ghats region will
not be affected.
Their agriculture and plantation will not be adversely impacted.
Their normal businesses and their other activities will also not get
adversely affected.

Objective of ministry while demarcation the ESZ

Why in news:
The government has issued a
fresh draft notification to
demarcate eco-sensitive zones in
the Western Ghats.

To conserve the biodiversity of the Western Ghats region while providing adequate opportunities for
livelihood security of the local people.
Positive promotion of environment-friendly and socially inclusive development.
Need to conserve Western Ghats (WG)
WG is a global biodiversity hotspot
It is also the origin of Godavari, Krishna, Cauvery and a number of other rivers of Peninsular India, upon
which much of the economy of the region is dependent.

NATIONAL OFFSHORE WIND ENERGY POLICY


BACKGROUND
Worldwide, wind energy is accepted as one of the most developed, cost-effective and proven renewable energy
technologies to meet increasing electricity demands in a sustainable manner. India has achieved significant
success in the onshore wind power development, with over 23 GW of wind energy capacity already installed and
generating power. To help offshore windmill research, development and progress, government has come up
with a National Offshore Wind Energy Policy.
FEATURES

44

To promote electricity generation from offshore wind mills in the Exclusive Economic Zone (EEZ) of India.
Nodal Ministry: Ministry of New & Renewable Energy (MNRE).
Nodal Agency: National Institute of Wind Energy.
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The policy will provide a level playing field to all investors/beneficiaries, domestic and international. All the
processes would be carried out in a transparent manner by NIWE.
It would help us achieve the target of 60,000 mw of wind energy by 2022.
Unique Feature: Large Power Plants with capacity upto 1000MW could be built and there would be no need
for diversion of land.

DRAWBACKS
The cost would be higher and it is technically more challenging to construct and maintain.

ETHICAL CONCERNS REGARDING CLIMATE CHANGE


DISPROPORTIONATE PRODUCTION OF GHGS

Most GHG emissions come from countries that have become wealthy as a result of industrial development.
For example, roughly two-thirds of the emissions are from the United
All these ethical issues will
States, Europe, and Japan, which have about a seventh of the worlds
be considered in Paris at
population and half its wealth.
the Conference of Parties
America, per capita emissions of about 18 metric tonnes/year
(COP-21).
Bangladesh, per capita emissions of about 1/2 metric tonnes/year
The difference between emissions from profligate lifestyles and those associated with energy uses for
subsistence living.
Limited carbon budget: An upper bound to the amount of GHGs that can be pumped into the atmosphere
while still maintaining a stable climate.

DELAYED EFFECTS

It will take several decades, if not a century or longer, for impacts from GHGs in the atmosphere to manifest
themselves fully: warmer oceans, melting ice, and altered weather systems, which will in turn generate
other ecological effects.
Delayed effects thus points to an intergenerational asymmetry between the emissions and impacts, which
raises a range of complex ethical concerns.

ASYMMETRICAL IMPACTS

45

The poor, particularly those living in developing countries, will experience far worse consequences from
climate change than the wealthy, especially those living in rich countries.
There is growing evidence that the worst effects of climate change will fall disproportionately on those living
in sub-Saharan Africa, small islands in the Pacific and Indian Oceans, and deltaic regions of South and
Southeast Asia, Egypt and China.
They typically do not have the resources to adapt to climate change by such protective measures as seawalls
and embankments or by extensive insurance arrangements.
Indeed, the most vulnerable people will be those who lead subsistence livelihoods in highly risk-prone areas.

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FIRST EVER LEOPARD CENSUS IN INDIA

The population of the leopards in extrapolated to be in the range of 12000-14000 as estimated by the
Wildlife Survey of Indias latest survey.
Most of the leopard populations are contiguous, ensuring a healthy genetic exchange. So, leopards do not
face the problems of isolated populations that plague Indian tigers.

Various Lacunae in counting methodology


o
o

Actual counting of leopard stand at 1647 from camera traps photos. However, multiple photos exist and this
data is extrapolated to a figure of 7910 for the states where census took place
North East, some regions of other states were excluded from the survey.

YELLOW-THROATED BULBUL
Why in news: Laboratory for the Conservation of Endangered Species (LaCONES), a conservation arm of the
Centre for Cellular and Molecular Biology (CCMB) will make efforts to conserve yellow throated bulbul
Features and other details

46

Endemic to the southern part of India


Vulnerable status under the IUCN Red List
It is not threatened by poaching or capturing, but by habitat destruction over decades, especially owing to
granite mining, agricultural expansion and cattle grazing.

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6. ECONOMY
TACKLING NPAS
WHAT IS NPA?

The assets of the banks which dont perform (that is dont bring
any return) are called Non Performing Assets (NPA) or bad loans.
Banks assets are the loans and advances given to customers. If
customers dont pay either interest or part of principal or both,
the loan turns into bad loan.
According to RBI, terms loans on which interest or installment of
principal remain overdue for a period of more than 90 days from
the end of a particular quarter is called a Non-performing Asset.

In terms of Agriculture / Farm Loans;


the NPA is defined as:
For short duration crop
agriculture loans is not paid for
2 crop seasons.
For Long Duration Crops, the
above would be 1 Crop season
from the due date.

REASONS FOR NPA


INTERNAL FACTORS

Lack of Funds- Securitization companies and reconstruction companies (SCs / RCs) need incremental capital
to be able to grow and play a useful role in the sector.
Pricing of NPAs- The gap between price expectation of sellers and bid price by securitization and
reconstruction companies has increased which is leading to low success rate of auctions.
Because of lack of monsoon, the asset quality of Indias agricultural credit is significantly affected.
Funds borrowed for a particular purpose but not use for the said purpose.
Poor recovery of receivables.
Excess capacities created on non-economic costs.
In-ability of the corporate to raise capital through the issue of equity or other debt instrument from capital
markets.
Business failures.
Diversion of funds for expansion/modernization/setting up new projects and helping/promoting sister
concerns.
Willful defaults, siphoning of funds, fraud, disputes, management disputes, misappropriation etc.
Deficiencies on the part of the banks viz. in credit appraisal, monitoring and follow-ups, delay in settlement
of payments/subsidiaries by government bodies etc.

EXTERNAL FACTORS

47

Sluggish legal system:


o Long legal tangles
o Changes that had taken place in labour laws
o Lack of sincere effort.
Shortage of raw material, raw material/input price escalation, power shortage, industrial recession, excess
capacity, natural calamities like floods, accidents.
Failures, non-payment/over dues in other countries, recession in other countries, externalization problems,
adverse exchange rates etc.
Government policies like excise duty changes, Import duty changes etc.
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SOLUTIONS

Form mutually acceptable methodology for reserve price valuation to discover fair price of NPAs.
Absence of third party investor money, which is a direct fall-out of a practically non-existent secondary
market, the bank that sells NPAs ironically doubles up as investor in the SRs.
Bankruptcy Code - issue of judicial process - realizing the importance of having a strong bankruptcy
framework in improving the ease of doing business, the Centre has constituted a Bankruptcy Law Reforms
Committee to study the corporate bankruptcy legal framework in India. Its report is expected in January
2016.

FMC MERGER WITH SEBI


FORWARD MARKET COMMISSION (FMC) MERGER WITH SEBI

This is the first major case of two regulatory body Forward Markets
Commission (FMC) merged with the capital markets watchdog SEBI, as
against the relatively more frequent practice worldwide of creating
new regulatory authorities.
The commodity futures market in India will now be supervised by SEBI,
making for an integrated regulation of both the securities and
commodities markets in India.

BACKGROUND

Indias regulatory architecture has so far been fragmented, with


multiple oversight agencies. Such fragmentation has given rise to turf
battles between sectoral regulators. Most countries, barring the US
and Japan, have a unified securities and commodity market regulator.
The FMC has been regulating commodities markets since 1953, but
lack of powers has led to wild fluctuations and alleged irregularities
remaining untamed in this market segment.
For long, the FMC was forced to function like a subordinate office of
the ministry of consumer affairs, without statutory powers. It was
handicapped in terms of the regulatory and manpower resources
required to police this growing segment.
The move gathered pace after the commodity market was rocked by
the outbreak of a multi-crore scam at National Spot Exchange (NSEL)
unearthed two years back which involved a payment crisis of more
than Rs. 5000 crore. This was considered a regulatory failure by the
FMC.

ADVANTAGES

48

A merged regulator would enhance the integrity of financial markets,


It will also boost liquidity and improve the price- discovery process.
A unified regulator may also have a salutary impact on the spot
commodities market, while strengthening it with the transparent systems in place in the securities market.
It helps that Sebi has evolved as a credible regulator in the last two decades.
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CHALLENGES
There is jurisdictional powers of the state government over agricultural marketing and the political sensitivities
involved with farm commodities. Price volatility in these cannot be compared to that in stocks or bonds.

CONCLUSION

The growth of the commodity derivatives market has also been hobbled because of the lack of institutional
players to impart greater liquidity in trading. But now, with an empowered regulator for the commodities
market, there is a strong case for allowing these organised funds.
Next, the government should look at merging the insurance and pension regulators, which can then be the
precursor to a unified regulator for the financial market as a whole.

DEFLATION IN INDIA
DIFFERENCE BETWEEN INFLATION AND DEFLATION
INFLATION

Inflation is simply a measure of the extent of increase in prices. If potatoes cost Rs.100 per kg in August
2014, and if they cost Rs.110 per kg in August 2015, then inflation in the price of potatoes was 10 per cent.
When this happens across prices of all commodities for a relatively sustained period of time, then one can
say the economy is experiencing inflation.

DEFLATION

Deflation is simply the opposite of inflation. That is, prices fall from one period to the next. So deflation is a
decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below
0% (a negative inflation rate).

ARE WE CLOSE TO DEFLATION?

After the release of the April-June gross domestic product (GDP) numbers in first week of September, chief
economic adviser Arvind Subramanian reportedly warned that Indian economy appears to be on price
deflation.

FACTORS WHICH INDICATE DEFLATION

49

Government officials focus on input prices, which have indeed corrected sharply, due to global factors.
However, RBI correctly continues to stick to CPI inflation.
The gap between input price captured in Wholesale Price Index (WPI) inflation, which is also affected by
inflation in tradable, and CPI inflation has been widening. The gap partly reflects the bigger and faster
decline in WPI inflation, thanks to the slump in global commodity prices. However, the pace of the passthrough to retail inflation has been slow and the magnitude less than desired.
Deflation is more than just a case of temporary negative inflation because of, for example- a plunge in
commodity prices, the impact of which will be a one-off and spread over several months.
Deflation captures a significant shift in consumer behaviour, including postponement of spending in
anticipation of lower prices. That is hardly the case in India. In fact, the Indian consumer will perk up
following the mini-boost from the forthcoming announcement of the Seventh Pay Commission.
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The most important point in this debate is that companies take decisions based on wholesale prices while
citizens take decisions based on consumer prices. To put it more clearly, their wage demands are based on
their expectations about consumer prices. There are no signs of deflation right now, only of welcome
disinflation.
Impact of Deflation:
Deflation can have varying effects both positive and negative impact on an economy depending on other
factors.

POSITIVE IMPACT

Deflation can be treated as a temporary condition that will allow for an improvement in competitiveness and
balancing the budget.
Moderate deflation may benefit savers and investors because the value of their assets is appreciating
relative to the rate of deflation.
In general, when there is slack in the labor force there is downward pressure on wages, which can seem
positive for businesses. Business owners can improve margins by paying workers less.

NEGATIVE IMPACT

Deflation can be detrimental for borrowers since they pay back debts in currency that is in effect more
expensive due to deflation.
However, it is important to remember that workers are consumers. If wages are flat, then growth is likely to
be flat.
In general, flat wages are something that restrains consumption growth, and therefore can have a
deflationary effect.
Low inflation or deflation, therefore, is correlated with high unemployment.

CONCLUSION

As a short-term condition, lower prices might give the consumer a break in the face of low wage inflation.
Anemic growth in wages can be good for businesses in the short run as margins improve.
In long term, however, deflation can lead to lower profits and cash flow for these same businesses. For
central banks, deflation is an economic situation they want to avoid since deflation and high unemployment
tend to go hand in hand.
It is important that consumers and businesses should have an expectation that prices will rise in the future.
Otherwise, there's the potential for businesses to put off hiring and investing in new equipment if there's the
expectation that the cost will be comparable, or less, in the future. Likewise, consumers can continue to put
off many purchases if there's no concern that the price will rise. In this way, low inflation or deflation acts as
a disincentive for investment and expenditure.

PRESENT INDIAN ECONOMIC SITUATION


ISSUES
With reference to present Indian economic situation, following issues deserve immediate attention and
consequent policy rectification-

50

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Despite crude oil prices having crashed and the dollar value of the rupee having dropped in a steep
devaluation but still both exports and imports, especially the former in 23 of the 30 commodity groups,
declined steadily over the last 14 months.
Household savings, which were the bulk of national domestic investments, dropped from a high of 34 per
cent of GDP in 2005 to 28 per cent of GDP in 2015.
Non-Performing Assets (NPAs) of the public sector banks risen so sharply, in fact at a rate much higher than
the rate of the new advances made by these banks.
When the economy needs about a $1 trillion investment in infrastructure to render Make in India a reality,
the actual investment in just 75 projects in Financial Year 2015-16 valued at Rs.42,749 crore, less than the
amount invested in 2005-06, which was Rs.44,511 crore.
The manufacturing sector, which provides the bulk of employment to the skilled and semi-skilled labour
force, grown at an abysmally low rates of between 2 per cent and 5 per cent.
When Indias agricultural products are among the cheapest in the world despite a low yield per hectare, are
we not able to double the production and export the products abroad.

SHORT TERM SOLUTION

The government must constitute a Crisis Management Team (CMT) of politicians and economists who
understand the dynamics of Indian society.
Lowering the cost of capital,
Reducing the prime lending interest rates of banks to below 10 per cent,
Shifting to a fixed exchange rate of Rs.50 per dollar for the financial year 2016,
Lowering the exchange rate further for subsequent years by abolishing Participatory Notes
To bring back black money of about $1 trillion by invoking the U.N. Resolution of 2005
Printing rupee notes to fully finance basic infrastructure projects.
The CMT should also initiate steps for transforming agriculture into a globalized sector by providing
adequate infrastructure to export food and milk to Europe and the U.S.

LONG TERM SOLUTION

To tap the advantages we have in our demographic dividend, we should promote innovation,
We must tap our vast Thorium deposits for clean electricity generation and thus end power shortage.
Set up desalination plants along our long coastline to provide adequate water for coastal States.
Overcome technological issues and build a water grid by linking major rivers, from Ganga to Cauvery,
through canals so that water is available to full fill basic needs in water scarce areas and as well as for
irrigation.
Develop new alternative technologies such as hydrogen fuel cells to provide an environmentally friendly
substitute to petroleum products.

CONCLUSION
India has always come out of crises renewed and on a higher growth path. The food crisis of 1965-67 led to
Green Revolution self-sufficiency in food, and the foreign exchange crisis of 1990-91 led to economic reforms,
enabling the country to move to market system and high growth rates.
Thus, the present imminent economic crash should galvanise the way we do business and make us rise to new
heights through innovation and achieve high growth rates with financial stability.

51

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GOLD MONETIZATION SCHEME AND SOVEREIGN GOLD BOND SCHEME


The union cabinet has signed off on two gold schemes to realize the twin objective of monetizing Indias massive
private holdings of the metal and discouraging its imports.
BACKGROUND
India has spent $280 billion in gold imports in the last 10 years - more than the inflow from foreign institutional
investors in both equity and debt in the same period. Annual investment demand for gold is estimated at 300
tonnes a year and holdings of gold are estimated at 20,000 tonnes, most of which are privately held lying idle in
bank lockers and vaults.
OBJECTIVE

This is a step towards making gold an integral part of the larger financial system and a fungible asset
class in its own right.
PROVISIONS

Gold monetization scheme

Sovereign gold bond Scheme

a) The deposits can be short term (1-3 years), medium term (5-7
years) and long term (12-15 years).
b) While the interest rates on short-term deposits will be decided by
banks and will be denominated in grams of gold, the interest rate
on medium- and long-term deposits will be decided by the
government in consultation with the Reserve Bank of India from
time to time and will be payable in rupees.
c) This is not a black money immunity scheme and normal taxation
laws would be applicable. Hence, there is no relaxation in knowyour customer guidelines to ensure that these schemes do not
turn into avenues of converting unaccounted wealth into white
money.
d) Customers will be exempted from capital gains tax, wealth tax
and income tax, which imply that the interest will be tax-free.
They can redeem the short-term deposits along with the interest,
either in cash or in gold. However, for medium- and long-term
deposits, redemption will be only in cash and based on the
market price of gold prevalent on the day of redemption.
e) Medium and long-term deposits can be used to replenish RBIs
gold reserves, auctioning, making coins and lending to jewelers.
Short-term deposits will only be used for making coins and
lending to jewelers.

a) The government will create a gold


reserve fund to bear risks arising
out of variations in gold prices.
b) The bonds are to be issued by RBI
on behalf of the finance ministry.
c) The annual cap for such bonds
will be restricted to 500g per
person per year and the interest
rate would be subject to revision.
d) The bonds will be issued in
denominations of 5g, 10g, 50g
and 100g of gold and other
denominations, with a minimum
tenor of five-seven years.
e) Since the bond will be a part of
the sovereign borrowing, these
would need to be within the fiscal
deficit target from the current
fiscal itself.

BENEFITS

52

This move will not only ease pressure on the countrys trade balance as Indias imports are dominated by
crude oil and goldbut also convert gold into a productive asset.
The gold monetization scheme will drive orderly recycling and enhance transparency, benefiting millions of
households and the macro economy, as it has the potential to translate gold savings into economic
investments.
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Allowing gold bonds as collateral for loans along with tax sops such as making the interest on gold bonds taxfree, exempting them from capital gains tax and providing indexation benefits to long-term capital gains on
transfer of the bond, make gold bonds a relatively attractive proposition.
Sovereign gold bond Scheme will allow savers to sell or trade bonds easily on commodity exchanges and key
features, such as the ability to use them as collateral for loans and capital gains tax treatment similar to gold.

CHALLENGES

Though, the scheme talks about need for proper know-your customer requirements, it was unclear on what
will happen to gold depositors who do not have receipts of their gold purchases.
Gold monetisation scheme has not succeeded in the past. For example, State Bank of India has offered a
gold deposit scheme for almost two decades, offering a one per cent interest rate. All that the scheme has
yielded is eight tonnes of gold.
There is also the mindset issue. Not many will be happy to see their ornaments melted down for a relatively
small return. Although depositors will have the option of taking back gold after the maturity period, the
purpose will not be served, as it will entail a loss in terms of making charges of 5-15 per cent. So if interest
on the new gold deposit scheme is low, it will fail an individual's cost-benefit test. However, the
government's only recourse seems to be temple trusts over which it has some control.
Gold purity needs to be assessed from a recognised centre, which are few and far between. For banks,
collecting gold from remote places and lending it to jewelers in certain pockets of the country will not be
easy.
But the biggest stumbling block will be the fear of tax scrutiny. There will be considerable apprehension over
the likelihood of questions being asked about where the gold came from - a question even many individuals
even after complying with the know-your-customer rules may find difficult to answer as the gold in question
may have been lying with them for many years as wedding gifts or a legacy from earlier generations.

WAY FORWARD
Hence, for the scheme to succeed, apart from addressing above mentioned concerns the returns must be more
attractive; households are unlikely to be enthused just because the minimum threshold is 30 grams compared to
500 grams under the SBI scheme.

TEASER HOME LOAN


WHY IN NEWS
Recently, State Bank of India (SBI) chairperson made a pitch for re-introducing teaser home loans to help boost
demand for credit.
WHAT IS TEASER LOAN?
Teaser home loans are offered at a fixed low rate of interest in the initial years and are subsequently adjusted to
a higher floating rate for the rest of their tenure. Teaser loans try to entice borrowers by offering an artificially
low rate and small down payments, claiming that borrowers should be able to refinance before the increases
occur.
BACKGROUND

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In 2008, when the economy started slowing down, one of the things that made demand go up was the 8%
housing loan or teaser loan that SBI launched. However, SBI and other lenders withdrew the teaser loan offer in
2011 because of concerns at RBI that such loans were riskier and carried a higher probability of default.
Presently, corporate demand for long-term credit is weak with new investments on hold as companies wait for
faster economic growth and an upturn in consumer demand.
ADVANTAGES
On the other hand, if we look at overall picture this scheme might have benefits on two accounts:

First, to give a big boost to GDP growth, which will mean greater activity on the construction front.
Second, to have the unsold inventory sold off because banking industry do need new buyers into the market.
This will lead to fresh infusion of equity into banks as well as perhaps reduction of the government holdings.

ARGUMENT AGAINST

Teaser loans have been discouraged by RBI keeping in view the global experience with such schemes,
especially sub-prime loans in the US.
RBI also points out that last time, these loans were available to only new customers and existing customers
did not get the benefit of lower rates, making such products discriminatory.
Consumers who took the teaser rate loans in 2009 and 2010 and have blindly continued their loans with SBI
are now paying an interest rate of anywhere from 11.70 per cent to 12.95 per cent depending on the month
in which the loan was disbursed and the loan amount. This is against the 9.75 per cent SBI charges to its
current home loan consumers. The situation is similar for loan consumers of other major lenders who also
offered teaser rates at that time. So in the ultimate analysis, the entire 'teaser rate' phenomenon only ended
up benefiting lenders and developers at the cost of the loan consumers.

ALSO IN NEWS
SPECTRUM TRADING NORMS TO BE NOTIFIED SOON

It essentially means sharing of spectrum by operators.


It is important because these norms will allow telecom
companies to pool their spectrum holdings.
It is expected to address the problem of shortage of spectrum,
leading to better quality of services for mobile phone users,
including fewer call drops.
The norms are also likely to push consolidation in the telecom
sector.

CALL DROP ISSUE


WHAT IS CALL DROP?

54

According to TRAI, call drop represents the service providers


inability to maintain a call once it has been correctly
established.
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ISSUE

More than 17 per cent of the calls people make in the national capital are terminated due to technical
reasons. In comparison, the highest drop rate for any service provider in Mumbai is 5.56 per cent.
One of the main reasons for a spike in call drop rates in the capital is the recent crackdown on illegal
mobile phone towers by the three Municipal Corporations of Delhi.
The civic bodies and telecom service providers in Delhi have been locked in legal battle since 2011 over the
issue of license fee for setting up mobile network towers.
The court struck down the hike in fee and directed the MCDs to provide a cost-oriented fee to cover their
administrative costs.
While the matter remains in court, civic bodies continue to dismantle towers that have come up after 2011.
The municipality refers to towers that have come up post 2011 as illegal.

WORLD BANKS SURVEY: EASE OF DOING BUSINESS


OBJECTIVE OF THE REPORT

Aiming to enhance the country's image as a friendly investment destination, the government along with
World Bank has released a state-wise report on the ease of doing business.
The effort is part of the government's initiatives to improve India's position on the World Bank's `Ease of
Doing Business' ranking. India is 142nd on the list of 189 countries.
The government wants India to breaking into the top 50 at the earliest. It expects to make it to the top 100
in the next ranking.

SALIENT POINTS OF THE REPORT

55

This is the first time that the World Bank has created a sub-regional state-wide report card on the basis of a
98-point action plan for business reforms, drawn up by the Department of Industrial Policy & Promotion and
state governments during a Make In India workshop in December last year.
The eight most important parameters on which states were evaluated were:
setting up a business
allotment of land and obtaining construction permit
complying with environment procedure
complying with labour regulations
obtaining infrastructure-related utilities
registering and complying with tax procedures
carrying out inspection
enforcing contracts.
Gujarat topped the list with a 71.14 per cent score, is followed by Andhra Pradesh (70.12 per cent),
Jharkhand (63.09 per cent), Chhattisgarh (62.45 per cent) and Madhya Pradesh (62 per cent).
Punjab is the best state in terms of 'setting up a business'. With a single-window online system for
registrations and licences.
The report also said 26 states were yet to introduce reforms along a wide range of labour inspections under
various acts, or on inspections related to building permits.

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DRAFT FRAMEWORK ON EXTERNAL COMMERCIAL BORROWINGS (ECB)


DRAFT FRAMEWORK ON EXTERNAL COMMERCIAL BORROWINGS (ECB)OBJECTIVE

To supplement domestic capital for creation of capital assets in the country.


To attract overseas investments, norms would be relaxed keeping in view the overall external position and
monetary stability. ECB has implications for monetary stability as it adds to the countrys overall external
debt and future repayment liability.

PROVISIONS IN PROPOSED ECB FRAMEWORK

Retention of the existing basic structure of ECB framework for normal foreign currency borrowings with
certain liberalizations made based on experience.
Expansion of the list of recognized lenders to allow domestic firms to borrow from overseas regulated
financial entities, pension funds, insurance funds, sovereign wealth funds and other long term investors.
Prescription of only a negative list of end uses for long term foreign currency borrowings (minimum maturity
of 10 years) stock market operations, real estate, purchase of land.
Currency risk will lie with lender or investor - hence the modified framework provides for minimal control for
these borrowings.
The RBI has also proposed that Indian banks act as ECB lenders subject to norms.
REiTs (Real Estate Investment Trusts), InvITs (Infrastructure Investment Trusts) will be permitted to raise
funds through this route.

CONCLUSION

Within the overarching stance of calibrated approach to the capital account liberalization, an attempt has
now been made to replace the ECB policy with a more rational and liberal framework, keeping in view the
evolving domestic as well as global macroeconomic and financial conditions.

RBI AND INTEREST RATES


In its the fourth bi-monthly monetary policy review, Reserve Bank of India, has cut interest rate by 0.50 percent
which is double of what broadly expected.
KEY FACTS

This repo rate cut i.e. 0.50 percent is the biggest in more than three years. The cut brought down repo rate
to 6.75 percent, the lowest in four-and-half-years.
Cash Reserve Ratio is left unchanged.

ANALYSIS

56

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RBI has clearly underlined the fact that local demand and investment hold the key to sustaining an incipient
recovery.
Factors which have reinforced this decision includes
o The U.S. Federal Reserves decision earlier this month to continue to maintain the funds rate near zero in
the backdrop of heightened uncertainties in the global economy,
o The fragility evidenced in the financial markets following the devaluation of the yuan.
o And slowing inflation.
Future Prospects- Foreign demand will be weak because of the problems in the global economy. Private
sector investment activity will be muted because of excess capacity. So, most of the heavy lifting will have to
be done by two drivers of aggregate demandconsumer spending and public investment. The latter has
already been promised in the February budget. The formerand especially urban demandshould get a
boost by this move.
Challenges Ahead- Indian macro policy is in expansionary mode even as policymakers have been insisting
that economic growth is recovering, even though below potential. That could have inflationary effects later
on.
Way Forward- This cut may help break the negative cycle. But the government must ensure that two key
conditions are met. One, no fiscal slippage that could renew the inflationary spiral and lead to high
interest rates. Two, speeding up of reforms that make it easy for people to invest and do business.

NEW FEATURES INTRODUCED ON CURRENCY NOTES


NEW FEATURES INTRODUCED ON CURRENCY NOTESTo check the menace of fake Indian currency, new
notes, especially the Rs 1,000 and Rs 500
denominations, will have 7 new security features and
a new numbering system. The RBI has also asked the
banks to stamp notes detected as fake as
"Counterfeit Note" and impound them, while banks
found not following the procedure will be penalized.
The National Investigation Agency (NIA) has been
designated the nodal agency for fake currency cases.
OBJECTIVES

To aid visually impaired people in easy


identification of banknotes.
To secure currency notes against counterfeiting

NEW FEATURES

57

Braille-like markings on currency notes of Rs 100,


Rs 500 and Rs 1,000 denominations.
Rs 100 notes will have four parallel angular lines printed along the border and just beside the Mahatma
Gandhi watermark. The Rs 500 notes will have five lines while the Rs 1,000 notes will have six.
Numbering with exploding font -the print size of each number on numbering panel on the note ascend in
size from left to right.
Increased the size of the existing identification marks on these currency notes by 50% so that it is easier for
visually challenged people to recognize each note.
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State-of-the-art intaglio printing will be used in which the security paper is perforated and
incised into the paper, allowing users to feel the lines.

printing ink

US FEDERAL RESERVE KEPT BENCHMARK RATES UNCHANGED


For the past nine years, since the global financial crisis broke, in order to stimulate growth, the US Fed (along
with other central banks) has injected huge amounts of liquidity into the global financial system via The bond
buyback program and Through near-zero interest rates.
This excess money moving around in global markets has fueled a number of asset bubbles.

The commodity super cycle of 2006-2011,


The eight-year bull run in gold,
Large flows into emerging market equities

CONCERN
Market players fear that a hike in the Fed funds rate which will signal the official end to the cheap money, will
completely deflate these asset prices. IMF and World Bank had come out against a rate hike on the ground that
it would roil the markets.

IMPACT ON INDIA
The OECD report this week is clear India will be the fastest growing economy in the world, for at least two years.
So the capital could again be upon the Indian shores pricing out domestic money from banks. And this is what
creates massive problems. Indian money is costly while the world is awash with cheap capital.

Capital was costly in India primarily because of the twin deficitsfiscal and current account or the internal
and external ones.
Cost of capital would remain high in India if policies fluctuated.
Problems will be there for small and micro enterprises which depend only on domestic sources.

THE POSSIBLE NEGATIVE IMPACT ON INDIA


The argument is based on the impact on liquidity or money flow into the markets. Given that India runs a
sizeable trade deficit, FPI pullouts can set off a slide in the rupee. It can cause

Indias import bill to swell and current account deficit to widen.


Increase in energy and material costs and re-fire inflation.
Trigger to debt-servicing problems for Indian firms who have been on a borrowing binge abroad. 20 per cent
of Indian credit is now being financed from abroad.
Weak rupee also decimates returns for foreign investors, and could prompt them to make an even more
concerted dash for the exit door.

ARGUMENTS THAT IT WILL NOT AFFECT INDIA


The argument is based on the fact that global markets are not all about money flows and asset bubbles.
Government initiatives that can deal with it:
Jan Dhan yojana had tapped Rs 22,000 crore of small savings from the poorest at low cost to offer micro
enterprises soft loans through MUDRA, etc. The plans for additional insurance cover would allow SME to
58

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take up more risks besides, opening up new markets for the insurance companies can ensure stock markets
were not made volatile as capital from abroad swept in and out.
Give room for pension funds like the Employees Provident Fund Organization to increase investment.
Indian bond markets have been far more resilient to rate hike jitters than equities.

VARIOUS INITIATIVES TO MAKE INDIA ATTRACTIVE FOR GLOBAL


INVESTMENT

Stability in taxation regime (tax disputes with Vodafone, Cairn, Shell).


Improve Ease of doing business (India is ranked 142 out of 189 countries in the World Bank's ease of
doing business index).
Government has made various reforms in different sectors including taxation, labour, land and skill
development and power sector among others.
Reforms in the banking sector, transparent and fair allocation of natural resources, rolling-out GST at the
earliest, address the problems of discoms in the power sector.
Countrys infrastructure sector needs huge investments and foreign investments can give great
resources.
Digital India and Make in India (initiatives) are designed to give special boost to manufacturing, India has
huge potential in these areas. It would require better integration of Indian economy with global supply
chains, markets and trade.
Strengthening of IPRs - To innovate, attract investment.
Proposed National Investment and Infrastructure Fund (NIIF) would be a "great enabler" to attract
investment, the fund would operate independent of the government just as another investor.

OIL EXPLORATION IN INDIA - REVENUE SHARING MODEL

The government has initiated a new approach in the licensing and proceeds-sharing mechanisms with
respect to the unutilized natural resources locked away in the 69 small and marginal oilfields lying with the
state-owned exploration agencies.

NEED

The recent oil field discoveries could not be monetized for many years due to various reasons such as
isolated locations, small size of reserves, high development costs, technological constraints, fiscal regime
etc. Around 70% of Indian basins remaining largely under-explored. Even response to the new exploration
licensing policy (Nelp) has been tepid.

NEW PROVISIONS

59

This policy is based on sharing revenue instead of profits and giving out unified licences for all
hydrocarbons in the field instead of a license for each.
The move is consistent with the observation of the Comptroller and Auditor General (CAG) that the PSC
does not provide adequate incentives to private contractors to reduce capital expenditure.
Under the new regime, the Government will not be concerned with the cost incurred and will receive a share
of the gross revenue from the sale of oil, gas etc.
Another change that the policy brings about is that the license granted to the successful bidder will cover all
hydrocarbons found in the field. Earlier, it was limited to one, and a separate license was required if any
other hydrocarbon, such as gas, was discovered and exploited.
The new policy for the marginal fields also allows the successful bidder to sell at the prevailing market price
of gas, rather than at an administered price.
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BENEFITS

This is more transparent and market-oriented regime for hydrocarbon exploration and production.
The revenue-sharing approach is simpler, and is likely to earn the government more money.
Companies will be allowed to sell crude oil or natural gas at market prices, without any interference from the
government. The revenue and royalty-sharing mechanism will be pegged at this market rate. If companies
are forced to sell at below-market prices, then the government will still get a royalty share pegged at the
market rate.
If, however, the company manages to sell at higher-than-market prices, then the sharing mechanism will be
pegged to this higher price. Thats a win-win for the government: less oversight and an assured minimum
income.

RELATED INFORMATION

Production Sharing Contract- Production sharing contract (PSC) framework allows for cost recovery by
exploration and production (E&P) companies before they pay the government its share of revenue. It
encouraged investors to take higher exploration risks, and in the event of success, the costs could be
recovered. According to this provision, the government had to audit the various costs incurred by the
private companies, which often led to delays, disputes and loss of revenue for government.

Questions:
1. Discuss the important features of recently launched Indradhanush plan for the revival of public sector
banks. Also highlight the lacunas in this plan and suggest some measures.
2. Critically analyze the recently launched gold monetisation and Sovereign gold bond scheme by
government of India.
3. What is teaser loan? What role it can play in boosting the GDP growth?
4. Recently, government of India has merged Forward market commission with SEBI. Discuss its
implications; will it be useful in tackling the problems of commodity markets?
5. Is Indian Economy heading towards deflation? What steps can be taken to control deflation?
6. What are the main differences between production-sharing and revenue sharing contracts in the context
of energy sector in India? Which will be better for achieving long term energy security in India?
7. Discuss the reasons of Non-performing assets in India and also suggest some alternatives to tackle it.

60

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7. INDIA & WORLD / INTERNATIONAL AFFAIRS


COMPREHENSIVE NUCLEAR TEST BAN TREATY
The Comprehensive Nuclear-Test-Ban Treaty (CTBT) is a multilateral treaty by which states agree to ban
all nuclear explosions in all environments, for military or civilian purposes. It was adopted by the United Nations
General Assembly on 10 September 1996 but it has not entered into force due to the non-ratification of eight
specific states.

The CTBT with its 183 signatories and 163 ratifications is one of the most widely supported arms-control
treaties.
The CTBT has yet to become global law due to its demanding entry into force clause, which requires the
signature and ratification of all 44 countries listed as nuclear technology capable.
At present, eight of those countries are yet to join: India, Pakistan and North Korea are the only nonsignatories from this list.

INDIAS OBJECTIONS TO CTBT

India's objection to the CTBT is that as with the earlier nuclear treaties, it divides the world permanently into
nuclear "haves and have-nots.
CTBT only deal with horizontal proliferation not vertical proliferation (refers to the upgrading and further
development of more sophisticated weapons by the existing nuclear powers by simulation). India called for a
treaty that banned all types of nuclear weapons tests.
Nuclear weapon states have already acquired sophistication before signing treaty that is discriminatory
against India.
Indias security concerns are not addressed.
No time frame mentioned to dismantle existing nuclear weapons.
CTBT is silent on complete nuclear disarmament. India is "committed to working towards a CTBT that will
promote the goal of total nuclear disarmament.

IF INDIA SIGNS CTBT


Following advantage India can drive by signing CTBT:

61

India can gain admission into the institutions governing the global nuclear order, which essentially means
membership of strategic export control cartels such as Nuclear Suppliers Group (NSG) and the Missile
Technology Control Regime (MTCR). , Australia Group and the Wassenaar Arrangement.
Signing the CTBT would also make Indias claim for a UNSC seat stronger.
Once India signs the CTBT, some of the other hold-out states are likely to follow, such as Pakistan, China and
USA.
It may end nuclear race in Asia.
To respond to global developments in nuclear disarmament and arms control as a responsible stakeholder
in the non-proliferation regime.
India will get information from International Monitoring System (IMS) of the Comprehensive Nuclear-TestBan Treaty Organisations (CTBTO).

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INDIA ROLE IN NUCLEAR DISARMAMENT


India position is very clear and consistent about complete nuclear disarmament,

Prime Minister Jawaharlal Nehrus famous initiative in 1954 for a standstill agreement on nuclear testing.
Nehru played an important role in building international momentum for the 1963 Limited Test Ban Treaty,
which India joined.
Rajiv Gandhis impassioned plea to the U.N. General Assembly in 1988 for phased nuclear disarmament.
India played a key role in the negotiations to establish the International Atomic Energy Agency (IAEA) and
actively participated in the negotiations on the NPT, but decided not to sign when it became clear that it
would become an unequal treaty.

UNSC REFORM

The UN General Assembly unanimously adopted a negotiating text for the Security Council reforms.
This is the first time in the history of the intergovernmental negotiation process that a decision on UNSC
reform has been adopted by means of an official document.

NECESSITY OF UNSC REFORM

The UNSC, created in the post-War context, doesnt actually reflect the changes that have occurred in the
international system after the end of the Cold War.
In the past quarter century, the global order has seen massive changes, from American unilateralism to the
rise of multilateral institutions such as BRICS.
In a quarter century, the global economic architecture has undergone massive changes. The developing
nations, including India, now play a bigger role in international affairs. But within the UN, the five
permanent veto-wielding members still effectively take all the crucial decisions.
The Indian position is that this democracy deficit in the UN prevents effective multilateralism in the
global arena.
The geopolitical rivalry among the permanent members has prevented the UNSC from coming up with
effective mechanisms to deal with global crises.
The way the UNSC handled or failed to handle some of the recent crises would underscore the
soundness of the Indian position. Take the examples of Libya and Syria. While the western nations are
accused of distorting the UNSC mandate in Libya, the Security Council failed to reach a consensus on how
the Syrian crisis may be resolved. This clearly points to a worsening institutional crisis within the UNSC.

INDIAS ARGUMENT FOR UNSC SEAT

62

India is among the founding members of United Nations.


It is the worlds largest democracy and Asias third largest economy.
The Indian Army is the largest contributor to the UN peacekeeping mission since the inception of the
mission.
More important, Indias foreign policy has historically been aligned with world peace, and not with conflicts.
It has been a member of UNSC for 7 terms and a member of G-77 and G-4, so permanent membership is a
logical extension.

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THE GROUP OF FOUR

The Group of Four, or G4, Summit, took place after a decade, was hosted by Prime Minister Narendra Modi.
Leaders of Brazil, Germany, India and Japan called for urgent reforms of the United Nations in a fixed time
frame.

OPPOSITION TO THE EXPANSION

Uniting for Consensus (UfC) is a movement, nicknamed the Coffee Club, that developed in the 1990s in
opposition to the possible expansion of the United Nations Security Council.
o Under the leadership of Italy, it aims to counter the bids for permanent seats proposed by G4
nations (Brazil, Germany, India, and Japan) and is calling for a consensus before any decision is reached
on the form and size of the Security Council.
o The UFC demands a 25-member Security Council with more non-permanent members instead of a few
more permanent members.
Three powerful members of the UNSC Russia, China, and the U.S. are opposed to any major
restructuring of the Council.
The U.S. favours only a modest expansion of the UNSC, while Russia doesnt want any change in the veto
arrangement.
Even if the General Assembly members reach a consensus on reform, it could be shot down by the
permanent members.

CONCLUSION

Meaningful reform of the Council to make it more representative and democratic would strengthen the UN
to address the challenges of a changing world more effectively.
India, Japan, Germany and Brazil, or the G4 should continue their multilateral diplomacy to build a
democratically evolved global consensus on restructuring the UNSC.
The permanent members should realise that a more democratic and representative Security Council would
be better-equipped to address global challenges.
If the UN still shies away from reforming the Security Council, the possibility of the institution being
sidelined by emerging powers cannot be ruled out.

INDIA AUSTRALIA
INDIA- AUSTRALIA NUCLEAR DEAL

India and Australia signed the civil nuclear deal in September 2014, but Australia is unable to supply uranium
to India because treaty has not been ratified by Australian parliament.
Recently the parliamentary committee (Joint Standing committee on Treaties (JSCOT)) has released report
about India- Australia nuclear deal.
The parliamentary committee has in principle approved the nuclear deal.

RECOMMENDATIONS OF COMMITTEE

63

It recommended that India be encouraged to sign the Nuclear Non Proliferation Treaty (NPT),
To separate its civilian and military nuclear facilities further, and
Appoint an independent national regulator to oversee the movement of Uranium, also called AustraliaObligated Nuclear Material (AONM).
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MAJOR ISSUE WITH DEAL

Under Section 51(2) of the Australian safeguards law, it is mandatory for the government to account for all
Australia-Obligated Nuclear Material (AONM), in terms of location, quantities and intended use, verified
on an annual basis.
India's position is that all imported nuclear material is subject to safeguards under the guidelines of the
International Atomic Energy Agency and further bilateral intrusions are unnecessary.

TRADE

The bilateral trade between India and Australia, estimated at $15 billion.
To strengthen bilateral trade and investment, both counties Prime Ministers agreed to conclude a
Comprehensive Economic Cooperation Agreement (CEPA) by the end of the year.
India Australia both borders the Indian Ocean and has a shared interest in the maintenance of freedom of
navigation and trade.

INDIA-CAMBODIA:
India and Cambodia signed two Memorandums of Understanding during the visit of Vice-President Hamid Ansari.

Tourism: The tourism MoU was aimed at boosting tourist movement between the two countries.
Mekong Cooperation Initiative -Ganga
o The Mekong-Ganga MoU related to five quick impact projects, one of which was a $50,000-grant to
Cambodia for the upgradation of an Entrepreneurship Development Centre.
o The other four projects included two in healthcare, especially to do with malaria, one on agriculture and
one on womens empowerment.

TO BOOST TRADE AND INVESTMENT IN CLMV

India seeks to invest in the CLMV (Cambodia, Laos, Myanmar and Vietnam) countries (which are part of the
10-member ASEAN group) to take advantage of the free trade agreements they have with various countries
such as China.
The government seeks to put in place a project development company, special purpose vehicles and a
project development fund with a corpus of rupees 500 crore to help Indian businesses explore opportunities
in the CLMV region.
Indias exports to CLMV countries grew 38% to $6.4 billion in 2013-14, while its imports increased 4.2% to $4
billion during the same year.
The CLMV countries cover 32% of geographical area of the ASEAN region, and account for around 9% of
ASEANs gross domestic product. CLMV nations, considered among the fastest growing economies in the
region.

INDIA- SRI LANKA:


Sri Lankan Prime Minister Ranil Wickremesinghe visited India. List of Agreements/MoUs signed during his visit.

64

Bilateral Agreement between India and Sri Lanka on Orbit Frequency Coordination of Satellite for SAARC
Region

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Renewal of MoU regarding Indian grant assistance for implementation of Small Developmental Projects
(SDP) through local bodies, non-governmental organizations, charitable trusts and education and vocational
institutions.
MoU regarding supply of Medical Equipment to 200 bed ward complex at District General Hospital, Vavuniya
Exchange of Letters on Establishment of Emergency Ambulance Services in Sri Lanka

CONTENTIOUS ISSUES BETWEEN INDIA- SRI LANKA

The historic waters between India and Sri Lanka have become a battleground between the Tamil fishermen
on both sides. A negotiated solution needs to be found on this issue.
Another issue is the implementation of the 13th amendment which calls for devolution of powers to
provinces.
The UNHRC resolution on war crimes is another important issue on which both the countries have to reach
an understanding.
Pro-China tilt: During the presidency of Mahinda Rajapaksa Sri Lanka was seen as tilting toward china. Indian
apprehensions in this regard were further heightened when Chinese submarines twice docked in Sri Lanka.
On the other hand, his successor President Maithripala Sirisena has assured that the pro-China tilt would be
corrected.

INDIAS LOOK WEST POLICY


India adopted look west policy in 2005. However, the policy did not get much attention since 2005. Prime
Minister Narendra Modis visit to the United Arab Emirates (UAE) has the potential to transform our
engagement with West Asia.
The foundation for PM successful outreach to West Asia was in fact laid by his predecessor when India invited
the King of Saudi Arabia to be the chief guest at the Republic Day Parade, in 2006. This was followed by Prime
Minister Manmohan Singhs visit to Riyadh and the India-Saudi defence cooperation agreement signed in 2014.

TRANSFORMATIONAL VISIT

The Joint Statement between the United Arab Emirates and India is an important articulation of a significant
shift in the Arab worlds view of India.
It talks of historic ties of commerce, culture and kinship, drawing attention to the unique history of Arab
interaction with Indian communities of the west coast, from Gujarat to Kerala.
The joint statement, outlining closer government-to-government (G2G) relations, draws attention to the
vibrant business-to-business (B2B) and people-to-people (P2P) relationships and commits the UAE to a
sharp increase in its investment in India.

GULF COOPERATION COUNCIL (GCC) LOOKS WEST


The new strategic partnership outlined by the UAE and India is not just defined by Indias Look West policy but
that it is equally defined by the GCCs Look East policy.
Several factors have contributed to this fundamental shift in West Asian strategic thinking.

65

First, the structural change in the global energy market with West Asian oil and gas increasingly heading to
South and East Asian markets rather than to the Trans-Atlantic markets.
Second, partly as a consequence of this change in flows and partly owing to the fiscal stress faced by the
trans-Atlantic economies, West Asia is looking to India and other Asian powers to step in and offer security
guarantees to the region. Many GCC states have welcomed defence cooperation agreements with India.
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Third, in the wake of the Arab Spring and the mess in Egypt and Iraq, the Gulf states find India and China to
be more reliable interlocutors than many western states.
Fourth, under pressure from radical and extremist political forces within West Asia, most states in the region
have come to value the Indian principle of seeking and securing regional stability as an over-riding principle
of regional security.

CONCLUSION

Look East Policy succeeded because South-East Asia began to look West to India, seeking a balancer to
China.
Look West Policy will succeed because West Asia is looking East worried about the emerging strategic
instability in its own neighbourhood and the structural shift in the global energy market.
India-West Asia relations is the assertion of not just a shared past but of shared challenges in the present
and a shared future.

INDIA - IRAN
MOU : CHABAHAR PORT

Iran and India have signed an agreement to develop the Chabahar port. This will provide an alternative route
for India to trade with Afghanistan and Central Asia, bypassing Pakistan.
Under the Memorandum of Understanding, Chabahar port will be used to ship crude oil and urea, greatly
reducing transportation costs for importing these two commodities.
The port is to be developed via a special purpose vehicle, which will be owned by the two sides with an
investment of around $85 million.
A multi-purpose cargo and container terminal is to be developed at the port.

STRATEGIC SIGNIFICANCE

66

Ties with Iran are vital for Indias economic and


strategic interests.
Iran has one of the largest gas reserves, and
these are expected to be opened up soon for
global investments.
Oil and Natural Gas Corporation already has
interests in the Farzad-B gas field, and Iranian
gas will help Indias fuel-starved power stations.
More important, New Delhi and Iran share an
interest in stabilising Afghanistan. Both realise
that a return of the Taliban to Kabul would
affect their key interests.
Indias presence in Chabahar will offset the
Chinese presence in the Pakistani port of
Gwadar. It also takes advantage of the
centuries-old connection with Iran.

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CONCLUSION

For the success of these projects India needs to have a consistent policy towards Iran that is defined by
mutual interest and not by global pressures.
The period of tepid engagement with Iran has delayed the Chabahar port project and affected Indias energy
security. Now New Delhi has to make up for lost time by accelerating bilateral diplomacy.
India has to seize the momentum provided by the nuclear deal to step up energy trade with Iran. Imports
from Iran are relatively cheap because of the geographical proximity and the extended credit period it offers.

MYANMAR ELECTION
National election in Myanmar is going to be held in November. Myanmar opposition leader Aung San Suu Kyi
said her party would contest a national election.

The
National
League
for
Democracy( NLD)
won
Myanmar's
last free and fair
election in 1990 in
a landslide, but the
result was ignored
by the then ruling
military. The NLD
boycotted a 2010
poll held under
military rule.
The
Union
Solidarity
and
Development
Party
(USDP),
which is dominated by military and civil servants, will be the NLD's biggest opponent.
Ms. Suu Kyi's own presidential aspirations are curtailed by a clause in the constitution that bars individuals
with children holding foreign citizenship from becoming head of state.

POLITICAL REFORMS IN MYANMAR


A process of reform has been under way in Myanmar since November 2010, when military rule was replaced by
a new military-backed civilian government.

Release of Aung San Suu kyi from house arrest.


The release of political prisoners.
Free and fair by-poll elections in 2012 that saw Aung San Suu Kyi enter Parliament.
The lifting of censorship on media houses.

Based on the above reforms USA and EU have lifted most of the sanctions against Myanmar.

MILITARY HOLDS ON PARLIAMENT

67

As per 2008 constitution, 25 per cent of the seats in the Upper and Lower houses of Hluttaw (House of
Representatives) will be nominated by the military.
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In order to form the government, the NLD will require at least 333 seats out of a total 664, which means it
needs not 51 per cent of the vote but a whopping 67 per cent.
On the other hand, the currently ruling Union Solidarity and Development Party (USDP) of President Thein
Sein would need just 26 per cent or 173 seats to form a government, as it would automatically get the
support of the military-nominated members.
The all-important Defence and Home portfolios remain with the Tatmadaw (The Myanmar Armed Forces),
regardless of who comes to power.

NEPAL ADOPTS FIRST DEMOCRATIC CONSTITUTION


Nepal adopted its first democratic Constitution, a historic step for a nation that has seen war, a palace massacre
and devastating earthquakes since a campaign to create a modern state began more than 65 years ago.

IMPORTANT FEATURES OF CONSTITUTION

The constitution defines Nepal as a secular country, despite widespread protests for it to be declared a
Hindu state.
Federal system: It creates seven states in a secular, federal system.
Nepals constitution divided the country into seven provinces.
o Kathmandu,
the
capital
district, lies in province No. 2
and except this all other
provinces
have
three
divisions,
geographical
mountain region, hilly region
and southern plains.
Entitlement approach to rights
o Nepals new constitution has
been based on the
entitlement approach to
rights.
o It guarantees fundamental
rights as well as the right to
food, right to education and
right to protection from
environmental degradation. In a move loaded with meaning, the constitution gives right of
protection from human trafficking.
The needs of marginalised communities, including the Dalits, the disabled and those from the LGBT
community, are addressed.
Confirming social and economic rights as fundamental
Rejecting the death penalty
Amendments can be adopted with relative ease over the next two years and four months, as the
Constituent Assembly enjoys a kind of afterlife as a Parliament.

DISCONTENT OVER THE NEW CONSTITUTION:

68

The promulgation happened even as violent protests raged in the Terai against injustice meted out to the
Madhesis.
The protestors were upset that the federal restructuring of Nepal into seven provinces left the Madhesis
divided among five provinces, with only one of them having a majority of plains-origin people.

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Delineation of electoral constituencies in the Terai (where more than 50 per cent of Nepals people live)
which has not been done on the basis of the population in the plains; this creates a grievance about
gerrymandering.
Other complaints relate to citizenship norms that disallow children of Nepali mothers married to foreigners
from inheriting Nepali citizenship.

INDIA GOVERNMENT RESPONSE


According to the government, there are three major problems with the Constitution which prevents India from
warmly welcoming the document.

The federal-provincial demarcation is perceived to be unfair to the people of the Terai region;
Secondly, the constituency delimitation is skewed against the Madhes population as half the population,
that is the Pahadi (Hill) community gets 100 seats but the other half consisting of the Madhesi and the
Janjatis get only 65 seats.
Finally the proportional inclusion clause, for reservation includes many forward castes of the Pahadi region,
which negates the principle of affirmative action.
India also feels let down that many of the commitments given by Nepal during the framing of the 2007
interim Constitution have been forgotten.

SRI LANKAN WAR CRIMES


A U.N. report has identified patterns of grave violations in Sri Lanka between 2002 and 2011, strongly indicating
that war crimes and crimes against humanity were most likely committed by both sides to the conflict.
KEY FINDINGS

The U.N. report accuses government forces and LTTE of sub-human atrocities during war.
Unlawful killings: Sri Lankan forces targeted Tamil politicians, aid workers, journalists while LTTE eliminated
Muslims and Sinhalese.
Deprivation of Liberty: forces used arbitrary arrest, enforced disappearances and extrajudicial killings as a
norm
Gender violence: Lankan forces used rape and sexual violence against men and women as a instrument of
torture.
It concludes that many of the instances established may amount to war crimes or crimes against humanity.
It also records the killing of civilians by the Liberation Tigers of Tamil Eelam, its forced recruitment of adults
and children, and preventing civilians from leaving the conflict zone.

RECOMMENDATIONS
The report recommends the establishment of a hybrid special court, integrating international judges,
prosecutors, lawyers and investigators, as an essential step towards justice.

SRI LANKAN GOVERNMENT RESPONSE:


Sri Lankan government have committed to form domestic judicial mechanism to probe alleged war crimes .

UNHRC RESOLUTION

69

The United Nations Human Rights Council adopted a resolution on alleged human rights violations during the
Eelam War in Sri Lanka.
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The resolution envisages the establishment of a Sri Lankan judicial mechanism to investigate allegations
of violations and abuses of human rights and violations of international humanitarian law.
o The proposed mechanism will include Commonwealth and other foreign judges, defence lawyers and
authorised prosecutors and investigators.
Sri Lanka has co-sponsored the resolution.
The Tamil National Alliance (TNA) described the suggestion of involving the foreign and Commonwealth
jurists as a significant victory for justice.
o

ASEAN TRADE CORRIDOR


China called for the fuller economic integration with the Association of South East Asian Nations (ASEAN),
steered by the Nanning - Singapore Economic Corridor under the framework of the Maritime Silk Road (MSR).

NANNING - SINGAPORE ECONOMIC CORRIDOR

Nanning Consensus to build the Nanning-Singapore Economic Corridor, more formally dubbed as the
China-Indo-China Peninsula International Corridor.
The core initiative aimed at economic integration, would connect eight major citiesSingapore, Kuala
Lampur, Bangkok, Phnom Penh, Ho Chi Minh City, Vientiane, Hanoi and Nanning.
The Nanjing- Singapore corridor will cover two related trajectories. While one line will head towards
Vietnam, the other would be expended to the less developed Laos, Cambodia and Myanmar.
"The China-Singapore Economic Corridor is a transnational land route economic belt which runs through
countries in Indo-China Peninsula.
The Corridor is an important part of the Maritime Silk Road in the 21st Century.

ANALYSIS

Once the corridor enters implementation phase


labour-intensive and resource-intensive
industries would cascade in the direction of Laos,
Cambodia and Myanmar.
Economic integration with ASEAN could ease the
tension in South China Sea.
The corridor is being structured to help China to
shift its excess manufacturing capacity to the less
developed zones in the ASEAN.
It also aims to reduce the influence of USA that is
proposing economic integration through The TransPacific Partnership, or TPP.

EUROPES REFUGEE CRISIS


According to the International Organization for
Migration (IOM), more than 3,50,000 migrants and
refugees have tried to cross the Mediterranean sea into
Europe.
The U.N. says 2,500 people have died on the seas so far

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this year. Most of them are from West Asia, particularly from the war-ravaged countries of Syria, Iraq and Libya;
many are also from the disturbed areas of Africa.
A substantial number of refugees are also from Afghanistan and Pakistan

THE ROLE OF THE EURO-ATLANTIC POWERS TO DESTABILIZE WEST ASIA


West Asia in the past was not like this; despite illusive democracy, there was political stability and economic
activities flowed quite smoothly. West Asia was and is geo-economically extremely relevant for the U.S. and its
allies due to having an abundance of energy resources.
It was in pursuance of narrow political objectives that Western powers entered West Asian territories and
destabilised them.

Iraq: Iraq is in ruins, even though it does not possess any weapons of mass destruction.
Libya: Libya was bombed by NATO in 2011 after getting sanctions through the United Nations Security
Council Resolution, 1973, and is currently a battleground for different ethnic groups fighting to capture
political power.
Syria: There is enough evidence to prove that on the pretext of supporting pro-democratic forces in Syria,
western powers ended up helping the radical groups, providing necessary fodder for the birth of the deadly
Islamic State.
Yemen: western power supporting the Saudi Arabia led coalition forces that are bombing and destroying
Yemen.
Afghanistan: Afghanistan, also one of the known battlefields of the Cold War, was deserted by the West
after the disintegration of the Soviet Union. But it was revisited post-9/11 by the Euro-Atlantic powers to
destroy Al-Qaedas terror network. Yet, even after the death of Osama bin Laden, political instability
continues in Afghanistan.
Afghanistan is caught in an unending civil conflict and Pakistans socio-economic condition is continuously
deteriorating.

WHY MIGRATION

Endless conflict has ruined the social, political and economical structures of some countries in West Asia,
making it impossible for people to have a secure livelihood. This is what makes people flee their own
countries to other parts of the world, in search of peace, employment and stability.
Freedom from conflict is important reason for large scale migration.

WHY EUROPE

Europe is the closest wealthy, safe and accessible region from the Mideast and Africa.
Also, some European countries are known for welcoming asylum seekers and providing benefits to help
them get started in their new homes.
Europe is the most preferred destination for the people from these fragile regions as it is economically
prosperous, socially secure and has better immigration laws.
Europe is experiencing one of the most significant influxes of migrants and refugees in its history.

HOW IS EUROPE RESPONDING

71

Faced with a situation of a heavy influx of refugees, Europe is unwilling to welcome people into its territory.
European countries disagree about how to handle the crisis. Southern countries like Greece and Italy want
other countries to take them in. European Union rules say migrants should be settled where they first land,
but now enforcement of those rules is becoming impossible.
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The European Union has unveiled a refugee quota plan to address the crisis, but is already facing opposition
from eastern members

ANALYSIS

Their irresponsible acts for achieving narrow political objectives have destabilised West Asia, and now
European countries cannot turn their backs to the problems of the refugees.
In this regard, it is also crucial for the EU to involve the U.S. Similarly, the stable countries of West Asia
should be contacted to provide some respite to these refugees.
If the goal is to stop the migration, that would require ending the conflicts in Syria, Iraq and elsewhere.

ATTACKS ON BLOGGERS IN BANGLADESH:


Many bloggers have been attacked by intolerant Islamic fundamentalists affiliated to various militant groups.

WHY BLOGGERS

Radicals groups have targeted bloggers for their atheistic and secular views over the last few years.
The bloggers are among those who would want to hold on to the ideal of a secular state that was conceived
after the historic war of liberation against the then West Pakistan in 1971.
The bloggers were supporters of the war crimes trial.
Bloggers are instrumental in shaping public opinion in cyber space against communalism.
Bloggers have criticized militant/ radical groups.

FALL OUT OF WAR TRIAL

Ever since the Sheikh Hasina-led Awami League government in 2010 started the long-pending process of
indictment of Jamaat-e-Islami leaders for the brutal war crimes during the liberation war, the contradictions
have become sharper.
The main opposition, the Bangladesh Nationalist Party, has joined hands with the Jamaat-e-Islami to
unleash violent protests against the government, particularly against the war trial in which several Jamaat
leaders have been indicted.
When one of the leaders, Abdul Quader Mollah, was convicted, spontaneous agitations erupted in Dhaka
culminating in the Shahbag protests in 2013 demanding capital punishment for those convicted for the war
crimes of 1971.

The killing of the bloggers comes against this background.


ANALYSIS

72

Killing of secular bloggers also raises questions about the commitment and capability of the Bangladesh
government in protecting its citizens from organised violence.
By means of the murders the Islamists are sending a message to the government and the public that
anyone who criticises them would face a similar fate.
Government should initiate credible steps to ensure the safety of citizens, particularly the secular bloggers.
Failing to do that would only send a message to the assailants that the authorities tend to tolerate such
attacks.

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U.K.S LABOUR PARTY


In a historic moment for the Labour Party and for British politics as a whole, Jeremy Corbyn, the socialist
candidate in the Labour Partys leadership elections.

POLICIES ADVOCATED BY HIM

Steadfastly opposed to the austerity programme .


Intends to introduce a peoples quantitative easing, which would allow the bank of England to print
money to invest in large-scale housing, energy ,transport etc.
Re-nationalisation of the railways and the energy sector
Corbyn is a staunch pacifist and has long been involved with organization such as the stop the war coalition
and compaign for nuclear disarmament.
Withdrawal of the U.K. from NATO.
Opposition to military intervention in Syria.
The proposal to dismantle the Trident nuclear missile programme.
Corbyn has pledged to do more to address discrimination against women.
Has called for an end to the cuts to public services and welfare that drive women and families into poverty.

CRITICISM OF JEREMY CORBYN

Since being elected leader he has been called a threat to national security by David Cameron.
Critics say he'll make the party unelectable for decade.
Critics within party: Despite a 60 per cent mandate from his party, Mr. Corbyn now faces his real test
maintaining his radical agenda. His popularity among Labour MPs is very low, Only 20 of them voted for him,
and several shadow Ministers resigned after he was elected.

PART OF A WIDER TREND

Mr. Corbyns victory needs to be viewed in the context of a broader phenomenon the leftward shift of the
masses that is happening across the world, especially in Europe.
The powerful showing of the Scottish National Party (SNP) in the recent U.K. elections, the rise of Syriza in
Greece and Podemos in Spain, and the surging popularity of Bernard Sanders in the U.S. are all part of this
wider trend.
The immediate trigger for this shift in Europe is, of course, the austerity imposed in the wake of the 2008
financial crisis.
The other factor is the widespread disenchantment with the choices offered by the political mainstream.

GREEK ELECTION
Alexis Tsipras received the formal mandate to form a government for the second time this year, after his leftwing Syriza party won Greeces early national elections.

REASONS FOR EARLY ELECTION

73

Left-wing Syriza party won the election on the plank of anti-austerity measures. After winning elections in
January, Tsipras left-wing Syriza party promised to end tough austerity measures.
Conditional bail out: Creditor from euro-zone agree to help Greek to tide over economic crisis but it has to
impose certain conditions like
o Impose austerity measures
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o Economic reforms
However these conditions were rejected by Greek voters in referendum. But acceptance of bail out terms by
Alexis Tsipras led to split in Syriza party. Alexis Tsipras resigned and called for early election.

ECONOMIC REFORM
In return bailout, his government will have to impose further austerity as well as undertake a series of economic
reforms.

CONFLICT IN KOREAN PENINSULA


The latest crisis started with a landmine blast in the
demilitarised zone (DMZ) in which two South Korean
soldiers were injured. Seoul retaliated by resuming antiNorth propaganda, which led to shelling from the North
and counter-artillery fire from the South. But the
ultimatum given by North Korea to the South to either
stop its propaganda broadcasts across the
demilitarised zone (DMZ) or face war has raised them
to their highest level in many years.

DIPLOMATIC ENGAGEMENT
After hectic diplomatic engagement both side have
agreed to defuse the present crisis.

Pyongyang expressed regret that two South


Korean soldiers were maimed in a recent landmine
blast.
South Korea, for its part, agreed to halt antiPyongyang propaganda broadcasts on the border.

INTERNAL CRISIS IN NORTH KOREA


The North is going through several internal challenges.

74

At least 70 top-level government officials, including


the Vice-Premier, were reportedly executed since
Mr. Kim took power in 2011, indicating that the
regime is using brute force to sustain itself and silence dissent.
The North Korean state media have confirmed that the country is facing the worst drought in a century.
This spells a major economic crisis.
Western sanctions have crippled the North Korea economy.
Whipping up tensions with the South could be a deliberate strategy on the part of Mr. Kim in order to divert
attention from crucial internal problems.

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HISTORICAL ISSUES BETWEEN NORTH AND SOUTH KOREA

The Koreas are still technically at war, as the 1950-53 Korean War ended with an armistice agreement and
not a proper ceasefire. Since then there have been several incidents of border violence.
While the two countries have not had a full-scale armed conflict since 1953, tensions on the peninsula have
remained high, particularly after the North went nuclear in 2006.
The border is the worlds most heavily armed and there has never been a formal peace agreement ending
the Korean War, so the area is always essentially in a quasi-state of war.

SUSTAINABLE DEVELOPMENT GOALS


The United Nations officially adopted a new set of global goals to combat poverty, inequality and climate
change over the next 15 years in the most comprehensive international effort ever to tackle the world's ills.

WHAT ARE THE SDGS AND HOW WILL THEY BE MEASURED?

The SDGs are a set of 17 goals and 169 targets aimed at resolving global social, economic and environmental
problems.
To be met over the next 15 years, beginning on Jan. 1, 2016, the SDGs replace the Millennium Development
Goals (MDGs) which were adopted in 2000 and expire this year.
Implementation of the new goals, requiring trillions of dollars in investment, will be monitored and reviewed
using a set of global indicators to be agreed by March 2016.

WHO DECIDED THE SDGS?

Governments came up with the idea at the Rio+20 conference on sustainable development in Brazil 2012.

WHAT'S NEW AND DIFFERENT ABOUT THE SDGS?

75

The United Nations says the SDGs go much further than the previous goals, because they address the root
causes of poverty and pledge to leave no one behind, including vulnerable groups.
They also emphasise the need to tackle climate change urgently and protect the environment through a
shift to sustainable consumption and production, and wiser management of natural resources.
The SDGs are intended to be universal, applying to all countries rather than just the developing world.
They recognise the key role of the private sector in pursuing and financing sustainable development, in
partnership with governments and civil society..

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LIST OF SDGS

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

End poverty in all its forms everywhere


End hunger, achieve food security and improved nutrition, and promote sustainable agriculture
Ensure healthy lives and promote well-being for all at all ages
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Achieve gender equality and empower all women and girls
Ensure availability and sustainable management of water and sanitation for all
Ensure access to affordable, reliable, sustainable and modern energy for all
Promote sustained, inclusive and sustainable economic growth, full and productive employment, and
decent work for all
Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation
Reduce inequality within and among countries
Make cities and human settlements inclusive, safe, resilient and sustainable
Ensure sustainable consumption and production patterns
Take urgent action to combat climate change and its impacts
Conserve and sustainably use the oceans, seas and marine resources for sustainable development
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests,
combat desertification and halt and reverse land degradation, and halt biodiversity loss
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and
build effective, accountable and inclusive institutions at all levels
Strengthen the means of implementation and revitalize the global partnership for sustainable
development.

INDIA AND SDGS


India has not fulfilled the MDGs targets of universal primary school enrolment, empowering women through
wage employment and political participation, reducing child and infant mortality and improving sanitation to end
open defecation as per a UN assessment. So, there are a lot of apprehensions among experts about Indias
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capability to achieve SDGs. There are certain specific issues that may act as major impediment in achieving these
development goals.

Lack of data: India does not have adequate data to frame relevant policy.
Financial resources: India does not have enough financial resources to meet these global development
targets. India currently has only 5 per cent of funds required to implement the SDGs.
Human resources: To achieve the targets require trained/ skilled man power in which India is lacking.
Indias record in policy implementation is not very encouraging. To achieve intended targets require not only
sound policy formulation but effective implementation mechanism

ALSO IN NEWS
CITIZENSHIP FOR RELIGIOUS PERSECUTED PEOPLES
The Union Home Ministry will amend the Citizenship Act, 1955, to grant citizenship to undocumented migrants
who fled religious persecution in Pakistan and Bangladesh. The migrants include not just Hindus but also
Buddhists, Christians, Zoroastrians, Sikhs and Jains.

The Bill will make changes to some provisions in the Foreigners Act, 1946, the Passport (Entry into India) Act,
1920, and the Passport (Entry into India) Rules, 1950.
The cut-off date proposed for victims of religious persecution from Pakistan and Bangladesh who can apply
for citizenship is December 31, 2014. Citizenship by registration (a minimum stay of seven years) and
naturalisation (a minimum of 12 years) will be the two routes.

IMPLICATIONS

The External Affairs Ministry has cautioned the Home Ministry that the move could hurt Indias relations
with its neighbours.
Worries about the impact this would have on relations with Bangladesh at a time when a friendly
government is in place are misplaced.
It will have far-reaching implications in Assam and some parts of north-west India.
Not only Hindus but also various sects of Muslims (Ahmadiyya) also faced religious persecution in Pakistan
and Bangladesh so not providing them citizenship will be seen as anti-Muslim stand of Indian government.

ANALYSIS

77

The real difficulty, however, would be to distinguish between illegal migrants who came to India seeking
work opportunities and a better life, and those who fled Pakistan or Bangladesh fearing persecution
India must remain open to all those seeking refuge, and not just those fleeing religious persecution.
Although not a signatory to the 1951 UN Refugee Convention, under which it would have been obliged not
to send refugees back to a territory against their will if they fear threats to life or freedom.
India cannot escape its responsibilities under the Universal Declaration of Human Rights to respect the
rights and freedoms of all people in its territories. Article 14(1) is categorical in stating that everyone has
the right to seek and to enjoy in other countries asylum from persecution.

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SAFE HARBOR
Safe Harbor is the name of a policy agreement established between the United States Department of
Commerce and the European Union (E.U.) in November 2000 to regulate the way that U.S. companies export
and handle the personal data (such as names and addresses) of European citizens.

UNESCO AWARD
India has won the top UNESCO prize Award of Excellence 2015 for the remarkable conservation efforts of the
majestic Sree Vadakkunnathan Temple in Kerala.

G-20
Economic supremos from the worlds top 20 economies say global growth is falling short of expectations. They
pledged to act decisively to shore up stuttering global growth and to refrain from unsettling currency moves
after China's controversial devaluation.
The group vowed to

To Carefully calibrate and clearly communicate our actions... to minimise negative spillovers, mitigate
uncertainty and promote transparency.
To Refrain from competitive devaluations and resist all forms of protectionism.

WOMEN-20

The worlds 20 leading economies have launched a new grouping (W20) aimed at boosting the role of
women in global economic growth.
The group (W20) aims to work toward empowering women and ensuring their participation in economic
growth.

WHITE HOUSE MEDAL


US President Barack Obama has presented the prestigious National Humanities Medal to Pulitzer Prize winner,
Jhumpa Lahiri, in recognition of her beautifully wrought narratives of estrangement and belonging which
highlight the Indian-American experience.

PARADE TO COMMEMORATE WW II VICTORY

78

China held a massive military parade to commemorate the 70th anniversary of the victory against Japan in
the World War II at the sprawling Tiananmen Square here.
Chinas first military parade aimed at highlighting the excesses committed by Japanese troops against
Chinese in the WW II.
India was represented by Minister of state for External Affairs. India had played a sterling role in defeating
Japanese militarism, by contributing forces and keeping supply lines open to the Chinese resistance through
the Assam-Burma Stilwell road during World War II.

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TIBET AUTONOMOUS REPUBLIC (TAR)

China celebrated the 50th anniversary of the formation of the Tibet Autonomous Republic (TAR) by sending
a powerful message of unity, along with an advocacy of fusing religious and socialist values.
China has been focusing on a cultural renaissance based on the revival of Buddhism, Confucianism and
Taoism.
Chinese President has advocated for promotion of Marxist values to shape peoples views on ethnicity,
religion and culture.
China says Tibet became a part of the country by peaceful liberation when Chinese troops invaded the
Himalayan plateau in 1950 establishing Beijings control over it
The Tibet Autonomous Region was founded on September 1, 1965, after the establishment of the regional
Peoples Congress, the local legislature.

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form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
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VISIONIAS
www.visionias.in

CURRENT AFFAIRS
OCTOBER 2015

Copyright by Vision IAS


All rights are reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
IAS.
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TABLE OF CONTENTS
1. POLITY AND GOVERNANCE __________________________________________________________ 6
1.1. Center-State Relations __________________________________________________________________ 6
1.2. Defence ______________________________________________________________________________ 7
1.3. Fundmental Rights/ DPSP/ Fundamental Duties _____________________________________________ 8
1.4. Good Governance and Human Rights ______________________________________________________ 9
1.5. Judiciary ____________________________________________________________________________ 16
1.6. Other_______________________________________________________________________________ 18
1.7. State Governments ___________________________________________________________________ 19
1.8. UNION GOVERNMENT _________________________________________________________________ 20
1.9. MISCELLANEOUS _____________________________________________________________________ 22

2. INTERNATIONAL RELATIONS ________________________________________________________ 24


2.1. Kaladan Multi-Modal Transit Transport Project _____________________________________________ 24
2.2. Chinese dam on Brahmaputra ___________________________________________________________ 25
2.3. Nawaz Sharifs four-point peace proposal _________________________________________________ 25
2.4. India and Seychelles ___________________________________________________________________ 26
2.5. Nepal china fuel deal _________________________________________________________________ 27
2.6. Crisis in Maldives _____________________________________________________________________ 27
2.7. 3rd India-Africa Forum Summit __________________________________________________________ 28
2.8. India-Germany Relation ________________________________________________________________ 29
2.9. Trans-Pacific Partnership _______________________________________________________________ 31
2.10. US-Japan-India trilateral meet__________________________________________________________ 32
2.11. Indias new strategy towards Pakistan ___________________________________________________ 32
2.12. India-Sri Lanka joint training exercise " Mitra Shakti-2015" __________________________________ 33
2.13. Indo-China Joint Military Exercise HAND-IN-HAND 2015 _____________________________________ 33
2.14. India-Indonesia maritime exercise ______________________________________________________ 33

3. ECONOMY _______________________________________________________________________ 34
3.1. INDIA climbs 16 places in WEFs Global Competitiveness Index ________________________________ 34
3.2. Vodafone wins transfer pricing tax dispute case ____________________________________________ 35
3.3. Gap between Rural and Urban Inflation: __________________________________________________ 36
3.4. Ease of doing business: India moves up ___________________________________________________ 37
3.5. World Bank Report on global poverty _____________________________________________________ 38
3.6. Base Erosion and Profit Shifting (BEPS) project- Impact on India _______________________________ 39
3.7. Nobel prize in economics _______________________________________________________________ 40
3.8. Domestic Natural Gas Pricing ___________________________________________________________ 41
3.9. Pulse price rise _______________________________________________________________________ 41
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3.10. Also in news ________________________________________________________________________ 42

4. SOCIAL ISSUES____________________________________________________________________ 44
Child _____________________________________________________________________________ 44
4.1. SDG and Child ________________________________________________________________________ 44
4.2. Beti Bachao Beti Padhao _______________________________________________________________ 45
4.3. Guidelines Governing Adoption of Children 2015 ___________________________________________ 46

Health ____________________________________________________________________________ 46
4.4. Mental Health _______________________________________________________________________ 46
4.5. Mission Indradhanush _________________________________________________________________ 47
4.6. PM Swasthya Suraksha Yojana __________________________________________________________ 48
4.7. IT solutions to combat disease __________________________________________________________ 48
4.8. Infection Control _____________________________________________________________________ 48
4.9. Rashtriya Swasthya Bima Yojana (RSBY) ___________________________________________________ 49
4.10. Rashtriya Arogya Nidhi _______________________________________________________________ 50
4.11. College degree in Community Health ____________________________________________________ 50
4.12. State of the World's Antibiotics Report, 2015 _____________________________________________ 50

Human Resource____________________________________________________________________ 51
4.13 School Education in India ______________________________________________________________ 51

Other _____________________________________________________________________________ 52
4.14. Human Trafficking ___________________________________________________________________ 52
4.15. Caught in a Vicious Cycle of Bonded Labour _______________________________________________ 52

Poverty and Exclusion _______________________________________________________________ 53


4.16 Role of methodology on Poverty estimation: World Bank Report ______________________________ 53
4.17. Nutrition Monitoring in India __________________________________________________________ 54
4.18. First project under Housing for All Mission cleared _________________________________________ 55
4.19. 2015 Global Hunger Index and India _____________________________________________________ 55

SC/ST/OBC/Minorities _______________________________________________________________ 56
4.20. Crimes against Dalits _________________________________________________________________ 56

Legal protection: ___________________________________________________________________ 57


4.21. National Tribal Advisory Council ________________________________________________________ 57

Women ___________________________________________________________________________ 57
4.22. Initiatives for Women Empowerment____________________________________________________ 57
4.23. SDG and Women ____________________________________________________________________ 58
4.24. Crime against women ________________________________________________________________ 59
4.25. Women in Armed Forces ______________________________________________________________ 61
4.26. Sex Ratio ___________________________________________________________________________ 61
4.27. Surrogacy in India____________________________________________________________________ 62
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5. SCIENCE AND TECHNOLOGY _________________________________________________________ 64


Defence ___________________________________________________________________________ 64
5.1. INS Astradharini ______________________________________________________________________ 64
5.2. Worlds Highest Terrestrial Research Centre _______________________________________________ 64
5.3. Make in India - light military choppers ____________________________________________________ 65
5.4. Nirbhay Missile_______________________________________________________________________ 65

IT ________________________________________________________________________________ 65
5.5. Project Loon _________________________________________________________________________ 65
5.6. Tsunami early Warning system __________________________________________________________ 66
5.7. Electricity from Photosynthesis __________________________________________________________ 67

Other _____________________________________________________________________________ 67
5.8. Whitefly Problem _____________________________________________________________________ 67

Space _____________________________________________________________________________ 68
5.9. GAGAN _____________________________________________________________________________ 68
5.10. KISAN (Crop Insurance using Space Technology and Geo-informatics) __________________________ 69
5.11. Road Assets Management System ______________________________________________________ 69
5.12. TRAI proposal: Mandatory GPS in all mobiles _____________________________________________ 69
5.13. NASAs Space Launch System (SLS) ______________________________________________________ 70
5.14. Nobel Prize in Chemistry for 2015 _______________________________________________________ 70
5.15. Nobel Prize in Physics for 2015 _________________________________________________________ 71
5.16. Call Drop Issue: The problem of call drops worsening over the last few months __________________ 72
5.17. Nobel Prize in Physiology______________________________________________________________ 72
5.18. Flyte Levitating light using Teslas technology _____________________________________________ 73

6. INTERNAL SECURITY/LAW AND ORDER ________________________________________________ 74


6.1. Spy cam Project ______________________________________________________________________ 74
6.2. Police Citizen Portal ___________________________________________________________________ 74
6.3. Internet Surveillance __________________________________________________________________ 75

7. ECOLOGY AND ENVIRONMENT ______________________________________________________ 77


7.1. The Public Liability Insurance (PLI) Act, 1991 _______________________________________________ 77
7.2. Climate Change - effect on Antarctic Ice Sheet ______________________________________________ 77
7.3. National Mission for a Green India _______________________________________________________ 77
7.4. Climate Special Science Express _________________________________________________________ 78
7.5. US-China Climate Deal _________________________________________________________________ 78
7.6. IUCN Red List ________________________________________________________________________ 79
7.7. Carbon Tax __________________________________________________________________________ 79
7.8. Vulnerability of Tea industry w.r.t. climate change __________________________________________ 80
7.9. Green Bond Market ___________________________________________________________________ 80
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7.10. NGT order regarding banning old vehicles ________________________________________________ 81


7.11. India's commitment to climate change ___________________________________________________ 81

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1. POLITY AND GOVERNANCE


1.1. CENTER-STATE RELATIONS
1.1.1. ARTICLE 370
Background:

Jammu and Kashmir High Court (on 12 Oct 2015) has ruled that Article 370 has assumed place of
permanence in the Constitution and the feature is beyond amendment, repeal or abrogation.
The High Court also said that Article 35A gives "protection" to existing laws in force in the State. "Article 370
though titled as 'Temporary Provision' and included in Para XXI titled 'Temporary, Transitional and Special
Provisions' has assumed place of permanence in the Constitution,"
The Supreme Court on 31 Oct 2015 said that only Parliament can take a call on scrapping Article 370 that
accords special autonomous status to Jammu and Kashmir.

About Article 370:

Article 370 of the Indian Constitution is a 'temporary provision' which grants special autonomous status to
Jammu and Kashmir.
Except for defence, foreign affairs, finance and communications, the Parliament needs the state
government's concurrence for applying all other laws.

Special Status to State:

Legislative powers: The state's residents live under a separate set of laws, including those related to
citizenship, ownership of property, and fundamental rights, as compared to other Indians.
Territory: Indian Parliament cannot increase or reduce the borders of the state and Indian citizens from
other states cannot purchase land or property in Jammu & Kashmir.
Emergency Provisions:
o The Union government cannot declare emergency on grounds of internal disturbance or imminent
danger unless it is made at the request or with the concurrence of the state government.
o Centre can declare emergency in the state only in case of war or external aggression.
o The Center has no power to declare financial emergency under Article 360 in the state.
Constitutional Amendment: a Constitution amendment becomes applicable to J&K only after the President
issues an order.

Can Article 370 be Revoked Unilaterally?

According to the clause 3 of Article 370, The President may, by public notification, declare that this article
shall cease to be operative, provided that he receives the recommendation of the Constituent Assembly of
the State (Kashmir).
Thus, Article 370 can be revoked only if a new Constituent Assembly of Kashmir recommends revocation.
Since the last Constituent Assembly was dissolved in January 1957 after it completed the task of framing the
states Constitution, so if the parliament agrees to scrap Article 370, a fresh constituent Assembly will have
to be formed.
The constituent Assembly will consist of the same MLAs elected to the State Assembly. Simply put, the
Centre cannot repeal Article 370 without the nod of J&K State.

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1.2. DEFENCE
1.2.1. PIRACY HIGH RISK AREA (HRA)

Contact Group of Piracy off the Coast of Somalia (CGPCS)


Some facts on Anti Piracy patrol efforts of
recently announced the exclusion of India's west coast
Indian Navy
from piracy High Risk Area (HRA) after revision of the
limits of the piracy High Risk Area (HRA) with effect from
(a) No. of ships deployed till date for Anti1st December 15.
piracy patrol in Gulf of Aden: 51
It is likely to address some of Indias maritime security
(b) More than 3,100 merchant vessels
concerns, which have been highlighted by the
including foreign flagged ships escorted
Government of India in various forums since 2012.
(c) More than 23,000 Indians on board
these merchant ships escorted safely.
Background: Consequent to the spread of piracy to the
East Arabian Sea, the international shipping industry
extended the eastern limit of piracy HRA in June 2010 to 78oE longitude, thereby including the west coast of
India within the HRA.
Indias concerns: The extension of the eastern limit of
the HRA from 65oE to 78oE led to security concerns on
account of the presence of private security personnel
onboard merchant vessels transiting the piracy HRA,
and the presence of floating armouries off the Indian
coast.
The shipping industry also incurred additional costs for
insurance
and
implementation
of
various
recommendations for transit through the piracy HRA.
Indian Efforts: Affirmative action and increased
surveillance by India contributed towards the decline
of piracy incidents in the East Arabian Sea

Note: You should also know about UNCLOS, EEZ etc.

CGPCS:
The Contact Group on Piracy off the Coast of Somalia, commonly abbreviated as CGPCS, is an international
governance mechanism established in New York on January 14, 2009 to facilitate the discussion and
coordination of actions among states and organizations to suppress Somali piracy.
To date, more than 60 countries and international organizations have become part of this forum, all of which are
working towards the prevention of piracy off the Somali coast.

CSE Mains 2014:


In 2012, the longitudinal marking of the high-risk areas for piracy was moved from 65 East to 78 east in the
Arabian Sea by International Maritime organisation. What impact does this have on Indias maritime security
concerns?

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1.3. FUNDMENTAL RIGHTS/ DPSP/ FUNDAMENTAL DUTIES


1.3.1. UNIFORM CIVIL CODE
Article 44 of the Constitution, which is one of the Directive Principles of State Policy, says: The State shall
endeavor to secure for the citizens a uniform civil code throughout the territory of India.
What it is and present condition:

A Uniform Civil Code essentially means a common set of laws governing personal matters for all citizens of
the country, irrespective of religion.
Currently, different laws regulate these aspects for adherents of different religions. For example: A Christian
man has questioned a provision that requires a Christian couple to be judicially separated for two years
before getting a divorce, whereas this period is one year for Hindus and other non-Christians.

The role of article 14 and 25 in Uniform Civil Code:

By the 42nd Amendment of 1976, India was declared a secular nation. As a result of this, and the
understanding of Article 25, the State and its institutions have not interfered with religious practices,
including in relation to various personal laws.
There is a view that this principle runs contradictory to the idea of secularism which requires the State to be
inert to religious considerations-and not tacitly support them by following a practice of non-interference, no
matter what.
Clause (2) of Article 25 empowers the State to frame any law to regulate or restrict secular activity which
may be associated with religious practice-therefore, it is argued, Article 25 is no bar to having a Uniform
Civil Code.
The inconsistency in personal laws has been challenged on the touchstone of Article 14, which ensures the
right to equality. Litigants have contended that their right to equality is endangered by personal laws that
put them at a disadvantage.

Why in news:

On 12 October 2015, A Supreme Court bench questioned the government about its mandate on framing the
Uniform Civil Code so that unvarying standards are ushered in and all religions are regulated by the same
yardsticks in matters of law.

Benefits of Uniform Civil Code:

All the laws related to marriage, inheritance, family, land etc. would be equal for all Indians.
It will help in improving the condition of women in India. Indian society is patriarchal and by allowing old
religious rules to continue to govern the family life, condemns all Indian women to subjugation and
mistreatment.
It will help the society move forward and take India towards its goal of becoming a developed nation where
women are treated fairly and given equal rights.
The various personal laws have loop holes exploited by those who have the power. Informal bodies like
Panchayats continue to give judgments that are against our constitution. Human rights are violated through
honor killings and female feticide throughout our country.
It will also help in reducing vote bank politics. If all religions are covered under the same laws, the politicians
will have less to offer to communities in exchange of their vote.
It will help in integration of India - A lot of the animosity is caused by preferential treatment by the law of
certain religious communities.
This could in time induce custodians of faith to look inwards and seek to codify and reform age-old personal
laws in conformity with current modernizing and integrative tendencies or risk losing their flock.
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Challenges in implementing Uniform Civil Code:

India has a strong and long history of personal laws and it cannot be given up easily.
A broad consensus must be drawn among different communities to facilitate such a landmark step in Indias
religious, social, political and most importantly judicial history.
The biggest obstacle in implementing the UCC, apart from obtaining a consensus, is the drafting. Should UCC
be a blend of all the personal laws or should it be a new law adhering to the constitutional mandate? There
is a lot of literature churned out on UCC but there is no model law drafted.

Way forward:
Take an evaluation survey of all communities to suggest reforms within personal laws on modern and liberal
lines. Communities should be convinced that UCC is to bring reforms not suppress them. There is a need of
piecemeal reform rather than a holistic reform starting with what minorities are most comfortable of doing away
with.

1.4. GOOD GOVERNANCE AND HUMAN RIGHTS


1.4.1. SWACHH BHARAT ABHIYAN (SBA)

Launched on 2 October 2014 at Rajghat, New Delhi.


Massive mission that seek to create a Clean India by 2019, 150th birth anniversary of Gandhi.
Covers 4041 statutory towns and rural India.

Objectives of Swachh Bharat Abhiyana:

Earlier Campaigns aimed at Cleanliness

Elimination of open defecation


Conversion of unsanitary toilets to pour
flush toilets (a type of pit latrine, usually
connected to two pits)
Eradication of manual scavenging
100% collection and processing/
disposal/ reuse/ recycling of municipal
solid waste.
A behavioral change in people regarding
healthy sanitation practices.
Generation of awareness among citizens
about sanitation and its linkages with
public health.
Supporting urban local bodies in
designing, executing and operating
waste disposal systems
Facilitating private-sector participation in
sanitary facilities.

Central Rural Sanitation Programmme : Started in 1986 to


provide sanitation facilities in rural areas and also to
provide privacy and dignity to women.
Total Sanitation Campaign: Launched in 1999 ,in this
program, the concept of sanitation was expanded to
include personal hygiene, home sanitation, safe water,
garbage disposal, excreta disposal and waste water
disposal.
Nirmal Bharat Abhiyan: Encouraged by the success of
NGP, the TSC was renamed as Nirmal Bharat Abhiyan
(NBA) in 2012. On 2 October 2014 the campaign was
relaunched as Swachh Bharat Abhiyan (Gramin).

capital expenditure and operation and maintenance costs for


Program Components:

Performance of SBA:

1. Swachh Bharat Mission for Urban Areas


2. Swachh Bharat Mission (Gramin)
3. Rashtriya Swachhta Kosh

The one-year target for urban areas was to finish


constructing.
25 lakh individual toilets,
1 lakh community and public toilets,
achieve 100 per cent collection and transportation of waste in 1,000 cities and
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100 per cent processing and disposal of waste in 100 cities.


Only 20-25 percent of the target in terms of toilet construction has been achieved while on the garbage
management front also, performance is abysmally low.
The government claimed that it has constructed more than 80 lakh toilets in rural India in this period.
However, the numbers are not exactly an indicator of the success of the Swachh Bharat Mission alone as it
includes toilets constructed under several ongoing schemes such as the National Rural Employment
Guarantee Act and the Indira Awaas Yojana.

Why construction of toilets may not achieve open defecation?


Evidences from independent researchers all agree that many people in rural India do not want to use the
latrines that the government is scaling up to build.
They defecate in the open even if they have one. This is
Mysore Case study - Swachh Street Food
despite the fact that such latrines are an improvement on
the basic design endorsed by the World Health
The Government launched Swachh
Organization (WHO) and are widely used in countries
Bharat Ranking for 476 cities in which
much poorer than India.
Mysore topped the list.
A range of qualitative and statistical evidence agrees that
Mysuru City Corporation under the
such latrines do not fit well with the culture of purity and
National Urban Livelihood Mission
pollution that also underpins the caste system.
(NULM) has launched a new initiative People are reluctant to accumulate faeces in latrine pits
Swachh Street Food.
near their homes; they believe that latrine pits will fill up
Under this initiative, two food zones will
more quickly than is actually the case; and they are
be developed and street food vendors
worried about how latrine pits will be emptied.
will be allocated space provided they
Getting a latrine pit emptied in rural India is seriously
fulfil certain conditions.
complicated due to caste system.
The food zones will have facilities such as
temporary structures for vending food,
Way Ahead:
potable drinking water, seating area,
toilets, among others.
Whether it is solid waste management or open
This is perhaps to rehabilitate street
defecation, there needs to be focus on behavioural
food vendors evicted in Swachh Bharat
change along with providing physical infrastructure.
Abhiyan.
An independent monitoring survey mechanism should be
in place to check cases of corruption. For instance- In
some villages, different people were found to pose with the same toilet to inflate number of toilets
constructed.
Focus should not only be on completing numbers of constructed units but the qualitative change needs to be
brought into the society.

Few initiatives for Swachh Bharat:


Cities to be rated for sanitation

The Ministry of Urban Development has commissioned a survey of sanitation scenario to rate 75 major cities
and state capitals.
The survey parameters have been aligned with the objectives of Swachh Bharat Mission with more focus on
solid waste management.
It is considered that poor Solid Waste Management is adversely impacting cleanliness in urban areas

The survey:

10

The proposed survey and subsequent ratings to be completed in January next year
The initiative is aimed at fostering a spirit of competition among the major cities and state capitals to ensure
sanitation in urban areas.
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The parameters include


o
o
o
o

The Solid waste management is being given 60% weightage


The availability and use of household individual toilets and public and community toilets
City level sanitation plans and
Information, Education and Behaviour Change Communication (IEBC) activities.

New Tariff Policy to support Mission:

The New Tariff Policy the Government will make it compulsory for the power plants located within the radius
of 100 kms of the city to use processed waste water and release clean water for drinking purpose in the
vicinity.
It will make compulsory for the local power distribution companies to buy electricity generated from the
waste.

These measures will give a push to Swachh Bharat Abhiyan.

Awareness programs need to be launched to aware people about the benefits of using toilets and weed out
misinformation about use of such toilets and to break traditional practices.
Rather than monitoring how many toilets have been created, a monitoring mechanism should be developed
which reports the level of open defecation gone down; how many toilets constructed are being put to use;
amount of solid municipal waste reduced; percentage of cleanliness achieved etc.

CSE 2006
With reference to the Government of Indias various programmes, what is Nirmal Gram Puraskar?
(a) It is an incentive scheme of scholarships for the single girl child in families in villages.
(b) It is an incentive scheme of scholarships for female sportspersons from villages who represents their states in
any game.
(c) It is an incentive scheme for schools in the villages for computer education.
(d) It is an incentive scheme for Panchayati Raj institutions.

1.4.2. AADHAAR: VARIOUS DIMENSIONS


Background:

Supreme Court on 15th Oct allowed use of Aadhaar cards also for MNREGA, Jan Dhan Yojana, pension and
provident fund schemes. The government and its various regulators such as RBI, IRDA, SEBI, and TRAI moved
the court, requesting it to lift the restraint so that Aadhaar can be used to linking other services as well.
In another interim order on 11 August 2015, the Supreme Court of India ruled that "UIDAI/Aadhaar will not
be used for any other purposes except PDS, kerosene and LPG distribution system" and made it clear that
even for availing these facilities Aadhaar card will not be mandatory.

About Aadhaar:

11

The ambitious scheme of providing unique identity number to the citizens of the country.
Under the Aadhaar scheme, a 12-digit unique number is to be provided to every citizen of the country.

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Function of Aadhar scheme:

Currently there are a plethora of identity documents in India including passports, permanent account
numbers (PANs), driving licenses and ration cards.
The Aadhaar card / UID will not replace these identification documents but can be used as the sole
identification proof when applying for other things.
It will also serve as the basis for Know Your Customer (KYC) norms used by banks, financial institutions,
telecom firms and industry and other businesses that maintain customer profiles.

How Aadhaar can be useful in Election process of India:

The scope of duplication is nil because it uses biometric parameters - fingerprint, iris scan - for creation of
identity
The verification process is easy as election officials require only Aadhaar number for verifying identity
By using Aadhaar, Photo ID card can be phased out, saving cost.
It is possible to enroll a person in a constituency and simultaneously remove his name from different
constituency, thus avoiding duplication and making voter enrollment simpler
Since Aadhaar card can be issued to minors, their incorporation in voter list becomes seamless once they
turn 18 years. It will improve enumerations of 18-25 age group, which is woefully under-enumerated.
In future, it has potential to facilitate e-voting

Aadhaar and Right to Privacy:


Background

There are several instances when Aadhaar card was made mandatory to avail benefits such as opening
account under Jan Dhan Yojana, Passport verification, Provident Fund transactions, LPG benefits, PDS
benefits. However, the orders had to be retracted after protests
In September 2013, the apex court had ordered that no citizen should be denied government benefits for
not having the Aadhar card.
Recently, the Apex Court has permitted voluntary use of Aadhaar card for schemes such as MGNREGA, all
types of pension schemes, PMs Jan Dhan Yojana and EPF.
The Supreme Court in 2015 told the government to give wide publicity in media that Aadhar was not
mandatory to get benefits which are otherwise due to citizens.

Privacy issues with Aadhaar:

12

The largescale collection of biometric data without foolproof security arrangements could result in breaches
of confidentiality.
By asking citizens to part with personal data without any legislative backing for the Aadhar project, the
government is infringing upon their right to privacy.
There are no safeguards or penalties and no legislative backing for obtaining personal information
There are no clear norms and legal provisions to protect the misuse and theft of collected data.
The Unique Identification Authority of India (UIDAI), which administers Aadhaar, operate independent of
parliamentary oversight
On the surface it (Aadhaar) is a simple document of identity, but it has linkages by means of iris scans and
biometric details. What happens in case if identity is exchanged or mistaken is not taken care by
government.
Seeding: It is the introduction of the Aadhaar number into every data base such as gas agency, the bank,
ration card, voter id etc. Once the number is seeded in various data bases, it makes convergence of personal
information remarkably simple. It will enable state and its agencies see the citizen at will.
The Orwellian-type Central Monitoring System (CMS) of Indian government fans suspicion that the state will
use composite Aadhaar data to surveil and profile individuals and groups.

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Governments argument:

Poor renounce their Privacy rights: The Attorney-General argued that the poor, who rely on government for
social benefits, must be prepared to surrender their right of privacy, if any, in order to continue receiving
benefits.
Abandoning Project: It is too late to stop implementation as huge money had been already spent on
Aadhaar and it has accessed 80 crore people.
SC restricting benefits: The restrictions by Supreme Court are coming in the way of crores of Aadhaar
holders who wanted easy access to other social benefits schemes and services
Purely Voluntary: An Aadhaar card holder can block his card along with his demographic and biometric
information if he wants to opt out of the UID system. It is to make enrollment under Aadhaar purely
voluntary.

Way Forward:

The governments most basic obligation is to protect its citizens rights both their right to sustenance and
their right to the privacy that enables freedom equally.
Government cannot adopt the posture that only one aspect of governments protective responsibility
matters that the costs of privacy destruction can be imposed upon the poor in return for social benefit
The ultimate resolution of this present controversy must recognise both the need for Aadhaar in order to
provide efficient and honest government services to citizens and the need for stringent rules concerning
access to and security of citizens biometric data, in order to preserve their privacy.

What the country needs is not only a safe means of digitizing citizens identity particulars but also a
comprehensive law to protect their privacy and personal data from unauthorized surveillance and misuse. By
making it a priority to codify both a right to privacy that explicitly outlines a framework for the operation of data
collection agencies and the UIDAI, the government can remove the uncertainty that plagues Aadhaar and enable
it to realise its full potential.
Aadhaar based subsidy transfer for fertilizers in limbo:

Government of India had taken decision to give direct cash subsidy for fertilizers in 2012 itself.
But it has not been implemented till now.
Identifying the actual beneficiaries- Most of the farming in India is done on contract basis which is also
known as tenant farming.
Problem of absentee landlords has compounded the issue of identifying beneficiaries.
Land records are not in maintained in a format to facilitate identification process, further causing delay.
The current system is based on fund transfer once fertilizer moves from plants to whole-sellers and
warehouses. The government wants to link subsidy to sales rather than current system. But the government
does not have data on how much is actually sold in the market.
The Supreme Court in its interim order restricted the use of Aadhaar to paying subsidies for the PDS and
cooking gas.

1.4.3. CRIMINAL JUSTICE SYSTEM OF INDIA


Facts and Figures:

According to The National Crime Records Bureau figures for 2014, almost 68 per cent of the inmates of
Indias overflowing prisons are undertrials, and 70 per cent of those convicted are illiterate.
Affluent states like Goa, Punjab, Gujarat and Haryana top the list of states with the highest percentage of
undertrials who have been in prison for more than three months.

Challenges:

13

The disproportionate number of undertrials shows inefficiency of criminal justice system


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It is highly prejudiced against minorities and vulnerable section given they are over-represented among
undertrials in Indian prisons.
The infrastructural flaws and deficiencies has kept the cost of justice is prohibitively high
The unreformed mindsets and lack of sensitivity to social issues among public officials contribute to the
entrenched prejudices.
Delays in investigation slow down the trial process. The police force in most states is understaffed, short on
equipment, ill-trained in modern investigation methods and all too vulnerable to political interference and
control.
The Muslim representation is at an abysmal 6.5 per cent.

Way Forward:

In 1987, the Law Commission, recognising that the low judge-to-population ratio is leading to pendency in
courts, had recommended that India raise the number of judges from an average of 10 judges for a million
people to 50 for a million. In the quarter-century since, the ratio has not improved.
Physical infrastructure needs to be expanded and the necessary support staff be provided to declog the
system.
The government proposed setting up gram nyayalays1 to ensure that opportunities for justice were not
denied to any citizen by reason of social, economic or other disabilities. The implementation need to be
sped up.
To improve investigation system, police reforms need to be properly implemented.
The police administration need to be provided with more resources - financial and human both for its
effective functioning.

1.4.4. DIRECT BENEFIT TRANSFER


Direct benefit transfer is a new mechanism in which subsidies and benefits are transferred to individuals bank
accounts electronically, minimizing tiers involved in fund flow thereby reducing delay in payment, ensuring
accurate targeting of the beneficiary and curbing pilferage and duplication.
Why in News?

The government said that it has saved Rs. 14,672 crore in a year in LPG subsidy under the direct benefit
transfer scheme for LPG subsidy, called PAHAL.
This saving accrued as a result of blocking of 3.34 crore customers which were either duplicate or fake.

Benefits of Direct Benefit Transfer

Electronic transfer of benefits to beneficiaries bank accounts


Accurate Targeting
De-duplication
Reduction of Fraud
Process Re-engineering of Schemes for simpler flow of information and funds
Greater Accountability

Challenges:

Schemes like MNREGA, IAY etc. have a large number of rural beneficiaries.
Poor coverage of banks in rural areas and poor performance of banking correspondent model

1 Gram Nyayalayas Act, 2008 was enacted for establishment of Gram Nyayalayas or village courts for speedy and easy
access to justice system in the rural areas of India. The Act came into force from 2 October 2009. However, the Act has
not been enforced properly, with only 152 functional Gram Nyayalayas in the country against a target of 5000 such
courts. The major reasons behind the non-enforcement includes financial constraints, reluctance of lawyers, police
and other government officials.

14

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Most of rural beneficiaries have accounts with Post Offices with are still in the process of migrating to core
banking solution.
Every individual to have a bank account and Aadhar number.
Seeding Bank account details with Aadhar numbers.
The Supreme Court, though allowed the Government to use Aadhar number for schemes like MNREGA, Jan
Dhan Yojana, Pension and Provident fund schemes on voluntary basis, the success of direct benefit transfer
hinges a lot on the outcome of ongoing case in the court which has challenged the use of Aadhar for various
schemes.
Centre State coordination as most of the schemes have the state government playing the main role.

Conclusion:
There are challenges, but the benefits offered by Aadhar are enormous. Careful consideration of each of these
challenges and coordination between policy and implementation can go a long way in fulfilling these gaps.
Lessons learnt from pilot projects need to be incorporated in a careful manner. If implemented as planned, DBT
can go a long way in improving governance in India.

1.4.5. RIGHT TO INFORMATION UPDATES


Lowering acceptance of RTI requests at CIC:
Recently, a RTI application revealed the Central Information Commission is accepting very less number of RTI
applications as compared to earlier.

The low acceptance is because of technical


deficiencies in RTI applications.
As a result, the high volume of pending cases before
the CIC has begun to shrink
In addition to this, the CIC does not maintain a
searchable database of all turned down requests for
information, along with reasons for rejection or
return.

Institutional reforms required:

Suspension of Commissioner: During the period of


inquiry, the governor can suspend or even prohibit
the information commissioner from holding office. This issue needs to be addressed as it conclusively
transpires that the actual punishing authority is not the governor but the SC, whereas the appointing
authority is the governor.
Oath to ministers: The form of oath administered to our ministers, requires them to say they will not divulge
any official act unless required in their discharge of official duty. Their oath directly clashes with the RTI Act.
Autonomy: The information commission should become fully autonomous, along the lines of the Election
Commission, and thus becomes a constitutional body

1.4.6. GOVERNMENT ADVERTISEMENTS


The central government sought a review of the Supreme Court judgment which banned the publication of
photographs of political leaders and Chief Ministers in government-issued advertisements.
Governments views:

15

The government is of the view that people have the right to know about government welfare work in a
participative democracy.

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It is contrary to the federal structure of governance to prohibit the publication of the pictures of Chief
Ministers and Governors.

Contrary views:

The advertisement gives mileage to the ruling political party over the political opponents
Such advertisements have the potential to create partisan politics, favouring party in power and putting
Opposition in bad light
Few people sought even ban over photograph of Prime Minister in government advertisements as it
encourages personality cult.

Background:

In May 2015 , the Supreme Court issued guidelines for the publication of government advertisements
It held that publication of photographs of politicians and government functionaries, including Chief
Ministers, defeated the public interest behind advertising welfare schemes and encouraged personality
cults.

1.5. JUDICIARY
1.5.1. NJAC ACT AS UNCONSTITUTIONAL AND VOID

The government moved 99th Constitutional Amendment Bill to establish National Judicial Appointment
Commission.
It was envisaged as an independent commission to appoint and transfer judges of High Court and appoint
judges of Supreme Court of India.
It was composed of three senior judges, two eminent outsiders and the Law Minister.
The constitutional amendment was passed by Parliament and was ratified by 20 states.
However, before it was notified, it was challenged in Supreme Court as an attempt by government to
interfere with the independence of the judiciary.
The motive behind creation of NJAC was to bring reforms in appointment process of Indian higher judiciary

Supreme Court's verdict:

16

The Court by a 4-1 majority, struck down the 99th Amendment.


It concluded that NJAC did not provide an adequate
representation, to the judicial component.
Primacy of the judiciary is required as
The new provision in Constitution are insufficient to
Government is major litigant: Since
preserve the primacy of the judiciary in the matter of
the government is a major litigant,
selection and appointment of Judges
giving it an edge in appointments
It further held that Article 124A (1) is ultra vires the
would amount to fixing the courts.
provisions of the Constitution, because of the inclusion of
Independence of Judiciary: It has been
the Union Minister in charge of Law and Justice as an ex
regarded as basic structure of
officio Member of the NJAC.
constitution and NJAC was termed as
It was held that the amendment impinged upon the
violating the independence of judiciary
principles of independence of the judiciary, as well as,
To enable Separation of Powers
the separation of powers.
between executive and judiciary as
The clause which provided for the inclusion of two
directed by Constitution of India.
eminent persons as Members of the NJAC was held ultra
vires the provisions of the Constitution, for a variety of reasons.
The Supreme Court has proposed the hearing in month of November on ways to improve the functioning of
the collegium system

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Appointment of Judges in India:


The judges of Supreme Court and High Court are appointed by the President on the recommendation of
Collegium. The constitutional provisions related to their appointment are:

Article 124 says the President should appoint Supreme Court judges after consultation with such judges of
High Courts and the Supreme Court as he/she may deem necessary. The Chief Justice of India is to be
consulted in all appointments barring his/her own.
Article 217, which deals with the appointment of High Court judges, says the President should consult the
CJI, Governor, and Chief Justice of the High Court concerned.

Neither of them speaks about collegium system.


Evolution of Collegium System:
First Judges Case, 1981: The Supreme Court ruled that the recommendation made by the CJI to the
President can be refused for cogent reasons, thereby giving greater say to executive.
Second Judges Case, 1993: It is also known as Supreme Court Advocates-on Record Association vs Union of
India. It led to the creation of the collegium system. The Supreme Court said that the Chief Justice of India
should be given the primal role in appointments.
Third Judges Case, 1998: The President K. R.
Venkatachaliah Commission:
Narayanan issued a Presidential Reference to the
The government appointed the Justice M N
Supreme Court over the meaning of the term
Venkatachaliah Commission in 2000 to opine
consultation under article 124 and 217 of Indian
whether there was need to change the collegium
Constitution. In response, the Supreme Court laid
system.
down guidelines for the functioning collegium
system.
The commission opined in favour of change, and
prescribed a National Judicial Appointment
Suggestions for Judicial reforms:
Commission
Vacancies in the Supreme Court and in the High
It has to be consist of the CJI and two seniormost
Courts need to be filled up. Most High Courts are
judges,
the law minister, and an eminent person
functioning with half or one third the sanctioned
from
the
public, to be chosen by the President in
strength
consultation
with the CJI.
The persons of doubtful integrity who might have
been appointed by the mistake of the collegium have
to be weeded out. A method like voluntary retirement could be an option.
The infrastructure in the courts needs improvement - there will not be enough court halls, chambers, or
staff, if all the vacancies are filled.
There needs to be appointment of ad hoc or additional judges to clear pending cases The collegium is
generally reluctant to appoint retiring judges as ad hoc judges.
The Supreme Court should lay down institutional mechanisms for transparent functioning of the collegium.
The Collegium should accept applications for appointments as High Court judges. This is followed in the U.K.
and can be adopted in India too.
There must be full and complete disclosure of relationships and affiliations of applicants to sitting and
retired judges.
Minimum eligibility criteria for consideration need to be laid down, including appearances in important
cases.
All the three organs of the state should introspect as to why there has been no or inadequate representation
in the higher judiciary from amongst women.
Provide a uniform retirement age for judges of the Supreme Court and the High Courts, so that the present
practice of some judges seeking to be in the good books of the members of collegiums is avoided.
A minimum tenure should be provided to the Chief Justice of India and the Chief Justice of High Courts.
Court management should not be vested with Judicial Officers but assigned to trained managers.

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Permanent Commission may be constituted to scrutinize the credentials of candidates and recommend
names to collegium. These Permanent Commissions should also be enabled to scrutinize complaints of
dishonesty and lack of integrity of judges.

Way Forward:

The Supreme Court's judgment was received critically by the Executive. However, instead of seeing the NJAC
verdict as one that leads to a confrontation between the Parliament and the judiciary, the executive must use
this as an opportunity to help the Supreme Court in preparing an institutional design so that appointments are
fair and transparent.

1.6. OTHER
1.6.1. LATEST INITIATIVES IN MGNREGS
Training Barefoot technicians in Civil Engineering:

The Government has decided to train 10,000 young barefoot technicians in the basic concepts of civil
engineering and involve them in planning, doing layout, measuring and supervising MGNREGA works in
2,500 most backward blocks across India.
A Bare Foot Technician is an educated person, identified from the local SC/ST MGNREGA worker households
and specially trained in civil engineering concepts, using the customized training modules
Better training and skills development will not only contribute to creation of durable and good quality works
but also more sustainable maintenance of assets.
It will also provide employment and will give horizontal and vertical mobility to these young women and
men especially to those from vulnerable sections of society.

1.6.2. INDIAN SKILL DEVELOPMENT SERVICES


The Union Cabinet approved the formation of a Group A service for skill development. It will be called the
Indian Skill Development Service
Indian Skill Development Service:

It is a dedicated skill development cadre under Ministry of Skill Development & Entrepreneurship
The officers will be recruited by UPSC possibly by next year (2016 - 17)
The new cadre of officers will run the skill development and entrepreneurship ministry, help implement
various skill and apprenticeship schemes conducted by the ministry as well as those by the Directorate
General of Training
The new service will help formulate skill policies, devise a road map for improving the apprenticeship
system, revamping ITIs and also help revamp course work for various schemes
The officers need to be posted in rural India for a couple of years which will enable them to take decisions
with enough subject knowledge

Benefits:

The new service cadre will enhance the capacity and efficiency of the organization
It will attract the best talent to the skill development administration

CSE 2014
While we found Indias demographic dividend, we ignore the dropping rates of employability. What are we
missing while doing so? Where will the jobs that India desperately needs come from? Explain.
18

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1.7. STATE GOVERNMENTS


1.7.1. RIGHT TO PUBLIC SERVICE ACT
Maharashtra government enacted The Right to Public Services Act, 2015 (the RTS Act) which guarantee time
bound delivery of notified services rendered by the government to the citizen and provides for the punishment
of errant public servants. The Act replaces the earlier promulgated ordinance on the same issue.
Feature of the Bills:

Statutory guarantee for availing services in fixed time frame


It will check corruption, red tape and will bring transparency.
It provides for punishing errant public servants by putting a fine starting from Rs. 500 to Rs. 5000.
It establishes a system of appeals with Right to Service Commission at top with other two tiers- first
appellate and second appellate authorities being occupied by the government of officials- to deal with
grievances under this Act.
It provides for a State Public Service Delivery Committee which will recommend steps to be taken by
government agencies for efficient delivery of notified services.

However, the RTS Act is being seen as a conscious effort to water down the provisions of Transfer and Delay Act,
2006 which provides for stricter provisions for dealing with premature transfer of government officials and delay
or denial of any services or facilities offered by the government agencies.
Challenges:
The Act has been accused of being passed hurriedly without adequate public hearing. Though, this Act is being
compared to the Right to Information Act, it has following concerns

Apart from citizens, government officers can also file appeals- first, second and third, which could wear most
of the applicants.
The first and second appellate authority being officers of government itself, there is no justification for
allowing the designated officers to go in appeal against his/her own superior officer.
Unlike, the RTI Act, first and second appellate authority can issue summons. If citizens do not appear before
authority, they can also issue arrest warrant. Such wide powers may work against a persistent applicant.
This Act provides that erring official will pay the penalty amount, and if not paid by the officer, it will be
deducted by his or her salary automatically. This will lead to problem of tracking of these fines. The RTI Act
provides for automatic deduction from salary.
Section 5(2) of the Act could be interpreted to mean that mere sanctioning of a service on paper would meet
the requirement of the Act, hence this provision needs to be changed appropriately.
Also, there is an explicit provision of penal action on citizens for availing these services on the basis of wrong
or fake documents.
Another problem is that only those services will be covered under this Act which will be notified for the
purpose of this Act.
Citizens Charter under Transfer and Delay Act, 2006 has to cover all the services and facilities. If there is a
difference, it would lead to divergence which would be difficult to resolve.

Way Ahead:
In its present form, this Act will be less useful than Transfer and Delays Act, 2006 which provides for stricter
accountability of government officials and disciplinary action in case of irregularity. The intent of the RTS Act is
good but many provisions as discussed above need to be changed. Otherwise, it would be more beneficial for
the citizens to pressure the government to deliver on the provisions of the Transfer and Delays Act, 2006.

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State Law asked by UPSC:


Comment on the following in not more than 50 words each:
(c)The Bihar Special Courts Act, 2009 and why it has been in news recently?

1.7.2. THREE MORE STATES ROLL OUT FOOD SECURITY LAW

Jharkhand, Telangana and Uttarakhand rolled out the National Food Security Act (NFSA).
NFSA aims to provide subsidized food grains to nearly 67% of the countrys population.

Reasons behind delay in implementation of the Act:

About the scheme:


The NFSA was enacted by Parliament in 2013
and entitles beneficiary households nearly 810
million people to draw 5kg of food grains per
person per month at a subsidized price
of Rs.2-3 per kg. The scheme is expected to
cost the government Rs.1.2 trillion in 2015-16.

Preconditions for the implementation of the Act to


check leakages
o Identification of beneficiaries
o Digitization of records of beneficiaries
o End-to-end computerization of the public
distribution system (PDS)
States have to take a call on whom to include or exclude
under the scheme and many have not completed the process of identifying beneficiaries.
So far, 92% of the records of beneficiaries have been digitized and 18% seeded with the Aadhaar number.
The 18 states and Union territories that have implemented the act include Bihar, Chhattisgarh, Madhya
Pradesh, Maharashtra, Punjab, Rajasthan, Haryana, Himachal Pradesh, Karnataka, Delhi, Tripura, Puducherry
and Lakswadeep.
Of these, two Union territories Puducherry and Chandigarhhave gone a step ahead and implemented
direct cash transfer of PDS benefits.
Some states like Tamil Nadu are not interested as they have a universal PDS and do not want to move
towards a targeted system.

1.8. UNION GOVERNMENT


1.8.1. NEERACHAL NATIONAL WATERSHED PROJECT

20

The development objective of the Neeranchal


National Watershed Project for India is to support
integrated watershed management program (IWMP)
through technical assistance to improve incremental
conservation outcomes and agricultural yields for
communities in selected sites, and adoption of more
effective processes and technologies into the broader
IWMP in participating states.
The Integrated Watershed Management Programme
(IWMP) was implemented since 2009-10 by the DoLR,
for supporting watershed development in 28 States.
From 2015-16 onwards, the IWMP will be
implemented as the Watershed Component of
PMKSY.

Why in news:

The Cabinet Committee on Economic Affairs


(CCEA), has given its approval to implement
the World Bank assisted National Watershed
Management Project "Neeranchal" with a
total outlay of $357 million (Rs 2142.30
crore).
The cost of the project is estimated at Rs.
2,142.30 crore of which the Centre will be
pitching in with Rs. 889 crore while Rs. 182
crore will be provided by the respective
State Governments.

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Need:

Watershed development is critical to Indias development as vast stretches of agricultural land are in rain fed
regions, characterized by extensive land degradation, low rainfall, reduced agricultural productivity, and
higher rates of poverty.
The project will be implemented over a six-year period and will provide technical assistance to the
Government of Indias national Integrated Watershed Management Program (IWMP), which is the second
largest watershed program in the world after China.

Importance of this programme:

The project will strengthen the capacity of key national and state level institutions currently implementing
watershed programs such as the IWMP, including the central Department of Land Resources (DoLR) and the
State Level Nodal Agencies (SLNAs) for more effective planning, implementation, monitoring and evaluation
of their programs.
It will support the preparation of integrated science-based, participatory watershed plans with a greater
focus on water management.
These plans will guide investments to improve more efficient use of water for agriculture, recharge local
groundwater, and enhance the convergence of various programs in order to ensure more effective use of
public resources.
The project will help farmers adopt new soil, water and crop management techniques to increase
vegetative cover, reduce soil erosion, and improve agricultural yields.
It will facilitate access to real time weather forecasts and help farmers adopt climate smart agricultural
practices to mitigate against climate change impacts.
It will also improve rural livelihoods through training, better extension services, and strengthened forward
linkages to markets.
The project approved will support IWMP activities in selected sites in the states of Andhra Pradesh,
Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and Rajasthan.
It will cover about 400 sub-watersheds of about 5,000 ha each and reach approximately 482,000 farmer
households and 2 million people.

Challenges:
However, despite the successes, a number of challenges remain for watershed development to achieve better
outcomes, such as:

Enhanced participation of communities


Building stronger capacities and systems to plan
Implement, monitor and post-project sustainability of local institutions and assets.

These challenges, if not resolved, can result in implementation delays, slow disbursements and benefits.

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1.9. MISCELLANEOUS
1.9.1. RBI ALLOWS NRIS TO SUBSCRIBE TO NATIONAL PENSION SYSTEM

RBI on 29th Oct 2015 allowed NRIs to subscribe to the pension scheme, which is governed and administered
by the Pension Fund Regulatory and Development Authority.
To enable Indians living abroad to access old age income security, Reserve Bank allowed non-resident
Indians (NRIs) to subscribe to the National Pension System (NPS).
NRIs may subscribe to the NPS governed and administered by the Pension Fund Regulatory and
Development Authority (PFRDA), provided such subscriptions are made through normal banking channels
and the person is eligible to invest as per the provisions of the PFRDA Act.
The subscription amounts shall be paid by the NRIs either by inward remittance through normal banking
channels or out of funds held in their NRE/FCNR/NRO account.

1.9.2. E-SAHYOG PILOT PROGRAMME

E-Sahyog is a pilot project designed to eliminate the need of taxpayers physically appearing in front of IT
authorities.
It is aimed at reducing compliance cost, especially for small taxpayers.
Objective of e-Sahyog is to provide an online mechanism to resolve mismatches in Income-tax returns of
those assesses whose returns have been selected for scrutiny, without visiting the Income Tax Office.

1.9.3. "GROW SAFE FOOD" CAMPAIGN

Government has launched "Grow Safe Food" campaign to improve agriculture output without comprising on
nutrition and quality of the produce.
Grow Safe food Campaign has been initiated to create awareness about the safe and judicious use of
pesticides among the various stakeholders.
Government uses various steps for proper use of pesticides by farmers on crops for better growth.
The Ministry of Agriculture has stated in a release that pesticide residue data generated under the
Monitoring of Pesticide Residues at National Level are shared with State Governments and concerned
ministries/organizations to initiate the corrective action for judicious and proper use of pesticides on crops
with an integrated pest management approach and to generate awareness amongst farmers.
The Department of Agriculture, Co-Operation & Farmers Welfare (DAC&FW) emphasizes integrated pest
management (IPM) which promotes biological, cultural and mechanical methods of pest and advocates need
based, judicious use of pesticides.

1.9.4. MID-DAY MEAL RULES, 2015 UNDER NATIONAL FOOD SECURITY ACT, 2013
NOTIFIED
The following are the silent provision of the rules:

22

Every child within the age group of six to fourteen years studying in classes I to VIII who enroll and attend
the school, shall be provided hot cooked meal having nutritional standards of 450 calories and 12 gm of
protein for primary and 700 calories and 20 gm protein for upper primary free of charge every day except on
school holidays.
The School Management Committee mandated under Right to Free and Compulsory Education Act, 2009
shall also monitor implementation of the Mid-day meal Scheme and shall oversee quality of meals provided
to the children, cleanliness of the place of cooking and maintenance of hygiene in implementation of midday meal scheme.

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The Headmaster or Headmistress of the school shall be empowered to utilize any fund available in school for
the purpose of continuation of Mid-Day Meal Scheme in the school in case of temporary unavailability of
food grains, cooking cost etc.
Hot cooked meal provided to children shall be evaluated and certified by the Government Food Research
Laboratory or any laboratory accredited or recognized by law, so as to ensure that the meal meets with the
nutritional standards and quality.
The Food and Drugs Administration Department of the State may collect samples to ensure the nutritive
value and quality of the meals.
If the Mid-Day Meal is not provided in school on any school day due to non-availability of food grains,
cooking cost, fuel or absence of cook-cum-helper or any other reason, the State Government shall pay food
security allowance by 15th of the succeeding month.

1.9.5. NOBEL PRIZE IN LITERATURE 2015

23

The Nobel Prize 2015 in Literature was awarded to Belarusian author Svetlana Alexievic for her polyphonic
writings, a monument to suffering and courage in our time.
Ms. Alexievich is the 14th women Literature Laureate.
Ms. Alexievich, a journalist writer, used the skills of a journalist to create literature chronicling the great
tragedies of the Soviet Union and its collapse- World War II, the Soviet war in Afghanistan, the 1986
Chernobyl nuclear disaster and the suicides that ensued from the death of Communism.
Last years literature award went to French writer Patrick Modiano.

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2. INTERNATIONAL RELATIONS
2.1. KALADAN MULTI-MODAL TRANSIT TRANSPORT PROJECT
Why in news:

The Cabinet, in October, gave its


approval for the revised estimated cost
of INR 2904.04 crore for this project.
The Cabinet had earlier approved the
project at a cost of INR 539.91 crores in
2008. The project was to get
completed by 2013, but it is now
expected to get completed by 2016.

What it is:

The Kaladan
Multi-Modal
Transit
Transport Project is a project that will connect the seaport of Kolkata with Sittwe seaport in Myanmar by
sea; it will then link Sittwe seaport to Lashio in Myanmar via Kaladan river boat route and then
from Lashio on to Mizoram in India by road transport.

Reasons for cost overrun:


Roadblocks like challenging geographical terrain, protests of local people against land acquisition have caused
the project to get delayed and resulted in the cost overrun.
Benefits for India:

Current route from North East to Kolkata port via chicken neck faces heavy traffic; cargo via this route takes
many days to reach a port.
This project will reduce distance from Kolkata to Mizoram by approximately 1000 km and cut travelling
time to 3-4 days for transport of goods
Apart from development of North-East region, this route is necessary in case of any conflict with China as the
present route, i.e., chicken neck could be blocked by China in conflict situation.

Delay in project:

Several obstacles have made the execution of the project a tough task.
Not only is road construction taking place in challenging geographic terrain but also local communities are
protesting land acquisition by the government.
Cost overrun: Due to delay in completion the project cost has increased .To speed up the project execution;
government has sanctioned the revised cost estimate.

Its benefits to India:

24

The access to the sea that the project provides its Northeastern states could boost their economies.
It would strengthen Indias trade and transport links with Southeast Asia.
It not only serves the economic, commercial and strategic interest of India but also contributes to the
development of Myanmar and its economic integration with India.
It will be instrumental for act-east policy.
Current route from North East to Kolkata port via chicken neck faces heavy traffic; cargo via this route takes
many days to reach a port.
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This project will reduce distance from Kolkata to Mizoram by approximately 1000 km and cut travelling
time to 3-4 days for transport of goods
Apart from development of North-East region, this route is necessary in case of any conflict with China as the
present route, i.e., chicken neck could be blocked by China in conflict situation.

2.2. CHINESE DAM ON BRAHMAPUTRA


The dam at Zangmu, Tibet in the middle of the Brahmaputra, or Yarlung Zangbo as it is known in China, is now
fully operational.
China has in its current five-year plan also given the go-ahead to start work on three other dams, one of which is
even bigger than the 510 MW Zangmu dam a 640 MW dam scheduled for construction at Dagu, 18km
upstream. Two smaller dams will be built at Jiacha and Jiexu.
The implications of construction of the
dam for India are on several fronts:

It reduces water flow in the river. This


is not so serious if the dams are RoR
(run of river) hydro stations. But if
reservoirs are built, or waters
diverted, it could affect the river's
ecosystem in the upper stretches.
Second, it gives China a stronger say
in water sharing discussions because
it has established claim of use of
these waters.
A huge dam at the Great Bend will
devastate
the
rivers
fragile
ecosystem

destroying
the
magnificent biodiversity of the Assam and Arunachal Pradesh regions.
The dams also raised concerns in India over their ability to release the water in times of conflict which could
pose serious risk of flooding.
India is concerned that if the waters are diverted, then projects on the Brahmaputra, particularly the Upper
Siang and Lower Suhansri projects in Arunachal Pradesh, may get affected.

Agreement between India and China:

India and China had signed an agreement to allow Indian hydrological experts to conduct study tours to
directly monitor the rivers flow in Tibet and to extend provision of hydrological data in the flood season.
During Prime Minister Narendra Modis visit to China, both sides had also agreed to step up cooperation
through an expert-level mechanism on the provision of flood-season hydrological data, emergency
management and other transborder river issues.

2.3. NAWAZ SHARIFS FOUR-POINT PEACE PROPOSAL


Pakistan Prime Minister Nawaz Sharif used the United Nations General Assembly platform to propose a four-step
peace plan with India.

25

To formalize and respect the 2003 understanding for a complete ceasefire on the Line of Control in Kashmir.
To reaffirm that both sides will not resort to the use or the threat of use of force under any circumstances.
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Steps be taken to demilitarize Kashmir.


To agree to an unconditional mutual withdrawal from Siachien Glacier, the worlds highest battleground.

Indias response:
India rejected Pakistan Prime Minister Nawaz Sharifs four-point peace proposal.

External Affairs Minister told the U.N. General Assembly (UNGA) that Pakistan must give up terrorism if it
wanted to improve ties.
Instead of four proposals, India needs only one point: that Pakistan end support to terror groups.
India believe that four point proposals was delivered not directly to India but to the UN, in yet another
attempt to internationalise the issue rather than offering a sincere solution.

2.4. INDIA AND SEYCHELLES


The Union Cabinet gave its ex-post facto approval to the protocol for cooperation in the field of blue economy
which was signed between India and Seychelles during the visit of the President of Seychelles to India on August,
2015.
About protocol:
The protocol lays down the modalities and mechanism of cooperation between the two parties for ocean studies
as well as scientific exploration and exploitation of sea based resources, for sustainable development and
economic purposes.
Importance of protocol:
The cooperation will enhance Indias strategic cooperation in the field of blue economy;

Commercial benefits from export of human resources, expertise and technology and it will increase Indias
access to ocean-based resources in cooperation with Seychelles.
Cooperation with Seychelles in blue economy will provide new data on ocean-based resources and also
provide for sharing of expertise and technology developed by Indian scientists and research institutes.
It will also help domestic innovation in the field of ocean research and technology.

Blue Economy:
Blue Economy is marine-based economic development that leads to improved human well-being and social
equity, while significantly reducing environmental risks and ecological scarcities.
It includes:

26

Reframing the oceans as Development Spaces that are subject to spatial planning.
Making use of that planning to integrate conservation, sustainable use, oil and mineral wealth extraction,
bio-prospecting, sustainable energy production and marine transport
Incorporating the value of the oceans into economic decision-making.
Establishing policies that favor low-carbon, resource-efficient, and socially inclusive development (mirroring
the Green Economy framework in this regard).
Prioritizing the use of the seas to benefit people, alleviate poverty, generate employment, and promote
equity.
Improving relevant international law and governance mechanisms.

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2.5. NEPAL CHINA FUEL DEAL


Nepal and China signed an agreement for supply of petroleum products to the Himalayan nation. China has also
agreed to grant 1.2 million litres of fuel to Nepal to alleviate immediate energy shortfall.
Immediate cause for agreement:

Nepal is facing severe crisis of petroleum products since over a month due to Madhesi protesters opposed to
the new constitution blocking border points with India.
Analysts point out that Indias de facto embargo on oil supplies to Nepal had imparted fresh urgency in
Kathmandu to seek China as an alternative energy supplier.
India has dismissed the allegations of blockade, blaming the trade slowdown on anti-constitution protesters
from Nepals plains hat have blocked or impeded traffic at major border crossings.

Impact on India-Nepal relation:

Nepal has ended the four-decade-old monopoly of the Indian Oil Corporation (IOC) for the supply of
petroleum products to Nepal
Shortage of essential commodities especially petroleum products have sparked anti-India feelings among
Nepalis, eroding the goodwill India had garnered earlier this year by offering rapid and extensive assistance
to the impoverished nation reeling from earthquakes .
The souring of ties represents a setback for Indias efforts to forge closer regional relations and reclaim
Indias standing in South Asia in the face of a growing Chinese presence.

Chinese strategy:

The fuel deal with Nepal feeds into Chinas broader strategic perspective, with Kathmandu as one of the
nodes of the Beijing-led Belt and Road connectivity initiative that would integrate the economies of Eurasia.
Nepal and China have inked a four-point document endorsing the Belt and Road initiative.

2.6. CRISIS IN MALDIVES


The arrest of Ahmed Adheeb, the Vice-President of the Maldives, has escalated the political crisis in this young
democracy, already fragile.
Reason for arrest:
The government said that Adheeb was involved in an explosion on board the presidential boat, and that it was
aimed at assassinating President Abdulla Yameen.
Emergency declared in the Maldives:

27

The Emergency was declared after the Maldives National Defence Force (MNDF) and the Maldives Police
discovered a large cache of arms in different locations.
The Emergency was imposed to pre-empt a mass rally by the main Opposition Maldivian Democratic Party
(MDP).
The rally is aimed at pressuring President to release former president Mohamed nasheed.
The declaration of emergency has raised fears among human rights groups over a fair trial for Mr. Adheeb.
Right groups alleged that the Emergency is just another tool in the hands of the Maldivian government to
crack down on political opponents.

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Sequence of events in Maldives:

In October 2008 the Maldives held free and fair elections which ended the 30-year rule of autocrat
Maumoon Abdul Gayoom.
President Mohamed Nasheed of Maldivian Democratic party (MDP) came to power after elections in 2008 .
Nasheeds alleged order to arrest Criminal Court Chief Judge Abdulla Mohamed, whom he accused of
political bias and corruption, led to weeks of protests.
Nasheed was forced to resign in February 2012, and lost a presidential election one year later to Yameen
Abdul Gayoom.
In the 2013 election, held after the countrys first democratically elected President Mohamed Nasheed
resigned amid protests, the Supreme Court annulled the first round of voting, in which Mr. Nasheed was
leading.
Mr. Yameen, candidate of Progressive Party of Maldives (PPM), clinched an unexpected victory in the
presidential run-off over opposition leader and former president Mohammed Nasheed .
Abdulla Yameen was sworn in as the sixth President of the Maldives.
Nasheed was arrested over the detention of a judge in 2012, was charged under the Anti-Terrorism Act
1990. Nasheed had taken shelter at the Indian High Commission in Male to avoid arrest in connection with
the same case in February 2013.
Mr. Nasheed was jailed for 13 years on terrorism charges. A United Nations panel had ruled the jailing illegal
and called for his immediate release

The Yameen Presidency has been criticised widely for its intolerance of dissent and crackdown on the
opposition.
Analysis:
Mr. Yameen should be ready to change his authoritarian ways, respect the democratic rights of his people, allow
the opposition to operate freely and thereby strengthen the foundations of the young democracy. Only then can
he offer a stable government to his people and save the Maldives from this state of flux.
CSE 2013
Discuss the political developments in Maldives in the last two years. Should they be of any cause of concern to
India?

2.7. 3RD INDIA-AFRICA FORUM SUMMIT


The 3rd India-Africa Forum Summit took place in New Delhi. 41 heads of state and government from 54
countries in Africa were present at Summit. The summit was the largest gathering of foreign dignitaries in New
Delhi since the 1983 Non-Aligned Summit.
Background:

28

India had strong political ties with the continent in the first three decades after Independence. Relationship
was mainly based on the shared struggle against imperialism, colonialism, racial discrimination and
apartheid.
But India lost some momentum in building a stronger partnership with African countries since the 1990s as
the country recalibrated its foreign and economic policies. The idea of the India-Africa summit was first
mooted to arrest this slide and reboot the relationship.
The two previous India-Africa summits were held in 2008 and 2011, in New Delhi and Addis Ababa.

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Convergence of interest-India and Africa:


India and Africa said that the two partners are aligned on the outstanding issues at the World Trade
Organisation (WTO) and are in favour of multilateral trading systems. At the Bali Ministerial in 2013 too,
Africa and India had united in seeking an interim mechanism for safeguarding minimum support prices to
farmers against WTO caps till a permanent solution is found and adopted.
Cooperation to tackle terrorism: India strongly advocated stepped-up cooperation through intelligence
exchange and training with 54 African countries.
Cooperation on climate change between India and Africa, both who had contributed the least to global
warming,
Theres a convergence of interest for reforming the Security Council. It is imperative for both sides to speak
in one voice for Security Council reforms.

Relation between India and Africa:


Economic: Africa is an important trade partner for India. India-Africa trade was worth almost $70 billion in
2014-15, and Indian companies invested some $30-35 billion in the continent over the past decade. While
trade has improved in these ten years, it is still much less than Africas trade with China, which was $200
billion in 2014-15. Besides, China has invested more than $180 billion in Sub-Saharan Africa alone in areas
ranging from energy to infrastructure during the period 2005-2015
People to people contact: There has been a welcome surge in people-to-people contacts as large numbers
of African entrepreneurs, medical tourists, trainees and students have started coming to India and Indian
experts and entrepreneurs have headed there.
Business-to-business links between India and several African nations have become increasingly important
and are driving the government-to-government relationship.
India has offered a new line of credit worth $10 billion to strengthen economic cooperation and called for a
unified stance for the reform of the UN Security Council.
Stronger ties with Africa fit into Indias traditional foreign policy milieu.

Conclusion:
The India-Africa Forum Summit (IAFS) process has shown the promise of Indo-African partnership. Indeed,
the current global economic stagnation only enhances the relevance of a mutual interface between the
worlds fastest growing continent and the worlds fastest growing major economy.
The IAFS process has given a fillip to cultural and informational contacts and mutual awareness.
We should harness our assets in Africa, such as the Indian diaspora there; a growing acceptance of the
quality of our healthcare and educational facilities; relevance of our developmental model; and the greater
willingness of our private sector to engage the continent.
The goodwill India enjoys in the continent is a result of the principled anti-colonial positions the country took
in the post-Independence era. India should cash in on that goodwill to build a stronger economic and
political partnership with Africa in the new century.

CSE 2014
How does India see its place in the economic space of rising natural resource rich Africa?

2.8. INDIA-GERMANY RELATION


Bilateral relations between the Republic of India and the Germany have been traditionally strong due to
commercial, cultural and technological co-operation. German Chancellor Angela Merkel travelled to India for the
Third Indo-German Inter-Governmental Consultations.
29

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A total of 18 agreements were signed, which covered a wide range of topics from skill development to
education, science and technology to aviation.
Promotion of German as a foreign language in India Summary record of the negotiations on development
and the promotion of modern Indian languages in cooperation.
Germany.
Indo-German solar energy partnership.

Skill development, and vocational education and


training.

Security cooperation.

Aviation security.

Disaster management

Cooperation in agricultural studies

Supporting participation of young Indian scientists in Extension of the tenure of the Indo-German Science and
natural sciences for the Lindau Nobel Laureate Technology Centre (IGSTC).
Meetings.
Indo-German Partnerships in higher education (IGP).

Plant protection products

Development of cooperation in the field of railways.

Cooperation in the field of manufacturing.

Setting up a fast-track system for German companies Cooperation in the field of advanced training of
in India.
corporate executives and junior executives from India.
Cooperation in food safety between the Federal Cooperation in food safety between the Food Safety
Institute for Risk Assessment (BFR) and the Food and Standards Authority of India (FSSAI) and the Federal
Safety and Standards Authority of India (FSSAI).
Office of Consumer Protection and Food Safety (BVL).
Highlights of the visit:

30

Germany returned to India a 10th century Durga idol that had gone missing from a temple in Kashmir over
two decades ago.
Fast-track clearance mechanism:
o In a bid to attract German investment, India decided to set up a fast-track clearance mechanism. The
only other such country-specific mechanism is for Japan.
o The fast-track system for German companies will be taken care of by the Department of Industrial Policy
and Promotion (DIPP), and will become operational by March 2016.
The two leaders also underlined the importance of freedom of navigation in international waters and the
right of passage and other maritime rights in accordance with international law, in an apparent reference to
growing Chinese assertiveness in the South China Sea.
Germany has expressed its inability to sign the Mutual Legal Assistance Treaty (MLAT) with India, citing its
provision for death penalty for heinous crimes and terror activities.
India and Germany agreed to resume talks towards a free trade agreement between Asias third-largest
economy and the European Union.
Cooperation in clean energy:

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The two countries agreed on the India Germany Climate and Renewable Energy Alliance a
comprehensive partnership to harness technology, innovation and finance in order to make affordable,
clean and renewable energy accessible to all.
Germany has committed to providing an assistance of over 1 billion Euros for Indias Green Energy
Corridor and a new assistance package of over 1 billion Euros for solar projects in India.

2.9. TRANS-PACIFIC PARTNERSHIP


The Trans-Pacific Partnership (TPP) is a proposed trade agreement among twelve Pacific Rim countries
concerning a variety of matters of economic policy. Its supporters say the pact would boost growth in the U.S. as
well as the Asian economies. The TPP, an ambitious idea pushed hard by President Barack Obama's
administration, would address the "21st century trade issues" such as intellectual property protections, digital
trade rights and protections for investors.

The commercial value of the deal, when it is approved, is immense, tying together as it does almost 40 per
cent of the worlds GDP.
TPP will cover 40 per cent of the global commerce, and will ease trade among the participant countries
Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and
Vietnam.
It seeks to eliminate or reduce about 18,000 tariff and non-tariff barriers.
It also would establish uniform rules on corporations intellectual property, open the Internet even in
communist Vietnam and crack down on wildlife trafficking and environmental abuses.
TPP seeks to frame a new agenda for global trade, requiring countries to commit beyond their existing
multilateral obligations under the WTO as well as the agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS).
Trade in agricultural products among the TPP countries represents $311 billion and the deal is expected to
boost agricultural trade among countries within the TPP area.

Opposition to deal:

It faces opposition inside and outside the U.S. Several members of Mr. Obamas Democratic Party oppose
the deal, saying it would only help American companies send jobs abroad.
Critics in other countries say it would benefit large corporations, particularly American big pharma, with the
common people at the receiving end.
Health advocacy groups say it would reduce access to generic medicines in developing countries; Internet
freedom campaigners see it as a big threat.
Labour unions, environmentalists and liberal activists argued that the agreement favours big business over
workers and environmental protection.
The TPP pushes the envelope on contentious subjects such as intellectual property (IP) rights and the
freedom of multinationals to sue governments. Multinational corporations can cramp and even hinder the
sovereign right of governments to frame regulations in the interest of citizens when they foresee a threat to
their profits.
The Chinese view the TPP as the economic arm of Washingtons China-containment approach.

Implication for India:


India did not attempt to join the TPP for obvious reasons: the possible gains from opening up markets for its
merchandise exports would have been nullified by the concessions that the country would have had to grant in
the realm of intellectual property rights, especially in the important segment of drugs.

31

The TPP has implications for India, too, as experts have predicted the possibility of the proposed pact leading
to trade diversions from India.
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TPP members account for almost 30 per cent of the Indias merchandise exports which could now come
under the shadow of the agreement.
There may also be problems for yarn exports to Vietnam and Malaysia if rules of origin kick in under the TPP
preventing garment manufacturers from importing yarn from other countries.
The trade-pact could have measures that topple Indias capacity to make inexpensive medicines for itself
and patients across the world.

2.10. US-JAPAN-INDIA TRILATERAL MEET


The foreign ministers of India, Japan and the US met in New York in the first such trilateral engagement between
the three countries with an eye on Chinas growing influence in the world.

The foreign ministers underscored the importance of international law and peaceful settlement of
disputes, freedom of navigation and overflight and unimpeded lawful commerce, including in the South
China Sea.
The US maintains the South China Sea is international water, and sovereignty in the area should be
determined by the UN.
With China getting more assertive, the US is looking to marshal allies in the region to take a strategic role.
o Indias participation in this new trilateral forum along with the US and its most important Asian-Pacific
ally marks a new benchmark in Indias integration into the US Pivot to AsiaWashingtons drive to
militarily-strategically isolate and encircle China.
o The US has long been pressing India to join US-led trilateral and quadrilateral initiatives with Japan and
its other key military partner in the region, Australia.
o The U.S. concept of Asia Pivot revolves around isolating China and creating a block of Regional and
Extra Regional 2nd tier powers to strategically suffocate China in the 21st century. These 2nd tier
powers include India, Australia and Japan.
The three Ministers discussed maintaining maritime security through greater collaboration and appreciated
Japans participation in the 2015 Malabar naval exercise. Humanitarian assistance and disaster relief also
featured in the first trilateral ministerial meet.
China had objected to the participation of Japan, Australia and Singapore in Malabar 2007 exercise, which
was hosted by India in the Bay of Bengal.
To promote regional economic linkages, the three Ministers launched an expert-level group on regional
connectivity to identify collaborative efforts, including between south and southeast Asia.

2.11. INDIAS NEW STRATEGY TOWARDS PAKISTAN


Prime Minister has made it clear that he intends to stick to his red lines on Kashmir. So any talks between the
two countries will not be on terms set by Pakistan, which seeks to make Kashmir the central point of such
exercises.

32

Mr. Sharifs reference to Kashmir as a land under foreign occupation, India brought up the condition of
Kashmiris in Pakistan-occupied Kashmir (PoK), saying it was up to Pakistan to vacate Kashmir and not the
other way round.
Indias decision to highlight the atrocities by Pakistani forces in Pakistan occupied Kashmir (PoK) and in
Balochistan is a clear departure from past practice.
The new strategy was seen as the most effective way to counter Pakistans attempts at attacking India.
It remains to be seen whether New Delhis new tack will help tone down Pakistans position on J&K.

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Apprehension with new strategy:


Indias decision to reply to the Pakistani line on Kashmir with counter-allegations on the PoK seems to be a false
step.

Despite all its attempts over the years, Pakistan has been unsuccessful in getting the United Nations or the P5 Security Council members to consider any reference on Kashmir; the subject was last discussed by the
UNSC in 1971.
As an active aspirant to a permanent seat in the Security Council, Indias stature would be enhanced
internationally if it instead sets in motion a bilateral process to resolve issues with its neighbour, with a view
to ending the decades-old dispute.
Critics pointed out that the new policy of highlighting PoK issues could lead to internationalising the
Kashmir issue, which India has avoided for decades.

2.12. INDIA-SRI LANKA JOINT TRAINING EXERCISE " MITRA SHAKTI2015"


The third India-Sri Lanka joint training exercise " Mitra Shakti-2015" culminated at Aundh Military Camp, Pune.
The 14-day joint training included understanding of transnational terrorism, developing interoperability and
conduct of joint tactical operations controlled by a Joint Command Post.

2.13. INDO-CHINA JOINT MILITARY EXERCISE HAND-IN-HAND 2015

The joint Hand-in-Hand counter-terrorism exercises between India and China was held at Kunming Military
Academy in Yunnan province located in southwestern China.
The aim of the exercise is to develop joint operating capability, share useful experience in counter-terrorism
operations and to promote friendly exchanges between the armies of India and China,

2.14. INDIA-INDONESIA MARITIME EXERCISE

33

India and Indonesia expanded strategic and defence ties by jointly conducting an inaugral maritime exercise
in the Andaman Sea.
This was the first bilateral ex
Exercise between both the nations embedded with the element of expanded version of coordinated patrol
(CORPAT),
The two navies have been carrying out Coordinated Patrolling (CORPAT) along the International Maritime
borderline (IMBL) twice a year since 2002 with the aim of keeping this very important part of the Indian
Ocean Region safe and secure for industrial shipping and international trade.

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3. ECONOMY
3.1. INDIA CLIMBS 16 PLACES IN WEFS GLOBAL COMPETITIVENESS
INDEX

India has climbed a spectacular 16 places to the


55th position among 140 economies in this
years World Economic Forum (WEF) Global
Competitiveness Index.

Why improved:

Indias reversal is largely attributable to new


governments pro-business, pro-growth and
anti-corruption stance, which has improved the
business communitys sentiment toward the
government.
The most notable improvements are in the basic drivers of competitiveness, which is good for the
economy, especially the development of the manufacturing sector.
In terms of competitiveness of its institutions, India is ranked 60th (out of total 140 countries and up 10
positions from last year), while for infrastructure it has gained six places to 81st.
The inflation also eased to 6 per cent in 2014, due to lower commodity prices, down from near double-digit
levels the previous year.

What are the areas of Improvement?


India saw improvement in some of the areas like macroeconomic stability, quality if Indias institution, however,
other areas also deserve attention. Some of these are:
1. Technological readiness - India remains one of the least digitally connected countries in the world. Fewer
than one in five Indians access the internet on a regular basis, and fewer than two in five are estimated to
own even a basic cell phone.
2. Labour Market- In labour market efficiency, Indias position is
Global Competitiveness Report (GCR)
very low at 103rd, indicating the need for further labour
and Global Competitiveness Index:
reforms. Restrictive labour regulations, poor work ethics in
labour force, inadequately educated workforce are the areas
1. The Global Competitiveness Report
which needs attention to improve Indias competitiveness and
(GCR) is a yearly report published by the
World Economic Forum.
the ease of doing business in India.
2. Since 2004, the Global Competitiveness
3. Restrictions to doing business- Regressive tax regulations, high
Report ranks countries based on the
tax rates, foreign currency regulations and difficulties in access
Global
Competitiveness
Index,
to financing were also highlighted by the report as the most
developed
by
Xavier
Sala-i-Martin
and
problematic factors for doing business in India.
Elsa V. Artadi.
4. Indias performance in the macroeconomic stability pillar has
3. The Global Competitiveness Index
improved, although the situation remains worrisome (91st, up
measures the set of institutions, policies,
10 places).
and factors that set the sustainable
5. The government budget deficit has gradually dropped since its
current and medium-term levels of
2008 peak, although it still amounted to 7 per cent of GDP in
economic prosperity.
2014, one of the highest in the world (131st).
6. The quality of its electricity supply is still too low (91st)

34

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Other findings:

The list was topped by Switzerland, followed by Singapore, the US, Germany and the Netherlands.
Among the larger emerging markets, South Africa progressed seven places to 49th place, while China held
steady at 28, Indonesia was 37th (down three) and Brazil was 75th.

CSE 2008
India on Global Competitiveness Index-2007

3.2. VODAFONE WINS TRANSFER PRICING TAX DISPUTE CASE

Vodafone India won its battle against the income-tax department


over transfer pricing in the Bombay High Court. The Bombay high
court ruled in favour of the Indian arm of Vodafone Group Plc. in
a Rs.8,500 crore transfer pricing tax dispute.

Background:

The dispute relates to the sale of the Ahmedabad-based call


centre business (Vodafone India Services formerly known as 3
Global Services) for assessment year 2008-09.
The income tax department issued a notice to the company
seeking to add Rs 8,500 crore to the taxable income of 2007-08,
saying it has skirted the transfer pricing rules. In December 2013,
the department sought a tax of Rs 3,700 crore from the company
in this case.
The company approached the Income Tax Appellate Tribunal
against the tax demand, saying it was not an international
transaction and did not attract transfer pricing rules.
But the tribunal ruled in favour of the department on December
10, 2014.

Impact of Judgment:

Verdict is an excellent signal for foreign investors in India.


The verdict augurs well for other foreign companies locked in
similar disputes with the Indian tax department, including Royal
Dutch Shell Plc., International Business Machines Corp. and Nokia
Oyj.
Judgment is in line with governments effort to bring stability and predictability to the tax regime.

Related Info:
Transfer Pricing:

35

The price at which divisions of a company transact with each other is called transfer price. Transactions may
include the trade of supplies, service or labor between departments. Transfer prices are used when
individual entities of a larger multi-entity firm are treated and measured as separately run entities.

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Arms Length:

A transaction in which buyers and sellers of any products act independently and have no relationship with
each other is known as Arms length transaction. The concept of an arm's length transaction is to ensure that
both parties in the deal are acting in their own self-interest and are not subject to any pressure or duress
from the other party.

Indian Laws related to Transfer Pricing:

Income-Tax Act provides that any income arising from an international transaction will be computed having
regard to the arms length price, which will be determined by Central Board of Direct Taxation (CBDT) using
various methods like comparable uncontrolled price method, cost plus method, etc.

Safe Harbour Rules:

The determination of arms length price is subject to safe harbor rules. "Safe harbour" means circumstances
in which the income-tax authorities shall accept the transfer price declared by the assessee.
It is a legal provision to reduce or eliminate liability as long as good faith is demonstrated. Government
looking at lowering safe harbour margins to make it attractive for companies to opt for it and make safe
harbour definition unambiguous bringing in more clarity.

Advance Pricing Agreement:


The CBDT may enter may enter into an advance pricing agreement with any person, determining the arm's
length price or specifying the manner in which arm's length price is to be determined, in relation to an
international transaction to be entered into by that person.
2011 question on similar lines, transfer pricing can be asked.
"Which one of the following is not a feature of Value Added Tax?
(a) It is a multi-point destination-based system of taxation.
(b) It is a tax levied on value addition at each stage of transaction in the production-distribution chain.
(c) It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer.
(d) It is basically subject of the Central Government and the State Governments are only a facilitator for its
successful implementation".
CSE 2010
What is 'Round Tripping' in the context of. FDI inow. and why has it been in the news recently in the case of
India ?

3.3. GAP BETWEEN RURAL AND URBAN INFLATION:

36

As per the inflation report by HSBC while India's underlying inflation momentum at 5.5% but it is higher at
6.5% for rural India while 4.5% for the urban segment.

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Reasons for this gap:

Greater use of non-oil based fuels, where inflation


remains higher, is mostly used in rural homes.
The dramatic fall of oil has pulled down both 'fuel'
and 'transportation' prices. However, the passthrough has been lower for rural India. Food and
others - In case of food, benefits of cheaper imports
are not reaching rural areas as efficiently.
The main reason is the structural disadvantages in
Rural India. Rural India has some structural
disadvantages vis-a-vis urban India: insufficient
transport networks, limited providers and
insufficient competition and distribution channels,
Insufficient investment, growing bottlenecks and
impact of two successive droughts have contributed to lowering rural Indias potential (or trend) growth and
the narrow output gap is keeping core inflation from slowing rapidly in rural areas, despite weak growth.

Way Forward:
Higher investment in rural infrastructure and meaningful agricultural reforms are needed to make growth
weather proof and put it on a higher sustainable path to enable the RBI to meet its 4 per cent inflation target
sustainably.

3.4. EASE OF DOING BUSINESS: INDIA MOVES


UP

India is ranked 130 among 189 countries; an improvement of four


places from last years ranking, according to World Banks Doing
Business Report 2016.
India has recorded the biggest improvement among the South Asian
economy.
India still last among BRICS in ease of doing business ranking.
The improvement in the two indicators, starting a business and
getting electricity pushed India up the ladder.
The number of days it takes to start a new business stood at 29 days
this year.

Areas of worry:

37

Of the 10 parameters, India does very poorly on


twoenforcing contracts and closing a business.
Access to credit for a business has become
marginally more difficult over the past 12 months,
resulting in the ranking dropping six places.
Only Bangladesh fares worse than India among the
eight South Asian countries in the 189 nations on
the list in resolving commercial disputes.

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Cabinet clears two ordinances:

The Cabinet cleared two ordinances for expeditious settlement of commercial disputes that would improve
ease of doing business in the country.
Government cleared ordinances to amend the Arbitration and Conciliation Act and bring into force the
Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015.
Under the proposed amendments to the Arbitration and Conciliation Act, 1996, an arbitrator will have to
settle a case within 18 months. However, after the completion of 12 months, certain restrictions will be put
in place to ensure that the arbitration case does not linger on.

3.5. WORLD BANK REPORT ON GLOBAL POVERTY


Recently, World Bank has released global Monitoring Report for 2014-15 on the Millennium Development Goals.
Some of the findings of the report are

The World Bank has released new estimates that show that fewer than one in 10 people are now living in
extreme poverty.
More than 1.2 billion people have risen above the global poverty line over the past 25 years. This is the
first time in human history that the worst type of poverty looks under control in most parts of the world,
except for some parts of Africa. The world seems to be on course to ending extreme poverty by 2030.
The sharp decline in extreme poverty since 1990 is most clearly linked to the increase in global growth
following the liberalization of most economies.
The spectacular economic success in China is obviously one big reason why global poverty has come down
so rapidly. No country in history has managed to pull so many people out of poverty in such a short period
of time.

Indian perspective:

38

India has been the biggest contributor to poverty reduction between 2008 and 2011, with around 140
million or so lifted out of absolute poverty.
However, even this remarkable feat is not enoughthe report says that in 2011, India accounted for 30% of
those living in extreme poverty in the world.
SriLanka, Nepal and even Pakistan have done a better job of reducing poverty headcount as seen from
below figure.

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Poverty Line:

The bank uses an updated international poverty line of $1.9 a day, which incorporates new information on
differences in the cost of living across countries.
The new line preserves the real purchasing power of the previous line (of $1.25 a day in 2005 prices) in the
worlds poorest countries.

Challenges:
There are three big issues that need to be addressed to achieve the target of stamping out mass poverty by
2030.

Slower economic growth


The rise in inequality in most countries.
More attention should be paid on to poverty in all its dimensions, from education to health to social
mobility.

3.6. BASE EROSION AND PROFIT SHIFTING (BEPS) PROJECT- IMPACT


ON INDIA
Base Erosion and Profit Shifting (BEPS) refers to tax planning strategies that exploit gaps and mismatches in tax
rules to make profit disappear for tax purposes or to shift locations where there is little or no real activity but
the taxes are low, resulting in little or no overall corporate tax being paid. BEPS can be achieved through the use
of transfer pricing mechanism. The BEPS project is led by the OECD and the Group of 20 (G20) countries and it is
a response to the 2008 global financial crisis, and is meant to lay the foundations of sustainable and long-term
economic growth by avoiding policies that promote growth at the expense of other countries.
Background:
It has been estimated that multinational businesses have often used a complex transaction structure to
artificially reduce their outgo on corporate taxes by shifting to jurisdictions with lower taxation. According to
OECD estimates, such tax avoidance has led to a global revenue loss of $100-240 billion every year - as
significantly large as four to 10 per cent of global corporate income-tax revenues.
Recent Action:
Recently, OECD has unveiled 15 action plans under its Base Erosion and Profit Shifting (BEPS) project. It will
undoubtedly create new and formidable challenges for many companies operating in India and abroad.
The 15 action plans approved under the BEPS project will help improve transparency for both businesses and
governments by introducing commonly agreed minimum standards for tax administration across countries.
Impact:

39

Companies will have to adhere to the country-by-country reporting standards for their operations in
different tax jurisdictions.
Indian companies expected to come under the purview of BEPS will have to increase their awareness of the
new regime and start preparing to comply with the new regulations that are likely to be in place from 2017.
They have to bring their accounting systems up to date, improve their compliance mechanisms, particularly
with regard to country-by-country reporting standards and transfer pricing rules, and upgrade the manner in
which they report data.

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3.7. NOBEL PRIZE IN ECONOMICS

The Nobel Prize Committee has awarded the 2015 Nobel in Economic Sciences to Angus Deaton of
Princeton University, for his analysis of consumption, poverty, and welfare."
Angus Deaton, was born in 1945 in Edinburgh, Scotland. He holds both U.S. and British citizenship.

About his work:

His work has relied on household consumption surveys rather than income data. By emphasizing the links
between individual consumption decisions and outcomes for the whole economy, his work has helped
transform modern microeconomics, macroeconomics and development economics. In his work, he has
tried to answer three questions:
How do consumers distribute their spending among different goods?
How much of society's income is spent and how much is saved?
How do we best measure and analyze welfare and poverty?

Importance of data:
Angus Deaton has questioned the quality of data collected in large surveys and suggested ways of improving the
surveys. He has also thought very hard about how these data could or could not be used, how to reduce
measurement errors, and what inferences one can, or cannot, draw from data that might suffer from
measurement errors. For him

Good data is fundamental to good economics.


It helps in verifying governments statistics, and so that the democratic debate within any country can be
informed by the different interpretations of different scholars.
High quality, open, transparent and uncensored data are needed to support democracy.

India Connect:
India has been one of Deatons laboratories. His work has greatly influenced how India maps its disadvantaged
population. For instance, he pointed out how in the 55th Round of the NSS (1999-2000) there were
measurement flaws such as inconsistencies in the recall of consumption expenditure while collecting
data. Incorrectly collected data led to overestimates of consumption and underestimates of poverty, and viceversa. Similarly, his work on price indices and measuring poverty was central to the poverty line drawn by the
Suresh Tendulkar Committee.
Lessons for India:

The central message emanating from Deatons work is that inequalities are often a consequence of
economic growth.
The great escape from poverty and ill-health does not happen without many being left behind.
There are also terrible dangers of inequality. Those who have escaped from destitution use their wealth to
block those who are still imprisoned by it.
Decent education, available and effective healthcare, and functioning sanitation are goods that benefit
everyone, and the new middle class should be more than happy to pay the taxes that help others share their
good fortune.

About Nobel Prize in Economic Sciences:

40

The Nobel Prize in Economic Sciences, officially called the Sveriges Riksbank Prize in Economic Sciences in
Memory of Alfred Nobel, was established in 1968. It was not part of the original group of awards set out in
dynamite tycoon Nobel's 1895 will.

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3.8. DOMESTIC NATURAL GAS PRICING


The government has reduced the domestic natural gas price to $3.82 per million metric British thermal unit
(mmBtu) for the period between October 2015 and March 2016.

According to the new formula, prices are to be revised every six months based on a weighted average of
domestic prices in the US, UK, Canada and Russia.
Sectors such as fertiliser and power generation, which receive domestic gas on priority, will benefit from
the cheaper input.
There are gains on the consumer side but there are growing concerns about the business prospects of oil
and gas exploration and production in India. Lower gas prices are a dampener for investments in the sector.
Lower domestic gas price disincentivises domestic upstream exploration and increases dependency on
expensive LNG imports.
India imports close to 80 per cent of its oil and gas requirement, which, in turn, accounts for almost a
third of Indias overall imports.
One of the key reasons for linking domestic natural gas prices to global prices last year was to incentivise
investment in exploration and production along the Indian coastline and bring down dependence on
imports.

Reasons of depressed gas price:

A shale production boom in the US,


A slide in Russias ruble,
A tumble in crude oil,
A common index for gas rates.

3.9. PULSE PRICE RISE


This year pulses prices, which are significant sources of protein to the Indian population, are going through the
roof. Tur/arhar (pigeon pea) prices in September-October hovered between Rs 132 per kg to Rs 200 per kg. In
the last five years, retail tur prices were ruling in the range of Rs. 74-85 per kg.
Reasons for rise in prices:
Due to fall in domestic output by about 2 million tonnes (mt) to 17.20 mt in 2014-15 crop year owing to deficient
monsoon and unseasonal rains.
Steps already taken:
The government has tried out various policy instruments

41

Restrict/ban exports of these commodities and open up imports at zero duty.


Invoke the Essential Commodities Act (ECA) to impose stocking limits- forcing private trade to liquidate
stocks immediately.
Suspend/ ban forward and futures trading.
Increase in the MSP prices for pulses.
State owned MMTC has imported 5,000 tonnes of tur dal and floated revised tenders for import of 2,000
tonnes of chicpeas and is planning to float fresh bid for overseas purchase of tur dal to boost supply and
make them available to states at subsidized prices.

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Way Forward:

Changes in Trade Policy- To incentivize the peasantry to produce more pulses abolish all export controls on
pulses.
Better Management of Supply Gap to fight price volatility- Abolish stock limits under the ECA. It will
encourage and incentivize the farmers to store not sell off immediately. It will help in building the buffer
stock and most importantly the benefits of this buffer stock will go to farmers not to the hoarders which will
encourage farmers to grow more pulses.
Procurement by Government- There is a procurement arrangement for wheat and rice and not for pulses
and oilseeds. On similar lines, to increase domestic output, government should also put in place a proper
mechanism to procure.
Subsidies - Much of the subsidies on fertilisers, power, and irrigation go to sugarcane, wheat and rice. These
subsidies amount to more than Rs 10,000/ hectare.
Create a buffer stock- Given that domestic consumption of pulses is around 23 million tonnes, buffer stock
of around two to three million is the minimum that is needed to release it whenever pulse prices and hence
stabilise prices spike
The role of commodity exchanges- A robust commodity exchange should facilitate price discovery and spot
prices/ premiums should be reflective of future volatilities. With regulations through the SEBI, the exchange
can act as a messenger of short- to medium-run future prices.
Innovative solutions- soya flour, along with rice, wheat and other pulse flours, can be re-constituted into
pulses. We are surplus in soya, and soya flour has a very high protein content more than 40 per cent
compared to 20-25 per cent for most other pulses. Technology to do this exists and can be tailored to Indian
tastes.

3.10. ALSO IN NEWS


3.10.1. CHINA YUAN OVERTAKES YEN IN GLOBAL PAYMENT RANKINGS:

China's yuan has overtaken the Japanese yen and moved into fourth place among the world's payments
currencies. Yuan held a 2.79 percent share in world payments based on value in August whereas the yens
share was 2.76 per cent.

3.10.2. RBI ALLOWS 90% LOAN TO VALUE RATIO ON HOME LOANS:


The Reserve Bank of India (RBI) increased the amount banks can advance for a property purchase and also
reduced the risk weights attached to some categories of home loans.
New Provisions:

RBI allowed a loan-to-value ratio (LTV) of up to 90% for home loans of Rs.30 lakh or less. Earlier, 90% LTV
was allowed only for loans up to Rs.20 lakh.
If the LTV is between 80% and 90%, the risk weight, attached to such loans will be 50%. If the LTV is below
80% for loans of Rs.30 lakh, the risk weight falls to 35%.

Impact of this decision:

42

At present, property sector is battling to emerge from a prolonged slowdown, with tepid sales and rising
inventory. The slowdown followed a larger economic downturn.
This move will likely make more credit available to borrowers and improve sentiment in a struggling real
estate market.

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3.10.3. MOBILE MANUFACTURING FACILITY IN TIRUPATI

Part of initiatives by Fast Track Task Force (FTTF), set up by the central government to promote mobile
handset manufacturing eco-system in India.
Foxconn has already started operations in Andhra Pradesh for manufacturing brands like Xiomi, Gionee.
Now, four Indian mobile manufacturing companies Micromox, Celkon, Karbonn and Lava have come
forward to set up their units.
The facility/hub will be spread over 60 acres of land and is expected to create more than 10,000 jobs within a
year and contribute at least 5 percent of all-India target of 15 lakh jobs by the year 2019.

3.10.4. AMRAVATI LAND ACQUISITION MODEL


Unique pooling model for land acquisition

43

Instead of a one-off deal, the farmers would get about 30 per cent of the developed land. For every acre or
4,840 square yards that a farmer gives, he will get a developed residential plot of 1,250 square yards and a
commercial plot of another 200 square yards.
The price of the developed land would compensate for the loss of ownership.
Also, farmers will receive Rs 50,000 per acre per year for 10 years for parting with their land. This would
cover the annual income from cultivation, which they have foregone.
The model is being dubbed as fair and participative for farmers and its success can be replicated elsewhere

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4. SOCIAL ISSUES
CHILD
4.1. SDG AND CHILD
4.1.1. SUSTAINABLE DEVELOPMENT GOALS

The Sustainable Development Goals are the set of 17 goals and 169 targets adopted by member countries of
United Nations at the UN Sustainable Development Summit.
The goals are to be achieved by all member countries within next fifteen years i.e. by year 2030.
These goals intend to achieve sustainable development and are more comprehensive than earlier
Millennium Development Goals.

4.1.2. SDGS RELATED TO CHILDREN


Target 2: Zero Hunger

End hunger and ensure access by infants, to safe, nutritious and sufficient food all year round
End all forms of malnutrition, stunting and wasting in children under 5 years of age
Address the nutritional needs of adolescent girls

Target 3: Good Health and Well being

End preventable deaths of newborns and children under 5 years of age,


Reduce neonatal mortality to at least as low as 12 per 1,000 live births and under-5 mortality to at least as
low as 25 per 1,000 live births.

Target 4: Quality Education

Complete free, equitable and quality primary and secondary education leading to relevant and effective
learning outcomes
Access to quality early childhood development, care and pre-primary education so that they are ready for
primary education
Build and upgrade education facilities that are child, disability and gender sensitive
Provide safe, non-violent, inclusive and effective learning environments for all
Equal access to all levels of education and vocational training for the children in vulnerable situations

Target 5: Gender Equality

Eliminate all harmful practices, such as child, early and forced marriage and female genital mutilation

Target 8: Decent work and Economic growth

Prohibit and eliminate of the worst forms of child labour, including recruitment and use of child soldiers,
End child labour in all its forms by 2025

Target 11: Sustainable cities and Communities:

44

Special attention to the needs children in building sustainable transport systems


Universal access to safe, inclusive and accessible, green and public spaces

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Target 16: Peace Justice and Strong institutions


Significantly reduce all forms of violence and related death rates everywhere
End abuse, exploitation, trafficking and all forms of violence against and torture of children

CSE 2013
Identify the Millennium Development Goals (MDGs) that are related to health. Discuss the success of the
actions taken by the Government for achieving the same.

4.2. BETI BACHAO BETI PADHAO


New initiative to spread awareness about Scheme:
The initiative has been launched to generate awareness among 100 million mobile users in India about the
scheme
The private company Celltick uses its
patented Live Screen platform to send
interactive message on mobile phones.
The mobile user can interact with
messages on the homescreen of their
device
It will enable ease of use in accessing
information about scheme
The technology enables to reach users
based on their location as well as their
language of preference.

Beti Bachao Beti Padhao:


It is aimed at promoting gender equality
and the significance of educating girls.
There has been a steady decline in the
Child Sex Ratio across India, with 918
females born per 1000 males as per the Census of 2011.
It is implementing jointly with the Ministry of Health and Family Welfare and Ministry of Human Resource
Development.
The Scheme is targeted at improving the Child Sex Ratio through multi sectoral interventions including
prevention of gender biased sex selection and promoting girls education and her holistic empowerment.

CSE 2008
Decline in the sex ratio in India is an alarming sign for Indias future social development. Discuss.

45

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4.3. GUIDELINES GOVERNING ADOPTION OF CHILDREN 2015


Salient feature of the guidelines 2015 are:

The Main reason being retrograde nature of religion specific adoption laws. It reinforced practices that
were unjust to children and hindered the formation of a Uniform Civil Code.
Prospective Adoptive Parents (PAP): Prospective adoptive parents should be physically, mentally and
emotionally stable, financially capable and should not have any life threatening medical condition. Marital
status or a biological child is not a bar, though a single male cannot adopt a girl child.
Clear and transparent procedure for registration of resident Indians and provision for uploading required
documents online.
PAPs have an option to select an adoption agency of their choice for conducting Home Study Report (HSR)
and preferred State also.
The maximum age of the couple or single parent will depend on the age of the child, but no couple whose
cumulative age is more than 110 years can adopt, nor can a single parent aged 55 years or more.
The minimum age difference between the child and either of the adoptive parents should not be less than
25 years.
A child has to be declared legally free by the Child Welfare Committee to be adopted before he/she is
shown to a couple for adoption.

HEALTH
4.4. MENTAL HEALTH
Need for National Mental Health Policy:

46

Mental health care should be extended beyond institutional care.


The perils of institutional care is evident in the
American mental health system where many
World Mental Health Day 2015
persons in need of mental health are often
consigned to prison-like establishment.
Persons with a mental illness need personal
World Mental Health Day (10 October) is a
attention, security, and psychological care, all of
day for global mental health education,
which can be provided in a range of settings
awareness and advocacy. It was first
including homes, community facilities and even
celebrated in 1992 at the initiative of the
humane, well regulated small sized psychiatric
World Federation for Mental Health.
hospitals.
The theme for this years World Mental
The social mixing of mentally challenged people
Health Day, is "Dignity in mental health".
can demonstrate many gains but it has its own
This year, WHO will be raising awareness of
challenges, particularly with respect to society.
what can be done to ensure that people with
Social Challenges:
mental health conditions can continue to live
o Discrimination, exclusion and abuse
with dignity, through human rights oriented
o Communities and its people segregate,
policy and law, training of health
alienate and precipitate a sense of dyadic
professionals, respect for informed consent
otherness
to treatment, inclusion in decision-making
These challenges are at social level and can best be
processes, and public information campaigns.
tackled by society. It need to nurture tolerance,
embrace differences, and inspire human
connection and create inclusive ecosystem for mental health.

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Mental Health Policy in India:

The Union Health minister on 10th October 2014 launched India's first-ever National Mental Health Policy to
provide universal psychiatric care to the population.
The vision of the policy is to promote mental health, prevent mental illness, enable recovery from mental
illness, promote de-stigmatization and desegregation and ensure socio-economic inclusion of person
affected by mental illness by providing accessible, affordable and quality health and social care to all such
persons through their life-span within a rights-based framework.

Objectives:

To provide universal access to mental health care.


To increase access to and utilization of comprehensive mental health services (including prevention services,
treatment and care and support services) by persons with mental health problems.
To increase access to mental health care especially to vulnerable groups including homeless persons,
persons in remote areas, educationally, socially and deprived sections.
To reduce prevalence and impact of risk factors associated with mental health problems.
To reduce risk and incidence of suicide and attempted suicide.
To ensure respect for rights and protection from harms of persons with mental health problems.
To reduce stigma associated with the mental health problems.
To enhance availability and equitable distribution of skilled human resources for mental health.

4.5. MISSION INDRADHANUSH


Government launched Mission Indradhanush phase-2:
The Union Health Ministry has launched the second phase of
Mission Indradhanush. In this phase, 352 districts have been
selected including 279 mid priority districts, 33 from the
North East states and 40 districts from phase one where
large number of missed out children were detected.
Mission Indradhanush:

It aims to achieve more than 90% full immunization in


the country by 2020
The vaccines covered under the mission are
o Diphtheria
o Pertussis (Whooping cough)
o Polio
o Tuberculosis
o Hepatitis B
o Measles
o Tetanus
In addition to these, vaccines for Japanese Encephalatis and Haemophilus Influenza are also provided in
selected districts

Achievements of Mission Indradhanush - Phase 1:

47

About 2 crore vaccines were administered to the children and pregnant women.
About 75.5 lakh children were vaccinated and about 20 lakh children were fully vaccinated.
More than 20 lakh pregnant women were vaccinated with tetanus toxoid vaccine
To combat the problem of diarrhoea, zinc tablets and ORS packets were freely distributed to all the children
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4.6. PM SWASTHYA SURAKSHA YOJANA


Three more AIIMS-like institutions to be set up:

The Union Cabinet approved setting up of three more AIIMS-like institutions at Nagpur in Maharashtra, at
Mangalagiri in Andhra Pradesh and at Kalyani in West Bengal.
It will take the number of AIIMS-like institutions to eleven
These institutions are set up under the Pradhan Mantri Swasthya Suraksha Yojna (PMSSY)

Pradhan Mantri Swasthya Suraksha Yojna (PMSSY) - Salient Features:

It aims at correcting the imbalances in the availability of affordable healthcare facilities in the different parts
of the country in general, and augmenting facilities for quality medical education in the under-served States
in particular
The scheme was approved in March 2006.
The first phase in the PMSSY has two components - setting up of six institutions in the line of AIIMS; and
upgradation of 13 existing Government medical college institutions.
In the second phase of PMSSY, the Government has approved the setting up of two more AIIMS-like
institutions, and upgradation of six medical college institutions
In the third phase of PMSSY, it is proposed to upgrade more medical college institutions
It is hoped that consequent to the successful implementation of PMSSY, better and affordable healthcare
facilities will be easily accessible to one and all in the country.

4.7. IT SOLUTIONS TO COMBAT DISEASE


IT-based initiative to control malaria:

A first-of-its-kind initiative by the Mangaluru City Corporation to track and control malaria
It uses software developed under a public-private partnership following the guidelines of the National
Vector Borne Disease Control Programme.
The software connects the field workers (who visit households), clinics and laboratories and the officials in
City Corporation.
The clinics, laboratories and hospitals would have to compulsorily feed data on malaria cases reported
following blood tests.
Multi-purpose health workers would have access to this data and they, in turn, will visit houses and areas
from where the cases have been reported.
At present, the reports from field workers and clinics and laboratories reached the civic body a week or a
month after the case is diagnosed. However, this software will help bridge this gap and also in reporting
malaria within 48 hours.

4.8. INFECTION CONTROL


Controlling Hospital-based infection:

48

Recently, Telangana government recognized hospital-based infection as real danger and directed hospitals to
implement measures for controlling healthcare associated infections.
It has been observed that unlike corporate hospitals with national accreditation, government hospitals have
fallen behind in implementing such good practices.
The government hospital in state would have to constitute a Hospital Infection Control Team and set up
Infection Control Committees.

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A dedicated Infection Control Officer (ICO), a microbiologist or epidemiologist will be in-charge of infection
control practices.
The hospitals to have an exclusive biomedical waste management committee that would be in charge of
implementing good practices in management of hospital waste.

National Accreditation Board for Hospitals and Healthcare:

It is an organisation to establish and operate accreditation and allied programs for healthcare organizations
Participation in NABH accreditation program is on a voluntary basis
The board while being supported by all stakeholders including industry, consumers, government, have full
functional autonomy in its operation.

4.9. RASHTRIYA SWASTHYA BIMA YOJANA (RSBY)


An evaluation of the Rashtriya Swasthya Bima Yojana (RSBY) has concluded that the scheme had little or no
impact on medical impoverishment in India.
Findings of report:

Despite high enrollment in RSBY, the


proportion of out-of-pocket expenses
have steadily increased. Between 2004-05
and 2011-12, hospitalization expenses
have increased at high rate.
There is a serious concern of rampant
systemic leakage of resources.
The report pointed out that a major
design flaw in RSBY and other such state
health insurance programmes is their
narrow focus on secondary and tertiary
care hospitalisation.
The study concluded that RSBY was being
used mostly by those who already had
better access (to healthcare services) and the most marginalized sections were being excluded further.

Government proposes changes:

Rashtriya Swasthya Bima Yojana (RSBY) will be restructured to make its coverage wider, intensive and IT
driven.
The restructured scheme, to be coordinated by the Union Health Ministry2, will bring together several
disjointed schemes coordinated by different agencies under one umbrella with more benefits and
beneficiaries.
Those states which want to extend the services to people above poverty line (APL) and provide secondary
and tertiary benefits could do so as a top up of the scheme
An important feature of the new scheme was the strong IT platform which would be created for facilitating
operation of the scheme.
A large database is being created that would detail facilities at every hospitals, disease profile and other
details and would help immensely every stakeholder
The restructured RSBY would cover around 8 to 10 crore BPL people and there will be enhancement of cash
limits for treatment.

2 In the starting RSBY is a project under the Ministry of Labour and Employment. Now it is transferred to
Ministry of Health and family welfare from April 1, 2015

49

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Improved quality, universal coverage, affordability would be the hallmark of the new scheme, which will also
lay stress on preventive medical care
The scheme envisages free medical check-ups once in every three years for the age group vulnerable to
cardiac diseases and diabetes

4.10. RASHTRIYA AROGYA NIDHI

Set up in 1997, it provides financial assistance to patients


living below poverty line and are suffering from major life
threatening diseases related to heart, liver, kidney and cancer
cases, etc.
It enables to receive medical treatment at any of the super
specialty Government hospitals / institutes or other
Government hospitals.
In cases for financial assistance beyond prescribed limit, it is
required to be approved by Ministry of Health and Family
Welfare.

Why in News?
The Union Government has enhanced
the limit of financial assistance under
Rashtriya Arogya Nidhi from Rs. 2 lakh to
Rs. 5 lakh. It will ease access to financial
assistance in cases where emergency
surgery is to be conducted.

4.11. COLLEGE DEGREE IN COMMUNITY HEALTH

Recently, the Union Health Ministry brought a plan to create a specialised cadre of health care workers for
rural areas by instituting a Bachelor of Science in Community Health -- in State universities. The initiative is
aimed to facilitate basic health care for rural population.
Community Health Officers: These community health officers are to be posted at sub-centres functioning
under the Ministry of Health and Family Welfare
B.Sc (Community Heath) course: It will be a three years course in state universities. The emphasis will be on
conducting normal deliveries, pre-and anti-natal care, handling diarrhoea, pneumonia, vaccination, providing
tuberculosis treatment and treatment of fevers and skin infections.
An estimated 600 million people in India, many of them in rural locations, have little or no access to health
care.

Criticism by Indian Medical Association:

The Indian Medical Association is the countrys largest non-government organisation for allopathic doctors
The staff at sub-centres currently work under the supervision of a medical officer posted at primary health
centres. For this purpose, there is no need for a more qualified workforce.
At sub-centre level a more suitable workforce would be an Accredited Social Health Activist (ASHA) worker
with basic primary education and training.
The policy proposal is not based on ground reality and is conceptually wrong.
The Association has also argued that entrusting newly proposed BSc (community health) graduates to
manage very sensitive areas like child health may even worsen the situation.
They warned that these graduates will be ill-equipped and to leave the health of children and adolescents in
their hands is detrimental

4.12. STATE OF THE WORLD'S ANTIBIOTICS REPORT, 2015

50

The report is published by Centre for Disease Dynamics, Economics & Policy: Washington, D.C. It focused on
the greater risk posed by the growing antibiotic resistance all over the world.

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The report indicates that around the world there has been an overall decline in the total stock of antibiotic
effectiveness: resistance to all first-line and last-resort antibiotics is rising.
The patterns of which bacteria are resistant t
Specific antibiotics differ regionally and by country, mirroring patterns of infectious disease and antibiotic
use.

What are Antibiotics?

Antibiotics or antibacterial are a type of antimicrobial used in the treatment and prevention of bacterial
infection.
Since their introduction into medicine in the 1940s, antibiotics have been central to modern healthcare.
Their role has expanded from treating serious infections to preventing infections in surgical patients,
protecting cancer patients and people with compromised immune systems.

How Antibiotic resistance is developed?

Antibiotic resistance is a direct result of antibiotic use. The greater the volume of antibiotics used, the
greater the chances that antibiotic-resistant populations of bacteria will prevail in the contest for survival of
the fittest at the bacterial level. For instance: Escherichia coli (E. coli) and related bacteria have become
resistant to newer third-generation cephalosporins, indicating that they are difficult-to-treat.
Due to indiscriminate use of antibiotics, the bacteria is generating resistance against most available
antibiotics and consequently once-treatable infections are becoming difficult to cure, raising costs to
healthcare facilities, and patient mortality is rising, with costs to both individuals and society.

CSE 2014
Can overuse and the availability of antibiotics without doctors prescription, the contributors to the emergence
of drug-resistant diseases in India? What are the available mechanisms for monitoring and control? Critically
discuss the various issues involved.

HUMAN RESOURCE
4.13 SCHOOL EDUCATION IN INDIA
Poor performance of government schools:
Government schools are mainly attended by those belong to socially and economically marginalized
sections.
The affluent and middle class which used to hold teachers
Survey in UP: NGO Buniyad
and official accountable for standards in government school
has migrated to private schools.
Performance of private schools was
relatively better than government
Measures required:
schools.

Parents
are willingness to pay more for
The state government should establish affordable
better
performing
schools.
residential schools in each districts on the model of Jawahar
for
performing well has
The
incentive

Navodaya Vidyalas. It will increase competition and result in


created
competition
among schools
better performance.
resulting in significant improvement in
The salary of government teachers should have two
quality of education.
components - fixed and variable. The variable component

should depend upon the performance of school and


teacher.
51

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Use of Information Technology and Learning Outcomes:


OECD Report

Computers in schools do not necessarily contribute to higher learning achievement levels by children.
In some East Asian Countries like Japan, South Korea and Singapore where classroom use of computers and
the Internet is relatively limited or minimal, students have achieved consistently high scores over the recent
years.
These countries have better school management system.

Indian scenario:

Since the 1990s, State governments have promoted the use of computers in teaching assuming that
computers enhance childrens academic achievement.
Equipping schools with computers is treated as a reliable short cut to higher quality.
The states like U.P. distributed free laptops to students and later discontinued the practice.
The computer-equipped classrooms requires even more competent teachers to guide students how to find
reliable sources when a variety of sources are available, to develop skills of mindful reading to spot
important points.
The digital environment requires a greater engagement between the teacher and students over any subject
matter. This necessity arises out of the nature of tools involved in the new information and communication
technologies (ICTs).
Children are significantly vulnerable to the cognitive and emotional problems that easy access to the
Internet create. The use of new digital tools for teaching children should be exercised with caution.

Way Forward:

Instead of e-fixation in education sector as a short cut route, better-management systems and more focused
policies are required.
The curriculum policies and examination reforms need to reviewed and aligned with the best international
practices.
The use ICT technology in school will not bring higher learning in itself, it need to integrated with better
teaching staff, more awareness and proper guidance to students of its usage.

OTHER
4.14. HUMAN TRAFFICKING

As per report of the U.N. Office on Drugs and Crime, South Asia reported more than 1.5 lakh victims of
human trafficking in a single year.
The Home Ministry will create a national database of persons involved in human trafficking.
The Home Ministry has been asked to establish an exclusive, specialized agency on the lines of the National
Investigation Agency to probe organized human trafficking cases with jurisdiction across the country.
Funding for the dedicated agency will be initially drawn from the Nirbhaya Fund

4.15. CAUGHT IN A VICIOUS CYCLE OF BONDED LABOUR

52

Debt bondage, though banned by law in 1976, has reinvented itself to adapt to modern agriculture and the
burgeoning informal sector in the new economy.

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A committee headed by a journalist Sivaji Ganesan, submitted its report to Karnataka government which
pointed out the practice of bonded labour being still prevalent in the state, though in a new form where
passing of debt from one generation to the next has declined.
In the agrarian sector, the labourer is not necessarily confined physically but is bound by a high-interest debt
bond to the landlord.
The report also said that while bonded labour was earlier confined to the agricultural sector, a large number
of workers have been forced to work now in coffee plantations, fast-food chains, carpet-making units, brick
kilns, stone quarries, agarbatti units, the construction industry and in beedi-making units.

Observations of the Committee:

Characteristics of the practice have changed over the years


Expensive weddings, medical expenses, acute poverty, lack of job opportunities are major reasons for
bondage
Most prevalent among Scheduled Castes and Backward Classes, with people of all age groups in the net
District, taluk administration are often indifferent to issue; in denial mode
Inordinate delay in disposing of petitions related to bonded labour
Periodic survey not being conducted
Vigilance committees not active
No instances of initiating criminal proceedings against those involved
Rehabilitation in many places not satisfactory.

POVERTY AND EXCLUSION


4.16 ROLE OF METHODOLOGY ON POVERTY ESTIMATION: WORLD
BANK REPORT

Latest World Bank report said India may have been overestimating the number of its poor. It depends on the
way consumption expenditure is recorded.
According to report, the poverty rate can change if data recording is based on the modified mixed reference
period (MMRP) instead of the uniform reference period (URP). It has advocated use of MMRP for poverty
estimation.
The World Bank estimated that Indians in absolute poverty or those who are
on the brink of survival (at Rs. 3,170 per month) are now 12.4 per cent of its
population using a new measurement scale.

Global Poverty line revised by World Bank:

53

The World Bank has revised the global poverty line, previously pegged at
$1.25 a day to $1.90 a day.
This has been arrived at based on an average of the national poverty lines of
15 poorest economies of the world.
The poverty lines were converted from local currency into U.S. dollars using
the new 2011 Purchasing Power Parity (PPP) data.
The latest headline estimate for 2012 based on the new data suggests that
close to 900 million people (12.8 per cent of the global population) lived in extreme poverty.
On the other hand, The 2015 Multidimensional Poverty Index (MPI) counts 1.6 billion people as multidimensionally poor, with the largest global share in South Asia and the highest intensity in Sub-Saharan
Africa.

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Commission on Global Poverty:

What is Uniform Reference Rate (URP)?

The
recently-established
Commission on Global Poverty is
currently assessing how we
measure and understand poverty
and how to improve this going
forward. According to a WB
spokesperson,
the
CGP
recommendations are expected
in April 2016.

The Sustainable Development


Goals adopted in September,
seeks to end all forms of
poverty world over
The World Bank Group has
set itself the target of
bringing down the number of
people living in extreme
poverty to less than 3 per
cent of the world population
by 2030.

Under the URP, data is collected on the 30-day recall for


consumption of both food and nonfood items to measure
expenditures. It is used in the National Sample Surveys since the
1950s,

What is Modified Mixed Reference Period (MMRP)?

Sustainable Development Goals


and Poverty:

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Under the MMRP, there is a 7-day recall is used for some food items
and to a 1-year recall for low-frequency nonfood consumption
items. It was first introduced in NSS (alongside URP) in 2009-10. The
MMRP is a more accurate reflection of consumption expenditures.

Why MMRP is better than URP?

Under MMRP, there is shorter recall period for food items. Thus
MMRP-based consumption expenditures in both rural and urban
areas are 10-12 per cent larger than URP-based aggregates.

These higher expenditures, combined with a high population density


around the poverty line, translates to a significantly lower poverty
rate.

4.17. NUTRITION MONITORING IN INDIA

In countries such as India where nutrition has a cultural significance, nutrition monitoring provide a good
understanding of what people eat and what, therefore, can be culturally accepted nutritional interventions.
Our child malnutrition numbers are the highest in the world. This is a real emergency and the nutrition
monitoring plays a very important role in projecting data in terms of what people are eating.
The data gathered informs the policy intervention to address under-nutrition.
In the absence of any dedicated organization engaged in this task, the governments solutions are neither
culturally acceptable nor effective to meet our health challenges
There is proposal to develop nutrition-monitoring stations network across the country

Why in News?

The National Nutrition Monitoring Bureau has been shut down by the Union Health Ministry.
The bureau was responsible for periodic assessments of nutrient deficiency among tribal communities,
pregnant women, adolescents and at-risk elderly population in India.
It was the only organisation involved in continuous collection of data on actual dietary intakes of households
as a whole as well as by individuals belonging to different age and physiological groups in different States.

CSE 2009
The Last National Family Health Survey (NFHS) displayed a very dismal picture of nutrition as regards several
indicators for average Indians. Highlights the salient aspects of this problem.

54

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4.18. FIRST PROJECT UNDER HOUSING FOR ALL MISSION CLEARED

The central government has granted approval to Chhattisgarh for taking up affordable housing projects in
urban areas under Prime Ministers Awas Yojana (PMAY)
The state government proposed to build affordable houses in 11 cities and towns in the state. The
beneficiaries belong to Economically Weaker Sections (EWS) and Low Income Group (LIG).
The 35% of the houses proposed to be built shall be reserved for EWS.

4.19. 2015 GLOBAL HUNGER INDEX AND INDIA


Global Hunger Index:

Calculated annually by International Food


Policy Research Institute (IFPRI), the GHI
highlights successes and failures in hunger
reduction and provides insights into the
drivers of hunger.
By raising awareness and understanding of
regional and country differences in hunger,
the GHI aims to trigger actions to reduce
hunger.
The GHI ranks countries on a 100-point scale.
Zero is the best score (no hunger), and 100 is
the worst, although neither of these
extremes is reached in practice.
To reflect the multidimensional nature of
hunger, the GHI combines the following four
indicators components in one index number:
1. Undernourishment: the proportion of
undernourished as a percentage of the
population (reflecting the share of the
population with insufficient calorie
intake)(weight = 1/3rd);
2. Child wasting: the proportion of children
under the age of five who suffer from
wasting (that is, low weight for their
height, reflecting acute undernutrition)
(weight= 1/6th);
3. Child stunting: the proportion of children
under the age of five who suffer from stunting (that is, low height for their age, reflecting chronic
undernutrition)(weight=1/6th); and
4. Child mortality: the mortality rate of children younger than the age of five (partially reflecting the fatal
synergy of inadequate dietary intake and unhealthy environments) (weight=1/3rd).
India has moved up to 55 from 63 in The Global Hunger Index, but fighting hunger remains a challenge.
Undernourishment and mortality among children remain alarmingly high.

Why fighting Malnutrition is Important?

55

Malnutrition affects men, women and children.


Poor nutrition in early life, often invisible to most, shows up in the daily travails of adults in later life lower
work productivity, higher diabetes, greater risk of heart disease, high blood pressure.

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Nutrition also affects the wealth of nations; the costs of poor nutrition are numerous, but on a positive note,
the returns to investment in nutrition are impressive.
For every rupee spent on effective nutrition programmes, Rs16 can come back through improved
productivity in the labour force.
India facts:
Reasons for Hunger in India:
1/6th of the Indian population is
undernourished.
40 % of all fruits and vegetables, 20 % of all food grains
1 in four children in India are
produced rot due to inefficient supply chains and never
malnourished.
reach consumer markets.
190 million people in India go hungry
BPL households spend 70 % of their income on food.
daily.
APL households spend 50 % of their income on food.
3000 children in India die daily from
Urban working class spends 30 % of their income on food.
poor diet related illness.
Agriculture contributed 13.7% to the GDP in 2013.
30.7 % of children in India aged below
50 % of India is employed in agricultural sector.
5 are underweight.
24% of deaths of children aged below
Global Facts:
five globally is in India.
58 % of children in India are stunted
64 % of worlds extreme poor live in 5 countries- Nigeria,
before they are 2 year-olds.
Congo, India, Bangladesh, and China.
30 % of the global neo-natal deaths is
805 million people globally do not have enough to eat.
in India.
Hunger kills more people annually than AIDS, malaria & TB
combined.
One in nine people globally go to bed hungry each night.

SC/ST/OBC/MINORITIES
4.20. CRIMES AGAINST DALITS
Why in News?

Recently, the murder of two children of a dalit family in Faridabad, Haryana was highlighted in the national
media.
The Haryana has often been in the news for caste-related incidents.
The National Crime Records Bureau data put the number of incidents of crimes against Dalits in Haryana in
2014 at 830. The corresponding figure for 2013 was 493; for 2012 it was 252.
However, Haryana isnt the lone culprit where violence against Dalits is concerned. NCRB data show high
incidence of such atrocities in States such as Uttar Pradesh, Rajasthan, Bihar and Madhya Pradesh, among
others.

Social Causes:

56

At the root of the conflict is the unwillingness of the socially and economically powerful upper castes to
share power and resources with Dalits.
Dalit Empowerment: Legislative interventions, including reservations in education, employment and
panchayati raj institutions, have triggered incremental changes in the rural landscape. The political power is
no longer the monopoly of the ruling castes. However, this transfer of power, which invariably impacts the
distribution of public funds and upsets the old social hierarchy, is resented by traditional caste elites.
Sociologists observed that the gradual improvement in their material status may have led to rise in
atrocities.
For, increased Dalit independence and assertion are not to the liking of the dominant castes, especially in
the countryside.
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Political leaders have generally shied away from questioning the regressive aspects of tradition such as
honour killing etc.
However, the rise of a middle class among Dalits since Independence thanks largely to the reservation
policy has made these issues politically sensitive.
With Dalits emerging as a pressure group constituting about 16 per cent of Indias population, any such
incident leads to a political outcry.

Legal protection:

There are two crucial laws to deal with crimes against dalits:
Protection of Civil Rights Act, 1955, and
Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989
Despite these laws, there is high incidence of violence against them which shows the social vulnerability of
Dalits even after the decades of reservation and dedicated laws meant to uplift and empower them were
put in place

Way Forward:

With Dalits organising themselves and awareness about laws like the prevention of atrocities against SCs and
STs spreading, much anti-Dalit violence is now reported to the police.
In this scenario, the police need to be sensitized to act with alacrity in cases in which people are denied their
right to life with dignity.
Also, fair policing and the stringent implementation of the law would ensure that Dalits do not have to fight
an unequal battle.
In addition to this, the egalitarian ideas vis--vis caste within society need to be communicated more
effectively.
A deepening of an egalitarian consciousness could make the democratisation process faster and painless.
The political mainstream and civil society should take on the task.

4.21. NATIONAL TRIBAL ADVISORY COUNCIL

Government has decided to set up a National Tribal Advisory Council for effecting monitoring and
implementation of various tribal welfare schemes.
The council will be chaired by the Prime Minister and will meet once or twice in a year.
It is being established for effective real-time monitoring and implementation of various tribal development
programmes and schemes in the country.

WOMEN
4.22. INITIATIVES FOR WOMEN EMPOWERMENT
Panic Button in Mobile Phones:

57

Government is exploring possibilities to have panic button in mobile phones.


It will be linked to GPS.
The pressing of panic button will send an SMS to a set of numbers that will also provide location information.
The emergency response apps could take too long to access when in a rush. On the other hand, using one of
the existing buttons on the phone will be much simpler and quicker

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Limitations of other devices: The suggestions like special bracelets, rings, necklaces having S-O-S features
have certain limitations like accessibility, affordability in rural areas. Further, it will be inconvenient for
women to take these devices all time with them.

4.23. SDG AND WOMEN


Sustainable Development Goals

The Sustainable Development Goals are the set of 17 goals and 169 targets adopted by member countries of
United Nations at the UN Sustainable Development Summit. The goals are to be achieved by all member
countries within next fifteen years i.e. by year 2030.
These goals intend to achieve sustainable development and are more comprehensive than earlier
Millennium Development Goals.

SDGs related to Women:


Target 2: Zero Hunger

Address the nutritional needs of adolescent girls, pregnant and lactating women and older persons.

Target 3: Good Health and Well Being

Reduce the global maternal mortality ratio to less than 70 per 100,000 live births
Universal access to sexual and reproductive health-care services, including for family planning, information
and education
Integration of reproductive health into national strategies and programmes

Target 4: Quality Education

Equal access for all women and men to affordable and quality technical, vocational and tertiary education,
including university
Build and upgrade education facilities that are gender sensitive and provide safe, non-violent, inclusive and
effective learning environments for all.

Target 5: Gender Equality

End all forms of discrimination against all women and girls everywhere
Eliminate all forms of violence against all women and girls in the public and private spheres, including
trafficking and sexual and other types of exploitation
Eliminate all harmful practices, such as child, early and forced marriage and female genital mutilation
Ensure womens full and effective participation and equal opportunities for leadership at all levels of
decision-making in political, economic and public life
Equal rights to economic resources, as well as access to ownership and control over land and other forms of
property, financial services, inheritance and natural resources
Enhance the use of enabling technology, in particular information and communications technology, to
promote the empowerment of women
Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and
the empowerment of all women and girls at all levels

Target 6: Clean Water and Sanitation

58

Access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special
attention to the needs of women and girls and those in vulnerable situations.

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Target 8: Decent work and Economic growth

Full and productive employment and decent work for all women and men.
Equal pay for work of equal value
Protect labour rights and promote safe and secure working environments for all workers, in particular
women migrants

Target 10: Reduce inequalities

Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability,
race, ethnicity, origin, religion or economic or other status

Target 11: Sustainable cities and Communities:

Special attention to the needs women in building sustainable transport systems


Universal access to safe, inclusive and accessible, green and public spaces

Target 13: Climate Action

Raise capacity for effective climate change-related planning and management focusing on women

Target 16: Peace Justice and Strong institutions

Significantly reduce all forms of violence and related death rates everywhere
End abuse, exploitation, trafficking and all forms of violence against and torture of children

4.24. CRIME AGAINST WOMEN


Tougher punishment to Juvenile offenders:
Facts and data

59

In 2014, the number of reported rapes in


Delhi grew to 2,096, but the rate of
increase declined sharply, after the spike
between 2012 and 2013.
Of the 2,102 reported victims, 1,008
(around half) were under the age of 18.
In 2013, the proportion of reported IPC
crimes in which the accused was a juvenile
was under two per cent, and fell further in
2014.
An investigation in the 2013 judgments of
Delhi's District Courts revealed that the
largest proportion a full third of all
completed cases involved the parental
criminalization of consenting young
couples, many of whom had eloped and
were often inter-religious or inter-caste
relationships.
The court found that in many cases
FIR artificially mentioned the girls as minor
which made their consent to sex legally
immaterial. This practice enables to charge and incarcerate her partner with abduction and rape.

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Criminal Law Amendment 2012:

It raised the minimum sentence in the case of sexual assault to ten years.
This took away discretion from judges of deciding the quantum of minimum punishment which was used to
reduce the sentence of her partner with whom she confessed to being in love, or had often even married
and had a child with.

Possible Impacts of tougher punishments:

By lowering juveniles age to 15 years, hypothetically, a 15-year-old boy who has a consensual sexual
relationship with a 17-year-old girl will be eligible for the death penalty.
Also, by ignoring the socio-economic profile of juvenile offenders the majority come from extremely poor
families, one of the countrys most marginalized groups will be pushed further away from the mainstream.
Children who punished for jail terms would be exposed to the criminal networks that flourish with impunity
behind bars, and will provide criminal community to those whom society seems to have rejected, and set
them up in crime for life.
In addition, lowering the age of majority with respect to criminal law would rekindle the usual related
demands, such as the age of consent, the drinking age and the age for driving.

Alternatives to criminalization:

Preventive measures: Better childcare support for working parents, better street-lighting, more supervised
neighbourhood play areas and community centers.
Police administration:
o Improve registration system of sexual assault cases;
o Free the system from practice of bribery at least in these sensitive issues.
o The establishment of special police stations for registering gender crimes.
Judiciary: Judges should be more sensitive to the trauma faced by a child during a trial.
The government should bring proximity clause in the laws protecting children from sexual abuse.
Juvenile Offenders: The primary need is of the correction and education of juvenile offenders, rather than
their incarceration among hardened adult criminals.
Correction facilities: A government must first regard the child transgressor as corrigible, and improve
juvenile homes, which are not without their horror stories.

Way Forward:

60

In its report on the death penalty, the Law Commission noted that we as a society must help the families of
victims of crime not to see the death penalty as the only or the only fair punishment.
Further, there are compelling practical reasons
Contemporary trends in Armed Forces of other
to keep juvenile crime a special category, and
nations
not to expose child criminals to the full punitive

Australia allowed women in combat roles in 2013.


power of the law.

Germany has allowed women in combat since


To create perfect balance between retribution
2001.
and reformation, the government, with the help

Israel:
Women have served in combat roles since
of expert opinion, may consider tougher
1995.
criminal actions in the rarest of rare cases in
Pakistan inducted women in fighter pilot roles
which, for medical reasons, the perpetrator may
since 2013.
indeed be incorrigible and remain a permanent

USA
rescinded a rule restricting women from
threat to society.
combat
role in 2013, and its implementation is
But otherwise, the state must treat childhood as
likely
to
start
after January 2016.
a sacred space.

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4.25. WOMEN IN ARMED FORCES


Women in Combat Roles:

Reversing its earlier position of not allowing women in combat roles in armed forces, the Ministry of Defence
has approved the induction of women into the Fighter (Combat) stream of the IAF.
The decision was taken after IAF made a formal request to this effect to the Ministry and it is expected
that by June 2017 the first batch of women fighter pilots would be serving the Air Force.
The present progressive decision goes against the recommendations on the Induction of women in combat
duties based on the studies carried out by the Headquarters Integrated Defence Staff (HQIDS) in 2006 and
High Level Tri-Services Committee in 2011.

Present status of women in Armed Forces:

The Indian Army, the Indian Navy and the IAF allow women in various courses but till recently restricted their
entry into combat roles.
With this decision, women have become eligible for induction in all branches and streams of the IAF.
After the IAF, the Indian Navy has also taken a decision to allow women in various flying streams but for now
they will be shore-based till necessary infrastructural needs are addressed.
In September 2015, Delhi High Court had granted Permanent Commission for women and had pulled up the
Navy and the Defence Ministry for "sexist bias" to block women's progress.

4.26. SEX RATIO

As per newly released official data, the sex ratio of registered births fell from 909 in 2011 to 908 the next
year and 898 in 2013.
The source of this finding is Civil Registration System (CRS) which is different from the decadal Census.

Civil Registration System (CRS):

The Civil Registration System comprises all officially registered birth and death data.
It is administered by the office of the Registrar General of India (RGI)
It is mandatory to register all births and deaths within 21 days of their occurrence.
However, the official registration of these events is not absolute but it has been improving across the
country
In 2013, the RGI estimated that 85.5 per cent
of all births are now registered
The states of Bihar and Uttar Pradesh show
poor performance in registrations. The Bihar
registers only 57 percent and UP registers 69
percent of all birth and death in their states.

Analysis of New Data:

61

Demographers say CRS data is not the


correct source to infer because it counts
registered births only and since girls are less
likely to be officially registered than boys, the
sex ratio derived from the CRS is artificially
depressed.
The RGIs Sample Registration System (SRS),
which selects a nationally representative
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sample to derive data on births and deaths, is considered to be more rigorous than the CRS which relies on
local authorities.
However, the new CRS data too should alert governments to the fact that Indias law against prenatal sex
determination-driven terminations (PCPNDT act) is not working.

4.27. SURROGACY IN INDIA

The government told the Supreme Court that it


does not support commercial surrogacy in order to
protect the rights of surrogate mothers.
In an affidavit, the government said altruistic
surrogacy to needy, infertile married Indian
couples will be allowed after thorough checks are
done on the couples.
New guidelines issued by the department of
health research (DHR), restricted the import of
human embryos to research purposes. This means
foreigners can no longer avail of surrogacy
services in India.
Earlier, as per a 2013 notification of the commerce
ministry, which has since been withdrawn, human
embryos could be freely imported, subject to a noobjection certificate from the Indian Council of
Medical Research.
The DHR guidelines suggested that only infertile
married Indian couples ought to be allowed to
avail of the surrogacy facility and not foreign
couples.
These provisions will be part of The Assisted
Reproductive Techniques (Regulation) Bill, 2014,
comments.

Background:

The Supreme Court is already considering a


public interest litigation (PIL) against
commercial surrogacy, claiming that Indian
women from poor and lower middle class
households are being exploited, especially by
foreign couples.
In this connection, in October, the court
expressed concern over trading of human
embryos and suggested that the government
should consider banning commercial surrogacy.
It framed 14 queries for the government to
answer. The affidavit answers these questions.
The home ministry is also likely to file an
affidavit in the case within two weeks. The
ministrys role in the case relates to the grant of
medical visas to foreigners for surrogacy, which
the PIL sought a ban on.
The court will hear the case next on 24
November.

which is currently circulating among the States for

What is Surrogacy?

Surrogacy is when another woman carries and gives birth to a baby for the couple who want to have a child.
It may be appropriate option for
couple when there is a medical
condition that makes it impossible or
dangerous to get pregnant and to
give birth
In Commercial Surrogacy, the
surrogate mother is paid a fee
whereas in altruistic surrogacy,
mother is merely reimbursed for the
expenses occurred in the process.

Surrogacy in India: Current scenario:

62

Commercial surrogacy has been legal


in India since 2002.
At global level, India is a sought after
destination in surrogacy-related
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fertility tourism, also referred as reproductive tourism.


Surrogacy in India is relatively low cost and the legal environment is favorable.
At present the Surrogacy Contract between the parties and the Assisted Reproductive Technique (ART)
Clinics guidelines are the guiding force.
In 2008, the Supreme Court of India in the Manji's case (Japanese Baby) has held that commercial surrogacy
is permitted in India with a direction to the Legislature to pass an appropriate Law governing Surrogacy in
India.
Giving due regard to the apex court directions, the Legislature has enacted ART BILL, 2008 which is still
pending.
Exploitation of the women and commodification of children through surrogacy are major worrying factor,
which the law has to address.

Exploitation in absence of law:

In the absence of comprehensive laws to prevent exploitation, there have been instances where surrogates
have died as a result of complications during pregnancy and the unavailability of good post-natal care.
Contracts between surrogate mothers, who are often poor, and the intended parents are sometimes
structured in a manner that the former assumes all medical, financial and psychological risks, absolving the
latter of liability
Multiple embryos being implanted in the surrogates womb to ensure a higher chance of success.
There are cases of babies born with disabilities or an unplanned twin being abandoned by the intended
parents.

Law Commission Report on Surrogacy:


The Law Commission of India has submitted the Report on NEED FOR LEGISLATION TO REGULATE ASSISTED
REPRODUCTIVE TECHNOLOGY CLINICS AS WELL AS RIGHTS AND OBLIGATIONS OF PARTIES TO A SURROGACY.

The Commission has strongly recommended against Commercial Surrogacy.


One of the intended parents should be a donor as well, because the bond of love and affection with a child
primarily emanates from biological relationship.
Legislation itself should recognize a surrogate child to be the legitimate child of the commissioning parent(s)
without there being any need for adoption or even declaration of guardian.
Right to privacy of donor as well as surrogate mother should be protected.
Sex-selective surrogacy should be prohibited.
Cases of abortions should be governed by the Medical Termination of Pregnancy Act 1971 only.

Way forward:
A complete ban on surrogacy is a welcome step. Surrogacy is a disguised word for child buying and regulation
cannot help to protect the rights of women. The ecosystem that feeds on womens poverty needs to end and
along with this the government should also take steps to mitigate poverty.
CSE 2012:
In the context of Assisted Reproductive Technologies, India has emerged as a hub of commercial surrogacy.
What key biological, legal and ethical issues merit consideration while framing the regulation to govern
surrogacy in India?

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5. SCIENCE AND TECHNOLOGY


DEFENCE
5.1. INS ASTRADHARINI
What it is: Indias first totally indigenously
designed (95%) and built torpedo launch and
recovery vessel (TLRV).
Features:

hull
configuration
The
catamaran
significantly reduces the power requirement
of the ship that is capable of attaining 15
knots.
It can operate on high sea states and its
stability makes it very suitable for carrying
passengers.
It is an advanced replacement for
Astravahini.

Significance:

Need of such ship has been long felt by


Indian Navy.
INS Astradhani reflected the capability of our scientists and manufacturing facilities and would go a long way
in the Make in India campaign.
INS Ashtradharini adds thrust to the Nations ongoing endeavours at indigenisation and achieving the
nations goal of self-reliance in under water weapons development.

5.2. WORLDS HIGHEST TERRESTRIAL RESEARCH CENTRE


Height: 17,600 feet, Location: Changla near Pengong lake in Ladakh.
Purpose:

The Centre will serve as a natural cold storage for preserving rare and endangered medical plants for
generations to come.
The Centre will act as an important utility for research work in frontal areas of food and agriculture and biomedical sciences for well-being of the soldiers deployed in high altitude cold desert.
A large number of scientific activities are proposed to be undertaken in the Centre including designing,
testing, validation and demonstration of mobile and portable greenhouses, soil-less micro-farming
technologies for fresh food in remote landlocked posts.

Climate conditions:
Temperature goes as low as -40 degrees Celsius during extreme winter months coupled with reduced
atmospheric pressure and humidity besides high wind velocity and UV radiation.

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5.3. MAKE IN INDIA - LIGHT MILITARY CHOPPERS

India is set to have three different lines of light military choppers, all of which will be manufactured under
the 'Make in India' initiative.
For one, deal (200 choppers) has been done with the Russian government for Ka 226 helicopters. Two other
types of choppers are yet to be selected.

Reason:

To meet the massive, urgent requirements of the armed forces.


Indian requirement for light choppers is in excess of 800 with the older Cheetah/Chetak fleet moving
towards the end of its service life.

Progress:

Russian deal has, however, not progressed satisfactorily, as Moscow has not yet responded with full details
of technical specifications and production plans in India.

5.4. NIRBHAY MISSILE


Features:

It is Indigenous, surface-to-surface subsonic cruise


missile.
It is very manoeuvrable and can fly at tree-top
level making it difficult to detect on radar.
It can carry nuclear weapon.
Range of around 1,000 km. giving India the
capability to strike deep into enemy territory.
India has made ballistic missile and tactical
missiles of different capacity, but is yet to master
the making of a cruise missile.

Why in news:
Testing failed, with the missile being terminated after launch as it deviated from its flight trajectory

IT
5.5. PROJECT LOON

65

What it is: Project Loon is a network of balloons traveling on the edge of space, designed to connect people
in rural and remote areas, help fill coverage gaps, and bring people back online after disasters.
The initiative has already been tried out in Brazil, New Zealand and Australia.
Around 1,000 Internet balloons have already been deployed worldwide, and had flown nearly 20 million km
while some of them had circled the world 20 times.

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Significance:

The system aims to bring Internet access to


remote and rural areas poorly served by existing
provisions.
It will improve communication during natural
disasters to affected regions.
Two-thirds of the worlds population does not
yet have Internet access. This project will
enhance connectivity.
A recent UN study claimed that a 10 percent rise
in internet penetration would mean a 1.4 per
cent annual increase in a countrys GDP.

5.6. TSUNAMI EARLY WARNING SYSTEM

66

What it is: The Indian Tsunami Early Warning System (ITEWS) has the responsibility to provide tsunami
advisories to Indian Mainland and the Island regions. ITEWS also provide tsunami advisories to the Indian
Ocean rim countries along with Australia & Indonesia.
Managed by the Indian National Centre for Ocean Information Services (INCOIS), an autonomous
organisation under the Ministry of Earth & Sciences (MoES), Government of India.

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Features:

The Warning Centre is capable of issuing Tsunami bulletins in less than 10 minutes after any major
earthquake in the Indian Ocean thus leaving us with a response time of about 10 to 20 minutes for near
source regions in the Andaman & Nicobar and a few hours in the case of mainland.
Near-real time determination of earthquake parameters
24 X 7 operational warning centre to detect tsunami genic earthquakes, to monitor tsunamis and provide
timely advisories following the Standard Operating Procedure (SOP)
Currently Warning Centre disseminates tsunami bulletins to various stakeholders through multiple
dissemination modes simultaneously (Fax, Phone, Emails, GTS and SMS etc.)

5.7. ELECTRICITY FROM PHOTOSYNTHESIS

Researchers (Canada) have invented and developed micro-photosynthetic cell technology that can harness
electrical power from the photosynthesis and respiration of blue-green algae.

Technology:

Both photosynthesis and respiration, which take place in plants cells, involve electron transfer chains.
In this technology these electrons are trapped and used to generate electrical energy.
This photosynthetic power cell consists of an anode (plate having positive charge), cathode (plate having
negative charge) and proton exchange membrane.

Features:

This is a novel, scalable technology.


It will enable economical ways of generating clean energy.
It is carbon-free power source for the future of mankind.

OTHER
5.8. WHITEFLY PROBLEM

There is large-scale crop damage from whitefly infestation this year, especially in northern India.
There are over 250 Bt cotton hybrids on the shelf in North India. More than 90 per cent of these are
susceptible to whitefly and leaf-curl.

Reasons and spread:

Rains were scarce and intermittent, farmers resorted to excessive irrigation and urea application that
promoted fresh vegetative growth and allowed whiteflies to proliferate.
The problem was worsened by over-spraying of pesticides.
Other reasons are delayed sowing, persistent drought coupled with hot and cloudy conditions.
The early-sown crop is less susceptible, as the mature leaves are not preferred by whiteflies.
The whitefly menace was not witnessed in Maharashtra. Although Telangana did report some incidence, it
was much less severe than Punjab.

What is Whitefly?

67

It is a small (1-2 mm) white coloured insect affecting cotton, and also occurring on vegetables and other
crops in tropical and sub-tropical regions.

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The whitefly sucks sap from the phloem or living tissue carrying organic nutrients, causes yellowing and
upward curling of the leaves.

Control measures:
The best approach is to select methods causing least disturbance to beneficial insects that can control the
whitefly naturally.
Therefore, broad-spectrum insecticides such as synthetic pyrethroids and mixtures should be strictly
avoided.
It is better to rely initially on water sprays, followed by soap sprays, sprays with preparations of neem oil,
castor oil, fish oil and rosin soap.

SPACE
5.9. GAGAN
What is it: It is a global positioning system (GPS) aided geoaugmented navigation system which is intended to provide
accurate navigation services.
Range: Over the Bay of Bengal, southeast Asia, Indian Ocean,
Middle East and African regions.
Features:
Gagan works by augmenting and relaying data from GPS
satellites with the help of two augmentation satellites
and 15 earth-based reference stations.
The system corrects any anomalies in the position data
and gives accurate routes, landing guidance and time
saving information to the pilots.
Fully approved for use in April 2015.
AAI and ISRO have jointly established the Rs. 770-crore GAGAN over a decade.

Significance:

It will be able to help pilots to navigate in the Indian airspace by an accuracy of 3 m.


This will be helpful for landing aircraft in tough weather and terrain like Mangalore and Leh airports.
Accurate guidance for planning shorter routes and safer landing patterns will reduce fuel cost.
Will help in improving safety, easing air traffic and airport congestion across the country.
After completely establishing this system, India reached a select league comprising the US, Europe Union
(EU) and Japan which have similar systems.

Why in news: AAI is considering incentives and programmes to accelerate GAGAN's use among commercial
airlines and general aviation aircraft.
CSE 2009
GAGAN Project

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5.10. KISAN (CROP INSURANCE USING SPACE TECHNOLOGY AND GEOINFORMATICS)

Under this programme govt. will use satellite and unmanned aerial vehicles to collect crop yield data and to
assess damage from natural calamities.
The scientific data collected by drones and collated with satellites imagery will be matched with traditional
crop cutting experiments to arrive at a fool proof data.
In earlier system, there has always been a problem in getting timely and accurate data, due to which
payment of claims to farmers were getting delayed.
Initially, KISAN programme will be tried out as a pilot study in identified districts in Haryana, Karnataka,
Maharashtra and Madhya Pradesh.
Mobile application to help farmers: Govt. launched an Android mobile phone application (developed by
ISRO) to assess large-scale damage to crops from hail.
Using this application, farmers can immediately send photos of their crop damage to officials concerned for
immediate relief. This will cut the red tape in reaching assistance to farmers.
Need of such mobile application: Hailstorms cause large-scale damage to standing crops. However, there
was no comprehensive approach to collect hailstorm data.

5.11. ROAD ASSETS MANAGEMENT SYSTEM

NHAI is developing a road assets management system (RAMS) for the entire national highways network. This
project is funded by World Bank.
Under this project satellite mapping of National Highways will be done. For satellite mapping NHAI is
planning to sign a memorandum of understanding (MoU) with the Indian Space Research Organisation
(ISRO).
GAGAN and BHUVAN satellite systems, drones (for difficult terrains) will be used to prepare a 360-degree
mapping of all national highways by 2017.

Significance:
It will assist in the:

Accurate and scientific planning and finalising of road projects


Maintenance of roads
Monitoring of road progress
Executing road safety measures
Development of the national highways network

5.12. TRAI PROPOSAL: MANDATORY GPS IN ALL MOBILES


Reasons behind TRAI proposal:

69

It will help to find out exact location of the caller in an emergency.


TRAI also proposed implementation of public safety answering point (PSAP) based integrated emergency
communication and response system (IECRS) in the country, which will be accessed through a single
emergency number 112 (including the police, fire and ambulance).
Making GPS necessary in all mobile phones will help in IECRS.
Introducing a GPS chip in handsets should not be very costly once it is mandated, all manufacturers start
making it and economy of scale is achieved.

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Government Response:

Earlier this proposal was rejected by the Department of Telecom (DoT), saying there is a major percentage of
low-cost handsets with subscribers which do not support GPS and the impact of enabling all mobile phone
handsets with GPS may be studied before taking a call on the issue.
But Sector regulator TRAI stood by its proposal for making GPS mandatory in all handsets.

5.13. NASAS SPACE LAUNCH SYSTEM (SLS)

The most powerful rocket ever built.


The SLS launch vehicle is to be upgraded over time with more powerful versions. Its initial Block 1 has lift
capacity of 70 metric tons to low Earth orbit (LEO). The next version Block 2 will be having lift capacity of 130
metric tons.
The first SLS missionExploration Mission 1in 2017 will launch an uncrewed Orion spacecraft to
demonstrate the integrated system performance of the SLS rocket and spacecraft prior to a crewed flight.
The second SLS mission, Exploration Mission 2, is targeted for 2021 and will launch Orion and a crew of up to
four American astronauts.
It will also be used for explorations on Mars.

5.14. NOBEL PRIZE IN CHEMISTRY FOR 2015

70

The Nobel Prize


in
Chemistry
2015 is awarded
to Tomas Lindahl,
Paul Modrich and
Aziz Sancar for
having mapped,
how cells repair
damaged
DNA
and
safeguard
the
genetic
information.
They found that a
host of molecular
systems
continuously
monitor
and
repair DNA.
Aziz Sancar has
mapped
nucleotide
excision repair,
the mechanism
that cells use to
repair
UV
damage to DNA.
People born with
defects in this
repair system will develop skin cancer if they are exposed to sunlight.
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Paul Modrich has demonstrated how the cell corrects errors that occur when DNA is replicated during cell
division. Congenital defects in this process causes a hereditary variant of colon cancer.

Significance:

Their work has provided fundamental knowledge of how a living cell functions. This work can be used for the
development of new cancer treatments.

How and why DNA changes everyday:

External Reasons: Each day our DNA is damaged by UV radiation, free radicals and other carcinogenic
substances.
Internal Reasons: A DNA molecule is inherently unstable. Thousands of spontaneous changes to a cells
genome occur on a daily basis. Furthermore, defects can also arise when DNA is copied during cell division, a
process that occurs several million times every day in the human body.

5.15. NOBEL PRIZE IN PHYSICS FOR 2015

The Nobel Prize in


Physics
2015
was
awarded jointly to
Takaaki Kajita (Japan)
and
Arthur
B.
McDonald (Canada) for
the
discovery
of
neutrino oscillations,
which shows that
neutrinos have mass.

How they concluded it:

By observing that on
their route to the
earth, the neutrinos
undergo a change from
one type to the other,
through a process
called
neutrino
oscillations.
This
process cannot take
place if the neutrinos
had no mass.

Impact of this discovery:

71

The discovery has changed worlds understanding of the innermost workings of matter and can prove crucial
to our view of the universe.
The Nobel Prize has given a boost to neutrino hunters across the globe as they gear up to pursue these
questions.

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Neutrino:

Neutrinos are subatomic particles produced by the decay of radioactive elements and are elementary
particles that lack an electric charge.
Neutrinos are of 3 types - electron neutrino, muon neutrino and tau neutrino.
Neutrinos do not carry any electric charge.
Neutrinos can be created in several ways, including in certain types of radioactive decay, in nuclear reactions
such as those that take place in the Sun, in nuclear reactors.

Open questions about Neutrino:

Hierarchy of masses of the three types of Neutrino is still unknown.


Would neutrino have an antiparticle which is different from itself or is each neutrino its own antiparticle?

5.16. CALL DROP ISSUE: THE PROBLEM OF CALL DROPS WORSENING


OVER THE LAST FEW MONTHS
Reasons:

The root of the problem is inadequate spectrum a telco in India has 12 MHz of spectrum compared to the
global average of 40 MHz which reduces the capacity.
This is due to the hoarding of spectrum by the government for instance, in this years auction, the Centre
did not put on the block all the spectrum vacated by the ministry of defence.
Though the Centre recently approved a spectrum-sharing policy, the rules are too constrictive to bring
change.
Civic authorities have forced about 10,000 towers to shut down across major cities due to various reasons.
The lack of a uniform national policy on the setting up of these towers is a major problem.

Govt. steps and Solutions:

To address the scarcity of cell phone towers there are about 5,50,000 towers in India at present and
approximately 1,00,000 more are needed.
Govt. has agreed to allow them to be set up on top of government buildings dispel some of the
misinformation on radiation from them.
Operational difficulties are tackled in installing towers
TRAI raised the penalty on telecom operators to up to Rs. 2 lakh for poor mobile service quality, including
call drops.

5.17. NOBEL PRIZE IN PHYSIOLOGY

To: Satoshi mura, William C. Campbell and Youyou Tu


For: Exceptional effective treatment against parasitic disease: malaria and Elephentitis.

Contributions:

72

Campbell and mura won for their discoveries concerning a novel therapy against infections caused by
roundworm parasites.
Shared the prize with Youyou Tu for her work on a therapy against malaria. Tu discovered one of the most
effective treatments for malaria while working on a secret military project during Chinas Cultural
Revolution.
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Lessons for India: Traditional knowledge system

The Nobel Prize for Chinese scientist Tu Youyou, who turned to traditional herbal medicine to develop novel
malaria therapies, should inspire India to focus on scientifically validating and promoting its rich heritage of
folk medicine
We have a vast repertoire of traditional medicine and these are documented in our ancient texts such as the
Vedas.
But we have to embrace modern science and validate the claims with hard scientific evidence.

5.18. FLYTE LEVITATING LIGHT USING TESLAS TECHNOLOGY

73

Flyte Levitating light: Wireless power transfer transmission has been around
since the time of Nikola Tesla. Swedish Engineers have combined Teslas
technology with magnetic levitation. The result has been completely new way
of looking at light that came forth in the form of Flyte Levitating Light.
The wireless power module transmits about 5V and is absolutely safe and
harmless.
Flyte does not need any batteries. It powers light in the air via induction.
The base is made out of sustainably- sourced oak, ash, or walnut, and the
light bulb uses LEDs that are energy efficient and are rated at 50,000 hours.
To turn the unit on or off, one has to touch the surface of the wood base. It
has a capacitive touch sensor embedded under the wood surface.

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6. INTERNAL SECURITY/LAW AND ORDER


6.1. SPY CAM PROJECT

Immediate cause of project: 21-day face-off with the


Peoples Liberation Army (PLA) of China at Depsang
Valley in the Ladakh region in 2013.
It was decided that the cameras would be put up at
50 locations in Himachal Pradesh, Jammu and
Kashmir, Sikkim and Tawang in Arunachal Pradesh.
Range: 20-25 km range.
Reason of failure: The weather is not favourable
there as high-velocity winds and frost tend to blur the
images.

6.2. POLICE CITIZEN PORTAL

Odisha govt. launched a state police-citizen portal.


All the 531 police stations in the state have been linked through the online portal.
It will enable tech-savvy people to send their complaints online to the authorities.
Through the portal, a citizen sitting at home can avail a number of services at a click of the mouse. There is
no need to go to any police station.

Service provided by system:

Issue of character certificates


Permission for taking out processions and rallies
Issue of an FIR copy
Permission for holding events and performances
Tenant verification, employee verification and registration of missing persons report.
People can also track the status of the complaints registered by them on the portal.

Significance:

Quick delivery system would benefit the society at large, enhance the image of police,
It will help police in establishing an effective and efficient communication with the citizens.

Similar Initiatives:
CRIME AND CRIMINAL TRACKING NETWORK & SYSTEM (CCTNS):

74

Provide the Investigating Officers of the Civil Police with tools, technology and information to
facilitate investigation of crime and detection of criminals.
Improve Police functioning in various other areas such as Law & Order, Traffic Management etc.
Facilitate Interaction and sharing of crime and criminal Information among Police Stations, Districts, State/UT
headquarters and other Police Agencies.
Keep track of the progress of Cases, including in Courts.
Make the Police functioning citizen friendly and more transparent by automating the functioning of Police
Stations.
Improve delivery of citizen-centric services through effective usage of ICT.
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POLNET: Satellite based police telecommunication system:

POLNET is a satellite based wide area network for the modernization of Police Telecommunication of the
country.
POLNET is an amalgamation of different latest VSAT technologies ie TDM/TDMA, SCPC/DAMA and DVB-S.
It is a huge network consisting of about 1000VSATs (Very Small Aperture Terminals at each state capital,
District HQrs and selected locations of CPMFs (BSF, ITBP, CISF, CRPF, Assam Rifles, SSB) and CPOs .
At present POLNET caters to 961 no. of VSATs through a HUB installed in New Delhi with 11 mtr antenna
with necessary Outdoor and Indoor equipments to support total VSAT Network of about 1500 locations for
VOICE, DATA, FAX facilities.
The POLNET network is also providing connectivity for interlinking NCRB computers to SCRB and DCRB
computers provided to State/District HQrs. for online transaction processing.

6.3. INTERNET SURVEILLANCE


What it is: Computer and network surveillance is the monitoring of computer activity and data stored on a hard
drive, or data being transferred over computer networks such as the Internet. The monitoring is often carried
out covertly and may be completed by governments, corporations, criminal organizations, or individuals.
Arguments in favour:
Advent of internet age has given ample opportunities of use and misuse of the liberty granted in the
constitution without revealing the identity. Thus there is a need for internet governance and surveillance.
To snoop into a persons private space, in the interest of security does not vitiate persons liberty.
According to govt. this (CMS) is not scrutiny and access to actual messages. It is only computer analysis of
patterns of calls and emails that are being sent. It is not actually snooping specifically on content of
anybody's message or conversation.
Internet surveillance can be used to prevent dangerous
India and Internet surveillance:
terrorist attacks.
Indias
cyber security policy,
It helps law and order agencies to solve a case promptly as
launched in 2013, is characterised by
huge useful information is available on phone, email and
a striking duality of purpose. On the
other internet websites used by people.
one hand, it seeks to guard, and thus
strengthen, the countrys strategic
Criticisms:
assets and online intelligence

The Indian Constitution does not expressly grant a right to


infrastructure. On the other, it hopes
privacy. It was only in 1994, in Rajagopal v. State of Tamil
to secure the transactions of citizens,
Nadu, that the Supreme Court, though its interpretive force,
companies and public services on the
found privacy to be inherent in a persons right to personal
web.
liberty.
Indias Central Monitoring System
There is no legislative backing to CMS (Central Monitoring
(CMS) gives govt. the absolute power
System).
to monitor all phone and online
Internet surveillance is threat to govt. itself. For eg. NSA
communication in the country.
systematically tapped conversations between Indian
government officials and elected representatives, whether it
Examples: Gujarat snooping incident,
be through phone calls, e-mail, texts, chat or Skype
PRISM, Wikileaks
videos. India fifth-largest target of U.S. electronic snooping.
Internet surveillance can be misused for snooping and
political mileage.
Internet surveillance may affect freedom of speech and expression by banning criticism, disclosures,
whistleblowing and creative works.
Global online freedom declined for a fifth consecutive year as more governments stepped up electronic
surveillance and clamped down on dissidents using blogs or social media.

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The power to propose, implement and monitor Indias cyber security regulations has been concentrated in
the hands of a few agencies without specifying what participatory role, if any, civil society and industry will
play in them.
Privacy protects us from the abuse of those in power. It isnt a luxury. On the contrary, it is integral to our
development as human beings.
Invasions upon ones privacy lead to mental pain and distress, far greater than could be inflicted by mere
bodily injury.

Suggestions:

It is important to ensure the cyber security policy does not end up institutionalizing the flow of private data
to the governments already vast and unregulated snooping systems.
Government should now orient its goals towards protecting Indias networked society and economy, not
policing them.
Security measures intended to protect a democracy can end up actually eroding civil liberties like individual
privacy and freedom of expression that are at the heart of the democratic setup. So there is a need to struck right
balance between national security and civil liberties

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7. ECOLOGY AND ENVIRONMENT


7.1. THE PUBLIC LIABILITY INSURANCE (PLI) ACT, 1991
Provisions:

The act makes it obligatory upon the user industries handling 179 types of chemicals and compounds and
other classes of flammable substances to subscribe a special insurance policy to cover the liabilities likely to
arise on account of any chemical (industrial) disaster/accident.
These liabilities are payable to those affected people who are not the workers.
The Act establishes an Environment Relief Fund (ERF), which is subscribed by all such user industries.

Why in news:
The Ministry of Environment, Forest and Climate Change has issued directions to Central Pollution Control Board
(CPCB) to ensure better implementation of Public Liability Insurance (PLI) Act, 1991.
All the State Pollution Control Boards(SPCBs)/Pollution Control Committees (PCCs) for UTs have been advised for
including PLI insurance policy as one of the point in the check list before according or renewing CTE (Consent to
Establish) or CTO (Consent to Establish) to an industry.

7.2. CLIMATE CHANGE - EFFECT ON ANTARCTIC ICE SHEET

According to IPCC, in this century sea level will rise to 5cm.


According to NASA report new modelling of glacier melting indicated that coastal cities could be
uninhabitable within 50 years.
According to a new research. Temperatures rise of just 1.5C to 2C above present levels, will result in a
catastrophic collapse in Antarctic ice sheets.
This collapse of Antarctic ice sheets will lead to rise in sea levels for not hundreds of years but potentially
thousands.
This report is based on new and enhanced system which contradicts with the findings of IPCC.

Reason:

Around 93 percent of the heat from anthropogenic [pollutant-based] global warming has gone into the
ocean, and these warming ocean waters are now coming into contact with the floating margins of the
Antarctic ice sheet.
This will result in melting of ice-sheets. If we lose these ice shelves, the Antarctic contribution to sea-level
rise by 2100 will be nearer 40 cm.

7.3. NATIONAL
GREEN INDIA

MISSION

FOR

This mission is one of the eight Missions outlined


under the National Action Plan on Climate Change
(NAPCC).

Mission goals:

77

To increase forest/tree cover to the extent of 5 million


hectares (mha) and improve quality of forest/tree
cover on another 5 mha of forest/non-forest lands.
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To enhance eco-system services like carbon sequestration and storage (in forests and other ecosystems),
hydrological services and biodiversity; along with provisioning services like fuel, fodder, and timber and nontimber forest produces (NTFPs).
To increase forest based livelihood income of about 3 million households.

Features:

It envisages a holistic view of greening and focuses on multiple ecosystem services, especially, biodiversity,
water, biomass, preserving mangroves, wetlands, critical habitats etc. along with carbon sequestration as a
co-benefit.
This mission has adopted an integrated cross-sectoral approach as it will be implemented on both public as
well as private lands with a key role of the local communities in planning, decision making, implementation
and monitoring.
It acknowledges the influence that forests have on environmental amelioration though climate change
mitigation, food security, water security, biodiversity conservation and livelihood security of forest
dependent communities.
The mission is based on decentralized participatory approach involving grass root level organizations and
community in planning, decision making, and implementation and monitoring.

Mission Organization:

At National level, an autonomous society under MEF with an inclusive governing council.
At State and District Levels, State Forest Development Agency (SFDA) and District FDA linked to District
Planning Committee will be revamped.
Gram Sabha and its Committees will work at village Institutions level and in Urban Areas, Ward level
Committees /RWAs with support from Municipal organizations and the Forest Departments.
Monitoring will be done at 4 levels, namely self-monitoring by community and field staff, Remote Sensing
and GIS, third party monitoring by key indicators

Why in news:
The National Executive Council (NEC) of the National Mission for a Green India (GIM) approved the Perspective
Plans & Annual Plan of Operations (APOs) submitted by four States - Mizoram, Manipur, Jharkhand and Kerala.

7.4. CLIMATE SPECIAL SCIENCE EXPRESS


Objective: To sensitize the masses, especially children and the youth, about the issue of climate change, in the
run-up to the global climate summit in Paris slated for December.
Area covered during exhibition inside the train: It would cover specific topics like adaptation, mitigation, Indias
action on mitigation, international climate change negotiations, nature conservation, innovations in India,
science lab, biotechnology applications in the field of climate change.
Science Express has had successful eight-year run. Last year, its theme was biodiversity.

7.5. US-CHINA CLIMATE DEAL

78

US announced a new target to cut net greenhouse gas emissions 26-28 percent below 2005 levels by 2025.
China announced targets to peak CO2 emissions around 2030, with the intention to try to peak early, and
to increase the non-fossil fuel share of all energy to around 20 percent by 2030.
Together, the U.S. and China account for over one third of global greenhouse gas emissions.

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These actions will also inject momentum into the global climate negotiations on the road to reaching a
successful new climate agreement next year in Paris.

7.6. IUCN RED LIST

According to IUCN red list 2015, a total of 180 bird species in India are now threatened, as against 173 last
year.
Five species have been uplisted from the Least Concerned to the Near Threatened category, a sign of
increased threat. These are Northern Lapwing (a grassland bird) and four wetland birds, namely Red Knot,
Curlew Sandpiper, Eurasian Oystercatcher and Bar-Tailed Godwit.
Two other wetland birds, Horned Grebe and Common Pochard have been uplisted from Least Concerned to
Vulnerable.
Steppe Eagle (a raptor from grasslands), which is a regular winter visitor to the Indian subcontinent, has
been uplisted from Least Concerned to Endangered.
The list of threatened species keeps on increasing with every assessment.
Major Reason: Destruction of grasslands, wetlands and forests.
The other reason for decline of birds like Steppe Eagle, which mostly scavenges on animal carcasses, is the
use of veterinary drug diclofenac used to treat livestock.
This drug causes renal failure in these birds. Three vulture species, namely White-backed, Slender-billed and
Long-billed have also been severely affected by diclofenac.

7.7. CARBON TAX

According to IMF chief now the time is right for governments to introduce taxes on carbon emissions and
eliminate energy subsidies which will cost the world USD 5.3 trillion this year 6.5 per cent of the global
economy.

Benefits of carbon tax:

It will discourage pollution.


Carbon taxes offer a potentially cost-effective means of reducing greenhouse gas emissions.
It could contribute to rich nations funding target of USD 100 billion a year by 2020 to help poorer nations
fight the impacts of climate change. The world was still USD 38 billion short of that target last year.

Criticisms:

Imposition of carbon tax in an area/state/country may force the firms to relocate which may lead to
decrease in employment.
It will increase cost of production which may lead to inflation.
Many large users of carbon resources in electricity generation, such as the United States, Russia, and China,
are resisting carbon taxation.

India and carbon tax:

79

In 2010 India introduced a nationwide carbon tax of 50 rupees per metric tonne of coal both produced and
imported into India. In 2014, govt. has increased the Price to 100 rupees per metric tonne. It has been
further increased from 100 Rs per tonne to 200 Rs per tonne in the Budget 2015-16.
A carbon tax will help India to meet their voluntary target to reduce the amount of carbon dioxide

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7.8. VULNERABILITY OF TEA INDUSTRY W.R.T. CLIMATE CHANGE


Factors affecting tea cultivation:

Elevation, precipitation, temperature, soil moisture, temperature and fertility, light duration and intensity,
humidity, shelter, shade and CO2 concentration.
Tea is a rain-fed perennial crop.

Impacts of climate change:

Climate-risk is high in Assam, ranging from annual flooding of the Brahmaputra river due to intense monsoon
rains and soil water-logging, to winter precipitation deficits with seasonal droughts.
Regional trends indicate annual mean minimum temperatures have increased and annual mean precipitation
has decreased in North east particularly in Assam.
Such impacts will have a significant effect on tea crop productivity and directly affect the livelihoods of
dependent communities (producers, laborers, traders, consumers).
Rainfall has traditionally been plentiful for growing tea, especially in India but with recent changes in the
climate, surface and ground water are becoming important irrigation systems.
Tea quality is suffering and pest-attacks are increasing.

Suggestions:

Efforts should be made to make tea estates climate-smart so that the industry develops resilience to
uncertain and negative climate change impact.
A project (smartening tea plantation landscapes) has been launched by the Tea Research Association along
with Southampton University on climate.

7.9. GREEN BOND MARKET

What are Green Bonds: Green bonds are fixed income, liquid financial instruments that are used to raise
funds dedicated to climate-mitigation, adaptation, and other environment-friendly projects.
Growth of Green Bonds: Since 2008, the World Bank has issued about $8.5 billion in green bonds in 18
currencies, and the International Finance Corporation has issued $3.7 billion in green bonds.
Green bonds were created to increase funding and expanding the investor base for climate-friendly projects
worldwide.
The global green bond market is expected to exceed $40 billion this year, with countries such as India and
China offering sizeable growth potential.
India aims to reduce the emissions intensity of its grossdomestic product (GDP) by 33% to 35% by 2030 from
2005 levels, and achieve 40% of its cumulative electric power of around 350-gigawatt installed capacity from
non-fossil fuel-based energy resources. This will lead to increase of Indias share in green bond market.

Concerns regarding expansion of renewable energy sources in India:

80

Increasing reluctance of state electricity boards (SEBs) to buy power on account of their poor financial
health. With a debt of Rs.3.04 trillion and losses of Rs.2.52 trillion, SEBs are on the brink of financial collapse.
Such ambitious renewable targets will require multiple sources of funding, particularly given Indias capitalconstrained banking system. The average Tier I capital ratio for Indias rated public-sector banks was just
8.2% at end-2014, and asset quality continues to deteriorate.

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7.10. NGT ORDER REGARDING BANNING OLD VEHICLES


Background:

In November 2014, it had prohibited vehicles over 15 years old from plying in Delhi.
NGT was criticized on the grounds of overreach as it is a tribunal not a court.
However, lending its support to the National Green Tribunal (NGT), the Supreme Court said the tribunal is
empowered to issue directives to the Centre for banning vehicles more than 15 years old from plying on
Delhi roads.
The judgment also ruled that the NGT can exercise the powers of judicial review and examine the validity of
notifications passed under different laws.
Basis of SCs judgment: SC recalled a judgment by the tribunal in July 2014 which declared the NGT to be a
court. This order by the NGT has not been stayed by this court any court and so it holds good.

7.11. INDIA'S COMMITMENT TO CLIMATE CHANGE


Intended Nationally Determined Contribution (INDC)

What are INDCs: INDC outlines the post-2020 climate actions they intend to take under a new international
agreement.

Indias INDCs contains the following


proposals:

To reduce the emissions intensity of its


GDP by 33 to 35 per cent by 2030,
from 2005 levels
To create an additional carbon sink of
2.5 to 3 billion tonnes of CO2
equivalent through additional forest
and tree cover by 2030
Increase the Share of Non Fossil Fuel
Based Electricity
Sustainable Lifestyles
Cleaner Economic Development
Technology Transfer and Capacity
Building

Indias achievements towards climate change till now:

81

Many policy measures have been taken to promote low carbon strategies and Renewable Energy have
resulted in the decline of emission intensity of our GDP by 12% between 2005 and 2010.
Currently, renewable energy, nuclear energy and hydropower together contribute about 30 per cent of the
overall installed capacity.
India is running one of the largest renewable capacity expansion programmes in the world. Between 2002
and 2015, the share of renewable grid capacity has increased over 6 times.
India is one of the few countries where forest and tree cover has increased in recent years and the total
forest and tree cover amounts to 24% percent of the geographical area of the country.

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Significance of Indias INDC:


India stated that the national plans given in the INDC depends on the unencumbered availability of clean
technologies and financial resource from around the world. Such a position is consistent with the principle
of common but differentiated responsibilities that guides climate negotiations.
INDCs announced by India are comprehensive, balanced, equitable and pragmatic and addresses all the
elements including Adaptation, Mitigation, Finance, Technology Transfer, Capacity Building and
Transparency in Action and Support.
India has also decided to anchor a global solar alliance, INSPA (International Agency for Solar Policy &
Application), of all countries located in between Tropic of Cancer and Tropic of Capricorn.
During preparation of INDCs govt. held stakeholder consultations with the specific involvement of the key
Ministries and State Governments. Interactions were also held with civil society organisations, thinktanks
and technical & academic institutions of eminence.
India has to put economic growth before committing itself to cut down emissions.

Criticisms:
The INDC data estimate that between now and 2030, at least $2.5 trillion would be required for the country
to meet climate change action requirements. It will be difficult to invest such a huge money without
international help.
Cutting down emission will slow down the economy, therefore needs is a comprehensive strategy.

Steps taken to achieve INDCs:


A scheme for development of 25 Solar Parks, Ultra Mega Solar Power Projects, canal top solar projects and
one hundred thousand solar pumps for farmers is at different stages of implementation.
The energy efficiency of thermal power plants will be systematically and mandatorily improved.
The switch from Bharat Stage IV (BS IV) to Bharat Stage V (BS V) and Bharat Stage VI (BS VI) to improve fuel
standards across the country is also planned for the near future.
Urban transport policy will encourage moving people rather than vehicles with a major focus on Mass Rapid
Transit Systems.
Government of Indias long term goal is to increase its forest cover through a planned afforestation drive
through initiatives like Green India Mission, green highways policy, financial incentive for forests, plantation
along rivers, REDD-Plus and Compensatory Afforestation Fund Management and Planning Authority
India will have 40 per cent of the total installed power capacity in 2030 based on non-fossil fuel-based
sources.

Indias Expectations from Paris:


A balanced agreement with all components -mitigation, adaptation, technology, finance and capacity
building- consistent with the principles and provisions of the Convention
New, additional and predictable finances from developed and developing countries
Provision of technology development, transfer and diffusion
Paris Agreement must incorporate loss and damage and make operational Warsaw International Mechanism

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VISIONIAS
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CURRENT AFFAIRS
NOVEMBER 2015
1 15 November

Copyright by Vision IAS


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form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
IAS.
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TABLE OF CONTENTS
POLITY AND GOVERNANCE ____________________________________________________________ 4
Child Rights ______________________________________________________________________________ 4
DRUG PRICING POLICY _____________________________________________________________________ 6
DRAFT CIVIL AVIATION POLICY _______________________________________________________________ 8
Overuse of Cess: _________________________________________________________________________ 10
SELF-CERTIFICATION ______________________________________________________________________ 11
WOMEN RIGHT TO ANCESTRAL PROPERTY ____________________________________________________ 11

International relations _______________________________________________________________ 13


INDIA-AFGHANISTAN RELATIONS ____________________________________________________________ 13
ASEAN - DECLARATION ON CONDUCT ________________________________________________________ 13
India-Africa Forum Summit (IAFS) ___________________________________________________________ 14
NEPALS ENERGY DEAL WITH CHINA _________________________________________________________ 16
INDIA AND BANGLADESH SIGN STANDARD OPERATING PROCEDURE (SOP) __________________________ 16
India - U.K ______________________________________________________________________________ 17
INDIA CHINA - RIVER AND CULTURE__________________________________________________________ 17

Also in News _______________________________________________________________________ 18


INDIA-RUSSIA JOINT ARMY EXERCISE ________________________________________________________ 18
INDIA AND TURKMENISTAN ________________________________________________________________ 18
INDIA SOUTH KOREA - AIR SERVICE COOPERATION ____________________________________________ 18
ITALIAN MARINE CASE ____________________________________________________________________ 19
CHINA PARLIAMENT RATIFIES $100 BN AIIB ___________________________________________________ 19
MOU BETWEEN INDIA AND BELGIUM FOR ENERGY _____________________________________________ 20

ECONOMY _________________________________________________________________________ 21
Monetary Policy Panel ____________________________________________________________________ 21
Bankruptcy Law __________________________________________________________________________ 21
UDAY Scheme for Power Sector _____________________________________________________________ 22
FDI norms relaxed ________________________________________________________________________ 23
Gold Monetization Scheme ________________________________________________________________ 24
World Banks New Conditions for Project Loans ________________________________________________ 25

Also in news _______________________________________________________________________ 25


Bank for International Settlement (BIS) _______________________________________________________ 25
Government Considers African Route to Help Central PSUs _______________________________________ 26
The Problem with Make in India ____________________________________________________________ 26
Indias Number One Rank in FDI _____________________________________________________________ 26

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India Worlds 7th Most Valued Nation Brand _________________________________________________ 27


India to Emerge as Largest Cotton Producer ___________________________________________________ 27
Innovation Council of Indian Railways Kayakalp _____________________________________________ 27
Women and household work _______________________________________________________________ 27

SCIENCE AND TECHNOLOGY ___________________________________________________________ 29


Ayurvadic Prakriti to get Genetic proof _______________________________________________________ 29
GSAT-15 communication satellite placed in orbit _______________________________________________ 29
NASA detects another powerful gamma ray explosion___________________________________________ 30
Strong solar winds stripped Mars atmosphere: NASA ___________________________________________ 30
Imprint India Program _____________________________________________________________________ 32
15 years of human presence on ISS __________________________________________________________ 32
Conflict between Google and European union (EU) _____________________________________________ 32
Aditya- Indias scientific mission to study the sun _______________________________________________ 33

SECURITY__________________________________________________________________________ 34
Ground Zero Summit, 2015 _________________________________________________________________ 34
Cyber Security in Space ____________________________________________________________________ 35
Police Reforms___________________________________________________________________________ 36
ULFA leader Anup Chetia Handed Over to India ________________________________________________ 37
NSCN Factions Making Inroads in Arunachal ___________________________________________________ 37
AFSPA IN MEGHALAYA ____________________________________________________________________ 37

ENVIRONMENT _____________________________________________________________________ 39
ILEDTHEWAY campaign ____________________________________________________________________ 39
Bharat Stage-VI FUEL(NORMS) ROLLOUT TARGET OF 2020 _______________________________________ 39
CARBON DIOXIDE LEVELS HIT RECORD HIGH: WMO _____________________________________________ 40
ANTARCTICA GAINING MORE ICE THAN IT'S LOSING: NASA _______________________________________ 41

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POLITY AND GOVERNANCE


CHILD RIGHTS
The world celebrated International Child Rights Week (ICRW) from November 14 to 20. Child Rights Day is
celebrated on 20th November in India. It is also
What are childrens rights?
celebrated as the Universal Children Day
(International Child Rights Day) across the world
According to the United Nations Conventions on the
to make people aware about the rights of their
Rights of the Children (India ratified it in 1992) all
children.
children are born with fundamental rights.
Childrens rights are the basic human rights of
Background:
children with particular attention to the rights of
In 1954, the United Nations General
minors.
Assembly recommended that all countries
Child rights include:
should introduce Universal Childrens Day to

Right to Survival- to life, health, nutrition, name and


encourage fraternity and understanding
nationality.
between children all over the world and
promote welfare of children.
Right to Development- to education, care, leisure,
In 1959, the UN General assembly adopted
recreation and cultural activities.
the Declaration of the Rights of the Child and
Right to Protection- from exploitation, abuse,
in 1989 it adopted the Convention on the
trafficking and neglect.
Rights of the Child.
Right to Participation- to expression, information,
What is the need to safeguard child rights?
thought and religion.
Child Rights opposes the child labour and child
Glaring facts about the grim reality of Child
abuse, so that childs development can be ensured.
rights:

Sharp rise in crime against


children Crimes against
children jumped over 50% in
one year.
Increasing urbanization has
led to a rise in the disease
burden among children
(health issues like under
nutrition, stunting and even
high IMR) as well as crimes
against them.
Children in cities are not only
victims to such violence but
are in danger of becoming a part of organized crime rackets.
Child labour - as per 2011 CENSUS, India has over 4 million
working children in the age group of 514 years. Globally, 17
crore children are still working as child labourers and 85
million out of them are victims of worst forms of child
prostitution and child slavery.
Child Marriage - 65% of girls in India are married by the age of
18 and become mothers soon after.
EducationEducation has become a business and privilege of
the rich. It leads to exclusion of children from marginalized
sections of the society.

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Recent report released by Assam State


Commission for Protections of Child
Rights reveals that at least 80% of the
states tea gardens have been flouting
the Right to Education (RTE) Act. The
survey found that majority of children in
the tea gardens are often engaged in
plucking leaves. They are made to work
in factories and do not go to schools.

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Malnutrition 40% of child malnutrition in the


developing world is in India.
Child Sex Ratio - The declining number of girls in the
06 agegroup is cause for alarm. For every 1,000
boys there are only 927 females.
North-Eastern Region Children from the region
are vulnerable to cross- border trafficking.
Only 35% of births are registered, impacting name
and nationality.
One out of 16 children die before they attain the age
of 1, and one out of 11 die before they are 5 years
old.
Children face so much stress during examinations
and there is no helpline for them. Southern India has
one of the highest suicide rates amongst the
adolescent population.
Parents lack knowledge, skills and strategies to
discipline children. They lack time for their children.
Growing up with violence and abuse seriously
affects a childs development, dignity, physical and
psychological integrity.

Way forward:
To end the menace of Child labour, there is an urgent
need to pass the Child Labour (Amendment) Bill, 2012.
All forms of child labour should be prohibited up to
the age 14 years.
No child should be employed in the worst forms of
child labour, such as begging and prostitution.
Increase in fine amount and period of
imprisonment.
Enforcement agency employees should also be held
responsible if children are found working in their
jurisdiction.
Child labour must be made a cognisable and non
bailable offence.
Rehabilitation should be an integral part
of the law.
India should ratify the international labour
organization (ILO) convention to combat the
worst forms of child labour.
There is a need for a uniform definition of
child. Currently, different laws have different
ages for defining a child.
Root causes of juvenile crimes, such as
poverty, broken families, unregulated access
to pornography and the failure of the child
protection system must be addressed with
effective measures.
5

Constitutional provisions to safeguard child rights


in India:
Article 14 Equality before the law.
Article 15- The State shall not discriminate against
any citizen. Nothing in this Article shall prevent the
State from making any special provisions for
women and children.
Article 21Right to Life
Article 21A- (RTE) The State shall provide free and
compulsory education to all children of the age of
614 years in such manner as the State may, by
law, determine.
Article 23Prohibition of traffic in human beings
and forced labour.
Article 24Prohibition of employment of children
in factories.
The Constitution (86th Amendment) Act was
notified on 13th December 2002, making free and
compulsory education a Fundamental Right for all
children in the age group of 614 years.
Article 39 (e)and 39(f) to prevent child labour
Article 45 Provision for early childhood care and
education to children below the age of 6 years.
Article 47 Provisions regarding raising the level of
nutrition and standard of living.

Who is a child?

According to the UNCRC- A child means every human


being below the age of 18 years.
The Child Labour (Prohibition and Regulation) Act,
1986 defines a child as a person who has not completed
fourteen years of age.
The Factories Act, 1948 and Plantation Labour Act 1951
states that a child is one that has not completed fifteen
years of age.
The Juvenile Justice (Care and Protection of Children)
Act, 2000 has changed the definition of child to any
person who has not completed 18 years of age.
POCSO Act 2012 defines a child as any person below
eighteen years of age.

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Governments initiatives like


Beti
BachaoBeti
Padhao
scheme (to address the gender
imbalance and discrimination
against the girl child) are steps in
the right direction.
Child protection mechanism
needs to be strengthened by
means of more village child
committees
(VCCs),
where
children take part in discussions
and are trained to be responsible
citizens.

Laws to safeguard child rights:

The Protection of Children from sexual offences (POCSO) Act 2012 is


in place to address the heinous crimes of sexual abuse and sexual
exploitation of children.
Child labour (Prohibition and protection) Act 1986.
Factories Act 1948
The Immoral Traffic (prevention) Act, 1956
Juvenile Justice( Care and Protection of Children) Act, 2010
National Food Security Act,2013
Prohibition of Child Marriage Act 2006
Right to Free and Compulsory education Act 2009 etc.

Government initiatives for child protection and development


The National Commission for Protection of Child Rights (NCPCR) The commissions Mandate is to ensure
that all Laws, Policies, Programmes, and Administrative Mechanisms are in consonance with the Child Rights
perspective as enshrined in the Constitution of India and also the UN Convention on the Rights of the Child.

Integrated Child Development Services (ICDS) scheme


To improve the nutritional and health status of children in the agegroup 06 years.
To lay the foundation for proper psychological, physical and social development of the child.
To reduce the incidence of mortality, morbidity, malnutrition and school dropout.
General grant in aid scheme in the field of women and child development
Integrated Child Protection Scheme(ICPS)

It aims at building a protective environment for children in difficult circumstances.

The scheme will set up a child protection data management system to formulate and
implement effective strategies and monitor their outcomes.
Kishori Shakti Yojana
Early Childhood Children Education Policy
Beti Bacho, Beti Padhao initiative etc.

DRUG PRICING POLICY

Recently government formed an inter-ministerial committee to look into the pricing of medicines, and
especially in the market based pricing formula.
The committee comprises of representatives from DIPP, Ministry of Health, National Pharmaceutical Pricing
Authority (NPPA) and department of pharmaceutical.
The committee will review the Drug Price Control Order (DPCO) 2013.

Background
Drug Price Control Order (DPCO) 2013

DPCO (2013) came into force in May 2013, with an objective to improvise and endow with the basic health
care and availability of basic medicines at affordable prices across the country. It was notified by the
Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers.

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It empowers the National Pharmaceutical Pricing Authority (NPPA) to regulate prices of 348 essential drugs.
As per the order, all strengths and
2003: Discuss the steps taken by Government to check child
dosages specified in the National List of
labour and promote child welfare.
Essential Medicines (NLEM) will be under
price control.
2005: Rehabilitation of street children in India
The earlier DPCO order (1995) regulated
drug prices based on the manufacturing
2006: What are the social and economic consequences of
costs but in this order ceiling price is
abolishing child labour in India ?
linked to market price through market
2012: The Union Cabinet recently cleared the proposal to
based pricing mechanism.
rename and amend the Child Labour (Prohibition and
Supreme Court Verdict on Drug Pricing
Regulation) Act, 1986. What are the salient features of the
Policy:
proposed amendments?

Supreme Court of India on 15 July 2015 termed the National Pharmaceutical Pricing Policy, 2012 and
the Drug Price Control order (DRCO) 2013 as unreasonable and irrational.
The apex court asked the Union Government to review its marketbased drug pricing policy within six
months.
The court was hearing a PIL filed by NGO All India Drug Action Network alleging that the Market Based
Pricing (MBP) was never used for any price regulatory purposes and this was making medicines costlier.

Issues Related to Drug Pricing Policy:

Access to essential medicine for common people is only 35%.


The profit margin for drug manufacturers and dealers were in the range of 101300 percent.
The National List of Essential Medicines (NLEM) consisted of only 348 drugs leaving out many essential
medicines from price control.
Demand of inclusion of more lifesaving medicines of diseases such asHIVAIDS, cancer, diabetes and
tuberculosis as well as those used in mental health, noncommunicable diseases like asthma and rheumatoid
arthritis in NLEM
Simple average ceiling prices were higher than the market leader price in many cases which made the price
control ineffective and even counterproductive.
The market prices of all the medicines enlisted under the price control were not collected.
All the doses of a drug were not covered.
It has not covered the combinations so if a price controlled drug is combined with the nonprice controlled
drug it will come out of the price control.
No action has been taken against the Companies which are not following orders of NPPA.
90% of the doctors are not prescribing generic drugs and so conceptualization of the programs such as JAN
AUSHADHI is not very sound.
Malpractices in the distribution network for which bodies such as Indian Medical Association and
pharmacists bodies are largely responsible.

Way Forward:

Countries like Brazil provide free medicines and India too can walk on the same path gradually.
Southern states like TamilNadu have a model of public procurement free medical system. It ensures that
essential drugs are available free of cost to those seeking treatment in public health facilities. It is very
efficient system and should be implemented across the country.
Greater need to strengthen public system need to increase public services to gain the confidence of
people.
Greater need to augment resources as there is dearth of doctors, nurses and other staff.

CSE 2013: What do you understand by fixed dose drug combinations (FDCs)? Discuss their merits and demerits.

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DRAFT CIVIL AVIATION POLICY

The Indian aviation sector has not witnessed the level of growth it should have and at present it is ranked
10th in the world.
The development of aviation sector has a potential multiplier effect on the economy. As per an ICAO study,
the output multiplier and employment multiplier are 3.25 and 6.10 respectively.
The aim of the Government is to provide an ecosystem
WHY IN NEWS?
and a level playing field to various aviation subsectors, i.e
Airlines, Airports, Cargo, Maintenance Repairs and
The Ministry of Civil Aviation (MoCA) has
Overhaul services, General Aviation, Aerospace
put out a new draft National Civil Aviation
manufacturing, Skill Development, etc.
Policy, 2015. The ministry has given three

Objectives of the Policy:


1. Ensure safe, secure and sustainable aviation industry
through use of technology and effective monitoring.
2. Enhance regional connectivity through fiscal support and
infrastructure
3. Enhance ease of doing business through deregulation,
simplified procedures and egovernance.
4. Promote the entire aviation sector chain: cargo, MRO
(maintenance, repairs and overhaul), general aviation,
aerospace manufacturing and skill development.

NCAP 2015 covers the following policy


issues:

Salient Feature of the Policy:


Safety violations will be treated with zerotolerance.

weeks for comments and suggestions from


various stake holders. The vision of this
policy is to create an eco system, to enable
30 crore domestic ticketing by 2022 which
stands at around 7 crore in the year 2014
15. The policy in its mission statement
mentions safe, secure, affordable and
sustainable air travel with access to various
parts of India and the world.

(a) Safety; (b) Regional connectivity; (c) 5/20


Rule; (d) Bilateral traffic rights; (e) Code
share agreements; (f) Maintenance, Repair
and Overhaul; (g) Route Dispersal Guidelines;
(h) Fiscal support; (i) Helicopters; (j)
Scheduled Commuter Airlines; (k) Airports
developed by State Govt., Private sector or in
PPP mode; (l) Airports Authority of India; (m)
Air Navigation Services; (n) Aircargo; (o)
Aeronautical Make in India; (p) Ground
handling; (q) Sustainable aviation; (r)
Aviation security, Immigration and Customs;
(s) Ancillary Revenue; (t) Essential Services
Maintenance Act, 1968; (u) Aviation
education and skill development; (v) Charter
operations.

A singlewindow system for all aviation related


transactions, queries and complaints.
DGCA will be authorised to impose fines and penalties.
Recruitment rules have been relaxed.
Regional Connectivity Scheme
Revival of air strips as nofrills airports will be done at
less than Rs.50 crore, mostly through AAI, which is a
profitable company.
To fly abroad government invites discussion on the
proposal that airlines to acquire 300 Domestic Flying
Credits (DFC) per annum instead of existing five years of
flying and a fleet strength of 20 aircrafts.
'Open sky' Air Service Agreement on a reciprocal basis
with SAARC countries.
Increase in FDI in airlines from 49 percent to above 50
percent will be examined if the government decides to go in for open skies for countries lying within 5,000
km radius
To encourage maintenance, repairs and overhaul (MRO) sector in India, government proposes to:
a) Service Tax on output services of MRO will be zerorated
b) Aircraft maintenance tools and toolkits will be exempt from customs duty
c) Foreign MRO experts will be provided visas promptly
Separate regulations for helicopters by April 1, 2016. a
The eligibility criteria lowered to facilitate easy entry of new players.
Thirty percent of nonaeronautical revenue will be used to crosssubsidise aeronautical charges.
Ministry of Civil Aviation and Ministry of Defence to ensure commercial aeromanufacturing is covered
under defence offset requirements.
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Government would negotiate with global OEMs to set up an aircraft assembly plant in India.

Criticism:

The draft does not mention about the future of Air India. The governments ownership of the national carrier
negatively influences policy decisions and has cost the Indian tax payer billions of dollars. Clarity on what the
government plans to do has a massive bearing in the industry.
There should have been more emphasis on addressing the negative fiscal environment which airlines face
such as sales tax on ATF, service tax on fares, airports charges and withholding tax on aircraft leases.

Additionally, two initiatives


particularly criticised:

have

been

1. Regional Connectivity Scheme:


Experts have raised questions over the
lack of clarity in the policy. It is not
known whether the existing regional
airline permit holders will be entitled to
those benefits under the regional
connectivity scheme.
This move would cap the prices on
regional routes, which might be a
negative for airline companies given the
government intervention and price
control.
The policy would suit the regional
carriers more than the national ones,
who in turn need more support on
infrastructural and capital requirement
than operational front.
It is yet another case of cross
subsidization where those flying from
one big city to another will pay for
cheap
connectivity
for
their
counterparts in smaller cities.
This step seems backward looking at a
time when government is trying to
decrease subsidy bills.
2. 5/20 Rule.
The policy provides no clarity on the 5/20
rule under which local airlines can fly
overseas only after they have five years
operational experience and a fleet of at
least 20 aircraft. The government has
sought more comments from stakeholders
before taking the final call.
The policy has now proposed three options
abolish the norm, continue with it or link
overseas flying rights with domestic flying
credits.
New carriers like Vistara or AirAsia India
have been pitching for abolition of the 5/20
norm

The Centre has proposed a regional connectivity scheme


by offering concessions to the airlines incentivising them
to fly on regional routes.

The draft policy puts an airfare cap of Rs 2,500 for an


hour's flight on remote routes to be covered under
the scheme.
The Centre will fund 80 per cent of the airline's losses
and the rest will come from the states using viability
gap funding (VGF) from regional connectivity fund
(RCF).
RCF will be set up by levying a two per cent cess on
domestic and international airline tickets.
For underserved regional airports, the states will
provide concessions such as free land, reduced rates
of power, water and other utilities, one per cent or
less valueadded tax on aviation fuel, among others.
The Centre will also waive off service tax on tickets
on regional routes and the aviation fuel drawn by
airlines from such airports will be exempt from excise
duty.
These concessions will be made available to
scheduled commuter airlines using aircraft with 100
seats or less.

SB Cess
The Swachh Bharat cess will be an additional levy, making
the effective service tax rate 14.05% against the current
14%.
In budget 201516, the government had put the service
tax collection target at over 2.09 lakh crore. It is expected
that the Swachh Bharat cess would yield Rs 400 crore.
Benefits:
Given the impact of lack of cleanliness on public health
leading to diseases such as malaria, dengue, diarrhea,
jaundice, cholera etc., the cess will help in improving
public health.
Cess also prepares the ground for sudden jump in service
tax rate under the goods and services tax regime. The
GST will bring down overall incidence of taxation down
but tax rate on services will inevitably have to go up.

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Benefits:

The policy is broadly progressive and setting of low cost airports would help bring more cost efficiency in the
aviation sector.
The commitment and foresight in outlaying a comprehensive view on MRO, low cost carrier airports
infrastructure, ground handling initiatives, tax measures, affordable tariff balancing will boost air travel and
encourage sustainable growth of the industry.
Regional connectivity, small town airports would help airlines to geographically increase the footprint.

The draft policy signals a positive intent to provide a direction and structural lift to the sector.

OVERUSE OF CESS:
Recently government announced two new cesses a 0.5% cess on all services for Swacch Bharat initiative and a
2% cess on international air travel and flights between metros and big cities to build a regional connectivity fund
(RCF). These new cesses add to numerous existing cesses such as higher education cess, clean energy cess etc.
Criticisms of Overuse of Cess:

Use of cess is regressive in nature. It imposes an additional burden on poorest section of taxpayers.
Use of instruments like cess and surcharge complicate the tax structure encouraging the practice of tax
evasion.
As cesses are levied on top of the battery of indirect and direct taxes, they feed directly into the costs of
doing business in the country.
Revenue raised through a cess or surcharge is excluded from the pool that is split between Centre and
states (Article 270) and thus is against cooperative federalism.
It raises the question over effective utilization of primary tax revenue.
The collections made through cess do not effectively translate into matching outcomes, for e.g. road cess
amounts to 23,000 crore a year, yet matching improvement is not seen in road infrastructure. CAG has
pointed out that there is inadequate transparency and incomplete reporting in government accounts of the
manner in which the money is spent.
Also cesses seldom function as they should as temporary taxes clearly earmarked for a specific purpose.
Once imposed they are revised, hiked and shifted around, but seldom discontinued. The road cess has been
around since 199899 and the education cess has recently completed a decade.

Way Forward:

Government should focus on expanding the tax base and simplifying the tax structure to increase the
revenues to fund new initiatives. Both the Direct Taxes Code of 2009 and the Economic Survey of 2014 have
recommended that the Centre do away with bad taxes such as cesses and surcharges.
Swacch Bharat cess lacks clarity on the institutional structure under which resources are to be spent. For a
cess to be effective it is important that it be ring fenced properly with total clarity of what the money
collected under the cess will be used for.
Imposition of cess for initiatives like Swacch Bharat takes away the moral incentive; instead the focus should
be on imparting greater civic sense backed by grass root initiatives such as door to door garbage collection.

CSE 2013: 10. Discussion the rationale for introducing Good and services tax in India. Bring out critically the
reasons for delay in roll out for its regime

10

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SELF-CERTIFICATION
Background:

The 2nd ARC had recommended adoption of selfcertification provision for simplifying procedures.
Rationalization of affidavits was first started in Punjab in 2010 which was aimed at reposing trust in citizens
and moving away from affidavits in favour of selfattestation.
The Prime Minister gave impetus to this campaign, and other state governments Gujarat, Kerala, Madhya
Pradesh, Rajasthan, Goa have followed Punjabs example.

Benefits:

Affidavits impose cost on the citizens buying stamp paper,


locating a deed writer, payment to the Notary for attestation
and the time and efforts consumed in these processes.
In India, the total savings for the citizens could be to the extent
of Rs. 8,000 crores approximately.
Also, the time spent by Government Officials in attesting the
documents can be used for other official purposes.

WHY IN NEWS?
The Delhi cabinet has given the go
ahead to scrap 200 affidavits that were
required in order to access various
government services, including ration
cards, income and caste certificates
and electricity connections.

Legal Implications:

As far as admissibility of documents is concerned there is no weightage of affidavits over selfdeclaration.


Affidavit is a declaration, and as such, a declaration in itself is adequate for the purposes of law. The
applicant continues to be responsible for the statement made.
There appears to be no legal problem in adopting this practice. The Indian Penal Code contains a number of
Sections such as 177, 193, 197, 198, 199 and 200 which specifically deal with the implications of any false
information/evidence/disclosure/ declaration made by the deponents.

WOMEN RIGHT TO ANCESTRAL PROPERTY


The Hindu Succession Act, 1956, originally did not give daughters inheritance rights in ancestral property.
They could only ask for a right to sustenance from a joint Hindu family. But this disparity was removed by an
amendment to the Act on September 9, 2005.
WHY IN NEWS?
This ruling clarifies applicability of the amendment for the right of
women seeking equal share in ancestral property.
The Supreme Court has said that
the 2005 amendment in Hindu law
Overall, limitations on womens right to inheritance are:
will not give property rights to a
1. Cannot ask for a share if the property if the property has been
daughter if the father died before
alienated or partitioned before the bill was introduced.
the amendment came into force.
2. The amended provisions cannot have retrospective effect despite it
being a social legislation. It is imperative for the father to have been alive when the amendment came into
force.

Why do Women's Land Rights Matter?


Economic security Land is a crucial economic asset for women in poor rural communities: it is a key input for
agricultural production; it can be used as collateral to access capital; and, it can generate income directly, if it
were rented or sold. Land can provide women with economic security as they age, or in the event they become
heads of households as a result of their husbands migration for work, abandonment or unfortunate death.

11

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Social security Land is also a valuable asset for the social access it provides: it can raise womens status in their
communities and can help shape womens identity as producers and as productive and deserving members of
their families and their communities. Secure rights to land are particularly important for women when their
families or communities lack formal sources of social security or access to other social safety nets.
Relation between Womens Land Rights and Desirable Social and Economic Outcomes:

Women are less likely to report experiencing longterm physical and psychological domestic violence
Their families nutrition is likely to improve
Their childrens educational achievements are likely to improve
Their fertility is likely to decrease and
Womens ability to participate in their households decision making is likely to increase

CSE 2005: Write short notes on the following (a) Equal rights for women in parental property.

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INTERNATIONAL RELATIONS
INDIA-AFGHANISTAN RELATIONS
Bilateral relation:

India and Afghanistan have a strong relationship based on historical and cultural links.
In recent past, IndoAfghan relations have been further strengthened by the Strategic Partnership
Agreement signed between the two countries in 2011.
As Afghanistan was preparing itself for three simultaneous political, security and economic transitions in
2014, India had allayed its fears about its future by making a long term commitment to the security and
development of Afghanistan.

Why in news:

On 13th November Afghanistans national security advisor, Hanif Atmar, who visited New Delhi,
made a request that Afghanistan wanted India to step up supplies of lethal equipment for its military,
battered by a resurgent Taliban that has claimed the lives of more than 4,000 soldiers, and led to loss of
government control in large swathes of territory.

Background:

India had promised, in a strategic partnership agreement signed in 2011 to assist in the training, equipping
and capacitybuilding programmes for the Afghan National Security Forces.
Since 2011, Afghan military commanders and intelligence officials have begun urging India to provide direct
military assistance to the countrys fledgling armed forces following a series of skirmishes with Pakistani
troops and Taliban.
Previous government, however, stalled Afghan requests for military hardware, fearing they could derail its
peace negotiations with Pakistan.

Indias concern:

India however fears that it being sucked into a military relationship with Afghanistan that could enrage
Pakistana country which has long worried that its northern neighbour could be used as a base for
aggression by its historic eastern adversary.
Pakistan has, in the past, alleged that Indias intelligence services are using Afghanistan to back secessionists
in Balochistan, as well as jihadists fighting the Pakistani state
The possibility of Indian arms leaking to militant outfits remains rife. Use of these against India could be a
major strategic and diplomatic blunder.
India is also not happy with Afghanistans current regimes soft stance towards China and Pakistan, and even
Taliban.

CSE 2013: 18. The proposed withdrawal of International Security Assistance Force (ISAF) from Afghanistan in
2014 is fraught with major security implications for the countries of the region. Examine in light of the fact that
India is faced with a plethora of challenges and needs to safeguard its own strategic interests.

ASEAN - DECLARATION ON CONDUCT


Background on DOC:

13

South China Sea from many years became a conflict Zone among rim South China Sea countries (Vietnam,
Brunei, Malaysia, etc.).
To resolve this dispute, after several years of negotiations, in November 2002, members of Association of
South East Asian Nations (ASEAN) and China signed the declaration on conduct (DOC).

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This agreement between ASEAN and China expresses the desire to enhance favorable conditions for a
peaceful and durable solution to differences and disputes among countries concerned.
In this declaration, ASEAN and China reaffirmed a commitment to international law (including the UN
Convention on the Law of the Sea) and to the freedom of navigation in the South China Sea.
All parties also agreed to resolve their territorial and jurisdictional disputes by peaceful means, without
resorting to the threat or use of force. Further, the parties agreed to exercise selfrestraint in taking
actions that could complicate or escalate disputes.
The DOC, in the views of many analysts, was essentially a compromise between the two positions of doing
nothing and having a legallybinding agreement.

Why in News:

On 4th November 2015, At 3rd ASEAN Defence Ministers Meeting (ADMMplus), India by expressing interest
and concern at the recent developments in the South China Sea, called for an early conclusion of the Code
of Conduct in the region for resolving disputes.
India hopes that all parties to the disputes in the South China Sea region will abide by the 2002 Declaration
on the Conduct of Parties in the South China Sea, ensure its effective implementation, and work together to
ensure a peaceful resolution of disputes.

CSE 2012: What are Indias stakes in the South China Sea?

INDIA-AFRICA FORUM SUMMIT (IAFS)


Bilateral relations:

The India-Africa Forum Summit (IAFS) is a celebration of the close partnership between Africa and India.
It is an acknowledgement of our shared history as well as our future prospects. From both countries struggle
against colonialism and apartheid, they have emerged to jointly accept the challenges of a globalizing world.
Even as both combat with common threats the threat from international terrorism; the scourge of poverty,
disease, illiteracy and hunger; the challenge of climate change and collectively promote the socioeconomic
advancement of all our people, it is believe that India and Africa traverse the same path, share the same
values and cherish the same dreams.

Indo-Africa summit 2015:

14

New Delhi hosted representatives of fifty four countries from the continent for the third India Africa Forum
Summit (IAFS) from 26-29 October, 2015.
It is believed that this is the most spectacular diplomatic exercise hosted by India since the 1983 Non Aligned
Movement (NAM) summit; this meeting provides opportunity for India to rejuvenate relations with the
continent.
While Indias relations with African countries go back a millennium, in 2008 India began a structured
engagement with Africa through the India Africa Forum Summit process.
The second summit in 2011, at Addis Ababa, expanded this cooperation.
The current summit is important in the context of the evolving development partnership, trade and
investment ties and the scope for convergence on peace and security issues.
The participation and the format of the Summit have been decided in consultation with the African Union
Commission and the permanent representatives of the member states. This is the beginning of a process.
o It is also agreed that the formal outcome documents of the Summit would be a Declaration and an
Action Plan.
o The draft Action Plan is under preparation and a draft has been circulated by the AU Commission to the
member states.
o The second document which will be a Declaration will address broader areas of cooperation and
common views on regional and international issues including the fight against terrorism, climate change
and WTO negotiations.
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The areas on which both have agreed to focus in the Action Plan include human resources and
institutional capacity building and education, science & technology, agricultural productivity and food
security, industrial growth including small & medium enterprises and minerals, development in the
health sector, development of infrastructure, ICT and establishment of judicial system with police and
defence establishments under civilian control, etc.

Indo-Africa Partnership:

India has forged a development partnership with the African countries. This development partnership is
unique as it is based on a consultative model and is driven by African needs.
The focus of the development partnership is on human resource development and capacity building in
Africa.
India has extended development assistance worth $ 7.4 billion through lines of credit given by the Export
Import bank. Of this $6.8 billion has been approved and about $3.5 billion, nearly half, has been disbursed.
These lines of credit have led to the completion of 137 projects in 41 countries across Africa.
Apart from this, India had also pledged to set up nearly 100 Indian Africa Training Institutes across the
continent.
Both India and the African countries share the problem of access to modern means of energy. Almost two
thirds of Africa does not have access to modern energy. India has been involved in projects related to
renewable energy such as solar energy in Africa.
In Mozambique India helped set up the first solar panel production factory in the country. Moreover, the
Mozambican technicians involved in the production process were trained in India.

China vs. India - Indias Advantages:

15

African continent is increasingly becoming the next theatre of global attraction and competition because of
natural resources, demography and socioeconomic development.
To harness the opportunity various countries including China have made huge investments in the continent.
This growing Sino-Indian involvement has been economically beneficial and has resulted in widespread
investment and development, with African leaders welcoming the competition.
An increasing competition between India and China for new markets, agricultural land and access to natural
resources.
While Chinas aggressive economic
approach has caused it to achieve more
influence in Africa than any other
country, its dominance is slowly being
impeded by Indias growing involvement
in the region.
India has focused on emphasizing its
cultural and historical ties to enhance
the development of its trade relations
with resourcerich countries like
Zimbabwe, Ethiopia and Sudan.
The success of Indias soft power
strategy has been evident in countries
like Sudan, where Indian corporations
have attained near complete control of
the local oil and natural gas industry.
The same trend is occurring in
Zimbabwe where Chinas dominance in
the energy and resource sectors is being
challenged by private and stateowned
Indian enterprises.
The US$ 4 billion takeover of
Zimbabwean steelmaker Zicosteel, by
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Indias Essar Group, was hailed by the Zimbabwean Government as the largest foreign direct investment
deal in Zimbabwe in recent decades.
The African nations are increasingly realizing that though Chinese investments are attractive, there are
certain issues like:
Chinese companies instead of employing locals use Chinese workers.
It is also seen that these companies dont pay much attention to environment protection.
Chinese loans come with strict conditions that only Chinese technology will be utilized.
o These concerns have mainly been raised by civil society; however, many governments have also
started looking beyond China.
o India needs to harness this opportunity. India already enjoys the good will of African people due to
historical ties and Indian companys practices of employing local workers and skilling them.

CSE 2014: How does India see its place in the economic space of rising natural resource rich Africa?

NEPALS ENERGY DEAL WITH CHINA

The agreement came after shortages caused by the blockade of land routes from India due to unrest over
the Nepals new constitution by Madhesis (Maithili, Bhojpuri, Avadhi and Hindispeaking Nepalis)
They want proportionate representation in Parliament and a separate province comprising all 21 Terai
districts bordering UP and Bihar.

Importance of this deal to Nepal:

China will immediately supply 1.2 million litres of kerosene to Nepal.


In two separate agreements, China has promised to give a oneoff 1000 metric tonnes of petroleum products
as grant and signed a MoU for petroleum supply.
Under this agreement, China will supply fuel at international rates, which Kathmandu might find cheaper
than its imports from India. To begin with, China will fulfill at least a third of Nepal's requirements.

Impact on India:

Nepals decision to source petroleum products from China will not only end Indias monopoly in supplying
fuel to Nepal but will also impact Indian Oil Corp (IOC) revenue.
With the development likely to pull down petroleum export volumes, the fate of the two planned cross
border products pipelines also hangs in balance. This includes the 41km RaxaulAmlekhganj pipeline
announced by the oil ministry as south Asias first transnational petroleum pipeline (Nepal Oil Corporation
(NOC) and IOC had signed this deal in August to construct a pipeline from IOCs depot in Raxaul in Bihar to
NOCs depot in Amlekhganj.)
This would also significantly impact Indias economic and strategic clout over Nepal.

CSE 2004: (d) Weakspots in IndiaNepal Relations.

INDIA AND BANGLADESH SIGN STANDARD OPERATING PROCEDURE


(SOP)
India and Bangladesh signed the Standard Operating Procedure (SOP) in New Delhi on 15th November 2015, to
operationalize the Agreement on Coastal Shipping signed between the two countries in June, 2015.
About the SOP:

16

The SOP has been framed as per the terms and conditions of the Agreement on Coastal Shipping and both
India and Bangladesh have agreed to its provisions.
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The Standard Operating Procedure will pave the way to promote coastal shipping between India and
Bangladesh and would enhance bilateral trade between the two countries by bringing down the cost of
transportation of EXIM cargo.
The SOP contains provisions which stipulate that India and Bangladesh shall render same treatment to the
other country's vessels as it would have done to its national vessels used in international sea transportation.
The two sides have also agreed upon the use of vessels of River Sea Vessel (RSV) category for Indo
Bangladesh coastal shipping.

Advantages of Agreement on Coastal Shipping:

The opening of coastal shipping between India and Bangladesh would enable the movement of cargo to the
North East through coastal shipping up to Chittagong and thereafter by road/inland waterways.
It will enable the two countries to save logistics costs of export and import.
The deep draft ports on the eastern coast of India can be hub ports for the onward transportation of cargo
to Bangladesh via the coastal mode through RSV category of vessels.
The Indian ports will attract enhanced cargo and also the overall transportation cost to Bangladesh will get
reduced.
The Indian ports serving as trans shipment ports for Bangladesh cargo will derive benefits by way of
enhanced throughput as a result of IndoBangladesh coastal trade.

INDIA - U.K
The Prime Minister arrived in London on November 12th, 2015.
Major developments

Vision of a forwardlooking partnership between the UK and India that would play an indispensable role in
creating economic growth, jobs and security for the people of both countries.
9.2 Billion of commercial deals between the UK and India announced during the visit. The UK has
accounted for 8.56% of total foreign direct investment in India during the last 15 years. Indian companies
employ 110,000 people in the UK.
Both countries announced three UK-India city partnerships with Indore, Pune and Amravati to support
Indias ambitious urban development goals through technical assistance, expertise sharing and business
engagement.
Both countries have launched a new Thames/Ganga partnership for healthy river systems. This partnership
will consist of a collaborative programme of research and innovation to enable the sustainable management
of water resources in the Ganga basin and a policy expert exchange in 2016 supported by the UK Water
Partnership.
Announcement of setting up of joint India-UK Vaccine Development collaboration between the Department
of Biotechnology and Research Councils, UK.

INDIA CHINA - RIVER AND CULTURE

17

Chinese VicePresident Li Yuanchao was on Indias visit and concluded agreements on river water
management and cultural exchanges
The 2013 memorandum of understanding on joint water management will be renewed, which helps India
and China share data on multiple Himalayan rivers for better water management.
Sharing of hydrological data during the flood season helps in emergency management and better planning in
lower riparian rivers.
The second agreement is on the cultural exhibition on the Gupta period to be held in 2016 in China. It was
during this period that the Nalanda University prospered which later on hosted Xuanzang during his visit to
India.
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ALSO IN NEWS
INDIA-RUSSIA JOINT ARMY EXERCISE
Background of Defense Relations:

Relations with Russia are a key pillar of Indias foreign policy, and Russia has been a longstanding timetested
partner of India.
This relation gained more momentum since the signing of the Declaration on the IndiaRussia strategic
partnership in October 2000.
This strategic partnership has been built on 5 major components: politics, defence, civil nuclear energy,
space and antiterrorist operations. Defence relations between India and the Russian Federation have a
historical perspective.
The Soviet Union was an important supplier of defence equipment for several decades, and that relationship
was inherited by Russia after the breakup of the Soviet Union. Today, the cooperation is not limited to a
buyerseller relationship but includes joint research and development, training, service to service contacts,
including joint exercises.
The last joint naval exercises took place in April 2007 in the Sea of Japan and joint airborne exercises were
held in September 2007 in Russia.
India and Russia have several major joint military programmes such as BrahMos , 5th generation fighter jet
programme etc.

In News:
The seventh IndoRussian joint training exercise INDRA2015 commenced on 7th November 2015 at Mahajan
field firing range in Bikaner (India) for 14 day period(from 7th to 20th November).
About the Exercises:
INDRA is a joint, biannual military exercises conducted by India and Russia starting in 2003. The exercise is
tasked with boosting cooperation and interoperability between the Indian and Russian navies. Exercise INDRA
2015 is the seventh edition in a series of bilateral exercises under this banner. The joint exercise this year would
focus on Counter Terrorism Operations in Desert Terrain under a United Nations Mandate.

INDIA AND TURKMENISTAN


Union Cabinet has given its approval for amending the Double Taxation Avoidance Convention (DTAC) signed
between India and Turkmenistan in 1997 for the avoidance of double taxation and for the prevention of fiscal
evasion with respect to taxes on income and on capital, through a Protocol.
The protocol provides for internationally accepted standards for effective exchange of information on tax
matters including bank information and information without domestic tax interest.
The Protocol further provides for 'Limitation of Benefits' Article as an antiabuse provision aimed at preventing
misuse of the Convention.

INDIA SOUTH KOREA - AIR SERVICE COOPERATION

18

IndiaSouth Korea relations have come a long way since the establishment of their diplomatic relationship in
1973.
Throughout the Cold War, the ideological differences largely deterred the two countries from realizing the
full potential of the relationship.
Indias growing emphasis on its Look East Policy and South Koreas New Asia Diplomatic Initiative has
helped elevate the relationship to one of strategic partnership.
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India has signed a Memorandum of Understanding with Republic of Korea (RoK) to enhance bilateral air
service cooperation between the two countries and increase capacity entitlements for carriers on both sides
to 19 flights per week from the existing six.
Apart from the increase in seats, India and South Korea also agreed to give the go ahead to the carriers for
more destinations.
With the signing of the above MoU, the air connectivity between the two countries will be enhanced further
and this is expected to boost economic and peopletopeople cooperation.

ITALIAN MARINE CASE


There is continuous legal tussle between India and Italy over the case of two Italian marines accused of killing
two Indian fishermen off the Kerala coast in February 2012.
Why in news?
On 10th November 2015, the tribunal has been constituted under Annex VII of the United Nations Convention on
the Law of the Sea (UNCLOS) with a fivemember Arbitral Tribunal being constituted for arbitration between the
two countries.
Background:
Italy appointed Professor Francesco Francioni on June 26 as one of the five arbitrators, India appointed Judge
Patibandla Chandrasekhara Rao on July 24 as an arbitrator.
After consulting both sides during a meeting in Hamburg on September 30, 2015, the President of the
International Tribunal for the Law of the Sea (ITLOS) appointed Judge JinHyun Paik of Korea and Judge Patrick
Robinson of Jamaica as arbitrators.

CHINA PARLIAMENT RATIFIES $100 BN AIIB


Asian Infrastructure Investment Bank (AIIB):

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank (MDB) conceived for the
21st century.
The AIIB, a modern knowledgebased institution, will focus on the development of infrastructure and other
productive sectors in Asia, including energy and power, transportation and telecommunications, rural
infrastructure and agriculture development, water supply and sanitation, environmental protection, urban
development and logistics, etc.

In news:

Chinas top legislature on 4th November 2015 ratified the Asian Infrastructure Investment Bank (AIIB)
agreement, which establishes the legal framework for the bank.
With China being the largest shareholder, the ratification is a significant step closer to the AIIBs formal
establishment slated for the end of 2015.
With an authorized capital of $100 billion, the AIIB will finance infrastructure projects like the construction of
roads, railways, and airports in the AsiaPacific Region.

Reasons for establishment (ratification to)/of AIIB:

19

The AIIB will extend Chinas financial reach and compete not only with the World Bank, but also with the
Asian Development Bank, which is heavily dominated by Japan.
China and other emerging economies, including BRICS, have long protested against their limited voice at
other multilateral development banks, including the World Bank, International Monetary Fund and Asian
Development Bank (ADB).
China is grouped in the Category II voting bloc at the World Bank while at the Asian Development Bank;
China with a 5.5 per cent share is far outdone by Americas 15.7 per cent and Japans 15.6 per cent share.
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MOU BETWEEN INDIA AND BELGIUM FOR ENERGY


Recently it found that, Belgium has acknowledged the growing importance of Indias global role both in political
and economic spheres.
In news:
The Union Cabinet, chaired by Prime Minister, has approved a Memorandum of Understanding which has been
signed between Indian and Belgian government authorities at the Federal and regional level for energy.
This Memorandum of Understanding will help in strengthening bilateral cooperation between the two countries.
Objective:
Both the countries will work towards developing new and renewable energy technologies in the field of solar
energy (thermal and photovoltaic), Biomass, smart grid and wind energy among other sectors.

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ECONOMY
MONETARY POLICY PANEL
The News:

After four months of debate and discussion, the Reserve Bank of India and the Finance Ministry have
overcome the stalemate on the proposed amendments to the Reserve Bank of India Act to reset the
responsibility of deciding Indias monetary policy.

How is monetary policy framed right now?

At present, monetary policy is formed by the Governor of RBI alone.


The RBI governor does consult with Deputy Governors, board of directors, etc. but only the Governors
signature is required for the approval, making him the final authority.

Past Attempts at Democratizing the Monetary Policy Making:

In 2005, RBI governor started to consult with noted economists, industrial bodies (FICCI etc) and Credit
Rating Agencies (CRISIL etc.)
RBIs annual reports put on the official website to bring in transparency
RBI started to publish quarterly reviews where RBI governor answer queries from media.
Nonetheless, Monetary Policy remained the sole responsibility of the Governor, without any formal
mechanism for ensuring participation and accountability.

Past Recommendations:
Previous Committees Tarapore, Reddy, FSLRC and more recently Urjit Patel Committee have either directly or
indirectly recommended that

Monetary policy should be decided by a Committee rather than a single person.


Decision should be based on majority voting.
Minutes of such meetings should be put in public domain.

Thus, it was long felt need to shift to a Committee System for deciding monetary policy.
However, some disagreements emerged in recent past, over the structure of Monetary Policy Committee,
between the Government and the RBI, which has been overcome recently.
Monetary Policy Committee as envisaged in Ministrys note for Cabinets approval

The Government will nominate two members and the RBI three members.
Each of five members has one vote and the RBI Governor, chair of the committee, will have a casting vote in
the event of a tie in situations such as the absence of a member.
Inflation target for the RBI in each financial year will be determined by the Government in consultation with
the RBI itself.

BANKRUPTCY LAW
Bankruptcy Law Reforms Committee (BLRC), headed by T K Vishwanathan submitted its report along with the
proposed Insolvency and Bankruptcy Bill.

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Why Improving Insolvency Regime is Important?


The present arrangement is very inefficient with at
least four different legal routes available to the
debtor and its creditors, each under a different law
with option to invoke any law. Some of the laws
include SICA, RDDBFI, SARFAESI etc.
Other important issue plaguing the system is
delay. Any delay greatly erodes to value of
debtors assets.
Insolvency regime is one of the weakest links in
Doing Business in India as India stands on 136th
rank in resolving insolvency.
Major Recommendations:

It recommended for setting up an insolvency regulator to exercise regulatory oversight over insolvency
professionals and agencies.
It also recommended bankruptcy & insolvency processes for individuals with annual gross income of less
than Rs 60,000 and aggregate assets of not more than Rs 20,000.
The panel has recommended a 180-day period for insolvency resolution.
It lays down a clear system for identification of financial distress and revival of companies, with help of
specialist insolvency professionals.

Challenges:

The biggest challenge will be adhering to the timelines.


Strengthening the adjudicating mechanism will be an important element
It will require a pool of insolvency professionals, and trained judges who understand business issues. There is
a clear lack of such experts.

UDAY SCHEME FOR POWER SECTOR

The Government has launched Ujwal


DISCOM Assurance Yojana (UDAY) to help
power distribution companies tide over
financial losses.
India has power generating capacity of 270
gigawatts but due to DISCOMs being forced
to sell power at a loss, they simply refuse to
lift power production. As a result of which
India is currently using only half of its power
generation capacity.
Without power, national priorities like
Make in India, Digital India and 24X7
affordable and accessible Power for All
cannot succeed.

Scheme Provisions:
UDAY empowers DISCOMs with the opportunity
to break even in the next 23 years. This is through four initiatives
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Improving operational efficiencies of DISCOMs;


Reduction of cost of power;
Reduction in interest cost of DISCOMs;
Enforcing financial discipline on DISCOMs through alignment with State finances.

States will issue bonds in the market or directly to the banks / Financial Institutions (FIs) holding the DISCOM
debt to the appropriate extent.
DISCOM debt not taken over by the State shall be converted by the Banks / FIs into loans or bonds with interest
rate not more than the banks base rate plus 0.1%.
Impacts:

Operational efficiency will be improved provisions like compulsory smart metering, upgradation of
transformers, use of efficient electrical appliances, etc., are expected to reduce the average AT&C loss
(Aggregate Technical & Commercial losses) from around 22 % to 15 % and eliminate the gap between
Average Revenue Realised and Average Cost of Supply by 201819.
Cost of power will be reduced - by increased supply of cheaper domestic coal, coal linkage rationalization,
liberal coal swaps from inefficient to efficient plants, coal price rationalization based on GCV (Gross Calorific
Value), supply of washed and crushed coal, and faster completion of transmission lines.
States shall take over 75% of DISCOMs debt reducing the interest cost on debt to around 89%, from as
high as 1415%. This would not only improve the balance sheet but also improve profitability.

Way Forward:

The permanent solution to this financial problem faced by DISCOMs lies in allowing them to charge prices
that reflect cost of delivery, including a return on capital.
This could be done in two ways
o Let the consumer pay the full price, as determined by state regulators, after which the state
governments can directly transfer subsidy payments to selected groups.
o To build the subsidy into the tariffs, but have an annual budgetary provision for subsidies, which is
transferred to DISCOMs at periodic intervals.

What is essential is that UDAY is followed by meaningful tariff reforms to make distribution companies financially
viable.

FDI NORMS RELAXED


The Government has relaxed FDI norms in 15 sectors including mining, defence, construction, real estate, civil
aviation, broadcasting and LLPs to boost growth and drum up investment.
The government also raised FIPB approval limit to Rs 5,000 crore from Rs 3,000 crore.
Highlights of Decision:

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100 per cent foreign direct investment (FDI) has been allowed in DTH, cable network and plantation crop.
Overseas investment limit in uplinking of news and current affairs TV channels has been raised to 49 per cent
from earlier 26 per cent.
The government allowed 100 per cent FDI under automatic route in dutyfree shops and Limited Liability
Partnerships (LLP).
In the construction development sector, minimum capitalisation norms and floor area restrictions have been
removed. The government has also eased exit norms for foreign players in the sector.

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In the defence sector, 49 per cent foreign investment has been allowed under the automatic route and
anything beyond through the Foreign Investment Promotion Board (FIPB) nod.
Earlier, the investors were required to take approval of Cabinet Committee on Security for foreign
investment above 49 per cent in defence sector.
100 per cent FDI allowed in plantation of rubber, coffee, cardamom, palm oil tree and olive oil tree.
In singlebrand retail, companies are now allowed to sell products through ecommerce
In regional air services allowed foreign investment up to 49 per cent under automatic route

CSE 2008: (b) Assess the performance of India in attracting Foreign Direct Investment (FDI).
CSE 2010: (f) Bring out the sectoral and statewise distribution patterns of Foreign Direct Investment (FDI)
inflows into the country.

GOLD MONETIZATION SCHEME

It is estimated that India has more than 20,000 tonnes of gold in its temples, households and other
institutions, with total worth of approximately INR 60 lac Crores, which is 3-4 times the annual budget of
India.
India, presently, imports 8001000 tonnes of gold each year and is the largest consumer of gold in the
world.
In spite of such a large quantity of gold present, mostly this gold is neither traded nor monetized.
So, a scheme to monetize this idle gold was proposed in the budget 201516, where designated banks will
accept deposits in the form of gold after verifying the purity of gold.

About The Scheme:

Banks can accept a minimum of 30 g of raw gold in a gold savings account with no upper limit on the weight
of gold that will be accepted.
Interest will be paid on the gold deposited and also the appreciation of metal value. Earlier, people had to
pay money for their safe custody in the form of locker charges.
The designated banks will accept deposit under
o The Short term (13 years) Bank Deposit
o Medium term (57 years) Government Deposit and
o Long term (1215 years) Government Deposit Schemes.

Benefits for Depositors:

Idle gold including coins and bars held by Resident Indians can earn interest apart from appreciation of
value.
Depositors gold will be securely maintained by the bank.
Redemption is possible in physical gold or rupees.
Earnings are exempt from capital gains tax, wealth tax and income tax.

Benefits for Economy:

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It will reduce dependence on import, hence will bring stability.


Trade deficit will lower down thus improving CAD.
Cost of gold for jewellery industry will reduce significantly.

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WORLD BANKS NEW CONDITIONS FOR PROJECT LOANS


Major changes:

The World Bank has proposed Environmental and Social Standards (ESS) framework which envisages new
standards for environmental and social safeguards, mainly in respect of labour and working conditions,
while making many environmental safeguards more stringent.
The framework also envisages periodic project assessments reviewed by the Bank which can issue
measures and actionable instructions to comply with the ESS.
The proposed ESS requires that every borrowing country align its social and environmental laws with the
World Bank system.
It bans child labour and forced labour and promotes fair treatment, nondiscrimination, and equal
opportunity for project workers in recruitment and hiring, compensation, working conditions and terms of
employment with a grievance mechanism to raise workplace concerns.

Indias stand:

India is against periodic project assessment as it can impose extremely high and unreasonable costs on the
project authorities.
The provisions envisaged in new framework can end up increasing doing the cost of doing business with the
World Bank significantly.
India is set to oppose this new ESS framework terming them as more regressive with the potential of
making World Bank assisted projects unviable.
India will argue that it has very robust legal framework on environment and social issues which will be
sufficient to meet World Bank requirement.

CSE 2009: (b) Does India need the World Bank?

ALSO IN NEWS
BANK FOR INTERNATIONAL SETTLEMENT (BIS)

BIS is a bank for central banks.


It is located in Basel, Switzerland and has 60 member central banks, representing countries from around the
world that together make up about 95% of world GDP.
It was created in 1930 to administer the transaction of monies according to the Treaty of Versailles, i.e., as
Agent General for Repatriation in Berlin.
Role of BIS has been ever evolving from its creation to the present day, adapting to the dynamism in the
world market.
Broadly, BIS pursues its mission by
o
o
o
o
o

fostering discussion and facilitating collaboration among central banks;


supporting dialogue with other authorities that are responsible for promoting financial stability;
carrying out research and policy analysis on issues of relevance for monetary and financial stability;
acting as a prime counterparty for central banks in their financial transactions; and
Serving as an agent or trustee in connection with international financial operations.

Why in news?

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RBI governor Raghuram Rajan was elected as Vice Chairman of Bank for International Settlement.
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GOVERNMENT CONSIDERS AFRICAN ROUTE TO HELP CENTRAL PSUS

The Government is considering influencing African countries, especially those with very little private capital,
by replicating Nehruvian postindependence industrial policy of India in those countries through PSUs.
Under this policy, the Government wants African countries to reserve several sectors for Stateowned
enterprises (SOEs) so that the central PSUs can work in a competitionfree environment for next 1520 years
by setting up subsidiaries or entering into joint ventures with SOEs.
If this proposal goes through, it has the potential of not only helping profit making PSUs finding new markets
and avoiding competition from private sector in India but can also turn the fates of many PSUs incurring
losses.

THE PROBLEM WITH MAKE IN INDIA

Most of the new jobs are in construction sector which are low productivity jobs.
Indias 85 percent of the workforce is in informal sector which is mostly unskilled.
Most of the jobs in manufacturing and services sector are skill intensive while Indias natural comparative
advantage lies in its vast pool of unskilled labour.
Thus there exist a demand supply gap in terms of quality of work force required by these two sectors and
available workforce.
As per Economic Survey 201415, the cost of skill intensive model is that one or two generations of those
who are currently unskilled will be left behind without the opportunities to advance.
Another report from Citi group claims that increased use of automation will likely tilt the balance towards
some developed economies and existing manufacturing hubs in emerging markets like China at the cost of
new emerging markets like India.
The increasing use of robotics in manufacturing has led to a renewed onshoring of production
Also, the fragmentation and unbundling of global value chains, which have been responsible for the growth
of manufacturing in many lowcost countries and burgeoning world trade in goods, is slowing.

Way Ahead:

Skilling the workforce and improving the infrastructure.


Make in India cannot succeed unless the cost of doing business is brought down in India.
Government will have to continuously pursue various reforms to improve doing business environment in
India.

INDIAS NUMBER ONE RANK IN FDI


India received USD 31 billion, moving from fifth position last year to the top position now as the most attractive
destination for FDI.
What does it mean for India?
Though there is general trend of decline for FDI in other destination, this ranking without fail shows that Indias
effort for improving ease of doing business is getting recognized in the world market.
Recently, India also climbed 16 positions in World Competitive Index to be placed at 55.
These send a very positive signal to worlds investors that India is determined to provide a more friendly
business environment and is putting effort for the same.

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INDIA WORLDS 7TH MOST VALUED NATION BRAND

India, moving up one position, is now 7th most valued nation brand in the annual report on worlds most
valuable nation brands compiled by Brand Finance.
India is now valued at USD 2.1 billion with an increase of 32 per cent in its brand value.
The nation brand valuation is based on five year forecasts of sales of all brands in each nation and follows a
complex process. The Gross domestic product (GDP) is used as a proxy for total revenues.

INDIA TO EMERGE AS LARGEST COTTON PRODUCER

India is set to become worlds largest cotton producer replacing China.


This has happened because of cotton output in all the producing countries, barring India, has been
anticipated to be lower than previous year.
Cotton production in China and the U.S. has been estimated to be lower by 13.3 per cent and 17.7 per cent
respectively
Global cotton production is estimated to be lower than by 8.6%.

INNOVATION COUNCIL OF INDIAN RAILWAYS KAYAKALP


The Railway Budget Speech 201516 mentioned that every dynamic and thriving organization needs to innovate
and reinvent its practices and hence this council has been setup for the purpose of business re-engineering and
introducing a spirit of innovation in Railways.
Indian Railways, on one hand, has to fulfill its social obligation of providing affordable travel facilities to the
public in different parts of the country while on the other hand, has to work as a commercial organisation
earning profit. There is a need to balance these two requirements and function in a manner so that best services
could be provided to the people at affordable prices and the Railways emerge as an effective engine of growth
for the countrys economy.
The Council has been set up to further above stated twin goals.
Why in news?

4th meeting of Kayakalp was held in the chairmanship of Ratan Tata which discussed safety issues with an
attempt to identify the causes of accidents because of manual failures.
The meeting focused on approaches aimed at achieving greater hygiene and cleanliness in railway stations
and facilities.
The council also examined Indian Railways' current customer focus and looked at ways to make it further
customer friendly.

WOMEN AND HOUSEHOLD WORK

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Work done by women in their households is unpaid work.


The status of non-earning is often confused with non-working.
In reality, women are mostly employed in full-time work that involves household chores, and production of
goods and services not sold in the market. They also perform a swathe of caregiving work besides the
rearing of children.
The major difference between this work and paid employment is financial compensation.
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Why in news?
A recent study by McKinsey, titled The Power of Parity: How equality for women could drive $ 2 trillion in global
growth. The study provides evidence that stayathome women directly damage a countrys GDP by billions.
As per the report, Indias GDP could increase by 16 to 60% by the year 2025 if more women participate in the
labour force.
Conclusion:
There have been voices demanding for attaching financial worth to household works done by women earlier
also, but this study provides quantitative evidences of how stayathome women hampers the economy.

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SCIENCE AND TECHNOLOGY


AYURVADIC PRAKRITI TO GET GENETIC PROOF
As per Ayurveda the Prakrati or the constitution of a person is based on three important characteristics called
doshas which are :

Vata controls very basic body processes such as cell division, the heart, breathing, and the mind
Pitta control hormones and the digestive system
Kapha helps to keep up strength and immunity and to control growth.

In Ayurveda, a persons treatment is based on her Prakriti which contains the particular variations of Vata, Pitta
and Kapha for a particular individual.

Recently a team of Indian scientists are trying to connect the relation between genes and Prakriti of a
particular individual.
Scientists are looking at principal components of variation and three of the most common variations could
be Vata, Pitta and Kapha.
With this, the researchers can conclude that Indias traditional medicine has a genetic basis and in a way is
personalized medicine.
Personalized medicine is an innovative approach to disease prevention and treatment that takes into
account differences in people's genes, environments and lifestyles.

GSAT-15 COMMUNICATION SATELLITE PLACED IN ORBIT


What is GSAT:

A GSAT is a series of geosynchronous satellite placed in geosynchronous orbit, with an orbital period the
same as the Earth's rotation period.
Such a satellite returns to the same position in the sky after each day.
A special case of geosynchronous satellite is the geostationary satellite, which has a geostationary orbit a
circular orbit directly above the Earth's equator.
Geosynchronous satellites have the
advantage of remaining permanently in
the same area of the sky, as viewed from
a particular location on Earth
Geostationary satellites have the special
property of remaining permanently fixed
in exactly the same position in the sky,
meaning that groundbased antennas do
not need to track them but can remain
fixed in one direction. Such satellites are
often used for communication purposes.

GSAT-15:

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GSAT15, India's latest communications


satellite, was launched successfully from Kourou in French Guiana in South America
It will be controlled by ISRO's Master Control Facility (MCF) at Hassan in Karnataka
This Indian satellite has a design life of 12 years.
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GSAT15 carries a total of 24 communication transponders as well as a GPSAided GEO Augmented


Navigation (GAGAN) payload.

How it will help India:


The 3,164kg spacecraft will replace the ageing INSAT3A and INSAT4B satellites that are in the same orbital
slot when they expire.
Its 24 transponders will mainly cater to public and private directtohome (DTH) broadcasters, VSAT
operators and radio navigation services. (A majority of private operators use capacity leased on foreign
spacecraft).
The GAGAN payload will meet inorbit redundancy requirement for Safety of Life (SOL) operations benefiting
the civil aviation services and other users of augmented GPSbased systems in the country.
Strengthening the satellite navigation infrastructure and sustaining the communication infrastructure in the
country.

Also ISRO has planned to launch telecommunication satellites GSAT-17 and GSAT-18. The two satellites will be
launched by Ariane 5 launch vehicles at the Guiana Space Centre, Europes spaceport in Kourou, French Guiana
in 20162017. Both these satellites would be replacement for operational satellites providing services in multiple
frequency bands.
CSE 2008: (b) What do you know about Indian National Satellite Systems ? Describe its important features.

NASA DETECTS ANOTHER POWERFUL GAMMA RAY EXPLOSION


Background:
NASA's swift spacecraft has detected its 1,000th gamma-ray burst (GRB).
What is GRB?

GRBs are believed to consist of a narrow beam of intense radiation released during a supernova or
hypernova as a rapidly rotating, highmass star collapses to form a neutron star, quark star, or black hole.
They are the brightest electromagnetic events known to occur in the universe. Bursts can last from ten
milliseconds to several hours.
The initial burst is usually followed by a longerlived "afterglow" emitted at longer wavelengths (Xray,
ultraviolet, optical, infrared, microwave and radio).

Significance of GRB

Gammaray bursts can be and observational tool for cosmologists as it could help us to understand the form
and evolution of the Universe.

STRONG SOLAR WINDS STRIPPED MARS ATMOSPHERE: NASA

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According to NASA strong solar winds likely played a key role in the transition of the Martian climate from an
early, warm and wet environment that might have supported life to the cold, arid planet Mars.
NASAs Mars Atmosphere and Volatile Evolution (MAVEN) mission data has enabled researchers to
determine the rate at which the Martian atmosphere currently is losing gas to space via stripping by the
solar wind.

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Ancient regions on Mars bear signs of abundant water such as features resembling valleys carved by rivers
and mineral deposits that only form in the presence of liquid water.

What is a solar wind?

The solar wind is a stream of energized, charged particles, primarily electrons and protons, flowing outward
from the Sun, through the solar system at speeds as high as 900 km/s and at a temperature of 1 million
degrees (Celsius).
It is made of plasma, 4th state of matter. Its particles can escape the Sun's gravity because of their high
energy.

How does it affect earth?

31

They collide with the magnetic field of the Earth and cause it to change its shape. The particles then leak
through the magnetic field of the Earth, particularly near the north and south poles
The effects of solar winds on the earth that are visible to naked eye are the Aurora Borealis (the Northern
lights) at the North Pole and the Aurora Australis (he Southern Lights) at the South Pole.
Astronauts and cosmonauts suffer serious radiation related health conditions if they are caught in the path
of solar winds.
Radiation from solar winds is known to cause chromosome damage and cancer, and these conditions may be
fatal for humans in outer space.
Radio and television communication and satellite based internet services are disrupted by solar winds.
Military satellites are the affected the worst by solar winds.
Geomagnetic storms caused by solar winds are very strong and can destabilize or destroy power grids.
They also affect all navigation and communication systems especially for vessels at sea. Aircraft
communications and instruments in the aircraft will be susceptible to faulty functioning during geomagnetic
storms.
The fiery tail seen attached to comets is the effect of solar winds visible to the naked eye.

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IMPRINT INDIA PROGRAM

President Pranab Mukherjee has launched Impacting Research Innovation and Technology (Imprint) India
a joint initiative of Indian Institutes of Technology (IITs) and Indian Institute of Science (IISc).
Imprint India seeks to develop a road map for research to solve major engineering and technology
challenges in 10 technology domains relevant for the country.
The move will motivate technical institutions to conduct research in areas where the country is heavily
dependent on foreign technology. These include health care, information and communication technology,
energy, sustainable habitat, nanotechnology hardware, water resources and river systems, advanced
materials, manufacturing, security & defence, and environment & climate
The objectives of the initiative
o identifying areas of relevance to society that require innovation
o ensuring higher funding support for research into these areas
o measuring the researchs impact on peoples standard of living.

15 YEARS OF HUMAN PRESENCE ON ISS

The International Space Station (ISS) has completed 15 years of continuous human presence
Expedition 1, the first station crew, docked inside the Soyuz TM31 spacecraft on 2nd November 20001.

Significance:

Human beings in the space station have worked on advancing scientific knowledge, demonstrating new
technologies
Making research breakthroughs that will enable longduration human and robotic exploration into deep
space

CSE 2003: (b) In which year and by which countries was International Space Station (ISS) launched? How many
countries are participating in this program ? What are the unique studies being made in the station which could
not be made so accurately on the earth ?

CONFLICT BETWEEN GOOGLE AND EUROPEAN UNION (EU)


A Commission formed by EU accused it of distorting search results to favour its shopping service, harming EU
warned Google of a possible hefty fine at a level sufficient to ensure deterrence
Googles reply in its defence:

Google said it should not be charged with abusing its dominance in Europe as it is providing a free search
service.
A finding of abuse of dominance requires a 'trading relationship' as confirmed by consistent case law. No
trading relationship exists between Google and its users.

Its first component launched into orbit in 1998 but the first Expedition arrived on 2 November 2000. Five different space
agencies representing 15 countries built the $100-billion International Space Station and continue to operate it
today. NASA, Russia's Federal Space Agency (Roscosmos), the European Space Agency, the Canadian Space
Agency and the Japan Aerospace Exploration Agency are the primary space agency partners on the project.
1

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ADITYA- INDIAS SCIENTIFIC MISSION TO STUDY THE SUN

Aditya: Indias first dedicated scientific mission to study the sun.


A joint venture between ISRO and physicists from leading institutes of the country.
The mission aims to put a heavy satellite into what is called a halo orbit around a point between the Sun and
the Earth. This point is at a distance of about 1.5 million km from the earth.

Importance of mission:

33

Help in understand the origin of solar storms and also for constraining how the storms evolve and what path
they take
Help us to understand the corona and solar winds impact on environment
Will yield information for space weather prediction and a possibility of Indians developing their own space
weather prediction models.

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SECURITY
GROUND ZERO SUMMIT, 2015

Ground Zero Summit is the largest collaborative platform in Asia for Cyber security experts and researchers
to address emerging cyber security challenges and demonstrate cuttingedge technologies. It is the exclusive
platform in the region providing opportunities to establish and strengthen relationships between corporate,
public sector undertakings (PSUs), government departments, security and defense establishments.
The Summit gets its name from a piece of ancient Indian history. India is the ground where zero was
discovered and zero is integral part of digital systems.
It is being organized by the Indian Infosec Consortium (IIC), which is an independent notforprofit
organization formed by leading cyber experts.
Aim of the summit: The summit was organized to deliberate upon various issues related to cyber security
challenges emerging due to the latest technological developments.
The theme for the Summit Digital India Securing Digital India

Background:

The crimes related to cyber world can be multilayered, multilocation, multilingual, multicultural and
multilegal, thats why it is difficult to investigate and reach to the criminal.
The cases related to cyber crime have increased by 70% in the year 2014 as compared to the year 2013.
There is growing threat from online radicalisation.

Cyber security is needed:

To ensure critical infrastructure system do not collapse under any situation


To ensure Business continuity
To ensure disaster recovery plans are tested regularly and upgraded
For the success of government initiatives like Digital India, Make in India and Smart Cities.

Snapshots of the Summit:

Various cyber crime case studies, trends and investigation challenges from the Law Enforcement perspective
in India were discussed.
The summit showcased indigenous cyber security products and technologies and Make in India Exhibition of
Indian cyber security startups

Way forwardIndian Cyber Crime Coordination Centre (I-4C)

The government has initiated efforts to set up Indian Cyber Crime Coordination Centre (I4C) on the basis
of the recommendations of the Gulshan Rai committee.
I4C will help in monitoring and capacity building of cyber crimes, and will help law enforcement agencies in
curtailing these crimes

Repository of IT professionals:

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The idea of a National Cyber Registry as a repository of IT professionals was mooted.


The repository envisions identification of a talent pool and through sustained efforts could assist
professionals to enhance respective domain knowledge.

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CSE 2004: What are cyber crimes ? How are these protected?
CSE 2005: Cyberterrorism
CSE 2013: Cyber warfare is considered by some defense analysts to be a larger threat than even Al Qaeda or
terrorism. What do you understand by Cyber warfare? Outline the cyber threats which India is vulnerable to and
bring out the state of the countrys preparedness to deal with the same.

CYBER SECURITY IN SPACE


The Promising $330billion space economy presents opportunities as well as threat due to increasing commercial
interaction between different stakeholders including private commercial sector.
Space presents a double opportunity for hackers as Satellites are becoming trophy attacks for the hackers.
Threat from hacking

The amount of data being beamed between satellites supporting commercial networks on earth is growing
rapidly, thus making them a ripe target for cyberattacks. Satellite makers have reported attempts to add a
virus to software, as well as multiple attempts to intercept data being sent back to earth.
Space is primarily about intellectual property. Research and Development on this stateofart extreme
technology takes a long gestation time and causes huge financial liability a cyberattack to steal from an
industry rival in terms of technology can be a huge time and money saver.
Companies and even countries have been known to exploit manufacturing strengths to gain access to
satellites. For example Recently, an agency received microcircuits made of material whose composition,
under the microscope, was found to have been tampered with at a fundamental level. Had the attack not
been detected, it would have interfered with a random number generator in a way that would have helped
hackers to access the satellite, with worrying repercussions.

Impacts:

It may result into pushing up the cost of commercial ventures and could be a potential brake on future
investment.
Beside Building and launch cost of a satellite Insurance premium is becoming third largest expense for the
companies operating in space
Intellectual property, even military and strategic information loss to a rival country can be potentially
devastating.

Indian Perspective:

This is new, emerging theatre of war and it is easy to paralyze satellite systems leading to repercussions on
security and economy of our country.
There were reports to suggest that Stuxnet was responsible for the power glitch leading to the failure of
Indias INSAT4B communications satellite. However, ISRO has flatly denied this possibility.

Way Forward:

35

The success in the futuristic space endeavour will depend upon setting up a well-tuned, cyber secure and
tamper proof cyber security system, which can provide surge capabilities to bolster Indias Space
programme during critical period or in hostilities

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CSE 2006: Outer Space Treaty


CSE 2014: International civil aviation laws provide all countries complete and exclusive severity over the
airspace above the territory. What do you understand by airspace? What are the implications of these laws on
the space above this airspace? Discuss the challenges which this poses and suggests ways to contain the threat.

POLICE REFORMS
Why in News?
Delhi government continues to fight for political control over Delhi Police and the 2010 Delhi Police Bill continues
to gather dust in the home ministry.
History of police reforms in India:
The Police Act, 1861, was based on a draft put forward by the 1860 committee. It was authoritarian in nature,
coming as it did in the aftermath of the 1857 Sepoy Mutiny.
This act remains in force at the Centre even today. Under this act the state government controls the police force.
The Chief or Home Minister chooses the Commissioner of Police.
Supreme Court Directives
The 2006 SC directions included:

Establishing a State Security Commission (SSC) as a watchdog with members from the government, judiciary
and the civil society.
The commission was supposed to frame policies which make sure that state government does not exercise
unwarranted influence or pressure on the state police.
The order asked for tenure of DGP and field officers to be fixed at two years.
A police establishment board, instead of the government, would deal with transfers of policemen.
It also asked for separation of investigation and law and order units for speedy probe.
Making police an autonomous unit with accountability.
Recruiting only persons of officer cadre to the investigation wing.
Increasing the strength of police by 50 per cent.
Setting up an independent prosecution wing and local courts for every 50,000 population.

In 2008, the SC constituted a monitoring committee headed by Justice KT Thomas to oversee the
implementation of its directions.
The committee noted absolute lack of implementation and paucity of will on part of the states.
In 2015, a perusal of the acts passed by the 17 states shows that not much has changed. The composition of
State Security Commission is not independent of political influence of the ruling government in almost all states.
Grounds of contention:

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Most states have avoided having the opposition leader in the commission and independent members have
been kept away.
Very few states have agreed to give powers of transfer to the Police Establishment Board.
Most states have refused to give more than a oneyear fixed tenure to DGP irrespective of superannuation
with the exception of Gujarat, Kerala, Karnataka and Rajasthan.
In a narrow sense of the term police is a state subject , but issues which transcend the state boundaries need
a positive conception of the police force on reformist grounds.
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Commissions and committees


Starting from the second Police Commission in 1902 headed by A.H.L. Fraser, there have been many
commissions and committees formed to look into reforming the police in India.
Prominent among them are: Gore Committee on Police Training, the National Police Commission, The Ribeiro
Committee on Police Reforms, The Padmanabhaiah Committee on Police Reforms (summary), Prakash Singh Vs
Union of India SC directives for Police Reforms and Soli Sorabjee Committee.

ULFA LEADER ANUP CHETIA HANDED OVER TO INDIA

Anup Chetia is the founding leader of United Liberation Front of Asom (ULFA).
He was extradited to India by Bangladesh where he was arrested in 1997 but due to lack of formal
extradition treaty it took around two decades for his extradition.

Impact on India:

His return to India will considerably weaken rebel ULFA leader Paresh Baruas position.
It would give a boost to Indias government talks with the ULFA faction led by Arabinda Rajkhowa as he is
likely to endorse Rajkhowas position.

NSCN FACTIONS MAKING INROADS IN ARUNACHAL

The framework peace agreement2 signed by Union government with NSCN(IM) is troubling the government
again.
Two other factions of NSCN the NSCN(KholeKitovi) and NSCN(Reformation) were not part of the
initiative.
Ministry of Home Affairs, recently, extended the imposition of AFSPA in 3 districts of Arunachal Pradesh by
another 6 months as these two breakaway factions were making inroads in the state.
Also, various militant outfits ULFA(I), NSCNK, Kamtapur Liberation Organisation (KLO) and National
Democratic Front of Bodoland (S) have joined hands to form a new outfit called the United National
Liberation Front of Western South East Asia (UNLFW).

AFSPA IN MEGHALAYA
Background:

The Meghalaya High Court has asked the Centre to consider


enforcing Armed Forces (Special Powers) Act, 1958 (AFSPA) in
militancyhit Garo Hills region in the state to help the
administration restore the rule of law.
The order of the full bench is significant coming in the wake of
the recent kidnapping and killing of an Intelligence
Bureau officer and businessman
by A'chik Songna

Legal basis for enforcing AFSPA:


The central government can enforce
Armed Forces (Special Powers) Act,
1958 for the purpose of deployment of
armed forces in the aid of civil
administration in order to restore
public order and maintain the law and
order.

2 The government has signed on 3 August 2015 a "historic peace agreement" with Nationalist Socialist Council
of Nagaland (NSCN-IM), the Naga outfit named after its two leaders, Isak Chishi Swu and Thuingaleng Muivah,
concluding talks that began in 1997.

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An'pachakgipa Kotok militants and abduction of government official by Garo National Liberation Army
(GNLA) militants.
Though excessive, the direction of the Meghalaya High Court is not without legal effect. It has consequently
led to a situation where the central government, which is responsible for deploying armed forces, is
considering challenging the order in the Supreme Court.

Why?

AFSPA is not in force in Meghalaya despite a series of violent acts by armed insurgent groups including the
most dreaded Garo National Liberation Army (GNLA).
But areas within 20 km of the states boundary with Assam are under the purview of the Act. The Home
Ministry has declared this 20km belt disturbed, and armed forces deployed in Assam are permitted to go
into this area in hot pursuit of rebel groups.
The issue is revolving around the law and order situation in Meghalaya and judiciary considers that it is
beyond the states capacity to tackle the situation. The court said: "... the police and civil authorities,
despite the best of their efforts, are not able to control the incidents of kidnapping for ransom and killings on
nonfulfilment of illegal demands and the native population is totally exposed to the influence of militancy,
and the funds allocation by the Central Government has not helped in ameliorating the decline of law and
order".

Why not?
There is also a strong resentment and agitation in the state against the Meghalaya Preventive Detention Act
(MPDA) and Meghalaya Maintenance of Public Order (MMPO) which, are allegedly, enforced to silence
democratic protests.
The power to extend the law to a disturbed area clearly falls outside the provenance of the judiciary it is
an assessment that can only be made by the state or central governments.
Judiciary which should check executive powers and limit the application of exceptional laws like AFSPA and
provide accountability for AFSPArelated violations, is entrenching its operation.
By recommending AFSPAs extension to Garo Hills, the Meghalaya High Court has effectively compromised
possible judicial review on this question in the future.
The order is incompatible with international norms and practices. Application of AFSPA is in violation of basic
human rights and breaches the sanctity of contemporary law and modern jurisprudence.

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ENVIRONMENT
ILEDTHEWAY CAMPAIGN
It is a campaign of Indian government to save energy by
switching to Led bulbs.
Tag line: To make India brighter and smarter
Why in news:
Union Minister for Power, Coal and New & Renewable Energy
launched the micro site www.iledtheway.in.
Importance of this micro site:
The micro site will attempt to reach out to all citizens in India and spread awareness about the nationwide
movement of #iLEDtheway, spearheaded by Energy Efficiency Services Limited (EESL).
Through this micro site, consumers can take a pledge of switching to LED bulbs, which are safer, brighter and
consume less energy.
EESL has launched Domestic Efficient Lighting Programme (DELP) and has distributed over 2.4 crore LED
bulbs to consumers under the scheme.
Consumers who do not have access to the LED bulb distribution under the DELP scheme in their city/state,
can preregister for the scheme by sharing their contact details.
The government aims to replace 77 crore conventional bulbs and CFLs with the LEDs under DELP and 3.5
crore street lights over 3year period, making it the largest LED based lighting programme in the world.

CSE 2011
What is the difference between a CFL and an LED lamp?
1. To produce light, a CFL uses mercury vapour and phosphor while an LED lamp uses semiconductor material.
2. The average life span of a CFL is much longer than that of an LED lamp 3. A CFL is less energyefficient as
compared to an LED lamp.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

BHARAT STAGE-VI FUEL(NORMS) ROLLOUT TARGET OF 2020


What are Bharat stage fuel norms?

39

The auto emission norms are emission standards which are adopted by the government of a nation to check
the air pollutants released from any internal combustion engine equipment, including motor vehicles.
These norms were introduced in India in 2000, when the Bharat Stage norms were adopted by the then
government, based on the European emission norms.
Each stage specifies a certain limit on the pollutants released.
This limit is controlled by the type of fuel made by oil companies and the upgradations and modifications
made by the auto firms to their vehicles to control the pollutants released.

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Why in news?
Recently Petroleum and Natural Gas Ministry confirmed that his Ministry aimed to implement introduction of
the cleaner Bharat StageVI fuel in the country by 2020.
Current status of BS:

BSIV norms currently applicable in 33 cities where the required grade of fuel is available, the rest of the
country follows BSIII standards.

Issues with this notification:

Auto firms have flagged their concerns as jumping directly to BSVI would not offer enough time for the
design changes to be instituted.
These firms are also worried about the funds to get this done.
Directly aping the Euro norms is also problematic, considering that driving conditions in India are different
from Europe.

CSE 2010: (c) Bring out the salient features of the evolution and the current status of the Bharat Stage vehicle
emission norms in the country.

CARBON DIOXIDE LEVELS HIT RECORD HIGH: WMO

Recently, WMO (World Meteorological Organization) reported that average levels of carbon
dioxide exceeded 400 parts per million in the early months of 2015, a rise of 43 percent over preindustrial
levels.

Impact of this rise:

If the levels stay where they are, it could cause extreme weather, hotter temperatures worldwide, rising sea
levels, melting ice, and increased ocean acidity.
This year is expected to be the world's warmest year on record, in part because of the warming influence of
a strong El Nio event in the Pacific Ocean, which is adding more warming on top of the longterm manmade
trend from greenhouse gas emissions.

About WMO:
It is a specialized agency of the United Nation. It studies the behavior of the Earth's atmosphere, its interaction
with the oceans, the climate it produces and the resulting distribution of water resources.
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CSE 2012: The increasing amount of carbon dioxide in the air is slowly raising the temperature of the
atmosphere, because it absorbs
(a) The water vapour of the air and retains its heat.
(b) The ultraviolet part of the solar radiation.
(c) All the solar radiations.
(d) The infrared part of the solar radiation.

ANTARCTICA GAINING MORE ICE THAN IT'S LOSING: NASA

Antarctica is currently gaining enough ice to outweigh the increased losses from the continents thinning
glaciers, a new NASA study has found.
The research challenges the conclusions of other studies, including the Intergovernmental Panel on Climate
Changes (IPCC) 2013 report, which says that Antarctica is overall losing land ice.

Its impact:

This net gain in ice would mean that Antarctica would not be contributing to sea level rises, but could help
offset some of the major ice losses in places from Greenland and glaciers worldwide.
Currently, it is believed that ice loss in Antarctica contributes to roughly 8% of global sea level rise. This rise
can be seen in recent high tides in coastal cities like Miami.

Major concerns:

Authors of the study say the increasing loss of ice in the West Antarctic and the peninsula, plus slowing ice
gains elsewhere on the continent, could mean that there will be overall losses of ice in the next 20 years.
In fact, this may already be occurring, according to other researches which suggest the West Antarctic ice
sheet is destabilizing, which would more than overcome the ice gains and could result in 3 meters of sea
level rise.
If this study is correct, and Antarctica is not contributing to this rise in sea level, that means scientists must
be underestimating the impact from other sources of sea level risesuch as from melting from Greenland or
the heating of the oceans.

Paris Climate change conference:


The twentyfirst session of the Conference of the Parties (COP) and the eleventh session of the Conference of the
Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP) will take place from 30 November to 11
December 2015, in Paris, France.
In news:

With the world expecting to sign a global climate deal in Paris next month (December), India on preCOP
(conference of parties) said that the crucial issue of post2020 finance would be fundamental to the success
of the climate summit.

Issues:

41

The rich nations are supposed to contribute to the Green Climate Fund (GCF) a multilateral fund to help
poor and developing countries fight climate change is currently revolved around nature of contribution and
beneficiaries.

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The commitment to provide finance by developed countries should be based on their historical
responsibilities and not only on their economic capacities.
Rich nations want the emerging economies like India, Brazil and South Africa should also contribute to the
GCF and the money should go to poorer countries. Thus the entire issue of the climate finance has become
quite complex.
Besides, the rich nations also want loans and existing overseas development assistance (ODA) as counted as
the climate finance the points which have strongly been opposed by G77 plus China group.

Copyright by Vision IAS


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VISIONIAS
www.visionias.in

CURRENT AFFAIRS
NOVEMBER 2015
16 30 November

Copyright by Vision IAS


All rights are reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
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TABLE OF CONTENTS
POLITY AND GOVERNANCE ____________________________________________________________ 5
Streedhan' ______________________________________________________________________________ 5
Freedom of Press__________________________________________________________________________ 5
E-Governance ____________________________________________________________________________ 6
Virtual Police Station (VPS) for Public _________________________________________________________ 7
Tribal Rights and Issues _____________________________________________________________________ 7
Marine Fisheries __________________________________________________________________________ 8
Constitution Day _________________________________________________________________________ 10
Pradhan Mantri Gram Sadak Yojana _________________________________________________________ 10
Interlinking of Rivers ______________________________________________________________________ 11
Green Revolution in India __________________________________________________________________ 12
Second Green Revolution __________________________________________________________________ 13
Also in news_____________________________________________________________________________ 14
Swachh Delhi APP ________________________________________________________________________ 14
Judicial Independence _____________________________________________________________________ 14
Menace of Tray Dogs______________________________________________________________________ 16
10 Years of RTI Act-Successes _______________________________________________________________ 17

INTERNATIONAL RELATIONS __________________________________________________________ 18


India and IBSA ___________________________________________________________________________ 18
India re-elected as Member of International Maritime Council ____________________________________ 18
India, Australia nuclear deal to come into force ________________________________________________ 18
India and Kuwait _________________________________________________________________________ 19
India and Singapore enter into strategic partnership ____________________________________________ 19
Latest in India and Japan relations ___________________________________________________________ 19
Military reforms in China __________________________________________________________________ 20
India, China to Exchange Information on Terror Activities ________________________________________ 21
APEC Summit, 2015 _______________________________________________________________________ 22
India SAARC relations _____________________________________________________________________ 23
India Malaysia relations __________________________________________________________________ 23
Prime minister Modi Visit to UK _____________________________________________________________ 23
Global Solar Alliance ______________________________________________________________________ 24
G-20 Summit 2015 ________________________________________________________________________ 24
Paris attack _____________________________________________________________________________ 25
UN Resolution against ISIS _________________________________________________________________ 26

ECONOMY _________________________________________________________________________ 27
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The Seventh Pay Commission _______________________________________________________________ 27


Yuan in SDR _____________________________________________________________________________ 28
Megha Food Park ________________________________________________________________________ 28
Global Financial Security Index ______________________________________________________________ 30
ICEGATE ________________________________________________________________________________ 30
Regulatory Impact Assessment _____________________________________________________________ 31
Jute Price Rise ___________________________________________________________________________ 31
Kelkar Panel to Revitalize PPP ______________________________________________________________ 32
Technology Acquisition and Development Fund Under NMP ______________________________________ 33
Also in news_____________________________________________________________________________ 34
Rise in Public Sector Banks's NPA ____________________________________________________________ 34
Manufacturing Sector: How to Attract Best Talent ______________________________________________ 35
IMF Reforms ____________________________________________________________________________ 35
Special Agency for Corporate Fraud __________________________________________________________ 36
RBI relaxes ECB norms ____________________________________________________________________ 36

SOCIAL ISSUES______________________________________________________________________ 37
Transgender Policy _______________________________________________________________________ 37
Gender Inequality Territorial Army _________________________________________________________ 37
Obesity _________________________________________________________________________________ 38
Second International Conference on Ramlila___________________________________________________ 38
World Indology Conference ________________________________________________________________ 38
Social Innovation _________________________________________________________________________ 39
Changing Gender Dynamics in Family ________________________________________________________ 39

SCIENCE AND TECHNOLOGY / ENVIRONMENT ____________________________________________ 40


Only 11% will have 3G out of 500 crores unique mobile users by the end of 2015 in India ______________ 40
Requirement for National Policy for Optical fibre _______________________________________________ 40
Contributions of Sir Chandrasekhara Venkata Raman ___________________________________________ 40
Honors and awards _______________________________________________________________________ 41
New influenza viruses likely to infect Indians __________________________________________________ 41
NISAR mission collaboration of ISRO and NASA ________________________________________________ 42
'Li-Fi' LED light bulbs to transmit gigabit-level wireless data ______________________________________ 42

ENVIRONMENT _____________________________________________________________________ 44
Doyang Lake, Nagaland attracts Amur Falcom _________________________________________________ 44
India and Sendai Agreement for Disaster Reduction_____________________________________________ 44
NGT asks Centre & States to protect Wetlands _________________________________________________ 45
Poor urban planning caused floods in Chennai _________________________________________________ 45
From CBDR to INDC _______________________________________________________________________ 46
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SECURITY__________________________________________________________________________ 47
Paris Attacks why France? _________________________________________________________________ 47
Mega city Security conference Mumbai _____________________________________________________ 48
India- US Cooperation on Internal Security ____________________________________________________ 48
Mumbai to Share Techniques with Global Cities on Terror Fight ___________________________________ 48
Relief and Rehabilitations of Migrants in Jammu and Kashmir ____________________________________ 49
Extension of CCTNS Project_________________________________________________________________ 49

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POLITY AND GOVERNANCE


STREEDHAN'
Recently the Supreme Court held that abused women judicially separated from their husbands had every right to
invoke the domestic violence law to get back their streedhan.
What is Streedhan?

A gift in gold valuables given to a woman by her family is streedhan


It is her exclusive and absolute property.

Background

Earlier in a case Tripura High Court confirmed a magisterial courts order rejecting a womens application
for return of streedhan.
Both courts held that the petitioner could not be termed an aggrieved person under the Protection
of Women from Domestic Violence Act 2005 to seek any relief as she was judicially separated from her
husband.

Judicial Separation

Judicial separation is a period of suspension of marriage granted by the court.


This time may be used by the couple to explore the possibilities of reviving their broken marriage. If the
result is negative, the court annuls their marriage with a decree of divorce.

The Supreme Court Verdict

The SC said that a husband had only a qualified right over a womans streedhan the right to use it in
times of distress.
The court ruled that the woman, who had suffered domestic and economic abuse at her matrimonial
home, continued to be a victim or an aggrieved person under the domestic violence law even after her
judicial separation. The court said the legal relationship of a husband and wife continued during the
period of judicial separation.

FREEDOM OF PRESS
Why in news?
On November 16, when the country celebrated the National Press Freedom Day, three newspapers in Nagaland
were published with blank editorials to protest a notification from Assam Rifles that had the effect of muzzling
the press freedom.

The papers were instructed to refrain from publishing news related to Naga insurgent group NSCNKhaplang [NSCN-K].
The notice said that any article which projects the demands of NSCN-K and gives it publicity is a
violation under the Unlawful Activities [Prevention] Act, 1967 and should not be published by your
newspaper.

Concerns:

Such notifications have implications for the freedom of the press.


India ranks at 136 among 190 nations on the World Press Freedom Index published by Reporters
without Borders.

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This incident draws attention to the problems faced by the press in conflict zones, trapped as media
persons between the state armed with the law to enforce varying degrees of censorship, and militant
groups who use methods of intimidation to have their versions published.

Role of Press Council of India (PCI):

PCI has taken suo motu note of the case and served notices to the paramilitary force and the State
government.
The PCI has the power to review any development likely to restrict the supply and dissemination of news
of public interest and importance.

CCI
IMPOSES
AIRLINES:

PENALTIES

UPON

Competition Commission of India (CCI)

Recently the Competition Commission of India (CCI) imposed


penalties upon 3 airlines for concerted action in fixing and
revising Fuel Surcharge (FSC) for transporting cargo.
CCIs Decision

CCI has ruled that Jet Airways (India) Ltd, InterGlobe


Aviation Ltd, Spice Jet Ltd, Air India Ltd and Go
Airlines (India) Ltd. acted in parallel in collusion in
fixing FSC rates.
Penalties were imposed upon Jet Airways (India) Ltd.,
InterGlobe Aviation Limited and Spice Jet Limited
respectively for the impugned conduct which was
found to be in contravention of the provisions of
section 3(1) read with section 3(3)(a) of the Act.
While imposing penalties, the Commission noted that
such conduct in the air cargo industry undermines
economic development of the country and
ultimately acts to the detriment of end-consumers.
Such conduct was found to have resulted in indirectly
determining the rates of air cargo transport and
thereby in contravention of the provisions of the Act.
The penalty was imposed at 1 per cent of the average
turnover of the last three financial years.

The Commission has been established as


a statutory body entrusted with the
responsibility to prevent practices having
adverse effect on competition, to
promote and sustain competition in
markets, to protect interests of
consumers and to ensure freedom of
trade.
CCI is responsible for enforcement of The
Competition Act, 2002 throughout India.

Section 3 of the Competition Act 2002 deals


with the anti-competitive agreements.
Section 3(1) of the Act says- No enterprise or
association of enterprises or person or
association of persons shall enter into any
agreement in respect of production, supply,
distribution, storage, acquisition or control of
goods or provision of services, which causes
or is likely to cause an appreciable adverse
effect on competition within India.
Section 19 empowers the commission to
enquire into certain agreements dominant
position of enterprise

E-GOVERNANCE
E-tendering of Railway Contracts
Recently Union Railway Minister has said that all Indian Railway contracts will be tendered online from early next
year on an e-tendering platform.
Why e-tendering?

Earlier tendering in the railways used to take even six years.


To bring in transparency in the processes and to cut-down the time lag.
Efforts are being made to reduce time gap between announcement of projects and their actual
implementation, which has been reduced to six months.

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Modernisation - Railways is also pushing for a rollout of new, modern coaches which would change the
way a typical journey by Indian Railways is often perceived
First few modern railway coaches designed by the National Institute of Design have already been rolled
out by Railways.
All these tenders will be put on the e-platform in the next two months.

VIRTUAL POLICE STATION (VPS) FOR PUBLIC

VPS is being launched in the Capital to make functioning of a police station comprehensible for the
public.
International NGO Commonwealth Human Rights Initiative (CHRI) has developed the VPS.
The VPS is a first-of-its kind training tool to acquaint the public with the functioning of a police station
through the click of a mouse.
It allows the police and public to enter every room of a computerised police station to explore and learn
the key procedures such as arrest, registration of complaints of sexual assault, registration of FIRs and
more.
VPS is a step towards humanising the functioning of the police as it demystifies the police station by
exposing citizens to the layers of work management, administration, investigation, going to court,
forensics that the personnel in the police station perform.
This tool will empower women afraid to report rapes.
The goal is to transform India's police "from a police force to a police service.

TRIBAL RIGHTS AND ISSUES


Even 68 years after Independence, the problems of tribal communities are about access to basic needs. These
include, but are not restricted to, elementary education, community healthcare, sustainable livelihood support,
the public distribution system, food security, drinking water and sanitation, debt, and infrastructure. For them,
equality of opportunity remains largely unfulfilled.
Tribals are being denied their rights under FRA

Allegations that 60 per cent of the claims of tribals under the Forest Rights Act (FRA) have been rejected
by the government.
Systematic undermining of the implementation of the forest rights act.
Diversion of forest land for industrial purpose by displacing tribals
Bypassing of the consent of gram sabha clause to expedite development projects.
Alienation of tribals from forestland is one of the major reasons for fuelling Left Wing Extremism in the
country.
The report of the High Level Committee on Socio-Economic, Health and educational status of tribal
communities has also blamed policies of the governments for violating tribal rights.
Under the Constitutional scheme, non-tribals are not entitled to property ownership in the tribal areas
but mining in the tribal areas is exploitative in nature as benefits do not reach to tribal people of the
region.

Tribal children ill-served by government schools

Standards abysmally low in State-run tribal schools.


Most of the tribal children in govt. Schools lack basic literacy skills.
A crucial issue is the lack of trained teachers especially after 2001, when the government had decided to
recruit only teachers from the tribal community.
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The disconnect between the unique tribal way of life - distinct languages and dialects, culture and food
habits - and what is enforced at the Ashram schools has led to a loss of identity and sense of belonging
among the tribal children.
Students from Particularly Vulnerable Tribal Group (PVTG) are losing out on their native culture in the
schools.
The teachers, who mostly hail from the more integrated tribes, do not have an understanding of the
culture of the PVTGs.

Way forward

There is urgent need to focus on the capacity building of teachers.


The teachers have to catch on with the present-day education system for that adequate skill training
should be provided.

Tribal healthcare issue and policy intervention

Infant mortality rate, child mortality rate, poor maternal health, child sex ratio, malnutrition, high
prevalence of anaemia, malaria and fluorosis are some of the biggest barriers to tribal health.
Considerable cut in budgetary allocations for health care and programmes for tribal development poses
a challenge to ensure basic health care to tribal people.
Sickle cell disease among tribal people

Way forward

The Health Ministry decided to hold the workshop on Best Practices in Tribal Health in tribal heartland
at Shodhgram village in Maharashtras Gadchiroli district.
This step is governments recognition of the differential and unique health needs of tribal communities.
ICMR has started the screening programmes for sickle cell disease in 18 states and at the end of the
programme lakhs of tribal people will know that they carry the disease or the gene for it.
The State needs to ensure that carriers of sickle cell disease, particularly girls, do not face discrimination.
There is an urgent need of community-based action and research for and on the health of Indias neonates and tribal people.

(Refer our January material for recommendations of Xaxa committee on tribal rights)

MARINE FISHERIES
Why in news?
Recently an expert committee was constituted to revise the National Marine Fisheries Policy.
Why revision of the policy?

The government has decided to go in for a revised policy after the Meena Kumari Committee report on
Marine Fisheries triggered a wave of protest across the country.
The policy will ensure all-round development of fisheries in the country.
Marine fishery in India, the worlds second biggest fish producer from aquaculture, has great potential to
meet the nutritional security of the population.

Fishing Sector: a perspective

India is the second largest producer of fish in the world contributing to 5.43% of global fish production.
India is also a major producer of fish through aquaculture and ranks second in the world after China.

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Fisheries being one of the promising sectors of agriculture and allied activities in India. It occupies a very
important place in the socio-economic
Dr. B. Meena Kumari Commission on deep sea
development of the country.
fishing
It has been recognized as a powerful income
and employment generator as it stimulates
Earlier an expert committee was constituted
growth of a number of subsidiary industries,
under the chairpersonship of Dr. B. Meena Kumari
and is a source of cheap and nutritious food
for comprehensive review of deep-sea fishing
besides being a foreign exchange earner.
policy. Recommendations of the committee were
It is the source of livelihood for a large section
opposed by the traditional fishing communities,
of economically backward population of the
some of the issues with the recommendations are
country. It supports livelihood of almost 1.5
as following:
million people in our country.
The fresh guidelines issued recently for fishing
After Independence, fish production has been
in the EEZ - between 22 km and 370 km
increased from 7.5 lakh tonnes in 1950-51 to
beyond territorial waters - allow vessels with a
100.70 lakh tonnes during 2014-15, while the
length of 15 metres or more to operate in this
export earnings of 33,441 crore in 2014-15
zone by getting a "letter of permission" from
(US$ 5.51 billion), equalled about 18% of the
the Centre.
export earnings from the agriculture sector.
These ships can be owned or acquired by
Indian entrepreneurs or by joint ventures with
Key issues affecting the marine fisheries sector
up to 49 per cent foreign investment.
Traditional fishermen feared that such fishing
Fishing communities in Kerala and other coastal
states are up in arms against the constitution of
ventures will threaten their livelihood by
encroaching into some of the areas, which are
expert committee as it doesnt ensure the
now within their reach.
representation of stakeholders.
One
of
the
most
controversial
Policies have failed to address the livelihood
recommendations is the creation of a buffer
concerns of the fishermen.
zone between the near-shore and offshore
Climate change and sea level rise poses great
regions (waters between 200 m and 500 m in
challenge
depth) along the coast and to regulate fishing
Operation of foreign trawlers in Indian waters
there in order to augment resources in the
Destructive methods of fishing
near-shore areas as well as the deep-sea
Encroachment of coastal areas for non-fishing
regions in the EEZ.
activities
Ban on fishing by motorized boats in sea
during mating and nesting season of Olive Ridley turtles has been a major worry for fishermen in Odisha.
Around 3000 families of fishermen are affected by this ban.
Migration of the fishermen to earn their livelihood through other means
Reduced catch impact marine fish processing units adversely
Lack of accurate data on assessment of fishery resources and their potential in terms of fish production
Lack of technological innovation urgent need for development of sustainable technologies for fin and
shell fish culture, yield optimization, harvest and post-harvest operations.
Infrastructure challenge inadequate landing and berthing facilities for fishing vessels

Way forward

Blue Revolution

Recently the government has formulated an umbrella scheme


Blue Revolution: Integrated Development and Management of
Fisheries by merging all the existing schemes.

This umbrella scheme will cover inland fisheries,


aquaculture and marine fisheries including deep sea
fishing, mari-culture and all activities undertaken by the
National Fisheries Development Board (NFDB).
Development of new technologies to enhance production.
www.visionias.in

It visualizes Creating an enabling


environment for an integrated and
holistic development and management
of fisheries keeping in view the
sustainability,
bio-security
and
environmental concerns.

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Need for value addition, processing, hygienic handling and promotion of domestic fish marketing.
Capacity building of fishers, fish farmers and fishery professionals and strengthening of infrastructure
including transport, storage and processing.
Creation of marketing facilities with forward and backward linkages
Adequate infrastructure in the form of fishing harbours and fish landing centres.
Increasing employment generating ability of fisheries sector.
Diversification of fishing towards the under exploited deep sea and oceanic resources like tuna, shark,
sail fish and allied species.
Open sea cage culture of high value fin fishes and shell fishes involving fisher folk as an innovative
system.
Adoption of culture based capture fisheries in reservoirs and under-utilized water bodies.
Networking of all line Departments/organizations dealing with fisheries under a single agency.
Revamping of FFDAs and involvement of Cooperative Societies and Self Help Groups (SHGs) and ensuring
the Socio economic welfare and empowerment of fisher folk.

CONSTITUTION DAY

The first constitution day was celebrated on 26th November, 2015.


The 'Constitution Day' will be a part of year-long nationwide celebrations for 125th birth Anniversary of
Dr. B. R. Ambedkar.
Ministry of Social Justice and Empowerment is the Nodal Ministry for celebration of Constitution Day.

Why celebrate Constitution Day:

At a time when there are so many ideological clashes, growing inequality, suppression of womens
rights, it is the Constitution of our country that can bind everyone together
The move would not only help resurrect memories of some of the tallest leaders who helped draft the
document but also hopefully instill once again the spirit in which it was adopted .
Constitution Day once again reaffirms our faith in the ideals of the Constitution.

Way Ahead
Ideals of constitution are needed to be incorporated in ways of living of citizens of India and also they should be
made a part of learning process in schools so as the future citizens display these ideals in their day-to-day lives.

PRADHAN MANTRI GRAM SADAK YOJANA

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The Government has brought forward the target date by three years from 2022 to 2019 to achieve
complete rural connectivity through all-weather roads under Pradhan Mantri Gram Sadak Yojana.
This accelerated implementation will be achieved by providing enhanced financial allocation of by Rs.
5,000 crore for year 2015-16 and through a modified funding pattern.
fund sharing pattern will be in the ratio of 60:40 between the Centre and States for all States except for
8 North Eastern and 3 Himalayan States for which it will be 90:10.
This has been done as a consequence of recommendations of 14th Finance Commission for higher
devolution of funds to states.
The decision to allocate higher amount of funds to the scheme will give a big boost to public investment
in the rural sector particularly rural infrastructure.
To financially incentivize the States who achieve the targets allocated to them, within the prescribed
time frame, funds for periodic maintenance expenditure is being proposed.

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Facts about the scheme:

PMGSY was launched in year 2000 as a Centrally Sponsored Scheme with the objective to provide single
all-weather road connectivity to all eligible unconnected rural habitations.
Ministry of Rural Development is the nodal ministry and the scheme is managed by National Rural
Roads Development Agency (NRRDA).
Under PMGSY-I, 1,78,184 unconnected habitations were identified. However, in 15 years of
implementation so far, 1,12,550 habitations (63%) have been connected with PMGSY roads
In February, 2015 government had modified the guidelines for PMGSY to provide rural roads to the
model villages adopted by the Members of Parliament under the Saansad Adarsh Gram Yojana (SAGY) on
priority basis.

INTERLINKING OF RIVERS
Why in news:
Government has taken up Interlinking of River (ILR) programme under National Perspective Plan (NPP) on a high
priority and the Detailed Project Reports (DPR) of Ken Betwa Link Project, Damanganga Pinjal Link Project
and Par-Tapi-Narmada link project have been completed.
National River Linking Project (NRLP):
The National River Linking Project (NRLP)
formally known as the National Perspective
Plan, envisages the transfer of water from
water surplus basins where there is
flooding to water deficit basins where
there is drought/scarcity, through interbasin water transfer projects.
It will comprise of 30 links to connect 37
rivers across the nation through a network
of nearly 3000 storage dams to form a
gigantic South Asian Water Grid. It includes
two components Himalayan and
Peninsular.
Benefits of the Project:

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Hydropower generation: It claims to


generate total power of 34 GW.
Irrigation benefits: To provide
additional irrigation to 35 million
hectares (m ha) in the water-scarce
western and peninsular regions,
which includes 25 m ha through
surface irrigation and 10 m ha
through groundwater. This will
further create employment, boost
crop outputs and farm incomes and
multiply benefits through backward
(farm equipment and input supplies) and forward linkages (agro-processing industries).
Flood prevention: With network of rivers this problem can be greatly avoided by channeling excess
water to areas that are facing drought.
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Navigation: Newly created network of canals opens up new routes and ways and routes of water
navigation, which is generally more efficient and cheaper compared to road transport.
India has four per cent of the world's total renewable water resources, the seventh largest. Of this
amount, only 58% is the potentially usable water resource (PUWR). Despite India's generous water
resources, its per capita storage is staggeringly low at a mere 200 m3 per person whereas it is 2,486 m3
in China. The NRLP, when complete, will boost per capita PUWR storage.

Concerns:

The irreversible damage to the country and water resources by altering natural drainage, leading to
flooding and water logging, and vast tracts will submerge leading to displacement of innumerable
people.
There are also concerns that surplus water should not be diverted from a river on such a large scale as
excess water is necessary to keep river basins healthyit percolates down the soil and recharges
groundwater.
Interlinking a toxic river with a non-toxic one will have a devastating impact on rivers, humans and
wildlife.
The project could also create many water conflicts both at the state and international level. The country
is already reeling due to many inter-state water conflicts like
Ravi-Beas Water Dispute between Punjab-Haryana-Rajasthan
Cauvery Water Dispute between Kerala-Karnataka-Tamil Nadu-Puduchery.
At the international level
with Bangladesh over the Teesta's water,
with China over the Brahmaputra's water and
with Nepal over the Mahakali's water.

GREEN REVOLUTION IN INDIA


Why in news?
The Golden Jubilee of Green Revolution celebrations to commemorate the advent of Green Revolution in India
Background of Green Revolution

In the initial years of planning heavy industrialisation under state ownership was the mainstay of
development policy and a symbol of modernisation. For food, however, India relied on supplies from the
United States under Public Law 480 (PL-480) against rupee payments, as India did not have much foreign
exchange to buy large quantities of food in international markets.
The folly of this set-up became apparent in the mid-1960s, when the US suspended wheat supplies
temporarily (due to some political differences) at a time when India was facing back-to-back droughts
and the country was literally living from ship to mouth.
India was quick to learn from its PL-480 mistake and neglect of agriculture. It realised that its political
freedom could be imperiled if it was not self-reliant in basic food production.
India imported 18,000 tonnes of high yielding varieties (HYV) of wheat from Mexico in 1966, and
ushered in the Green Revolution.

Some of the important components of the green revolution in India are as follows:

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High Yielding Varieties (HYV) of seeds.


Irrigation (a) surface and (b) ground.
Use of fertilizers (chemical), Insecticides and Pesticides.
Command Area Development (CAD).
Land reforms and Consolidation of holdings.
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Supply of agricultural credit.


Rural electrification.
Rural Roads and Marketing.
Farm Mechanisation.
Agricultural Universities.

Impact of Green Revolution:

Increase in food production: Since 1967-68,


o Our wheat production has increased by almost 15 times.
o Rice production has gone up by more than five times.
o India is not only self-sufficient, but also a net exporter of agri-produce. In 2014-15, agri-exports
were $38 billion against imports of less than $20 billion. India is the largest exporter of rice in the
world.
Prosperity of Farmers: This has, especially, been the case with big farmers having more than 10 hectares
of land.
Industrial Growth: Green Revolution brought about large scale farm mechanisation which created
demand for machines like tractors, harvestors, threshers, combines, diesel engines, electric motors,
pumping sets, etc. Besides, demand for chemical fertilizers, pesticides, insecticides, weedicides, etc. also
increased considerably. Consequently, industries producing these items progressed by leaps and bounds.
Moreover, several agricultural products are used as raw materials in agro based industries.
Rural Employment: While on one hand, large scale unemployment was feared due to mechanization of
farming, there was an appreciable increase in the demand for labour force due to multiple cropping.
Change in the Attitude of Farmers: The way farmers readily adopted the Green Revolution technology
has exploded the myth that the Indian farmer is tradition bound and does not use new methods and
techniques.

Shortcomings of Green Revolution:

Adoption of new agricultural strategy through IADP and HYVP was very much restricted among the big
farmers, necessitating a heavy amount of investment.
The new agricultural strategy failed to recognize the need for institutional reforms
New agricultural strategy along-with increased mechanization of agriculture has created a problem of
labour displacement.
Green revolution widened the inter-regional disparities in farm production and income.
Green revolution has certain undesirable social consequences arising from incapacitation due to
accidents and acute poisoning from the use of pesticides.

After the green revolution years today once again Indian agriculture is on cross roads with new challenges of
development. Our major challenges are depletion and degradation of natural resources, drop in the water table,
reduction in flow of water in rivers, lakes, biotic and abiotic stresses, climatic change etc. Today we need to
develop such strategies that will lead to sustainable productivity gains and also profitability of farming.

SECOND GREEN REVOLUTION


We must try and absorb some of the lessons from the past experience while paying adequate attention to longterm concerns such as sustainable use of natural resources, soil health and adaptation to climate change along
with short-term priorities such as accelerating growth.

13

It is use of sustainable agriculture by way of using eco-friendly means.


Keep in view the local geographical and climatic position, soil fertility and productivity and nature, water,
human resource and infrastructure availability and cost of production.
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Use of bio-fertilizers and bio-pesticides


Practices followed in organic farming which includes conservation of water among others - more crop
with per drop
It also includes use of genetically modified crops.
bouquet of new technologies such as Information Technology, Nanotechnology, Biotechnology, precision
agriculture, biodynamic farming.
Massive crop diversification and multiple cropping along with achieving self-sufficiency in pulses and
oilseeds and doubling horticulture and floriculture output.
In India, it exists as both- a concept and a program.
In 2004, the Government announced a program named Second Green Revolution.
The Government, from time to time, also launched many other programs in furtherance of Second
Green Revolution - Bringing Green Revolution in Eastern India (BGREI) program in 2010-11 as a sub
scheme of Rashtriya Krishi Vikas Yojana.
(BGREI) program with objective of enhancing agricultural production in seven states of Eastern India Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, West Bengal and eastern Uttar Pradesh.
Recently, PM of India has also spoken about bringing Second Green Revolution to India.
Unlike Green Revolution which focused on only five food grains- wheat, rice, jowar, bajra, maize- the
Second Green Revolution includes whole agricultural sector within its ambit. Hence, it is also called the
Rainbow Revolution.
Due to its potential, it is also known as Evergreen Revolution, a name popularized by M.S. Swaminathan,
the architect of Indias first green revolution.

Q. Why did the Green Revolution in India virtually by-pass the eastern region despite fertile soil and good
availability of water? (Q.22, Paper-I, UPSC, 2014)

ALSO IN NEWS
SWACHH DELHI APP

The Delhi Government and municipalities launched Swachh Delhi mobile app It is a citizen-centric app.
Delhiites can now take a picture of any heap of garbage or debris lying around the city and upload it to a
centralised app for the government or municipal corporations to clean it.
Photos will automatically include the GPS coordinates of the spots, the work of clearing will be assigned
to an agency.
The Delhi Governments Public Works Department will clear malba and the three corporations, the New
Delhi Municipal Council and the Delhi Cantonment Board will lift garbage in their jurisdictions.

JUDICIAL INDEPENDENCE
(We had covered NJAC in October Current affairs as well. This is some additional material)
Background

14

Recently the Supreme Court struck down the National Judicial appointments Commission Act and the
99th Constitution (Amendment) Act as unconstitutional stating it violates the basic structure of the
constitution by compromising judicial independence.
The Supreme Court, then, undertook to reform the 21 year old collegium system.

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Issues

The procedures adopted for appointment to the higher judiciary are still unsatisfactory to preserve the
independence of judiciary.
The present collegium system lacks transparency, accountability and objectivity. The trust deficit has
affected the credibility of the collegium system.
How far the appointment procedure secures the personal independence of judges?

What is Judicial Independence?

The other organs of the government like the executive and legislature must not restrain the functioning
of the judiciary in such a way that it is unable to do justice.
It is about freedom from all pressures in the exercise of the adjudicative function.

Why it is important to be ensured?

It is central to democracy because it is the judiciary which helps the realisation of the rule of law and
protection of human rights.
It is the independence of the judiciary that leads to confidence in the mind of public that it will come to
their aid and rescue if any wrong is committed by executive.

Why personal independence of judges is important?

To ensure judicial independence, personal independence of the judges is as important as the


institutional independence.
Impartiality, integrity, propriety, equality, competence etc. are pillars on which personal independence is
dependent. Thus by ensuring these qualities judicial independence can be ensured.

Challenges to Judicial Independence

No clarity on the eligibility criteria for appointment of judges -Even though the pool of eligible
candidates for judicial selection is partly determined by the constitution but it does not speak about
standards of integrity, propriety, competence, independence etc. as qualifications essential for judicial
selection.
Qualifications essential for judicial selection are taken for granted and left to the selectors to assess
them by whatever means available to them.
Collegiums judges are unable to justify the wrong appointments made in the past.
Growing anxieties about vacancies touching 40 percent in the High Courts.
Opaque collegium system with almost no transparency
There is no complaint redressal mechanism in the existing appointment mechanism.
Corruption in judiciary
Massive burden of pending cases

Way to judicial independence Some Suggestions to establish an efficient procedure for the appointment of
judges

15

There should be verifiable method to create a pool of eligible persons for judicial appointments.
A transparent procedure should be established to prescribe the norms and standards expected of
candidates seeking to be appointed as judges and invite applications from them.
Nominations can be made by retired judges, senior advocates, bar council or bar associations, etc., after
testifying the essential qualifications required.
On receipt of the applications, a system of short-listing based on competitive merit can be performed.
Names of all the candidates short-listed can be posted on the website of the court for a reasonable
period to elicit objections.

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There can be a technical committee of retired judges to shortlist the applications and to respond to
objections/grievance in the initial stage of the selection. And this part of the procedure should be open
to Right to Information Act.
Then the collegium can interview the short listed candidates to prepare the final list.
Psychological tests should be part of the selection process to measure the extent of integrity,
independence, sense of equality and other values essential for adjudicative independence.
Need of a permanent secretariat - As the process is long, time-consuming and technical, so the judges
who are too busy with the cases cannot devote much time for the screening of candidates. There should
be a permanent secretariat to undertake it. A secretariat would bolster efforts towards an openended selection process.
Need to streamline and digitize procedures to expedite process.
A databank of all judges and aspirants to judicial posts can be prepared by the collegium secretariat to
handle the transfers and promotions under the guidance of the Chief Justice and collegium of judges.
The membership of the collegium in each High Court and Supreme Court should be enlarged. Such
enlarged body can be inclusive of women, minorities, Schedule Castes and Schedule Tribes to promote
the constitutional goal of social justice in judicial appointment.
Institutionalized education and training can be provided to advocates to become competent judges.
The proposed institutional mechanism should also convey its views on the conduct of judges.
There should be a mechanism to receive and deal with complaints against judges without compromising
on judicial independence.

The principle of the judicial independence is the one of the core values of the justice system. Administration of
the justice should be inspired by such principles and there is an urgent need for efforts to translate such
principles into reality.

MENACE OF STRAY DOGS


Recently the Supreme Court directed municipal
authorities to stop indiscriminate killing of stray dogs
even while ensuring that the canines do not become a
threat to society.
Issue:

Increasing incidents of children being bitten by


stray dogs, series of such incidents in Kerala.
The increase in stray dog population in public
places such as hospitals, railway stations, bus
stands is causing panic to the public.
Every year more than one lakh incidents of
stray dog bites are reported in the country and
11 people died due to rabies in the first six
months in 2015.

Supreme Courts Observation:

16

Authorities need to strike a balance between


compassion to stray dogs and lives of human
beings.
Humans should not suffer due to dog bite
because of administrative lapses.
Municipal authorities to follow the law under the
public lynching of stray dogs.

Prevention of Cruelty to Animals Act 1960 allows


Animal Welfare Board to take all such steps as the
Board may think fit to ensure that unwanted
animals are eliminated by the local authorities.
Section 9(f) empowers the Board to kill stray
animals either instantaneously or after being
rendered insensible to pain or suffering.
Section 11(3)(b)(c) provides for destruction of
stray dogs in lethal chambers and extermination
or destruction of any animal under the authority of
any law for the time being in force.
Way Forward
The government must provide adequate number
of dog vans with ramps for the capture and
transportation of street dogs.
Authorities must provide ambulance-cum-clinical
van as mobile centre for sterilisation and
immunisation.
Prevention of Cruelty to Animals Act 1960 and stop

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The government needed to frame a policy to protect children from stray dogs.
The bench also sought response on how to implement effective vaccination and sterilization for stray
dogs for controlling their population.

10 YEARS OF RTI ACT-SUCCESSES


(In May issue we had covered hindrances and failures of the act)Key facts

The Right to Information (RTI) Act has completed 10 years of implementation. It has changed the
thinking and the style of functioning of government machinery in the last 10 years.
According to the Information Commissions annual reports, there are at least 50 lakh RTI applications
filed in India every year.
Over the last decade, at least 2 per cent of the Indian population has used the law.

How RTI Act has spawned a new breed of activism and citizenship?

Despite various challenges to implementation of RTI act, people have used it fiercely and owned the law
like no other. People have defended it against every attack and put it to sustained use.
In the unequal battle of trying to hold power to account, it offers sense of hope for the human desire for
dignity, equality, public ethics, and the capacity to enforce these even to some extent.
In a democracy like India people struggle every day to establish some reason in dealings in public life
with assertions of citizenship, entitlements, and ethics. RTI addresses the issue of constitutional rights
and empowers people to demand answers.
RTI enthusiasts are often ordinary people, who not only file applications but also spend countless hours
debating sections, cases, applications, and answers. Thus, encourage a culture of asking questions.
The RTI provides a platform for each view to engage with the other on the basis of a shared logic. It can
help us escape from policy paralysis, and build a more informed, equitable and robust decision-making
process.
RTI helps change the mindsets of those asking the questions as well, because the same standards must
obviously apply.

The RTI act has ushered in a paradigm of transparency in the functioning of government institutions. It has
empowered ordinary people to hold those holding political power accountable.

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INTERNATIONAL RELATIONS
INDIA AND IBSA
Recently the cabinet approved the signing of the Tripartite Agreement among India, Brazil and South Africa
(IBSA), on the IBSA Fund for the Alleviation of Poverty and Hunger.
IBSA Fund:

The IBSA Fund was set up in 2004 as one of the three pillars of cooperation under the IBSA Dialogue Forum.
The other two pillars are consultation and coordination on global political issues and trilateral collaboration
in concrete areas and projects.
The IBSA Fund undertakes development projects in third countries. The first project to be financed by the
IBSA Fund was in support of agriculture and livestock development.
The IBSA countries contribute US$ 1 million each annually to the Fund.

INDIA RE-ELECTED
COUNCIL

AS

MEMBER

OF

INTERNATIONAL

MARITIME

India has been re-elected unopposed to the Council of the International Maritime Organization [IMO] under
Category B at the 29th session of the Assembly of the IMO held in London.
About IMO:

IMO is the United Nations specialized agency with responsibility for the safety and security of shipping
and the prevention of marine pollution by ships.
Headquartered in London, United Kingdom, the IMO has 171 Member States and three Associate
Members.
The IMO Council consists of 40 member countries who are elected by the IMO Assembly.
India has been one of the earliest members of the IMO, having ratified its Convention and had the
privilege of being elected to and serving the Council of the IMO, ever since it started functioning.

INDIA, AUSTRALIA NUCLEAR DEAL TO COME INTO FORCE


India and Australia announced completion of procedures for India Australia Civil Nuclear Agreement. With the
completion of procedures, including administrative arrangements, the India Australia Civil Nuclear Agreement
will enter into force.
Background:

18

India faced Western sanctions after testing nuclear weapons in 1998 but the restrictions eroded after a
deal with the US in 2008 as well as safeguards against diversion of civilian fuel for military purposes.
India and Australia had launched talks on uranium sales in 2012 after Australia lifted a long-time ban on
exporting uranium to Delhi.
In 2014, India and Australia signed a civil nuclear agreement which allows the export of uranium to India.
The agreement allows supply of uranium for peaceful generation of power for civil use in India.
This is a step of India achieving international acceptability for its nuclear programme despite not
ratifying the nuclear non-proliferation treaty (NPT).

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Significance:

Australia can play the role of a long-term reliable supply of uranium to India. Australia has about a third
of the world's recoverable uranium resources and exports nearly 7,000 tonnes of it a year.
The agreement recognizes India's commitment to and use of nuclear energy with a view to achieving
sustainable development and strengthening energy security.
The pact underlines the deepening strategic ties with Australia.

INDIA AND KUWAIT


Recently the Union Cabinet gave its approval for the protocol amending the Agreement between India and
Kuwait for the avoidance of double taxation.

The information received from Kuwait in respect of a resident of India can be shared with law
enforcement agencies with authorization of the competent authority of Kuwait and vice versa.
India and Kuwait signed the Double Taxation Avoidance Agreement (DTAA) for the prevention of fiscal
evasion with respect to taxes on income, through the Protocol.

INDIA AND SINGAPORE ENTER INTO STRATEGIC PARTNERSHIP


India and Singapore signed a joint declaration envisaging a Strategic Partnership,. It aims to catalyze new areas
of cooperation ranging from political, defence and security cooperation to economic, cultural and people-topeople contacts. Various agreements were signed during Prime Ministers recent visit:

Defence cooperation: Establishment of a regular Defence Ministers dialogue, joint exercises between
the armed forces and cooperation between defence industries to identify areas of co-production and codevelopment.
Memoranda of understanding were signed for curtailing drug trafficking and improving cyber security,
enabling Singapore and India to collaborate on technology and research.
Agreements were signed for collaboration in urban planning and wastewater management and for
cooperation in the fields of arts, museums, archives and monuments.
A MoU was signed for cooperation in a number of mutually agreed areas of civil aviation services and
airport management beginning with Jaipur and Ahmedabad airports.
India had sought Singapores expertise in skills development, development of tourism, particularly the
Buddhist circuit and smart cities. In this connection, India is looking at the northeast for setting up a skill
development institute by Singapore.

LATEST IN INDIA AND JAPAN RELATIONS


Japanese Prime Ministers Upcoming Visit:

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An agreement to jointly produce amphibious military aircraft is expected to be signed during the
upcoming visit of Japanese Prime Minister Shinzo Abe.
o This could be the first defence deal between the two countries.
o It reflects Japans desire to have closer ties with India over maritime security to counter Chinas
growing assertiveness at sea.
The civil nuclear agreement between India and Japan is expected to be inked next month when Japanese
Prime Minister Shinzo Abe visits India.
o India and Japan started the negotiations on civil nuclear agreement in 2010. However, the
negotiations were stuck for long as Japan felt uncomfortable with Indias status as a non-

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signatory to the Nuclear Non-Proliferation Treaty (NPT), the Comprehensive Test-Ban Treaty
(CTBT), and the Fissile Material Cutoff Treaty (FMCT).
o Indias Civil Liability for Nuclear Damages Act (CLND) 2010, which holds nuclear plant
manufacturers partly liable in the event of nuclear accidents, was another major concern of
Japan.
o However, India and Japan are expected to reach an agreement with conditions similar to the
deal that India and the US signed for such matters as the management of nuclear technologies
and liability for damages.
o For the energy-starved India, an agreement with Japan is important because Japanese
companies have a virtual monopoly over the supply of reactor vessels, a critical component of
civil nuclear plants.
o Without an agreement between the two countries, these firms cannot supply to French and
American companies that have won orders to install nuclear plants in India.
India and Japan have inked an agreement official development assistance for Chennai and Ahmedabad
metros.
In October this year, Japan had offered to finance Indias first bullet train, estimated to cost $15 billion,
at an interest rate of less than 1%.
Tokyo was also picked to assess the feasibility of building the 505-kilometer corridor linking Mumbai
with Ahmedabad.
Japans decision to finance projects in India is part of its broader push back against Chinas involvement
in infrastructure development in South Asia over the past several years.

Indias relations with Japan have undergone a significant transformation since the establishment of the IndiaJapan Global partnership for the 21st Century in Aug 2000 and the enhancement of its status to a Special
Strategic and Global Partnership during the PMs visit to Japan in Sep 2014.

MILITARY REFORMS IN CHINA


China on announced a major overhaul of its military to make it more
agile and combat-ready, and capable of taking the battle to its
adversaries far beyond its borders and shores. Chinese President Xi
Jinping announced that the Peoples Liberation Army (PLA) will be cut
by 300,000 personnel from its 2.3m-strong military force.

20

The re-structuring will see all armed forces come under a joint
operational military command to build, as President Xi Jinping
put it, "an elite combat force" by 2020.
China wants to transform its rapidly-modernizing PLA from its
existing Soviet Union-style of functioning to a modern, unified
military on the lines of the US forces capable of projecting
power all around.
It will also involve regrouping China's existing seven military
area commands of Beijing, Nanjing, Chengdu, Jinan,
Shenyang, Lanzhou and Guangzhou into four strategic zones.
The reforms involve strengthening the Central Military
Commission (CMC) command structure over the PLA.
China also officially admitted that it is in talks with Djibouti for
an overseas logistics facility for its ongoing anti-piracy patrols
in the Gulf of Aden, which many fear may convert into the
country's first military base in the Indian Ocean Region (IOR)
in the years ahead.

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Reasons behind the reforms:

China is involved in multiple territorial disputes with other Asian countries. This means that it is at least
theoretically possible that Chinas military might one day face two enemies simultaneously, possibly in
the East China Sea and the South China Sea. But Chinas Navy is not yet mature enough to fight two wars
simultaneously.
There is still the lingering problem of corruption. Before these reforms were announced, the PLAs
Discipline Commission was relatively weak, unable to bring in its own members for justice. Now the
Commission directly reports to Xi, which should, in theory, greatly enhance the Partys ability to fight
corruption nationwide.

Implications for India:

With merging of military commands on


the eastern and western part of India,
the Chinese forces will now have
better command and control all along
the LAC. It indicates that China will
continue to apply sustained pressure
and maintain an 'offensive' posture
towards India.
India needs to carefully watch the
ongoing military reforms in China. They
are certain to lead to increase in
capabilities of the PLA, especially the
Navy which has now been assigned
with an expanded role i.e. carrying
out the task of open seas protection.
It should recognize that tensions in the
contentious South China Sea and East
China Sea are certain to rise, which
may have negative implications of its Act East policy.
Chinas move to have a base in Djibouti threatens Indias role as security provider in Indian Ocean
Region. Andaman and Nicobar Command (ANC), which could have counter-balanced China's naval forays
into the IOR, has largely failed to live up to its initial promise of a robust theatre command due to turf
wars among the three Services.
India has really not gone in for major military reforms till now to inject the much-required synergy
among the Army, Navy and IAF, reduce their poor teeth-to-tail combat ratio and better utilise scarce
resources to systematically build military capabilities in a cost-effective holistic manner.

INDIA, CHINA TO EXCHANGE INFORMATION ON TERROR ACTIVITIES

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In a major boost to bilateral security cooperation, China and India agreed to actively exchange
intelligence on terror groups and their activities through a dedicated communication channel.
Both India and China are facing terrorism problems, India in J&K and China from Uyghur terrorist in
Xinxiang.
It will help in cracking down on various militant groups in India's northeastern states.
The dialogue with the Chinese authorities also covered discussions on Afghanistan and Pakistan-two
countries with strong connections with global terrorism.

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APEC SUMMIT, 2015


The 2015 Economic Leaders Meeting of the Asia-Pacific Economic Cooperation (APEC) summit took place
between November 18 and 19 in Manila, the Philippines The summit concluded with the Leaders
Declaration from the 21 countries represented at the summit outlining six key commitments:
Issue of Indias membership:
Background:

India has long sought membership in the APEC forum, for strategic, diplomatic, and economic reasons.
India doesnt sit on the Pacific Ocean has led the grouping to see New Delhis participation as antithetical
to the geographic logic of the organization.
Beyond geography, the question of Indias membership hadnt come up seriously for some time due to a
moratorium on APEC membership that was established in 1997 for a ten year period and extended again
in 2007 for an additional three years.
Since 2010, with no moratorium currently in place, some APEC members have expressed concerns that
Indias inclusion could offset the balance of the grouping away from its Pacific Rim focused given
Indias clout.
Beyond the balance issue, opponents of Indias accession to the group cite New Delhis tendency to drive
a hard bargain in trade negotiations (at the Doha round of the WTO, for instance).

Developments at 2015 summit:

A policy task force led by former Australian Prime Minister Kevin Rudd and the Asia Society Policy
Institute (ASPI) recommended that APEC should consider Indias request for membership.
However, the issue of Indias membership was not kept on the agenda of 2015 summit.

Why APEC needs India:

India is the region's third largest and now fastest growing major economy. APEC economies, which
account for 60 percent of global GDP, are experiencing sluggish growth and must look for opportunities
to bring new markets
India is also projected to be the world's third largest economy by 2030 and will need well over $1 trillion
of investment in infrastructure over the next decade.
With Trans-Pacific Partnership (TPP) trade agreement becoming into a reality APEC needs to reinvent
itself.
On the supply side, India's labor force, which will be the largest in the world by 2030, will help offset the
impact of aging populations and shrinking work forces in APEC economies.
India's trade with APEC economies, which has grown rapidly over the last fifteen years will grow further
once it joins APEC.
A forward-looking commitment to India's economic future is precisely the kind of bold initiative needed
to boost stubbornly sluggish regional and global growth.

Advantages for India:

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Indias inclusion in APEC will give a boost to its Act East Policy and will further integrate the Indian
economy into the Asia-Pacific economic milieu.
Apart from facilitating greater regional economic integration, APEC promotes the development of small
and medium enterprises in the member countries by removing hurdles to starting a business, getting
credit, dealing with permits, enforcing contracts and trading across borders.
Inclusion of India in APEC will act as catalyst for further economic reforms in the country.

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INDIA SAARC RELATIONS


Framework on Currency Swap Arrangement for SAARC Member Countries:

The Union Cabinet chaired by the Prime Minister has given approval for the proposal to provide a twoyear extension with amendments to the 'Framework on Currency Swap Arrangement for SAARC Member
Countries' up to November 14, 2017.

Background:

The Framework was formulated with the intention to provide a line of funding for short term foreign
exchange requirements or to meet balance of payments crises till longer term arrangements are made
or the issue is resolved in the short-term itself.
Under the facility, RBI offers swaps of varying sizes to each SAARC Member countries (Afghanistan,
Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka) depending on their two months import
requirement and not exceeding US$ 2 billion in total, in USD, Euro or INR.
Interest would be paid by the Receiving Party on the USD/Euro/INR amount although no interest will be
received on the domestic currency given in exchange thereof to the Providing Party.
The arrangement will further financial stability in the region, besides improving the standing and
credibility of India among the SAARC countries.

INDIA MALAYSIA RELATIONS


During Prime Ministers recent visit to Malaysia, India and Malaysia signed one Agreement on Cultural Exchange
Programme for 2015-2020 and two Memoranda of Understanding (MoU) on Cooperation in Project Delivery and
Monitoring, and Cooperation on Cyber Security.
Background:

The Parliament of India has constituted an India-Malaysia Parliamentary Friendship Group since October
2011.
Several Agreements and MoUs have been signed between the two countries, including in the field of
Commerce, Avoidance of Double Taxation, Customs matters, Higher Education, Extradition, Tourism,
Traditional medicine, IT and services, Cultural Exchange, Governance, to name a few.
India-Malaysia defence relations have steadily grown over the years. Both countries regularly hold joint
army exercise called Harimau Shakti.
Economic and commercial relations are the mainstay of the bilateral relationship. Malaysia is the third
largest trading partner for India within ASEAN, and India is the largest trading partner for Malaysia from
among the countries of the South, excluding China.
India is the sixth largest source country for inbound tourism for Malaysia, on the other hand, Malaysia is
the tenth largest source country for foreign tourists into India.
There are over 130,000 Indian expats legally employed in Malaysia in professional as well as skilled and
semi-skilled category.
Malaysia has one of the largest communities of Persons of Indian Origin in the world, numbering close of
2 million (about 7 to 8% of Malaysias population).
Malaysia has been sending the largest contingent to the Pravasi Bharatiya Divas.

PRIME MINISTER MODI VISIT TO UK


On 12th November 2015, prime minister Modi arrived in UK where different deals were signed between India
and Britain. British and Indian companies agreed on 9 billion pounds ($13 billion) of deals as Narendra Modi
became the first Indian prime minister to visit the UK in almost a decade.
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The two leaders reaffirmed their commitment to working together to build such an enhanced and
transformative partnership for the betterment of their two countries and the world.
9.2 Billion of commercial deals between the UK and India announced during the visit and listed in the
annex.
The UK has accounted for 8.56% of total foreign direct investment in India during the last 15 years.
Indian companies employ 110,000 people in the UK.
Both countries announced three UK-India city partnerships with Indore, Pune and Amravati to support
Indias ambitious urban development goals through technical assistance, expertise sharing and business
engagement.
Both countries have launched a new Thames/Ganga partnership for healthy river systems. This
partnership will consist of a collaborative programme of research and innovation to enable the
sustainable management of water resources in the Ganga basin and a policy expert exchange in 2016
supported by the UK Water Partnership.
Announcement of setting up of joint India-UK Vaccine Development collaboration between the
Department of Biotechnology and Research Councils, UK.

GLOBAL SOLAR ALLIANCE

India continues in struggle to meet power generation goals, and conventional sources, such as coal,
cannot keep up with countrys ever increasing demand. As a result, interest has shifted to renewable
sources of energy.
So in this direction Indias prime minister has launched an international solar alliance of over 120
countries with the French president, at the Paris COP21 climate summit
Ahead of this crucial climate talks, Prime Minister invited China to join the International Solar Alliance.
This new body, which has invited all countries of the world to join, is to function from the National
Institute of Solar Energy in India, Gurgaon. The Centre will provide land and $30 million to form a
secretariat for the Alliance, and also support it for five years.

G-20 SUMMIT 2015


About G-20 summit:

G20 is a forum of the Heads of Governments of the 19 major economies and the EU for global
cooperation on international economic and financial issues.
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico,
Russia, Saudi Arabia, South Korea, South Africa and Turkey, UK, USA and the EU, are the members of
G20.
G-20 summit 2015: G20 leaders met in Antalya, Turkey, on 15-16 November 2015.

Indias role in G-20:

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India has increasingly integrated with the rest of the world and plays an important role in maintaining
global economic balance.
India has voiced concerns regarding rebalancing global governance by reforming global financial
institutions, checking global macroeconomic imbalances, checking protectionist measures, widening of
G20 agenda to include development issues etc.
Various officials take part in G20 Working Group meetings and voice India's concerns on those issues.

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Indias concern:

Indias main concerns are over terrorism, climate change, economic growth among others.
Delay in implementation of quota reform of the International Monetary Fund (IMF), aimed at giving
more voice and voting power to emerging economies as well as providing a pitch for cutting transaction
cost for transferring money from abroad.
The G20 leaders on 16th November backed India on the issue of quota reforms of the IMF and called for
early reforms, and expressed disappointment with the delay.

PARIS ATTACK
On 13th November 2015, a series of coordinated terrorist
attacks occurred in Paris. Around 130 people killed in this
attack. Islamic state claimed the responsibility of this attack.

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Since Paris has been a soft target for extremists. When


jihadist gunmen killed journalists at the offices of the
publication, Charlie Hebdo, in January 2015, it was the
press and freedom of expression that were the targets.
The motivations of the gunmen, however distorted,
appeared to be clear.
The terror attacks this month, believed to be the worst
ever in Europe, were however different.
The do-and-die conspiracy was made outside France, it
involved intellectual planning and sophisticated
resources (like the suicide jackets that the terrorists
used), and it engaged assassins of nationalities other
than French as well.
The targets-the Stade de France where a football
match was on, some popular bars in central Paris, and
the famous Bataclan concert hall- were all venues of
culture and recreation, preoccupations that lie at the
heart of French life.
Comparing Paris attack with 26/11 attack: The terrorist
attacks in Paris and prior to that in Mumbai (26/11)
demonstrate that terrorists are not concentrating on
Critical Infrastructure as a target of choice. Instead,
they are targeting places where they can cause
maximum damage to human life as well as gain wide
publicity.
(For detailed comparison, see security section of this
issue)
According to security analysts, the Paris attack didnt
require much resource and they fear more such attacks
in future.
Due to Paris attack, a rare solidarity was shown among the permanent members of UN as they
unanimously ratified to fight against ISIS.

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UN RESOLUTION AGAINST ISIS


The UN Security Council authorized countries around the world to take all necessary measures to fight the
Islamic State in a resolution that won unanimous backing.

This does not constitute an authorization for military action.


Introduced by France, the Security Council resolution was an attempt to show international unity in the
wake of the Paris attacks.

Should India join the fight against ISIS?


Arguments in favour:

The Indian Air Force (IAF) and the Indian Army have been fighting extremists in Kashmir and eastern
India for decades. India also stamped out separatism in Punjab. Such immense counter terror experience
could be very valuable in the war against ISIS.
Indias armed forces will gain invaluable experience of fighting on foreign soil.
India has rarely intervened outside the scope of the United Nations. The country is known as the
reluctant superpower because it rarely ventures into global hot spots. Its entry into war against ISIS will
propel its image as a global force.

Arguments against:

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A foreign mission in Iraq and Syria will cost the Indian exchequer massively. At a time when Indias
financial situation is not positive, engaging in a war against ISIS will be a financial debacle.
Sending troops to Iraq and Syria might further cause resentment among the minorities and it can also
increase the possibility of Jihadi attacks in India.

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ECONOMY
THE SEVENTH PAY COMMISSION

The Seventh Pay Commission submitted its report to Finance Minister. The commission is headed by
Justice Ashok Kumar Mathur.
The recommendations of the commission, when accepted, would provide benefit to 47 lakh serving govt
employees, 52 lakh pensioners, including defence personnel.

What is a Pay Commission?

Pay Commission is set up intermittently by government of India, and gives its recommendations
regarding changes in salary structure of all civil and military divisions of the Government of India.
The First Pay Commission was established in 1956, and since then, every decade has seen the birth of a
commission.

Highlights of 7th Pay Commission:

23.55 per cent increase in pay and allowances recommended


Recommendations to be implemented from January 1, 2016
Minimum pay fixed at Rs 18,000 per month; maximum pay at Rs 2.25 lakh
The rate of annual increment retained at 3 per cent
24 per cent hike in pensions
One Rank One Pension proposed for civilian government employees on line of OROP for armed forces
Ceiling of gratuity enhanced from Rs 10 lakh to Rs 20 lakh; ceiling on gratuity to be raised by 25 per
cent whenever DA rises by 50 per cent
Cabinet Secretary to get Rs 2.5 lakh as against Rs 90,000 per month pay band currently
Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be
admissible to the defence forces personnel only
Short service commissioned officers will be allowed to exit the armed forces at any point in time
between 7 to 10 years of service
Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing
allowances or in newly proposed allowances.

Financial Implications:

Financial impact of implementing recommendations of Pay Commission on salaries will be Rs 1.02 lakh
crore Rs 73,650 crore to be borne by Central Budget and Rs 28,450 crore by Railway Budget.
Total impact of Commissions recommendation to raise the ratio of expenditure on salary and wages to
GDP by 0.65 percentage points to 0.7 per cent
Apart from this, One Rank One Pension payout is also to be added to this.

Opportunities:

Tax revenue will be higher.


Income tax alone is expected to bring back a fifth of the payouts back.
Indirect tax collection will also increase due to consumers spending more on consumer durables, homes,
financial products, everyday necessities and travel.
Increased corporate profits would also result in increased corporate tax collections.
It would help stimulate the economy, especially manufacturing and service industry.

Other Implications:

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But in spite of above opportunities, there remains a threat of inflationary pressure due to further pay
hikes revision in states and at local levels causing much money to be following in the economy. However,
the impact of 7th Pay Commission is not seen as inflationary as 6th Pay Commission implementation.
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In any case, this may force the pace of rate cut to be slowed down by the RBI to fight inflation.
Credit rating agency Fitch said that the government may miss the fiscal consolidation roadmap and
further delay the targeted rate of 3% of GDP and that it may adversely affect countrys credit rating.

Way forward:
Nonetheless, fortuitous combination of circumstance of low inflation, low commodity prices, excess capacity in
industry, moderate inflation, etc., is just the right economic environment for the Seventh Pay Commissions
recommendations.

YUAN IN SDR

IMF decided to include Chinese renminbi (RMB) in the basket of currencies that make up Special
Drawing Right (SDR) with effect from October 1, 2016.
To be included as an SDR a currency must be "freely usable," "widely used," and "widely traded.
The existing currencies in the basket are - the U.S. dollar, the euro, the Japanese yen and the British
pound.

What are SDRs?

Artificial currency (but is neither a currency, nor a claim on the IMF) created as international reserve
asset by the IMF in 1969.
Created in response to concerns about the limitations of gold and dollars as the sole means of settling
international accounts.
Operates as a supplement to existing reserves of member countries and augments international
liquidity.
SDRs can be exchanged for freely usable currencies.
As of November 2015, 204 billion SDRs had been created and allocated to members (equivalent to about
$285 billion).

What does this inclusion mean?


This inclusion has very little effect in the short term but some of its important aspects are:

The inclusion of the RMB will enhance the attractiveness of the SDR by diversifying the basket and
making it more representative of the worlds major currencies.
This is an important milestone in the process of Chinas global financial integration.
Recognizes and reinforces Chinas continuing reform progress.
Recognizes a significant increase in the internationalization of the Chinese RMB in recent years,
underpinning Chinas transition to an increasingly open and market-based economy.
Inclusion will also support the already increasing use and trading of the RMB internationally.

MEGA FOOD PARK


Why in news?
Recently foundation stone of the first Mega Food Park in Telangana was laid.
Details of the Park:

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It will be set up with the project cost of Rs. 109 crores in an area of 78 acres.
It will have strong backward linkage and three Primary Processing Centres (PPCs) will be set up at
Medchal, Medak and Nalgonda.
It will have facilities of Multi Commodity Cold Storage, Raw Material Warehouse, Finished Good
Warehouse, Grain Silos, Deep Freeze, Turmeric Processing Facility and modern food testing lab.

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It is expected to provide direct and indirect employment to about 6000 people and benefit about 30,000
farmers in its catchment area.

What is a Mega Food Park?


A mega food park is a hub and spoke
architecture comprising Collection
Centres (CCs) and Primary Processing
Centres (PPCs) as spokes linked to a
Central Processing Centre as hub.
Collection Centres (CCs): They work as
points of aggregation of the produce
from individual farmers, farmers
groups and Self Help Groups.
Primary Processing Centres (PPCs):
They work has primary handling
centres which use the raw materials to be processed further in CPC. A PPC serves a number of CCs in proximity.
Some PPCs have inhouse facilities such as pulping, juicing etc. They have facilities such as refrigerated vans,
trucks etc. to transport material to CPC in shortest possible time.
Significance of Mega Food Park:

Major boost to the Food Processing Sector by facilitating creation of modern infrastructure for food
processing with strong forward and backward linkages through a cluster based approach.
Mechanism to link agricultural production to the market by bringing together farmers, processors and
retailers.
It ensures maximizing value addition, minimizing wastages, increasing farmers income and creating
employment opportunities particularly in rural sector.

Issues with the Mega Food Park Scheme:

Land acquisition - It is very difficult to get 50 acre of land, particularly in small and hilly states.
Since most agri-business in our country happens through cooperatives, their integration into food parks
is critical.
Though the scheme gives a grant to the SPV, the SPV finds itself unable to attract the PPCs and CCs.
Here, the National Mission on Food Processing could play a major role by providing the Rs. 50 Lakh grant
to units within the MFPs. But the scheme is now delinked from central support and states will decide if
they want to continue. State governments can, in a case-by-case basis, provide attractions to these units
as well.
The MFP scheme provides maximum grant of Rs.50 crores for setting up a MFP in minimum 50 acres of
contiguous land with 50 percent contribution to the total project cost from the SPV. This one size fits
all approach has not been able to attract the investors having more or less requirements.

Prelims 2011
Q. With what purpose is the Government of India promoting the concept of Mega Food Parks?
1. To provide good infrastructure facilities for the food processing industry.
2. To increase the processing of perishable items and reduce wastage.
3. To provide emerging and eco-friendly food processing technologies to entrepreneurs.
Select the correct answer using the codes given below:
(a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3
Mains 2007 GS PAPER II
Q. Explain Mega Food Park Scheme of Government, of India.

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GLOBAL FINANCIAL SECURITY INDEX


The Global Financial Secrecy Index ranks jurisdictions according to their secrecy and
the scale of their offshore financial activities. A politically neutral ranking, it is a tool
for understanding global financial secrecy, tax havens or secrecy jurisdictions, and
illicit financial flows or capital flight. It is brought out by Tax Justice Network.
What is the significance of this index?
FSI directly confronts offshore secrecy and the global infrastructure that creates it
by identifying as accurately as possible the jurisdictions that make it their business
to provide offshore secrecy.
Highlights of 2015 Financial Secrecy Index (FSI):

It focuses on 93 jurisdictions, including several that


are not traditionally considered to be tax havens,
such as China, France, Germany and Japan.
It brings out to notice that worlds most important
providers of financial secrecy harbouring assets are
mostly not small islands as many suppose, but some
of the worlds biggest and wealthiest countries.
Rich OECD member countries and their satellites are
the main recipients of or conduits for these illicit
flows.
Singapore's ranking moved to fourth from the fifth
place it held in the organizations previous index in
2013, when Hong Kong placed third.

ICEGATE
Why in News?
Indias intelligence agencies and the Reserve Bank
of India (RBI) are considering a proposal to
integrate Indian Customs Electronic Commerce
and Electronic Data Interchange Gateway
(ICEGATE) and the banking system to prevent
illegal forex remittances and money laundering.
ICEGATE is the customs electronic repository of
bills of entry, shipping bills and other importexport documents.
Background:
The Central Bureau of Investigation (CBI) and the
Enforcement Directorate booked a series of cases
involving illegal forex remittance by banks, the
latest being the Rs 6,000 crore outward foreign
remittance scam involving Bank of Baroda and a
clutch of other banks.
Objective of the move:
The integration of ICEGATE and the banking
system will help banks check the genuineness of
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What is Tax Justice Network?


It is an independent body dedicated to highlevel research, analysis and advocacy in the
area of international tax and the
international aspects of financial regulation.
It maps, analyses and explains the role of tax
and the harmful impacts of tax evasion, tax
avoidance, tax competition and tax havens.
What are secrecy Jurisdiction/tax havens?
A state, country, or territory where certain
taxes are levied at a very low rate or not at all
and financial secrecy is used to attract illicit
and illegitimate financial flows.

Bank of Baroda Scam


It is alleged that Rs 6,172 crore black money was
remitted from Bank of Baroda to Hong Kong camouflaged
as payments for non-existent imports like cashew, pulses
and rice. The amount was allegedly deposited in 59
accounts in cash as advance for imports that never
existed. The scam involved two types of transactions Transaction one Duty Drawback
A company exports goods at a higher price to their own
fake companies in order to take benefit of duty drawback
scheme of the government.
What is Duty drawback scheme?
It is a refund given by the government to recoup the
amount paid by way of custom and excise duties on the
raw materials used and service tax on input services used
for the manufacture of exported goods. It is used to
promote exports.
Transaction two advance remittances for imports
These funds are part payment that an importer makes to
confirm his imports. Generally, after the initial advance is
paid, an exporter sends the remaining amount either on
receipt of the goods or after a lag, depending on the
negotiation. Banks on their part have to check if the
remaining amount is sent and the goods have landed by
confirming it with import documentations.

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bills produced by importers and exporters before remitting money. It is a positive development and will aid in
addressing the risks involving export/ import transactions.

REGULATORY IMPACT ASSESSMENT


Why in news?
New efforts to reform regulatory architecture to attract investments from abroad for the success of MAKE IN
INDIA
Background:
In August 2012, the Ministry of Corporate Affairs set up the Committee for Reforming the Regulatory
Environment for Doing Business in India. The Committee Observations Regarding RIA:

Mindless explosion of regulations impact seriously on management time and cost and has created a
negative perception of the regulatory environment.
It recommended a formal system of regulatory impact assessment (RIA) in order to determine whether
the effort involved and costs required to be incurred are commensurate with the results sought to be
achieved.
It cautioned against regulatory overreach.
A regulatory impact assessment of every proposed regulation should precede the public consultation
process.

What is Regulatory Impact Assessment?


Regulatory Impact Assessment (RIA) examines and measures the likely benefits, costs and effects of new or
changed regulations. It provides decision-makers with valuable empirical data and a comprehensive framework
in which they can assess their options and the consequences, their decisions may have.
The benefits of RIA:

Improving the quality and efficiency of government interventions.


Enhancing competitiveness.
Increasing transparency and accountability.
Reducing opportunities for corruption.
A tool for policy monitoring and evaluation.
In countries similar to India the annual cost of government regulation accounts for 10-20 per cent of
GDP. This means even small improvements in regulatory efficiency can have large payoffs in national
income.
The returns on investment for RIA in reducing regulatory costs are increasingly well documented. The US
Office of Management and Budget reports that each dollar spent on complying with regulations
produces more benefits.

RIA: A consumers perspective


The compliance cost ultimately passes on to consumers whose interest is sought to be protected through these
regulations.

JUTE PRICE RISE


Background:
Recently prices of certain grades of raw jute have gone up over 50 percent which has raised serious concerns
among jute mill owners.

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Reasons for the price rise:

Crop damage in Nadia and Murshidabad districts of Bengal on account of flood.


Bangladeshs ban on export of raw jute.
Hoarding by traders which has created artificial supply shortage.

Governments Steps:
Stock limits, De-hoarding Operation

Appropriate measures for notifying stock limits for raw jute for balers, traders and millers.
To undertake de-hoarding measures with the help of State Government.
To make available jute produced during off-season.

Lifting of export ban by Bangladesh - Department of Commerce and Ministry of External Affairs have been
requested to take up the matter with their counterparts in Bangladesh for lifting the ban on export of raw jute
Promoting Jute Cultivation - Long-term measures shall be taken by the State Government and Department of
Agriculture

KELKAR PANEL TO REVITALIZE PPP


Why in news: Recently report of the Kelkar Committee on Revisiting & Revitalizing the PPP model of
Infrastructure Development was submitted. In Budget Speech 2015-16, the Union Finance Minister had
announced that the PPP mode of infrastructure development has to be revisited, and revitalized.
The Terms of Reference of the Committee were as follows:

Review of the experience of PPP Policy.


Analysis of risks involved in PPP projects and existing framework of sharing of such risks between the
project developer and the Government.
Suggest optimal risk sharing mechanism.
Propose design modifications to the contractual arrangements of the PPP.
Measure to improve capacity building in Government for effective implementation of the PPP projects.

Why PPP needs a review?


India has emerged as the largest PPP market in the world with over 900 projects in various stages of
development. But there has been significant downward trend in the infrastructure investment during the first
three years of the Twelfth Plan which has been due to sharp decline in the private sector investment. The
leading reason for slowdown in the investment in the last few years has been stalling of projects particularly
the rate is much higher in the private sector projects.
Major weaknesses in the present PPP contract framework are:
1.
2.
3.
4.
5.
6.
7.
8.
9.

The rigidities in contractual arrangements.


Existing contracts focus more on fiscal benefits than on efficient service provision.
It neglects principles of allocating risk to the entity best able to manage it.
There are no ex-ante structures for renegotiation and Ineffective dispute redressal mechanism.
Contracts are over-dependent on market wisdom.
Enforcement and monitoring of terms of Concession Agreement has been weak.
A more robust regulatory environment, with an independent regulator, is essential.
The PPP program lacks a comprehensive database regarding the projects/studies to be awarded under PPP.
The project development activities such as detailed feasibility study, land acquisition, environmental/forest
clearances, etc., are not given adequate importance.
10. The limited institutional capacity to undertake large and complex projects at various Central ministries and
especially at state and local bodies level hinder the translation of targets into projects.
11. In several cases aggressive bidding has been the main reason for failure.

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Issues related to contract financing:


1. A large number of projects are struck or delayed turning many bank loans into NPAs and constraining
further bank lending to infrastructure projects.
2. Stranded and stressed project have led to shrinking of equity in PPP projects.
3. Slowdown in fresh equity inflows have led to over-leveraged balance sheets of developers, constraining
several domestic players from making further investments.
4. The current practice of financing large infrastructure projects based on revenue streams spread over 20
to 30 years, but with project debt having tenure of 10 to 15 years, is unsustainable.
5. In the absence of long-term financing instruments, it is becoming increasingly difficult to finance the
growing requirements of infrastructure.
What is 3P India?

As announced in the Union Budget 2014-15, the Government is in the process of setting up 3P India with
a corpus of Rs 500 crore to provide support to mainstreaming PPPs and to enable focussed attention on
accelerating the delivery of efficient PPPs.
It is suggested that the task for restructuring of the PPP contracts may be entrusted to this body that
may house specialized skills in the area.
The institution may have experts from a wide background including industry, financial institutions,
lenders, etc. with the requisite skill sets.
It may also evolve PPP models to enable attracting private investments in sectors like Railways, Airports
and also social sectors.
This entity could also assist project promoters (public agencies) in identification, structuring and hand
holding for a designated fee.

Mains 2013
Q. Adaptation of PPP model for infrastructure development of the country has not been free from criticism.
Critically discuss the pros and cons of the model.

TECHNOLOGY ACQUISITION AND DEVELOPMENT FUND UNDER NMP


Why in News?
Recently, Technology Acquisition and Development Fund (TADF) was launched under National Manufacturing
Policy being implemented by Department of Industrial Policy & Promotion (DIPP).
What is TADF?
It is a new scheme to facilitate acquisition of Clean, Green & Energy Efficient Technologies available in India or
globally, by Micro, Small & Medium Enterprises (MSMEs).
Under the Scheme which would be implemented through Global Innovation and Technology Alliance (GITA), a
joint venture company, support to MSME units is envisaged by the following:
I. Direct Support for Technology Acquisition
II. In-direct Support for Technology Acquisition through Patent Pool
III. Technology / Equipment Manufacturing Subsidies
IV. The scheme will give boost to green manufacturing by facilitating resource conservation activities in
industries located in NIMZ.
Significance of TADF:

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Technology development and up gradation is critical to attaining the objectives of the National
Manufacturing Policy.
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Going up the technology ladder is the quickest way to become globally competitive and ensure sustained
growth of the manufacturing sector.
It will help in development of indigenous technological expertise
It will also help to make crucial technology acquisitions in the global market.
Through facilitating green technology it will give an impetus for sustainable development.
It will catalyse the manufacturing growth in MSME sector to contribute to the national focus of Make in
India.

Mains 2012
List the main objectives of the National Manufacturing Policy (NMP), 2011
Prelims 2012
What is/are the recent policy initiative(s) of Government of India to promote the growth manufacturing
sector?
1. Setting up of National Investment and Manufacturing Zones.
2. Providing the benefit of single window clearance.
3. Establishing the Technology Acquisition and Development Fund.
Select the correct answer using codes given below:
(a) 1 only

(b) 2 and 3 only (c) 1 and 3 only

(d) 1, 2 and 3

ALSO IN NEWS
RISE IN PUBLIC SECTOR BANKS'S NPA
Why in news?
Banks have reported a 26.8 per cent rise in Non-Performing Assets (NPAs) over the 12 month period ending
September 2015.
As per CARE, overall NPAs now amounts to Rs 3,35,685 crore with rise in last 12 months being Rs. 71,000 crore
rupees.
Major sectors causing NPAs include - infrastructure, metals, textiles, chemicals, engineering and mining that
together constitute about 36 % of overall bad assets.

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Way Forward
A proper credit risk management should be ensured. Proper structuring of various credit facilities based on
proper analysis of cash flows of the borrowers should be done which would result into realistic payment
schedules. A one size fits all approach may not work for all the borrowers.

MANUFACTURING SECTOR: HOW TO ATTRACT BEST TALENT


Why in news?
To deal with lack of talented professionals in manufacturing sector, the Government reportedly tried to get the
first slot of placement season in a premium institute reserved for engineering firms rather than consultancy and
financial sector firms.
However, the above approach is misguided, because

Professionals choose industry on the market forces of pricing. Services sector pays more salary, hence
top talent leave manufacturing sector.
Manufacturing firms in India are not involved in much R&D related work unlike China and hence do not
require many professionals to solve new problems.
It also results in routine nature of work and lower salaries which are not competitive.
India lags in advanced manufacturing like microelectronics, materials or aircraft manufacture.

Way Forward:
Only manufacturing sector can provide jobs to ever-increasing population of India and as such to attract and
retain the best talent and to grow the sector, following steps need to be taken

The sector needs to move beyond maintenance engineers towards R & D.


Government must develop a framework to support firms doing indigenous R&D. Chinas Huawei and ZTE
who developed standards and equipment for 5G mobile technologies received substantial state support
India needs to spend more money on R & D as currently a paltry 0.95 % of its GDP as compared to 2.8 %
by US and 1.98 % by China.

IMF REFORMS
Why in news?
The G20 communique backed India on the issue of quota reforms of the International Monetary Fund and called
for early reforms, and expressed disappointment with the delay in these reforms.
Why IMF Quota and Governance Reforms:

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Borrowing rights and voting in IMF is based upon the quota a country has.
Currently, G7 countries hold more than 40 per cent of quota with US owning approximately 18 per cent
quota.
This scheme does not reflect the present world economic order and so emerging countries, BRICS and
G20 often demand for reforms in the present system.
The reforms required 70 per cent votes but due to tilting of voting system in favour of USA and other
developed nations, reforms process is very slow.
As of November 2015, 166 members having 80.40 per cent of total quota (above 70 per cent required)
had consented for quota reforms.
In 2010, quota of developing countries were increased but at the cost of quota of poor countries.
On the front of governance reforms, currently 5 out of 24 directors are permanently decided by five
largest quota holders.
For the governance reforms to go through, it requires 85 per cent votes, so making it even more
challenging.
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Benefits for India:

Indias quota will rise from 2.445 per cent to 2.75 per cent.
India will become 8th largest quota holder from current 11th largest.
More voting rights and borrowing capacity for India.
India will have more say in decision making.

SPECIAL AGENCY FOR CORPORATE FRAUD


Background:
First suggested in the aftermath of the Satyam fraud, in which the auditor was also implicated, the Companies
Act 2013 requires the constitution of National Financial Reporting Authority (NFRA), which has been bestowed
with significant powers not only in issuing the authoritative pronouncements, but also in regulating the audit
profession.
At present, the Institute of Chartered Accountants of India (ICAI) has authority to investigate and take
disciplinary action in cases in which an auditor is involved. Any fraud below the threshold set by the government
could still be investigated by the professional association.
Details of the proposed body:

It will be formed under the Companies Act 2013 provisions.


The agency will be mandated to investigate auditing and accounting frauds certain classes of listed
companies or those of Rs 500 crore and more, either suo motu or on referral by the Centre.
It will have forensic auditors on its panel.
It will have an overarching role to regulate chartered accountants .

What is Forensic Audit?


A forensic audit is the process of reviewing a person's or companies financial statements to determine if they are
accurate and lawful. It is used to detect corporate accounting frauds.
Mains 2014:
Q. With a consideration towards the strategy of inclusive growth, the new companies bill, 2013 has indirectly
made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also
discuss other provisions in the bill and their implications.

RBI RELAXES ECB NORMS

The limit for Indian companies for raising funds - with minimum average maturity of 3 years - increased
to $50 million from $20 million.
Companies can take ECB route for raising 10-year funds which is capped at five years now.
The list of overseas lenders expanded to include long term lenders like sovereign wealth funds, pension
funds and insurance companies.

Why important?

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This step will help in raising loans overseas for Indian companies.
This is also a step towards fuller capital account convertibility.

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SOCIAL ISSUES
TRANSGENDER POLICY
Why in news?
Kerala has become the first state to have a policy for transgenders.
Keralas Transgender Policy

The policy envisages to end the societal stigma towards the


sexual minority group and ensure them non-discriminatory
treatment.
The policy aims to enforce the constitutional rights of
transgenders (TGs), taking into account the Supreme Court
judgement (2014) and the findings of the recent Kerala State
TG Survey.
The policy covers all the categories of TGs, including male to
female TGs and intersex people.
It emphasises the right of the minority group to self-identify
themselves as man, woman or TG as stated in the Supreme
Court judgement.
It also ensures them equal access to social and economic
opportunities, resources and services, right to equal
treatment under the law, right to live life without violence
and equitable right in all decision making bodies.
It also recommends the setting up of a TG Justice Board with
state Minister for Social Justice as its chairperson.

GENDER INEQUALITY TERRITORIAL ARMY


Recently the Delhi High Court issued notices to the Defence
Ministry and the Territorial Army on a petition challenging a
provision in the law governing the Territorial Army that prohibits
recruitment of gainfully employed women.
Concerns:

Not allowing women to join amounts to institutional


discrimination, which violates fundamental freedoms
and human rights.
Discrimination on grounds of gender went against the
spirit of the Constitution.
At present, TA recruits only males (gainfully employed).
The country ranks 127th on gender inequality index and
114th on gender gap in the world.

Way forward:
Gender equality is of vital importance for growth of the country.
Achieving gender equality in the country should be seen as a longtime war and not a one-time battle. Time has come when India
should begin a meaningful conversation on gender equality and do
away with such institutional discrimination against women.

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Territorial Army
The Territorial Army is the countrys
second line of defence, after the
regular army. It comprises volunteers
who receive military training for
mobilisation in emergency situations.
The Territorial Army is not an
occupation
or
a
source
of
employment. Gainful employment or
self-employment in a civil profession
was a pre-requisite for joining the
Territorial Army.
It also helps in maintenance of
essential services in situations where
life is affected or the security of the
country is threatened.
Under the provisions of the Territorial
Army Act women are not eligible to
join the organization.

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OBESITY
India is the third most obese country in the world according to an independent research body. Obesity has
emerged as the new killer disease making the young vulnerable to long-term chronic diseases like cardiovascular
issues, diabetes and blood pressure fluctuations.
Concerns:

Obesity is plaguing children, who often become overweight due to factors like lack of physical activity,
unhealthy eating habits, increasing reliance on convenience foods and hormonal issues.
Globally, in 2013, the number of overweight children under the age of five, is estimated to be over 42
million.
Childhood obesity puts them at the risk of developing non-communicable diseases like diabetes and
cardiovascular diseases at a younger age.
With 13 per cent Indians found to be suffering from obesity, the country faces a major risk of a heart
disease epidemic.
Obesity in young people is leading to premature heart attacks - People in their late 20s and early 30s are
being diagnosed with heart diseases.

SECOND INTERNATIONAL CONFERENCE ON RAMLILA


It was a seven-day long festival organised by Indira Gandhi National Center for Arts under Ministry of Culture
at Delhi.
The First International Conference on Ramlila was held in Trinidad & Tobago in 2013.
Ramlila tradition of India has been inscribed in Masterpieces of the Oral and Intangible Heritage of
Humanity by the UNESCO in 2005.
Organising such festivals with international participation helps India in communicating its Soft power

WORLD INDOLOGY CONFERENCE


The Rashtrapati Bhavan hosted for the first time a World Indology
Conference in collaboration with Indian Council for Cultural Relations
(ICCR)
Indologists from across the world along with senior scholars from India
deliberated on various topics related to Indian culture and philosophy.
A Distinguished Indologist Award was presented by President
Mukherjee to Prof. Stietencron from Germany. This award includes US$
20000 and a Citation.
Benefits:

What is Indology?
It is the academic study of
the history and cultures, lang
uages, and literature of
the Indian subcontinent.
Prof. Stietencron is also one
of the founding members of
Orissa Project, which focuses
on history and socio-cultural
significance of Jagannath cult
in Orissa. He was also
awarded Padma Shri in 2004.

Indology has a global pool of scholars who can project Indias core
civilizational values effectively on the global stage.
Inclusiveness and universality that are found in the Vedanta and the
Upanishads are the prime features of Indology which are particularly
relevant to the violent world affairs of the twenty-first century.
This conference showcases the importance that the government attaches to Indology as it sheds light on
Indian civilizational achievements.
The high values, written and unwritten culture, duties and the way of life that is the essence of India will help
in reinforcing civilizational values that will bind together the complex diversity of modern day India.

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SOCIAL INNOVATION
It refers to new Solutions to social challenges that have the intent and effect of equality, justice and
empowerment
Examples of Social Innovation in India: Self-help groups, Co-operatives,
Vice President inaugurated
Micro credit societies, Distance learning, community courts - new ideas that
the 3rd national seminar on
work to meet pressing unmet needs and improve peoples lives.
Social Innovation in Pune.
Importance:

Provides a unique opportunity to step back from a narrow way of thinking about social enterprises,
business engagement, and philanthropy and to recognize instead the interconnectedness of various
factors and stakeholders.
Helps in changing social power structure
Important for sustainable economic growth by helping in developing alternative models of economic
growth that enhance rather than damage human relationships and well-being.
Opens up new markets that require social solutions.
Integrates marginalized populations into the formal economy and involves citizens in public decisionmaking.
Finally, it not only contributes to the mobilization of people in the innovation process but also provides
the impetus for economic growth and social equality.

Way forward:

Need to focus on proper coordination and integration of these activities in national and regional socioeconomic planning.
Education and research in science, technology, and innovation must go beyond focusing on elite science and
begin to support science that is focused more directly on meeting diverse social needs.
Rejuvenating the social base through a heavy investment in capacity building and creating a platform
conducive to interaction and collaboration are prerequisites for social innovators to prosper.
Need to strengthen Public-private partnerships since they play an important role in supporting social
innovations.

CHANGING GENDER DYNAMICS IN FAMILY

Among families with one to four children, more boys are born than girls.
New data from census
Among families with more than four children, a sudden reversal begins to
reveals that the desire for a
take place, as girls become more common than boys.
male child in India still
Families that are unable to practice sex selection, or choose not to, are
remains.
likely to continue with more pregnancies in the hope of a male child.
So large families are more likely to have more girls, as the desire for a male child is what is spurring the size
of the family.
As family sizes got smaller over the last decade, these processes have only intensified.
The magnitude of disparity between small families with more boys than girls and large families with more
girls than boys has sharpened between 2001 and 2011.

Why sons?

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Economic Utility: which is in the form of assistance in agricultural production , wage earning and old age
security
Social Utility: From the kinship pattern and descent system, having a male child strengthens the status and
power of the family, and also that the family receives premium in the form of dowry
Religious Utility: The importance of male only who can light the funeral pyre and perform pind daan of his
parents providing salvation to their souls.
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SCIENCE AND TECHNOLOGY


3G IN INDIA

India will have over half a billion unique mobile subscribers,


accounting for 13 per cent of the worlds mobile population
by the end of 2015.
However, only 11 per cent of mobile connections were on
3G, majority of the mobile population is still on 2G

Challenges for telecom industries in future:

Contributions of telecom industry in


India

About 6.1% of the total GDP


Created 4 million in jobs directly
and indirectly
One of the pillars of JAM Trinty.
Mobile phones allowing direct
transfers
of
funds
into
beneficiarys accounts, cutting out
all the intermediaries.

3G is the fundamental platform for delivery of services, the


people still on 2G will not be able to participate in this
economy
Ensuring high-quality, widely available and affordable
mobile broadband will be critical.
Requirement of regulatory framework and approach to spectrum that encourages investment and
innovation.

REQUIREMENT FOR NATIONAL POLICY FOR OPTICAL FIBRE


Why Optical fibre cable (OFC) is important?

Mobile spectrum is limited.


With the help of OFC, wi-fi hotspot can be created and internet coverage can be improved upto 90 %
Better speed and data transfer as compared to spectrum

Hurdles:

Digging trenches in cities to lay fibre is time consuming task.


Delays in Grant of permissions for digging

Policies that can adopted by Government:

Government should mandate every new building to have provision for OFC in design plan like it is
required in case of other amenities - electricity, water pipeline.
industry and the government will have to work together in increasing supply of bandwidth in the country
Government should open with private players for rolling out OFC across country.

CONTRIBUTIONS OF SIR CHANDRASEKHARA VENKATA RAMAN


His 45th death anniversary on
21st November 2015 and 128th
birth anniversary on 7th
November 2015

Notable works:

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Raman Effect: Explained the scattering of light passing through a


transparent material. He won the 1930 Nobel Prize in Physics for this
discovery.
Worked on the vibrations in musical instruments & nature of the sound of the Indian drums such as the
tabla, mridangam & violin.
Experimental and theoretical studies on the diffraction of light by waves of ultrasonic and hypersonic
frequencies.

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Honors and awards

He was elected a Fellow of the Royal Society of London early in his career (1924) and knighted in 1929.
In 1930 he won the Nobel Prize in Physics.
In 1954 he was awarded the Bharat Ratna
India celebrates National Science Day on 28 February of every year to commemorate the discovery ofthe
Raman effect in 1928.
He was the first Asian and first non-white to receive any Nobel Prize in the sciences. Before him
Rabindranath Tagore (also Indian) had received the Nobel Prize for Literature in 1913.

NANOTECHNOLOGY
BONES

TO

RECREATE

Scientists at the Indian Institute of Science (IISc), Bengaluru


suggests that 3D Blocks of graphene composites can be
used for bone tissue regeneration as they mimic the
environment of the bone.
Graphene
will
be
used
for
strengthening Polycaprolactone (PCL)
a biodegradable polymer which will
be used for bone support
The purpose of the PCL is to provide
only a temporary home for the
regenerating cells & allowing for
healthy tissue to eventually replace the
scaffold.
Nanotechnology will be used to create
3D structure of Graphene

What is Graphene?
Graphene form of carbon consisting of planar
sheets (2D structure) which are one atom
thick, with the atoms arranged in a
honeycomb-shaped lattice.
Graphene is frequently in news recently. What is its importance?
1. It is a two-dimensional material and has good electrical conductivity.
2. It is one of the thinnest but strongest materials tested so far.
3. It is entirely made of silicon and has high optical transparency.
4. It can be used as conducting electrodes required for touch screens, LCDs and organic LEDs.
Which of the statements given above are correct?
(a) 1 and 2 only

(b) 3 and 4 only (c) 1, 2 and 4 only (d) 1, 2, 3 and 4

NEW INFLUENZA VIRUSES LIKELY TO INFECT INDIANS

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India should be prepared for the invasion of new influenza viruses H9N2 and H7N9, which is currently
very active in poultry markets in Bangladesh and China
Earlier Indians were infected by H5N1 virus in 2006 that came from china.

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What does H and N stands for in Inflenza virus

Influenza viruses are divided into subtypes based on two proteins on the surface of the virus:
o the hemagglutinin (H) and
o the neuraminidase (N).
There are 18 different hemagglutinin subtypes and 11 different neuraminidase subtypes.

NISAR MISSION COLLABORATION OF ISRO AND NASA

The NASA-ISRO Synthetic Aperture Radar (NISAR) mission will be the biggest collaboration between
these two space organizations
The mission is to build a 2,600 kg satellite for detailed view of Earth by using advanced radar imaging
It is expected launched from Indian launch vehicle by 2020
Payload
o L-band (24-centimeter wavelength): To be produced by NASA
o S-band (12-centimeter wavelength): To be produced by ISRO

Functions of NISAR:

Observe and take measurements of some of the planet's most complex processes, including ecosystem
disturbances, ice-sheet collapse, and natural hazards such as earthquakes, tsunamis, volcanoes and
landslides.
To Predict changes in Earths topography
To create the worlds largest freely available remote sensing data set

Earlier collaborations between NASA and ISRO:

2005 Chandrayaan-I mission where Moon Mineralogy mapper from NASA accompanied the mission,
resulting in joint-discovery of water on moon.
2014 Mars Orbiter Mission (Mangalyaan) where NASAs navigational expertise in deep space trajectory
and maneuverability aided the mission

'LI-FI' LED LIGHT BULBS TO TRANSMIT GIGABIT-LEVEL WIRELESS


DATA

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Until now, wireless data was


facilitated by Bluetooth (for lowspeed, short distance wireless
communication,) cellular signals
(wide range 3G, and soon 4G etc.)
or WiFi (broadband wireless
within rooms, buildings and open
areas).
Recent developments are pointing
to a new-generation technology
that uses LED light to transmit
data known as Li-Fi (loosely
expanding to Light-Fidelity).
Using precisely controlled light
modulation,
data
can
be
transmitted using regular, visible
light.
Its speeds will between 10 and
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100 times faster than current-generation WiFi.


Transmission range of this technology is limited compared to a radio frequency based technologies like
Wi-Fi.
o Range is inversely proportional to frequency

Current applications:

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Used in enabling of household appliances and devices communication


Used in high-speed point-to-point networking devices that deliver backbone network support.
Data-laden lights can continue to function for regular illumination, lighting up rooms while continuing to
transmit ultra-broadband data.

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ENVIRONMENT
DOYANG LAKE, NAGALAND ATTRACTS AMUR FALCOM
Amur Falcons are the migratory bird that stay every year at Doyang lake during theirflight from Mongolia
to South Africa
Pangti village in Nagaland is considered as the worlds Amur Falcon capital
Centre will soon develop the Doyang Lake (Nagaland) area as an eco-tourism spot for bird-watchers
across the world.
Until recently, Amur falcons were hunted by Naga tribesmen for meat.
Now tribal groups are working for its conservation, owing to proper motivation, training and mindset
changes effected by various wildlife conservation bodies, activists.

INDIA AND SENDAI AGREEMENT FOR DISASTER REDUCTION


India has been designated as the Champion for Disaster Risk Reduction (DRR) for its efforts to facilitate
regional support towards enabling community resilience in the Asia-Pacific region.
United Nations Office for Disaster Risk Reduction (UNISDR), has declared India first regional champion
after the Sendai Agreement.

What is Sendai Agreement?


The Sendai Framework for Disaster Risk Reduction 20152030 was adopted at the Third United Nations World
Conference on Disaster Risk Reduction, held in March 2015 in Sendai (Miyagi, Japan).
It is a 15-year non-binding agreement
It says that state has the primary role to reduce disaster risk but that responsibility should be shared
with other stakeholders including local government and the private sector.
It is improved version of the existing Hyogo Framework.
AIM- The substantial reduction of disaster risk and losses in lives, livelihoods and health and in the economic,
physical, social, cultural and environmental assets of persons, businesses, communities and countries.
The Sendai Framework Priorities:
1.
2.
3.
4.

Understanding disaster risk;


Strengthening disaster risk governance to manage disaster risk;
Investing in disaster risk reduction for resilience;
Enhancing disaster preparedness for effective response, and to "Build Back Better" in recovery,
rehabilitation and reconstruction.

Sendai Frameworks seven global targets:


1. Substantially reduce global disaster mortality by 2030, aiming to lower average per 100,000 global
mortalities between 2020-2030 compared to 2005-2015;
2. Substantially reduce the number of affected people globally by 2030, aiming to lower the average global
figure per 100,000 between 2020-2030 compared to 2005-2015;
3. Reduce direct disaster economic loss in relation to global gross domestic product by 2030;
4. Substantially reduce disaster damage to critical infrastructure and disruption of basic services, among
them health and educational facilities, including through developing their resilience by 2030;
5. Substantially increase the number of countries with national and local disaster risk reduction strategies
by 2020;
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6. Substantially enhance international cooperation to developing countries through adequate and


sustainable support to complement their national actions for implementation of the framework by 2030;
7. Substantially increase the availability of and access to multi-hazard early warning systems and disaster
risk information and assessments to the people by 2030.

NGT ASKS CENTRE & STATES TO PROTECT WETLANDS


The National Green Tribunal has asked centre and the various states for identification and protection of
wetlands.
Prevailing Problems:

Restoration and conservation of wetlands becomes impossible once they are destroyed, as these are
neither identified nor categorized.
States, in coordination with the central government, failed to performed their statutory duty of
identifying all wetlands in their respective jurisdiction as per the Wetlands (Conservation and
Management) Rules
Centre had violated sections of the Environment Protection Act 1986 which has increased the risk of
losing the wetlands.
Govt. has failed to prevent activity in and around the wetlands, as inventoried by ISRO in 2007 and 2011

Importance of Wetlands:

Vital part of the hydrological cycle, are highly productive, support exceptionally large biological diversity
Provides services such as waste assimilation, water purification, flood mitigation, erosion control, ground
water recharge, micro climate regulation.
supporting many significant recreational, social and cultural activities besides being a part of the cultural
heritage

CSE 2009: Discuss the wetlands and their role in ecological conservation in India.
CSE 2010: List any eight Ramsar wetland sites located in India. What is the Montreux Record and what Indian
sites are included in this Record?
CSE Prelims 2012:
With reference to the wetlands of India, consider the following statements:
1. The countrys total geographical area under the category of wetlands is recorded more in Gujarat as
compared to other States.
2. In India, the total geographical area of coastal wetlands is larger than that of inland wetlands. Which of the
statements given above is/are correct?
(a) 1 only

(b) 2 only (c) Both 1 and 2

(B) Neither 1 nor 2

POOR URBAN PLANNING CAUSED FLOODS IN CHENNAI


Tamil Nadu and parts of Kerala, Andhra Pradesh, Telangana and Karnataka receive winter monsoon, also known
as retreat of the monsoon. Apart from heavy rainfall poor urban planning has aggravated the situation.

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Fault in planning

The trend of reckless illegal construction that has shut outlets for water
At least 300 water bodies have been converted into residential areas
Most waterways, tanks and reservoirs are choked with silt, and their flow channels and banks have been
encroached upon.
Disconnected storm water drains preventing overflow from lakes and reservoirs to go straight into the
sea thereby causing flooding on roads.
Such disasters could have been prevented through planning, curbs on occupation of water bodies, and
pre-monsoon desilting of drains and water channels.
A key factor that should be taken into account is that the city needs an intricate drainage system to
match its tremendous development.

It is a must task for the government to implement the real solution-keeping water bodies free of construction
and habitation.

FROM CBDR TO INDC

Common but Differentiated Responsibilities and Respective Capabilities (CBDRRC) is a principle within
the United Nations Framework Convention on Climate Change (UNFCCC) that acknowledges the
different capabilities and differing responsibilities of individual countries in addressing climate change.
The principle of CBDRRC is enshrined in the 1992 UNFCCC treaty, which was ratified by all participating
countries.
CBDR-RC has served as a guiding principle as well as a source of contention in the UN climate
negotiations. Reflecting CBDR-RC, the Convention divided countries into Annex I and non-Annex I,
the former generally referring to developed countries and the latter to developing countries. Under the
Convention Annex I countries have a greater mitigation role than non-Annex-I countries.

Reasons behind collapse of CBDR-RC:

Starting of discomfort among Annex-I countries: Many western countries were not ready to put
constraints on their economies for a global cause that had no direct and immediate returns.
Growth of China: The rapid growth of China from the 1990s too had started to hurt the interests of the
West. Stricter emission standards for their industries would have made their products even more noncompetitive against Chinese goods. It helped their case that Chinas emissions had overtaken the US as
the worlds leading emitter of GHGs.
U.S role: The US refused to ratify the Kyoto Protocol and, for the first time since the birth of UNFCCC,
started playing a proactive role in shaping the global architecture on climate change. The argument was
that without restraining the emissions of China-and India, Brazil, South Africa, Mexico, etc.-no effective
fight against global warming could be launched.
Someof these countries, including Japan, Australia and Canada, walked out of the Kyoto Protocol.
After several rounds of bargaining, persuasion and threats, the current formulation-on the basis of which
a new agreement is to be finalized in Paris next month-was decided in Durban in 2013.

Emission cut an INDCs: Now every country needed to take demonstrable action, the quantum and extent of
which was to be decided by the country itself.
(For Details of INDC refer October Notes)

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SECURITY
PARIS ATTACKS WHY FRANCE?

France has been at the forefront of the ongoing


operations against the ISIS (Daesh) in Syria.
France has one of the largest Muslim populations in
Europe, and its Muslim minority remains less
integrated into the national mainstream and has
grievances against the French governments not-sofriendly way of mainstreaming them.

A Comparative Analysis of Paris vis--vis Mumbai Terror Attack

The name Daesh is a "loose acronym" for


"Islamic State of Iraq and the Levant" (alDawla al-Islamiya al-Iraq al-Sham). The
name is commonly used by enemies of ISIS,
and it also has many negative undertones,
as Daesh sounds similar to the Arabic
words Daes ("one who crushes something
underfoot") and Dahes ("one who sows
discord").

Similarities:

To target the economy and tourism by generating shock and a searing impact
Popular eating joints and restaurants in urban area
Suicide attackers with no expectation of survival
Precise, multiple-coordinated, unexpected manner in which terrorists executed their plan.
Multiple teams simultaneously hitting different places
Armed with AK-47s and sprayed bullets indiscriminately
Took hostages at the Le Bataclan concert hall and Taj Mahal hotel respectively.
Low-cost resources
Large-scale killing, targeted against the general public; citizens being targeted within the safety of their
own countries
Lack of precise intelligence

Differences:
Paris
Mumbai
Role of Non State Paris attacks seem to be have been Planned and directed by the LeT leadership based
actors
self-directed
in Pakistan. It was monitored and micromanaged
by professional handlers from the moment it was
conceived till the last jihadi was killed
Motivation
Sense of stigmatisation
Motivated by money and hope for a better life
SocioEconomic Europeans of Arab descent. Five Youth belonging to the lower strata who joined
of were French and the rest Belgian the jihad for money and hope of a better life.
Conditions
attackers
nationals, born in their respective
countries, and their act had a lot to
do with their local circumstances
Modern means of No, Mostly avoided
Yes, GPS coordinated, Satellite communication,
communication
Live telecasted
Response of other Well equipped state-of-art facility
Our hospitals were not equipped to deal with such
stakeholdersmassive massacre
Hospital
Public Response
Volunteered with open Heart
We had no volunteers to reach out or find out the
relatives of the victims, which we later did through
proper network
Indian Scenario:
ISIS is a clear and present danger to India. We need to address this threat before it acts.
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While Indian agencies are ruling out any immediate threat, it is clear that a new version of the IS style of
attacks, very low cost, but high impact, is a high possibility in the country.
The political establishment needs to wake up to the possibility of local grievances finding global echo
and refuge in IS propaganda.

Indian Preparedness Level:

Our technological, material and human resource preparedness to deal with terror continues to be
abysmal.
Despite 26/11, the Indian intelligence agencies continue to be ill-equipped to prevent future attacks.

India should therefore, check extremism of all kinds, equip and constantly monitor the agencies, preferably by a
joint parliamentary committee.

MEGA CITY SECURITY CONFERENCE MUMBAI


About The Conference

Organised by the US Consulate General.


Conference featured policymakers, law enforcement officials, security experts, and leading thinkers
representing eight different countries.
They shared first-hand experience dealing with security policy in some of the world's largest megacities
such as Mumbai, New York, Istanbul, Chicago, Manila, Dhaka, Nairobi, and Mexico City.
Security experts of four mega cities of the world Mumbai, London, Manila and New York, emphasised
on better networking among stakeholders in their bid to prevent terror attacks.
They also raised the crucial issue of funding of terrorist organisations and advocated stopping the terror
groups funding as it involves huge money to train operatives, getting sophisticated equipment, weapons
and other logistics.

INDIA- US COOPERATION ON INTERNAL SECURITY

In 2011, US-India Homeland Security Dialogue was created, which was the first comprehensive bilateral
dialogue on homeland security issues between our two countries.
The dialogue covers a wide range of activities linked to enhancing homeland security coordinated by
Department of Homeland Security US and Ministry of Home Affairs
It has enhanced operational cooperation in investigations, capacity building, and countering threats.
The US Department of State Anti-Terrorism Assistance (ATA) programme, operated by the Bureau of
Diplomatic Security, provided training to over 250 Indian law enforcement officers over the past year,
both at courses in India and the United States
Each year, on average 10 ATA training courses named trains the trainer for Indian law enforcement
officials in areas such as Senior Crisis Management, investigative techniques, explosive incident counter
measures, and community policing are being held by US to enhances the capability of thousands of
police officers across India

MUMBAI IN GLOBAL NETWORK OF CITIES ON TERROR FIGHT

48

Mumbai has now become part of a network of international cities that will exchange techniques and
develop infrastructure to combat extremism and strengthen their cyber security system
The network, formed at the UN level, has promised Maharashtra government to help in developing
infrastructure to tackle extremism and fortify cyber security mechanism
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Mumbai is the only city from Asia to be part of the network of 25 international cities, which are badly
affected by terrorist activities in recent times.
The group will serve as a common platform among these cities to exchange techniques and develop
infrastructure to combat terrorism
The first meeting of representatives of these 25 cities was held in New York last week. At the conclave,
they decided to set up a corpus.
New York, London, Paris, Denver, Oslo, Stockholm, Montreal and Copenhagen are the other prominent
cities included in the network.
The only criterion for the selection was that the city should be the financial hub of its respective
country and affected by terrorism.

RELIEF AND REHABILITATIONS OF MIGRANTS IN JAMMU AND KASHMIR


The Union Cabinet has approved the
proposal for providing relief and
rehabilitation to the migrants of the Hilly
areas of Jammu and Kashmir region.

1. In Kashmir Division

The proposal provides for additional 3000 state


government jobs to the Kashmiri migrants with
financial assistance from the Government of India and
To construct transit accommodations in the Kashmir Valley for the Kashmiri migrants to whom state
government jobs will be provided

Why?

Terrorist violence/ militancy in Jammu & Kashmir, particularly in its early phases, had led to large scale
forced migration of members of the Kashmiri Pandit community along with some Sikh and Muslim
families from the Kashmir Valley.

2. In Jammu Division

Provision of relief to the migrants of the Hilly areas of Jammu division at par with the relief being
provided to the Kashmiri migrants involving a total estimated expenditure of Rs. 13.45 Crore per annum

What Is New?

Earlier relief in terms of cash and ration to the migrants of the Hilly areas of Jammu division was
provided by State Government which was not at par with Kashmiri Migrants.
The expenditure incurred by the state Government in this regard would now be reimbursed by the
Government of India.

EXTENSION OF CCTNS PROJECT

Cabinet Committee on Economic Affairs approved a proposal for major revamp of Crime and Criminals
Tracking Network and Systems (CCTNS) Project.
It has decided to implement Integrated Criminal Justice System (ICJS) by integrating CCTNS with ECourts-E-prisons, Forensics and Prosecution- the key components of the criminal Justice System
This will ensure quick data transfer among different pillars of criminal justice system, which enhances
transparency and reduce processing time.
Police-Citizen interface will undergo a major shift with implementation, as number of services will be
enabled through citizen portal.
Government decided to fast track the implementation and completion of CCTNS project by March
2017 including implementation of ICJS.

(For CCTNS project Background, refer our October notes)

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VISIONIAS
www.visionias.in

CURRENT AFFAIRS
DECEMBER 2015

Copyright by Vision IAS


All rights are reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
IAS.
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TABLE OF CONTENTS
1. POLITY AND GOVERNANCE __________________________________________________________ 5
1.1. National Waterways Bill, 2015 ___________________________________________________________ 5
1.2. Global Initiative of Academic Networks (GIAN) ______________________________________________ 6
1.3. ICT Development Index (IDI) _____________________________________________________________ 7
1.4. Integration of CVC and CBI Under Lokpal ___________________________________________________ 8
1.5. The New Delhi Declaration on Political Finance Regulation in South Asia, 2015 ____________________ 8
1.6. Arbitration and Concilisation Act (Amendment) Bill, 2015 Cleared by the Parliament _______________ 9
1.7. Supreme Court Appoints Uttar Pradesh Lokayukta __________________________________________ 10
1.8. Arunachal Pradesh Controversy _________________________________________________________ 11
1.9. CAG Report on Consolidated Fund _______________________________________________________ 11
1.10. Defence Sector Reforms ______________________________________________________________ 11
1.11. Make in India In Defence Sector ________________________________________________________ 12
1.12. Remission of Sentences _______________________________________________________________ 13
1.13. Non-Utilization of the Cess Money ______________________________________________________ 14
1.14. Food Sector Regulation _______________________________________________________________ 15
1.15. Gujarat Labour Laws (Amendment) Bill 2015 ______________________________________________ 16
1.16. Suprerme Court Verdict on Haryana Panchayati Raj (Amendment) Act 2015 ____________________ 16
1.17. Katoch Committee Report _____________________________________________________________ 17
1.18. Delhis Jan Lokpal Bill _________________________________________________________________ 18
1.19. Underground Coal Gasification (UCG) ____________________________________________________ 19

2. INTERNATIONAL RELATIONS ________________________________________________________ 21


2.1. India-Japan Relation __________________________________________________________________ 21
2.2. Indo-Russia Relation __________________________________________________________________ 22
2.3. Afghanisatan Joins WTO _______________________________________________________________ 24
2.4. India- Afghanistan ____________________________________________________________________ 25
2.5. India-Pakistan Relation ________________________________________________________________ 25
2.6. Islamic Military Alliance ________________________________________________________________ 25
2.7. India and Seychelles ___________________________________________________________________ 26
2.8. India-Israel Relation ___________________________________________________________________ 26
2.9. Forum on China-Africa Cooperation (FOCAC) _______________________________________________ 26

3. ECONOMY _______________________________________________________________________ 28
3.1. Insolvency and Bankruptcy Code, 2015____________________________________________________ 28
3.2. Financial Stability Report (Bi-Annually Published by RBI) _____________________________________ 29
3.3. Vijay Kelkar Committee Report On Review of PPP Infrastructure Development ___________________ 29
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3.4. Arvind Subramanian Committee Report on Goods and Services Tax (GST) _______________________ 31
3.5. IRDAI to Liberalise Norms for Trade Credit Insurance ________________________________________ 32
3.6. World Bank Report Ending Extreme Poverty, Sharing Prosperity: Progress and Policies ____________ 33
3.7. ETCD Market intervention by RBI ________________________________________________________ 34
3.8. RBIS Report on Financial Inclusion _______________________________________________________ 34
3.9. Digitization of PDS ____________________________________________________________________ 35
3.10. National Investment And Infrastructure Fund _____________________________________________ 36
3.11. NSSO Report on Land and Licestock Holdings______________________________________________ 37
3.12. WTO Nairobi Talks ___________________________________________________________________ 38
3.13. Revised Priority Sector Lending Norms for RRBs ___________________________________________ 39
3.14. SEZ Revival Plan _____________________________________________________________________ 40
3.15. Cairn Indias Tax Dispute ______________________________________________________________ 42
3.16. India Set to Adopt BaSE Erosion Profit Sharing Project (BEPS) ________________________________ 43
3.17. Compats Voids CCIS Penalty on CEment Companies ________________________________________ 44
3.18. Strategic Crude Oil Reserve Programme __________________________________________________ 45

4. SOCIAL ISSUES____________________________________________________________________ 46
4.1. Cybercrime Against Women ____________________________________________________________ 46
4.2. Dowry Deaths ________________________________________________________________________ 47
4.3. Domestic Violence ____________________________________________________________________ 47
4.4. SC Ruling Regarding Appointment of Archakas in Tamil Nadu Temples __________________________ 48
4.5. Gender Equality-Women to Work in Night Shifts: ___________________________________________ 49
4.6. Malnutrition in India __________________________________________________________________ 49
4.7. Healthcare System: Lancet Report _______________________________________________________ 50
4.8. HIV-Aids ____________________________________________________________________________ 52
4.9. Acute Flaccid Paralysis (AFP) ____________________________________________________________ 54
4.10. Accessible India Campaign (Sugamya Bharat Abhiyaan) _____________________________________ 55
4.11. Impact of Natural Disasters on Elderly People _____________________________________________ 56
4.12. Online Sale of Drugs __________________________________________________________________ 56

5. SCIENCE AND TECHNOLOGY _________________________________________________________ 58


5.1. Germline Editing______________________________________________________________________ 58
5.2. Development of Artificial Liver Tissue by3-D Printing ________________________________________ 59
5.3. World's First Biologically-Powdered Chip __________________________________________________ 59
5.4. Facebooks Free Internet Usage _________________________________________________________ 60
5.5. Universal Immunisation Programme for Cervical Cancer______________________________________ 60

6. ENVIRONMENT ___________________________________________________________________ 61
6.1. CoP 21 Draft: Paris Agreement __________________________________________________________ 61
6.2. Indian Long Term Ecological Observatories (I-LTEO) _________________________________________ 62
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6.3. Indian Ocean Warming and Its Consequences ______________________________________________ 62


6.4. Environmental Crime in India ___________________________________________________________ 63

7. SECURITY________________________________________________________________________ 64
7.1. Terror Financing ______________________________________________________________________ 64
7.2. UNSC Resolution to ut Off Funding to ISIS, Al-Quaeda________________________________________ 64
7.3. Indias Strategy to Deal with Terror Financing and Money Laundering___________________________ 65

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1. POLITY AND GOVERNANCE


1.1. NATIONAL WATERWAYS BILL, 2015
Why in news?

The government recently approved the


amendments to National Waterways Bill,
2015
It is based on the recommendations of
Parliamentary Standing Committee on
Transport, Tourism and Culture and
comments of the states.
The amendment proposes to declare 101
additional inland waterways as national
waterways taking total their total number to
111 from presently 5.
The Bill will also cover the existing 5 national
waterways.

Concerns with the provisions of the bill:

Funds: Without any commitment for funds and financial implication, the
declaration of additional 106 waterways will be self-defeating and against
the intent of the existing IWAI Act.
Deviation: A deviation from the provisions of the IWAI Act, 1985, is placing
the right over the use of water, river bed and the appurtenant land with the
state government. Section 14(1) of the IWAI Act, 1985 deals with the
powers of the central government with regard to appurtenant land and
river bed in the development of the waterway for shipping and navigation.
Growth: At a time when the growth of water transport in national
waterways is inhibited due to various factors such as low productivity, no
participation of private shipping and infrastructure, an exponential increase
in number of national waterways and unwarranted delegation of financial
liability and functions to the states will, in fact, be a disservice to the sector.

Regulatory provisions:

The Inland Waterways Authority of India Act, 1985 empowers the


Government to declare waterways with potential for development of
shipping and navigation as National Waterways and develop such
waterways for efficient shipping and navigation.
For development and regulation of inland waterways in the country the
Inland Waterways Authority of India was set up in October, 1986.

Advantages of Inland Water Transport:

Inland Water Transport is considered as the most cost effective mode of


transport from the point of view of fuel efficiency. In a study as highlighted
by the World Bank, 1 litre of fuel can move 105 ton-km by inland water
transport, whereas the same amount of fuel can move only 85 ton-km by
rail and 24 ton-km by road.

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Studies have shown that emission from container vessels range from 32-36 gCO2 per ton-km while those
of road transport vehicles (heavy duty vehicles) range from 51-91gCO2 per ton-km.
In India, 14,500 km of river channels are navigable, of which 3,700 km are usable by mechanised boats.
But actually, only 2000 km are used. Of the total canal length of 4,300 km in India, 900 km is navigable,
but only 330 km is used.
The expeditious declaration of national waterways and its subsequent development will spur industrial
growth and tourism potential of the hinterland along the waterway.
In addition, other benefits include fewer accidents and less congestion on roads.

Problems of Inland Water Transport:

There is a seasonal fall in water level in rivers especially in the rain-fed rivers of the peninsula which
become nearly dry during summer.
Reduced flow due to diversion of water for irrigation, for instance, in the Ganga which makes it difficult
even for steamers to ply.
There is reduced navigability due to siltation, as in the Bhagirathi-Hooghly and in the Buckingham Canal.
There are problems in smooth navigation because of waterfalls and cataracts, as in Narmada and Tapti.
Salinity, especially in the coastal stretches, affects navigation.

Q. Write about National Waterways. (Not more than 30 words) (Q.4(b), 2009)

1.2. GLOBAL INITIATIVE OF ACADEMIC NETWORKS (GIAN)


Govt. of India approved a new program titled Global Initiative of Academic Networks (GIAN) in Higher Education
aimed to boost the quality of the country's higher education through international collaboration

GIAN is envisaged to catalyse higher education institutions in the country, and will initially include all
IITs, IIMs, Central Universities, IISc Bangalore, IISERs, NITs and IIITs and subsequently cover good State
Universities.
Faculty from 38 countries like Russia, Japan, Singapore, Sweden, Switzerland, Portugal, the Netherlands,
Malaysia and South Korea are scheduled to deliver courses and do research in Indian institutions.
The courses are free for students from the
host institution, charged at nominal rates for
others and webcast live as well.
These lectures would also be made available
later to the students across the country
through the SWAYAM, the MOOCs platform
and the National Digital Library.
A web portal (gian.iitkgp.ac.in) has been
designed by IIT Kharagpur to allow electronic
registration and online assessment.
IIT Kharagpur is the nodal institution and
national coordinator for this flagship
programme.

GIAN will help to:

Gather the best international experience into our systems of education,


enable interaction of students and faculty with the best academic and industry experts from all over the
world
Share their experiences and expertise to motivate people to work on Indian problems and develop new
pedagogic methods in emerging topics of national and international interest.
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Address the issue of teacher shortage in leading Indian institutions like IITs and central universities. As
the Foreign universities bill, which allows foreign universities to setup campus in India, is yet to be
passed, GIAN can help fill the gap by helping in internationalization of Indian institutions.
Provide opportunity for the technical persons from Indian Industry to improve understandings and
update their knowledge in relevant areas.

Concerns:

huge remuneration to the visiting faculties


Concerns of copyright and recording of lectures has been raised by few American universities which
forbids their faculty from taking courses outside.

1.3. ICT DEVELOPMENT INDEX (IDI)


Why in news?

India has been ranked a low 131 out of 167 nations on a global index that measures the level of
information and communication technology access.
India dropped six notches from the IDI rank in 2010.
Despite the improved penetration of ICT in India, Indias rank declined:
The ICT access sub-index is used to capture ICT readiness and includes five indicators
o fixed telephone subscriptions,
o mobile cellular telephone subscriptions,
o international internet bandwidth per internet user,
o percentage of households with a computer,
o Percentage of households with internet access).

Reason for low ranking

Fixed telephone subscriptions: The parameter fixed


Facts about IDI:
telephone subscriptions maps the number of fixed

Published
by the United Nations
telephone subscribers per 100 inhabitants. For a
International
Telecommunication
country like India this value is much lower than that for
Union
the advanced economies. Also ITU has not taken into
Standard tool that governments,
account the shared usage by means of community STD
operators, development agencies,
booths.
researchers and others can use to
Fixed telephone subscriptions: The parameter fixed
measure the digital divide and
telephone subscriptions maps the number of fixed
compare ICT performance within and
telephone subscribers per 100 inhabitants. For a
across countries.
country like India this value is much lower than that for
The ICT Development Index is based on
the advanced economies. Also ITU has not taken into
11 ICT indicators, grouped in three
account the shared usage by means of community STD
clusters: access, use and skills.
booths.
Percentage of households with internet access: The
proliferation of internet cafes and corporate initiatives like e-choupal not taken into consideration.
Use of SMS: has not been mapped in IDI. Initiatives such as SMS-based crop and weather alerts and
SMS-based DBT of subsidies are examples of leveraging ICT for the masses who may not have dedicated
access to computers or the internet.
Internet bandwidth. Countries have been assessed on the parameter internet bandwidth per internet
user with a reference value of 787 kbps. It is not required for successful implementation of e-governance
initiatives that work with basic internet bandwidth. Thus it has unjustifiably, lowered the ranking of
many developing nations.
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1.4. INTEGRATION OF CVC AND CBI UNDER LOKPAL


Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice has suggested that the anticorruption wings of Central Bureau of Investigation (CBI) and the Central Vigilance Commission (CVC) can be
brought under the ambit of Lokpal.
Observation and Recommendations:

At present there is overlap in jurisdiction and functions of CVC, Lokpal and even CBI in certain areas,
which can create serious functional problems.
Existing provisions make it possible for a complaint of corruption against an official being dealt
simultaneously by multiple agencies such as Lokpal, CVC, CBI and Vigilance Unit of his/her organisation
which may lead to confusion.
The report added that Lokpal should utilise both the organisations for conduct of enquiry, investigation
and prosecution. Such an integrated setup would be a more potent body to deal with corruption cases
and cause least financial burden on the exchequer.
It also urged the Centre to specify the functions of the Lokpal and CVC on such integration for their
smooth functioning and de-duplication of effort.
That the leader of the single largest Opposition party in the Lok Sabha should be included as a member
of the panel to select chairperson and members of Lokpal in case there was no recognised Leader of
Opposition.
Review of existing rules, which reflect "colonial mind-set of doubt and mistrust", on declaration of assets
and liabilities by a government servant as they are "at present being used more to harass government
servants than as a safeguard against corruption".
The committee said frequent directions to CBI to handle cases relating to Prevention of Corruption Act
by the apex courts pre-empts rights and remedies available to people under criminal justice system.

1.5. THE NEW DELHI DECLARATION


REGULATION IN SOUTH ASIA, 2015

ON

POLITICAL

FINANCE

The two-day Regional Conference on The Use of Money in Politics and Its Effects on Peoples Representation
recently culminated with the New Delhi Declaration 2015 on Political Finance Regulation in South Asia.

The Conference was jointly organized by the Election Commission of India, International IDEA (an
intergovernmental body wherein India is one of the founding members) & India International Institute of
Democracy and Election Management (IIIDEM).
The New Delhi Declaration on Political Finance Regulation in South Asia, 2015, is in response to the
needs for strengthening the regulation of political finance (uneven access or use of money) across the
South Asian region and elsewhere in the world which adequately ensures level playing among all political
parties and ultimately serves the welfare of public rather than special interests.
o It contains nine overarching principles including adoption of a holistic approach to regulation,
comprehensive coverage, closing of monitoring gaps, coordinates efforts with stakeholders and
agencies along with facilitating participation of women in electoral democracy.
o The overarching principles look at a holistic and integrated approach to regulation of political
finance by closing gaps and loopholes in the implementation of the existing procedures and
regulations.
o It also underscores the need to create uniformity for all political parties and candidates by
creating an improved architecture for monitoring of expenditures and contributions.
o The declaration also has nine regulations and implementing guidelines on maintaining
reasonable levels of spending, regulation of private contributions, and provision of public
funding for political parties, prevention of abuse of state resources, public disclosure of political
finance, the regulatory authority, compliance, and enforcement among others.
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These overarching principles and guidelines which are recommendation of the Declarations will
be disseminated to Election Management Bodies (EMBs) in South Asian region and elsewhere
for appropriate use as per local contexts in their jurisdictions.

Need to regulate use of money in politics:

The rising costs of running for office are keeping people from contesting elections in the region. The
limits of expenditure prescribed are meaningless and almost never adhered to. As a result, it becomes
difficult for the good and the honest to enter legislatures.
It also creates a high degree of compulsion for corruption in the political arena. Corruption erodes
performance, becomes one of the leading reasons for non-performance and compromised governance
in the country.
Women, who account for half of the population, are still under-represented as they lack financial
independence to be able to contest elections.

1.6. ARBITRATION AND CONCILISATION ACT (AMENDMENT) BILL, 2015


CLEARED BY THE PARLIAMENT
Background:

Arbitration in India is often criticized for being slow, expensive and ineffective. Thats why many foreign
companies are hesitant to do business in India because of the long-drawn litigations.
India was ranked 178 out of 189 nations in terms of enforcing contract by the World Banks ease of
doing business report, 2016.
Earlier, The Arbitration and Conciliation Act, 1996 was enacted to consolidate and amend the law
relating to domestic arbitration, international commercial arbitration and enforcement of foreign
arbitral awards, and to define the law relating to conciliation and for matters connected therewith or
incidental thereto.
The Law Commission of India, in its 246th report, gave recommendations aimed at making the
arbitration process quicker and cost effective, reducing the intervention of the courts and making the
enforcement of arbitral awards easier.

Salient Features of amendment:

It enables the parties to an international commercial


What is arbitration?
arbitration with the seat of arbitration outside India, to also
It is a procedure in which a dispute is
approach the Indian courts and seeking interim relief,
submitted, by agreement of the
unless the parties have agreed to the contrary.
parties, to one or more arbitrators who
Arbitral Tribunal shall make its award within a period of 12
make a binding decision on the
months. Parties may extend such period up to six months.
dispute. In choosing arbitration, the
Thereafter, it can only be extended by the Court, on
parties opt for a private dispute
sufficient cause.
resolution procedure instead of going
The Court while extending the period may also order
to court.
reduction of fees of arbitrator(s) not exceeding five percent
for each month of delay and it also provides for additional fees if arbitration procedure is completed
within six months if both parties agree.
There is a provision for fast track procedure for conducting arbitration. Award in such cases shall be
given in six months period.
Mere filing of an application for challenging the award would not automatically stay execution of the
award but only by order of a competent court.

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Regarding grounds for challenge of an arbitral award, the amendment has restricted the scope of the
term 'Public Policy of India to - induced or affected by fraud; in contravention with the fundamental
policy of India; in conflict with the most basic notions of morality or justice.
A new provision to provide that application to challenge the award is to be disposed of by the Court
within one year.
An application for appointment of an Arbitrator shall be disposed of by the High Court or Supreme Court
as expeditiously as possible and an endeavor should be made to dispose of the matter within 60 days.
The amendment puts a cap on the fee of an arbitrator.
It gives wide powers to the arbitral tribunal to impose costs and the general rule of making the
unsuccessful party pay costs to the successful party has been introduced.
The person to be appointed as the arbitrator must disclose any relationship or interest of any kind,
which is likely to give rise to justifiable doubts.

CSE Mains 2015:

Q. What are the major changes brought in the Arbitration and Conciliation Act, 1996 through the recent
Ordinance promulgated by the President? How far will it improve Indias dispute resolution mechanism?
Discuss.

1.7. SUPREME COURT APPOINTS UTTAR PRADESH LOKAYUKTA

On December 16, the Supreme Court took the extraordinary step of appointing Justice (retd) Virendra
Singh, a former judge of the Allahabad High Court, the new Lokayukta of Uttar Pradesh after its deadline
to the government to make the appointment passed.
Supreme Court said that it was compelled to invoke its powers under Article 142 owing to failure of
state government to comply with its orders since April 2014.
The court said it was compelled to invoke its extraordinary powers under Article 142 owing to
astonishing circumstances, and because all hopes and expectations of this court have gone in vain
and remained unheeded.

Background

N K Mehrotra was appointed Lokayukta on March 16, 2006. His six-year term ended on March 15, 2012,
but the state government issued an ordinance to give him a two-year extension.
The extended term too ended in 2014, but Mehrotra remained in his post because the UP Lokayukta
(Amendment) Act, which was passed by the House in July 2012, also said that the Lokayukta shall,
notwithstanding the expiration of his term, continue to hold office until his successor enters upon his
office. In all, Mehrotra served for 9 years and 9 months.
The Amendment Act was challenged in court, but on April 24, 2014, the Supreme Court directed the
State to take all endeavours for selecting the new incumbent for the office of Lokayukta and UpLokayuktas as per the provisions of the Act preferably within a period of six months.
December 16, the court picked Virendra Singh to be the Lokayukta from the list of five names that were
being considered by the Selection Committee after UP government failed again and again in complying
with court order.

Article 142

10

The Supreme Court in the exercise of its jurisdiction may pass such decree or make such order as is
necessary for doing complete justice in any cause or matter pending before it.

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1.8. ARUNACHAL PRADESH CONTROVERSY


Why in news?

Governor decided to advance the winter session of the assembly by a month and issued directions to
vote on a resolution calling for the removal of the speaker at the first sitting of the House, with the
deputy speaker in the chair. This move created a constitution crisis in Arunachal Pradesh.
As per the constitution The governor has the power to summon, prorogue and dissolve the assembly
under Article 174 but the governor, as the constitutional head of the state, is bound to act on the advice
of the council of ministers

CSE MAINS 2008


Q. Explain the discretionary powers of the Governor of a State.

1.9. CAG REPORT ON CONSOLIDATED FUND

A CAG report said that the Finance Ministry has been withdrawing money in contravention of
constitutional provisions while making interest payments on tax refunds to range of over INR 5000 crore
in 2014-15 and INR 42,903 crore in previous six years.
Since interest on refund of taxes is paid out from and out of the CFI, the withdrawal of money from the
CFI for payment of interest requires authorization of Parliament under Article 114(3).
Department of Revenue/Central Board of Direct
Taxes has been classifying interest payment on
CSE PRE 2011
refunds of excess tax as reduction in revenue
The authorization for the withdrawal of funds
which is an incorrect practice.
from the Consolidated Fund of India must
The Public Accounts Committee (PAC), which
come from
examined the issue, in 2013-14 had advised the
(a) The President of India
Finance Ministry to devise a procedure so that the
(b) The Parliament of India
interest payments on tax refunds are shown in the
(c) The Prime Minister of India
Annual Financial Statement and Demand for
Grants and receive Parliamentary approval.
(d) The Union Finance Minister

What is consolidated Fund of India?


It is a fund to which all the receipts are credited and all the payments are debited. No money out of this fund can
be appropriated except accordance with a parliamentary law.

1.10. DEFENCE SECTOR REFORMS


Why in news?

During the Prime Ministers visit to Russia recently there was an announcement of deals on joint
manufacture of 226 military helicopters to boost strategic ties.
Such big ticket defence purchases have become very common for India and India has become one of the
biggest importer of arms in the world.

Challenges before Indian Defence Manufacturing

11

The defence budget is 13 per cent of the Central governments total expenditure, and almost 2 per cent
of the GDP
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Indigenous acquisition is very low (35%) which should increase to 70 percent to achieve self-reliance.
The country procures approximately 70% of its equipment needs from abroad.
Approximately 40% of the budget release to the capital expenditure is currently driven by equipment
modernization programmes in each of the three services.
Defence manufacturing is dominated by defence PSUs and ordnance factory boards (OFB), which
together have 90% share in total defence manufacturing.
Defence sector PSUs have largely become local integrators for foreign systems
Indias imports are three times that of China

Way Forward

Building domestic defence capabilities under the umbrella of Make in India


Create a level playing field between the state-owned public sector units and the private firms to boost
investments and innovation
Nurturing the nascent capabilities in the private sector
An overhaul of higher education to create well-trained manpower and build a robust military-industrial
complex
An indigenous military complex can bring more transparency in defence deals and reduce corruption
Need to acknowledge the role private sector can play in modernization of defence capabilities
A common framework for defence procurement across research establishments, ordnance factories,
defence Public Sector Units (PSU) and the private sector
Decision making needs to be simpler, faster and transparent. Theres also an urgent need to address and
improve the ease-of-doing-business.
Creation of a single window for defence licensing and FDI approvals
Need to streamline the procurement process
liberalization in the foreign direct investment policy has already been announced, FDI limit has been
raised to 49%
Greater coordination between armed forces in different spheres of planning, training, procurement and
operations

1.11. MAKE IN INDIA IN DEFENCE SECTOR

With Make in India the government aims to manufacture 70% or more of its defence equipments in
India.
This provides an immense opportunity for both domestic and foreign players in the defence sector.
A committee set up by the MoD to evolve a policy framework for facilitating Make in India in the
defence sector has come up with several recommendations.

Salient recommendations of the Dhirendra Singh committee report:


Strategic Partnership Model

Committee has arrived at three models for the Indian set up Strategic Partnership, Developmental
Partnership and Competitive Partnership.
According to the Committee, the choice of the model should be based on strategic needs, quality
criticality and cost competitiveness.

Industry Friendly Procurement System

12

Streamline the acquisition process and structure so as to create more opportunities for the local
industry.
The procurement system must recognize the unique and strategic nature of defence equipments.
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The local industry should have the information about the type and nature of the long term equipment
requirement of the armed forces.

Emphasis on Greater Indigenisation

Make in India should not end up being assemble in India with no IPR and design control
The Defence Procurement Procedure needs to help create an eco-system where design, R & D,
manufacturing, maintenance, upgrade and export capabilities thrive.
A conscious shift in favour of the Make, Buy(Indian) and Buy and Make (Indian) category and significant
increase in the indigenous content

Human Resource Development

Setting up a defence manufacturing sector skill council- to enable skill development through the offset
route, setting up of tool rooms around defence industry clusters and a university programme for military
engineering.

Conducive Financial Framework

Emphasis on creating conducive financial framework for the local industry, particularly the private sector
to do business in the defence sector
Various aspects of taxes, duties, payment terms, exchange rate variation and cost of capital which
renders the products of private sector uncompetitive vis-a-vis the products of public sector companies
should be addressed

1.12. REMISSION OF SENTENCES


Why in news?

Significance of the Judgement

Recently Supreme Court struck down the Tamil


Nadu Governments decision to release seven
killers of the former Prime Minister Rajiv Gandhi.
Constitutional Bench rejected Tamil Nadus
argument that the seven prisoners should not be
robbed of their hope to be freed on remission.

Remission of sentence

It means reducing the period of sentence without


changing its character.
Under article 72 of the Indian Constitution
President can grant pardons to persons who are
convicted for life terms or awarded death penalty.
Under article 161 of the constitution, the governor
possesses the pardoning power.

Grounds of the judgement

13

Supreme Court said that the Centre, and not the


State government, will have the primacy in
deciding whether remission should be granted to
life-term convicts in the cases which concerned
the CBI or any Central agency as in the case of
Rajiv Gandhi killers.
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Court has barred State governments from


invoking their statutory remission power for
the premature release of those sentenced
by a High Court or the Supreme Court to a
specified term above 14 years without
remission.
Rejection of the theory that every convict
should have a ray of hope to be freed on the
grounds of remission
The State government will now have to get
the concurrence of the Centre in cases
investigated by Central agencies before it
can use its power of remission to release
convicts
Prisoners cannot be released on the whims
and fancies of politicians
Hardened, remorseless criminals cannot be
released even after 14 years of
imprisonment
The judgment will also settle the law on the
power of State governments to remit
sentences,
especially
of
prisoners
condemned to death whose sentences have
been commuted to life.
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SC said that the killers of former Prime Minister Rajiv Gandhi shattered the faith of the entire country so
do not even deserve a ray of hope that they will be released one day.
Supreme Court observed that
there is no scope to apply the
What does the law says?
concept of ray of hope for
Section 435 (2) of the CrPC, the judgment authored by Justice
such hardened, heartless
F.M.I Kalifulla held that the word 'consultation' means
offenders
and
such
'concurrence'. This means that TN govt should have got the
consideration will not be in
prior consent of the Centre before issuing its February 19
the interest of the society.
order to remit the sentences.
The apex court was dealing
Under the Criminal Procedure Code, a life convict can apply
with the legality of a special
category of sentence by
for remission after serving 14 years of his sentence. The
which constitutional courts
provision is reformative in nature.
can mandatorily send a
This special sentencing for 20 to 40 years depriving
person convicted in a heinous
prisoners of their statutory right to apply for remission was
crime like rape, dacoity, gangintroduced in the 2008 Swami Shraddananda murder case
rape and terrorist crimes to
judgment as an alternative to death penalty.
imprisonment of 20 to 40
years without remission.

1.13. NON-UTILIZATION OF THE CESS MONEY


A Comptroller and Auditor-General (CAG) report on government finances released recently revealed that more
than Rs. 1.4 lakh crore of funds collected by the government under various cesses for purposes as varied as
higher education, road development and the welfare of construction workers are lying unutilised.
Cess
This is a tax on tax, levied by the govt
for a specific purpose. Generally, cess
is expected to be levied till the time
the govt gets enough money for that
purpose.
Over the years, the government has
levied a number of cesses for
spreading education, the welfare of
workers, road development and
research and development.
The nature of a cess is such that if the
money is not used for the designated
purpose, it will remain dormant.

Concerns:

14

The Central government doesnt have to share the proceeds with State governments.
Despite these unutilised funds, the government has shown that it is still keen on cesses. It has already
levied a 0.5 per cent Swachh Bharat cess and is proposing a 2 per cent regional connectivity cess in
aviation and increasing the cess on sugar production.
These funds, meant for specific social causes, have been diverted to other uses or simply remained
unutilised though taxpayers had to suffer the additional burden.
Lack of transparency in utilization of cess money

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it just stagnates and distorts the economy further: the additional tax brings down real incomes without
any accompanying gain in socio-economic indicators as targeted
The Primary Education Cess, the National Clean Energy Fund, the Research & Development Cess Fund,
the Central Road Fund, the Income Tax Welfare Fund, the Customs & Central Excise Welfare Fund and
several dormant funds have Rs. 14,500 crore lying unused.

1.14. FOOD SECTOR REGULATION


Why in news?
Recently the Food Safety and Standards Authority of India (FSSAI) had indicated that it would reintroduce the
system of pre-launch product approvals by issuing new regulations.
Background:

Few months back the apex court upheld a Bombay High Court decision quashing an advisory issued by
FSSAI on the procedure for product approval.
The Bombay High Court had ruled that FSSAIs advisory on product approvals did not have force of law
and was beyond its powers as provided by the Food Safety Standards Act, 2006.
The FSSAI scrapped product approvals, following the apex court verdict.
Globally, companies do not require approval from regulators to launch a product. FSSAI started this as it
wanted to control end-products.
Product Approval Process: Earlier product approval was required only if there was a new ingredient or
additive being introduced. But in the May 2013 notice issued by FSSAI broadened this to cover all
products even if they were using approved ingredients or additives within permissible limits.

Concerns:
The uncertainty and confusion over this issue resurfaced with the FSSAI declaring that even while respecting the
court's decree over its advisories, it will come up with new regulations to revive the approval procedure.

Impacts on the Food Processing Industry


o
o

This does not bode well for a sector that, after a prolonged period of infancy, had begun to grow
at over eight per cent a year.
Food processing adds value to farm produce and helps to reduce wastage of perishable
products, so such regulations may affect farm sector badly.

The industry maintains that the regulator cannot bring back the product approval system unless the
law is amended.
Recent actions of the FSSAI, including those against Nestle India's Maggi noodles, created a "fear
psychosis" in the industry, killing innovation.
Allegations of harassment of companies by FSSAI officials on trivial grounds.
The basic objective of the FSSAI Act of putting in place a transparent and scientific system of food
safety seems to have been belied.

Way forward
India's food regulation law, the FSSAI Act of 2006, in fact does not require a new product to be formally
approved by the regulator if its ingredients are as per the law. Thus Food safety regulator must follow global
practices and should allow industry to self-certify compliance with standards.

15

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Steps taken by FSSAI to strengthen the Food Regulatory Mechanism

FSSAI has set up nine new panels for expediting work relating to strengthen the food regulatory
mechanism in the country.
The FSSAI has also notified 12 referral laboratories and 82 National Accreditation Board for Testing and
Calibration Laboratories-accredited private laboratories.

1.15. GUJARAT LABOUR LAWS (AMENDMENT) BILL 2015


Why in news?
Recently the President gave assent to
the Gujarat Labour Laws (Amendment)
Bill 2015.
Controversy surrounding the Bill

The Bill aims to amend certain


provisions in labour laws
applicable in Gujarat, including
the Industrial Dispute Act
1947, Minimum Wages Act
1948, Factories Act, Contract
Labour Act and Employees
compensation Act etc.
Provision of settlement of
disputes between workers and
the management out of
court by compounding a certain amount of money in the government agency.
o Argument given in favour of this provision- it will reduce unnecessary and endless litigation, and
75% of the penalty (up to Rs. 21000) charged on the employer by the government will be given
to the employee.
The bill has provision to ban strikes in public utility services for up to 1 year.
Time limit for workers to raise objections to the decisions of the industries has been reduced to
one year from three years.
A provision in the Bill has amended the definition of contractor to include outsourcing
agencies, which in some cases, is the government itself. This will attest more power to the
government.
The bill has eased hire and fire by proposing to lift restriction on sacking of workers and
payment of compensation in special investment regions, NIMZ and some other economic zones.
The bill was criticised as anti-labour and pro-industries.

1.16. SUPRERME COURT VERDICT ON HARYANA PANCHAYATI RAJ


(AMENDMENT) ACT 2015
Why in news?
Recently Supreme Court upheld Haryana law on panchayat elections, by dismissing plea challenging Haryana
Panchayati Raj (Amendment) Act, 2015.

16

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Haryana Government Law on Panchayat Election

In August 2015 Haryana government


Few Facts
cleared five amendments to the
Haryana Panchayati Raj Act, 1994.
9.6 million People will be eligible to contest the elections
Amendments laid down eligibility
to various panchayats in the state even after applying the
criteria to contest local body
amended qualifications.
elections.
The census data of 2011 showed that Haryana had a
It set minimum educational
literacy rate of 76.6%, with female literacy at 66.8%.
qualifications, having a functional
According to the census, 31.4% of households in the state
toilet at home, not having defaulted
do not have access to toilets as opposed to the national
in cooperative loans or having
average of 53.1%.
outstanding dues on rural domestic
57% of the rural population who are over the age of 20
electricity connections and
years will still be eligible to contest elections in spite of
Not charged by a court for a grave
the minimum education qualification.
criminal offence as criteria to be
eligible to contest local body
elections.
These are in addition to insolvency and being of unsound mind, disqualifications that are specified in the
Constitution.
The law fixes matriculation as the essential qualification for general candidates and Class VIII for
women in the general category as well as scheduled caste candidates.

Supreme Courts Observation

If people still do not have a toilet, it is not because of their poverty but because of their lacking the
requisite will-taking into consideration various policies of the Haryana government to improve sanitation
in the state.
It is only education which gives a human being the power to discriminate between right and wrong, good
and bad and upheld the imposition of specific educational qualifications.
Under Articles 40 and 246(3), the Constitution grants powers to the states to make laws to enable the
functioning of self-government units.

Criticism:

More ground reforms are needed before such a law is implemented.


Wisdom plays a greater role than education at local governance level, especially villages. Even in toilet
construction, the problematic area is governance.
Amendment is discriminatory and criteria are arbitrary.

1.17. KATOCH COMMITTEE REPORT


Why in news?
Recently Union Chemicals and Fertilizers Ministry announced that
there will be a separate ministry for pharma and medical devices
sector in the next one year. Ministry also ensured that government
will implement Katoch panel recommendations to cut bulk drug
imports from China.

17

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Bulk drugs or Active Pharmaceutical


Ingredients (API) are the active raw
materials used in a drug that gives it the
therapeutic effect.

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Issues:

India currently meets about 80 per cent of its demand of bulk drugs or active pharmaceutical ingredients
(API), used as raw materials by the pharmaceutical industry, from Chinese imports.
Inverted duty structure hampering the pharma and medical devices industries
Interest rates is a major issue- In China the interest rate on loan is just 5% while in India it is above 12%

Salient features of the recommendations of the Katoch committee on Active Pharmaceuticals Ingredients
(APIs):

Establishment of Large Manufacturing Zones (LMZs)/ Mega Parks for APIs with common facilities at a
concessional rate or free of cost maintained by a separate Special Purpose Vehicle (SPV).
Mega Parks need to be provided with common facilities such common Effluent Treatment Plants (ETPs),
Testing facilities, Assured power supply, Common Utilities/Services such as storage, testing laboratories,
IPR management etc.
Large manufacturing zones could be set up in National Manufacturing Investment Zones/ petroleum,
Chemicals and Petrochemical Investment Regions (PCPIRs) in states that have the requisite
facilities/system in place.
The bulk drug industry is one of the major polluting industries so it is necessary to have proper rules and
regulations to check on the pollution level and the quality of output.
There is an urgent need to start few large API intermediate clusters to transform the nation as one such
cluster can bring around one billion dollar per year.
Single window clearance and fiscal and Financial incentives such as tax breaks, soft loans etc should be
made available.

1.18. DELHIS JAN LOKPAL BILL


The Delhi Janlokpal Bill, 2015, was recently passed by Delhi legislative assembly with 64 votes.
The Jan Lokpal Bill (also known as the Citizen's Ombudsman Bill) is an anti-corruption bill drafted by civil society
activists seeking the appointment of a Jan Lokpal, an independent body which would be able to investigate
corruption cases, even in case of bureaucrats.
Features of the bill:

o
o
o
o
o

It covers all Govt. employees, from the Chief minister to Group D officers.
It provides legal right of protection to whistle-blowers and witnesses.
It envisages time bound investigation & trial in corruption cases.
If beneficiary of offense is business entity, in addition to punishment provided under this law,
those found guilty will have to pay fine 5 times the loss.
The Lokpal Chairperson & panel members will be selected by a panel comprising of
The Chief Minister,
Leader of the opposition in the assembly,
Two judges of the High Court (selected in a full court meeting),
One previous Lokayukta and
Two eminent citizens to be selected by other members of the selection committee

Concerns with the bill:

18

No independent budget.
Not empowered to appoint its own staff, and will have to work with the staff provided to it by the
government.
The bill does not provide the Janlokpal a dedicated investigation wing.
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The bill expects the full court of the Delhi High Court to select a judge to be a member of the selection
committee. This is unprecedented. Usually the chief justice nominates a member. It is uncertain whether
the full high court would agree to this.
The legislation provides no workable solution by way of a casting vote to resolve an impasse if the
initial four-member committee is tied.
The bill empowers the Janlokpal to inquire into or investigate any allegation of corruption occurring in
the National Capital Territory of Delhi, including those against public servants of the Central government
and its authorities, judges, military personnel, and other such.
But Article 239AA of the Constitution states that if there is conflict or inconsistency between an act
passed by the Delhi Assembly and Parliament, the national act will prevail, unless the Delhi law has the
approval of the President. Therefore, it seems very likely that the Janlokpal bill will potentially get caught
up in legal tussles with the Central government.
False complaint under this legislation, shall be punished with rigorous imprisonment.
Section 5(6) in the bill, allows a member or even the chairperson of the Janlokpal to be eligible for
reappointment for an additional term.

(General Studies Paper II, 2013)


Q. A national Lokpal, however strong it may be, cannot resolve the problems of immorality in public affairs.
Discuss. (200 words).
Q. What are the distinctive features of the Lokpal Bill introduced in the Parliament this year? (Q.12 (a), 125
words, 2003)
Q. Write short note on The Lokpal Bill (125 words). (Q. 12(c), 2007)

1.19. UNDERGROUND COAL GASIFICATION (UCG)


Why in news?

The Union Cabinet recently approved a policy framework for development of Underground Coal
Gasification (UCG) in coal and lignite bearing areas in the country.
The policy is on the lines broadly similar to the existing policy for Coal Bed Methane (CBM) development
on revenue sharing basis will be adopted for offering the blocks through competitive bidding.

Underground coal gasification:

Underground Coal Gasification (UCG) is an alternative method of converting deep coal into gas using a
series of boreholes operated remotely from the surface.
Air or a combination of oxygen and steam are injected into the gasification panel within the coal seam.
The coal is then heated and controlled reactions convert solid coal into product gas, known as syngas,
which is extracted at the surface.
The syngas is mixture of hydrogen, carbon monoxide, methane, CO2 and higher hydrocarbons.

Benefits of Underground coal gasification:

19

Syngas can be directly supplied to end- user, reducing the need of rail/road infrastructure.
Lowers emissions, because gasification in UCG is underground thereby reducing environmental
management costs.
UCG may not require an external water source to operate, a major environmental advantage over waterintensive coal mining.

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UCG process creates an immense underground gas and heat storage capacity, which makes the gas
supply very stable and robust.

Need of Underground coal gasification in India:

20

India has the 4th largest coal reserves in the world and ranks 3rd in coal production. The total
recoverable reserves of coal are only about 15.6 % (41.28 billion tonnes) leaving a large quantity
(~223.26 billion tonnes) of un-mineable coal reserve.
Out of the 38.93 billion tons of lignite, only about 5.49 billion tonnes are regarded as "mineable leaving
a large chunk of (33.44 billion tonnes) of un-mineable lignite reserve.
It is therefore prudent to find ways and means to exploit these unrecoverable Coal and Lignite reserves
of 256.69 billion tones to meet part of the ever increasing energy demand of the country.

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2. INTERNATIONAL RELATIONS
2.1. INDIA-JAPAN RELATION
Why in news?
India-Japan Economic and Commercial Cooperation

Mr. Shinzo Abe, Prime Minister of Japan,


visited India from 11 to 13 December.
Japan has always been a significant
economic partner of India, but not a
strategic one. Now, both on the economic
and strategic fronts, the India-Japan
relationship is being transformed.

Important Outcomes
1. Nuclear agreement signed:

Japan and India reached broad agreement


on civil nuclear cooperation after five
years of wrangling.
This will clear the way for American
firms which source key equipment in
Japan to sell nuclear reactors to India.
Commerce aside, this agreement is also
symbolically important because Japan was
one of India's most vocal critics after New
Delhi's 1998 nuclear tests.
This is part of India's decade-long process
of progressive nuclear rehabilitation.

2. Defense and Security relationship

21

New linkages between the Indian and


Japanese air forces and coast guards.
Indian training for Japan's counterterrorism capabilities.
Agreements to share classified military
information.
Transfer of Defense Equipment and
Technology.
India's decision to invite Japan as a 'formal
partner' to the US-India Malabar naval
exercises.
This will passively balance Chinese power.
This will complement other initiatives of
India like US-India-Japan trilateral at the
foreign minister level in October and a
US-India-Australia trilateral at a slightly
lower level in June.

Complementarities between the two countries


o Japans ageing population (23% above 65 years)
and Indias youthful dynamism (over 50% below 25
years);
o Indias rich natural and human resources and
Japans advanced technology;
o Indias prowess in services and Japans excellence
in manufacturing;
o Japans surplus capital for investments and Indias
large and growing markets and the middle class.
The
signing
of
the
historic
India-Japan
Comprehensive Economic Partnership Agreement
(CEPA) and its implementation from August 2011 is
expected to further accelerate growth of trade,
economic and commercial relations between the two
countries.
Japan has been extending bilateral loan and grant
assistance to India since 1958. Japan is the largest
bilateral donor to India. Japanese ODA supports
Indias efforts for accelerated economic development
particularly in priority areas like power,
transportation, environmental projects and projects
related to basic human needs. For example
o New Delhi metro network.
o The Western Dedicated Freight Corridor (DFC),
o the Delhi-Mumbai Industrial Corridor with eight
new industrial townships,
o the Chennai-Bengaluru Industrial Corridor (CBIC)
o Indias primary exports to Japan have been
petroleum products, chemicals, elements,
compounds, non-metallic mineral ware, fish &
fish preparations, metalliferous ores & scrap,
clothing & accessories, iron & steel products,
textile yarn, fabrics and machinery etc.
Japanese FDI into India grew exponentially from US$
139 million in 2004 to all time high of US$ 5551
million in 2008. Currently FDI from Japan to India was
US$ 1.7 billion during January-December 2014.
Japanese FDI has mainly been in automobile,
electrical equipment, telecommunications, chemical
and pharmaceutical sectors.
The number of Japanese affiliated companies in India
has grown significantly over the years

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3. Trade and Investment:

Japan will create a $12bn-facility to support Japanese companies investing in India to further our Make
in India objective
As part of the broader Japanese support for Indian infrastructure, memorandum of cooperation on the
hi-speed Shinkansen rail system between Mumbai and Ahmedabad to be financed with a highly
concessional yen loan has been signed.
13 big infrastructure projects to be financed by ODA loans such as Metro projects both in Chennai and
Ahmedabad and road network connectivity in our Northeastern states.

4. India and Japan signed a Protocol for amending the existing Convention for the avoidance of double
taxation and for the prevention of fiscal evasion with respect to taxes on income which was signed in 1989.
The protocol provides for

Internationally accepted standards for effective exchange of information on tax matters including bank
information and information without domestic tax interest.
The information received from Japan in respect of a resident of India can be shared with other law
enforcement agencies with authorisation of the competent authority of Japan and vice versa.
Both India and Japan shall provide assistance to each other in the collection of revenue claims.
Exemption of interest income from taxation in the source country with respect to debt-claims insured by
the Government/Government owned financial institutions.

Way forward:

India's Act East policy of which the India-Japan relationship is a core strand is important not just for
boosting investment but also signaling to China.
It is also to strengthen India's voice in regional debates, whether on economic or security issues, such
that India will be in a position to shape emerging economic and security architectures as they form,
rather than accommodate to them afterwards.
As a recent RAND study noted, 'Southeast Asia sees India primarily as a security partner, while India
primarily sees Southeast Asia as a trade partner'. The more that India accepts the garb of security
partner, the more pivotal its role in Asia and its voice in debates.

2.2. INDO-RUSSIA RELATION


In news:

On 24th December 2015, Prime Minister Narendra Modi and Russian President Vladimir Putin on
Thursday signed 16 agreements.
Annual Summit meeting between the Prime Minister of India and the President of the Russian
Federation is the highest institutionalized dialogue mechanism under the Strategic Partnership between
India and the Russian Federation.
Indian PM has put on the fast-track the Druzhba-Dosti (friendship) vision that he signed with Putin in
Delhi last year to strengthen and expand bilateral relations by the next decade.

Agreements include:

22

Manufacture of Russian Kamov 226 helicopters in India,


An accord for cooperation in the field of helicopter engineering,
Making Russian-designed nuclear reactors in India,
Technical cooperation in the railway sector,
Construction of solar energy plants in India
Exploration and production of oil in Russia.
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Importance of these agreements for India:

The agreements signed in Russia will provide a significant boost to the Make in India and solar mission
programmes.
Agreement on manufacture of Kamov 226 helicopters in India is the first project for a major defence
platform so these would boost defence manufacturing in India and Indias defence readiness with nextgeneration equipment which ultimately helps in Make in India project.

Background

Russia is "all-weather friend" of India.


o The Russians have given us unwavering support on Kashmir.
o They backed us when we did our nuclear tests.
o They stood by us during Kargil war.
o They helped us with our nuclear power plants and submarine projects and in the defence sector.
o India too has steadfastly backed Russia.
o We didn't decry Russia's Afghan invasion of 1979, we didn't join the chorus when it annexed Crimea
last year, and we tacitly support its current involvement in Syria.

Concerns in relations

India a growing strategic relationship with the US after the path-breaking civilian nuclear deal.
Russia under a resurgent Vladimir Putin challenged the US and Europe, and in doing so, cosied up to
India's arch Asian rival China and even flirted with Pakistan.
Distance between two nations.

Convergence of interests
Both India and Russia have now realized that in their quest for global power status, it is imperative that they
restore the climate of intimate friendship.
Russia needs India as:

A market for its goods to bypass Western sanctions imposed after its power push in Ukraine.
The forthcoming Transatlantic Trade and Investment partnership driven by the US will also force Russia
to eye markets beyond Europe. India is a natural partner.
Despite its renewed friendship with China, Russia will soon find itself in competition with it as Beijing
regards itself as the new G2 along with the US.
India can help provide the multi-polarity that Russia fiercely seeks.

India needs Russia because:

It can meet its abundant energy requirements at a cost-effective price.


Despite expanding its defence purchases from the US, Israel and Europe, India still needs to collaborate
with Russia to master future technology including for space.
It improves India's bargaining power when it negotiates arms sales with the West.
Russia can be a major market for Indian industry such as pharmaceuticals, manufactured goods, dairy
products, bovine meat and frozen seafood.
Geopolitically, Russia continues to be a balancing force against any designs China and Pakistan may have
in our region.

Future perspective

23

The bilateral trade target of $30 billion they set for 2025. Currently it hovers around $10 billion and to
achieve a three-fold increase in trade is a tall ask.

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While defence cooperation has moved from simple buyer-seller to one of joint research, development
and production of advance technologies, these projects need to be executed swiftly. Particularly the
projects on the fifth generation aircraft and air transport programmes and the new tie-up to
manufacture helicopters in India.
Indian investment in Russia now totals $7 billion and comes mainly from the oil and gas sector. ONGCVidesh has a 20 per cent stake in Sakhalin-1 and acquired Imperial Energy Tomsk, which has oilproducing assets. Russia's Gazprom and GAIL signed a 20-year contract to supply LNG. And Rosneft has
tied up with Essar for long-term supply of crude oil and feed stocks. Meanwhile, Tata has plans to set up
an assembly line for mini lorries and buses.
In pharmaceuticals, the Sun Group, Ranbaxy and Lupin are expanding their operations in Russia.
There is tremendous potential in diamond, fertilisers and food sectors that needs to be exploited by
India Inc.
Russia too needs to step up its investments in India which currently stands around $3 billion. Sistema,
the Russian telecom giant, ran into trouble with its joint venture in India, Shyam Sistema Telelinks, when
it lost 21 of its 22 licences in India after a Supreme Court ruling in the 2G spectrum case.
Major opportunities are opening up for Russian companies in India to invest in Modi's 'Make in India'
initiative in sectors such as defence equipment, civil aviation and in railways.
India on its part has to learn to absorb Russian technology and reduce bureaucratic hurdles.

2.3. AFGHANISATAN JOINS WTO

WTO in its 10th ministerial conference in Nairobi from 15th to 19th December 2015, formally approved
Afghanistans WTO membership. Afghanistan has applied for WTO membership in 2004.
Afghanistan has become the 164th WTO member and the 36th least developed country (LDC) to join the
global trade body.
With the help of WTO Afghanistan can create business friendly environment and can attract many big
MNCs, countries for trade.

Significance:

24

For the first time Afghanistan will be experiencing integration into international economy and market, be
benefited of a fair, free and non- discriminatory international trade within the framework of the WTO
and thus gain sustainable development to the great extent.
Afghan goods and services will be recognized and awarded most favored nation treatment by the
international market, bodies and fellow Members.
All the like products and services of Afghanistan will be awarded immediate and unconditional
advantage, favour, privilege or immunity that has been already awarded to the like products and
services of the other WTO Members.
For example, recently government of Pakistan increased custom duties thrice of what it used to be on
Afghanistan fruits being exported to Pakistan, which caused great loss to Afghan traders. Had
Afghanistan been Member of the WTO, government of Pakistan would have been under obligation to
treat Afghanistan fruits equally as those of other exporting Member countries.
Quality improvement and standardization which is equally beneficial to both consumers and producers.
Through WTO membership Afghanistan will be enabled to attract foreign direct investment in various
sectors which will increase job opportunities, transfer technology among and from the Members, and
decrease trade negotiation costs.
Afghanistan as a least-developed country will be entitled to the preferential treatments under the WTO
law from WTO Members in terms of Special and Differential Treatment provisions enshrined within the
WTO agreements.
Will help in stabilizing war-torn Afghanistan. Will help in reducing spread of terrorism and radicalization.
It will have cascading effect on stability of Middle East.
To succeed, political and economic stability and commitment is must.
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2.4. INDIA- AFGHANISTAN


Recently Prime Minister Narendra Modi inaugurated the new building of Afghanistan Parliament built by India in
the capital city Kabul.

The Parliament building project, initially conceived to cost 45 million, was started by India in 2007 as a
mark of friendship and cooperation to help rebuild Afghanistan.
India is also spending $300 million on the Salma Dam project, which has been re-christened Afghan-India
Friendship Dam.
Salma Dam and the Parliament projects are seen as examples of India's commitment to the peaceful
development of war-ravaged Afghanistan.
India also donated three Mi-25 attack helicopters (with an option to send one more in future) to
Afghanistan as part of the bilateral strategic partnership to counter the Taliban.

2.5. INDIA-PAKISTAN RELATION

Indian PM Modi. On 25th December 2015 visited Pakistan to give best wishes to Nawaj Sharif (Pakistan
PM) on his birthday.
The seemingly spontaneous personal gesture from Indian PM, on his way back from Afghanistan, has
infused a sense of optimism into the positive initiative process that the two countries had only recently
initiated.
After this visit Prime Minister Nawaz Sharif on 30th December 2015, expressed his views that it is "high
time" India and Pakistan set aside their hostilities and expressed confidence that the of goodwill
generated by his Indian counterpart Narendra Modi's visit to Lahore will persist.

UPSC Mains 2015


Q. Terrorist activities and mutual distrust have clouded India-Pakistan relations. To what extent the use of
soft power like sports and cultural exchanges could help generate goodwill between the two countries?
Discuss with suitable examples.

2.6. ISLAMIC MILITARY ALLIANCE

Launched by Saudi Arabia recently to Fight Terrorism.


It is an intergovernmental military alliance of 34 countries in the Muslim world united around military
intervention against ISIL and other counter-terrorist activities.
The new counterterrorism coalition includes nations with large and established armies such as Pakistan,
Turkey and Egypt as well as war-torn countries with embattled militaries such as Libya and Yemen.
African nations that have suffered militant attacks such as Mali, Chad, Somalia and Nigeria are also
members.
The organization is based at a joint command centre in Riyadh, Saudi Arabia.
In many ways, this alliance seems designed to calm Western critics who have frequently complained that
the Muslim world isn't doing enough to combat terrorism and extremism.

Issues with the Alliance:

25

Some of the most important Muslim countries in the world, including Iran, Iraq, Afghanistan and
Indonesia, are not part of the alliance. The exclusion of Shiite nations in an alliance designed to

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represent the Islamic world seems to reinforce the belief that Saudi Arabia's alliance is motivated by a
sectarian rivalry with Iran and not terrorism.
It is not entirely clear what tasks the new alliance would undertake.

2.7. INDIA AND SEYCHELLES


A plot of land for India to build its first naval base in the Indian Ocean region has been allocated by the
Seychelles government in the Assumption Island.

This will be a joint project between India and Seychelles.


The project has acquired significance following China acquiring its first African naval base in Djibouti in
November.
Once ready, the naval base will help India exercise greater control over the Indian Oceans western
region all the way to the piracy-prone eastern African coastline.
The base will be one of the major staging posts for a large maritime security network that India is setting
up with the help of the various Indian Ocean region partner countries.
Apart from the naval base, India is set to acquire a fully operational coastal radar system (CRS) based in
Seychelles from March 2016. The CRS will provide India with the ability to gather intelligence and assist
in surveillance operations of the vital energy lanes near Seychelles.
Security operation in the Indian Ocean region will also be helped by the leadership role that Seychelles
has secured for itself in the Contact Group for Piracy off the Coast of Somalia (CGPCS), which will hold its
first meeting in Mumbai on January 31, 2016.
India had earlier gifted a naval ship, INS Tarasa and a Dornier-228 maritime reconnaissance aircraft, to
Seychelles to augment its surveillance and patrolling capacity of Seychelles.

2.8. INDIA-ISRAEL RELATION


In news:
On 3rd December 2015, Indian government has given approval on Memorandum of Understanding (MoU)
between India and Israel in the field of water resources management and development cooperation.
Benefits:
The bilateral cooperation will benefit both the countries in strengthening the techniques in efficient use of
water, micro-irrigation, recycling/re-use of waste water, desalination, aquifer recharge and in-situ water
conservation techniques. A Joint Working Group shall be formed to monitor the activities to be carried out in
fulfilment of the MoU.

2.9. FORUM ON CHINA-AFRICA COOPERATION (FOCAC)


African continent is increasingly becoming the next theatre of global attraction and competition because of
natural resources, demography and socio-economic development. To harness the opportunity various countries
including China have made huge investments in the continent.
In news:
The Johannesburg Summit and the 6th Ministerial Conference of the Forum on China-Africa Cooperation
(FOCAC) were held in Johannesburg from 3 to 5 December 2015.
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About the FOCAC 2015:

It is an official forum which has greatly boosted the political influence of China-Africa relationship and
served as an important driver for China-Africa practical cooperation in various areas.
There have been five summits held to date, with the last meeting occurred from July 19-20, 2012 in
Beijing, China.
FOCAC had become both a key platform for collective dialogue between China and African countries,
and an effective mechanism for practical cooperation.
The next FOCAC at the Ministerial level will be held in China in 2018.
It assumed importance for China as India organized India-Africa summit with a wide participation to
boost India-Africa relations.

Significance

It is only the second time (the first being in 2006) that it has been held at the Summit level. Ever since its
establishment, FOCAC dialogue has been at the ministerial level.
The Summit was well attended with the participation of almost 50 African Heads of State/ Government.
The two-day Summit ended with the issue of the Johannesburg Declaration and an Action Plan.
An impressive financial assistance package of $ 60 billion was announced by President Xi. With the
theme of Africa-China Progressing together: Win-win cooperation, the event addressed all the major
aspects of China- Africa relations.
The package covers ten cooperative projects in various sectors.

Changed context:

Given the slow-down in the Chinese economy and related problems, the quantum of the financial
package surprised many. China is to move away from investment and manufacture led growth to one
driven by consumption. All this notwithstanding, China is not short of funds to promote cooperation
with Africa.
On the African side also, there is a new scenario. With reduced demand from China for resources and
the general fall in commodities prices many African nations dependent on them are facing the heat
leading to decreased export earnings and the consequent budgetary problems.

More than a pure economic agenda

27

There are political and strategic interests involved. These aspects are clearly mentioned in the
Johannesburg Declaration with emphasis on non-interference in internal affairs and rejection of use or
threat of force and rejecting attempts to misrepresent the results of the second World War .The most
significant is the reference to respect for each others core interests.
A major strategic outcome of the Summit was to upgrade the new type of Strategic Partnership
established in 2006 to a Comprehensive Strategic and Cooperative Partnership.
Today, China has the largest number of peace-keepers in Africa among the P-5 countries.

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3. ECONOMY
3.1. INSOLVENCY AND BANKRUPTCY CODE, 2015
The Bankruptcy Law Reforms Committee (BLRC), set up by the finance ministry, recently submitted its report
with a draft Bill called the Insolvency and Bankruptcy Code (IBC).
The objective of the code is reducing the delay in resolution of insolvency or bankruptcy cases and improving
recoveries of the amount lent. Thereby facilitating the efficient flow of capital across the economy.
Need
Today, bankruptcy proceedings in India are governed by multiple laws the Companies Act, SARFAESI Act, Sick
Industrial Companies Act, and so on. The entire process causes a lot of delay thus locking capital for a long
period.
Salient Features of the law:
1. A unified code for greater legal clarity.
2. Fixed a timeline of 180 days, extendable by another 90 days, to resolve cases of insolvency or
bankruptcy.
3. A new regulator the Insolvency and Bankruptcy Board of India (IBBI) to regulate
professionals/agencies dealing with insolvency and informational utilities.
4. Bill proposes for information utilities and an individual insolvency database.
5. Setting up of a specialized Bench at the National Company Law Tribunal (NCLT) to adjudicate bankruptcy
cases over companies, limited liability entities. Appeals from the order of NCLT shall lie to the National
Company Law Appellate Tribunal (NCLAT).
6. Debt Recovery Tribunal (DRT) shall be the Adjudicating Authority with jurisdiction over individuals and
unlimited liability partnership firms. Appeals from the order of DRT shall lie to the Debt Recovery
Appellate Tribunal (DRAT).
7. The code allows the corporate debtor itself to initiate the insolvency-resolution process once it has
defaulted on a debt.
8. Prioritization of claims by different classes of creditors
Areas that need refinement/
improvement in the proposed
framework

28

Credit Committee composition:


Currently, credit committee to
comprise of only financial
creditors. However, operation
creditors to be paid out first.
This may lead to conflict
between the two creditor
classes.
New financial arrangement: If
business is found to be viable,
possibility of a new financial
arrangement
between
the
debtor and the creditor is
envisaged in the code. However,
the contours of the new
arrangement with the lenders
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and treatment of the new finance arrangement from asset classification and provisioning perspective
can be clarified.
Waterfall priority: Central and state government liabilities will be placed below creditors claims to
ensure lender confidence continues. It may be clarified if this means that employee PF liabilities will get
a lower priority. This is important to understand as it directly affects the employee compensation and
welfare. Also, one may need to assess if this, potentially, would lead to huge write-offs by statutory
bodies.
Two-year history: For ascertaining malfeasance, only two years of history to be checked for diversion.
Earlier history should also be taken into account.
Promoter buyback: Promoters have the option to buy back the company at a certain price, with a
certain debt restructuring. This has to be contemplated further to avoid the bankruptcy tool from
becoming an instrument to be exploited to reduce debt and increase equity value going forward.

3.2. FINANCIAL STABILITY REPORT (BI-ANNUALLY PUBLISHED BY RBI)


The highlights of twelfth issue of FSR are:
Corporate Sector:
1. Nearly a fifth of all listed companies have levels of debt in excess of what is considered prudent.
2. The increasing risks to the Indian banking sector.
Bank asset quality:
1. NPA have risen to 5.1% (from 4.6%) between March and September 2015.
2. Stressed assets (NPA and restructured loans) PSB @14%, private banks @4.6% and foregn banks
@3.4%.
3. High dividends by PSB amidst reducing profitability is questioned in the report.
A. Reasons for rising NPAs are:
Global financial crisis.
Sluggish growth
The manner in which PSB boards are run (also highlighted by P J Nayak Committee)
Way Ahead:
Implementation of Indradhanush, a seven-point action plan, to reform the regulatory framework.
Real structural reform, like diluting the governments stake in PSBs to below 51 per cent and letting
them function more freely.

3.3. VIJAY KELKAR COMMITTEE


INFRASTRUCTURE DEVELOPMENT

REPORT

ON

REVIEW

OF

PPP

The Kelkar committee was setup by Finance minister in line with announcement made in budget 2015-16 to
revamp and Revitalise PPP model of development.
The Key Recommendations:
1. Setting up independent regulators to address stalled infrastructure projects of various sectors
2. Amendment to the Prevention of Corruption Act to clarify the difference between cases of graft and
genuine errors in decision-making
3. Easier funding and Promotion of zero coupon bonds by Governments, Banks and Financial institutions.

To ensure viability of PPP projects with long gestation periods. For ex. In development of airports,
ports and railways.
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Will help to achieve soft lending for user charges in infrastructure sector
Building up of risk assessment and appraisal
capabilities by banks and

Provision for monetisation of viable projects


that have stable revenue flows after
engineering, procurement and construction
delivery.
4. Endorsement of the 3PI

They can function as a centre of excellence,


enable research, and review and roll out
activities to build capacity
5. Focus on service delivery instead of fiscal benefits
for better identification and allocations of risks
between the stakeholders and contracts for the
PPP projects.
6. Setting up of an Infrastructure PPP Project Review
Committee (IPRC)

Aim-To deal with the problems being faced by


such projects

Composition - one expert each from


economics background and one or more
sectoral experts preferably engineers and legal
experts.

Mandate- To evaluate and send its recommendations in a time-bound manner upon a reference
being made of "actionable stress" in any infrastructure project developed in PPP mode beyond a
notified threshold value
7. Infrastructure PPP Adjudication Tribunal (IPAT)

To be chaired by a former Supreme Court Judge or former High Court Chief Justice,

Proposed at least one technical and financial member


8. Adoption of the model concession agreements (MCA) for

Proper assessment of managing risk

Renegotiation framework in the bid document itself

MCAs for each sector be reviewed to capture the interests of all participating stakeholders users,
project proponents, concessionaires, lenders and markets
9. Sector specific recommendations

Airports: Government should encourage the PPP model in greenfield as well as brownfield projects

Railways: An independent tariff regulatory authority to help Railways to tap PPP opportunities

Roads: Increase concession period for BOT projects

Power: Not many power projects are under PPP. Need to address power sector finances as they are
hurting bank loan.

Ports: Move from pre-TAMP (tariff authority for major ports) to current-TAMP
10. Change in attitudes and mindsets the authorities. E.g.

Public agencies partnering the private sector,

Government departments supervising the PPPs,

Auditing and legislative institutions providing oversight of the PPPs


11. PPP model not viable in very small projects

The committee advised against adopting PPP structures for very small projects, since the benefits
of delivering small PPP projects may not be commensurate with the resulting costs and the
complexity of managing such partnerships over a long period.
12. Issue of Swiss Challenges
Unsolicited Proposals (Swiss Challenge) may be actively discouraged as they bring information
asymmetries into the procurement process and

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Result in lack of transparency and fair and equal treatment of potential bidders in the procurement
process.

Way forward

PPPs in infrastructure represent a valuable instrument to speed up infrastructure development in India.


This speeding up is urgently required for India to grow rapidly and generate a demographic dividend for
itself and also to tap into the large pool of pension and institutional funds from aging populations in the
developed countries.
Needs a renegotiation commission, which can oversee the renegotiation of model concession
agreements across sectors
We also have to see how 3P India can be made into an umbrella body for PPP projects at central and
state level.

3.4. ARVIND SUBRAMANIAN COMMITTEE REPORT ON GOODS AND


SERVICES TAX (GST)

Removal of 1% levy on inter-state movement,


The standard GST rate in the range of 17-18 per cent. .
Revenue neutral rate (RNR) of GST at 15-15.5 per cent.
Three-tier GST rate structure
1. Essential goods will be taxed at a lower rate of 12 per cent
2. Demerit goods such as luxury cars, aerated beverages, pan masala and tobacco products will be
taxed at 40 percent
3.
Remaining all goods will be taxed at a standard rate of 17 to 18 per cent.

Decoding Key Terms of Recommendations


The standard rate- The rate at which
most goods will be taxed is more than RNR
because some goods that are in the nature
of public goods or targeted at deprived
sections will need to be taxed at the lower
rate. This rate is most likely to apply on most
goods and services under the new indirect
tax regime
The revenue neutral Rate - At which if all
goods and services are taxed there will not
be any revenue loss for both states and the
Centre.
Why Standard rate is more than Revenue
Neutral rate
The standard rate is more than the
revenue neutral rate because some goods
that are in the nature of public goods or
targeted at deprived sections will need to
be taxed at the lower rate.
There will be a demerit good rate that is
higher than the standard rate that will apply
to goods such as tobacco, the use of which
needs to be discourage

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Exceptions:
Excluded real estate, electricity and alcohol and petroleum products while calculating tax rates
Way Forward:

The aim should be to create a GST with the widest possible base
For Success of GST we have to address the issue of improving the billing culture in the country. Without
addressing the question, the transformation effect will not be fully realised
Getting the design of the GST right is critical. Specifically, the GST should aim at tax rates that protect
revenue, simplify administration, encourage compliance, avoid adding to inflationary pressures, and
keep India in the range of countries with reasonable levels of indirect taxes.

3.5. IRDAI TO LIBERALISE NORMS FOR TRADE CREDIT INSURANCE

Insurance Regulatory and Development Authority of India (IRDAI)


have decided to liberalize norms for trade credit insurance
The changes is done in order to give a fillip to the credit insurance
market, it is necessary to revisit the existing guidelines which
regulate the credit insurance market in India.
IRDAI is seeking to give a fillip, especially to micro, small, medium
enterprise (MSME) sector, wherein the need for trade credit has
enhanced the scope for the credit insurance sector manifold.
IRDAI proposed to allow issuance of trade credit insurance policy
to RBI registered entities, for conducting factoring business in line
with The Factoring Act, 2011.
This cover shall be restricted to short-term financing against
receivables, representing supply of goods, materials and services

What is trade credit insurance?


Trade credit insurance is an
insurance policy offered by
private insurance companies
and governmental export credit
agencies to business entities
wishing to protect their
accounts receivable from loss
due to credit risks such as
protracted default, insolvency or
bankruptcy.

How new draft policy is different from earlier one?

Trade credit policy may be made to banks/NBFCs


As against the existing policy of net retention of the insurer for trade credit insurance of up to 2 per cent
of the net worth, IRDAI is proposing the same to be increased to up to 5 per cent
The proposed changes include an indemnity of not more than 85 per cent of the trade receivables in a
trade credit policy.
In the existing law, a policy holder normally cant be offered indemnity for more than 80 per cent of the
trade receivables from each buyer or 90 per cent of the cost incurred by seller for previous year,
whichever is lower
It also proposes that no trade credit insurance policy is allowed to cover reverse factoring and bill
discounting
These guidelines shall be applicable to all registered general insurance companies except Export Credit
Guarantee Corporation of India Limited

Way Ahead

32

Reform in credit norms was felt necessary to revisit the existing guidelines which regulate the credit
starved insurance market in India
It may give a fillip to the Credit starved insurance market

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3.6. WORLD BANK REPORT ENDING EXTREME POVERTY, SHARING


PROSPERITY: PROGRESS AND POLICIES

The World Bank has revised the global poverty line, previously pegged at $1.25 a day to $1.90 a day
(approximately Rs. 130)
This has been arrived at based on an average of the national poverty lines of 15 poorest economies of
the world.
The poverty lines were converted from local currency into U.S. dollars using the new 2011 Purchasing
Power Parity (PPP) data.
The latest headline estimate for 2012 based on the new data suggests that close to 900 million people
(12.8 per cent of the global population) lived in extreme poverty
With the Sustainable Development Goals adopted in September, seeking to end all forms of poverty
world over, the World Bank Group has set itself the target of bringing down the number of people living
in extreme poverty to less than 3 per cent of the world population by 2030

Indian Perspective

As per modified mixed reference period (MMRP) poverty in India in 2011-12 could be only 12.4.
Main takeaway is the claim that India has been overestimating its poverty rate.
The World Bank has used a new method for collecting data, called the modified mixed reference period,
or MMRP.
Though home to the largest number of poor in 2012, India's poverty rate is one of the lowest among
those countries with the largest number of poor
In the case of India, with large numbers of people clustered close to the poverty line, poverty estimates
are significantly different depending on the recall period in the survey

Rangrajan committee report on poverty vis--vis WB estimation of poverty

Poverty Rate

Poverty Line

Methodology
used

Indian Estimation
It was pegged as 29.5% by Rangrajan
Committee, 21.9 % Tendulkar
Committee report.
The poverty line (PL) used by the
Rangarajan committee for India was
around $2.44 per capita per day, in
terms of purchasing power parity
In India, there were two main ways of
collecting data: Uniform Reference
Period (URP) and Mixed Reference
Period (MRP)
The importance of the way in which
data is collected.

Reason
behind
Difference
Depth
of Depth of poverty in India is examined
poverty
in a different way - by looking at the
poverty ratios using different cut-offs
of the PL.
Dimensions
We have legacy of uni dimensional
of Poverty
approach on poverty estimations

33

WB report
The World Banks estimate is just 12.4 %

The World Bank has revised the global poverty line,


pegged at $1.90 a day in terms of PPP

WB used MMRP method. MMRP method believed


to provide a more accurate reflection of
consumption expenditures
The lower PL is the reason for the lower poverty
ratio estimated by the WB.
WB report talks about the depth of poverty in terms
of person-equivalent headcounts

WB report gave stress on importance of


understanding the many dimensions of poverty that
people experience.

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What is MMRP?

In this method, for some food items, instead of a 30-day recall, only a 7-day recall is collected.
For some low-frequency items, instead of a 30-day recall, a 1-year recall is collected
The low-frequency items include expenditure on health, education, clothing, durables etc

Way Forward

The World Banks new poverty rate estimate of 12.4% does not mean that Indians have suddenly
become richer. In fact, it is based on collection of data that determines the poverty rate
The bunching of poverty around the poverty line in India renders the problem of reducing poverty more
manageable.
The pace and pattern of growth have a significant impact on reducing poverty ratios but policymakers
must pursue a two-fold strategy of letting the economy grow fast and attacking poverty directly
through poverty alleviation programmes.
The MMRP-based estimate (currently at 12.4% for India) is expected to set the baseline for India and
global poverty estimates, going forward.

3.7. ETCD MARKET INTERVENTION BY RBI

The Reserve Bank of India has intended to intervene in the exchange-traded currency derivatives
(ETCD) market to defend the rupee
This measure, has been announced just before US FOMC (Federal Open Market Committee) decision
and purportedly CNY (Chinese yuan) devaluation fear, to avoid sharp depreciation of the INR (Indian
rupee) in the near future,
The ability to intervene in the exchange-traded market will help RBI prevent any speculation-driven
volatility in the rupee,
The Exchange Traded Currency Futures contract is an agreement to buy or sell the underlying Currency
on a specified date in the future and at a specified rate.
RBI usually intervenes in currency spot and currency forward markets to maintain stability in the foreign
exchange market.

3.8. RBIS REPORT ON FINANCIAL INCLUSION


Why in news?

Deepak Mohanty committee set up by the Reserve Bank of India (RBI) in July prepared a medium-term
measurable action plan for financial inclusion.
The committee found that while some indicators of inclusion have improved, a large number of people
remain reliant on informal channels such as money lenders.

Salient Recommendations of the Committee

34

Banks have to make special efforts to step up account opening for females, and the Government may
consider a deposit scheme for the girl child Sukanya Shiksha - as a welfare measure.
A unique biometric identifier such as Aadhaar should be linked to each individual credit account and
the information shared with credit information companies to enhance the stability of the credit system
and improve access. It can help to identify multiple loan accounts and prevent borrowers from becoming
over-indebted.
To improve last mile service delivery and to translate financial access into enhanced convenience and
usage, a low-cost solution should be developed by utilisation of the mobile banking facility for maximum
possible G2P payments.
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In order to increase formal credit supply to all agrarian segments, digitisation of land records backed by
Aadhar-linked mechanism is the way forward.
The committee recommended that short-term interest rate subvention, or subsidies, on crop loans be
phased out and replaced with a crop insurance scheme for small and marginal farmers.
The committee has recommended the use of application-based mobile phones as points of sale for
creating necessary infrastructure to support the large number of new accounts and cards issued under
the Jan Dhan Yojana.
It recommended a graded system of certification of business correspondents (BCs), from basic to
advanced training. BCs with a good track record and advanced training can be trusted with more
complex financial tasks such as credit products that go beyond deposit and remittance.
Allow banks to open specialized interest-free windows with simple products such as demand deposits.
Encourage multiple guarantee agencies to provide credit guarantees in niche areas for micro and small
enterprises (MSEs), and explore possibilities for counter guarantee and re-insurance.
Introduction of a system of unique identification for all MSME borrowers and sharing of such
information with credit bureaus.

3.9. DIGITIZATION OF PDS


Why in News?
Recently the Food ministry said that the digitization helped to clean up the back-end of the subsidized public
distribution system (PDS) and over 6 million bogus ration cards have been cancelled.
Why Digitization of PDS?

To better target subsidies and ensure leakage-free distribution of food grains, the government used
direct benefit transfer (DBT) and automated ration shops.
To successfully implement the National Food Security Act (NFSA), the central government has focused on
end-to-end computerization, which will bring transparency and check leakages and diversion of food
grains.
A committee on restructuring the Food Corporation of India suggested in its report submitted in January
that the government begin direct cash transfers of food subsidy because the existing delivery
mechanisms lead to a leakage of as much as 47%.
It estimated that cash transfers alone could save the exchequer Rs.30,000 crore every year.
Automation ensures food grains are distributed via ration shops through point-of-sale (PoS) devices that
authenticate beneficiaries and record the quantity of subsidized grains given to a family.

Impact

35

As a result of these efforts, 6.14 million bogus or duplicate ration cards have been cancelled in the past
two years, stopping the diversion and misuse of PDS food grains amounting to about Rs.4,200 crore.
So far, the beneficiary database has been digitized in 33 states and Union territories, while 17 states and
Union territories are being allocated food grains online.
States are using central assistance to install PoS devices in ration shops that are linked to the Aadhaar
unique identification numbers of beneficiaries
In nine states and Union territories, the entire supply chain has been computerized.
The linking of Aadhaar numbers with ration cards has gone up from 8% to 39% between April and
December.

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3.10. NATIONAL INVESTMENT AND INFRASTRUCTURE FUND


Objectives of NIIF

Why in News?
to maximize economic impact mainly through infrastructure
Recently the government set
development in commercially viable projects, both Greenfield and
up the Rs 40,000 Crore
Brownfield, including stalled projects
National Investment and
to attract investment from both domestic and international
Infrastructure Fund (NIIF).
sources
to increase investment flows into infrastructure projects
It is the major initiative of the present government to fix Indias infrastructure woes; it would serve as an
umbrella fund with several funds underneath it.

What is NIIF?
It is a fund created by the Government of
India for enhancing infrastructure financing
in the country.
The government has budgeted to
contribute Rs.20,000 crore to the fund in the
current fiscal year while another Rs.20,000
crore is expected to be raised through
sovereign wealth funds.
It is registered as a category II alternative
investment fund with the Securities and
Exchange Board of India.
A sort of sovereign fund, for development of
infrastructure projects, including the stalled
ones.
The NIIF will have a dual role of equity capital
infusion in projects and in getting the duediligence
done
for
investment
in
infrastructure projects.
Functions of NIIF

Fund raising through suitable instruments including off-shore credit enhanced bonds, and attracting
anchor investors to participate as partners in NIIF.
Servicing of the investors of NIIF.
Considering and approving candidate companies/institutions/ projects (including state entities) for
investments and periodic monitoring of investments.
Investing in the corpus created by Asset Management Companies (AMCs) for investing in private equity.
Preparing a shelf of infrastructure projects and providing advisory services.

Sources of fund for NIIF

36

Equity participation from strategic anchor partners. Government of India will contribute to establish it as
a sovereign fund and will attract overseas sovereign/quasi-sovereign/multilateral/bilateral investor to
co-invest in it.
Governments funds, each year to each entity set up as an Alternate Investment fund (AIF) for executing
its functions based on its annual plan, would be provided as required.
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International pension funds and sovereign wealth funds from countries such as Russia, Singapore and
the UAE have evinced interest in participating in India's Rs 40,000-crore National Investment and
Infrastructure Fund (NIIF).

Structure

The NIIF will be established as one or more Alternate Investment Funds (AIF) under the SEBI regulations.
The initial authorized corpus of NIIF would be Rs. 20,000 crore, which may be raised from time to time,
as decided by Ministry of Finance. Government can provide upto 20000 crore per annum into these
funds. Government's contribution/share in the corpus will be 49% in each entity set up as an alternate
Investment Fund (AIF) and will neither be increased beyond, nor allowed to fall below, 49%. The whole
of 49% would be contributed by Government directly. Rest is open for contribution from others.

Governance

The NIIF will be established as a trust/other legal entity from both the point of view of taxation and
flexibility.
There will be a Governing Council of the NIIF which will have Government representatives and experts in
international finance, eminent economists and infrastructure professionals. It could include
representatives from other non-Government shareholders.
The terms and period of appointment of the Governing Council of the NIIF will be as decided by the
Government.
NIIF would be supported by one or more Chief Executive Officers and a small investment team consisting
of limited number of expert staff.
NIIF would have full autonomy for project selection. NIIF would formulate guidelines and would follow
due processes for selection criteria for Asset Management Companies (AMCs) and Non-Banking Financial
Companies (NBFCs) / Financial Institutions (FIs).

3.11. NSSO REPORT ON LAND AND LICESTOCK HOLDINGS


The National Sample Survey Office (NSSO) conducted a survey on Land and Livestock Holdings in the rural areas
of the country as a part of NSS 70th Round during January, 2013 to December,
2013.
Operational holdings are
land that was used wholly
Key Findings of the Survey
or partly for agricultural
The NSSO figure is about 65 million hectares lower than the numbers
production. This includes
put out by the ninth agricultural census conducted in 2010-11.
land being used as kitchen
The report on land and livestock holdings estimates that around 95
garden
or
livestock
million hectares of land was classified as operational holdings in
growing, but leaves out
2012-13.
cooperative farming and
institutional ownership.
Household ownership of land- the total estimated area owned, and
average area owned per household has declined in 2012-2013 as
compared to 2002-03.
During the agriculture year July 2012- June 2013 rural India had an estimated total area of 92.3 million
hectares under household ownership of land and the average area owned per household was 0.592
hectares.
Within the rural households, the marginal land owners constituted the highest proportion (75.42%) of
total rural households, whereas the large land owners constituted the lowest proportion (0.24%) of the
total households. The landless category constituted 7.41% of the total rural households.

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Trends in cultivation pattern

The total number of operational holdings and the percentage of joint holdings have increased in 2012-13
as compared to 2002-03
The highest percentage of area was used for growing cereals in July,2012December,2012 (56.21%) and
January,2013 June,2013 (57.74%). The next major use of land was for production of oil seeds (13.75%
and 7.34%) and pulses (6.30% and 10.20%) in the two seasons respectively.
During the season July, 2012 December, 2012, the major States where land area was mostly affected
by flood included Andhra Pradesh (26%), Assam (23%), Bihar (17%) and West Bengal (13%).

Trends in Livestock Farming

Among the land used for animal farming (dairy, poultry, piggery, fishery and farming of other animals)
the major use of land was made in dairy (53.8% and 69.7%) in July, 2012 December, 2012 and January,
2013 June, 2013 respectively. In about, 18.7% and 11.8% of land area was used for fishery during the
two seasons.
The percentage of area used for all types of farming of animals is 0.97% in July, 2012 December, 2012
and 1.69 % during January, 2013 June, 2013.

Stock of Livestock/Poultry Birds holding in the country

The estimated number of bovine livestock has decreased during 70th round as compared to the previous
livestock survey.
There is a nominal increase in the number of sheep & goat and pig populations as compared to previous
survey.
Poultry population in the 70th round has increased almost 1.4 times the 59th round estimates.
The stock of cattle and buffalo of the country was estimated at 204 million during 2012-13. The
estimated population of sheep & goat during the period was about 99 million.

3.12. WTO NAIROBI TALKS

The WTOs Tenth Ministerial Conference was held in Nairobi, Kenya, from 15th to 19th December 2015.
It culminated in the adoption of the "Nairobi Package", a series of six Ministerial Decisions on
agriculture, cotton and issues related to least-developed countries (LDCs).

Agriculture

o
o

38

Special Safeguard Mechanism (SSM) for Developing Country Members- a mechanism that would allow
developing countries to temporarily raise import tariffs on agriculture products in cases of import surges
or price declines.
Public Stockholding for Food Security Purposes -used by some developing countries to purchase food at
administered prices and distribute it to poor people.
Export competition
The elimination of agricultural export subsidies, new rules for export credits, international food aid and
exporting state trading enterprises etc. Collectively, these issues are known as "export competition".
It would be particularly meaningful for farmers in poor countries who cannot afford to compete with rich
countries which artificially boost their exports through subsidization.
Cotton - On market access, the Nairobi draft proposal asks that cotton from least-developed countries
(LDCs) be given duty-free and quota-free access to the markets of developed countries and to those
of developing countries declaring that they are able to do so from 1 January 2016.

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Least-Developed Countries (LDCs) issues

Preferential Rules of Origin for Least Developed Countries - WTO agreements include provisions aimed
at increasing LDCs trade opportunities and allowing LDCs flexibility in implementing WTO rules.
Implementation of Preferential Treatment in Favour of Services and Service Suppliers of Least
Developed Countries and Increasing LDC Participation in Services Trade

Issues /Concerns

India and other developing countries feel only a few of their concerns have been addressed at the end
of 10th World Trade Organization ministerial conference.
A unanimous reaffirmation of the Doha Development Agenda (DDA) has not occurred.
The more contentious issues of public stockholding of food crops and special safeguard mechanism
(SSM) in agriculture have also not seen major progress.
The food security issue concerns several developing nations which provide subsidised food grains to
their poor.
Barring five countriesthe US, European Union (EU), Brazil, China and India, who negotiated among
themselves the final outcome based on their respective national intereststhe others were left guessing
about the outcome of the emerging world trade order.
Trade experts and NGOs have also said the Nairobi package has effectively killed the fundamental
objective of the WTOs Doha Round negotiations, which was to improve the trading prospects of the
developing and the poor world.

Key Takeaways

Decisions to end all farm export subsidies and liberalise global trade in information technology products.
Preferential treatment for least developed countries in the area of services
Measures related to cotton
A special safeguard mechanism for developing countries

Indias stand/ Point of view


The Nairobi declaration was
disappointing on multiple fronts
for India:
India failed in its objectives to
secure credible outcomes on
its demands for SSM,
permanent solution for public
stockholding programmes for
food security and the
reaffirmation to continue the
DDA negotiations.
India has returned with very
few, if any, of its demands
met.

3.13. REVISED PRIORITY SECTOR LENDING NORMS FOR RRBS


The Reserve Bank of India (RBI) has revised Priority Sector Lending (PSL) norms for Regional Rural Banks (RRBs).
As per these new norms, the PSL target has increased to 75 percent of total outstanding from the existing 60
percent. The revised target will be effective from 1 January 2016.
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Other significant revisions in the PSL norms are:

Upping of the limit on loans to individual farmers to 50 lakh from 10 lakh.


Doubling the aggregate limit to 2 crore per borrower in the case of loans to, among others, corporate
farmers, producer companies of individual farmers, and partnership firms/co-operatives engaged in
agriculture and allied activities.
In the case of housing loans, the RBI has lowered the quantum of loans that will qualify as PSL. Loans of
up to 20 lakh (25 lakh now) will be made available to individuals on PSL for the purchase/construction
of a dwelling unit per family.
As of end-March 2015, there were 56 RRBs operating in the country, with a network of 20,059 branches
covering 644 notified districts across 26 States and the Union Territory of Puducherry.

Regional Rural Banks:


Background:

Even after nationalization in 1969, there was a feeling that there were cultural issues which made it
difficult for commercial banks, even under government ownership, to lend to farmers.
The government set up Narasimham Working Group in 1975. On the basis of this committees
recommendations, a Regional Rural Banks Ordinance was promulgated in September 1975, which was
replaced by the Regional Rural Banks Act 1976.

Salient Features:

The RRBs were owned by three entities with their respective shares as follows:
Central Government 50% , State government 15% , Sponsor bank 35%.
Every bank was to be sponsored by a Public Sector Bank.
These sponsor banks are required to
1. subscribe to the share capital of RRBs
2. train their personnel
3. provide managerial and financial assistance .

What is Priority Sector Lending?


Priority sector refers to those sectors of the economy which may not get timely and adequate credit in the
absence of this special dispensation.
Categories under priority sector include - 1. Agriculture; 2. Micro, Small and Medium Enterprises; 3. Export
Credit; 4. Education; 5. Housing; 6. Social Infrastructure; 7.Renewable Energy; and 8. Others.

3.14. SEZ REVIVAL PLAN


Why in news?
Since SEZs are an important mainstay for supporting the Make in India campaign and boosting exports the
government had set up a high-level team to review and resolve the problems of special economic zones.
Pre question 2013
Priority sector lending by banks in India constitutes the lending to
(a) Agriculture
(b) Micro and Small Enterprises
(c) Weaker section
(d) All the above.
CSE Mains 2004
Q. What does priority sector lending mean?
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What are SEZs?


Special Economic Zones denote geographical areas which enjoy special privileges as compared with non-SEZ
areas in the country. They were conceived as tax free enclaves with world class infrastructure for exporting
goods and services.
The main objectives of the SEZ Act are:

Generation of additional economic activity.


Promotion of export of goods and services.
Promotion of investment from domestic and
foreign sources.
Creation of employment opportunities.
Development of infrastructure facilities.

Why SEZs failed?

Incentives offered under the foreign trade


policy to exporters outside of the zones
Disincentives arising out of free-trade agreements (FTA)
Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT)
Land Acquisition is one of the major hurdles.
Inflexibility of labour laws in SEZs
Policy uncertainty because of differences between Finance and Commerce Ministry.

Way Forward:

There is a need to change the perception of SEZs as tax heavens to enclaves with excellent infrastructure
facilities. SEZs should provide better infrastructure facilities, which in turn will reduce the cost of
operations and act as an incentive for exports. Government should provide sufficient support in this
regard.
Fiscal incentives need to be carefully designed so that it doesnt violate WTO rules.
SEZs should be allowed to sell within the country without payment of customs duty on the product.
Abolition of MAT and DDT(Dividend Distribution Tax).

CSE PRE 2010


The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the
following:
1. Development of infrastructure facilities.
2. Promotion of investment from foreign sources.
3. Promotion of exports of services only.
Which of the above are the objectives of this Act?
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
(UPSC Mains 2015)
Q. There is a clear acknowledgement that Special Economic Zones (SEZs) are a tool of industrial development,
manufacturing and exports. Recognizing this potential, the whole instrumentality of SEZs requires
augmentation. Discuss the issues plaguing the success of SEZs with respect to taxation, governing laws and
administration.

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3.15. CAIRN INDIAS TAX DISPUTE


Why in news?

Cairn Energy Plc has initiated international arbitration against government of India under India-Britain
BIT. It said it will seek a huge claim about $700 million from the Indian government for losses
caused to it by the latters actions as part of a $1.6 billion tax dispute.
The government could face substantial damages against it for the fall in value of Cairn Energy Plcs
residual holding in Cairn India Ltd. as a result of several factors that include the governments decision to
disallow the stake sale pending resolution of the dispute.

Background of Indias BITs:

Policy of economic liberalization


INDIAN BITs AT A GLANCE
adopted in 1991 viewed foreign
India signed its first BIT in 1994 with the United Kingdom.
investment as the cornerstone
Since 1994, India has signed a total of 83 BITs , Out of
of its industrial policy.
which 72 are already in force.
The industrial policy introduced
Around 40 BITs are with developing and less developed
that year pinned its hopes on
States.
foreign investment bringing the

Around 20 of the BITs enforced have been done in last


attendant
advantages
of
five years.
technology transfer, marketing
These
BITs were largely negotiated on the basis of the Indian
expertise,
introduction
of
modern managerial techniques and new possibilities
for promotion of exports .
Few of the other major disputes under BITs
Bilateral Investment Promotion and Protection
Vodafone tax dispute ,treaty invoked:
Agreements (BIPAs) /Bilateral investment treaty
Netherland- India BIT
(BITs) as they are known in India, are a pivot to this.
Children Investment Fund ,treaty
All Indian BITs make it clear that investment
invoked: Cyprus-India BIT
promotion is an important objective. Even the model
Loop Telecom, treaty invoked: BritainBIT states this.
In recent times more than 18 treaty claims have
India BIT
filled by foreign investors against India and if they
win it would cost the country pretty packet. Most of these claims have risen from tax disputes.

Do BITs really bring foreign investments?


There is no conclusive evidence that BITs are instrumental in attracting FDI. Numerous studies have failed to
make a strong case for BITs. For example, Brazil received FDI of US $65.27 billion in 2012, a figure that covered
its current account deficit although it does not have a single BIT in force. Another compelling example is China.
Even though a Sino-US BIT has not been concluded yet, the US continues to be one of its biggest investors.
FDI to India, on the other hand, has dipped to $27 billion from $32 billion in 2011, according to finance ministry
figures. Undeniably, a clutch of factors are at play in attracting FDI. Thus there was a much felt need to review
the model BIT.
Revised Model BIT: The cabinet recently approved the revised model BIT. The revised Indian model text for
Bilateral Investment Treaty (BIT) will replace the existing Indian Model BIT. The revised model BIT will be used
for re-negotiation of existing BITs and negotiation of future BITs and investment chapters in trade agreements.
The essential features of the model BIT include following:

42

An "enterprise" based definition of investment


Non-discriminatory treatment through due process
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National treatment
Protections against expropriation,
A refined Investor State Dispute Settlement (ISDS) provision requiring investors to exhaust local
remedies before commencing international arbitration
Limiting the power of the tribunal to awarding monetary compensation alone.
The model excludes matters such as
o Government procurement
o Taxation, subsidies
o Compulsory licenses
National security to preserve the regulatory authority for the Government.

3.16. INDIA SET TO ADOPT BASE EROSION PROFIT SHARING PROJECT


(BEPS)
(Refer October issue of Current Affairs for background)
India is set to adopt a new regime to curb tax evasion as proposed by the OECD and G20 nations.
What is BEPS?
It is a technical term referring to the negative effect of multinational companies' tax avoidance strategies on
national tax bases. It can be achieved through the use of transfer pricing.
Controlled Foreign Corporation
(CFC)s are rules to tax the unrepatriated profits kept abroad
by MNCs.
CCD is generally used to bring in
debt into India because the
interest outgo on it is a
deductible expense here, but is
treated as dividend in certain
countries, giving it the status of a
tax planning instrument.
Why important?

43

The proposed changes would deny businesses the tax advantage from certain hybrid financial
instruments such as compulsorily convertible debentures (CCD).
It will prevent them from fragmenting the business chain to escape being considered a taxable business
presence (called permanent establishment).
The practice of lowering the tax outgo here by paying royalty a deductible expense while calculating
taxable income to the owner of intellectual property rights incorporated in a low-tax jurisdiction
would be restricted. The idea is to ensure that legal ownership of intangibles like patents held by a
foreign entity does not entitle it with the full right to the income arising from exploiting it here. Royalty
payment is a common way many Indian units of MNCs send back part of profits to the parent at a
concessional rate of withholding tax specified in tax treaties.
India has also introduced a set of place of effective management (POEM) rules that addresses the
requirement for CFC rules. POEM brings the worldwide income of India-managed overseas companies to
tax in India.
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Road ahead:
Finance ministry sources said the multilateral agreement on preventing the corporate practice of shifting profits
away from the country of economic activity to a low-tax jurisdiction would be ready by December 2017 and that
as part of G20 nations, India is committed to implementing its provisions.
A note of caution:
Considering the legacy of tax disputes India had, especially relating to cross-border transactions, field officers
would be advised to be judicious in invoking the potent anti-tax evasion tools of the new regime. Tax experts
said that field officers need to implement the BEPS provisions in the spirit the principles are laid down.

3.17. COMPATS VOIDS CCIS PENALTY ON CEMENT COMPANIES


The Competition Appellate Tribunal (COMPAT) has set aside the Competition Commission of India (CCI) decision
imposing a cumulative penalty of Rs.6, 316.59 crore on 11 cement companies on charges of cartelisation.
Details of COMPATS decision:

The COMPAT asked CCI to adjudicate afresh


the issues relating to alleged violation of the
Competition Act by the companies.
CCI should pass a fresh order within three
months from the date notified.
The Commission (CCI) should evolve a
comprehensive protocol and lay down
guidelines for conducting investigation/inquiry
in consonance with the rules of natural
justice.
It opined that much of the appellate litigation
would be obviated if a just and fair procedure
is adopted for conducting investigation and
inquiry and passing of orders under the
(Competition) Act.

Competition Appellate Tribunal (COMPAT):


It is a statutory organization established under the
provisions of the Competition Act, 2002 to hear and
dispose of appeals against any direction issued or
decision made or order passed by the Competition
Commission of India. The Appellate Tribunal shall also
adjudicate on claim for compensation that may arise
from the findings of the Competition Commission of
India or the orders of the Appellate Tribunal in an
appeal against any findings of the Competition
Commission of India.

44

What is Competition law?


Act,
2002 governs Indian
The
Competition
competition law. It replaced the archaic Monopoly
and Restrictive Trade Practices Act, 1969. Under
this legislation, the Competition Commission of
India was established to prevent activities that
have an adverse effect on competition in India. This
act extends to whole of India except the State of
Jammu and Kashmir.
The Objective of law:
To prohibit the agreements or practices that
restricts free trading and also the competition
between two business entities,
To ban the abusive situation of the market
monopoly,
To provide the opportunity to the entrepreneur
for the competition in the market,
To have the international support and
enforcement network across the world,
To prevent from anti-competition practices and
to promote a fair and healthy competition in the
market.
Competition Commission of India is a body
responsible for enforcing The Competition Act,
2002 throughout India and to prevent activities
that have an adverse effect on competition in India.

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3.18. STRATEGIC CRUDE OIL RESERVE PROGRAMME


Background:
India imports around 80% of its crude oil requirement .According to International Energy Agency, by 2020, India
would be largest crude oil importer. The erstwhile Planning Commission, in its Integrated Energy Policy, 2006,
identified supply, market and technical risks as major threats to Indias energy security and recommended to
maintain a reserve equivalent to 90 days of oil imports for strategic-cum-buffer stock purposes.
Crude Oil Storage Facilities
These are underground rock caverns. The rock must be strong enough for the cavern to be stable. A wide range
of rock types are suitable, such as igneous (granite, diorite), metamorphic (gneiss, schists) and even sedimentary
rocks (sandstone, limestone, chalk, shale).
Why Underground Rock Caverns?
1.
2.
3.
4.

Safety from the hazards of leakage.


Lower capital cost and lower operating costs compared to conventional tanks
Inherent safety over the above ground storage systems
Safety from natural calamities and various forms of sabotage.

Location:
Mostly coastally located as the imports is easy and
suitable refineries capability.

Location

Capacity(MMT)

Cost
(in Cr)

Progress

Where does India stand?

Visakhapatnam

1.33

1038

Completed

India holds only 5.3 MMT of crude oil reserves as


compared to USA which holds maximum 95MMT of
crude oil reserves.

Mangalore

1.5

1227

In progress

Padur

2.5

1693

In Progress

45

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4. SOCIAL ISSUES
4.1. CYBERCRIME AGAINST WOMEN
Why in news?
Online harassment of women - Cybercrimes against women
are increasing and recently government has taken several
steps to prevent cybercrimes.
Challenges to deal with cybercrimes against women

What is cybercrime?
Cybercrime is a criminal activity that
involves a computer and a network.
Offences committed against people
with a criminal motive to cause
physical or mental harm, or loss to
the victim directly or indirectly, using
modern telecommunication
networks such as Internet and mobile
phones.
In such crimes computer can be used
in order to commit the crime and in
some cases, the computer may have
been the target of the crime.
Cybercrimes threaten a nations
security and financial health.

Cyber- crimes against women are rising at alarming


rate and it may pose as a major threat to the
security of a person as a whole.
As per the NCRB data under cybercrimes, 758 cases
of publication or transmission of obscene, sexually
explicit content (under section 67A, 68B and 67C of
IT Act) has been registered in 2014.
Issues regarding women are not addressed in the IT
Act 2000-The act has termed certain offences as
hacking, publishing of obscene materials on the
internet, tempering the data as punishable offences,
but the threat to the security of women in general is
not covered fully by this Act.
IT Act 2000 does not mention the typical
Cybercrimes which specially target women:
cybercrimes like cyber staking, morphing and email
Harassment via e-mails
spoofing as offences.
Cyber-staking
In recent years, there have been numerous reports
of women receiving unsolicited emails which often
Cyber pornography
contain obscene and obnoxious language.
Defamation
The cases of online harassment against women are
Morphing
not maintained by the government
Email spoofing
Social networking sites are being used to circulate
offensive content which is derogatory to dignity of
women
Women are also the majority of people experiencing revenge-porn, the distribution of non-consensual
photography, often involving nudity and sex.
Rape videos also harass women- Cases of men recording and sharing their raping of girls and women
are increasing.
Internet has become a trafficking platform- social media is used by traffickers to sell people whose
photographs they share, without their consent.

Way forward
National Commission for Women has submitted a report which recommended for opening of more cyber cells,
dedicated helpline numbers and imparting of proper legal, setting up forensic labs and technical training law
enforcement agencies like police and judiciary to combat cybercrime.
Recently the Government has taken following steps for prevention of Cyber Crimes:

46

Cyber Crime Cells have been set up in States and Union Territories for reporting and investigation of
Cyber Crime cases.

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Government has set up cyber forensic training and investigation labs in the States of Kerala, Assam,
Mizoram etc. for training of Law Enforcement and Judiciary in these States.
Programmes on Cyber Crime investigation Various Law schools are engaged in conducting several
awareness and training programmes on Cyber Laws and Cybercrimes for judicial officers.
Training is imparted to Police Officers and Judicial officers in the Training Labs established by the
Government.
The Scheme for Universalisation of Women Helpline has been approved to provide 24 hour emergency
and non-emergency response to all women affected by violence.

4.2. DOWRY DEATHS


Why in news?
According to the National Crime Records Bureau (NCRB) data released recently, the highest number of dowry
deaths during the last three years have been reported from the state of Uttar Pradesh followed by Bihar.
Dowry Prohibition Act 1961

The implementation of the Dowry Prohibition Act, 1961 is the responsibility of the respective State
Government in the country.
The Dowry Prohibition Act, 1961 lays down a built-in implementation mechanism in the form of Dowry
Prohibition Officers to ensure effective and efficacious enforcement of the law.
The Ministry (Ministry of Women and Child Development) reviews with the States time to time for
effective implementation of the Dowry Prohibition Act, 1961.
Section 304 B of the Indian Penal Code (IPC) - deals with dowry death related cases. A person convicted
under this section can be punished with imprisonment of 7 years to life term.

Measures

Dowry Prohibition Officers have been appointed by all the states except Arunachal Pradesh, Sikkim,
Mizoram and Nagaland where the dowry system in not in prevalence.
Awareness generation programmes and campaign are conducted regularly by the government, through
workshops, fairs, cultural programs, seminars and training programmes etc.

4.3. DOMESTIC VIOLENCE


Why in news?
Recently Ministry of statistics and program implementation (MoSPI) has released a report titled Women and
Men in India 2015 which says that domestic violence shares highest share in crime against women.
Fact File

47

Women continue to face most risks from


their families.
Among all registered cases of serious
crimes against women, the largest share
36% of all cases was under "cruelty by
husband and relatives"
the next largest share was "assault on
women with intent to outrage her
modesty" (24 per cent)

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Increase in rape, kidnapping and abduction and assault on women


Rapes - In 2014, almost 44 per cent of all victims were in the age group of 18-30 years, whereas one in
every 100 victims was under six years of age.

4.4. SC RULING REGARDING APPOINTMENT OF ARCHAKAS IN TAMIL


NADU TEMPLES
Why in news?

Agamas

The Supreme Court has delivered a verdict recently, which


determines who gets to enter the sanctum sanctorum of
an Agama-protected Hindu temple as a priest. SC ruled
that appointment of Archakas in Tamil Nadu temples as
per the Agamas is not a violation of the right to equality.

What is the judgement?

The Agamas are a collection of scriptures of


several Hindu devotional schools.
Agamas in Sanskrit mean that which has
come to us.
These texts are in Sanskrit and in some south
Indian languages like Tamil.
There are two kinds of Agama texts, Agama
and Tantra, the former practised in Shaivite
and Vaishnavite temples, and the latter in
Sakthi temples
Agamas expound a variety of subjects and
they are really the stylebook, on which Hindu
rituals are based while some Saivite temples
practise Tamil Agamas too, rituals in
Vaishnavite temples are based on Vaikhanasa
Agamas and the Pancharathra Agamas, or
the Five Nights.
According to the Agama texts poojas can be
performed only by Archakas belonging to a
particular and distinct sect/denomination,
failing which, there will be defilement of
deity requiring purification ceremonies

The judgment strike down the Tamil Nadu


government order of May 23, 2006, which
allowed any qualified and trained Hindu to be
appointed as priest in Hindu temples in the State.

The Supreme Court ruled that appointment of


archakas (priests) in Tamil Nadu temples should
be done as per the restrictions prescribed by the
age-old Agamas (treatises), upturning the
amendments to the Tamil Nadu Hindu Religious
Endowments Act put in place by the then DMK
government in Tamil Nadu in 1971.

The exclusive right given to a particular group or


denomination to enter the sanctum sanctorum of
a temple and perform rituals cannot be construed
as a practice of untouchability.
The denominations the Agamas have laid out,
such as the descendants of particular rishis, are
not on the basis of caste and therefore do not violate Article 17.

Grounds of the Judgement

Freedom to act and practice in pursuance of religious beliefs is as much important as the freedom of
believing in a religion, as long as it does not violate other provisions in Part III of the Constitution.
Denomination as eligibility as prescribed in the Agamas is not based on caste and does not violate the
provisions of Part III; it becomes an essential element of freedom of belief.

Why Petitioners opposed the TN govt order?

No person is permitted to enter the Sanctum Sanctorum, irrespective of whatever varna/caste he may
belong.
Only those belonging to a particular denomination, in this case descendants of four rishis mentioned in
the Agamas, could become priests and the denomination is determined by the usage in the particular
temple.

Criticism

48

Priestly functions of an Agama temple will now remain in the hands of a few, is the ultimate outcome of
this verdict.
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The court seems to have given little consideration to how the Agamas have been implemented
historically and the current reality that exists in the Indian social framework dominated to a good extent
by the privilege of caste.

4.5. GENDER EQUALITY-WOMEN TO WORK IN NIGHT SHIFTS:

Recently a legislation of Maharashtra government proposing amendments to Factories Act, 1948


received Presidents assent.
It will allow women to work in night shifts. The managements of the factories will have to ensure
security of the women working in night shift.
With the amended legislation, Maharashtra will join other States like Haryana, Rajasthan, Punjab,
Andhra Pradesh and Madhya Pradesh who are making efforts to allow women to work in night shifts.
Other provisions of the bill:
o The Bill also allows employees to get paid leave after working for 90 days instead of the earlier 240
days or more.
o The overtime limit will also be increased from 75 hours to 115 hours without managements
permission.
o The amended Bill will also prevent inspectors from filing cases on petty matters against factories,
thereby helping curb corruption and harassment from factory inspectors.

4.6. MALNUTRITION IN INDIA


Why in news?
National Dairy Development Board (NDDB) and Gujarat Cooperative Milk Marketing Federation (GCMMF or
Amul) have joined hands for Giftmilk, an initiative that will offer donors, including corporates, an opportunity
to provide free milk to schools, preferably government or municipality-owned with children mainly from
economically weaker sections.

49

The two Anand-based organisations have set up a trust NDDB Foundation for Nutrition (NFN) to
seek funds for milk to be sourced from dairy cooperatives and distributed in schools identified by the
donors.
The foundation will try and fulfil the requirement of supplying up to 200 ml daily for 200 schooldays in a
year. The target is to reach out to a million schoolchildren by 2020, provided adequate financial support
is forthcoming.
The milk will be processed and flavoured to make it less susceptible to diversion, besides being fortified
with vitamin A or other nutrients to support cognitive as well as physical growth among children.
Proposed to be launched in the first quarter of 2016, Giftmilk will be first rolled out in Delhi and
Hyderabad.
NFN further plans to approach companies in the private and public sectors who are interested in
extending the initiative to their areas of operation or preferred locations.
Currently, milk is neither supplied through the public distribution system nor midday-meal schemes
implemented by most governments, barring Karnataka and Gujarat.
Other such initiatives include Karnataka: the Ksheera Bhagya scheme and Gujarat -the Doodh
Sanjeevani Yojana.

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4.7. HEALTHCARE SYSTEM: LANCET REPORT


Why in news?
According to a report published by Lancet on healthcare India is the poorest performer in the BRICS nations.
Progress in Healthcare System: A perspective

Life expectancy at birth has risen from 62.5 years in 2000, to 66 years in 2013.
In 2013, the infant mortality rate was 40 per 1000 live birthsdown by a third since 2003.
Between 2001 and 2013, the maternal mortality ratio fell from 301 per 100 000 live births to 167 per 100
000 live births.
The spread of HIV/AIDS has been contained, and, in March, 2014, WHO officially declared India Polio
free.
In August, 2015 WHO declared India free of maternal and neonatal tetanus.

Concerns:

Successive governments have failed to adequately protect its citizens against financial risks associated
with health cost.
Due to high out-of-pocket healthcare expenditures, a large population is impoverished and suffers the
adverse consequences of poor quality of care.
Total expenditure on health in India has gone down from 4.5 per cent of GDP in 2004 -05 to 4 per cent in
2013-14.
India contributes disproportionately to the global burden of disease.
India accounts for 27 per cent of all the neonatal deaths and 21 per cent of all the child deaths (younger
than 5 years) in the world.
Diarrhoea, pneumonia, preterm birth complications, birth asphyxia, and neonatal sepsis account for 68
per cent of all deaths in children younger than 5 years in the country.
Large health disparities between states, between rural and urban populations, and across social classes
persist.
Corruption in health care and the fragmentation of governance of health care.

7 key challenges faced by the Indian Healthcare system As per the lancet report:
1. A weak primary health care sector
Expansion of public services has been
inequitably distributed. There is one
government hospital bed for every 614
people in Goa compared with one every
8,789 people in Bihar.
The care provided in these facilities is also
not up to the mark. For example, in 2011,
six out of every 10 hospitals in the less
developed states did not provide intensive
care and a quarter of them struggle with
issues like sanitation and drainage.
Urban areas command 73% of the public
hospital beds, even when 69% of Indias
population resides in rural areas.
Emergency obstetric care services were not
available in more than 70% of community
health centres
Indias medical research infrastructure remains patchy
50

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2. Unequally distributed skilled human resources


Shortfall of specialists across country
No national policy for human resources for
health
Dominance of medical lobbies such as the
medical Council of India has hindered
adequate task sharing and, consequently,
development of nurses and other health
cadres.
3. Large unregulated private sector
Growth of unregulated private sector.
In 2014, more than 70% of the Outpatient
care and more than 60% of the inpatient care
was in the private sector.
Between 2002 and 2010, the private sector
contributed to 70% of the increase in total
hospital beds across the country.
Private practitioners have become first
point of contact in both rural and urban
areas for many ailments including fevers
and acute illness, care of neonates, and
treatment of disease such as tuberculosis
Unethical and irrational practices adopted
by the private hospital management.
4. Low public spending on health
Even though real state expenditure on
health has increased by 7% annually in
recent
years,
central
government
expenditure has reduced.
Many state governments are unable to
utilize the allocated funds for healthcare
services which reflect structural weakness in
the system.
Public health expenditure as a proportion
of GDP remains low, at just 128% of the
countrys GDP in 201314.
In 200304, only 45% of Indians enjoyed
some financial protection.
5. Fragmented health information systems
The systems for collecting data have many
weaknesses. For instance, although India
enacted a law on the mandatory
registration of births and deaths in 1969,
only 86% of births and 709% of deaths
were registered in 2013.
Data gathering is incomplete, and the noninclusion of the private sector excludes the
major provider of health care in India.

51

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6. Irrational use and spiralling cost of drugs


India spends only a little more than 01% of
GDP on publicly funded drugs. This is the
reason behind the increase in out-ofpocket expenditure on drugs.
Costs of medical treatment have increased
so much that they are one of the primary
reasons driving people into poverty.
There have been schemes such as the Jan
Aushadhi campaign to provide 361 generic
drugs at affordable prices and different
price regulation policies, but their
implementation has been patchy and
varied in different states.
7. Weak governance and accountability
In the past 5 years, the government has
introduced several new laws to strengthen
governance of the health system, but many
of these laws have not been widely
implemented.
Scope of (some) regulations is still unclear,
and there are fears that these laws have
hindered public health trials led by noncommercial entities.
Inadequate public investment in health,
the missing trust and engagement
between various healthcare sectors and
poor coordination between state and
central governments as the main constraints why universal healthcare is not assured in India.
At the heart of these constraints is the apparent unwillingness on the part of the state to prioritize
health as a fundamental public good.
Assuring health for India:

There is a greater need of radical restructuring of the healthcare system in India to address challenges
including weak primary healthcare and dismally low public spending on health.
Only a radical restructuring will promote health equity, eliminate impoverishment because of out-ofpocket expenditure and assure health for all Indians by 2022.
Need to expand health assurance for all.
Need to put in place a new architecture for Indias healthcare system.
Urgent need to adopt universal health coverage based on massive strengthening of the public health
system and radical approaches to health financing.
India needs to adopt an integrated national health-care system built around a strong public primary
care system with a clearly articulated supportive role for the private and indigenous sectors.

4.8. HIV-AIDS

52

Recently on the occasion of World AIDS day (1st December) Union Minister of Health and Family
Welfare announced major policy decisions in the fight against HIV-AIDS and reaffirmed Indias
commitment in ending epidemic by 2030.
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The theme of World AIDS day 2015 is- on the fast track to end AIDS
AIDS: A global perspective and Challenges

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Adult HIV prevalence

Millions of people are vulnerable to HIV infection.


AIDS is a leading cause of the death among
women of reproductive age and young
adolescents.
Stigma and discrimination still continue to
impede the realization of peoples rights.
Sex workers, transgender people are highly
affected by the epidemic. Punitive laws, stigma,
human rights violations, social exclusion etc
further aggravate their vulnerability.
Around 37 % of female sex workers in subSaharan Africa are living with HIV.
Womens and girls vulnerability to HIV is driven
also by gender inequality, including gender based
violence.
Lack of access to comprehensive sexual and
reproductive health services and exclusion from
decision making processes makes young people
vulnerable to HIV.

The adult HIV prevalence at national level has


continued its steady decline from 0.34% in 2007
and 0.28% in 2012 to 0.26% in 2015.
In 2015, adult HIV prevalence is estimated at
0.30% among males and at 0.22% among females.
The total number of people living with HIV (PLHIV)
in India is estimated at 21.17 lakhs in 2015
compared with 22.26 lakhs) in 2007.
Children (< 15 years) account for 6.54%, while two
fifth (40.5%) of total HIV infections are among
females.
The annual number of AIDS related deaths has
declined by 54%.

The 90:90:90 Strategy


India- measures and achievements
Government of India has been decided that
the National AIDS Control Programme will
continue as a Central Sector Scheme.

53

2015 HIV Estimates results reaffirm


the countrys success story in
responding to HIV/AIDS epidemic.
India has successfully achieved the
6th Millennium Development Goal

It is a new HIV treatment narrative that lays the


groundwork to end the AIDS epidemic.

90% of all people living with HIV will know their


status (90% diagnosed)
90% of all people with diagnosed HIV infection
receive sustained antiretroviral therapy (90% on
treatment)
90% of all people receiving antiretroviral therapy
have viral suppression (90% suppressed)

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will
HIV
will

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(MDG 6) of halting and reversing the HIV epidemic.


Counselling and testing- More than a crore women were provided with counselling and testing services
and this programme is continuing to scale up to ensure zero transmission from mother to child.
Integration of Prevention from Parent to Child Transmission (PPTCT) programme with the RCH
programme.
Implementation of the 90:90:90 strategy adopted by UNAIDS.
India has one of the largest and most robust HIV sentinel surveillance systems in the world.
E-training HIV/TB module has been developed by NACO and Central TB Division to train the staff of
NACP and RNTCP working at district and sub-district level.
HIV Sensitive social protection portal to help officials and consellors at the district level
PALS (PPTCT ART Linkages Software) System- to maintain details of all HIV positive pregnant and breast
feeding women and their newborn babies.
India has extended support to the African countries in their fight against HIV-AID which reflects Indias
global commitment.

4.9. ACUTE FLACCID PARALYSIS (AFP)


A Case of Vaccine Derived Polio Virus (VDPV) was reported from New Delhi recently.
The polio virus causes paralysis medically known as an acute flaccid paralysis (AFP) which is characterised
by sudden muscle weakness, and fever in one or more limbs.
AFP can occur due to many reasons, one of which is vaccine-linked.
Why increase in the AFP cases?

Oral polio vaccine (OPV) contains an attenuated vaccine-virus. This weak form of the virus is used to
activate an immune response in the body, which protects the child when challenged by WPV.
But when the child is immunised with OPV, the virus replicates in the intestine and during this time, the
virus is excreted.
In areas of inadequate sanitation, the excreted vaccine-virus can quickly spread in the community and
infect children with low immunity.
This excreted vaccine undergoes genetic changes as it circulates in the community and causes VDPV.

Concerns

54

India being polio-free country still reporting cases of vaccine derived polio.
Between January 2014 and March 2015, India reported four cases from four different States, of vaccinederived polio.
There has been a surge of non-polio AFP since India eradicated polio. The number of cases reported in
2012 was 59,436, in 2013 it was 53,421, and in 2014 it was 53,383.
Until November this year, the country has reported 36,968 cases of non-polio AFP.
Low vaccination coverage- the Vaccine derived polio virus is circulating in under-immunised
communities.
Three years after India reported its last case of WPV, the country has, in one form or another, been
reporting around 50,000 cases of flaccid paralysis that, clinically, is exactly like polio, indicating how
hollow the polio-free status is.

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4.10. ACCESSIBLE INDIA CAMPAIGN (SUGAMYA BHARAT ABHIYAAN)


Why in news?

On International day of persons with disability (3rd


December), government launched Accessible India
Campaign (Sugamya Bharat Abhiyan) as a nationwide flagship campaign for achieving universal
accessibility for persons with disabilities.
The campaign targets three separate verticals for
achieving universal accessibility namely the built up
environment, transportation eco-system and
information & communication eco-system.
Theme of the international day of Persons with
disabilities 2015 was Inclusion matters: access and
empowerment for people of all abilities.

Aims and Objectives of the program

Facts & Figures


Over 1 billion people in the world have
some form of disability, thats 1 in 7
More than 100 million disabled persons
are children
Children with disabilities are almost four
times more likely to experience violence
than non-disabled children
80% of people with disabilities live in a
developing country
50% of disabled persons cannot afford
health care
153 countries signed the Convention on
the Rights of Persons with Disabilities

It is aimed at making transport, government


buildings, tourist spots, airports, railway stations and
internet technology friendly for differently-abled
people.
The campaign has ambitious targets with defined timelines and will use IT and social media for spreading
awareness about the campaign and seeking commitment of various stakeholders.
Atleast 50% of all the government buildings of National Capital and all the State capitals will be made
fully accessible for persons with disabilities by July 2018.
All the international airports in the country and railway stations of A1, A & B categories will be made
fully accessible by July 2016.
Atleast 10% of government owned public transport carriers in the country will be converted into fully
accessible carriers for these persons by March 2018.
It will also be ensured that atleast 50% of all public documents issued by the Central Government and
the State Governments meet accessibility standards for persons with disabilities by March 2018.

National laws and International conventions

India is a signatory to the UN Convention on the Rights of Persons with Disabilities (UNCRPD).
Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act 1995, as
per the act the States are required to provide for:
Ramps in public buildings
Provision of toilets for wheelchair users
Braille symbols and auditory signals in elevators or lifts
Ramps in hospitals, primary health centres and other rehabilitation centres.

Initiatives & Few proposed measures:

55

Government will create Accessible police stations, Accessible hospitals and Accessible tourism
respectively across the country
For enhancing accessibility of Television programmes incorporation of features like captioning, text to
speech and audio description
A web portal and mobile application for creating a crowd sourcing platform to get information about
inaccessible areas
An Accessibility Index is also underway to measure the level of disabled friendliness of a system
Replacement of the term Viklang (disabled) used for the differently-abled with divyang (divine body)
is proposed.
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Separate institute for deaf and dumb persons and development of new brail language
The Government has decided to set up a special University for persons with disabilities with the cost of
Rs. 1700 crore.

4.11. IMPACT OF NATURAL DISASTERS ON ELDERLY PEOPLE


Chennai Floods has revealed the grim reality of the disaster preparedness in large metropolises. Vulnerable
sections of the society are worst affected during such calamities.
Background- Facts

According the National Health Profile, released by the health ministry last year, the elderly in India i.e.
the population above 60 years comprise 8.6% of the population (103.8 million) and they are also a
vulnerable section.
According to census 2011, 10 per cent of Tamil Nadus population is above the age of 60 years- 4, 64,122
people to be specific. By conservative estimates, as many as 5% of older individuals are living alone
(urban isolation).
For this population, the national health policy envisages an effective capacity for routine emergency
and, an army of community members trained as first responder for accidents and disasters.
The Health policy envisages a network of emergency care that has an assured provision of life support
ambulances linked to trauma management centers- one per 30 lakh population in urban and one for
every 10 lakh population in rural areas will form the key to a trauma care policy.

Issues

With no support system, Indias greying population is defenceless against natural calamities.
Senior citizens are likely to constitute a significant chunk of the total deaths in Chennai Floods.
Urban isolation leading to helplessness during such disasters
Number of elderly people were founded stranded during the floods for days without access to relief or
rehabilitation
Inefficient administration- the complete lack of ward-level data on vulnerable populations, such data is
vital for any relief and rescue work to be successful
Lack of institutional capacity to meet the goals for vulnerable population envisaged by the National
Health Policy

Way Forward

The institutional capacity should be increased


Relief, Rescue and Rehabilitation measures should be at the lightening speed for vulnerable section
The phenomenon of urban isolation should be addressed by communities and NGOs can play a greater
role to lessen psychological pressure on the vulnerable sections of the society
Need of the greater awareness among people about the issues faced by the elderly
Use of social media platform and technology to help

4.12. ONLINE SALE OF DRUGS


Why in news?
The Drugs Consultative Committee (DCC) constituted under Drugs and Cosmetics Act, 1940 to advise the
government, has constituted a 7-Member Sub-Committee to examine the issue of sale of drugs on the internet,
while taking care of the risks and concerns related to such sales.

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Regulation of e-pharmacies in India:

The sale and distribution of drugs in the country is regulated as per the provisions under the Drugs &
Cosmetics Act, 1940 and the Drugs and Cosmetics Rules, 1945 made there under.
As per said Rules, Drugs specified in Schedule H, H1 or Schedule X cant be sold except on and in
accordance with the prescription of a Registered Medical Practitioner.
The Drugs and Cosmetics Act, 1940, does not have any provision for online sale of drugs.
Currently there are three models of online pharmacy that exist in Indiaorganised, unorganised and
illegal.
In the organized sector, technology is used to either connect local licensed pharmacists to the end user
or an off-line pharmacist takes orders over the internet. Prescriptions are checked in the organised
sector while the unorganised sector does away with this requirement.

Benefits of online sale of drugs:

The annual Indian pharmaceutical market is pegged at around Rs. 79,000 crores, growing at around 20%.
If the government decides to allow online sale of drugs, it is likely to give a major boost to sales of the
sector while also making medicines accessible to remote areas
Access to drugs for the disabled or otherwise homebound, for whom a trip to the pharmacy can be
difficult.
The convenience of shopping 24 hours a day. A complete selection of pharmaceutical products.
Privacy for those who dont want to discuss their medical needs in a public place.

Concerns regarding online sale of drugs:

57

The Internet also creates a new marketplace for illegal activity such as the sale of unapproved new
drugs, prescription drugs dispensed without a valid prescription, or products marketed with fraudulent
health claims.
The speed, ease, and anonymity of ordering products on the Internet can attract unscrupulous sellers.
Individuals not licensed to sell prescription drugs can easily create websites that appear to represent
legitimate pharmacies.
There are concerns that online sale would threaten the interests of small retailers and disturb the
existing supply chain system.
There is a concern that children today are capable of using the Internet and the concept of prescription
drugs against a photocopy of a prescription uploaded online to get a medicine can create havoc.
Doctors have raised concerns saying that doctors, patients and pharmacists have a relationship based on
trust. If a website were to display cheaper variations to the medicine prescribed by a doctor, without
offering an explanation, this relationship suffers.
Self-medication is a rampant practice in India, and online sale of drugs may further encourage it.

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5. SCIENCE AND TECHNOLOGY


5.1. GERMLINE EDITING

Germ line refers to the egg and sperm, which combine to form an embryo.
Germline editing is a genome- editing technology that can, in principle, be developed to make specific
and targeted genetic alterations in embryos, which will be carried by all the cells of a resulting child and
passed on to his/her offspring, a part of the human gene pool.
All other techniques of genome editing currently in various stages of clinical development focus on
modifying the genetic material of somatic cells, such as T cells (a type of white blood cell).
These are not designed to affect sperm or eggs.

Why in news?
Recently the scientists at Sun Yat-sen University in Guangzhou, China, developed a new gene editing technology
known as the CRISPR/Cas9 system.

CRISPR/Cas9, is a bacteria-derived system that uses RNA molecules that recognize specific human DNA
sequences. The RNAs act as guides, matching the nuclease to corresponding locations in the human
genome. CRISPR/Cas9 is the simplest genome-editing tool to work with because it relies on RNADNA
base pairing, rather than the engineering of proteins that bind
particular DNA sequences.
The technology is relatively inexpensive, accessible, effective and
easy to use.

Benefits of germline editing:

By editing the DNA of egg and sperm or the embryo itself, it


could be possible to correct disease genes and pass those genetic
fixes on to future generations.
It might also be possible to install genes that offer lifelong
protection against infection.

Issues with germline editing:

Some argue that we do not understand the operations of the


genome enough to make long-lasting changes to it. Altering one
gene could have unforeseen and widespread effects on other
part of the genome, which would then be passed down to future
generations.
Many consider genome alterations to be unethical, advocating
that we should let nature run its course.
Additionally, genetic modifications initially directed at curing
diseases could eventually become a tool for selecting for desired
characteristics such as intelligence and attractiveness.
A concern is that whether the application of germline
manipulation would change our view of the value of human life.
If genomes are being altered to suit parents preferences, do
children become more like commodities than precious gifts?

Regulatory scenario:

58

The United States has banned federal aid from being used to support germline editing.
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While in the United Kingdom, one can apply to the regulatory body for a licence to edit the genomes of
a human embryo, but only for research work. The embryos have to be destroyed within 14 days.
The recently held International Summit on Human Gene Editing announced that it would be
irresponsible to proceed with any clinical use of germline editing until the relevant safety and efficiency
issues were resolved.
In India, there is no law stopping research laboratories and private companies from using the technology
to experiment on embryos. However, the Drug Controller General of India is trying to use interpretations
of existing laws on drugs to clamp down on improper use.
The guidelines listed by the Indian Council of Medical Research clearly state that germline editing is
forbidden.

5.2. DEVELOPMENT OF ARTIFICIAL LIVER TISSUE BY3-D PRINTING

Recently, Pandorum Technologies Pvt. Ltd, a biotechnology


What is 3D printing?
start-up focused on tissue engineering, has made Indias first
3D printing, also known as additive
artificial human liver tissue with the help of 3D printing
manufacturing
(AM), refers to
technology.
various
processes
used
to
To build liver tissue of 5 mm size Pandorum needed 10 million
synthesize a three-dimensional
liver cells, which were arranged in three-dimensional
object.
architecture, a bio-material made up of glucose, proteins and
In 3D printing, successive layers of
living cells extracted from a particular type of insect is used as
material are formed under
ink, which is placed in three interchangeable dispensers of the
computer control to create an
printers head controlled by lasers.
object.
The tissue performs critical functions of a human liver tissue
These objects can be of almost any
including detoxification, metabolism and secretion of
shape or geometry, and are
biochemicals such as albumin and cholesterol. The tissue can
produced from a 3D model or
grow and survive up to eight weeks
other electronic data source. A 3D
The 3D bio-printed mini-livers that mimic the human liver will
printer is a type of industrial robot.
serve as test platforms for discovery and development of drugs
with better efficacy, less side-effects and at lower costs.
The cell-based miniature organs can be used to develop bio-artificial liver support systems for preserving
life in patients who have developed liver failure.
In the near future, such bio-printed organs will address the acute shortage of human organs available for
surgical transplantation, however the current 3D printing technology is able to make small slices of
tissue, producing a complete organ such as the liver with 300 billion cells may take several years.

5.3.
WORLD'S
POWDERED CHIP

59

FIRST

BIOLOGICALLY-

In a major breakthrough, researchers at Columbia Engineering


have harnessed the molecular machinery of living systems to
power an integrated circuit.
The researchers developed the system by using an artificially
created lipid bilayer membrane containing naturally occurring
ion pumps, which are powered by the ATP (adenosine
triphosphate).
The scientists connected the lipid membrane to a conventional
solid-state complementary metal-oxide-semiconductor (CMOS)
integrated circuit.
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What is ATP?
Adenosine triphosphate (ATP) is a
nucleoside triphosphate used in
cells as a coenzyme often called the
"molecular unit of currency" of
intracellular energy transfer.
ATP transports chemical energy
within cells for metabolism.
It is one of the end products of
photophosphorylation,
cellular
respiration, and fermentation and
used by enzymes and structural
proteins
in
many
cellular
processes, including biosynthetic
reactions, motility, and cell
division.
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In the presence of ATP, the system pumped ions across the membrane, which produced an electrical
potential harvested by the CMOS integrated circuit (IC).
These findings are a step towards designing electronics having the ability to perform or replicate certain
functions of living systems, such as tasting, smelling and the use of biochemical energy sources.
The scientists will now be able to isolate the desired function of a cell and interface it with electronics.
For e.g. Instead of using a bomb-sniffing dog, scientists can take just the part of the dog that is useful -the molecules that are doing the sensing and integrate it with electronics to design a device for the
purpose.

5.4. FACEBOOKS FREE INTERNET USAGE


Benefits of Free basic usage

Will reduce the digital divide.


Free Basics allows customers to access selected social networks, and services like healthcare, education
and job listings from their phones without a data plan.

Drawbacks

It violates net neutrality, a concept that all Internet traffic should be treated equally. This will be
detrimental to the growing startup entrepreneurs, students, activists and tech employees flourishing in
India.
Free Basics developers cant innovate on technology without the permission of Facebook. There is a
need for unbiased, equal Internet that treats all developers same.
In Free Basics, Facebook can decide the content for the users on their behalf which leaves them with no
choice.

5.5. UNIVERSAL IMMUNISATION PROGRAMME FOR CERVICAL CANCER


The health ministry is going to introduce Human Papilloma Virus (HPV) vaccine in the universal immunisation
programme .

The virus is believed to be responsible for most cervical cancer cases


After breast cancer, cervical cancer is the second most common cancer among women in India.
National cancer registry data has registered around 90,000 cases for year 2013.

What is HPV?
HPV is a group of 150 viruses, known to cause warts or papillomas. Some can cause cancer, particularly cervical
cancer. HPV vaccine should be administered at 11-12 years of age.

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6. ENVIRONMENT
6.1. COP 21 DRAFT: PARIS AGREEMENT
The Paris Agreement, the biggest environment agreement ever, was adopted by more than 190 countries

The overall goal of the Paris agreement, to keep global temperature rise to a specified quantum
compared to pre-industrial levels, is pegged at either below 1.5C, or, as well below 2C.
India felt that a transparency and accountability regime should not treat rich and poor nations alike
India Position is based on logic that developing nation still lacks necessary technology to measure perils
of climate change. For example, India does not have the capacity to measure automotive emissions
based on vehicle use accurately, while the U.S. does that every year.

Salient feature of Draft

Developed country as Role model- Extent to which developing countries would effectively implement
their commitments would depend on developed countries living up to their own commitments on
financing, technology transfer and capacity building.
On peaking of greenhouse gas emissions- The discussion is on making it as soon as possible with the
caveat that peaking requires deeper cuts of emissions by developed countries and longer periods for
developing countries
Achieving zero GHG emissions growth by 2060-80 is proposed
Fund mobilisation - Appropriate pricing of greenhouse gas emissions in its many forms, is an important
instrument for the reorientation of investment and finance flows consistent with a pathway towards low
emission and climate resilient economies and societies.
Technology framework By providing overarching guidance to the work of the Technology Mechanism.
It would promote and facilitate enhanced action on technology development and transfer.
The agreement is much more comprehensive than the Kyoto Protocol which was limited to assigning
greenhouse gas emission reduction targets for a group of developed countries
It asks every country to make nationally determined contributions in the fight against climate change.
It also seeks to establish a mechanism by which the climate actions of all the countries can be
periodically monitored and evaluated to see whether the world was actually able to combat climate
change and whether the actions needed to be scaled up

Win- Win Situation for all

Developed Nation- The developed countries have ensured that henceforth climate actions would be
taken by every nation and not just them, as was the requirement in the existing climate framework
represented by the Kyoto Protocol of 1997.
Developing Nation- The developing countries were able to take heart from the fact that the allimportant principle of differentiation that developed nations, being primarily responsible for
greenhouse gas emissions, must take greater action to fight climate change has been retained, even
though in a diluted form
The island nations and least developed countries Most vulnerable to climate change were happy to
have forced the rest of the world to acknowledge the need to take a 1.5 degree path instead of the 2 degree
it is more comfortable with.

Few of contentious issues which remain unsolved are underneath

61

Long term quantified emissions reduction for a 2050 target


Finance for developing countries
Updated targets for countries based on stocktaking of carbon dioxide, equitable distribution of the
remaining carbon budget for the world.
Making explicit the responsibility of developing countries versus developed nations
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Binding targets: Countries have pledged their emission reduction targets. But these are only pledges. EU
and the US are strongly opposed to a legally binding road-map
Periodic Revision of Target- The emission reduction numbers dont add for now and they need to be
revised every 5 years or so. Developed countries dont accept any criteria that includes historical
accumulated emissions
Reporting action: After 2020 once the agreement comes in to force countries will have to report back
periodically how they are faring against their pledges. This could become the Trojan horse that brings
parity between the two without saying as much.
Developing country targets- most developing countries have made their targets for the Paris agreement
conditional on the nature of the Paris agreement as well as the delivery of finance and technology.
Developed countries want at least a part if not the full target from each developing country to be
enshrined unconditionally
Technology transfer: Developed countries oppose the proposals from different developing country
groups including India to address issues of intellectual property resources, future technology
development and an institutional arrangement for this under the Paris agreement.
Adaptation- Developed countries see the core agreement as only about reducing emissions and
accounting for these reductions

6.2. INDIAN LONG TERM ECOLOGICAL OBSERVATORIES (I-LTEO)

India announced a programme to open eight more long-term ecological observatories to study the
effects of climate change.
Would assess the health of eight different biomes (types of habitat)
To study long-term research findings on the changes that was happening due to climate change.
Objective is to scientifically monitor flora and fauna to assess how climate change is affecting natural
and closely associated human systems in agriculture and pastoralism.
Operational Area-Western Himalayas to Western Ghats; Eastern Himalayas to Andaman and Nicobar
islands; Central India to the Sundarbans; Jammu and Kashmir to Rajasthan and Gujarat.

6.3. INDIAN OCEAN WARMING AND ITS CONSEQUENCES

Recent studies have pointed out an increased warming over the Indian Ocean during the past halfcentury, the reasons for warming are not clear but the results have proved problematic for India.
Increased warming in the ocean enhances the large-scale upward motion of warm moist air over the
equatorial ocean.

Schematic illustration of the mean conditions (left) and weakening trend (right) of the monsoon
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This upward motion over the ocean is compensated by subsidence of dry air over the subcontinent
resulting in surplus rains over the ocean at the cost of the monsoon rains over land, thereby drying the
Indian subcontinent.
Decline in the marine phytoplankton in the Indian Ocean microscopic plants in the ocean which
sustain the aquatic food web, absorb the solar radiation thereby influencing climate processes and
biogeochemical cycles, particularly the carbon cycle.
Food security issues as large scale distribution of fishes are associated with the phytoplanktons
availability.

6.4. ENVIRONMENTAL CRIME IN INDIA


What is environmental crime?
As per National Crime Records Bureau (NCRB) it includes violations under only five laws:

the Forest Act, 1927;


Wildlife Protection Act, 1972;
Environment (Protection) Act, 1986;
Air (Prevention and Control of Pollution) Act, 1981;
Water (Prevention and Control of Pollution) Act, 1974 (as amended in 1988).

Reasons for under-reporting of environmental crimes in India

63

NCRB data suffers inadequate coverage of laws whose violation would constitute a crime against the
environment
Pollution control boards (PCBs) which deal with air and water pollution, do not have enforcement
officers, no mechanism to address complaints and have no policing functions. They just issue permits.
Police authorities are often not aware of the laws under various environmental acts and hence do not
record these as crimes under the Act.

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7. SECURITY
7.1. TERROR FINANCING
Terrorism finance (TF) has been termed as the life blood of terrorism, one of the most important factors
sustaining its continuing threat, both from within and without.
Recent Development

India along with major world economies participated in the first-ever global meeting being held in Paris
to discuss and evolve mechanisms to combat the clandestine and largely undetected terrorist financing
network of the Islamic State terror group. Aim of the meeting was to deal with subjects of money
laundering and combating the financing of terrorIt was Organised by Financial Action Task Force (FATF)
Secretariat office.

Objective:

To discuss actions jurisdictions are taking and need to take to combat the financing of the ISIS
To Broader opportunities to strengthen global efforts to combat the financing of terrorism

FATF- A background
The FATF is an inter-governmental body established in 1989 and is mandated to set global protocols and
standards to combat money laundering and other financial crimes with direct ramifications to terrorist acts
across the globe. India is a full-member of this reputed global body along with 33 other nations.

A report by the FATF early this year had underlined the complicated pattern of funding being
deployed to mobilise ISIS terrorists and in secretly moving their deadly weapons and ammunition
The report said its preliminary investigations found that the group was generating terror funds by using
illicit proceeds from occupation of territory, such as bank looting, extortion, control of oil fields and
refineries, kidnapping for ransom, donations including by or through non-profit organisations, fund
raising through modern communication networks.

7.2. UNSC RESOLUTION TO UT OFF FUNDING TO ISIS, AL-QUAEDA


UN Security Council recently adopted a resolution to cut off all sources of funding to ISIS and Al-Qaeda with
finance ministers from the member nations vowing to increase sanctions against the terror groups.

64

In the resolution adopted at the first-ever meeting of finance ministers, the 15-member body called for
enhanced actions, from closing financial system loopholes to stopping the abuse of charitable causes, as
well as updating the existing ISIS and Al-Qaeda Sanctions List.
The Council stressed that already existing resolutions mandating nations to ensure that financial assets
are not transferred to terrorists by persons within their territory, shall also apply to the payment of
ransoms to individuals, groups, undertakings or entities on the ISIS and Al-Qaeda Sanctions List
regardless of how or by whom the ransom is paid.
The resolution called for increased international cooperation in sharing information and closer
collaboration with the private sector to identify suspect transactions.
The Council also called on Member States to promote enhanced vigilance by persons within their
jurisdiction to detect any diversion of explosives and raw materials and components that can be used to
manufacture improvised explosive devices or unconventional weapons, including chemical components,
detonators, detonating cord, or poisons.

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Why restricting funding of ISIS is greater challenge:

Unlike other terror groups, ISIS derives a relatively small share of its funding from donors abroad.
Instead, ISIS generates wealth from economic activity and resources within territory under its control.
ISIS financing has evolved from seizing territory and looting bank vaults to leveraging more renewable
revenue streams: so far, ISIS has reaped an estimated USD 500 million from black market oil and millions
more from people it brutalises and extorts.

7.3. INDIAS STRATEGY TO DEAL WITH TERROR FINANCING AND


MONEY LAUNDERING
Why Important:
There are some instances under the scanner of various investigative agencies that indicate there may be links to
ISIS funds being routed from India, if not generated.

In the wake of the increased activities of terrorist groups around the globe, including ISIS, India had
recently reported to the FATF that it has frozen assets worth Euro 3 lakh (over Rs 2.12 core) of over
three dozen entities on charges of terrorist financing and money laundering of illicit funds
The Unlawful Activities (Prevention) Act, 1967(UAPA) and the Prevention of Money laundering Act, 2002
(PMLA) are effective instrumentalities to combat offences relating to Terrorist Financing and Money
laundering
The Unlawful Activities (Prevention) Act, 1967 has been strengthened by amendments in 2013 which
inter-alia includes enlarging the scope of proceeds of terrorism to include any property intended to be
used for terrorism, enlarging the scope of Section 17 relating to punishment for raising funds for
terrorist act by including within its scope, raising of funds both from legitimate or illegitimate sources by
a terrorist organization, terrorist gang or by an individual terrorist, and includes within its scope offences
by companies, societies or trusts.
The PMLA has also been strengthened in 2013 by incorporating the provisions relating to removing the
monetary threshold for schedule offences, strengthening confiscation and provisional attachment
powers with regard to money laundering investigation, covering new financial institutions and
designated non-financial business and professions within the scope of PMLA, enhancing the powers of
Financial Intelligence Unit (FIU) to access information from banks and financial institutions and
introduction of broad range of sanctions under PMLA including sanctions against designated Directors
and employees of reporting entities
A special Combating Financing of Terrorism (CFT) Cell has been created in the Ministry of Home Affairs
in 2011, to coordinate with the Central Intelligence/Enforcement Agencies and the State Law
Enforcement Agencies for an integrated approach to tackle the problem of terror funding
A Terror Funding and Fake Currency Cell was set up in the National Investigation Agency to investigate
Terror Funding cases.

Overview of Financial Intelligence Unit-IND:

FIU-IND is the central national agency responsible for receiving, processing, analyzing and disseminating
information relating to suspect financial transactions.
FIU-IND is also responsible for coordinating and strengthening efforts of national and international
intelligence, investigation and enforcement agencies in pursuing the global efforts against money
laundering and related crimes.
FIU-IND is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by
the Finance Minister.

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VISIONIAS
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CURRENT AFFAIRS
JANUARY 2016

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TABLE OF CONTENTS
1. POLITY AND GOVERNANCE __________________________________________________________ 6
1.1. Lodha Committee Recommendations ______________________________________________________ 6
1.2. Enemy Property Ordinance, 2016 Promulgated ______________________________________________ 7
1.3. Transport and Road Safety Bill, 2015 ______________________________________________________ 8
1.4. Black Spots in Road Safety _______________________________________________________________ 9
1.5. Portals for Bringing Transparency in Road Projects __________________________________________ 10
1.6. Centre to set up Road Safety Regulator ___________________________________________________ 10
1.7. Electoral Trust _______________________________________________________________________ 11
1.8. Election Commission Seeks Full Independence _____________________________________________ 11
1.9. Challenges with SPV in Smart Cities ______________________________________________________ 12
1.10. Nayi Manzil Scheme __________________________________________________________________ 13
1.11. Open Book Examination ______________________________________________________________ 14
1.12. Panel to suggest measures for the revamp of CBFC _________________________________________ 14
1.13. NHAI TO USE SATELLITE TECHNOLOGY ___________________________________________________ 15
1.14. India ranked 76th in CPI 2015 __________________________________________________________ 15
1.15. National Award on e-Governance _______________________________________________________ 16
1.16. River information system _____________________________________________________________ 16
1.17. Web Based Rail Track Management _____________________________________________________ 17
1.18. Bureau of Mines ties up with NRSC ______________________________________________________ 17
1.19. Government to relax mining lease transfer rules (MMRDA bill) _______________________________ 18
1.20. Kilkari Project _______________________________________________________________________ 18
1.21. Anubhav ___________________________________________________________________________ 19
1.22. Kerala Liquor Prohibition Policy- Supreme Court Verdict ____________________________________ 19
1.23. National Development Council (NDC) to be scrapped _______________________________________ 20
1.24. Merging of MOIA with MEA ___________________________________________________________ 20

2. INTERNATIONAL RELATIONS ________________________________________________________ 21


2.1. World Development Report 2016 ________________________________________________________ 21
2.2. TFA in services- Indias perspective _______________________________________________________ 21
2.2. Beijings Race for the Eurasian Heartland __________________________________________________ 23
2.3. West Asian Crisis Deepens Between Iran and Saudi Arabia ____________________________________ 23
2.4. China-Iran Relations ___________________________________________________________________ 24
2.5. 4th India-Africa Hydrocarbons Conference (IAHC) ___________________________________________ 25
2.6. First India Arab Ministerial Conference ___________________________________________________ 26
2.7. Mauritius to Exclusively Offer Bio Farming Technology to India ________________________________ 26
2.8. Why Crude Oil Prices are Falling? ________________________________________________________ 27
2.9. What Does a Brexit Means? ____________________________________________________________ 27
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2.10. India Approves Mou with Bangladesh to Set Up More Border Haats ___________________________ 27
2.11. Sri Lanka Begins Process to Draft New Constitution ________________________________________ 28
2.12. Japan-Russia Territorial Dispute ________________________________________________________ 28
2.13. India to Build a Satellite Station in Vietnam _______________________________________________ 29
2.14. Amendment in Nepal Constitution ______________________________________________________ 29
2.15. Naseem Al Bahr _____________________________________________________________________ 30
2.16. Saudi Arabia oil premium charge _______________________________________________________ 30

3. ECONOMY _______________________________________________________________________ 32
3.1. Fourth Industrial Revolution ____________________________________________________________ 32
3.2. Startup India Programme ______________________________________________________________ 33
3.3. Stand Up India SchEme ________________________________________________________________ 34
3.4. Pradhan Mantri Fasal Beema Yojna ______________________________________________________ 35
3.5. SEBI Panel Suggests Reforms to Grow Alternative Funds Industry ______________________________ 37
3.6. Recent Measures to Boost Sezs __________________________________________________________ 38
3.7. Easwar Panel ________________________________________________________________________ 38
3.8. IMF Reforms _________________________________________________________________________ 39
3.9. IMF Cuts Global Growth Forecast as China Slows ____________________________________________ 40
3.10. Index of Industrial Production __________________________________________________________ 40
3.11. Scope of DBT to Be Enlarged by Both Centre and States _____________________________________ 41
3.12. Global Talent Competitiveness INDEX ___________________________________________________ 41
3.13. CSR in India _________________________________________________________________________ 42
3.14. Devaluation of Chinese Yuan ___________________________________________________________ 43
3.15. Seed Funding Tax to Be Removed _______________________________________________________ 44
3.16. Rail Regulator to Set Fares, Ensure Fair Competition ________________________________________ 45
3.17. SpaceX: Space Start Ups_______________________________________________________________ 46
3.18. OxfAm Report on Inequality ___________________________________________________________ 46
3.19. Medium Term Debt Management Strategy _______________________________________________ 46
3.20. Conversion of Mudra into Bank_________________________________________________________ 47
3.21. Horticulture Statistics ________________________________________________________________ 47

4. SOCIAL ISSUES____________________________________________________________________ 48
4.1. National Family Health Survey __________________________________________________________ 48
4.2. Jallikattu Ban ________________________________________________________________________ 49
4.3. Need for Special Law for Child Rape (Failure of POSCO) ______________________________________ 50
4.4. Reservations for Women in Bihar Government Jobs _________________________________________ 51
4.5. Paternity Leave and Maternity Entitlements _______________________________________________ 52
4.6. Human Development Report 2015 _______________________________________________________ 53
4.7. Disability in India _____________________________________________________________________ 54
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4.8. Dalit Capitalism ______________________________________________________________________ 55


4.9. End of Ebola Epidemic _________________________________________________________________ 56
4.10. Kerala Becomes the First to Achieve 100% Literacy _________________________________________ 57
4.11. NATIONAL CENTRE FOR AGEING ________________________________________________________ 57
4.12. Balamurtham Programme _____________________________________________________________ 58

5. SCIENCE AND TECHNOLOGY _________________________________________________________ 60


5.1. Zika Virus ___________________________________________________________________________ 60
5.2. Space Parks: ISRO _____________________________________________________________________ 61
5.3. cansar Database ______________________________________________________________________ 61
5.4. Nano Technology and Superbugs ________________________________________________________ 61
5.5. Hydrogen Bomb ______________________________________________________________________ 62
5.6. HVDC Technology _____________________________________________________________________ 63
5.7. Opogenetics and Clarity ________________________________________________________________ 64
5.8. Cloud Computing AND Big Data__________________________________________________________ 64
5.9. Facebooks Free Basics Tussles With TRAI _________________________________________________ 65
5.10. Hisar Centre Second Institute to Clone Buffalo ____________________________________________ 66
5.11. Artificial Intelligence _________________________________________________________________ 66
5.12. Experimental Medicines Under the Exceptional Circumstances _______________________________ 66
5.13. 103rd Indian Science Congress and Technology Vision Document 2035 _________________________ 67
5.14. 23rd National Children Science Congress (NCSC) ____________________________________________ 68

6. INTERNAL SECURITY/LAW AND ORDER________________________________________________ 69


6.1. National Security Doctrine ______________________________________________________________ 69
6.2. Analysis of Pathankot Attack ____________________________________________________________ 69
6.3. Cooperatioon in Cybersecurity __________________________________________________________ 70
6.4. Natgrid _____________________________________________________________________________ 71
6.5. Tejas _______________________________________________________________________________ 72
6.6. Indian Reserve Battalion Forces _________________________________________________________ 73

7. ECOLOGY AND ENVIRONMENT ______________________________________________________ 74


7.1. International Solar Alliance (ISA)_________________________________________________________ 74
7.2. Bharat Stage VI Norms by 2020 __________________________________________________________ 74
7.3. Delhi's Odd Even Policy ________________________________________________________________ 76
7.4. Policy on Promotion of City Compost _____________________________________________________ 77
7.5. Stranded Carbon _____________________________________________________________________ 78
7.6. Bharat Innovation Fund ________________________________________________________________ 78
7.7. IMD Launches a System to Monitor Air risks and Black Carbon in Atmosphere ____________________ 79
7.8. Biodiversity Database for Urban India ____________________________________________________ 79
7.9. Ministry of Shipping Launches Project Green Port ___________________________________________ 80
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7.10. Initiatives Under Namami Gange Programme _____________________________________________ 80


7.11. Green Signal to 'Raptor MOU' __________________________________________________________ 81
7.12. Consultation on Biodiversity Finance Initiative Begins ______________________________________ 81
7.13. Snowflake Coral - A Serious Threat to Biodiversity _________________________________________ 82
7.14. Oceans to Have More Plastic than Fish by 2050 ____________________________________________ 82
7.15. Organic Farming _____________________________________________________________________ 82
7.16. El Nino and Warm Winter _____________________________________________________________ 83
7.17. Simultaneous Temperature Rise and Shrinkage of Glacier Ice Sheets at North Pole _______________ 84
7.18. Indian climate model to aid future IPCC Reports ___________________________________________ 84
7.19. Assessment of Cities under Swachh Bharat Mission (SBM) ___________________________________ 84

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1. POLITY AND GOVERNANCE


1.1. LODHA COMMITTEE RECOMMENDATIONS
Background

A sequence of events starting from the IPL 2013 spot-fixing scandal reached its logical conclusion when the
three-member Lodha panel submitted its report on the functioning of the BCCI to the Supreme Court on
January 4, 2016.
The report culminates the panels exhaustive investigations into
o How the game is run in the country
o What could be done to ensure that transparency and
accountability is the rule rather than exception.
The committee's 'Report on Cricket Reforms' is divided into four
parts
(a) In the first, the objectives of the committee are outlined.
(b) In second report, the problems associated with the BCCI- its
conflict of interest, corruption, lack of transparency, etc has
been identified and its solution has been recommended.
(c) The third part of the Report on Cricket Reforms is an
appendix containing the detailed questionnaire that was
provided to the BCCI and stakeholders.
(d) The fourth part is report on former IPL COO Sundar Raman in which committee has cleared former IPL
chief of wrongdoing in connection with the 2013 betting and spot-fixing scandal.
Key Recommendations

Distinct heads of concern areas for cricket

administration:
Structure: To resolve the issue of no proper representation of
Organization, structure and relationship
States the Committee proposed the solution in form of policy
Source and extent of jurisdiction
of One State One Member One Vote.
Offices, committees and elections
Governance: There are various issues like Concentration of
Commercial engagements, contracts
power, Lack
of
competence, Overlap
of
diverse
and services
functions, Zonal considerations, No representation to
Audit, accounts and finances
players and women, No independent voice, unlimited terms
Player welfare and dispute resolution
and tenures and No disqualifications. To resolve this
Conflict of interest
committee has recommended that governance of the BCCI
Oversight and transparency
must be decentralized.
Delinking IPL and BCCI: One of the important recommendation is to separate the IPL from the other
activities of the BCCI. The committee also proposed a revamp of the existing BCCI governing council (GC) and
its membership.
The committee also recommended the creation of three new positionsan ombudsman, an ethics officer
and an electoral officer.
Bring BCCI under Right to Information Act - People have the right to know the functions, facilities and other
activities of BCCI and it will also help in bringing transparency and accountability in BCCIs functioning.
Legalized betting The committee also recommended legalizing betting with strong safeguards. And even if
legalized for players and team officials, betting is a big no.
Players Association- It also recommended the establishment of players associations, which would offer
membership to all Indian international and most first-class cricketers who had retired not less than five years
ago.

Pros

The proposed measures could radically alter the way the BCCI functions and it will also improve its public
image and impart much-needed credibility.
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Recommendations such as restricted tenures, bar on holding more than one office at a time, limits on terms,
cooling-off periods between the holding of one office and another and steps to prevent conflict of interest
will be step in right direction if implemented in both spirit and letter.
One significant suggestion is that government servants and ministers be kept out of cricket administration.
Even if the political class as a whole is not barred, it will at least prevent influential politicians in government
eyeing the spoils of office in cricket administration.

Challenges

Its recommendation on legalizing the betting is a progressive one. However, its implementation, will hinge
on suitable local legislation across the country.
The BCCI will have to ensure strict adherence to the condition that players, managers, officials or anyone
associated with cricket are not allowed to participate in betting.
Recently, Sourav Ganguly led Cricket Association of Bengal (CAB) has decided to reject 10 out of the 21
Lodha Committee recommendations made by the Supreme Court.
Among the rejections are age and tenure issue and the recommendation that government officials can't be
the office bearers in BCCI or its affiliated units.

Way Forward:
The recommendations are progressive and are aimed at bringing transparency and effectiveness in the
administration of cricket body. However, Supreme Court should also seek the BCCIs view in this regard and try
to build a consensus for the better implementation of these recommendations.

1.2. ENEMY PROPERTY ORDINANCE, 2016 PROMULGATED


Why in news?
Recently, the President of India has promulgated the Enemy Property (Amendment and Validation) Ordinance,
2016 to make amendments to the Enemy Property Act, 1968.
Need

To ensure that the enemy property continues to vest in the Custodian,


appropriate amendments were brought in by way of an Ordinance in
the Enemy Property Act, 1968 by the then Government in 2010.
However, the ordinance lapsed in September 2010 and later introduced
bill was also lapsed because of completion of term of Lok Sabha.

Provisions of the Ordinance

What
constitutes
Enemy
Property?
Under the Defence of India
Rules framed under the Defence
of India Act, the Government of
India took over the properties
and companies of such persons
who had taken Pakistani
nationality due to partition of
India in 1947.
These enemy properties were
vested
by
the
Central
Government in the Custodian of
Enemy Property for India.

Once an enemy property is vested in the Custodian, it shall continue to


be vested in custodian as enemy property irrespective of whether the
enemy, enemy subject or enemy firm has ceased to be an enemy due
to reasons such as death etc.
Law of succession does not apply to enemy property.
There cannot be transfer of any property vested in the Custodian by an enemy or enemy subject or enemy
firm and that the Custodian shall preserve the enemy property till it is disposed of in accordance with the
provisions of the Act.

Impact of Ordinance

The above amendments to the Enemy Property Act, 1968 will help in plugging the loopholes in the Act to
ensure that the enemy properties that have been vested in the Custodian remain so and they do not revert
back to the enemy subject or enemy firm.
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Enemy Property Act, 1968 Provisions

The Enemy Property Act was enacted in the year 1968 by the Government of India, which provided for the
continuous vesting of enemy property in the Custodian.
The act authorized the Central Government of India to appoint a custodian for enemy property for India and
one or more deputy/assistant custodians as assistances.
There is also a provision which validates the appointments made under the Defence of India Rules 1962 and
1971.
The fees equal two percent on the gross income from the properties vested in the Custodian. The income
received by way of rent, interest etc. on securities is invested in the Reserve Bank of India.

1.3. TRANSPORT AND ROAD SAFETY BILL, 2015


Why in news?
Recently government has drafted a new TRANSPORT AND ROAD
SAFETY BILL, 2015 to reduce road accidents by at least 50%.
Aim of bill

Road accidents are one of the biggest killers


in India. Over 10 lakh people have been killed
in road accidents in India in the last 10 years
but the country is yet to have a stringent law
on the issue.

To provide a scientifically planned and evolving framework for


the safety of all road users in India, including vulnerable road users.
To enable the seamless development of a secure, efficient, cost-effective, sustainable and inclusive transport
system for the movement of passenger and freight in the country.

Salient features
1. Technology: It proposes adoption of new technology and standards with improved vehicle design for safer
travel. It also intends to make spare parts cheaper.
2. Funding: It proposes innovative financing mechanism for funding safety programs which would save over
200,000 lives in first 5 years due to reduction in road traffic accident deaths.
3. Motor Vehicle Regulation & Road Safety Authority of India: This Independent Agency will set regulations
for motor vehicle and road safety. It will finance road/vehicle safety program and will be Accountable to
Parliament.
4. Motor Vehicle Regulation: The bill sets up appropriate regulation regarding vehicles.
5. Unified Driver Licensing System: The bill proposed a simpler transparent, single window driver licensing
system that is based on biometric to avoid duplication
6. Unified Vehicle Registration System: It proposes a Unified Vehicle Registration System integrating all
stakeholders like manufacturer, owner, transport authority, insurer, and enforcement agency all in one ecosystem with private sector participation in establishing fitness certification centres to create more jobs.
7. Road Safety & Traffic Management :
Electronic enforcement in urban clusters using modern safety technologies with special emphasis for
safety of vulnerable road users

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8.

9.

10.

11.

12.

13.

Creation of Motor Accident Fund for immediate relief to accident victim special emphasis on safety of
school children and security of women.
National Road Transport & Multimodal Coordination Authority:
Creation of National Road Transport & Multimodal Coordination Authority for improving quality of road
transportation,
Focus on developing integrated transport systems & multi-modal hubs and feeder system and last mile
connectivity for people friendly mobility.
Public passenger Transport:
Increasing the share of public passenger transportation,
Two-tier permit system: national and intrastate permit and
Developing & regulating public passenger transport schemes and developing & regulating public
passenger transport schemes.
Goods Transport & National Freight Policy:
Simplified permits and single portal clearances,
Identification and development of freight networks,
Address bottlenecks concerning trucking industry and increase in logistics efficiency will reduce inflation
and enable Indian manufacturing to become globally competitive.
Infrastructure & Multimodal Facilitation:
Infrastructure for efficient passenger and goods movement,
Specific provision of infrastructural needs for vulnerable road users,
Integration across various modes of transport.
Offences and Penalties:
Graded penalty point system with enhanced fines will act as a deterrent and improve traffic condition by
reducing road rage.
It also seeks to come down heavily on traffic offenders and proposes steep penalties of up to Rs. 3 lakh
along with a minimum 7-year imprisonment for death of a child in certain circumstances, besides huge
fines for driving violations.
Highway Traffic Regulation and Protection Force: for the purpose of effective policing and enforcement of
traffic regulations on highways, an armed force of the State to be called the Highway Traffic Regulation and
Protection Force.

Q. What ails Indias road transport economy? Suggest measures of remedy. (CSE MAINS 2004)
Q. Technological changes have brought in a major shift in the use of roads as transport corridors in India. How far do you
agree with this view? (CSE MAINS 2007)
Q. National urban transport policy emphasizes on moving people instead of moving vehicles. Discuss critically the success
of various strategies of the government in this regard. (CSE MAINS 2014)

1.4. BLACK SPOTS IN ROAD SAFETY


Why in news?
There has been increasing concern over about five lakh road accidents in the country every year in which about
1.4 lakh people lose their lives. Majority of these have been linked to Black spots.
What are Black spots?
They are road locations that have a record of large numbers of crashes. There are often common problems
at these sites which can be treated with engineering methods.
Reason for Black spots is noncompliance with Road Safety Norms during design, construction and operation
of roads including National Highways.
Below are most common Black spots:
o Sharp drop or corner in a straight road so oncoming traffic is concealed
o Hidden junction on a fast road
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o Poor or concealed warning signs at cross-roads.


325 most dangerous black spots have been identified in 13 States. These spots account for about 90% road
accidents.

Steps taken by Government in this issue:

A website has been launched to help in identifying black spots where accidents take place frequently. The
people can send information about such spots to the Ministry of Road Transport & Highways which will
further take up the issue with the concerned authorities.
Work on ten black spots in Delhi has being taken up.
Rs. 11,000 crore has been earmarked in the next five years to fix black spots across the country

1.5. PORTALS FOR BRINGING TRANSPARENCY IN ROAD PROJECTS


What is the news?

NHIDL will come up with two more portals 'Infracon' and 'ePace' that will provide all necessary details
regarding highway projects.
Centre also launched INAM-PRO platform for infrastructure and material providers.

INFRACON
It will have all the information
about individual consultants and
consultation firms
It would serve as a platform for
infrastructure consultants where
individual consultants as well as
consulting firms could register
themselves.
There credentials would be made
available there and can be
accessed by people
It will make available the largest
pool of consultants in the field.

INAM-PRO
Portal will enable
central or state
government
agencies
register
and procure cement
directly
from
suppliers on cheaper
rates on "cash and
carry basis
Already 33 cement
firms and 107 plants
are registered with
committing cement
at cheaper rates for
projects.

e-PACE
It will help people know about
highway projects status, funding and
other details
About NHIDL:
NHIDCL, incorporated in July 2014 as a
fully owned company of the Ministry of
Road Transport & Highways to fasttrack highways construction in border
areas and tough terrains has been
instrumental to develop Infracon web
portal.

Application:

All necessary details including project report and current status and all important data will be available on
the platform.
Big boost to Make in India (Ease of doing business) using Digital India applications
Will promote transparency and efficiency in highway projects which are one of the major reasons for stalled
projects and rising banks NPA

1.6. CENTRE TO SET UP ROAD SAFETY REGULATOR


The Centre is planning to expedite a proposal to set up a road safety regulator in India.
Need

10

In India, around 1.5 lakh people are killed in road accidents every year.
In most of the urban areas, there are many potholes on the roads which lead to many accidents in cities.
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Last year Center has awarded contracts to build approximately ten thousands kilometers of roads in India so
effective monitoring is needed to ensure the quality construction.

Benefits

It will push automobile companies to introduce airbags in economy cars.


It will also push states to conduct safety audits of state highways and district roads.
It will be helpful in ensuring road safety norms in India.
It will also ensure the effective maintenance of the roads.

1.7. ELECTORAL TRUST


What is Electoral Trust?

Electoral Trust is a company or a non-profit company created in


Election Commission of India is a
India under Section 8 of the Companies Act for orderly receipt of
permanent Constitutional Body. The
the voluntary contributions from any person and for distributing
Election Commission was established in
the same to the respective political parties, registered under
accordance with the Constitution on 25th
Section 29A of the Representation of People Act, 1951.
January 1950. Originally the commission
Examples of Corporate Trusts: Bharatiya Socialist Republican
had only a Chief Election Commissioner.
It currently consists of Chief Election
Electoral Trust, Bajaj Electoral Trust and Jankalyan Electoral
Commissioner
and
two
Election
Trust, Progressive Electoral Trust (Tata), Peoples Electoral Trust(
Commissioners.
Reliance Industries), Janhit Electoral Trust, Satya Electoral Trust
Corporates are entitled for tax benefits with regard to electoral trusts subject to certain conditions.
The benefits can be availed only if the trusts distribute 95% of the total contributions received in a particular
fiscal to registered political parties in that same year itself.
These entities are barred from receiving donations in cash. Foreign citizens are not allowed to contribute
money to the trusts.

Objective

The objective of the Electoral Trust is not to earn any profit or pass any direct or indirect benefit to its
members or contributors.
The sole objective is to distribute the contributions received by it to the political party concerned.
This is a mechanism for bringing transparency and sanity in the political party funding.

Why do corporates and politicians prefer electoral trusts?

It spares them the embarrassment of baring their political leanings (maintaining anonymity).
It also spares them the resultant pain of retribution by the political party not benefiting from the companys
munificence.
Even Political parties lack anonymity.

1.8. ELECTION COMMISSION SEEKS FULL INDEPENDENCE


Why in news?

11

The Election Commission of India (ECI) has sought complete independence from government control in a
recent meeting with government.
At present only Chief Election Commissioner has security of tenure
Also its budget is not a charged expenditure, but is voted by the Parliament.

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Demands made by ECI

It has demanded for constitutional protection for all three of its members as opposed to just one at present.
Its two Election Commissioners can be removed by the government on the recommendation of the Chief
Election Commissioner.
It also demanded a provision either in law or by some government resolution that the senior most EC should
be automatically elevated as CEC in order to instill a feeling of security in the minds of the ECs and that they
are insulated from executive interference in the same manner as CEC.
It has also sought absolute financial freedom from the Law Ministry. Like the CAG and UPSC, the ECI wants
its budget to be charged to the Consolidated Fund as opposed to the current practice of being voted and
approved by Parliament.
It has also proposed an independent secretariat for itself with which it will not have to depend on DoPT to
appoint its officers. If it is approved by the Law Ministry, the poll panel will be free to frame its own
recruitment rules and shortlist and appoint officers on its own. It can then also draw competent
professionals and experts from the job market.
It has pushed for the introduction of totaliser machines for counting of votes and multiple cut-off dates for
voter registration. The totaliser machine increases the secrecy of voting by counting votes polled at 14
polling booths together, as against the current practice of announcing booth-wise results. According to the
poll watchdog, the identification of area-wise voting trends could encourage candidates and political parties
to be vindictive with voters of those areas who did not vote for them.

1.9. CHALLENGES WITH SPV IN SMART CITIES


Apart from criticism on the quality of proposals and public participation, there were indications of a few cities
hesitant to submit their proposals.

Reasons for setting up SPVs


o

To ensure objective and efficient decision making,


independent of municipal councils, which are subject to
local politics. The Smart Cities Mission (SCM) guidelines
mandate an equal share of equity contribution by the
state government and urban local body, thereby making
them the majority shareholders.

Concerns regarding Special Purpose Vehicle (SPV), which is


to be mandatorily constituted for the implementation of
their respective Smart City Plans.
o

The absence of clarity on specific projects and assured revenue streams,


Combined with a lack of management control, may reduce the attractiveness of SPVs for private
investors.

Regulatory
o

12

Private sector led seen as defeating essence of local self-governance and bypassing the elected
municipal council.
SPV may be headed by a bureaucrat, which is a concern for local representation.

For private sector


o
o

An SPV is a legal entity created for a specific


purpose, which can theoretically be shut
down after the specified purpose has been
achieved.
The major advantage of an SPV is that it
allows investors to limit their risks and
maximize profits, and bypass cumbersome
legal and regulatory issues.

For Local Bodies

WHAT IS A SPV?

Criteria: The SCM guidelines stipulate that government funding can only be used for projects that have
public benefit outcomes. Criteria to decide the degree of public benefit of projects is unclear.
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Convergence: The manner in which a smart city SPV interacts with the implementing agency for HRIDAY,
and how two projects under the two separate programmes complement each other, is yet to be seen.
For example, Varanasi is included under both SCM and the Heritage City Development and
Augmentation Yojana (HRIDAY).

Solutions:
o

o
o
o

An important first step would be to build safeguards to protect the democratic nature of governance
structures. A robust governance structure, which allows for sharing of power and financial resources
between urban local bodies and the private sector stakeholders, would go a long way towards assuaging
fears.
Government should clarify the financial nature of SPVs and how the private sector can contribute
effectively.
Critical issues of capacity and skill building for local bodies need to be addressed in parallel.
Matters related to intellectual property rights, open standards and technology transfer should be
enshrined at the highest level of government since it is difficult for individual urban local bodies to
negotiate with private parties.

1.10. NAYI MANZIL SCHEME


Why in News?

Recently, the Union government and the World Bank signed a $50-million credit agreement for Nai Manzil
project.
The Scheme is aimed at helping young people from minority communities complete their education and
improve their employment opportunities.
Recently, this scheme has been launched for the first time in Jammu and Kashmir by the Minister of Minority
Affairs.

Importance

According to the World Bank, around 20 per cent of those between 17 and 35 years of age from minority
groups such as Muslims, Parsees, Jains, Buddhists, Christians, and Sikhs are out of the labour force.
So to harness Indias demographic dividend completely it is important that all young people from all sections
of society are equipped with the education and skills needed to make them productive members of the
economy.

Features of the scheme

13

This scheme is launched by the Ministry of Minority Affairs in August 2015.


The aim of the scheme is employment generation of the youths and also extending loans for opening
enterprises.
The scheme will address educational and livelihood needs of minority communities in general and Muslims
in particular as it lags behind other minority communities in terms of educational attainments.
The scheme is intended to cover people in between 17 to 35 age group from all minority communities as
well as Madrasa students.
The scheme would provide bridge courses to the trainees and get them Certificates for Class XII and X
through distance medium educational system and at the same time also provides them trade basis skill
training in 4 courses Manufacturing, Engineering, Services, Soft skills.
Minimum 30% seats are earmarked for minority girls.
It includes a Non-residential programme of 9-12 months duration involving a Basic Bridge Programme (For
Class VIII or Class X) for their education, along with training in trade based skills for sustained
livelihood/gainful employment.
The scheme covers the entire country.
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1.11. OPEN BOOK EXAMINATION


Why in news:
Centre urged state level and central board schools to consider Open Text Based Assessment (OTBA) at board
level after the recommendation of eight member committee.
WHAT IS OPEN BOOK EXAMINATION:

Open book examination is a system of assessment in which students can refer to their notes or textbook
while answering the question.
Examinees are expected not to merely reproduce textbook material, but to interpret it in the context of
specific question which require conceptual understanding.

PROS

More clarity of concepts for students, this would develop their cognitive skills.
More focus on application aspect than mugging the curriculum.
Less anxiety and fear during examination.
Understanding of application would make students aware socially and environmentally.

BOTTLENECKS

Capacity building of teachers is required in framing relevant questions to judge the understanding of
students, and shift away from current mechanical teaching and evaluation process.
Since education is in state list, hence state boards reluctance or delay in implementing OTBA could be
problematic.
Culturally in India, since ancient times merit has been judged through rote learning. Hence, acceptance in
the society towards OTBA would need behavioral change.

1.12. PANEL TO SUGGEST MEASURES FOR THE REVAMP OF CBFC

Government has set up a panel headed by Shyam Benegal to suggest measures for the revamp of the
Central Board of Film Certification (CBFC).
The CBFC which was constituted on the basis of the Cinematograph Act, 1952, needs radical revision in a
world where the idea of state censorship has few takers.
The Justice Mukul Mudgal Committee in 2013 had also inquired into similar issues and submitted a report
after conducting extensive consultations with stakeholders.
The panel gave recommendations various issues, including certification and the selection of members to
the CBFC, another contentious area since governments tend to use the board to disburse patronage.
Hence, setting up of a new panel in this regard is a step in right direction and government should also ensure
that panels recommendations are implemented properly.

Central Board of Film Certification (CBFC)


It is a statutory body regulating the public exhibition of films under the provisions of the Cinematograph Act
1952.
Films can be publicly exhibited in India only after they have been certified by the Central Board of Film
Certification.
It assigns certifications to films, television shows, television ads, and publications for exhibition, sale or hire
in India
The Board consists of non-official members and a Chairman (all of whom are appointed by Central
Government) and functions with headquarters at Mumbai.

14

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1.13. NHAI TO USE SATELLITE TECHNOLOGY

To monitor national highways and road assets,


What is geospatial technology/remote sensing
Government has decided to use geospatial technology
centre
and Unmanned Aerial Vehicles (UAV).
Geospatial technology refers to all the technologies
Govt. signed MOUs with Remote sensing Centre and
like GPS, Remote Sensing etc. which are used to
NECTAR for the purpose.
acquire, manipulate and store geographic
A 24/7 technical centre to be setup to provide project
information.
specific inputs to engineers using these technologies.
Remote Sensing Centre is an organization under
ISRO with responsibility of data analysis of several
It will be useful in providing inputs in highway and
satellite images. It is located in Hyderabad
infrastructure projects for effective and precise

North East Centre for Technology Application and


preparation of detailed project report, upgrade, road
Research (NECTAR), headquartered at Shillong is
widening and monitoring of under construction sites.
responsible for developing niche technology for
It will help in quick completion of infrastructure
development purposes.
projects.
It will help in quick identification of problematic area using drones, course correction would then be precise
and faster.

1.14. INDIA RANKED 76TH IN CPI 2015

Berlin based Transparency International's Corruption


Perceptions Index (CPI) 2015 released on Wednesday shows
that India has moved up in rank from 85th position to 76th.
India's score in the Corruption Perceptions Index (CPI) for 2015
remained unchanged at 38 as it was in the previous year.
India shares its rank along with six other countries: Brazil,
Burkina Faso, Thailand, Tunisia and Zambia.
The number of countries ranked in 2015 was 168 against 174
nations in 2014.

Global Scenario:

What is corruption perceptions index?


CPI, the most widely used indicator of
public sector corruption worldwide, is a
composite index that combines the
results of surveys and assessments of
corruption, collected by a variety of
reputable institutions including the
World Bank and the World Economic
Forum.
It looks at a range of factors like whether
governmental leaders are held to
account or go unpunished for corruption,
the perceived prevalence of bribery, and
whether public institutions respond to
citizens needs.
As per the scoring system adopted,
higher the score points on a scale of 0100, lower is the corruption in that
country.

1. Globally, Denmark retained its position as the least corrupt


country for the second year running (with its latest score of 91
points).
2. Next in line are Finland and Sweden with scores of 90 and 89
points respectively.
3. The big decliners in the past four years include Libya, Australia,
Brazil, Spain and Turkey.
4. The big improvers include Greece, Senegal and UK.
5. Overall, two-thirds of the 168 countries studied scored below 50, and the global average stood at 43.
6. China fared worse than India and Brazil at rank 83 with a score of 37.
7. TI has also noted that Pakistan is the only country among the SAARC countries, to have improved its score
this year, though its rank remains poor at 117.
Neighbourhood Scenario:

15

Barring Bhutan ranked 27, which with a score of 65 fares much better than India, other neighbouring
countries continue to have a poor record.
While China at rank 83 and Bangladesh at rank 139 have reported no improvement,
Scores of Pakistan, Sri Lanka and Nepal have increased marginally over the past year

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Observations of Transparency International:

Top country performers share key characteristics such as:


o high levels of press freedom;
o access to budget information so the public knows where money comes from and how it is spent;
o high levels of integrity among people in power;
o Judiciaries that don't differentiate between rich and poor, and that are truly independent from other
parts of government.
The report also says 68% of countries worldwide have serious corruption problem and half of the G20 are
among them.
64 countries had improved their score while only 53 declined. The rest remained unchanged.
Even globally, there seemed to be an overall improvement in corruption alleviation with both the United
States and United Kingdom making their best rankings ever

1.15. NATIONAL AWARD ON E-GOVERNANCE

The Employees Provident Fund Organisation has won the National Award on e-Governance 2015-16 for
launching the Universal Account Number (UAN).
The EPFO won the gold award in the innovative use of technology in e-governance category.

Employees Provident Fund Organisation

The Employees Provident Fund Organization is a statutory body, is one of the largest social security
organizations in India in terms of volume of financial transactions undertaken and number of covered
beneficiaries.
It works under the overall aegis of the Ministry of Labor and Employment.
It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance
Scheme.
These schemes cover Indian workers as well as International workers (for countries with which bilateral
agreements have been signed.

UAN Scheme

On 1 October 2014, Prime Minister of India launched universal account number for Employees covered by
EPFO to enable PF number portability.
Through UAN, active employees are provided a universal number which can be linked to various provident
fund account numbers provided to them while working in different organizations.
A single account number can be used through all of workers employments with various organizations.
The online portal allows a worker to view his provident fund balance on a real-time basis without going
through the employer again and again.

1.16. RIVER INFORMATION SYSTEM


Why in news?

16

Union Minister of Shipping, Road Transport and Highways


inaugurated the River Information System (RIS) System on 06th
January.
It will facilitate safe and accurate navigation on National
Waterway 1 on the Ganges River.

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RIS are modern traffic management


systems enhancing a swift electronic
data transfer between water and shore
through in advance and real time
exchange of information.

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Salient features

It is being implemented under the overall responsibility of Inland Waterway Authority of India, a statutory
body administered by the Ministry of Shipping.
RIS aims to streamline the exchange of information between waterway operators and users.
This would facilitate:
o Enhancement of inland navigation safety in ports and rivers.
o Better use of the inland waterways
o Environmental protection
RIS enables achievement of safe and efficient inland water transport by avoiding Ship- to - Ship collisions,
Ship - Bridge collisions and Groundings.
Installation of an efficient and effective River Information Service (RIS) system on the Sagar- Farakka stretch
of NW-1 is akin to the systems under operation in countries like the Netherlands, Belgium, Germany, China &
USA.

1.17. WEB BASED RAIL TRACK MANAGEMENT


Why in news?
In a major step towards digitization, the Indian Railways on Monday launched a web-based system to monitor
track maintenance on a real-time basis by replacing more than a lakh registers related to it.
Present System:
Management of track maintenance is done largely manually.
It involves handling of huge volumes of data statistics as well as analysis of various measurement and defects
and planning, deployment of large resources.
The web-based management of track maintenance will be implemented in all the 68 divisions of the Indian
Railways.
Various activities such as track inspection, monitoring and maintenance will now be done on the e-platform.
The system will be cost and time saving.
The system will give alerts through SMS and e-mails to the concerned officials in the Railways.
This system is designed for:
o Decentralized data capturing.
o Speedy information dissemination.
o Centralized data keeping and analysis.

1.18. BUREAU OF MINES TIES UP WITH NRSC

17

The Indian Bureau of Mines has signed a memorandum of


Bhuvan
understanding (MOU) with the National Remote Sensing Centre
A software application which allows users
of the Department of Space for monitoring mining activity
to explore a 2D/3D representation of the
through satellite technology.
surface of the Earth. The browser is
As part of the MoU, the IBM would set up an exclusive remote
specifically tailored to view India, offering
sensing cell under the technical guidance of the NRSC at its
the highest resolution in this region and
providing content in four local languages.
offices in Nagpur and Hyderabad.
The cell will utilize Bhuvan-based services for monitoring mining
activities as also for development of mobile app for field data collection to verify ground realities with
respect of approved proposals.
The NRSC would carry out a pilot project to demonstrate the feasibility of using high resolution satellite
imagery in monitoring the changes over a period of time in select group of mines.
The MoU paves the way for sustainable development and responsible use of natural resources.
The departments concerned could leverage technology for near real time monitoring of the assets and
ascertain whether the mining licensee was indulging in any irregularities.
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It will also study the feasibility of utilizing technology for restoration of the closed mines and areas where
mining activities took place.
The MoU envisaged training for the IBM staff in using the technology and this would be subsequently
extended to the State Governments in the course of time.
The MoU was significant for the IBM in the context that the officials could now monitor the activity through
satellite technology instead of physical inspection every time.
Technological intervention would keep check on illegal activities.
It could also be utilised for research and development in mining.

1.19. GOVERNMENT TO RELAX MINING LEASE TRANSFER RULES


(MMRDA BILL)
Why in news?

The government plans to enact a law that will allow companies that received mining licences without having
gone through the auction process to transfer these leases
This move will make mergers and acquisitions (M&As) easier in the steel cement, and metals sectors.
Last year, the government brought in the Mines and Minerals (Development and Regulation) Amendment
Bill, 2015, replacing a 1957 legislation, and said mining licences could only be auctioned.

Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016

It would amend the Mines and Minerals (Development and Regulation) Act, 1957 to allow the transfer of
mining leases granted otherwise than through auction.
This would facilitate banks and financial institutions to liquidate stressed assets where a company or its
captive mining lease is mortgaged.
The transfer provisions will also allow mergers and acquisitions of companies and facilitate ease of doing
business for companies to improve profitability and decrease costs of the companies dependent on supply of
mineral ore from captive leases.
The transfer of captive leases would be subject to the consideration of enforcing Performance Security, Mine
Development and Production Agreement (MDPA), and realization of an appropriate amount, if any, if found
feasible at the time of framing terms and conditions.

Benefits

This will help a lot of mines to come into production, which were earlier held up because the original lease
holder had difficulties in developing them and could not transfer to others.
This would benefit a lot of mines that are at different stages of development.
The existing restriction on transfer of mines not allotted through an auction had also led to lenders funds
getting stuck in projects. The move to allow transfer of mines will speed up consolidation in the industry.

1.20. KILKARI PROJECT


Why in news
Kilkari, a mobile voice message service will be launched by Central Government soon.
Salient Features of the Scheme

18

This service will deliver weekly messages to families about pregnancy, family planning, nutrition, childbirth
and maternal and child care.

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The database for the Kilkari programme will be taken from the successful Mother and Child Tracking System
(MCTS) to monitor pregnant women and babies.
Every woman registered with MCTS will receive weekly messages relevant to the stage of pregnancy and age
of the infant.
In all, 72 free audio messages, each of about two-minute duration, will reach targeted beneficiaries from the
fourth month of pregnancy until the child is a year old.
In the first phase, the Kilkari application is expected to benefit 1.84 crore pregnant women/newborns in
Jharkhand, Odisha, UP, Uttarakhand and in some districts of Madhya Pradesh and Rajasthan.
The messages will be delivered in languages chosen by the user. In phase one, scheme will be launched in
Hindi, Odiya and hopefully Santhaali and Chhotanagpuri.
In phase two, it will be various dialects of Rajasthan, and then we will extend to other languages.
The Bill and Melinda Gates Foundation has provided the mobile phone application for Kilkari and mobile
academy.
In Bihar, same scheme has been already launched as a paid service.

1.21. ANUBHAV

The Department of Pension & Pensioners welfare has launched online software -Anubhav.
It will showcase the outstanding work by retiring employee and sharing experience of working with the
Government.
It will also provide facility to upload recorded voice message by the retiring employee.
Over a period of time, this will create a wealth of institutional memory with replicable ideas and suggestions.
It will also act as motivator for serving employees.
This would provide an excellent opportunity to harness the resource of retiring employees for voluntary
contribution to nation building post retirement.

1.22. KERALA
VERDICT

19

LIQUOR

PROHIBITION

POLICY-

SUPREME

COURT

The Supreme Court has approved Keralas new liquor policy that prohibits drinking in public and restricts
serving of alcohol to five-star hotels.
While delivering the order, Supreme Court has also reminded all state governments that the constitution
places a responsibility on them to at least contain, if not curtail, consumption of alcohol.
Courts view was that the prices of alcohol in five-star hotels is usually prohibitively high, which acts as a
deterrent to individuals going in for drinking and made an exception in favour of five-star hotels because of
the interest of tourism sector in state.
Kerala, accounts for nearly 14 per cent of the countrys liquor consumption.
Alcohol prohibition in India is in force in the states of Gujarat, Nagaland and parts of Manipur as well as in
the Union Territory of Lakshadweep. Bihar has announced a ban on alcohol sale starting 1 April 2016.
Article 47 (Part of Directive Provision of State Policy) states that the State shall endeavor to bring about
prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are
injurious to health.
The policy led to the closure of over 700 bars and restricted liquor availability to nearly 20 five-star hotels.

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1.23. NATIONAL DEVELOPMENT COUNCIL (NDC) TO BE SCRAPPED

Union government has decided to scrap National


Development Council.
Government also passed a resolution for transferring its
powers to the Governing Council of the NITI Aayog.

Reasons for scrapping NDC

Prior to NITI Aayog, states' role was limited to the National


Development Council and annual interaction during Plan
meetings.
However, after creation of NITI Aayog, state governments
are expected to play a more significant role than they did in
the Planning Commission. They are directly involved in
decision making in NITI Aayog, because of this, role of NDC
has become less important and redundant.
Hence, present government has decided to scrap the NDC
which is a step in right direction keeping the consistency in
decision making and policy implementation.

What is NDC?
National Development Council (NDC) was
setup in 1952 by an executive order, served as
the highest decision making authority in the
country on development matters.

1.24. MERGING OF MOIA WITH MEA

20

Prime Minister has approved the long-awaited merger of the Ministry of Overseas Indian Affairs (MOIA) with
the Ministry of External Affairs (MEA).
Substantial work of MOIA is done through External Affairs missions abroad so there was point in having two
different ministries for the same staff.
It will help in preventing duplication and delay in various works.
It will help in efficient functioning of the ministry.

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2. INTERNATIONAL RELATIONS
2.1. WORLD DEVELOPMENT REPORT 2016

World Bank published its annual World Development Report (WDR). It explores the impact of the internet,
mobile phones, and related technologies on economic development. It proposes policies to expand
connectivity, accelerate complementary reforms in sectors beyond information and communication
technology (ICT), and address global coordination problems.
The 2016 WDR issue titled Digital Dividends,
noted that almost 1.063 billion Indians were offline
even though India ranked among the top five
nations in terms of the total number of Internet
users, along with China, the U.S., Japan and Brazil.
Growth, jobs, and services are the most important
returns to digital investments. They are referred as
digital dividends.
WDR pointed reasons for digital dividends not
spreading rapidly. First, nearly 60 percent of the
worlds people are still offline and cant fully
participate in the digital economy. There also are
persistent digital divides across gender, geography,
age, and income dimensions within each country. Second, some of the perceived benefits of the internet
are being neutralized by new risks. Vested business interests, regulatory uncertainty, and limited
contestation across digital platforms could lead to harmful concentration in many sectors.
Report argues that Digital investments need the support of analog complements: regulations, so that
firms can leverage the internet to compete and innovate; improved skills, so that people can take full
advantage of digital opportunities; and accountable institutions, so that governments respond to citizens
needs and demands. Digital technologies can, in turn, augment and strengthen these complements
accelerating the pace of development.
The report concludes that Digital development strategies need to be broader than ICT strategies.
Connectivity for all remains an important goal and a tremendous challenge. But countries also need to
create favorable conditions for technology to be effective.
When the analog complements are absent, the development impact will be disappointing. But when
countries build a strong analog foundation, they will reap ample digital dividendsin faster growth, more
jobs, and better services.

2.2. TFA IN SERVICES- INDIAS PERSPECTIVE

21

India is pitching aggressively for TFA in services to the WTO.


The Mode 1 negotiations pertain to
India considers free movement of professionals (Via Mode 1 and
business process outsourcing, which
Mode 4) is in the interest of India and the world.
are generally known as cross-border
TFA in services will ensure liberalised visa regime such as multiple
services
entry visas, visa-free travel for foreign tourists and long term

Mode 4 negotiations provides for


visas for business community.
movement of natural persons
Beside that India is also looking at data privacy hurdles.
India wanted to be recognised as a data secure country as it is
important for meaningful access in cross border supply (Mode 1)
Data secure status has been a highly contentious issue in bilateral investment and trade negotiations with
the European Union.

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Why India needs TFA in Service sector

India is very strong in the services area as the sector contributes over 50 per cent in the countrys economic
growth.
A special initiative on services sector is needed. To achieve this, it is imperative to put in place a simple and
transparent regulatory framework that encourages growth in the services sectors.
To boost export of services India is working on reform measures in education and legal services.
India is working on garnering support on the issue by holding meetings with like-minded Nations.

What is TFA?

Trade facilitation agreement, is aimed at streamlining customs rules and procedures across the member
nations and reduce transaction cost by expediting trade flows, has been pushed by developed countries.
However it is yet to be implemented as it will come into effect only when two-thirds of the member nations
ratify it. As of now 63 countries of the 162 nations have ratified it while India is yet to ratify it.

Non-issues at WTO talks

A global agreement to lower trade barriers under Doha Round


negotiations is supposed to take place into the WTO.
India firming up a strategy to prevent attempts by rich nations to
introduce new pro-corporate issues.
India will make it clear that discussions on any new issue can take place
only after resolving all the outstanding matters related to the Doha
Round talks.

What are new pro-Corporate issues?

Of which the rich nations have superior standards or rules than the
developing and poor countries.
These include global value chains, e-commerce, labour, climate-related
trade (such as environmental services and goods), competition policies,
investment pacts, government procurement and state-owned enterprises.

What are the outstanding


issues?
An
effective
Special
Safeguard Mechanism (or a
tool to help developing
countries
protect
the
interests of their poor farmers
by temporarily increasing
duties to counter farm import
increase and price fall).
A permanent solution for the
issue of public stockholding
for food security purposes.

Why India is opposing such move

22

The developing nations including India feel these standards or rules may become non-tariff barriers,
In turn it will hurt their exports to rich nations
The rich nations will be able to indirectly open up the developing markets through an agenda that includes
'new issues
India, along with other developing countries, especially most members of the G-33, LDCs, the Africa Group
and the ACP, wanted a reaffirmation of the mandate of the Doha Round.
India had opposed the declaration brought out after the WTOs ministerial conference (its highest decision
making body) in Nairobi last month as it did not include measures primarily meant for improving trade
prospects of developing and poor nations.
India also oppose Rich nations attempts to bring in any non-trade and WTO-plus issues such as labour and
environment into the RCEP.
India wants that any country pitching for the introduction the new issues will first have to ensure that they
meet two criteria.
o To establish the relevance of these new issues in the context of trade
o To ensure that there is a consensus among all 162 WTO member countries in taking up such an agenda

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2.2. BEIJINGS RACE FOR THE EURASIAN HEARTLAND


Chinas Eurasian Pivot: What is it?

It is part of Chinas One Belt, One Road (OBOR) strategy, to enhance Eurasian economic connectivity
through the construction of a Silk Road Economic Belt (SREB) and a Maritime Silk Road (MSR)
Pivot west to Eurasia seeks to turn its vulnerability a border with fourteen nations into a strategic asset
Equally significant has been Beijings partnership with Moscow: Russia was a major partner in building the
Chinese military deterrent (S-400 air defense deal, su-35 fighter planes), China has also signed a $400 billion
import deal with Russia for the next 30 years.
Two are trading in the Chinese yuan and the Russian ruble through currency swap agreements

Why China is focusing on EURASIA now?

What region is EURASIA?


Eurasia is the combined
continent of Europe and Asia.
All countries in Europe and Asia
are part of Eurasia. There are
103 countries with major
countries being China, Russia,
India and ASEAN.

It is Chinas response to the Pivot to Asia doctrine or Rebalance to Asia


policy of USA
Western markets still remained trapped by the impact of the 2008
economic crisis, China is taking major steps to restructure its economy
through mega-investments in Eurasia under its Belt and Road initiative.
Instead of pitching financial reserves in U.S. treasury bonds, China has
decided to put large amounts of its surplus reserves in building railways,
highways, industrial parks, and cyber-cities along the Silk Road Economic Belt, one that stretches from Xian
in the East to Europe in the West.
China wants to shift its focus of development on western part of the country from eastern side especially
areas like Xinjing and Tibet.
Rising tensions between Russia and USA, and china emerging as a natural ally of Russia
Belt and Road initiative needs cooperation not only of Russia, which will take care of the western flank, but
also of its eastern, South Asian flank, through India and Pakistan also.

Role of India and its Implications:

India is a major partner in South Asian region and China wants India to be a major stakeholder in one belt
one road initiative.
Though India has not given any official position on this policy.
China has brought India on board the Eurasian platform by partnering it in major initiatives to transform the
international financial architecture e.g. through BRICSs Bank and The New Development Bank

2.3. WEST ASIAN CRISIS DEEPENS BETWEEN IRAN AND SAUDI ARABIA
Why in news?

Saudi Arabia executed leading Shia cleric Sheikh Nimr al-Nimr.


Following the execution protesters in Shia-majority Iran attacked the Saudi Embassy in Tehran.
The Saudis have cut diplomatic relations with Iran over the attack on its embassy.

What is the root cause?

Shia dominated countries: Iran, Iraq, Syria, Bharain (ruled by sunnis), Lebanon
Sunni dominated countries: Saudi Arabia, UAE, Qatar, Sudan, India, Pakistan.

Reasons for rift between Shia and Sunni blocks:

23

Religious: Shia and Sunnis share a different ideology on religious tenets on a 1000 year old question on who
should rightful heir after the death of Prophet Muhammad.
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Iranian revolution of 1979: Shia religious authorities took over and started backing Shia militias in other
Shia dominated countries.
Riyadh in turn strengthened links with other Sunni governments, including the formation of the Gulf Cooperation Council.
Arab Spring saw Iran support its ally, Syrian President Bashar al-Assad, with the Saudis backing the
opposition
Successful P5-Iran nuclear deal and US interest in Iran, has many consequences for Saudis and they are in
opposition to this deal.
Saudi Arabia feels rise of Iran a major threat to its domination in West Asia.
Bahrain, Saudi troops helped put down anti-government protests by the majority Shia population there.
Iranian fury over a deadly stampede during last year's Hajj pilgrimage and a more assertive Saudi foreign
policy since the new king Salman took charge.
Yemen is the new playground for fight between Shia and Sunnis.

Implications on India:

Iran is important to India for its ports viz: Bandar


Abbas ports and Chahabar ports. Both are
important to India for its entry to Afghanistan and
NSTC corridors.
India is also a major trade partner and Iran is a
major exporter of cheap crude oil to India.
Several major Indian companies including Larsen &
Toubro, Tata Consultancy Services, Tata Motors,
Wipro, Infosys, etc. operate in Saudi Arabia.
Indian exports to the kingdom include mineral fuels
and oils, chemicals, iron and steel and electric
machines.

2.4. CHINA-IRAN RELATIONS


Why in news

President Xi Jinping became the first world leader to visit Iran after sanctions were lifted following the
nuclear deal.

Salient points

In Tehran, he talked about a new season of Sino-Iranian ties and a 25-year strategic cooperation plan,
committing to increase two-way trade to $600 billion over the next decade.
He also demonstrated the integration of West Asia in its New Silk Road connectivity project by flagging a
train from its trading hub of Yiwu to Tehran.
This container train will cover a journey of 10,399 km in its maiden journey to West Asia in 14 days. It will
exit China through Alataw Pass in western Chinas Xinjiang province, and then pass through Kazakhstan and
Turkmenistan before heading for the Iranian capital.
Both countries have agreed to enhance security cooperation through intelligence sharing, counter-terror
measures, military exchanges and coordination.
Beijing would also support Irans full membership in the Shanghai Cooperation Organisation, a China-led
regional security framework.

Irans importance for China:


1. Iran is vital for Chinas continued rise. Its strategic location connecting West Asia and Central Asia is key to
President Xis One Belt, One Road initiative
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2. Iran offers immense investment opportunities for Chinese companies in several areas, particularly in energy
and infrastructure.
3. The geopolitical value of Iran is immense for any power that seeks an ambitious role in West Asia.
4. From Chinas point of view, Iran is among the most stable countries in the region. And its the only major
country in West Asia where the U.S. has practically no influence.
Chinas Position towards Iran during Sanctions:

During Irans isolation era, China adopted a dual approach: it supported UN resolutions against Irans nuclear
programme while expanding economic and security cooperation with Tehran.
During this period, China overtook the European Union as Irans largest trading partner. Chinese-Iranian
trade increased from about $3 billion in 2001 to over $50 billion in 2014.
Security ties also flourished at a time when international negotiations on Irans nuclear programme were
going on. In 2010, Chinese fighter jets refuelled in Iran, the first foreign military units permitted on Iranian
soil since the Islamic Republic was established. Chinese warships paid a visit to the Iranian port of Bandar
Abbas in 2014, another first.
Even when complying with international sanctions, it expanded ties with Iran so that it would be better
placed than any other power in a post-sanctions Iran.

2.5. 4TH INDIA-AFRICA HYDROCARBONS CONFERENCE (IAHC)

The government has organised the 4th India-Africa hydrocarbon conference on January 21-22, 2016 in New
Delhi. A total of 21 African countries participated in the event.
The Conference is aimed at greater cooperation between India and African continent towards
Development Transmitting Partnership in the field of Hydrocarbons.
The partnership would enable India to enhance its energy security while nurturing Africas Hydrocarbons
sector growth on several fronts like capacity building, environmental sustainability, human resource
development and employment generation.
IAHC aims to explore opportunities, bridge boundaries and boost bilateral trade between India and Africa.
The Conference will bring together leaders in the worlds of energy to network with other influential peers.

Hydro Carbon Sector Potential for cooperation


India hydrocarbon sector

25

Africas Hydro Carbon Sector

With per capita energy consumption less than a


third of world's average, the energy
consumption is poised to rise.
The energy consumption is estimated to double
in the next 15 years even under the most
pessimistic scenario.
Oil and gas contribute to more than a third of
the primary energy demand.
India imports more than 75% of its crude oil
and 35% of its natural gas.
At a global level, the country has emerged as
the fourth largest consumer and third largest
importer of crude oil.

There are more than 500 companies present in


Africa in the space of oil and gas exploration
today.
Africa's gas reserves are 3.5 times of
Australia's gas reserves & 2.5 times of Europe
gas reserves.
With the continent accounting for 14.5% of
current proved accessible oil reserves and
13.2% of the accessible gas reserves, Africa
plays a significant role in the global oil and gas
pool.

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2.6. FIRST INDIA ARAB MINISTERIAL CONFERENCE

The 1st Ministerial Meeting of Arab-India Cooperation Forum


was held on 24 January 2016 in the Bahraini capital Manama.
From Indian side meeting was attended by Minister of
External Affairs and Overseas Indian Affairs and foreign
ministers of Arab States also participated in this meet.
In meeting, leaders reviewed the achievements of the ArabIndian cooperation and adopted the Manama Declaration.
The Arab-Indian Co-operation Forum was launched in New
Delhi in 2008.

Key Highlights

Arab League
The Arab League is an organization that
consists of independent Arab States on
the territory of northern and northeastern part of Africa and southwest Asia.
Representatives of the first six member
states Egypt, Iraq, Jordan, Lebanon,
Syria and Saudi Arabia that initiated the
leagues formation signed the agreement
in Cairo, in March, 1945.
Presently, League has 21 members which
includes Algeria, Bahrain, Comoros,
Djibouti, Egypt, Iraq, Jordan, Kuwait,
Lebanon, Libya, Mauritania, Morocco,
Oman, Palestine, Qatar, Saudi Arabia,
Somalia, Sudan, Tunisia, United Arab
Emirates and Yemen.

A. Regional Issues

Arab Israel Conflict - A comprehensive and permanent


solution to the Arab-Israeli conflict should be achieved on the
basis of UN Security Council resolutions, Madrid Peace
conference of 1991 and the 2002 Arab Peace Initiative in
Beirut.

Syria Issue There is need to preserve the unity, sovereignty, territorial integrity and stability of Syria and
the importance to reach a political solution to the crisis that preserves the lives of Syrians.

Israel Palestine Conflict


o Israel should end its occupation of the Palestinian "Arab territories it seized in 1967 and dismantle all
the settlements.
o Conference also calls Israel to release all the Palestinian and Arab prisoners and detainees from its jails,
halt the aggressions and crimes being committed by the Israeli settlers against the civilian Palestinians.
B. Global Issues

UNSC Reforms There is a need for urgent reform of the United Nations Security Council through
expansion in both permanent and non-permanent membership to reflect contemporary reality.

Terrorism They emphasized the need for concerted regional and international efforts to combat terrorism
and to develop a strategy to eliminate the sources of terrorism and extremism including its funding, and
combating organized cross-border crime.

2.7. MAURITIUS TO EXCLUSIVELY OFFER BIO FARMING TECHNOLOGY


TO INDIA

The Mauritius government has exclusively offered to transfer bio-farming technology to India.
It is also seeking exchange of cooperation in the health sector as part of the first joint committee meeting
for cooperation in micro, small and medium enterprises.
Both governments have also agreed to formulate an action plan in the area of coir, khadi and handicraft
sectors in addition to the above areas.
Additionally, both countries have also agreed to cooperate in the fields of capacity building, surveys on
potential areas, managerial and technical skills, marketing, exhibitions and trade fairs, etc.

India Mauritius Relationship Brief Summary


Connections between India and Mauritius date back to 1730, diplomatic relations were established in 1948,
before Mauritius became independent state.
More than 68% of the Mauritian population is of Indian origin, most commonly known as Indo-Mauritians.
India and Mauritius co-operate in combating piracy, which has emerged as a major threat in the Indian Ocean
region and Mauritius supports Indias stance against terrorism.
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India has become Mauritius largest source of imports since 2007.


Mauritius has remained the largest source of FDI for India for more than a decade with FDI equity inflows
totaling US$55.2 billion in the period April 2000 to April 2011.

2.8. WHY CRUDE OIL PRICES ARE FALLING?

For the last two years, global oil prices have been in free fall, and no one seems to know when the bungee
cord will catch. In June 2014 you had to plunk down $110 to purchase a barrel of Brent crude. By early 2015
that had dropped to $60.
Today it costs just $32 to buy a barrel of oil a
level not seen since 2004. It's a breathtaking
decline.
Reasons for steep fall in prices
o Fracking boom in USA due to Shale Gas and
Oil explorations.
o Continued high production by oil producing
countries even after supply surpassing the
demand to preserve their market shares.
o Lifting of sanctions on Iran leading to a
production boom and subsequent price fall.
Prices are expected to either rise or plateau to
a new level at the end of this year when the
Fracking boom in USA tapers.

2.9. WHAT DOES A BREXIT MEANS?

In early 2015 the chances of


Brexit Britain departing from the
European Unionseemed remote.
In January 2016, largely because of
Europes migration crisis and the
interminable euro mess, the polls
have narrowed.
Some recent surveys even find a
majority of Britons wanting to leave.
The two campaigns, "Britain Stronger
in Europe" and "Vote Leave", that are
likely to form the official lobby groups
for each side in the referendum have
set out their positions on the main
topics that will form the basis for the
referendum.

2.10. INDIA APPROVES MOU WITH BANGLADESH TO SET UP MORE


BORDER HAATS

27

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has given its ex-post-facto approval
for the Memorandum of Understanding (MoU) between India and Bangladesh for setting up Border Haats
on India-Bangladesh Border.

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A significant aspect of the growing India-Bangladesh ties has been the setting up of border haats (markets)
along the international border in North East.
The haats had been thriving centres of trade and commerce across the borders till the partition of the subcontinent in 1947. Studies indicate that some haats existed even in the time of Mughal rule.
The MoU was agreed in 2010 during the India visit by Bangladeshi Prime Minister.
Already four markets - Kalaichar (Meghalaya-Bangladesh border), Balat (Meghalaya-Bangladesh border),
Kamlasagar (Tripura-Bangladesh border) and Srinagar (Tripura-Bangladesh border) - are operational.
In addition, the two governments have also agreed to further establish two markets in Tripura and four in
Meghalaya on the Bangladesh border.

2.11. SRI LANKA BEGINS PROCESS TO DRAFT NEW CONSTITUTION

Sri Lankas government began the process of drawing up a new constitution for the country aimed at
eliminating causes that led to a quarter-century civil war.
A motion was introduced in Parliament to convert it into a Constitutional Assembly to draft a new
Constitution.
Features of the Draft introduced in the Parliament
o The government intends to strengthen democratic rights, promote national reconciliation and establish
a political culture that respects the rule of law.
o Once the Parliament adopts the draft Constitution Bill with two-thirds majority, the Bill will be sent to
Provincial Councils for opinion and eventually, tested through referendum for the approval of people.
o The Cabinet spokesperson claimed that for the first time [in Sri Lanka], a Constitution is going to be
framed with the consultation of people.
A survey taken by the Centre for Policy Alternatives during October-December 2015 revealed that 53.4 per
cent of Sri Lankans agreed that the Constitution should be changed to produce a political solution to the
countrys ethnic problem.
The emergence of a new order since 2015 under new President and Prime Minister provides a setting
conducive for positive change. It is a historic opportunity for all stake-holders, including Tamils, Muslims
and plantation Tamils, to participate in the process.

2.12. JAPAN-RUSSIA TERRITORIAL DISPUTE

28

Heads of both Japan and Russia in a New Years Press Summit resolved to work for resolution of the long
standing territorial dispute between then over the Kuril Islands.
Russia and Japan never signed a peace treaty after World War II because of conflicting claims over islands
north of the Japanese island of Hokkaido, which Japan calls its Northern Territories - and Russia refers to as
the Southern Kurils.
Thus, technically they are still at war, both countries have tried on numerous occasions to reach an
agreement on this issue, always without success.
Japan has on numerous occasions rejected a Russian offer to settle the dispute with the return of two out
of the four islands, namely the Habomai islets and Shikotan, since these islands comprise only 7 percent of
the total land mass in dispute.
With Abe and Russian President Vladmir Putin in power, now would seem the right time to once again push
for a resolution of this long-standing dispute.
Both nationalist leaders, Abe and Putin have a strong hold over their respective nations, share a good
rapport, and see space for their countries to work together for mutual benefit.

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2.13. INDIA TO BUILD A SATELLITE STATION IN VIETNAM

India will set up a satellite tracking and imaging centre in southern Vietnam that will give Vietnam access
to pictures from Indian earth observation satellites that cover the region, including China and the South
China Sea.
The Indian Space Research Organisation (ISRO) will fund and set up the satellite tracking and data reception
Centre in Ho Chi Minh City to monitor satellite launches.

Benefits

Earth observation satellites have agricultural, scientific and environmental applications. Information
provided by this satellite, will be helpful for Vietnam.
This will help in deepening ties between India and Vietnam.
As per the views of some analyst, this step might impact the India-China relations.
However, Chinese Foreign Ministry spokesperson, has hoped that this satellite will be able to make a
positive contribution to pushing forward relevant cooperation in the region.

2.14. AMENDMENT IN NEPAL CONSTITUTION


Background

Nepals Constitution which was promulgated in September 2015, created seven states in a secular, federal
system.
It divided the country into seven provinces.
However, after the promulgation, there were violent protests in the Terai against injustice meted out to
the Madhesis.
The protestors were upset that the federal restructuring of Nepal into seven provinces left the Madhesis
divided among five provinces, with only one of them having a majority of plains-origin people.
Delineation of electoral constituencies in the Terai (where more than 50 per cent of Nepals people live)
which has not been done on the basis of the population in the plains. This creates a grievance about
gerrymandering.
Other complaints relate to citizenship norms that disallow children of Nepali mothers married to foreigners
from inheriting Nepali citizenship.

Present Situation

Amendmentso The Constituency Delimitation Commission (Article 286) shall consider population the first priority and
geography the second while fixing 165 electoral constituencies (Article 84) as per the federal laws.
o It also covers Article 42 to ensure more inclusive social justice.
However, the amendment process did not include the main demand of the Madhesis for the creation of
two separate Madhesi provinces on the plains of Nepal.
Indias response India has described the first amendment of the Nepali Constitution as welcome
development and hoped that other outstanding issues will be similarly addressed in a constructive spirit.
Madhesis View The United Democratic Madhesi Front rejected a constitutional amendment passed by
the Parliament to resolve the ongoing political crisis.

Impact on India Nepal Relations

This move will be helpful in improving the ties between India and Nepal.
It will also pave the way for the first foreign visit of present Nepal Prime Minister to India.
Nepal also hopes that it will be helpful in resuming the supply of fuel and other essential commodities to
Nepal.

[Note- For more details please refer September 2015, current affairs.]
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2.15. NASEEM AL BAHR

India and Oman have conducted the 10th edition of bilateral maritime exercise 'Naseem Al Bahr' in the
Arabian Sea in last week of January. This exercise was first initiated in 1993.
In this exercise, Oman Navy ships RNOV Al-Shamikh and RNOV Al-Seeb have participated. The Indian Navy
was represented by INS Trikand and INS Trishul.
The exercise was conducted in two phases i.e. a) Harbour Phase at Goa b) Sea Phase off the Goa coast.
The exercise has matured over the years with increasing scope, complexity of operations and level of
participation.
The primary aim of this exercise is to increase interoperability amongst the two navies and develop
common understanding and procedures for maritime security operations.

Significance

This exercise has added another milestone in strengthening maritime security cooperation between India
and Oman.

It will also serve to reinforce the long standing bond of friendship between the two countries.

Increasing naval cooperation is a tangible symbol of the commitment of both nations towards enhancing
maritime stability.

2.16. SAUDI ARABIA OIL PREMIUM CHARGE

It refers to Saudi Arabias decision to charge a premium for the oil it sells
to Asian customers.
As per state owned oil company they would be charging Asian
customers 60 cents a barrel more.
Saudi Arabia is conventionally is one of largest exporters of crude oil to
Energy starved India.
Indian refiners will have to operate at higher input prices from Saudi
Arabia in the near term as they are likely to be bound by purchase
contracts that have been signed

Indias Oil Import scenario


India is currently the thirdlargest oil importer in the
world, relying on imports for 76
per cent of its oil needs
The International Energy Agency
projects that this would rise to
around 90 per cent by 2030 as
Indias demand continues to
increase.

Alternative to Indias energy Import Basket- AFRICA

30

To diversify its energy basket India is looking at


Africa to spruce up its oil and gas imports.
Africa is blessed with vast hydrocarbon prospects,
substantial acreage remains unexplored, giving rise
to E & P opportunities for Indian companies
Africa already contributes around 15 per cent of
Indias oil needs
Recently the 4th India-Africa Hydrocarbon Summit
was held in Delhi that included 22 African nations
where Opportunities for boosting India-Africa
trade in oil and gas was also discussed.
Last year, Nigeria overtook Saudi Arabia as the
largest contributor to Indias oil imports for a short period of time and currently remains one of the top
providers of oil to India.
Indian companies have been seeking opportunities to collaborate in the gas discovery on the eastern coast
of Africa.
Indian companies have a significant presence in Mozambique, Algeria, South Sudan, Egypt, Ghana Gabon
and Libya to name a few.
Recently, an Indian engineering company won the largest consultancy contract for an oil refinery in Nigeria.
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India, with the 4th largest oil refinery capacity globally, can be a suitable partner to complement Africa's
needs in this space.
India buys Urea in large quantities and can be a great destination for Africa to monetize its Gas.
With India's demand for and Africa's supply of oil expected to grow, it is possible to harness the
hydrocarbons complementarities to ensure economic development in India and Africa.

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3. ECONOMY
3.1. FOURTH INDUSTRIAL REVOLUTION

Fourth Industrial Revolution or Industry 4.0 is the theme of the 2016 annual meet of World Economic
Forum.

Meaning

It is a collective term embracing a number of contemporary


The First Industrial Revolution started in
automation, data exchange and manufacturing technologies
th
the 18 century with the use of water
and denotes a fundamental change in the way business is
and steam power to mechanize
being done in the present world.
production.
th
It is characterized by a wave of innovations and fusion of
The Second in 19 century used electric
technologies that is blurring the lines between the physical,
power to create mass production.
digital, and biological spheres.
The Third began in the 1960s and used
For example things like driverless cars, smart robotics,
electronics and information technology
tougher and lighter materials, and a manufacturing process
to automate production.
Now a Fourth Industrial Revolution is
built around 3D printing technology, internet of things and
building on the third, that is, the digital
internet of services.
revolution.
The characteristic is not just these new innovations but also
that it is changing at exponential rates and disrupting every
industry at a pace that is difficult to cope with.
New technology, increased connectivity, artificial intelligence etc. has changed the way any industry
functions, the consumer demand and the competition.
The inexorable shift from simple digitization (the Third Industrial Revolution) to innovation based on
combinations of technologies (the Fourth Industrial Revolution) is forcing companies to reexamine the way
they do business.

Challenges posed by Fourth Industrial Revolution

32

Risk
of
greater
unemployment
especially low skilled ones has
increased
Sustainability of businesses especially
small ones is under threat
Disruptions in existing industries as new
ways of serving needs are coming up.
The innovators are improving the
quality, speed and price of services at a
much faster rate due to better access to
global digital platforms for research,
development, marketing, sales, and
distribution.
Growing transparency and consumer
engagement would demand more
adaptation from the companies.
IT security issues
It also affects the governance system as
well.
o The
accountability
of
the
government has increased due to
more citizen engagement.

WORLD ECONOMIC FORUM


It is a Swiss Non-Profit foundation, based in Geneva. It is an
international institution for public-private cooperation.
Its mission is cited as "committed to improving the state of the
world by engaging business, political, academic, and other
leaders of society to shape global, regional, and industry
agendas".
Davos Panel: The annual WEF winter meet (Jan) at Davos,
Switzerland. It has different themes. e.g. 2014- "The Reshaping
of the World: Consequences for Society, Politics and Business",
2015- "New Global Context", 2016- "Mastering the Fourth
Industrial Revolution"
It was established in 1971 as 'European Management Forum'
and changed to WEF in 1987 and sought to broaden its vision to
include providing a platform for resolving international conflicts.
It also works as a think tank giving out various reports; Global
Competitiveness Report, Global IT Report, Gender Gap Report,
Risks, Travel & Tourism, Enabling Trade.

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o
o
o

At the same time governments would gain more technological powers to increase its control over
people, based on pervasive surveillance systems and the ability to control digital infrastructure.
The governments dependence on private sector would also increase.
On the whole governments will increasingly face pressure to change their current approach to public
engagement and policymaking, as their central role of conducting policy diminishes owing to new
sources of competition and the redistribution and decentralization of power that new technologies
make possible.

3.2. STARTUP INDIA PROGRAMME


Why in news

Prime Minister has announced the action plan for start-ups.


The schemes offer incentives to entrepreneurs to start ventures in India.
The Action Plan proposes a 19-point action list which will enable setting
up of incubation centres, easier patent filing, tax exemption on profits,
setting up a Rs.10,000 crore corpus fund, ease of setting-up of business, a
faster exit mechanism, among others.

Key Highlights

To encourage seed-capital investment, the government also exempted tax


above fair market value for incubators in start-ups.
With the intention of reducing regulatory burden on start-ups, they have
been exempted from six labour laws and three environmental laws for a
period of three years.
Start-ups will also be provided free legal support in filing intellectual
property rights (IPR).
Patent applications filed by startup will be fast tracked at lower costs.
To provide equal platform to startups in government procurements, the
criteria of prior experience or turnover will be exempted without any
relaxation in quality standards or technical parameters.
Government will create a policy framework for setting up of incubators
across the country in public private partnership, build innovation centres
at national institutes and set up seven new research parks.
Funding support of worth 10,000 crore rupees for next four
Criteria for a startup
years.
The firm incorporated should be less
Government to set up a Startup India Hub which will be a
than five years old.
single-point of contact for Startups.

Annual Revenue of less than Rs 25 crore.


In order to augment incubation and R&D efforts, 31 centres
Needs to get approval from interof Innovation and entrepreneurship will be setup/ scaled up
ministerial board to be eligible for tax
for providing facilities to over 1,200 Startups, at national
institutes.
benefits.
7 new research parks are proposed to be set up with an
Get recommendation from an Incubator
initial investment of Rs.100 crore each. These parks shall
recognized by government, domestic
enable companies with a research focus to set up base and
venture fund or have an Indian patent.
leverage the expertise of academic/ research institutions.

Benefits of the scheme

33

It will help in economic growth of the country.


It will create more employment opportunities in India.
It will help in development of entrepreneurship culture in India.
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Challenges

Forex regulations are a major reason for re-domiciling.


Cost of the loan is high.
Tax laws need more clarifications and simplification.
Taxes on alternative investment funds and venture capital need rationalization.
Fund set up by government is not enough to cater the needs of the all sections of the entrepreneurs; hence
it becomes very difficult for the startups to mobilize funding.

Way Forward

While the Action Plan is certainly a welcome and positive step towards the philosophy of promoting Startup
innovation in the country, it will also be important to consider tax exemptions for angel investors, seed
capital funds and stock options offered by Startups to employees.
The Government should consider providing indirect tax incentives for Startups.
There is a need to change the mindset of lenders who do not consider start-up entrepreneurs to be good
borrowers so that quick funding is available to the startups.
The easing of rules and creation of a conducive policy environment should not be restricted just to startups. It should be extended to all businesses.

3.3. STAND UP INDIA SCHEME


Why in news?

The Union Cabinet has recently approved the Stand Up India Scheme to promote entrepreneurship
among SC/ST and Women entrepreneurs.

Salient features

34

The Scheme is intended to facilitate at least two such projects per bank branch, on an average one for
each category of entrepreneur.
Refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs.
10,000 crore.
Creation of a credit guarantees mechanism through the National Credit Guarantee Trustee Company
(NCGTC).
Hand holding support for borrowers both at the pre loan stage and during operations. This would include
increasing their familiarity with factoring services, registration with online platforms and e-market places as
well as sessions on best practices and problem solving.
Focus is on handholding support for both SC/ST and Women borrowers.
The overall intent of the approval is to leverage the institutional credit structure to reach out to these
under-served sectors of the population by facilitating bank loans repayable up to 7 years and between Rs.
10 lakh to Rs. 100 lakh for Greenfield enterprises in the nonfarm sector set up by such SC, ST and Women
borrowers.
The loan under the scheme would be appropriately secured and backed by a credit guarantee through a
credit guarantee scheme for which Department of Financial Services would be the settler and National
Credit Guarantee Trustee Company Ltd. (NCGTC) would be the operating agency.
The Stand Up India Scheme anchored by Department of Financial Services (DFS).
It is expected to benefit at least 2.5 lakh borrowers.
The expected date of reaching the target of at least 2.5 lakh approvals is 36 months from the launch of the
Scheme.
Presently only 9% of start-ups in India are led by women

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3.4. PRADHAN MANTRI FASAL BEEMA YOJNA


Why in news?

On 13th January, 2016, the Govt. has launched a new crop insurance policy Pradhan Mantri Fasal Bima
Yojna (PMFBY)
It will replace two schemes National Agricultural Insurance Scheme (NAIS) and the modified NAIS (MNAIS).

Issues with earlier schemes

As per government report, under


the existing yield-based and
weather-based crop insurance
schemes about 37 million, or 27% of
farming households were covered.
Under the present crop insurance
schemes - Risks were only partially
covered.
The existing premium rates vary
between 2.5% and 3.5% for Kharif crops and 1.5% for Rabi crops but the coverage was capped, meaning
farmers could recover only a fraction of their losses.
The premium for commercial and horticulture crops was calculated on actuarial basis, which means
premiums could be as high as 25% depending on the risk factor involved.
Assessment of crop damage lacked transparency and didnt use the latest technologies.
Compensation took long, even going beyond a year in many cases.

Salient features

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is to be rolled out during the kharif crop season this year.
Schemes targets to cover half of Indias cropped area in the next three years. Present coverage is 23%
approximately.
There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi
crops.
In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
There is no upper limit on Government subsidy. Even if balance premium is 90%, it will be borne by the
Government.
The government liability on premium subsidy will be shared equally by the Centre and states.
Government has substantially increased the budget for crop insurance from Rs.2,823 crore in 2015-16 to
Rs.7,750 crore in 2018-19.
The new scheme will also seek to address a long-standing demand of farmers and provide farm-level
assessment for localized calamities, including hailstorms, unseasonal rains, landslides and inundation.
The use of technology will be encouraged to a great extent.
o Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim
payment to farmers.
o Remote sensing will be used to reduce the number of crop cutting experiments.
In the case of Weather-Based Crop Insurance Scheme (WBCIS), the government said premium rates would
be rationalized on par with PMFBY. The PMFBY will be effective from the April 1, 2016.

Benefits

35

With back-to-back droughts, and unseasonal rain and hail in certain pockets, it became clear that the risks
in farming are on the rise, and the existing system of crop insurance was nowhere near meeting the needs
of the peasantry.
In this context, the new scheme is surely a step in the right direction and very timely which will help in
saving Indian agriculture from the increasing risks of nature.
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The premium rates to be paid by farmers are very low and balance premium will be paid by the
Government to provide full insured amount to the farmers against crop loss on account of natural
calamities.
The low premium will drive penetration and enrolment and make the insurance scheme viable for insurers.
Post-Harvest losses are also included, so it will provide safety and confidence to the farmers.

Key issues that have been identified by farm rights groups as problematic with the PMFBY

Problems related to insurance run far deeper than premium rates. For e.g. In many states where premium
rates are low in MNAIS still have very low subscription.
The governments expectation that insurance cover will go up from existing 23% to 50% in three years
appears to be based more on hope than any evidence. Previous experience has belied all such hopes.
Subsidies are to be borne in a 50:50 ratio between Centre and State. It is unclear yet if the states have
agreed to bear their share of the subsidies
There does not seem to be anything in this scheme to address the problem of tenant farmers who bear the
risk of crop failure but are not entitled for compensation and insurance payments.
Risks such as destruction by wild animals are still not covered.
One key problem of crop loss or damage compensation, the unit of assessment, remains unaddressed in the
new scheme

Way forward

For the successful implementation of this scheme, it is important that


o Crop assessment should be done in a transparent manner and within a specified period of time, and
using high technology such as automatic weather stations (AWSs), drones and satellites etc.
o Compensation must be paid to farmers accounts directly and as quickly as possible (within a week of
assessment of crop damage) so that next agriculture cycle is not affected.
Comparison with previous schemes
NAIS
[1999]

MNAIS
[2010]

PM Crop Insurance Scheme

Premium rate

Low

High

Lower than even NAIS and government to contribute 5


times that of farmer.

One Season One


Premium

Yes

No

Yes

Insurance Amount
cover

Full

Capped

Full

On Account Payment

No

Yes

Yes

Localized Risk coverage

No

Hail storm, Land slide

Post-harvest losses
coverage

No

Coastal areas
cyclonic rain

Prevented Sowing
coverage

No

Yes

Yes

Use of Technology

No

Intended

Mandatory

Awareness

No

No

Yes (Target to double coverage to 50%)

Parameter

36

Hail storm, Land slide, Inundation


for

All India for cyclonic and unseasonal rain fall.

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3.5. SEBI PANEL SUGGESTS REFORMS TO GROW ALTERNATIVE FUNDS


INDUSTRY
Why in news?

An 21 member advisory panel under Narayan Murthy set up by SEBI has suggested a slew of tax reforms
and changes in existing laws to facilitate capital-raising by AIFs and boost entrepreneurship.

Recommendations:

Creating a favorable tax environment


o Government should introduce a securities
transaction tax (STT) on all distributions (gross) of
AIFs, investment, short-term gains and other
income and eliminate any withholding of tax.
o After STT, need for parity with the taxation of
investments in listed securities.
o AIFs and portfolio companies be exempted from
certain income tax provisions so that they are
subjected to tax only when receiving dividend or
interest income during the holding period, or
realize capital gains at the time of exit.
o The exempt income of AIFs should not be subject
to withholding tax of 10%; the exempt investors
too should not be subjected to the tax.
Unlocking domestic pools of capital:
o

o
o

Large capital pools from pensions, insurance, DFIs and banks, and charitable institutions, which
currently constitute only around 10% of the total private equity and venture capital invested in India
annually, should contribute more to develop the AIF industry.
The panel urged the regulators to increase the investment limits for banks and insurance companies in
AIFs from the current 10% to 20% of the total corpus of an AIF.
Domestic pension funds in India including the National Pension System and the Employee Provident
Fund Organization should allocate up to 3% of their assets to AIFs by 2017, rising to 5% by 2020.

Reform regulatory regime


o
o
o
o

The investment gains of AIFs should be deemed to be capital gains in nature and losses incurred by
AIFs should be available to their investors for set-off.
The central board of direct taxes should clarify that investors in the holding companies are not subject
to the indirect transfer provisions.
The panel suggested that AIFs should be allowed to invest in charitable and religious trusts also.
Eligibility norms: - Any individual with a total annual income of at least Rs.50 lakh (from 1 cr presently)
should be allowed to put money in.

What is AIF?

37

Anything alternate to traditional form of investments gets categorized as alternative investments.


(AIFs) are defined in Regulation 2(1)(b) of Securities and Exchange Board of India (Alternative Investment
Funds) Regulations, 2012
It refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of
a trust or a company which are not presently covered by any Regulation of SEBI nor coming under the
direct regulation of any other sectoral regulators in India-IRDA,PFRDA, RBI
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AIFs are categorized into the following three categories:


Category I - AIF are those AIFs with positive spillover effects on the economy. Example: Venture Capital
Funds, SME Funds etc.
Category II - AIF are those AIFs for which no specific incentives or concessions are given. E.g. Private
Equity or debt fund.
Category III AIF are funds that are considered to have some potential negative externalities in certain
situations and which undertake leverage to a great extent; with a view to make short term returns. No
specific incentives or concessions from the government or any other Regulator. E.g. Hedge.

3.6. RECENT MEASURES TO BOOST SEZS


Why in news?

Export Promotion Council for export oriented units and SEZs (EPCES) have raised certain issues with respect
to SEZs.

DEMANDS OF EPCES and SEZ Developers and units:

Removal or reduction of Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) on SEZs
Abolition of all direct tax benefits for SEZs not operationalized before April, 2017. This Sunset Clause
(provision relating to the expiry of the benefits to SEZs) on SEZs should be extended up to 2023.
EPCES also wanted SEZ units to be allowed to sell in the domestic tariff area (DTA or domestic market) by
shelling out the same duty applicable to imports from nations who are free trade agreement (FTA) partners
of India.
SEZs are duty and tax free enclaves, they have to pay regular duties for sales in the domestic market, which
in turn makes their items costlier as compared to imports from FTA partner nations that enter India at zero
or lower than regular duties.

3.7. EASWAR PANEL


Why in news?

A committee, set up by the government to change direct tax laws,


headed by retired high court judge R.V. Easwar, has submitted its
recommendations.

Recommendations

38

Under the presumptive income


scheme,
such professionals or
businesses will not need to maintain a
book of accounts but just pay tax
based on presumptive income
calculations.
For
instance,
for
professionals it is proposed that 33.3%
of their previous years receipts will be
taken as income on which they will
have to pay tax. If their profits are
much lower, they will have to maintain
a book of accounts clearly categorizing
expenditure and pay tax accordingly.

Simplifying provisions related to tax deducted at source (TDS),


claims of expenditure for deduction from taxable income and for
tax refunds.
Several taxpayer-friendly measures to improve the ease of doing
business, reduce litigation and accelerate the resolution of tax
disputes.
Deferring the contentious Income Computation and Disclosure Standards (ICDS) provisions and making the
process of refunds faster.
Income-tax department to desist from the practice of adjusting tax demand of a taxpayer whose tax return
is under assessment against legitimate refunds due.
Deletion of a clause that allows the tax department to delay the refund due to a taxpayer beyond six
months and suggested a higher interest levy for all delays in refunds.
Stock trading gains of up to Rs.5 lakh will be treated as capital gains and not business income, a move that
could encourage more retail investments in the stock market.
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TDS rates for individuals be reduced to 5% from 10%. Dividend income on which dividend distribution tax
has been levied should be treated as part of total income.
Provide an exemption to non-residents not having a Permanent Account Number (PAN), but who furnish
their Tax Identification Number (TIN), from the applicability of TDS at a higher rate.
Favored deferring ICDS.
The processes of the income-tax department should be conducted electronically to minimize human
interface.
To make it easy for small businesses, the eligibility criteria under the presumptive scheme be increased to
Rs. 2 crore from Rs. 1 crore. Launch a similar scheme for professionals. The presumptive tax is levied on an
estimated income and makes life (and work) easier for small businesses.

3.8. IMF REFORMS


Why in news

The IMF reforms came into effect on January 27


which was approved by it in 2010.
The reforms were unable to implement due to the
absence of its approval by the US Congress, which
it did last year.

Voting Rights:

ABOUT IMF:
International Monetary Fund (IMF) was
established along with the International Bank for
Reconstruction and Development at the
Conference of 44 nations held at Bretton Woods,
New Hampshire, USA in July 1944.
At present, 187 nations are members of IMF.
India is a founder member of the IMF.
The objectives of IMF is macro-economic growth,
alleviation of poverty and economic stability,
policy advice & financing for developing countries,
forum for cooperation in monetary system,
promotion of exchange rate stability and
international payment system.
India has not taken any financial assistance from
the IMF since 1993.Repayments of all the loans
taken from International Monetary Fund have
been completed on 31 May, 2000.

The emerging and developing economies gained


more influence in the governance architecture of
the International Monetary Fund (IMF).
More than six per cent of the quota shares will
shift to emerging and developing countries from
the U.S. and European countries.
Indias voting rights increase to 2.6 per cent from
the current 2.3 per cent, and Chinas, to 6 per cent
from 3.8, as per the new division.
Russia and Brazil are the other two countries that
gain from the reforms.
The reforms bring India and Brazil into the list of the top 10 members of IMF, along with the U.S, Japan,
France, Germany, Italy, the United Kingdom, China and Russia.
Canada and Saudi Arabia slip below the top ten in the process.
For the first time, four emerging market countries of the BRIC bloc Brazil, China, India, and Russia will
be among the 10 largest members of IMF.

Financial strength:

The reforms also increase the financial strength of IMF, by doubling its permanent capital resources to 477
billion special drawing rights ($659 billion).

IMFs Executive Board:

39

As part of the reforms, for the first time, the IMFs Executive Board will consist entirely of elected Executive
Directors, ending the category of appointed Executive Directors.
Currently the members with the five largest quotas appoint an Executive Director, a position that will cease
to exist.

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IMF statement:

These reforms will reinforce the credibility, effectiveness, and legitimacy of the IMF, an IMF statement said.
It also said that the conditions for implementing IMF's 14th General Quota Review, which delivers historic
and far-reaching changes to the governance and permanent capital of the Fund, have now been satisfied.
Following the effectiveness of the 14th General Review of Quotas, the focus will now turn to work on the
15th General Review of Quotas and securing the necessary broad consensus, including on a new quota
formula.

3.9. IMF CUTS GLOBAL GROWTH FORECAST AS CHINA SLOWS


What is the news?

International Monetary Fund (IMF) cut its


global growth forecasts for the third time in
less than a year on Tuesday

Key Observations:

World economy would grow at 3.4 per cent in


2016 and 3.6 per cent in 2017, both years down
0.2 percentage points from the previous
estimates made in October15.
India and the rest of emerging Asia are
projected to grow at a robust pace with growth
forecast for India in 2016-17 unchanged at 7.5
per cent.
IMF cited a sharp slowdown in China trade and
weak commodity prices that are hammering
Brazil and other emerging markets.
Plummeting oil prices and no hope for rise in
near future.
Near-term fiscal policy should be more
supportive of the recovery, especially through
investments that would augment future
productive capital.

3.10. INDEX OF INDUSTRIAL PRODUCTION


Why in news?

Industrial production, measured by IIP, dropped for the month of November after a robust recovery till
October.
According to India Rating and Research, the drop is due to wide base and slowdown in various sectors
globally.
The agency emphasized that drop in numbers does not imply end of industrial recovery.

What is IIP

40

IIP is a ratio which measures the growth of various sectors in the economy. Being a ratio, it represents the
status of production in the industrial sector for a given period of time as compared to the reference period
of time (base year).
IIP data is released every month by CSO.
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The current base year is 2004-05.

Composition of IIP

The IIP comprises of 682 individual items. Sector wise, the items included falls into 3 categories viz.
Manufacturing, Mining and Electricity respectively in decreasing order of their weightage to the index.

Weightage of Core Industries in IIP

In terms of percentage, the weightage of all 8 core industries in IIP is around 38%.
In IIP, the decreasing order of core industries among them is as:
ELECTRICITY> STEEL> REFINERY PRODUCTS> CRUDE> COAL> CEMENT> NATURAL GAS> FERTILIZERS

3.11. SCOPE OF DBT TO BE ENLARGED BY BOTH CENTRE AND STATES

Centre to implement direct transfer of kerosene subsidy through DBT.


The scheme would be to incentivize states, by granting 75% saved subsidy cash in first two years; 50 % in
3rd year and 25 % in 4th year.
Eight states have agreed to implement the scheme in some districts on pilot basis.
State government planning to roll out welfare pensions through DBT route, due to alleged lapses in
disbursement through postal system.
Under the scheme, the consumer would be required to purchase the kerosene at market price. The subsidy
amount will then be transferred to their bank account.

Benefits of kerosene subsidy through DBT

Containment of current leakages


Improved targeting
Curtail corruption and promotes transparency in distribution
Paying at market price would give consumers a sense of
ethical consumption of kerosene, even though they will be
subsidized through bank transfer.

Bottlenecks in kerosene subsidy through DBT

Present system of distributing kerosene


subsidy

For now, centre allocates a fix amount of


kerosene to the respective state and
union territory for consumption at a
subsidized rate.
The state in turn, distribute the kerosene
through state administered fair price
shops

Determination of the quantum of subsidy, each household is


eligible for would be a complex task.
Targeting Identification of beneficiary (inclusion and exclusion errors).
Highly subsidized kerosene would leave little scope for cleaner form of energy like solar energy to be
promoted.
Downsizing subsidy in future would become a political populist agenda.

3.12. GLOBAL TALENT COMPETITIVENESS INDEX

41

Global Talent Competitiveness Index (GTC) is released by INSEAD business school in partnership with
Adecco Group and the Human Capital Leadership Institute of Singapore.
The index that measures a nation's competitiveness based on the quality of talent it can produce, attract
and retain.
Reflecting an acute shortage of skilled labour force and difficult business conditions, India has slipped 11
places to rank 89th on a global index of talent competitiveness, a list which has been topped by
Switzerland.
India and China remain a net exporter of talent and many emerging countries that have invested in higher
education have neglected vocational education.
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China and India fail to attract talent from abroad, particularly in the context of large emigration rates of
high-skilled people in the past.
Mobility is the key to talent development and creative talent cannot be developed if international mobility
and 'brain circulation' are not encouraged.
200 million people are unemployed and about 1 in 2 jobs are at risk due to automation.

3.13. CSR IN INDIA


Why in news?

Its now been over a year since Section 135 of the Companies Act 2013 came into effect and it has sought to
alter the way corporate social responsibility (CSR) is approached in India.

Provisions of CSR in India

Under the Companies Act, 2013 companies has to spend at least 2% of last 3 years average net profits on
CSR activities.
The Act also urges companies to leverage their business acumen and core competencies to address social
issues in the same manner as they would carry out other business operations.
The Companies Act 2013 allows for collaboration between two or more companies by using a separate legal
entity.
However, rules do not provide any provision for monitoring and any punitive actions for the companies who
fail to meet the CSR guidelines.

Salient Points

CSR budgets have grown exponentially.


Promoting education and eradicating poverty received the
maximum funds last year through CSR funding.
The next highest recipient of CSR funds was environmental
sustainability with 57 companies spending Rs.683.07 crore.
Energy companies spent the highest on corporate social
responsibility (CSR) initiatives last year.
According to data collected from the annual reports of 85
publicly traded companies by NextGen, the energy sector was
followed by financial services and IT when it came to firms that
committed to CSR.
Consumer goods companies were the only companies that
exceeded the mandatory spending limit of 2% of annual profits. The telecom sector spent only Rs.51 crore,
while it was expected to spend Rs.194 crore.
Most companies that have implemented social engagement strategies have not looked at their CSR
strategies through the same lens as their core business
The six areas have failed to attract
functions.

Challenges faced by companies

42

Lack of clarity about regulations with respect to what is allowed


under the law,
Lack of knowledge about sector and industry best practices,
Few implementation partners who have the capacity to work
with companies.
A clear challenge in the first year of the new CSR rules
implementation is impact assessment.
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significant interest.
Slum development.
Technology incubators at academic
institutions.
Promotion of rural as well as
Paralympic and Olympic sports.
The Prime Ministers Relief Fund.
Preservation of national heritage, art
and culture.
Welfare of armed forces veterans and
war widows.

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Way Forward

The government should leverage the CSR law to meaningfully engage companies in the development
sector.
Create frameworks that facilitate public-private partnerships for the implementation of long-term and
impactful programmes.
Impact Assessment should be encouraged to understand the success of programmes and initiatives.
The CSR law will be a lost opportunity if stakeholders do not understand each others perspectives, leverage
each others core competencies, and build capacity to deliver and create the right frameworks for
knowledge sharing and collaboration.

3.14. DEVALUATION OF CHINESE YUAN


Why in news?

The Yuan is hovering at a four-and-a-half-year low,


down over 4% against the dollar since the beginning
of the year 2015.
The recent devaluation of Chinese currency yuan has
triggered a global financial turmoil hurting stock and
currency markets worldwide.
The weakening of the yuan could lead to competitive
devaluation of Asian and Emerging Market (EM)
currencies.

Factors which caused devaluation of Yuan:

Slowdown in Chinese economy.


A lot of surplus production in China.
To make Chinese economy more competitive.
To retain international Investment in China.

Impact of Devaluation on China

By devaluing its currency, China gains an advantage in global trade. Its exports become cheaper, and more
attractive, to foreign buyers.
The yuan depreciation will make imports in China more expensive, depressing demand, especially for
commodities. This will put further downward pressure on commodity prices.

Impact of Devaluation on Indian Economy

43

Indian imports will be badly hit. This is also evident by the fact that Indias exports have plunged for 12
consecutive months, down 17.6% year-to-date because of anemic growth in developed and Asian
economies.
Decline in import will increase the Current Account Deficit (CAD).
Around 12% of Indias imports come from China as of 2015. Any increase in Chinese competitiveness
including through the Yuan depreciation could lead to a surge in such imports.
This will lead to replacing imports from other trade partners of India by increasing Chinese imports and it
could also impact these industries(such as electrical and electronics, organic chemicals, fertilizers and iron
and steel etc.) in India.
RBI will need to let the rupee decline against the dollar. This would put firms with exposure to external
commercial borrowings in a difficult situation as their loan cost will increase.

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Impact of Devaluation on World Economy

The devaluation of Yuan is bound to affect the exports of several major countries across the world.
A weaker Yuan may drive the global economy closer to a recession because the purchasing power of China
deteriorates every time the currency is devalued.
The devaluation also affects demand for commodities and imported goods, undercutting oil and other
industrial commodities. This would in turn hurt EM economies like Chile and Brazil that depend on China to
buy the copper and oil that they export.
It would also hurt developed nations like Germany, which see China as a key growth market.
This could also start a currency war as countries race to protect their exporters by devaluing in turn.
The sharp fall in Yuan has also raised fears of cheaper Chinese goods hurting the sales of domestically
manufactured products in many countries.

Can India also devalue Indian Rupee?

Devaluation of Rupee to increase Indias exports cannot be taken as a counter-measure because India is not
a supply-surplus economy.
Also, with respect to China, we import around $60 billion and export is around $12 billion so it will further
widen the trade deficit.

Way Forward

In short term, Imposing import duty on Chinese products This will help in protecting labour intensive
sectors like textiles, steel, gems and jewellery etc. which are vulnerable to cheap imports.
In long term
o Labour reforms to encourage new business to set up.
o Simplified tax structure implementation of Goods and Services Tax.
o Easy Compliance Process.
o Single window clearance.
o Availability of capital to MSMEs.

3.15. SEED FUNDING TAX TO BE REMOVED


Why in News?
Recently, government has decided to scrap the tax on seed funding
by angel investors, which has been identified as a major impediment
for entrepreneurs to get domestic funds.
Need

Finance Act 2013, introduced a tax on seed capital provided to


start-ups by local angel investors.
India is the only country in the world to penalize local angel
investors in such a manner.
The existing tax norms view the funding as income, which takes away nearly 30 percent of the value of
investments, so this would improve cash flow a lot.

Benefits

44

It will help in easing up the process to start up and doing business in the country.
According to certain estimates around 65 percent of the startups have moved out of India due to uncertain
taxation. This move is aimed at preventing the exodus of startups from the country due to difficulties in
doing business.
It will also help in ensuring transparency, simplification and predictability in tax structure.
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It will improve the cash flow for the startups which will help them in their initial setup.
It will encourage the local angel investors to invest in startups. Presently, 90 per cent of Indian start-ups are
financed by foreign venture capital and angel funds.
It will also ensure equal treatment of local investors with respect to foreign investors.

What is Seed Funding (Capital)?

It is the initial capital used to start a business. It is provided to help a business develop an idea, create the
first product, and market the product for the first time.
Seed capital is needed to get most businesses off the ground. It is considered a high-risk investment, but
one that can reap major rewards if the company becomes a growth enterprise.

Who is angel investor?

An angel investor or angel is an affluent individual who provides capital for a business start-up, usually in
exchange for convertible debt or ownership equity.

3.16. RAIL REGULATOR TO SET FARES, ENSURE FAIR COMPETITION

A concept paper, published by the Union government


has proposed to set up a rail regulator i.e. Rail
Development Authority of India
It will be fixing fares and ensuring level-playing field
for private investments in railway infrastructure.
An appellate body is also proposed to be formed and
the role, structure and composition of the body will
be similar to regulators in telecom and electricity
sectors.
At present, the tariff is set by the Union government.
As per provisional estimate, Railways losses will
touch over Rs 30,000 crore in 2015-16 and the
primarily reasons for this is due to sharp increases in input costs and no proportionate increase in fares over
the same period.

Proposed Mandate

To set passenger and freight tariff.


Ensure fair play and level-playing field for private investors in Railways.
Maintain efficiency and performance standards.
Disseminate information such as statistics and forecasts related to the sector.

Benefits of proposed rail regulator

It will help in better functioning of Railways.


It will help Railways in recovering their losses which in turn will make it economically viable.
It will also attract more private investment in Railways and will help in utilizing the full potential of Railways.

Previous Year Question


GS Paper -2 Mains -2014 - The setting up of a Rail Tariff Authority to regulate fares will subject the cash
strapped Indian Railways to demand subsidy for obligation to operate non-profitable routes and services.
Taking into account the experience in the power sector, discuss if the proposed reform is expected to benefit
the consumers, the Indian Railways or the private container operators.

45

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3.17. SPACEX: SPACE START UPS

SpaceX, the company run and founded by Tesla Motors Elon Musk, has successfully completed a vertical
take-off and vertical landing (VTVL) with its Falcon 9 rocket after delivering a payload of commercial
satellites, setting a new landmark in space travel technology.
The fact that Falcon 9 was able to go into space, launch its commercial payload and then return to Earth is
great news for SpaceX as it will bring down operational costs for the company. Space X has proved that its
rockets can be refurbished and re-flown for commercial purposes.
The SpaceX feat is important, given that this is the first time that an orbital rocket has come back to Earth
intact. The rocket reached a height of approximately 200 kms before it landed back on earth, and it is this
high altitude which made the companys mission so difficult.
The feat by SpaceX is expected to fuel competition for entry of private commercial platforms in space
application.

3.18. OXFAM REPORT ON INEQUALITY

The anti-poverty charity Oxfam International gave report titled An Economy for the 1%

Salient points in report

Since 2000 the poorest half of world population has received just 1% of the total increase in global wealth,
while 50% increase has gone to top 1%.
Total wealth of 62 individuals = wealth of 3.6 billion individuals
According to a World Bank forecast, if pro-poor growth moves are not visible soon, by 2030, almost half-abillion people will still live in extreme poverty.
Inequality poses a threat to economic expansion and social cohesion around the world.

Suggestions in the report to reduce inequality:

Check the influence of the very rich and to empower people who are currently excluded from the power
structure
For workers, they suggest increasing minimum wages towards living wages, promoting transparency on pay
ratios and protecting workers rights to unionize and strike.
End of tax havens, describing them as unjust and a legal means that allowed the rich to remain rich,
estimating that tax havens help the rich hide $7.6 trillion.
Governments should work towards creating a worldwide tax transparency system

3.19. MEDIUM TERM DEBT MANAGEMENT STRATEGY


Why in news?

The government of India has put MTDS in public domain for a period of three years (2015-18).
The plan aimed at lowering cost of borrowings and expanding the list of eligible investors which would
deepen the local sovereign bond market.

What is MTDS?

46

Medium-Term Debt Management Strategy is a framework that the government intends to use over the
medium-term to ensure
o Debt levels stay affordable and sustainable,
o New borrowings are for a good purpose and that the costs and risks of borrowing are minimized.
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MTDS covers both external and internal debts including portfolio of government guarantees and contingent
liabilities
Reserve Bank of India act as the manager of govt. debt

3.20. CONVERSION OF MUDRA INTO BANK


Why in new?

The govt. approved the conversion of MUDRA ltd into MUDRA Bank as a wholly owned subsidiary of Small
Industries Development Bank of India (SIDBI) and creation of a Credit Guarantee fund for MUDRA loans.

Objective for creation of credit guarantee fund

The CGF has been created to reduce the credit risk of MFIs/Banks/NBFCs/other financial intermediaries
associated in disbursing loans to Micro and Small units. MFIs can now become Member Lending Institutions
(MLI) with MUDRA (SIDBI) Bank for refinance or with NCGTC for credit guarantee.

3.21. HORTICULTURE STATISTICS


Why in News?

Horticulture statistics releases for the first time by Agriculture ministry, pointed out a shift of farmers more
towards horticulture crops than food grains.

Important data of the survey

Area under horticulture rose by 18% , whereas, it is 5% for food grains


Fruits and Vegetables accounts for 90% horticulture production of India.
The inception to shift towards horticulture started from 2012-13, when horticulture production surpassed
the food grain production.
Area under horticulture crops rose by 2.7% per annum, and production by 7% annually.
Highest annual production growth of 9.5 per cent recorded by fruits especially citrus.
Highest intake of vegetables and fruits is in urban areas as compared to rural areas.
Grapes occupies the top position in terms of export over other horticulture fruits.

Following states are the leading producers of horticulture specific crops:


1.
2.
3.
4.
5.

Fruits
Vegetables:
Flowers:
Spices:
Plantation crops:

Maharashtra
West Bengal
Tamil Nadu
Gujarat
Tamil Nadu

Importance of survey

47

It would be helpful in formulating progressive policies towards the stakeholders.


Dissemination of data would be helpful in averting the situations of surplus and deficit production which
are frequently exploited by speculators and middlemen.

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4. SOCIAL ISSUES
4.1. NATIONAL FAMILY HEALTH SURVEY
Why in News?

The first set of the Fourth National Family Health Survey Report was released in early 2016. It covers data
for only 13 states.

What is the National Family Health Survey?

It is a large scale household sample survey conducted in a representative sample of households in India
under the stewardship of Ministry of Health and Family Welfare.
It is the main source of detailed health statistics in India.
Background
The first round of NFHS Survey took place in 1992-93. Three surveys have been conducted so far, third
being in 2005-06.
The International Institute for Population Sciences (IIPS) Mumbai, is the nodal agency for the survey.

HIGHLIGHTS OF THE FOURTH SURVEY

48

States Covered: The 13 states covered are Andhra Pradesh, Goa, Bihar, Haryana, Karnataka, Madhya
Pradesh, Meghalaya, Sikkim, Tamil Nadu, Telangana, Tripura, Uttarakhand and West Bengal plus Union
Territories of Andaman and Nicobar Islands and Puducherry.
Infant Mortality
o Infant Mortality has reduced in all the states and Union Territories covered. All states have below 51
deaths per thousand births.
o But it varies from 10 in Andaman to 51 in Madhya Pradesh.
Sex Ratio and Female Literacy
o Nine out of eleven states showed a declining sex ratio. These states are Goa, Meghalaya, UK, Tripura,
TN, Sikkim, MP, Karnataka, Haryana, Bihar, and WB.
o Only Uttarakhand saw its sex ratio rise. Meghalaya saw it stabilize.
o Womens literacy has risen in all these eleven states. It has increased by 12.5% in all these states since
the last survey.
o Goa tops the list in womens literacy rate with 89% literacy rate.
Fertility Rate
o Women are having fewer children - FR varies from 1.2 in Sikkim to 3.4 in Bihar.
o All First Phase States/UTs except Bihar, Madhya Pradesh and Meghalaya have either achieved or
maintained replacement level of fertility
Institutional Deliveries
o Children delivered in a medical institution under supervision increased by 32%.
o In Bihar, it rose to three-fold, Haryana and MP also showed substantial increase.
Immunisation
o Full immunization coverage among children age 12-23 months varies widely
o 6 out of 10 children have received full immunization in 12 of the 15 States/ UTs.
o Coverage of full immunization among children has increased substantially in the States of Bihar, MP,
Goa, Sikkim, West Bengal and Meghalaya.
Nutrition
o Fewer children under five years of age are now found to be stunted, showing intake of improved
nutrition.
o But in Bihar, MP and Meghalaya more than 40% of children are stunted.
o Anaemia has also declined, but still remains widespread. More than half of children are anaemic in ten
of the 15 States/UTs.

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Each state with the exception of Puducherry showed a sharp rise in obesity levels in both men and
women.
Water and Sanitation
o Indian families in the First Phase households are now more inclined to use improved water and
sanitation facilities.
o Over two-thirds of households in every State/Union Territory have access to an improved source of
drinking water.
o More than 50% of households have access to improved sanitation facilities in all First Phase States/UTs
except Bihar and MP.
Stress: Since the last survey the number of people suffering from hypertension is more in rural India than in
Urban India.
Child Marriages
o Child marriages saw a reduction since the last survey in the eleven states.
o It has reduced by 13.17 % for females and 6.7% for males.
Awareness of HIV
o Awareness about HIV/ AIDS among women has been reducing substantially.
o The percentage of women with comprehensive knowledge of HIV/AIDS in MP declined from 20.3% to
18.1%.
o Similarly, in Bihar, it decreased from 11.7% to 10.1%.
Womens Empowerment
o Marked increase in the percentage of women in the age group of 15-49 years having a savings account
that they use themselves.
o Goa at 82.8% has the maximum number of women who manage their own finances. But Tamil Nadu has
shown a 83% increase from previous survey.
o Bihar tops the list of women owning property with women owning up to 58% property while West
Bengal has the least number of women owning property.

4.2. JALLIKATTU BAN


Why in news?

The Indian Supreme Court has put on hold a recent government order
lifting a ban on Jallikattu, a form of bullfighting which has been
popular for centuries in the state of Tamil Nadu.

Background

49

Animal activists have protested against the practice over the years.
The Animal Welfare Board of India filed a case in the Supreme Court
of India for an outright ban on Jallikattu because of the cruelty to
animals and the threat to public safety involved.
On 27 November 2010, the Supreme Court permitted the Government
of Tamil Nadu to allow Jallikattu for five months in a year.
The Ministry of Environment and Forests issued a notification in 2011
banning the event
But the practice continued to be held under Tamil Nadu Regulation of
Jallikattu Act, 2009.
On 7 May 2014, the Supreme Court of India struck down the state law
and banned Jallikattu altogether under The Prevention of Cruelty to
Animals Act, 1960.
On 8 January 2016, the Ministry of Environment and Forests
permitted the continuation of the tradition under certain conditions,
effectively ending the ban.
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What is Jallikattu?
Jallikattu is a bull-vaulting event
practised in Tamil Nadu as a
part of Pongal celebrations on
Mattu Pongal day.
Participants tackle the bull in an
arena by its hump and try to
hang on till they cross the
finishing line.
Jallikattu is popular in the
districts
of
Madurai,
Tiruchirappalli,
Theni,
Pudukkottai and Dindigul a
region also known as the
Jallikattu belt.
Jallikattu is an ancient sport.
The seals of the Indus Valley
civilisation depict it. Also
Sangam literature (2nd BCE
2nd CE), has many detailed
references to Eru Thazhuvuthal
(hugging the bull).

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The Supreme Court of India on 12 January 2016 ordered a stay on grounds of cruelty to animals, issued
notices to the central government and Tamil Nadu Government and later refused to lift the stay.

Arguments in favour of banning

It is a cruel sport. In order to infuriate the bulls, they are beaten, and are made to pass through a narrow
passage.
During the process, both bulls and players suffer injuries. Few deaths also occurred in this bull taming sport.
In few cases bulls were forced to drink alcohol, werent given food & water etc.
By virtue of being an old tradition it cannot be regarded as a right sport. For example there were wrong
practices like sati, untouchability etc. in our culture.
Supreme Court during its hearing stated that cruelty should not be permitted in the name of culture. It also
stated that if culture is at variance with law, law will take precedence.
The Constitution of India says that it shall be the fundamental duty of every citizen of India to protect
wildlife and to have compassion for all living creatures. Jallikattu, bull races and bull fights goes against this
constitutional requirement of all Indian citizens and contravenes the PCA Act.
Similar kind of event of bull fighting which is organized in Spain, has been banned in Catalonia State in year
2012.

Arguments against banning

Its a part of Tamil culture and has a centuries old history.


There are rules in Jallikattu community to not harm the bulls. But some people are breaking the rules. Ban
cannot be imposed just because of some rule breakers.
Because of the ban, many bulls were sent to slaughter houses with the lack of money to maintain them.
While conducting Jallikattu, medical teams check the bulls before allowing them to participate in the sport.
Under the Convention on Biological Diversity and heritage status practices worldwide, it is customary that
these ancient traditional practices are left as they are but with rules to organise and regulate them.
If jallikattu is banned, livestock keepers will be forced to abandon the raising of native livestock, which
already stands threatened due to the extensive use of motor pumps, tractors and mechanised agriculture.
We will not only lose our breeds but also our self-sufficiency in milk production as well as promotion of
organic farming. If we lose our breeds and import foreign breeds, multinational commercial companies will
dominate the dairy industry in India.
People who want a ban on jallikattu are far removed from village life and do not know how this chain
works.

Way forward

There is a clash of worldviews, and the disagreement reflects the absence of an inclusive approach to the
problem. Animals definitely have the right to be treated in a humane way at the same time culture and
tradition also must be respected.

4.3. NEED FOR SPECIAL LAW FOR CHILD RAPE (FAILURE OF POSCO)
Why in News?

50

In 2015 Madras HC suggested the centre for considering castrating child sexual abusers while dismissing a
petition filed by a UK national seeking to quash sex abuse proceeding against him
Consequently SC in 2016 while hearing a petition filed by the Supreme Court women lawyers association
advised Parliament to consider a law for harsher punishment for such crimes.

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Child rapes in India:

National Crimes Record Bureau statistics state that a total of


48,338 child rape cases were recorded from 2001 to 2011.
India saw an increase of 336% of child rape cases from 2,113 cases
in 2001 to 7,112 cases in 2011.
These are only the tip of the iceberg as the large majority of child
rape cases are not reported to the police while children regularly
become victims of other forms of sexual assault too.
It is known that about nine of 10 rapes and sexual assaults are
carried out by people known to the victim.
The insensitivity and unhelpful attitude of police, lawyers and
untrained hospital staff makes prosecution and conviction difficult.

Why Child rapes are increasing?

A rise in reporting:
o Reporting of child abuse and rape cases have increased due to
the lowering of the stigma attached.
o The rise of social media has created awareness about child
abuse.
o Many instances of celebrities opening up about being abused
in their childhood (for instance, the actor Kalki Koechin) have
also motivated many parents to report.

New criminal laws:


o
o
o

The introduction of POCSO in 2012 and the Criminal Law (Amendment) Act in 2013 was instrumental in
higher reporting of rape against children.
The definition of rape now includes many more sexual actions than were earlier classified as sexual
assault.
Age of consent for girls has been raised from 16 to 18 years. This means boys who have consensual sex
can be charged with rape.

4.4. RESERVATIONS FOR WOMEN IN BIHAR GOVERNMENT JOBS


What is the new move all about?

Bihar government introduced 35% reservations for women in the state government jobs in Bihar at all
levels for which direct recruitment is made, in early 2016.

Similar Initiatives in Bihar in the past

50% reservations for women in panchayat and local body polls in 2006.
50% reservations for women as primary school teachers.
35% reservations for women for the job of police constables and Sub Inspectors.

Why is it needed?

51

The labour rate participation of women of working age in Bihar is 9% , which is one of the lowest in India,
with the all India average being 33%.
Share of women in casual employment in Bihar amount to 50% as against the national average of 31%. This
is evidence of gender disparity.
Better representation in the formal work force with assured wages and incomes will help improve status of
women.
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Female literacy in the largely agricultural state stands at 51.5 percent against male literacy of 71.2 percent,
and a national female literacy rate of 65 percent.

Criticism

Not too many jobs get created in public sector so this policy is mostly symbolic.
Way Forward
Government should ensure effective implementation of the policy.
Government should ensure work environments are women friendly and free of patriarchal attitudes with
stronger Sexual Harassment laws at Work place.
Resolve the gender gap in literacy levels of women for more substantial empowerment.
Supplement such policies with maternity leave benefits and crche facilities.

4.5. PATERNITY LEAVE AND MATERNITY ENTITLEMENTS


Paternity leave

Paternity leave, along the lines of maternity leave, is the paid or unpaid
leave given to male employees when they become a parent.
This is a benefit enjoyed by employees in several western countries for long
and is increasingly becoming a demand and topic of discussion in India too.

Background

Why in News?
Labour Ministry is to
increase maternity leave in
the private sector from 12
weeks to 26.
Meanwhile the issue of
paternity leave in the
private sector continues to
be ignored.

Public sector grants 15 days of paternity leave while there is no law on


paternity leave in the private sector in India.
At least 78 countries provide this provision to their male Employees in varying degrees.

Importance

Involvement of both parents becomes crucial in the wake of increasing number of nuclear families.
Would lead to changes in the relationship and perception of parenting roles.
Would lead to a gender balanced approach towards care giving and unpaid work.
May reduce women taking career break due to pregnancy.
Gives men an opportunity to develop a stronger bond with the child from birth.

Challenges for paternity leave

No standard policy in the private sector in India.


Lack of awareness and understanding of the importance of paternity leave.
Could be misused by the employees
Embarrassment associated with availing paternity leave for men.

Maternity entitlements provisions

52

The increase maternity leave from 12 weeks to 26 weeks is being done in private sector in consideration of
the six months of exclusive breastfeeding required for a childs well-being.
It would put India in a league of just 16 countries across the globe that give women the highest duration of
paid maternity leave.
Women employed in government jobs in India get a six-month maternity leave as per the Central Civil
Service Rules 1972.
Women government employees are allowed to take childcare leave of up to two years in phases at any
point till their child turns 18 years old.

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4.6. HUMAN DEVELOPMENT REPORT 2015

The latest Human Development Report, 2015 was released in


December 2015 by UNDP.

Background

Human Development Report was first launched in the year 1990 by


the United Nations Development Programme (UNDP).
This approach was developed by economist Mahbub Ul Haq and
Nobel Laureate Amartya Sen.
HDR was a result of change in thinking from monetary indicators of
national progress (like GDP) to broader indicators of human progress
like health and education.

What is Human Development


Report?
An annual milestone published by
the
UNDP
which
includes
discussions of major development
issues, trends and policies in the
world.
Also provides an annual ranking of
countries based on the Human
Development Index.

Three dimensions of Human Development

First is Standard of Living which is calculated though the Gross National Income Per Capita.
Second is Health which is calculated through Life Expectancy at Birth.
Third is Education which is calculated through mean years of education among the adult population and
expected years of schooling for children.

HDR also includes four other indices,


Inequality Adjusted HDI: It calculates the HDI after taking account of the inequality prevalent in the
country.
Gender Development Index: It compares female and male HDI values.
Gender Inequality Index: Presents a composite measure of gender inequality using three dimensions:
reproductive health, empowerment and the labour market.
Multidimensional Poverty Index: Measures non income dimensions of poverty.

Highlights of the 2015 Human Development Report

53

The report studies 188 countries and territories of the world.


Explores WORK as the one fundamental factor which increases or decreases human capability.
It differentiates between work and job. While work is not necessarily always rewarded, a job is work
done for a predetermined payment. Difference in their monetary evaluation causes widening inequality.
Norway has ranked first with an HDI value of 0.944.
Norway is followed by Australia, Switzerland and Denmark.
United States ranks 8th while China ranks 90th.
Pakistan and Bangladesh have a rank of 147 and 142 respectively.
Sri Lanka ranks a very high of 73 and falls in the ambit of High HDI countries.
India ranks lower than countries like Namibia, Tajikistan, Guatemala and even Iraq.

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India

HDI: India ranks 130th with an HDI value of 0.609 and falls in category of Medium Developed Countries,
while the very high human development countries have an average value of 0.896
Health: Indias Life Expectancy at Birth is 68 years while the very high human development countries have
an average of 80.5 years.
Education: Indias expected years of schooling are 11.7 years while the very high human development
countries have an average of 16.4 years.
Indias Mean years of schooling is 5.4 years while the very high human development countries have an
average of 11.8 years.
Progress: From 2009 to 2014 India has risen six points in terms of HDI value.
Indias improved ranking is not through improvements in education and health but mainly through income
growth.

Inequality: When Indias HDI is adjusted for inequality its value drops 28%, from 0.609 to 0.435. This trend
is similar for neighbours, Pakistan and Bangladesh also.
Gender: Indias Gender Development Index Value is 0.795 and India ranks below Bangladesh (0.917).
Indias Gender Inequality Index value is 0.563 ranking 130 among 155 countries falling behind Bangladesh
and Pakistan.
Multidimensional Poverty Index: 55.3 per cent of Indias population were multi-dimensionally poor in
2005-06, while another 18.2 per cent lived near multidimensional poverty.
Maternal Mortality Rate for India is 190 (deaths per 100000 live births) while the very high human
development countries have an average of 18.
Infant Mortality Rate for India in 2013 is 41.4 (per 1000 live births) while the very high human development
countries have an average of 5.1.

Comparability of HDR 2015 with its Earlier Versions

The 2015 report uses 2011 published PPP data while previous reports used 2005 data making comparisons
with previous rankings misleading
This report also uses new population data released by UN Population Division. This has impacted the
rankings of countries.

Way Forward

India needs to address the deficiencies in terms of malnutrition, access and quality of education.
Ensure work is quantitatively and qualitatively enhanced for a higher standard of living.
Employment guarantee schemes not enough, need to reform rigid labour market and its obsolete laws,
address child labour and forced labour, wage equality.

4.7. DISABILITY IN INDIA


Why in News?

Definition of Disability in India

PM Narendra Modi made a suggestion of changing the


nomenclature of disabled from viklang to divyang.
Several disabled peoples organizations have opposed the
use of the term divyang.

Government Initiatives for the Disabled in India

Persons with Disability Act, 1995 defines


Disability under seven categories: blindness, low
vision, leprosy-cured, hearing impairment, loco
motor disability, mental retardation and mental
illness.
2001 Census says 2.21% are disabled in India.

Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.
India signed the UN Convention on Rights of Persons with Disability.
term "divyang" is being considered in place of "viklang" to change mindset
the term would help in raising self-confidence and subsequent empowerment

54

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Critique of Divyang

Mere change of terminology is not going to bring about any change in the manner in which people with
disabilities are treated.
It will only invoke sympathy and underline that charity is what is needed
disability is not a divine gift and would only tend to create myths

Issues around Disability in India

Disability is not being measured properly in India.


o Not all censuses in India have measured Disability.
o The ones that have measured have used different definitions for disability making comparisons difficult.
o Changes in definition makes someone disabled in one census and not disabled in another.
India looks at disability from medical or pathological angle only.
Most developed countries look from social angle, highlighting institutional and social arrangements
preventing those with impairments from leading normal lives.
Census depends on self-reporting of disability; this may leave out mental disability and even physical
disability.
Lack of Institutional and Infrastructural Support for the disabled in India.

Way Forward

Kerala became first state to conduct a census of its own called Kerala Disability Census for 2014-15. Other
states must follow example.
The new Rights of Persons with Disability proposes to increase job reservations for the disabled from 3
percent to 5 percent.
It also seeks to widen scope of disabilities covered under the bill from seven to nineteen.
Accessibility and support services for persons with disability must be increased manifold.

4.8. DALIT CAPITALISM


What is Dalit Capitalism?

Why in News

A term being increasingly used by the Indian media to refer to


the use of entrepreneurship by the Dalit community in India as a
way of upward economic and social mobility.
The central idea is money as the ultimate equalizer. Using
capitalism as a way of obliterating the disadvantages imposed
by caste.

In a speech at the National Conference of


Dalit Entrepreneurs in December 2015,
PM Narendra Modi spoke about the
importance of rapid industrialisation as
the best bet for social advancement.

Background

55

The Dalit Indian Chamber of Commerce and Industry (DCCI) was founded in 2005 along the lines of FICCI in
2005.
The DICCI is an association of entrepreneurs from the Scheduled Castes and Scheduled Tribes
It promotes business enterprises for Dalits in India and has the self-purported goal of being job givers
rather than job seekers.
They reject reservations by the government as a way of dalit emancipation and feel it has just added
negative stereotype on the dalits.
Kalpana Saroj and Milind Kamble, two Dalit billionaires, were awarded the Padma Awards in 2013. They are
also members of DICCI.
In 2013 DICCI also launched the DICCI SME fund which is a venture capital fund with a aim to raise Rs 500
crore over 10 years.

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Why is Dalit Capitalism Needed?

The condition of dalits bettered only marginally and data from the Economic Census show that as late as
2005, Scheduled Casted owned just 9.8 percent of the 42 million enterprises that employ around 99 million
people, while they have a share of 16.4 percent in the population.
National share of enterprises owned by SCs in 2005 was virtually the same as was in the year 1990.

Hurdles Faced by Dalit Capitalism

Caste based discrimination still practiced in India even in the free market.
Lack of access to existing and well established business networks which are a must in a country like India to
successfully transact business.
Banks dont easily lend to the community depriving them of the much needed capital for starting ventures.
Dalits are also a not a monolithic community and fissures of clan, strata might creep into the achievement
of the goal of Dalit Capitalism

Criticism of Dalit Capitalism

Leftist critique of Dalit Capitalism would argue that Dalits are using the inherently exploitative system of
capitalism for their emancipation and advancement. The previously exploited will act as exploiters now.
Free Market has not acted as an equalizer in the US where African Americans still languish at the bottom of
most socio-economic indicators.

Government steps

National Schedule Caste Finance and Development Corporation offers loans to the SC Community for
Entrepreneurship development and other activities.
The IFCI provides venture capital loans for the SCs upto an amount of 15 crores.
Recently launched Start Up India Programme will provide support to entrepreneurs including credit
guarantee programme for SCs.
MUDRA Bank will give leading priority to SC/ST for extending credit facilities.
DICCI SME fund plans to shell out loans worth 500 crore in the next 10 years.
The government has launched the Green Business Scheme. Green Business Scheme envisioned financial
assistance to Dalits to combat climate change.

4.9. END OF EBOLA EPIDEMIC


(For details refer August 2015 Current Affairs)
Background

Ebola virus disease (EVD), formerly known as Ebola haemorrhagic fever, is a severe, often fatal illness in
humans.
The virus is transmitted to people from wild animals and spreads in the human population through humanto-human transmission.
The worst affected countries were Sierra Leone, Guinea and Liberia.
Guinea, Sierra Leone and Liberia had very weak health systems and lacked human and infrastructural
resources.

What is the current status of the disease in Africa?

56

Liberia was declared free of the disease by WHO in May, 2015 and then again in January 2016 as new cases
emerged two times after that.
November 2015, Sierra Leone and Guinea were declared free of Ebola virus by WHO.

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How does WHO declare a country to be free of the virus?

Declared free after the last confirmed case has tested negative twice on the blood samples a country has to
go through an incubation period of 42 days.
Bur thereafter the countries are placed on a 90 days heightened surveillance.

What was the impact of Ebola in its latest outbreak?

Ebola has killed more than 11300 people since 2014 and infected 29000 people.
Stigma and risk aversion have affected contacts with the West African countries and hence greatly affected
the economy.
Poverty and food insecurity could increase as a result of the impact on economy.

Is there a cure for Ebola?

There is as yet no proven treatment available for EVD.


However, a range of potential treatments including blood products, immune therapies and drug therapies
are currently being evaluated.
No licensed vaccines are available yet, but 2 potential vaccines are undergoing human safety testing.

Why is the WHO criticised?

It had a very sluggish response to the disease when it began in 2014 although intensified efforts later.
This lead to a very high death toll in the beginning.

Lessons for India

Outbreak in any country is a threat to all countries.


It is possible to contain the virus early if the response is swift and based on evidence.
Crucial to invest in a sustainable public health infrastructure or health systems.
The panic and hysteria can lead to counterproductive measures.

4.10. KERALA BECOMES THE FIRST TO ACHIEVE 100% LITERACY

Kerala became the first state in the country to achieve 100 percent primary education.
This has been achieved through the primary education equivalency drive of the state literacy mission
Athulyam.

More about Athulyam


It was launched in March 2013 and was carried out in two phases.
It had identified people who had not completed their primary education.
The programme was meant to provide primary school education to people aged between 15 and 50.
After this these people were given five-month training, enabling them to attend the fourth equivalency
examination.
Two Lakh people were enrolled under this programme.

4.11. NATIONAL CENTRE FOR AGEING

The Union Health Ministry recently approved two National Centre for Ageing to come up in India.

What are the National Centres for Ageing?

57

Highly specialized centers of excellence for geriatric care or care of the elderly.
They will develop manuals for home care and provide training to the specialists and formulate protocols in
areas of elderly care.
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The Centres will be set up under the National Programme for Health Care of the Elderly.
They will be set up during the twelfth five year plan period at the
What is Geriatric Care?
All India Institute of Medical Sciences, New Delhi and the other
Also known as Ageing Life Care, is the
at the Madras Medical College in Chennai
process of planning and coordinating

Objectives

To provide specialized health care to the elderly as they are


highly prone to diseases.
To fill the gap caused by no specialization in geriatric medicine in
India.
Training of health professionals in the area.
Research Activities in geriatric care.
200 bedded in patient facility for the elderly.

care of the elderly and others with


physical or mental impairments to meet
their long term care needs, improve
their quality of life and maintain their
independence for as long as possible.

What are the Problems faced by elderly in India?

Seventy percent aged depend on others for their day to day maintenance. Its 85 percent in case of elderly
women.
79% in rural areas and 35% in urban areas do not get any benefits after retirement.
10% of elderly in India suffer from depression and 40-50% require psychiatric or psychological intervention
at some point.
Informal support and family structures are disappearing fast and formal structures have not replaced them
adequately.

Way Ahead

Promoting awareness about the concept of healthy ageing and the health problems and to involve the
community in the process of their mitigation.
Exploration of PPP models in the infrastructure development of health care for elderly.
Special attention to elderly who are disabled, poor, in rural areas, SC/STs, women, destitute.

4.12. BALAMURTHAM PROGRAMME


What is Balamrutham?

Balamrutham is the weaning food introduced under ICDS to provide improved supplementary nutrition to
children between 7 months to 3 years.
It is fortified and thus provides 50% of iron, calcium, vitamins and other RDA that children require per day.

What is the Balamrutham Programme?

The Balamrutham Programme was started by the Andhra Pradesh Government in 2013.
Under this programme children enrolled with Anganwadis were
Other Government Nutrition Initiatives
given Balamrutham of 2.5kg per child to provide quality diet to
in India
infants

What is the Controversy surrounding Balamrutham?

58

AP foods which is located in Telangana now, used to supply


Balamrutham to the whole of Andhra.
After the bifurcation, supply of Balamrutham to Andhra stopped

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National programmes such as Sarva


Shiksha Abhiyan, Mid-Day Meal
Programme, the NRHM or Janani
Shishu Suraksha Karyakram.
National Nutrition Mission.
Rashtriya Bal Swasthya Karyakram
Weekly
Iron
Folic
Acid
Supplementation
Universal supplementation of iron and
vitamin A.
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What is the significance of the Balamrutham Programme?

59

Poor quality of diet is among the chief reasons for the increasing IMR in the country.
According to the Human Development Report, 2015 India has an IMR of 41 per thousand live births which is
very high compared to the developed countries.
Nutritious food for their infants is out of the reach of most mothers in India.

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5. SCIENCE AND TECHNOLOGY


5.1. ZIKA VIRUS
Origin
It was first identified in monkeys in Uganda in 1947.
The first human case was detected in Nigeria in 1954 and there have been further outbreaks in Africa, South
East Asia and the Pacific Islands.
Countries Affected

In May 2015, it was reported in Brazil and has spread rapidly.


It has since also been reported in: Barbados, Bolivia, Colombia, the Dominican Republic, Ecuador, El
Salvador, French Guiana, Guatemala, Guadeloupe, Guyana, Haiti, Honduras, Martinique, Mexico, Panama,
Paraguay, Puerto Rico, Saint Martin, Suriname and Venezuela.
Recently, few cases of Zika Virus has been confirmed in Texas, USA.
According to senior experts in WHO, the Zika virus outbreak in Latin America could be a bigger threat to
global health than the Ebola epidemic.

Cycle of Spread

It is spread by Aedes mosquitoes.


They are found throughout the Americas except
for Canada and Chile where it is too cold for
them to survive.
If mosquitoes drink the blood of an infected
person they can then infect subsequent people
they bite.
Unlike the mosquitoes that spread malaria, they
are mostly active during the day, so bed nets
offer limited protection.

Affected People

Most virus carriers are symptomless.


It is a silent infection in a group of highly vulnerable individuals pregnant women which in turn is
associated with a horrible outcome for their
babies.

How to prevent it?

As there is no treatment/vaccination available


for the treatment of Zika virus, the only option is
to reduce the risk of being bitten. Hence people
are advised toUse insect repellents
Cover up with long-sleeved clothes
Keep windows and doors closed

Actions Taken

60

The Indian Health Ministry have started constituting a technical group to monitor the spread of Zika virus in
India.
At International level, the WHO will also convene an international health regulations emergency committee
on Zika on February 1st.
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5.2. SPACE PARKS: ISRO

The Indian space agency will open a 100-acre Space Park in Bangalore where private industry players would
be allowed to set up facilities to make subsystems and components for satellites.
ISRO wants to groom and engage domestic industry in the launch vehicles area from integrating sub-systems
up to assembling, and even launching the PSLV.
On the spacecraft front, ISRO plans to increasingly support small and mid-sized industries at its 10-year-old
second spacecraft complex, the 100-acre ISITE, at Marathahalli in Bengaluru.
The Space Park will also contribute to the governments Make in India initiative as the private industry and
HAL (Hindustan Aeronautics Ltd) have been helping us in making rockets and satellites over the years.
Also in the pipeline is allowing private players to make satellites and providing them facility at Sriharikota for
launch.

Why is ISRO helping private sector?

It could help ISRO to focus on its other core activities and


Develop an ecosystem (including private players) in space research and production.
To cater to the increasing demand new satellites and replacing old ones.

5.3. canSAR DATABASE

It is a huge 3-dimensional pool of Big Data that provides information about cancer drugs, chemicals, and
molecular structures for improving cancer therapy designs.
Launched in 2011, it was developed at the Cancer Research UK Cancer Therapeutics Unit at the Institute of
Cancer Research.
The goal was to create a massive database that would map how millions of drugs impact human proteins
and molecules, then combine that with information about genes and clinical trial results.
The database provides 3-dimensional models of the structures of 110,000 molecules to identify the cavities
on cancer-causing molecules, and then create new drugs to attack them.

5.4. NANO TECHNOLOGY AND SUPERBUGS

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A new, adaptive, light-activated Nano therapy could kill superbugs that have become resistant to antibiotics.
The dots, which are about 20,000 times smaller than a human hair and resemble the tiny semiconductors
used in consumer electronics, successfully killed 92 percent of drug-resistant bacterial cells in a lab-grown
culture.
Special Features of Quantum dots based therapy
o Targeted tissue damage: Previous research on nanoparticles showed that gold and silver nanoparticles
can be harmful to healthy tissue as well as the target bacteria. But that kind of collateral damage doesn't
seem to be a problem with the new quantum dots.
o Made of semiconducting materials like cadmium telluride instead of metal, they can be tailored to
specific infections, slipping inside the disease-causing germs and, when activated by light, triggering
chemical reactions that destroy them.
A typical weak light source (a lamp, well-lighted room, sunlight, etc.) is enough to activate these quantum
dots.
Depending on the nature of the infection several applications for quantum dots can be: covering infected
cuts might simply be with nanoparticle-impregnated bandages and injecting quantum dots into infectious
system.
In addition, hospital rooms and medical instruments might be treated with a dot-containing disinfectant in
order to reduce the risk of spreading infections from patient to patient.
But more research, including clinical trials, will be needed to develop quantum dot therapy and prove its
safety and effectiveness in humans.
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5.5. HYDROGEN BOMB


Why in news?
North Korea announced on January 6 that it had successfully tested a hydrogen bomb.
What is a hydrogen bomb?

Hydrogen bombs are thermonuclear weapons.


A thermonuclear weapon is a nuclear weapon that uses the
energy from a primary nuclear fission reaction to compress
and ignite a secondary nuclear fusion reaction.
The result is greatly increased explosive power when
compared to single-stage fission weapons.
It is colloquially referred to as a hydrogen bomb or H-bomb
because it employs fusion of isotopes of hydrogen.

Salient Features of Hydrogen Bomb

62

A Hydrogen bomb is a much more powerful atomic weapon.


The energy released in a Hydrogen bomb is several magnitudes higher than an Atom bomb.
Hydrogen bombs use the fusion of hydrogen atoms, hence its name.
A fusion bomb is more sophisticated and difficult to make, since it requires a much higher temperature -- in
the order of millions of degrees centigrade. So a fission is carried out first to produce more energy, which is
then used to initiate fusion. In a fusion bomb, a fission device has to be triggered first.
It is easier to make Hydrogen bombs in small size, so it is easier to place them in missiles.
Hiroshima and Nagasaki both were atomic bombs and till date Hydrogen bombs have never been used in
war.

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5.6. HVDC TECHNOLOGY


Why in News?

In next three years, India will see some 34,000 megawatt (Mw) of power being transported over long
distances, primarily to the northern and the southern regions.
This will be made possible through setting up of large trunk transmission HVDC lines.

What is HVDC?

High-voltage direct current (HVDC) is a technology developed to increase the efficiency of power
transmission over long distances by using Direct current transmission at high voltage.

Background and Technology:

Power stations generate alternating current (AC) and most power lines carry AC that oscillates with 50 or 60
cycles per second, whether for the high, medium or low-voltage distribution grid.
Power also reaches consumers in homes, industries and offices as AC.
Direct current doesn't oscillate, so less energy is lost during transmission using DC.
The current is changed in a converter station and transmitted to the receiving point by an overhead line or
cable.
It is then restored to AC in another converter station and injected into the receiving AC network.
A 2,000-km long DC transmission line at 800 kV loses about 5 percent of its power, while the power losses in
an AC line of similar voltage are about twice as high.

Why HVDC demand is increasing?

63

rising energy needs


less electricity is lost in transmission than with conventional AC technology
requires fewer transmission lines, meaning that less land has to be cleared
Why HVDC only for longer transmission?
Because special equipment is needed to convert electricity from alternating current to direct current, HVDC
is cheaper only over long distances, typically more than 600 kilometers for overhead lines and more than 50
km for underwater cables

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HVDCs relevance for renewable energy?

There are challenges to large scale integration of renewable generation into the energy mix.
To be viable, projects have to be installed where they can be fully and efficiently utilized, and such locations
are typically far away from load centers that need the energy the most.
Hence, integrating renewable generation on a large scale will also require a considerable increase in power
transmission capacity and efficiency.

Indias first HVDC transmission line

Indias first high-voltage, direct-current (HVDC) transmission line was built by the state-owned PowerGrid
connecting the northern states with the north-eastern ones.
The HVDC corridor would facilitate transfer of 24,000 Mw from future power generation projects in the
northeastern region and Bhutan.
The corridor would help resolve the issue of congestion in the north and northeast regions.

5.7. OPOGENETICS AND CLARITY


Why in news?

Prof. Deisseroth (Professor of Bioengineering and of Psychiatry


and Behavioural Sciences at Stanford University) was recently
awarded prestigious Life Sciences Breakthrough Prize for 2016.
He has devised two path-breaking techniques that are changing
understanding and control of the brain.

What is Optogenetics?

It is combining genetics and optics.


It is a neuromodulation method employed in neuroscience that uses a combination of techniques from
optics and genetics to control and monitor the activities of individual neurons in living tissueeven within
freely-moving animalsand to precisely measure the effects of those manipulations in real-time
Use of optogenetics
It has potential to treat disease like Parkinsons disease.
It can also be used to cure blindness.

What is CLARITY?

CLARITY (Clear Lipid-exchanged Acrylamide-hybridized Rigid


Imaging / Immunostaining / in situ-hybridizationcompatible Tissue hydrogel) is a method of making brain
tissue transparent using acrylamide-based hydrogels built
from within, and linked to, the tissue.

5.8. CLOUD COMPUTING AND BIG DATA


Why in news?

64

At the recently concluded 103rd Indian Science Congress,


experts said that Cloud computing can be the solution to Big
data problem.

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What is Big Data?

Big data is a term that describes the large volume of data both structured and unstructured beyond the
ability of commonly used software tools to capture, curate, manage, and process data within a tolerable
elapsed time.
Its what organizations do with the data that matters. Big data can be analyzed for insights that lead to
better decisions and strategic business moves.
Big data is characterized by 3Vs

Applications of Big Data

Companies use big data to better understand and target customers by bringing together data from their own
transactions as well as social media data and even weather predictions.
Businesses optimize their processes by tracking and analyzing their supply chain delivery routes and combine
that data this with live traffic updates. Others use machine data to optimize the service cycles of their
equipment and predict potential faults.
Big Data is used in healthcare to find new cures for cancer, to optimize treatment and even predict diseases
before any physical symptoms appear.
Big Data is used to analyze and improve the performance of individuals (at sports, at home or work) where
data from sensors in equipment and wearable devices can be combined with video analytics to get insights
that traditionally where impossible to see.
Police forces and security agencies use big data to prevent cyber-attacks, detect credit card fraud, foil
terrorism and even predict criminal activity.
Big Data is used to improve our homes, cities and countries by e.g. optimizing the heating or lighting in our
homes, the traffic flow in our cities, or the energy grit across the country.

How is cloud computing related to Big data?

Cloud computing is very important in BIG data analytics due to its application sharing and cost effective
properties.
This technology will help in current genomic data storage and analysis.
To head towards sustainable livelihood and development, such analyses with respect to agriculture including
plants and animals are crucial.
90% of the data in the world today has been created in the last two years alone.

5.9. FACEBOOKS FREE BASICS TUSSLES WITH TRAI


Why in news?

The Telecom Regulatory Authority of India accused Facebook for turning


the consultation over differential pricing of data services into an
orchestrated opinion poll on its Free Basics product.
Indias telecom regulator has received over 14 lakh responses in support
of Facebooks Free Basics, virtually all redundant for formulating a policy
as the regulator had sought views on the principle of differential pricing
for data services.

What is Free Basics?

65

Internet.org was rechristened Free Basics in September.


According to Facebook, it is an open platform that gives Indian
developers the opportunity to make their services and websites available
free of cost to those who cannot afford internet access.
However, this free access is limited to partner websites and applications.
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TRAIS Consultation paper:


The consultation paper on
differential pricing of data
services raises concerns over
zero-rating tariff models a
practice
wherein
service
providers offer free data to users
for select applications and
websites. According to Internet
activists, this model violates the
principle of net neutrality as it
restricts access to free, open
Internet for users, making the
paper key to the ongoing debate
on net neutrality.
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It was launched two years ago globally in partnership with Samsung, Ericsson, MediaTek, Opera Software,
Nokia and Qualcomm.

Whats the problem with Free Basics?

It doesnt offer equal and unbiased access to all services.


Facebook is partnering with ISPs to provide preferential and selective access to a set of app developers and
services.
Critics argue that the internet should be free and equal for all users. This is also the cornerstone of net
neutrality.

5.10. HISAR CENTRE SECOND INSTITUTE TO CLONE BUFFALO

ICAR-Central Institute for Research on Buffaloes (CIRB) has produced cloned calf called HISAR GOURAV.
This cloned buffalo calf is distinct from the earlier clones produced in India, as this is produced from cells of
ventral side of tail of superior buffalo bull.
This part is least exposed to sunlight and may have less mutation rate, and can be good choice for isolation
of donor cells to produce healthy clones.
It has been emphasized that the use of adult somatic cells of proven males or quality females for cloning can
bring revolution by multiplying the superior buffalo germplasm in country.
With this achievement CIRB becomes worlds third and Indias second institute to produce cloned buffalo.
National Dairy Research Institute in Karnal was the first to produce a cloned calf in India.
This achievement has been made under the project entitled, Cloning for conservation and multiplication of
superior buffalo germplasm.

5.11. ARTIFICIAL INTELLIGENCE


In the news:

Marvin Minsky, a pioneer of Artificial Intelligence died on 24 January due to cerebral haemorrhage.

What is artificial intelligence?

It is the science and engineering of making intelligent machines, especially intelligent computer programs.
It is related to the similar task of using computers to understand human intelligence, but AI does not have to
confine itself to methods that are biologically observable.
AI is not always about simulating human intelligence. There is something about how to make machines solve
problems by observing other people.
However, most work in AI involves studying the problems the world presents to intelligence rather than
studying people or animals.
AI researchers are free to use methods that are not observed in people or that involve much more
computing than people can do.

5.12. EXPERIMENTAL
CIRCUMSTANCES

MEDICINES

UNDER

THE

EXCEPTIONAL

Why in news?

66

World Health Organization (WHO) in August 2014 declared that it was not unethical to use experimental
medicines (Zmap and convalescent plasma therapy) under the exceptional circumstances as witnessed in
West Africa during Ebola outbreak.
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What is convalescent plasma technique and how does it work?

The rationale of techniques is that the plasma taken from survivors will have antibodies (against the virus)
that would fight the virus. It is similar to passive immunity (which results when a person is given someone
elses antibodies) technique.
However, its potential depends on amount of antibodies introduced. There is a direct correlation between
antibody level and its effectiveness.
It had once been used successfully to treat measles, mumps, pneumonia, influenza and diphtheria.

Results of the trail:

It was seen that both antibody and cell mediated responses are important to treat Ebola.
Higher amount of Antibodies need to be infused to make it effective.
Children younger than five and pregnant women have been found to benefit the most when compared with
others.
The plasma was not found to be safe for treatment of the Ebola virus disease.
The virus has been found in semen and in the eye long after it was cleared from the blood, care need to be
taken to avoid giving plasma containing the virus.
WHO has said trial is acceptable at all stakeholders level patients, family, health-care providers and
researchers.
Such trails are essential for future experiments.

5.13. 103 RD INDIAN SCIENCE CONGRESS AND TECHNOLOGY VISION


DOCUMENT 2035
Why in news?

103rd Indian Science congress in Mysuru was organized with the focal theme Science and Technology for
Indigenous Development in India.
It has been prepared by Technology Information, Forecasting and Assessment Council, (TIFAC)

Aim of Technology Vision Document 2035:

The Aim of this Technology Vision Document 2035 is to ensure the Security, Enhancing of Prosperity, and
Enhancing Identity of every Indian.

It also identifies twelve (12) prerogatives- (six for meeting individual needs and six for the collective needs) that
should be available to each and every Indian. These are:

67

It categorizes technologies into a six-fold classification from an Indian perspective which is as follows:
Technology Leadership niche technologies in which we have core competencies, skilled manpower,
infrastructure and a traditional knowledge base eg., Nuclear Energy, Space Science.
Technology Independence strategic technologies that we would have to develop on our own as they may
not be obtainable from elsewhere eg. Defence sector.
Technology Innovation linking disparate technologies together or making a breakthrough in one
technology and applying it to another eg. solar cells patterned on chlorophyll based synthetic pathway are a
potent future source of renewable energy.
Technology Adoption obtain technologies from elsewhere, modify them according to local needs and
reduce dependence on other sources eg., foreign collaboration in the sectors of rainwater harvesting, agribiotech, desalination, energy efficient buildings.
Technology Constraints areas where technology is threatening and problematic i.e. having a negative
social or environmental impact because of serious legal and ethical issues eg., Genetically Modified(GM)
Crops.

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The Vision Document gives a Call to Action to all the key stakeholders

Technical Education Institutions engage in advanced research on a large scale leading to path-breaking
innovations.
Government enhances financial support from current 1% to long-envisaged 2% of the GDP.
Full-time equivalent Scientists in the core research sector should increase.
Private Sector Participation and Investment in evolving technologies that is readily deployable and is
translatable from lab to field thereby increasing efficiency in terms of technology and economic returns.
Academia-Intelligentsia-Industry connect is established via idea exchange, innovative curricula design,
based on the needs of the industry, industry-sponsored student internships and research fellowships inter
alia.
Creation of a Research Ecosystem to achieve translation of research to technology product/process by
integrating students, researchers and entrepreneurs.

Three key activities identified as a part of


the Call to Action

Knowledge creation: It says that India


cannot afford not to be in the forefront
of the knowledge revolution, either
applied or pure.
Ecosystem design for innovation and
development: the primary responsibility
for ecosystem design must necessarily
rests with government authorities.
Technology deployment: with launching
certain national missions involving
specific targets, defined timelines
requiring only a few carefully defined
identified players.

5.14. 23 RD NATIONAL CHILDREN SCIENCE CONGRESS (NCSC)

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23rd NCSC (started in 1993) was based on the theme


of 'Understanding Weather and Climate'
Nearly 1,400 students in age group 10 to 17 years,
from various schools presented projects under various
categories depicting the problems faced by world due
to climate change or possible solutions.
More than 300 scientists and researchers from
Department of Science and Technology also
participated.
To stimulate scientific temperament and learning the
scientific methodology.

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Objectives of NCSC:
Forum for young scientists to pursue their natural
curiosity and to quench their thirst for creativity by
experimenting on open-ended problems.
To make children feel that science is all around and
you can gain knowledge as well as solve many
problems.
To encourage children to visualize future of the
nation and help build generation of sensitive,
responsible citizens.

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6. INTERNAL SECURITY/LAW AND ORDER


6.1. NATIONAL SECURITY DOCTRINE
Why in news?

In the aftermath of Pathankot attacks experts are of views that there is an imminent need for National
Security Doctrine.

Issues in Indias national security

Inconsistent security response i.e., calling of NSG to combat in Pathankot, even when trained army
personnel acquainted to local terrain were available at the site itself.
Similarly, in Mumbai attacks, NSG was stationed in city itself but took long time to come to action.
Ignoring or inaction on intelligence inputs.
Heavy casualties due to improper co-ordination among security agencies.
No accountability even after failures of any agency

WHY INDIA NEEDS A SECURITY DOCTRINE

Prompt and relevant decision making would result in consistent security response at the time of
insurgencies. The decisions would be guided by the national security strategy enshrined in the doctrine.
Maintaining proper co-ordination among security establishments at both at central and federal level. This
would avoid terror attacks which occurred even when intelligence agencies have inputs.
This would make the security establishment more accountable in case of any failures to combat terror
attacks.
A prompt and successful handling can ensure peace, progress and development within the country.

WHAT IS A NATIONAL SECURITY DOCTRINE?

A Doctrine is a stated principle of government policy in different domains viz foreign affairs, military etc.
NSD is a document which guides the government on security matters at both strategic and operational level.
NSD is applied through strategy, tactics and specific operations at different situation underlined in the
doctrine.
Currently, only defense establishment in India have a doctrine for external security.

6.2. ANALYSIS OF PATHANKOT ATTACK


Why in News?

On 2 January 2016, a heavily armed group attacked the Pathankot Air


Force Station, part of the Western Air Command of the Indian Air Force.

Impact of such attacks on India-Pakistan relations

69

Pathankot Air Force Station is a


military airport located 3 km
from Pathankot, India, on the
Pathankot Majra Road. It is
part
of
the Western
Air
Command of
the Indian
Air
Force and covers an area of
approximately 2000 acres.

The attack on the Pathankot IAF base is part of a long string of spoiler
attacks aimed at undermining India-Pakistan relations.
Pakistani militants with deep connections to the Pakistan army, such
Lashkar-e-Taiba and Jaish-e-Muhammad, have regularly struck after
signs of a thaw.
A research shows that such spoiler attacks will not have significant impact, as successful spoiling rests on
conditions that currently dont exist in India.

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Concerns

Ineffectiveness of Indias Pakistan Policy


New Delhi lacks the capability to impose costs for cross-border terrorism
India still has no written national security doctrine, and whatever is practised as the doctrine, and strategy, is
vastly inadequate.
Lack of Political consensus on national issues
Security lapses- lack of security, terrorists penetrated the camp with ease.
Lack of robust national security doctrine
Lack of coordination between various security agencies
Lack of cohesive command and control structure
Too many holes in the intelligence security ecosystem
o Pinpointed intelligence input ignored.
o Perimeter of the Pathankot airbase not secured despite warnings.
o National Security Guard (NSG) sent in when the Army has a crack Special Forces unit nearby.
o Border Security Force ineffectiveness.
o Ineffectiveness of surveillance equipment and night vision devices.

Lessons from Pathankot attack/Way forward

Need to differentiate between the Pakistan government and non-state actors and show greater diplomatic
restraint
Need to Evolve national security doctrine to respond to such attacks
o The proposed security doctrine must be anchored in the foundational values of the Constitution.
o The doctrine must be accompanied by a national security strategy that spells out the command and
control structures for meeting eventualities such as terror strikes.
Revival of NATGRID.
Political consensus must be evolved, in a publicly transparent manner, to reflect the complex challenge
facing the country.
Security around a forward air force base needs to be much better.
As these attacks have become predictable, India needs to have blueprints in place to protect Indian nuclear
installations and naval bases, as well as Indian diplomatic missions.
Punjab is facing two serious challenges- corruption and drug trafficking India cannot afford such
mismanagement of a strategic border state.
India must now activate its diplomacy in the U.S. to act tougher on Pakistan.
India must prepare for an effective and integral response to the threat of cross-border terrorism. When it
comes to dealing with terrorism, there is a need to further improve Centre-state collaboration as well as
civil-military coordination.
Border defence, intelligence and internal security reforms are the best defence against these urban
spectacular threats.

6.3. COOPERATIOON IN CYBERSECURITY

70

Cyber-attacks in India have increased in last few years.


As the government aims to increase the Internet penetration further, more and more local organizations
may be exposed to cyberattacks.
The present government is making efforts to establish extensive cybersecurity cooperation to ensure
protected cyber networks.
This would help in mutual sharing of information and best-practices, both of which are critical a
constructing a robust response to conspicuous cyber incidents. For instance,
o India and UK are collaborating for joint training of its cybersecurity professionals and setting up a
Cybersecurity training center for exchange of information and expertise. UK would also help in
establishing a Cybercrime Unit in India.
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India and China are establishing high level ministerial


mechanisms under their respective Home ministries
to help in information exchange, law enforcement
and technical capacity building to jointly combat
cybercriminal activity.
India and USA have jointly committed to strengthen
cooperation on a range of cybersecurity issues.

LATEST DEVELOPMENT

The Indian Computer Emergency Response Team (CERTIn) has signed cooperation pacts with its counterparts in
Malaysia, Singapore and Japan for cyber security.
This will also facilitate regular dialogues pertaining to
prevalent policies and best practices and mutual
response to cyber-security incidents.

CERT-IN: BACKGROUND
The Indian Computer Emergency Response
Team (CERT-In) is the national nodal agency
since 2004 for responding to cyber security
incidents as and when they occur.
It operates under Ministry of Communication
and Information Technology.
Its major work includes collection, analysis and
dissemination of information on cyber incidents,
forecasting alerts and taking emergency
measures to handle a cyber-situation. It also
coordinates the cyber incidents response
activities and issues guidelines and advisories on
best practices for prevention, reporting and
response.

6.4. NATGRID
Why in news?

To fight against terrorism Central government has decided to revive NATGRID (National Intelligence Grid).

What is NATGRID?

NATGRID is the integrated intelligence grid connecting databases of core security agencies of the
Government of India to collect comprehensive patterns of intelligence that can be readily accessed by
intelligence agencies.
It was conceived in the wake of the 2008 Mumbai attacks.

Functioning

NATGRID is an intelligence sharing network that collates data from the standalone databases of the various
agencies and ministries of the Indian government.
It is a counter terrorism measure that collects and collates a host of information from government
databases including tax and bank account details, credit card transactions, visa and immigration records and
itineraries of rail and air travel.
This combined data will be made available to 11 central agencies, which are: Research and Analysis Wing,
the Intelligence Bureau, Central Bureau of Investigation, Financial intelligence unit, Central Board of Direct
Taxes, Directorate of Revenue Intelligence, Enforcement Directorate, Narcotics Control Bureau, Central
Board of Excise and Customs and the Directorate General of Central Excise Intelligence.

Need for Revamp

71

In its present form, NATGRID suffers from many inadequacies, some due to bureaucratic red tape and others
due to fundamental flaws in the system.
Social media and other platforms have become recruitment sites and propaganda machines for terrorist
groups, and formal banking channels are used as much as informal ones to transact terror funding.
Weaknesses in India's intelligence gathering and action networks.
India is not far from the days when cyber warfare will become its primary security issue. For example in
September last year, the website of the government of Kerala was hacked by Pakistani hackers.

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Importance of NATGRID

It will become a secure centralised database to stream sensitive information from 21 sets of data sources.
The database would be accessible to authorised persons from 11 agencies on a case-to-case basis, and only
for professional investigations into suspected cases of terrorism.
It can provide the real time tip-offs and predictive intelligence to deal with the terrorist threat.
It will help to collate scattered information into a transparent, accessible, integrated grid and do away with
the inefficiencies associated with information asymmetries that hitherto delayed counter-terror operations.
It will help fight Financial Terrorism.

Criticism

The state police or different defence departments are not mentioned among the 10 "user agencies" who will
be able to electronically access 21 sensitive databases.
NATGRID effectiveness will be reduced if the Central agencies are not willing to share current intelligence
with the State agencies.
NATGRID faced opposition on charges of possible violations of privacy and leakage of confidential personal
information.
NATGRID will have access to all kinds of data under one roof and can also prove to be counter-productive if
misused.
NATGRID also faces issues like consolidating data from a huge population, lack of compatibility with data sets
in regional languages, risk of spies ratting out vital information to outside sources and security from external
attacks.

Precautions

As the NATGRID will have very sensitive information about individuals, potential for its misuse is also very
high.
Government must take measures to ensure that the information does not fall through the firewalls that
guard it.
NATGRID has the potential to become Indias go-to grid for a 360-degree perspective to prevent and contain
crises.

6.5. TEJAS

Indias indigenous Light Combat Aircraft (LCA) Tejas participated


in the Bahrain International Air Show 2016 recently. This was
the first appearance of Tejas at a foreign air show.
LCA Tejas has not been inducted into the IAF yet.
Starting in 1984, Tejas has been designed and developed by
Aeronautical Development Agency with Hindustan Aeronautics
Ltd and Defence Research and Development Organisation.

JF-17

72

JF-17 Thunder is a third-generation fighter co-produced by Pakistan and China. It has been in service since
2010.

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Comparison of Indias Tejas with Pakistans JF-17 Thunder

6.6. INDIAN RESERVE BATTALION FORCES

The central government has recently decided to raise additional 17 IRB for Jammu and Kashmir and LWE
affected areas.
About Indian Reserve Battalion
It included 5 battalions in J&K, 4 in Chhattisgarh, 3 each in
The Indian Reserve Battalion (IRB) is an
Jharkhand and Orissa and 2 in Maharashtra.
elite force meant to handle serious law
There is emphasis placed on the recruitment of local youths
and order problems in a state, mainly
for these forces and if required the age and educational
left-wing extremism and terrorism.
criteria will be relaxed. E.g. 60% of the recruitment in J&K has
It provides touch support to the local
to be done from the border districts.
police forces in dealing with such activities
The government has so far sanctioned 153 battalions to
in whatever shape they may take place in
various states under its scheme of Indian Reserve Battalions
different parts of the state.
introduced in 1971.
It is trained and equipped to deal in
specific circumstances and not designed
to supplant the normal functions of
police force.
The initial funding for raising the IRB is
done by using central funds. Their
management, however, rests with the
respective states.

SIGNIFICANCE OF THE DECISION

73

This will add to the anti-Maoist and anti-terrorist strength of


the state police.
The provision of recruitment of local people would be crucial
in many ways:
o It will reduce the trust deficit between Army & CAPFs and
local populace.
o Knowledge of local conditions is better for intelligence gathering and carrying out operations.
o Generating employment opportunities in these areas would help in removing poverty and also checking
the radicalization and diversion of the youth by bringing them into mainstream.
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7. ECOLOGY AND ENVIRONMENT


7.1. INTERNATIONAL SOLAR ALLIANCE (ISA)
Why in News

On his recent visit to India, French president along with Indian


Sunshine Countries
Prime Minister has laid the foundation stone for an interim
The sunshine countries comprise all
secretariat of the International Solar Alliance (ISA) in Gurgaon.
major countries which come either
Earlier, India and France had launched an International Solar
completely or partly between the tropic
of Cancer and the tropic of Capricorn. It
Alliance (ISA) at the CoP21 Climate Conference Paris in Dec, 2015.
comprises 107 countries.
The ISA Secretariat would be set up at National Institute of Solar
Energy, Gurgaon in India.
Indian government will provide land and $30 million to form a secretariat for the Alliance, and will support it
for five years.

Objectives

Promote solar technologies and investment in the solar sector to enhance income generation for the poor
and global environment.
Formulate projects and programme to promote solar applications.
Develop innovative Financial Mechanisms to reduce cost of capital.
Build a common Knowledge e-Portal.
Facilitate capacity building for promotion and absorption of solar technologies and R&D among member
countries.

Benefits to India

Launching of ISA has set up the stage for India's proactive and forward-looking leadership on climate change
and the transition to a less carbon-intensive growth trajectory.
This will help India in meeting its solar energy target which is to generate the 100GW of solar energy by
2022.
It will also help in bringing down the price of solar technology which will further help in accelerating the
development of the country.
It will also help India to meet its Intended Nationally Determined Contribution target.

Challenges Ahead

Funding: Although alliance talks about developing innovative financial mechanisms, it does not address
how the capital would be provided.
Technology Sharing: There is need to create a comprehensive framework to share the modern solar
technologies at low cost.

7.2. BHARAT STAGE VI NORMS BY 2020


Why in news?

74

In a move to curb vehicular pollution, Indian government has decided to move up to the toughest emission
standards of BS-VI from the current BS-IV by April 2020 skipping BS-V standard.

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By switching to BS-VI, India will join the league


of the US, Japan and the European Union,
which follow Euro Stage VI emission norms.
BS-VI is the Indian equivalent of Euro Stage VI.
Currently BS-IV norms are currently followed
across 63 Indian cities for petrol and diesel,
while the rest still use BS-III fuel.

Need

Considering the environmental impact, rising


pollution levels and health hazards due to
vehicular pollution, has led to this decision.
According to a study conducted by CSE, air
pollution claims at least 10,000-30,000 lives a
year in Delhi. It is one of the top 10 killers in the
world and the fifth leading cause of death in
India.

BS VI Norms

The BS-IV compliant fuels have Sulphur concentration of 50


parts per million (ppm).
This will come down to as low as 10 ppm in BS-VI compliant
fuels and auto engines. This means a lower level of harmful
emissions and reduced incidence of lung diseases.
The switch to BS-VI norms will also reduce concentration of
carbon monoxide, unburnt hydrocarbons, nitrous oxide and
particulate matter from emissions.
This jump will make a huge impact and significantly bring
down share of vehicular pollution in the overall air pollution
of the country.

Bharat Stage Norms


Bharat stage emission standards are
emission standards instituted by the
Government of India to regulate the
output of air pollutants from internal
combustion engine equipment, including
motor vehicles.
The standards and the timeline for
implementation are set by the Central
Pollution Control Board under the
Ministry of Environment & Forests and
climate change.
The standards, based on European
regulations were first introduced in
2000.

Challenges

It will make cars, sports utility vehicles (SUVs), trucks and buses more expensive.
Moving to BS-VI directly will require significant technological upgrades and auto companies may have to
invest heavily
Generally, it requires four years to graduate from one stage to another. And in this case, skipping one stage,
companies may need more time to implement this. Even, the Auto Fuel Policy had recommended
implementation of BS-VI norms by 2024.
A bloated population of vehicles using fossil fuels has affected travel speeds, worsening pollution levels.
Poor civic governance has left roads unpaved and public spaces filled with debris and construction dust,
constantly re-circulating particulate matter in the air.
And also, the monitoring of diesel passenger and commercial vehicles which are the biggest contributors to
total emissions, is not efficient and effective.

Way Forward

75

Government should also focus on raising the fuel standard and introducing policy initiatives that would
influence passenger behaviour and cut personal travel kilometers by 25 per cent.
Government must show the diligence in making policy changes in partnership with State governments to
clean up the air.

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7.3. DELHI'S ODD EVEN POLICY


What is Odd Even Policy?

The policy envisages reducing the number of vehicles on Delhi roads by about 50%, which is expected to
reduce the level of air pollution in the city.
Odd numbered cars to ply on odd dates, even numbered cars on even dates.
A fine of Rs 2000 will be imposed on people who violate the Odd-Even Formula.
Odd-even policy will not be in effect on Sunday, it will be in force on other days from 8am to 8pm.
There are few exemptions such as Women driving alone, VIPs, VVIPs etc.

Need of such policy

Levels of tiny particles known as PM 2.5 in the Indian capital often exceed those deemed safe by the United
Nations World Health Organization.
In the case of Delhi, the contribution of vehicles to air pollution is quite high. Certain studies estimate it to be
up to 80% of the total.
Base noise levels in the city have exceeded acceptable standards.
Increasing number of vehicular count adds to air pollution and global warming.
The growing vehicle population gives rise to unrestrained noise pollution and associated health effects and
can cause both short term as well as long term psychological and physiological disorders.
From an economic perspective, congestion on roads results in loss of man-hours as travel time gets longer.
Slow-moving traffic leads to higher fuel expenditure at the household level and larger imports of crude oil at
the macro level, which has implications for valuable foreign exchange.

Benefits

Heightened public awareness regarding the environmental impact of pollution on society.


Mass public participation- Citizens in Delhi has demonstrated an overwhelming level of compliance with this
experiment.
De-congestion of roads has reduced the travel time. It has also helped in reducing noise pollution.

Challenges

As per the Government of Delhi (2015), there are 88, 27,431 vehicles as of March 2015. Of these, 64.36% are
motorcycles and scooters, while 31.61% are cars and jeepstogether they make up 96%.
The share of buses is a meagre 0.22%, while taxies and auto-rickshaws comprise nearly 1% each. So a very
limited source of pollution was targeted under this scheme.
To create a deeper impact, policy should have targeted more vehicles under it.
Vehicle emissions contribute only between 20% to 40% of the PM 2.5 in Delhis air.
To broaden the scope of this policy, government should also try to consider the other sources of pollution
such as power plants, fuel standards, agricultural pollution etc. and try to minimize their impact on
environment.
China The policy of banning odd- and even-numbered vehicles on specific days has prompted households in
Beijing to go for a second car. Same experience was also felt in Mexico city.
Considering a very high per capita income in Delhi, Rs 2,40,849 in 201415, there is a possibility that most
people may go for the purchase of second car if this policy is implemented for longer duration.

Way Forward

76

Through several advertisements and awareness campaigns, the government should aim at educating people.
Campaign for use of public transport (Ab Bus Kareinlet us take a bus) and car-pooling are two prominent
examples in this regard.
Strengthen the public transport system so that its capacity will be increased.
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Increasing road tax and parking charges which will discourage people from going for private vehicles.
Use of high standard fuel such as Bharat Stage VI fuel as early as possible.

7.4. POLICY ON PROMOTION OF CITY COMPOST


Why in news?

Union cabinet has given its approval for a Policy on Promotion of City Compost

What is compost?

Compost is organic matter that has been decomposed and recycled as a fertilizer and soil amendment.
At the simplest level, the process of composting simply requires making a heap of wetted organic matter
known as green waste (leaves, food waste) and waiting for the materials to break down into humus after a
period of weeks or months

Salient Features of the Policy:

Market development assistance of Rs. 1500 per tonne of city compost for scaling up production and
consumption of the product. It would lower MRP of city compost for farmers.
Eco-Mark standard for City Compost.
Distribution :
o Co-marketing by Fertilizer companies.
o The companies will also adopt villages for promoting the use of compost.
Information Education and Communication network
o Concerned Ministry/Department will carry out IEC campaigns to educate farmers.
o The Agricultural Extension Machineries including KVKs of ICAR will also make special efforts in this
regard.
o Initially, marketing and promotion of city compost is proposed to be done through the existing fertilizer
companies. In due course, compost manufacturers and other marketing entities recognized by the
concerned State Government may also be included for the purpose with the approval of Department of
Fertilizers. The market development assistance shall be routed through the entity which is marketing it
Monitoring
o A joint mechanism will be set up by Department of Fertilizers, Ministry of Urban Development and
Department of Agriculture to monitor and facilitate availability of adequate quantity of City Compost at
terms mutually agreeable between compost manufacturers and Fertilizer Marketing companies.
o They will also be authorised to resolve any co-ordination related issue that may arise.

Advantages of City Compost:

77

Soil health improvement


o It contains useful soil microbes and humus that aerates soil, and improves water retention and
resistance to both drought and water logging, thereby reducing irrigation requirements.
o It can restore India's 21.7 million hectares of saline and alkaline soils.
o To counter the galloping depletion of micro-nutrients in soil since heavy chemical-fertiliser use began.
o Heavy-metal levels will come down when compost is used along with chemical fertilizers, since single
super-phosphate and rock phosphate, for example, contain twice as much lead and 9-15 times more
cadmium than the standards now specified for city composts.
Environmentally better suited.
Protects groundwater pollution
Effective mechanism of solid waste management- Aligned with Swachh Bharat Mission cleaner cities
Employment generation in the urban areas and enhance the livelihood of waste managers.

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7.5. STRANDED CARBON


Why in news?

A London-based energy think tank has warned that fossil fuel producers across the world are wasting up to
US $ 2.2 trillion after 2020 by investing in projects that could hinder worlds fight against climate change.
This is because much of to be discovered fossil fuel would remain unused because of the carbon budget.

What is stranded carbon?


It refers to fossil fuel energy resources that cannot be burnt if the world is to adhere to a given carbon
budget. Therefore some of proven reserves of fossil fuels will never be burnt and will remain stranded.
How much Stranded Carbon?

Within the 2C target; we only have about 1,100 Giga Tonnes (gt) of carbon dioxide (CO2) that can still be
emitted.
Current proven reserves of fossil fuels are about 812 billion tonnes of oil equivalent (oil, gas and coal).
Just burning all these proven reserves (not counting contingent reserves or those yet to be discovered)
would generate about 2,512 gt of CO2 equivalent emissions.
Thus no more than 40 per cent of the existing proven reserves of fossil fuels can ever be burnt.
Probably even less, as some of the carbon budget will be taken by non-fossil fuel applications like
agriculture.

Implications:

The Middle East would need to leave about 40% of its oil and 60% of its gas underground
The majority of the huge coal reserves in China, Russia and the United States would have to remain unused
Undeveloped resources of unconventional gas, such as shale gas, would be off limits in Africa and the Middle
East, and very little could be exploited in India and China
Unconventional oil, such as Canada's tar sands, would be unviable.

7.6. BHARAT INNOVATION FUND

Bharat Fund is a public-private-academia partnership set up by Indian Institute of Management (IIM)


Ahmedabads Centre for Innovation Incubation and Entrepreneurship (CIIE).
The Fund was launched by the Prime Minister in September 2015 during the Startup Connect event in
California.

Salient features:

The Fund will be managed and coordinated by CIIE at the IIM, Ahmedabad.
It will support innovation and innovative startups in areas of healthcare and life-sciences, sustainability, and
digital technologies
The Fund will use important tools such as labs, mentorship, funding, and networking to support
entrepreneurs who take on hard challenges of an ever-broadening Indian market.
The (DBT) will engage with the Bharat Fund for Startup India initiative, to help commercialize technologies
from its labs and facilities, while also mentoring startups in the healthcare, agri-tech, and other biotechrelated areas.
The DBT will also invest Rs. 50 crore over the next 3 years to support startups through this Fund.

Why this fund?

78

Innovation-led economic development in a modern knowledge economy requires equal and consistent
support from the public and private sectors.
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This Fund is an effort by one of Indias leading academic institutes to bring together public and private
resources, such as experts, finances and labs, to provide the fertile ground for innovation that will seed the
Indian multinationals of the next few decades.

7.7. IMD LAUNCHES A SYSTEM TO MONITOR AIR RISKS AND BLACK


CARBON IN ATMOSPHERE

The Indian Meteorological Department (IMD) has


launched a System of Aerosol Monitoring and
Research (SAMAR) which will help the country in
studying concentration of black carbon in
atmosphere due to air pollution and its impact on
climate.
It is a network of 16 Aethalometers, 12 Sky
radiometers and 12 Nephelometers.

What are Aerosols?

They are a subset of air pollution that contains


gases, fumes and dust in harmful proportion.
These particles can be both solid and liquid which also affects environmental visibility.
They are suspended particulates in the atmosphere and have implications for climate and health through
different mechanisms.
Several studies have suggested that aerosols may be mitigating global warming by increasing the planetary
albedo,
Although the sign and magnitude of aerosol effects on climate are still uncertain as outlined in the
Intergovernmental Panel on Climate Change (IPCC) reports.

What is Black Carbon?

Black carbon (BC) aerosol assumes importance due


to its high absorption characteristics, which in turn
depends on its production mechanism.
In addition to exerting its own radiative impact,
black carbon aerosol can substantially contaminate
other aerosol species, thereby altering the radiative
properties of the entire aerosol system and in fact
their ability to act as cloud condensation nuclei.
The sources of BC are fossil fuel through burning of
diesel and solid coal, indoor burning of biomass
fuels for cooking and heating and outdoor burning
of crop residues, savannas and forests.
Black carbon warms the atmosphere due to its
absorption and by reducing albedo when deposited
on snow and ice

7.8. BIODIVERSITY DATABASE FOR URBAN INDIA

79

A biodiversity database for urban India will be prepared for better species diversity management.
This will be dovetailed to the smart city initiative.
This project will be implemented by the Council of Scientific and Industrial Research (CSIR).
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It will be helpful in maintenance of sustainable environment and health.


It will also help the public and local bodies in enabling them to make the best choice for local plantation.

7.9. MINISTRY OF SHIPPING LAUNCHES PROJECT GREEN PORT

With an aim to make major ports in India greener and cleaner, government has launched Project Green
Ports. The project has two verticals --- Green Ports Initiative and Swachh Bharat Abhiyan.
The Green Port Initiative comprises 12 time-bound sub-initiatives.
o Some of the plans are preparation and monitoring plan,
o acquiring equipment required for monitoring environmental pollution,
o acquiring dust suppression system, setting up of sewage/waste water treatment plants/ garbage
disposal plant,
o setting up projects for energy generation from renewable energy sources,
o completion of shortfalls of Oil Spill Response (OSR) facilities (Tier-1), prohibition of disposal of almost all
kind of garbage at sea,
o Improving the quality of harbor wastes etc.
Under Swachh Bharat Abhiyaan, the Ministry has identified 20 activities with certain time-line to promote
cleanliness at the port premises.
o cleaning the wharf, repairing of sheds, cleaning and repairing of port roads,
o modernizing and cleanliness of all the toilet complexes in the operational area,
o Beautification and cleaning of parks, boards indicating cleanliness messages,
o Cleaning and repairing of all drainages and storm water systems and tree plantation.
In order to achieve these objectives, regular training will be provided to the staff in order to generate
awareness and inculcate a positive attitude towards keeping the environment clean and green.

7.10. INITIATIVES UNDER NAMAMI GANGE PROGRAMME


1. Ganga Gram Yojana Launched

Government recently launched Ganga Gram Yojana in Hapur District Of U.P.


1600 villages situated along the banks of river Ganga will be developed under this scheme.
First phase of the programme will cover 200 villages.
In these villages open drains falling into river Ganga will be diverted and alternative arrangements for
sewage treatment will be made.
The villages will have toilets in every house hold.
It is proposed to incur and expenditure of Rs. One crore on every village.
These villages will be developed under the Sichewal model. Sichewal is situated in Punjab, where
cooperation of the villagers has been solicited for the water management and waste disposal in a meticulous
way.

2. Approval of Hybrid Annuity Based Public Private Partnership (PPP) Model

In this model, a part of the capital investment (upto 40%) will be paid by government through construction
linked milestones and the balance through an annuity over the contract duration upto 20 years

Expected Benefits

80

This will help taking up more number of projects with the same allocation as made available under Namami
Gange programme with reduced financial liability in the initial years.
Spreading the stakes of private participant over the entire period of concession would ensure continued
operations over long term.
Linking of performance standards with the annuities will ensure desired objective of treated water of
appropriate standard.
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It would help gradual capacity building of the Urban Local Bodies by setting ground for recovery of user
charges on Polluter Pays Principle.
Development of the market for treated water will lead to reduced demand on riverine freshwater and will
result in enhanced flows in river Ganga.
These steps would also kick start the process of responsible use of water in general and go a long way in
mitigating the projected water shortage in the country.

3. Deployment of Ganga Task Force

The first company of Ganga Task force Battalion was deployed at Garhmukteshwar.
Three such companies will be deployed soon at Kanpur, Varanasi and Allahabad.
Jawans of the Ganga Task force will be deployed on the banks of the river Ganga to ensure that industry and
civilians do not pollute the river.

7.11. GREEN SIGNAL TO 'RAPTOR MOU'

The Government has approved signing of Memoranda of


THREATS FACED BY RAPTORS
Understanding (MOU) on the Conservation of Migratory
Habitat loss and degradation, illegal shooting,
Birds of Prey in Africa and Eurasia-also called the Raptor
poisoning, collisions with aerial structures and
MOU-with the Convention on Conservation of Migratory
electrocution by power lines.
Species (CMS).
It aims to promote internationally coordinated actions to conserve and reserve the decline of birds of prey.
They include species such as eagles, kites, vultures, hawks and owls.
Although legally non-binding, it will help India gain knowledge in effectively managing the habitats of these
raptors.
MoU extends its coverage to 76 species of birds of prey. Of these, 46 species, including vultures, falcons,
eagles, owls, hawks, kites, harriers, are found in India.

About Convention on CMS

Under the aegis of the United Nations Environment Programme (UNEP), CMS provides a global platform for
the conservation and sustainable use of migratory animals and their habitats.
CMS brings together the States through which migratory animals pass, the Range States, and lays the legal
foundation for internationally coordinated conservation measures throughout a migratory range.
Appendix I - Migratory species threatened with extinction.
Appendix II -Migratory species that need or would significantly benefit from international co-operation.

7.12. CONSULTATION ON BIODIVERSITY FINANCE INITIATIVE BEGINS

The Environment Ministry started a two-day National Stakeholder Consultation Meeting on Biodiversity
Finance Initiative to conserve Indias biodiversity.
This National Stakeholder meeting has been organized to understand the BIOFIN project and to seek
professional inputs from experts of various fields in strengthening the biodiversity conservation efforts in the
country.
The idea behind implementing BIOFIN is to first assess the gap between the available funding and the
required funding for biodiversity conservation and then to plan for resource mobilization.

What is Biodiversity Finance Initiative (BIOFIN)?

81

Biodiversity Finance Initiative BIOFIN, is a new global partnership seeking to address the biodiversity
finance challenge in a comprehensive manner building a sound business case for increased investment in
the management of ecosystems and biodiversity.
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BIOFIN is managed by the UNDP Ecosystems and Biodiversity Programme, in partnership with the European
Union and the Governments of Germany and Switzerland.
The Global Environment Facility is a further partner financing parallel in-country projects in support of the
revision of National Biodiversity Strategies and Action Plans (NBSAPs).

7.13. SNOWFLAKE CORAL - A SERIOUS THREAT TO BIODIVERSITY

Snowflake coral is posing a major threat to the coral reef colonies in the Gulf of Mannar, Gulf of Kutch and
the Andaman and Nicobar Islands.
It can destabilize the marine ecosystem because it may crowd out other species like corals, sponges, algae,
ascidians that contribute to the rich marine biodiversity of the region.

What is Snowflake Coral?

The snowflake coral, (Carijoa riisei) is a species of soft coral in the family Clavulariidae.
It is native to the tropical western Atlantic Ocean and has spread to other areas as an invasive species.
It was first reported as an invasive species from Hawaii in 1972. Since then, it has spread to Australia,
Thailand, Indonesia and the Philippines.
It is considered invasive because of its capacity to dominate space and crowd out other marine organisms.
It is known to inhabit reefs and underwater structures such as shipwrecks and piers, attaching itself to metal,
concrete and even plastic.

7.14. OCEANS TO HAVE MORE PLASTIC THAN FISH BY 2050

Report Published by the World Economic


FACTS
Forum, says the world's oceans may have
more plastic debris than fish by the year
Use of plastic bags has increased by 20 times in past 50 years
2050.
Most plastic packaging is used only once then discarded
The study found that whopping 32 percent
One-third of all plastic packaging escapes collection systems
of all plastic packaging escapes collection
40 percent of plastics end up in landfills
systems and finds its way into natural
Only five percent of plastics are efficiently recycled
ecosystems, including the oceans.
Plastics production will increase to 1.124 billion tonnes by 2050
This releases toxic chemicals that may be
digested by fish and end up in the human food chain.
This has potential to poison animals, which can then adversely affect human food supplies

Way forward

The most effective way to stop plastic pollution in our oceans is to make sure it never reaches the water in
the first place.
We all need to do our fair share to stop plastic pollution: individuals need to recycle and never litter, but
producers of single use plastic packaging need to do more.
We need producers to design packaging so that it is fully recyclable, and so there is less waste.
We also need producers to help cover the costs of keeping their products out of the ocean.

7.15. ORGANIC FARMING


Citing the successful example of Sikkim, Prime Minister called for expansion of organic farming across the
country as part of efforts to transform the agriculture sector, entailing better remuneration for the farmers.

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Organic Farming

Organic agriculture is a holistic production management system which promotes and enhances agroecosystem health, including biodiversity, biological cycles, and soil biological activity.
Thus Organic farming uses natural fertilizers and pesticides and strictly limits (not eliminates completely) the
use of synthetic and non-natural processes.

Principles of Organic Agriculture

Principle of Health: Organic agriculture should sustain and enhance the health of soil, plant, animal and
human as one and indivisible.
Ecological Principle: Organic agriculture should be based on and work with living ecological systems and
cycles, emulate them and help sustain them.
Principle of Fairness: Organic agriculture should be built upon relationships that ensure fairness with regard
to the common environment and life opportunities.
Principle of Care: Organic agriculture should be managed in a precautionary and responsible manner to
protect the health and well-being of current and future generations and the environment.

Advantages of Organic Farming

Organic farming is definitely healthier and safe than non-organic farming.


Organic farms have higher levels of soil biological activity and biodiversity;
Farmers can reduce their production costs because they do not need to buy expensive chemicals and
fertilizers.
Organic agriculture causes less pesticide contamination in food, people and the environment;
In the long term, organic farms save energy and protect the environment.
Pollution of ground water is stopped.

Disadvantages

Lack of convenience.
Organic food is more expensive.
Food safety concerns.

Scope

About 1-2% of the worlds food is produced with organic methods. The market however is growing very
quickly - by about 20% a year. In Europe, Austria (11%), Italy (9%) and the Czech Republic (7%) are the
countries in which organic food production as it its highest.

7.16. EL NINO AND WARM WINTER


Why in news?

This winter has been lesser cold and temperatures are 4-5 degrees Celsius above the normal for this time.
Western parts of Rajasthan which used to experience extreme coldness, the average temperature is 5 to 8
degrees Celsius above normal.

Reasons

83

Global factors: Persisting El Nio phenomenon


o By the time neutral conditions are expected to be established in the Pacific Ocean later this year, the El
Nio would have persisted for 15 months, spanning two seasons.
o Winters that follow an El Nio event are slightly warmer than usual.

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Scientists say the Pacific warming spreads to the Indian Ocean with a lag of about 2-3 months, leading to
a warming over the subcontinent.
Regional Factors: Usually westerlies used to bring rain system in most of Northern and Eastern India, pulling
down temperatures. But this year, the Westerlies have been kept north of the Indian landmass by two
different wind systems.
o An anticyclonic wind system that is usually located south of the Indian peninsula has been pushed
northward, and is located where the westerlies are usually found at this time of the year. This anticyclonic system is warmer and drier.
o Jet streams which used to locate in higher atmosphere, and generally operate in the mid-latitudes, north
of the Indian landmass. But this year, they are positioned much to the south, aligned to the foot of the
Himalayas and the Gangetic plains.

7.17. SIMULTANEOUS TEMPERATURE


GLACIER ICE SHEETS AT NORTH POLE

RISE

AND

SHRINKAGE

OF

Temperatures at the North Pole rose above freezing point in


2015 HOTTEST YEAR ON RECORD
December, 20 degrees Celsius above the mid-winter norm
Data released by NASA and NOAA (National
and reflecting latest abnormality in a season of extreme
Oceanic Atmospheric Administration) show
weather events.
that in 2015, the global mean surface
This rise in Temperatures at the North Pole is estimated to
temperature was the warmest on record
be due to very violent and extremely powerful depression
and reach significant milestone of 1 Celsius
caused by Storm Frank.
above the pre-industrial era.
This deep depression has pushed hot air as far as the North
In the Northern hemisphere (spring of
Pole, where temperatures are at least 20 degrees above
2015) the three-month global average
normal, at around freezing point, between zero and two
concentration of CO2 crossed the 400 parts
degrees.
per million barrier for the first time.
After tormenting the North Atlantic, the depression is
The year 2015 stands out because of the
expected to head towards Russia's Siberia, where the
unusually strong El Nio.
inhabitants can expect a heat wave of sorts.
El Nio has also been cited as a factor in the genesis of these devastating storms.
However, the sudden rise in winter temperatures in the North Pole could interfere with the usual process of
the growth of winter ice in the Arctic.
Sea ice during the winter maximum is becoming younger and thinner.

7.18. INDIAN CLIMATE MODEL TO AID FUTURE IPCC REPORTS

India will have its own climate change models to project the impact of global warming over the decades and
these will form part of the forthcoming Sixth Intergovernmental Panel on Climate Change Reports that is
expected to be available in 2020.
This will be helpful in getting clear picture of Indian environmental conditions.
These climate change models have been framed considering Indian climatic conditions.
The climate models, being developed by the Earth Sciences Ministry, will be prepared by the Pune-based
Centre for Climate Change Research.

7.19. ASSESSMENT OF CITIES UNDER SWACHH BHARAT MISSION (SBM)

84

To assess the Swachh Bharat Mission, the Ministry of Urban Development has decided to study and rank 75
cities under the mission Swachh Survekshan.
The task of executing the mission has been entrusted with the Quality Council of India.
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It will cover all state capitals and 53 other cities.


There will be three streams of data collection
o Citizen feedback,
o Municipality self-evaluation
o Independent assessment
The results are to be announced on the MyGov website.
It will be helpful in measuring the impact of the mission year-onyear basis.
Based on the findings, rules can be modified and new steps can be
taken to correct the measures and effective and efficient
implementation cab be ensured.

The Himalayan Forest Thrush - A New Species of Bird

Parameters for evaluation


Strategies to stop open defecation
and integrate the city's solid waste
management systems.
Efficacy
of
communication
strategies
on
information,
education and behaviour change.
Effectiveness of systems for
sweeping, door-to-door collections
and transportation of waste.
Efficiency in processing and
disposal of waste.
How good is deployment of public
and community toilets?
Progress made in construction of
household individual toilets.

Scientists have described a new species of bird in northern India


and China, called the Himalayan forest thrush.
The bird has been named Himalayan Forest Thrush (Zoothera
salimalii). The scientific name honors the great Indian ornithologist
Dr Slim Ali.
The species differs in its song from that of the alpine thrush.
The Himalayan Forest Thrush is a variant of the Plain Backed Thrush and the European Alpine Thrush.
The Himalayan forest thrush has a more musical call while that of the Alpine thrush is raspy and grating.

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VISIONIAS
www.visionias.in

CURRENT AFFAIRS
FEBRUARY 2016

Copyright by Vision IAS


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form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
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TABLE OF CONTENTS
1. POLITY AND GOVERNANCE __________________________________________________________ 6
1.1. Presidents Rule _______________________________________________________________________ 6
1.2. Shyama Prasad Mukherji Rurban Mission __________________________________________________ 7
1.3. 10 Years of MGNREGA An Assessment____________________________________________________ 7
1.4. Swachh Survekshan ____________________________________________________________________ 9
1.5. Financial Management of Municipalities ___________________________________________________ 9
1.6. Hurdles in Indias Digital Transformation: WDR 2016 ________________________________________ 10
1.7. Judicial Standards and accountability _____________________________________________________ 11
1.8. Public Interest Litigation (PIL) ___________________________________________________________ 12
1.9. Justice Delivery: Issues and Reforms ______________________________________________________ 13
1.10. Appointment of NHRC Chairperson______________________________________________________ 14
1.11. FBI vS. Apple ________________________________________________________________________ 15

2. INTERNATIONAL/INDIA AND WORLD _________________________________________________ 16


2.1. Trans-Pacific Partnership (TPP) __________________________________________________________ 16
2.2. India and Brunei ______________________________________________________________________ 17
2.3. India and Thailand ____________________________________________________________________ 17
2.4. INdia And Sri lanka ____________________________________________________________________ 18
2.5. India and UAE ________________________________________________________________________ 19
2.6. India and Nepal ______________________________________________________________________ 20
2.7. India and Pakistan ____________________________________________________________________ 21
2.8. F-16 Sale to Pakistan __________________________________________________________________ 22
2.9. India - USA Solar Dispute _______________________________________________________________ 23
2.10. IMF Reform_________________________________________________________________________ 24
2.11. Supplementary Compensation for Nuclear Damage (CSC)____________________________________ 25

3. ECONOMY _______________________________________________________________________ 27
3.1. Tapan Ray Panel Recommendations ______________________________________________________ 27
3.2. National Capital Goods Policy ___________________________________________________________ 27
3.3. Independent Fiscal Council _____________________________________________________________ 28
3.4.Trade Facilitation Agreement (TFA) in Goods _______________________________________________ 28
3.5. Hydrocarbon Vision 2030 for North-East __________________________________________________ 29
3.6. Draft Bulk Drug Policy _________________________________________________________________ 30
3.7. Market Economy Status ________________________________________________________________ 31
3.8. Non Tax Revenue e-Portal ______________________________________________________________ 32
3.9. ASSETS Reconstruction Company ________________________________________________________ 32
3.10. Make in India: Renewable Energy _______________________________________________________ 33
3.11. Unified Payment Interface (UPI) Project __________________________________________________ 34
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3.12. Benefits of Commodity Futures Market to Farmers _________________________________________ 35


3.13. Merger of NSEL with FTIL ______________________________________________________________ 35
3.14. Electronic Development Fund (EDF) _____________________________________________________ 36
3.15. International Intellectual Property Index And India _________________________________________ 37
3.16. IPR Policy __________________________________________________________________________ 37
3.17. Compulsory Licensing_________________________________________________________________ 38
3.18. Open Resource Licensing ______________________________________________________________ 38

4. SOCIAL ISSUES____________________________________________________________________ 40
4.1. National Deworming Initiative __________________________________________________________ 40
4.2. National Framework for Elimination of Malaria _____________________________________________ 40
4.3. Economic Empowerment of Women _____________________________________________________ 41
4.4. Racial Intolerance_____________________________________________________________________ 41
4.5. Sex Determination of Foetus ____________________________________________________________ 42
4.6. Surrogacy ___________________________________________________________________________ 43
4.7. Devdasi System ______________________________________________________________________ 44
4.8. Daughter as Inheritor __________________________________________________________________ 45
4.9. Shani-Shignapur Temple Entry __________________________________________________________ 45
4.10. Jat Protests _________________________________________________________________________ 46
4.11. Higher Education System in India _______________________________________________________ 46
4.12. Leading Causes of Death in India ________________________________________________________ 48
4.13. Nation and Nationalism _______________________________________________________________ 48
4.14. Traditional Medicine _________________________________________________________________ 49

5. SCIENCE AND TECHNOLOGY _________________________________________________________ 50


5.1. Gravitational WAves __________________________________________________________________ 50
5.2. Cubsats _____________________________________________________________________________ 51
5.3. Planet X_____________________________________________________________________________ 52
5.5. Astrobiology Mission __________________________________________________________________ 52
5.4. Smart Grid __________________________________________________________________________ 53
5.5. Gene Editing (CRISPR/Cas9) _____________________________________________________________ 53
5.6. Raman Effect: Applications _____________________________________________________________ 54
5.7. Aditya Mission : UPDATES ______________________________________________________________ 55
5.8. Global Biotechnology Summit- Destination India __________________________________________ 55
5.9. Hypnoxia and Frostbites _______________________________________________________________ 56

6. internal security/LAW AND ORDER ___________________________________________________ 57


6.1. Demilitarisation of Siachen _____________________________________________________________ 57
6.2. Indias Deradicalisation Strategy to Counter ISIS Threat ______________________________________ 58
6.3. International Fleet Review (IFR) 2016 _____________________________________________________ 59
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6.4. Counter-Terrorism Conference 2016 ______________________________________________________ 60


6.5. Action Plan for Preventing Violent Extremism ______________________________________________ 61

7. ECOLOGY AND ENVIRONMENT ______________________________________________________ 62


7.1. GM Mustard _________________________________________________________________________ 62
7.2. Wetland Management in India __________________________________________________________ 63
7.3. Nasas Coral campaign _________________________________________________________________ 64
7.4. Jal Manthan-2 ________________________________________________________________________ 65
7.5. Urban Solid Waste Management ________________________________________________________ 65
7.6. Air Pollution in Indian Cities ____________________________________________________________ 67
7.7. Compensatory Afforestation Fund (CAF) Bill 2015 ___________________________________________ 67
7.8. Jal Kranti Abhiyaan: ___________________________________________________________________ 68
7.9. Kudremukh National Park ______________________________________________________________ 68

8. Culture _________________________________________________________________________ 70
8.1. Nada Kusti __________________________________________________________________________ 70
8.2. Ganga Sanskriti yatra __________________________________________________________________ 70
8.3. Rukmani Devi Arundale ________________________________________________________________ 70
8.4. Muziris Heritage Project _______________________________________________________________ 71

9. ALSO IN NEWS ___________________________________________________________________ 72


9.1. TRAI Ruling in favour of Net Neutrality ____________________________________________________ 72
9.2. electric propulsion system ______________________________________________________________ 72
9.3. Genetically modified mosquitoes ________________________________________________________ 72
9.4. VPM 1002 ___________________________________________________________________________ 73
9.5. Eyeriss ______________________________________________________________________________ 73
9.6. Seismic Microzonation report ___________________________________________________________ 73
9.7. 47th Conference of Governors __________________________________________________________ 74
9.8. Supreme Court: Use of Curfew Power_____________________________________________________ 74
9.9. Regional Benches of SC ________________________________________________________________ 74
9.10. Section 295A OF IPC __________________________________________________________________ 75
9.11. Amendment: Delimination Act & RPA, 1950 ______________________________________________ 75
9.12. Manual for Juvenile Offenders _________________________________________________________ 76
9.13 Beti Bachao Beti Padhao scheme: Updates ________________________________________________ 76
9.14 Privilege Motion _____________________________________________________________________ 77
9.15. Implementation of OROP______________________________________________________________ 77
9.16. Uniform policy to Compensate Rape Victims ______________________________________________ 77
9.17. NORTHEASTS FIRST SMART VILLAGE _______________________________________________ 78
9.18. E-Tourist Visa _______________________________________________________________________ 78
9.19. Blue Economy _______________________________________________________________________ 78
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9.20. RBI Relaxed FDI Norms to Boost Start-UPS ________________________________________________ 79


9.21. Mezzanine Investment ________________________________________________________________ 79
9.22. Withdrawal of Custom Duty Exemption on 76 Life-SAving Drugs ______________________________ 79
9.23. Build-Operate-Trasnfer Annuity Model - Railways __________________________________________ 80
9.24. PDS reforms ________________________________________________________________________ 80
9.25. Tax Policy Council and Tax Policy REsearch Unit ___________________________________________ 81
9.26. Uniform Services: Women _____________________________________________________________ 81
9.27. Indias First Gender Park ______________________________________________________________ 82
9.28. ban on Child Pornography _____________________________________________________________ 82
9.29. Revamp of Rehabilitation Scheme ______________________________________________________ 83
9.30. Sunrise Project ______________________________________________________________________ 83
9.31. Integration of Homoeopathy/Yoga with NPCDCS __________________________________________ 83
9.32. Report on Rohingyas Community _______________________________________________________ 83
9.33. Wilful Defaulters ____________________________________________________________________ 84
9.34. Indian basmati rice ___________________________________________________________________ 84
9.35. Bharat Net Project ___________________________________________________________________ 85
9.36. The Aware Project ___________________________________________________________________ 85
9.37. Waste Water Treatment in Urban Areas__________________________________________________ 86
9.38. Aviation Security Force _______________________________________________________________ 87

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1. POLITY AND GOVERNANCE


1.1. PRESIDENTS RULE
Why in news

Recent imposition of Presidents rule in Arunachal


Pradesh has brought the focus back on Article 356
of the Constitution (referred as Presidents Rule).
This Article has been used and misused for
decades by successive governments irrespective of
their political ideology.

Presidents rule

Presidents rule can be imposed in a state if a


situation has arisen in which the government of
the state cannot be carried on in accordance with
the provisions of the Constitution.
Generally, the governor sends a report in this
regard to the Centre which forms the basis for
invoking Article 356.
Once Presidents rule is imposed, the assembly ceases to
function and the state comes under the Central
governments direct control. The assembly is generally
kept in suspended animation.

Important Judgements
SR Bommai case 1994

Courts cant question the Union


Cabinets advice to the President but they
can question the material behind the
satisfaction of the President regarding
breakdown of constitutional machinery.

Use of Article 356 is justified only when


there was a breakdown of constitutional
machinery and not that of administrative
machinery.

Governors Role (Constitutional Provision):


If the chief minister has lost the majority support in the assembly,
Governor has three options

Dismiss the government under Article 164 (1) of the


constitution.
Send a report to the president invoking Article 356,
Call the session of the assembly under Article 174(1)

Since Article 174 (1) is silent on whether the Governor should


consult or not the State Cabinet before advancing dates of the
Assembly session. Hence, Supreme Court bench has few
questions (as mentioned in pic) to be decided.

Buta Singh, Bihar assembly dissolution


case 2006

Declared the dissolution of the Bihar


assembly as null and void.

Governors report could not be taken at


face value and must be verified by the
council of ministers before being used as
the basis for imposing Presidents rule.

Supreme Courts View:

Governor can't ask the house to assemble on his whims and


fancies.
Questioned the validity of order of the governor. In which the
Governor asked the speaker not to act under schedule 10 of the
constitution (which provides for disqualification of lawmakers on
grounds of defection).

Current Status:

The Constitutional bench has transferred the case regarding


disqualification of the 14 legislators from the single judge
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currently hearing the matter to the division bench of the high court.
Supreme Court also made it clear that any further action taken will be subject to the outcome of the
matter pending before it and lifted the stay for government formation.
Dissident Congress leader Kalikho Pul was sworn in as Chief Minister of Arunachal Pradesh shortly after
the President's rule was lifted from the state.

1.2. SHYAMA PRASAD MUKHERJI RURBAN MISSION


Why in news?

Prime Minister launched the National Rurban Mission from Kurubhat, in Rajnandgaon district of
Chhattisgarh.
The Rurban Mission would replace the previous governments Provision of Urban Amenities in Rural
Areas (PURA) initiative.

Objectives:

These clusters would be developed by provisioning of economic activities, developing skills & local
entrepreneurship and providing infrastructure amenities.
The scheme through development of Rurban growth clusters aimed at catalyzing overall regional
growth, which would benefit the rural as well as urban areas of the country.
By achieving twin objectives of strengthening rural areas and de burdening the urban areas will lead to
balanced regional development and growth of the country.

Features:

300 clusters would be developed with an investment of Rs 5,100 crore in three years. This year, 100
clusters would be taken up under the project.
Under this scheme village clusters will have 14 mandatory components like Digital Literacy, Sanitation,
Provision of piped water supply, Solid and liquid waste management, etc. Focus will be on creating
community assets and improving basic infrastructure such as roads, shelter, power and drinking water
in rural belts.
The clusters will be geographically contiguous Gram Panchayats with a population of 25,000 to 50,000 in
plain and coastal areas and a population of 5,000 to 15,000 in desert, hilly or tribal areas.
The funding for Rurban Clusters will be through various schemes of the government converged into the
cluster.
The mission will provide an additional funding support of up to 30 per cent of the project cost per
cluster as critical gap funding as central share to enable development of such rurban clusters.
The Mission envisages institutional arrangements both at the State and Center to ensure smooth
implementation of the Mission.
The Mission also has an Innovation budget towards facilitating research, development and capacity
building.

1.3. 10 YEARS OF MGNREGA AN ASSESSMENT


Brief Summary:

The MGNREGA provides a legal guarantee for one hundred days of employment in every financial year
to adult members of any rural household willing to do public work-related unskilled manual work at the
statutory minimum wage.

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The work covered has been divided into 10 broad categories like Watershed, Irrigation and Flood
management works, Agricultural and Livestock related works, Fisheries and works in coastal areas and
the Rural Drinking water and Sanitation related works.
The World Development Report 2014 has described the Mahatma Gandhi National Rural Employment
Guarantee Act as a "stellar example of rural development".

Benefits of the programme:

In the initial years, MNREGA was a true game-changer, rural wages started climbing and reports also
pointed towards a decline in migration to urban centres.
A NCAER study of 2015 showed that the Act helped in lowering poverty by almost 32 percent between
2004-05 to 2011-12.
Since the launch of the scheme it has helped in reducing poverty level among scheduled cast and
scheduled tribes 38 per cent and 28 per cent respectively.
Till now, it has generated 19.86 billion person-days of employment benefitting 276 million workers,
with more than half the jobs going to women workers and almost a third to members of scheduled
castes and scheduled tribes.
MGNREGA has played a much larger role in revitalizing the labour market in rural areas. It has led to the
creation of a class of workers who are using the MGNREGA as a safety net. Also these workers are able
to use it as a bargaining tool for extraction of higher wages.
57% of all workers are women, more than the statutory requirement of 33% and the highest in three
years.
It has acted as the single most important instrument for empowering gram panchayats. The act gave
gram sabhas the mandate to plan their own works and untied funds to execute these works.
Research suggests that water-related assets created under MGNREGA have increased quantity of water
available in a year. This led to changes in crop patterns and increased area under cultivation according to
some studies.

Challenges:

Based on CAG report, it showed that from 2009-10 to 2011-12, only 20 per cent of total funds allocated
under the scheme has been released for Bihar, Maharashtra and Uttar Pradesh where almost 46 per
cent of Indias rural poor reside.
CAG also found rampant corruption and swindling of public funds.
CAG said that around Rs 2,252 crore of inadmissible work was undertaken under the MGNREGA
including construction of earthen roads, bathing Ghats, raised platforms for cattle etc.
There is not enough skill development is happening for the people working under this scheme.
Asset creation under this scheme is not productive as it should be.
There is large-scale delay in payments of wages.

Way Forward:

In order to create the productive assets, the scheme should be converged with related programmes in
the department of agriculture, irrigation, animal husbandry and road transport.
To fight corruption, the use of IT and community-based accountability mechanisms like social audits
should be encouraged.
The act should be linked with the Socio-Economic Caste Census to ensure better targeting.
There should be focus to develop a cadre of identified trainers/experts which will be useful in effective
implementation of the scheme.
Skilling of the MGNREGA workers in conjunction with the Deen Dayal Upadhyaya Grameen Kaushalya
Yojana (DDU-GKY) and NRLM should be encouraged on a larger scale so that they will be able to acquire
vertical mobility in the job market, and would no longer depend on unskilled manual work.

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1.4. SWACHH SURVEKSHAN


Why in News?

To assess the Swachh Bharat Mission, the Ministry


of Urban Development has decided to study and
rank 75 cities under the mission Swachh
Survekshan.
The task of executing the mission has been
entrusted with the Quality Council of India.
It will cover all state capitals and 53 other cities.

Parameters for evaluation:


Work will be evaluated under six measurable aspects of
sanitation and hygiene.

Strategy for Open Defecation Free town (ODF) and Integrated Solid Waste Management (SWM).
Information, Education and Behaviour Change Communication (IEBC) activity.
Sweeping, door to door collection and transportation (of solid waste).
Processing and disposal of solid waste.
Provision of public & community toilet seats.
Construction of household individual toilets.

Calculation of Ranking:

Out of the total marks of 2,000 for assessing the performance of efforts of 75 cities
o 60 per cent were assigned for solid waste management related parameters.
o 30 per cent for construction of toilets.
o 5 per cent each for city level sanitation strategy and behaviour change communication.
Based on above Mysuru has emerged as the countrys cleanest city followed by Chandigarh and Tiruchi.
Of the cities surveyed, 32 have improved ranks since the last survey including 17 from the North India.

Quality Council of India


Quality Council of India (QCI) was set up in 1997 by Government of India jointly with Indian Industry as
an autonomous body.
The objective was to establish and operate the National Accreditation Structure for conformity
assessment bodies and providing accreditation in the field of education, health and quality promotion.
It also promotes the adoption of quality standards relating to Quality Management Systems (ISO 14001
Series), Food Safety Management Systems (ISO 22000 Series) and Product Certification and Inspection.
It has been assigned the task of monitoring and administering the National Quality Campaign a plan
scheme of the department, and also to oversee function of the National Information and Enquiry
Services.

1.5. FINANCIAL MANAGEMENT OF MUNICIPALITIES


Why in News?

Recently, the Municipal Corporation of Delhi (MCD) ran out of funds to pay salaries to its staffs.
As a reaction, sanitation workers went on strike which created conditions of uncleanliness on Delhi
roads.

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Need

State governments have consistently neglected institutional reforms in cities and municipalities.
The 4,041 cities in India have a population of over 400 million but the revenues of their municipalities
are inadequate.
Hence, there is an urgent need to put in place a roadmap for financial self-sufficiency and financial
accountability in municipalities.

Issues Associated with Municipalities:

Lack of credible data at city level on jobs, investments or tax collections.


Municipalities have access to very few revenue generating sources.
In some cases where municipalities have access to funds, they have limited or no control over the rates,
for example: property taxes.
There is an acute shortage of skilled staff in the finance and revenue departments of municipalities.

Suggestions

States need to devolve a reasonable percentage of stamp duties and registration charges on properties
back to the cities.
Entertainment tax and profession tax need to be given to municipalities.
Union government should provide tax exemptions to encourage more investment in municipal bonds.
Union, state governments and municipalities should work together to make an inventory of land, and
draw up a strategy for land value capture that can benefit the municipal exchequer.
To protect the financial sustainability of municipalities, a state legislation on fiscal responsibility and
budget management in municipalities should be enacted.
To improve the efficient and effective management of accounts, audit of annual accounts should be
performed by chartered accountants.
To improve tax collections and financial management, recruit more staff.

1.6. HURDLES IN INDIAS DIGITAL TRANSFORMATION: WDR 2016


Why in news

World Banks recently released World Development Report (WDR) Digital Dividends.
The report highlighted that despite India being the largest exporter of IT services and skilled manpower
among the developing countries, it still considerably falls behind China in digitally transforming its
economy.

Problems with Indias Digital Economy:

10

India have a both higher digital access gap and digital capability gap. The capability gap, according to
the WDR, arises from overall business climate and quality of human capital.
The slow pace of improvement of the quality of basic infrastructure expressways, logistics, storage,
postal delivery system and reliable supply of electricity.
The excessively cautious approach of Indian regulators towards disruptive technological innovations
such as mobile money or ride-sharing services has made it difficult for digital start-ups to enter new
markets and achieve scale.
Low level of skills and education: Around 25 per cent of Indias adult population cannot read and write
compared to fewer than 5 per cent in China.
Low quality of education: The latest Annual Status of Education Report (ASER) test scores in rural India
show that 10 per cent of children aged 16 and below cannot identify single-digit numbers consistently.

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Way Forward:

Increased focus should be given to successful and accelerated development of programmes like Digital
India, Make in India, Start-up India, and innovative applications of Aadhaar such as JAM (Jan Dhan
Yojana-Aadhaar-Mobile trinity) and Digital Lockers.
Making the Internet accessible, open and safe for all Indians is an urgent priority. Low cost of mobile
phone access along with a supportive policy environment involving smart spectrum management, PPP,
and intelligent regulations of Internet markets is needed.
An important lesson from the WDR is that even the most sophisticated technologies are no substitute
for tackling long-standing shortcomings in other areas most importantly basic health, education and a
regulatory ethos that encourages competition and enterprise.
Thus, there is a need to make long overdue progress on the analogue complements of digital
investments.

(For more on WDR 2016 please refer to Vision January Current Affairs)
UPSC 2002
Q. World Development Report is an annual publication of:
(a) United Nations Development Programme
(b) International Bank of Reconstruction and Development
(c) World Trade Organization
(d) International Monetary fund

1.7. JUDICIAL STANDARDS AND ACCOUNTABILITY


Why in news

Recently the SC collegium had recommended transfer of Justice Karnan of Madras High Court to the
Calcutta HC. However, he took up his own transfer case
Issue
and stayed the recommendation of the SC.

Removal of Judges as per Constitution of India:

Under A.124(4) of the Constitution a Judge of SC can be


removed only by the President on ground of proved
misbehaviour or incapacity only after a motion to this
effect is passed by both the Houses of Parliament by
special majority.
Constitution requires that misbehaviour or incapacity shall
be proved by an impartial Tribunal whose composition is
decided under Judges Enquiry Act 1968.
Similarly, Article 217B provides for removal of HC Judge.
The Act has been invoked three times in the past but no
judge could be successfully impeached till date.

Issue with the Impeachment Process:

11

Only Parliament can take cognizance of a case of a tainted


judge. No space is given to a common man.

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Justice CS Karnan had earlier laid allegations


of caste biases against his fellow judges and
also in the process of appointment of
judges.
A complaint against him was filed by 21
judges of Madras High Court.
He was earlier reprimanded by the SC for
his conduct 2 years ago. Yet, he was allowed
to continue with his ways, each subsequent
episode marking a new low.
Such behavior has exposed the helplessness
of the judicial system in dealing with its own
over-the-top functioning.
As Impeachment process of judges is very
difficult, the only option available is
transfer of the judge. But rather than
solving the problem it just shifts it to
another High Court.

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The law does not define the term misbehavior and hence ultimately fails to recognize the wide range of
misbehavior.
The process of impeachment is very long and involves political considerations.
The Judge under investigation is not prohibited from discharging his duties in court of law.

Way Forward

The Judicial Standards and Accountability Bill, 2012 could be revived. Earlier it could not be passed
because of difference of opinion on various issues.
The Bill sought to establish a set of legally enforceable standards to uphold the dignity of superior
judiciary along with a new architecture to process the public complaints leveled against the judges.

Q. How can a judge of Supreme Court be removed? (20 words) (UPSC 2005 Mains)
Q. Consider the following statements: (UPSC 2007 Prelims)
1. The mode of removal of a Judge of a High Court in India is same as that removal of a Judge of the Supreme
Court.
2. After retirement from the office, a permanent Judge of a High Court cannot plead or act in any court or before
any authority in India.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

1.8. PUBLIC INTEREST LITIGATION (PIL)


Why in News?

Recently, Supreme Court (SC) voiced its concerns on the NGO becoming a proxy litigant and a front for
settling corporate rivalry or personal vendetta.
The concern were expressed while hearing public interest litigation (PIL) challenging the allocation of 4G
spectrum to Reliance Jio.

Present Status:

Spectrum of issues raised in PIL have expanded tremendously such as from the protection of
environment, right to education, relocation of industries, good governance, general accountability of the
Government etc.
In recent years, anyone could file a PIL for almost anything. E.g. calling back the Indian cricket team from
the Australia tour.
This is contradictory to the main objective of the PIL, which is meant to provide the remedial
jurisprudence for those who cant approach the court on account of poverty or some other disability.

Positive Contributions of PIL:

12

PIL has become a vehicle to bring social revolution through constitutional means.
It has bought courts closer to the disadvantaged sections of society such as prisoners, destitute, child or
bonded labourers, women, and scheduled castes/tribes.
It has also helped in expanding the jurisprudence of fundamental and human rights in India.

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PIL also become an instrument to promote rule of law, demand fairness and transparency, fight
corruption in administration, and enhance the overall accountability of the government agencies.
Through PIL, judiciary also initiated legislative reforms and filled in legislative gaps in important areas.
For example Vishaka guidelines on sexual harassment at workplace.
PIL has helped the Indian judiciary to gain public confidence and establish legitimacy in the society.

Challenges

An unanticipated increase in the workload of the superior courts.


Inefficient use of limited judicial resources.
Lack of judicial infrastructure to determine factual matters.
Gap between the promise and reality.
Abuse of process.
Friction and confrontation with fellow organs of the government.

Way Forward:

There is a need to strike a balance in allowing legitimate PIL cases and discouraging frivolous ones.
One way to achieve this objective could be to confine PIL primarily to those cases where access to justice
is undermined by some kind of disability.
The other useful device could be to offer economic disincentives to those who are found to employ PIL
for ulterior purposes.

1.9. JUSTICE DELIVERY: ISSUES AND REFORMS


Why in News?

Recently, the Ninth meeting of the advisory council of the national mission for justice delivery and legal
reforms was held.

Issues in Judiciary:

Despite the decision of the Central Information Commission (CIC), Judiciary has kept itself out of preview
of RTI.
A huge number of pending cases in lower, high courts and in Supreme Court.
o Inadequacy of judge strength.
o Delays in filling up vacancies in High Courts.
o Inadequacy of staff attached to High Courts.
Unsatisfactory appointment of judges.
Steps Taken:
Lack of priority for disposal of old cases.
Old and dysfunctional elements in legislation which are no
The enactment of the Commercial
more needed in contemporary times.
Courts, Commercial Division and
Financial autonomy for the judiciary: Planning and
Commercial Appellate Division of
budgetary exercises being undertaken without consulting
High Courts Act, 2015.
the judiciary.
Amendments to Arbitration and
Additional burden on account of election petitions.
Conciliation Act, 1996 and the
Negotiable Instruments Act, 1881.
Reforms needed:
Setting up of Lawyers Academy in
Kochi to improve the quality of
Setting up of Fast Track Courts, Additional Courts and
Legal Education in India,
Family Courts.

13

Increasing the ICT capabilities of the courts.


Setting up of Alternative dispute resolution centers such as Lok Adalats should be encouraged.
Uniform methodology to collect judicial data and streamlining of court processes.
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To boost the confidence of the people in judiciary, judiciary should reveal information like the number of
pending or reserved judgments by brining itself under ambit of RTI.
Legislation should be bought in the parliament to ensure judicial accountability and bring transparency
in functioning of judiciary.
Government should work to remove old and dysfunctional elements in legislation by amending Indian
penal code, civil procedures code and Indian evidence Act.
Rules should be changed to provide a uniform retirement age for judges of the Supreme Court and the
High Courts.
To prevent corruption, cool off period should be introduced for judges before taking up any new
government assignment.

1.10. APPOINTMENT OF NHRC CHAIRPERSON


Why in News?

The government chose former Chief Justice of India H L Dattu for appointment as the next chairperson of
the National Human Rights Commission (NHRC).
A panel headed by Prime Minister selected him for the post.

About NHRC:

The National Human Rights Commission (NHRC) of India is an autonomous public body constituted on 12
October 1993 under the Protection of Human Rights Ordinance in 1993.
It was given a statutory basis by the Protection of Human Rights Act, 1993 (TPHRA).
It is responsible for the protection and promotion of human rights, defined by the Act as "rights relating
to life, liberty, equality and dignity of the individual guaranteed by the Constitution or embodied in the
International Covenants".

Appointment of Chairperson:

Under the Protection of Human Rights Act, 1993, the President appoints the chairperson on the
recommendation of a committee comprising:
o The Prime Minister (chairperson)
o The Home Minister
o The Leader of the Opposition in the Lok Sabha (House of the People)
o The Leader of the Opposition in the Rajya Sabha (Council of States)
o The Speaker of the Lok Sabha (House of the People)
o The Deputy Chairman of the Rajya Sabha (Council of States)

Previous Year Question: GS Prelims 2004


According to the National Human Rights Commission Act, 1993, who amongst the following can be its Chairman?
(a)
(b)
(c)
(d)

14

Any serving Judge of the Supreme Court


Any serving Judge of the High Court
Only a retired Chief Justice of India
Only a retired Chief Justice of a High Court

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1.11. FBI VS. APPLE


Issue

The FBI and Apple Inc. are engaged in a legal dispute over whether the federal court may compel Apple
to create and electronically sign new software that would enable the FBI to unlock an iPhone 5c. The
phone was recovered from one of the shooters in a terrorist attack in San Bernardino, California, in
December 2015.
The iPhone comes with stronger encryption. Even Apple cant access the keys to unlock an encrypted
phone, only the user controls them.

This has reignited the debate on data privacy versus national security.

US Judiciarys Stand:

It has asked Apple to provide reasonable technical assistance to investigators.


This assistance includes helping to bypass an auto-erase function that gets activated when the wrong pin
or password is entered for a fixed number of times.
Allow FBI to submit unlimited passcodes via a computer, a programme or whatever protocol they
determine.
Ensure that the Apple software doesnt purposely add any additional delay between password attempts
to unlock the device.

Views of other Stakeholders:

Apples stand:
o Apple insists its defending the privacy and safety of all iPhone users by resisting government calls to
help unlock an extremists iPhone as breaking encryption means breaking consumer trust, and
putting their devices at risk from hackers and criminals.
o Breaking encryption once will increase similar demands from other governments.
The heads of Facebook, Twitter and Google have all sided with Apple on the grounds that
o Complying with the governments request would ultimately undermine data privacy.
o Technologies that allow the FBI to force its way into the shooters iPhone will have potential
compromise the operating systems of all iPhones.
US Government: The US government informs the court that it would be willing to allow Apple to retain
possession of and later destroy specialized iOS version software after it has been ordered to design.
Victim: Some victims of the San Bernardino attack will file a legal brief in support of the US
governments attempt to force Apple Inc. to unlock the encrypted iPhone belonging to one of the
shooters.

Implications for India:

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The current Apple vs FBI case potentially has huge ramifications for security and privacy here in India and
will affect our digital future.
Indian regulators needs to find the right mix between protecting user data, while allowing law
enforcement agencies to retrieve it for investigation. As measures necessary to intercept information
could stall the development of indigenous high-security devices like the iPhone.
Also, Internet companies based abroad needs to cooperate with law enforcement agencies on legitimate
requests for user data.
India needs its own variants of Apple and the FBI: high-security devices that protect data, and a law
enforcement agency that can effectively retrieve electronic information.

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2. INTERNATIONAL/INDIA AND WORLD


2.1. TRANS-PACIFIC PARTNERSHIP (TPP)
The Trans-Pacific Partnership (TPP) is a trade agreement among twelve Pacific Rim countries signed on 4
February 2016. The 12 nations include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand,
Peru, Singapore, the United States and Vietnam.
The aim is to ease the flow of goods, services and investments among them, and to strengthen the rules
on labour standards, environmental issues, origin criteria and intellectual property.
The TPP, a deal which will cover 40 percent of the world economy.
The mega trade deal, perceived to be a counterweight to Chinas growing global economic clout.
The Office of the U.S. Trade Representative said the partnership eventually would end more than 18,000
tariffs that the participating countries have placed.
The TPP contains detailed obligations on so-called new issues such as labour, investment, environment,
e-commerce, competition and government procurement.
Impact on TPPs countries: As per the World Bank the pact could help boost the overall GDP of membercountries by 1.1 per cent by 2030.
Impact on India:
India is not part of the TPP.

The World Bank projects a limited trade diversion impact on non-members, including aggregate GDP
losses of about 0.1 per cent by 2030
India could suffer market share losses in certain categories of exports as a result of preference erosion
The Trans-Pacific Partnership (TPP) is likely to indirectly impact Indias exports in several industrial
sectors such as textiles, plastics, leather, clothing, cotton and yarn.
It has set very high standards for the international trading regime that could impact Indias export to
TPP countries.
The operations and the production methods of Indias public sector units (or SOEs) could also be
constrained due to the TPP.
Countrys regime on investment, labour standards, intellectual property rights (IPR), government
procurement and State-owned enterprises (SOE) will also be affected.
Some of the TPP standards are higher than that of the WTO norms, including on IPR and possible evergreening of patents, which could hurt Indias pharma sector.

To mitigate the impact of TPP:


From Indias perspective, remaining outside the TPP will certainly create trade diversion, but membership of the
TPP could entail heavy costs without commensurate gains.
Due to high standard and tough IPR regime India could lose some of the advantage especially in Pharma
sector. Medicine prices, for instance, would see steep increases. So it is imperative to mitigate the impact of TPP
by adopting following measures.

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India should conclude, on a priority basis, its ongoing free trade negotiations. These include the India-EU
Bilateral Trade and Investment Agreement and the mega Regional Comprehensive Economic Partnership
(RCEP).
India should diversify export destinations to hitherto untapped markets like Latin America and Africa.
On the domestic front, India should accelerate the process of making its products more costcompetitive.
Within the country, efforts must be made to enhance the competitiveness of Indias exports.
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The government should launch a comprehensive initiative to enable Indian exporters to not only comply
with standards prevalent in the importing market, but also demonstrate the compliance through
appropriate conformity-assessment procedures.
A cohesive trade policy approach on the international as well as domestic front, aimed at protecting and
promoting Indias trade interests.

2.2. INDIA AND BRUNEI


Vice President Hamid Ansari visited Brunei. His visit to Brunei was the first high-level trip from India since the
establishment of diplomatic relations between the two countries in May 1984. India and Brunei signed three
agreements during the visit of Vice President.
Importance of Brunei:
Defence cooperation :
Brunei is an important partner for India
o The two countries agreed for bilateral cooperation
in ASEAN and besides contributing to
through exchange of visits at different levels;
energy security, hosts a 10,000strong
exchange of experience, information, training and
Indian community.
trainers; conduct of joint military exercises, seminars
Brunei is fourth largest producer of
and discussions; and cooperation between the
LNG in the world.
defence industries.
o Cooperation in defence between India and Brunei
India imports crude oil worth US $1
already exists in the form of naval ship visits, training
billion from Brunei making India third
of senior military officers in staff colleges and
largest importer for Brunei.
exchange of experience.
Brunei has become an important
o The defence cooperation will provide both sides the
partner and ally for India in ASEAN.
institutional foundation for more collaborative work
Strategic location in South China Sea:
on maritime security and secure Indias energy lanes.
The SCS (South China Sea) is a major
Health:
shipping lane. Over half of the world's
o The agreement on health aims to establish
commercial cargo passes through the
cooperation by means of pooling technical, scientific,
Indo-Pacific waterways.
financial, and human resources and to upgrade the
healthcare, medical education, research between the two countries.
Youth and sports affairs
o In the field of youth and sports affairs, the agreement provides a framework for exchanges of sports
persons and sports teams; facilitate the exchange of expertise in coaching, sports talent
identification, sports management and administration and exchange of information in the field of
youth affairs.

2.3. INDIA AND THAILAND


Vice President visited Thailand. Thailand is an important pillar of India's 'Act East' policy.
Highlights of visit:
India and Thailand laid a roadmap for further strengthening bilateral ties including in defence as the two
countries expressed their shared interest in securing international sea lanes.
Defence cooperation:

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Cobra Gold 2016: India will participate in Cobra Gold 2016 [multilateral amphibious exercise] and
Operation Maitri [counter-insurgency] operations.
India and Thailand will soon hold naval exercises in the Andaman Seas.

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Worried over the possible proxy use of narcotics and human trafficking networks by terror operators,
India and Thailand have started talks on exchanging prisoners that are of mutual interest.

Importance of Thailand:

Apart from security cooperation, Thailand is also an important partner for the 3,200 km IMT (IndiaMyanmar-Thailand) Highway that will connect Indias Northeast with the industrial zones of Southeast
Asia.
Thailand is the second largest economy in the Association of Southeast Asian Nations (ASEAN).
Two-way trade in 2014 totaled US $ 8.66 billion, with about US $5.62 billion in Thai exports to India and
US $3.04 billion in Indian exports to Thailand.
As maritime neighbours, India and Thailand have a shared interest in the security of international sea
lanes.
Extradition treaty: The latest plan to fast track prisoners exchange is based on the bilateral extradition
treaty, 2013, and the Mutual Legal Assistance Treaty, 2004, which provide the legal basis for negotiation
to both sides.
Major extraditions from Thailand: In January 2015, Thailand handed over Jagtar Singh of Babbar Khalsa
International (BKI) and followed it up with the handing over of Thai gunrunner Willy Naru, Wuthikorn
Naruenartwanich in December 2015.

2.4. INDIA AND SRI LANKA


Indias external affairs minister visited Sri Lanka to attend 9th session of joint commission meeting to discuss
key bilateral and regional issues. The joint commission was set up in 1992 as a mechanism to address issues of
bilateral cooperation.
Important highlights of Joint commission:
The discussions covered the entire gamut of relationship pertaining to economic cooperation, trade, power and
energy, technical and maritime cooperation, social, cultural and educational matters, science and technology,
defence cooperation, health, civil aviation, tourism and people-to-people contact.

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Sri Lanka proposed partnership in setting up a Special Economic Zone (SEZ) in Trincomalee and
increase cooperation in aviation sector.
The two sides also discussed plans to enhance cooperation in aeronautical research and use of Indian
satellite system Gagan by Sri Lanka.
Sri Lanka proposed on cooperation on oil tanks farm in Trincomalee.
On tourism: Second meeting of joint working group on tourism will be held in mid-2016 to take forward
the collaboration on development of Ramayana circuit in Lanka and extension of Buddhist circuit in
India.
Sri Lanka made a request to India to consider new projects under the Small Development Project (SDP)
model.
The Joint Commission will look at facilitation of voluntary return and repatriation of Sri Lankan refugees
from India.
India has come forward to host a workshop in Colombo on the proposed Economic and Technological
Cooperation Agreement to address concerns on the side of Sri Lanka.
India has expressed support for Sri Lanka on its reconciliation and development policies.
Two MoUs were signed after the meeting one on renovating 27 schools in the Tamil-dominated
Northern Province and the other on building a surgical ward and supplying medical equipment to the
Batticaloa Teaching Hospital in the East.
Sampoor project: 500-MW Sampoor thermal power project, a joint venture involving Sri Lanka and India,
was granted environmental clearance.

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Fishermen Issue:
The fishermen issue continues to be a major irritant in the Indo-Lanka ties.

Sri Lanka accuses Indian fishermen of straying into its territorial waters, while the latter maintain they
are only fishing in their traditional areas, especially around Katchatheevu, an islet ceded to Colombo in
1974.
India maintains that the fishermen issue has a socio-economic dimensions, livelihood and humanitarian
dimension and wants a long term solution to the problem.

Rise of Digital India:

The Indian Minister inaugurated a Rise of Digital India exhibition as part of Sangam Festival of India
in Sri Lanka 201516.
External affairs minister announced Indias offer to set up an IT park in Sri Lanka.

2.5. INDIA AND UAE


UAE Crown Prince Sheikh Mohamed bin Zayed Al Nahyans paid his first state visit to India from 10th to 12th
February, 2016. During his visit various agreements have been signed.
India and the United Arab Emirates (UAE) signed nine agreements covering cooperation in the fields of currency
swap, culture, investments in the infrastructure sector, renewable energy, space research, insurance
supervision, cyber security, skill development and commercial information sharing.
List of the agreements:

India and the United Arab Emirates (UAE) signed a Memorandum of Understanding (MoU) bilateral
swapping of Indian Rupee with their Dirham.
For the first time in the history of India-UAE bilateral ties, both sides signed an MoU on cooperation in
space technology, science and applications including remote sensing; satellite communication and
satellite-based navigation.
An MoU titled Executive Programme for Cultural Cooperation between the Government of the UAE and
the Government of India (2016-2018) aims at developing and boosting cultural relations between the
two countries, protection of national heritage and exchange of publications of mutual interest.
An MoU between the UAE's Insurance Authority and the Insurance Regulatory and Development
Authority of India (IRDAI) aims at promoting cooperation in insurance regulations.
An MoU sets deals with facilitating contributions of the UAE's investment funds to investment in India's
infrastructure. It also aims at achieving further economic, trade and investment cooperation.
A Letter of Intent between the UAE's National Qualifications Authority and India's Ministry of Skill
Development and Entrepreneurship establishes cooperation in the areas in skill development and
mutual recognition of qualifications as well as transfer of skilled labour between India and the UAE and
implementing the principles of equality and mutual benefits.
An MoU for cooperation in the area of combating electronic crimes. The MoU aims at boosting
cooperation in the area of electronic crimes, which threaten to destabilise societies.
A General Framework Agreement between the UAE's Ministry of Foreign Affair and India's Ministry of
New and Renewable Energy sets out cooperation in the area of renewable energy, especially in the area
of investments and joint research and development efforts between the two countries.
UAE's national oil company Adnoc has agreed to store crude oil in India's maiden strategic storage and
give two-third of the oil to it for free.

Importance of UAE:
India and the UAE enjoy strong bonds of friendship based on civilisational links, age-old maritime trade and
vibrant people-to-people contacts.

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Security of Indian community and Remittance: The 2.6 million-strong Indian community constitutes
nearly 30 per cent of UAEs population.
Trade relation : In FY 2014-15, trade between India and UAE crossed US$ 59bn, with Indian exports
worth US$ 33.3bn to the UAE and US$ 26bn worth of UAEs exports to India, thus making UAE Indias
one of the top trading partner.
o The UAE is the third largest trading partner of India after the US and China and also the sixth largest
source of India's crude oil imports.
Investment: During the visit of Prime minister to the UAE in August 2015, the first by an Indian prime
minister in 34 years, the UAE committed $75 billion in investments in Indias infrastructure sector.
Strategic and defence cooperation: Prime ministers visit elevated the UAE relationship to a
comprehensive strategic partnership, including the establishment of a Strategic Security Dialogue
and engagement between their respective national security advisors and national security councils.
There will be regular exercises and training of naval, air, land and Special Forces, and in coastal defense.

Strategic Importance of Gulf region:


UAE is important country in Gulf region. India has very high stake in stability of gulf region.

New Delhis existing economic interests have gained a strategic dimension with a growing reliance on
Gulf oil and gas.
The central geopolitical shift in the region is the diminishing of US interest and influence, making for a
more multipolar Middle East.
The fluid security situation in the broader Middle East provides new opportunities for an ambitious
India. The Gulf states are looking to diversify their security guarantors and may seek to maintain
leverage by working with multiple strategic partners.
The Gulf region, which hosts seven million expatriate Indians and is an important source of remittances,
has a strong bearing on India's security and stability in its neighbourhood.
The Gulf States sit at the western rim of the Indian Ocean, Dehlis perceived sphere of future strategic
influence.

2.6. INDIA AND NEPAL


Nepals Prime Minister K.P. Sharma Oli paid his first state visit to India. In accordance with tradition, Mr. Oli
made India his first destination abroad after becoming Prime Minister in October 2015. India and Nepal signed
seven agreements.
List of the agreements:

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MoU on utilisation of USD 250 million grant component of Government of Indias assistance package for
post-earthquake reconstruction assistance to Nepal:
o The MoU includes four sectors housing, health, education and cultural heritage have been
identified.
MoU on strengthening of road infrastructure in Tarai area of Nepal:
MoU between Nepal Academy of Music and Drama and Sangeet Natak Academy
This MoU aims to enhance relations between India and Nepal in the field of performing arts through
exchanges of experts, exponents, dancers, scholars and intellectuals.
Letters of Exchange on Transit Routes:
o Transit between Nepal and Bangladesh through Kakadbhitta-Banglabandh corridor aims at
simplification of modalities for traffic of goods between Nepal and Bangladesh while transiting
through India, through the Kakadbhitta (Nepal) and Banglabandha (Bangladesh) corridor.
o Operationalisation of Vishakhapatnam Port would provide transit facilities for Nepal through the
Vishakhapatnam port.
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Inauguration of Muzaffarpur-Dhalkebar transmission line


Establishment of Eminent Persons Group
o At the third meeting of the India-Nepal Joint Commission held at Kathmandu in July 2014, it was
decided to establish an Eminent Persons Group (EPG). Its mandate would be to comprehensively
review bilateral relations and recommend measures including institutional frameworks to further
enhance bilateral ties.

Significance of visit:
In August 2015, Nepal adopted new constitution since then there is continuous blocked at the indo-Nepal border
by Madhesi. Nepal-India tensions spiked last year with the promulgation of a constitution that was perceived as
non-inclusive of ethnic Madhesi and Tharu groups.

The Nepal government accused India for imposing the blockade that led to a severe humanitarian crisis
in Nepal. The Nepali government alleged that the Indian government had encouraged the blockade to
apply leverage on Kathmandu to pursue constitutional reform.
India refuted those allegations, stressing that the border tensions were caused by the Madhesi parties
and were the outcome of internal protests in Nepal. India also accused Nepal of stoking anti-India
sentiment and has been irritated about Nepals attempt to use the China card.
Nepal PM visit in such circumstance had provided opportunity to both sides to minimize
misunderstanding. During the visit India conveyed that Kathmandu should urgently resolve the issue to
create a sense of security and harmony in the Terai region and ensure uninterrupted commerce.
Peace and stability in Nepal is vital for Indias economic development and security. Prolonged conflict in
Nepal will have spillover effect especially in Bihar and Uttar Pradesh that share open border with Nepal.
Anti-India feeling in Nepal may provide opportunity for china to exploit the volatile situation.

2.7. INDIA AND PAKISTAN


Siachen Dispute:

Siachen which means the land of roses also


has the dubious distinction of being the worlds
highest battlefield.
A triangular bit of land between Pakistan occupied
Kashmir and the part ceded by Pakistan to the
Chinese.
The Siachen dispute is a direct result of the
ambiguity that exists in the Karachi ceasefire
agreement of July 1949.
The agreement, which established the ceasefire
line, the positions of the two militaries at the end
of the 1947-1948 war, did not delineate beyond
grid reference NJ 9842, which falls south of the
Siachen glacier, to the Chinese border but left it as Chalunka (on the Shyok River), Khor, thence North
to the glaciers.

Interpretation of Karachi ceasefire agreement:


Indian and Pakistani sides have since interpreted the phrase thence North to the glaciers very differently.

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Pakistan argues that this means that the line should go from NJ 9842 straight to the Karakoram pass on
the Sino-Indian border.
India, however, insists that the line should proceed north from NJ 9842 along the Saltoro range to the
border with China.
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Strategic location:

Siachen sits at a very strategic location with Pakistan on the left and China on the right. So Pakistan reinterpreted it as North-Eastwards to claim the area beyond the Saltoro Ridge and beyond Siachen as its
own.
This would give Pakistan direct connectivity to China as well as a strategic oversight over the Ladakh
region and on to the crucial Leh-Srinagar highway posing a serious threat to India.

Operation meghdoot:

In 1983, Pakistani generals decided


to stake their claim through troop
deployments to the Siachen glacier.
To pre-empt Pakistan, India launched
Operation Meghdoot in April 1984
and occupied the high points of the
glacier.
The Indian Army currently controls
all of the 70 kilometres long Siachen
Glacier and all of its tributary
glaciers, as well as the three main
passes of the Saltoro Ridge
immediately west of the glacier, Sia
La, Bilafond La, and Gyong La, thus holding onto the tactical advantage of high ground.

For detail refer Article 6.7 under internal security heading

2.8. F-16 SALE TO PAKISTAN


The USA administration has moved ahead with its plan to sell eight F-16 fighter planes to Pakistan.
USA arguments for sale:

Supply of F-16 fighter jets to Pakistan will help combat terrorism.


These fighter planes have enhanced the Pakistani militarys precision-strike capabilities.

Opposition to deal:

India has opposed the sale of F-16 to Pakistan. India has insisted that Pakistan is still harboring terrorist
organizations that are threat to Indias security.
The Pakistani and Taliban-linked terrorist group Jaish-e-Mohammed is believed to be behind the recent
attack on Indias Pathankot Air Force base.
Many USA lawmakers have opposed the deal on the grounds that Pakistan continues to support terror
outfits. Some have also raised the point these nuclear capable planes could be used to threaten India
and destabilise the region.

1. India Pakistan and USA


USA de-hyphenating policy:
The US government, under President Bush, formulated the action plan of the de-hyphenation policy but it was
sealed when Obama came to power.

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It allows the State Department to view India and Pakistan as two separate silos, without referring to
their bilateral relations.
It has been useful for the US as it was able to improve strategic and military ties with India without
necessitating a reaction from Pakistan.
It also helped them in Afghanistan to continue with their strategy of collaborating with the Pakistan
army without referring to India.
Special Representative for Afghanistan and Pakistan (SRAP) was set up in 2009 which hailed the
commencement of the de-hyphenation policy.
By separating its relations with both New Delhi and Islamabad from each other, Washington has stood to
gain a lot since 2008, as have the two countries in question.

Reversal of policy:

Seven years after the Obama Plan of 2009 restructured the US State Department to de-hyphenate
relations with India and Pakistan, the administration is actively considering a reversal of the move. The
Obama Government wants to re-merge the office of the Special Representative of Afghanistan and
Pakistan (SRAP) with the Bureau of South and Central Asia (SCA), which handles India.

Impact of such decision:


Re-hyphenation implies putting India and Pakistan in the same basket vis--vis Washington's relations with both
these countries. India disapproved of hyphenation with Pakistan.

Such a decision would significantly enhance the prospects of Washington's meddling in India-Pakistan
relations.
o Inclusion of SARP would make the US third party in India-Pakistan dispute
o The present state of de-hyphenated India-Pakistan relations allows for a bilateral resolution of the
mutual problems between the countries without any mediation by a third party.
A re-hyphenated India-Pakistan relationship in the US's scheme of things is not desirable for India
because it is likely to affect India's Afghanistan policy.
o India's Afghanistan policy could be tweaked to support some of the US's own policies in the region.
o It would make India indirectly support US policy in Afghanistan.

2.9. INDIA - USA SOLAR DISPUTE


Solar dispute:
National Solar mission (NSM):

The NSM has the aim to promote the use of solar energy in India. The Mission has set the ambitious
target of deploying 20,000 MW of grid connected solar power by 2022.
In June 2015, the Union Cabinet gave its approval for stepping up of Indias solar power capacity target
under the Jawaharlal Nehru National Solar Mission (JNNSM) by five times, reaching 1, 00,000 MW by
2022.
The government has also offered financial support of up to Rs.1 crore per MW to the implementing
agency for setting up large solar capacities by placing orders with domestic manufacturers.

USA against National Solar mission:


The US has filed a complaint in the WTO against India's domestic content requirement (DCR) under the
country's Jawaharlal Nehru National Solar Mission.

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US have claimed that the DCR violates WTO agreements such as national treatment principle and
agreement on trade related investment measures (TRIMS).
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The US trade complaint in 2013 alleged that the Jawaharlal Nehru National Solar Mission subsidies were
available only if developers used equipment produced in India, violating a key global trade rule.

Indias proposal to USA:


India is convinced that the DCR is a mechanism to facilitate sustainable development.

India proposed that it would use the domestic content requirement measures for buying solar panels for
its own consumption such as by the railways and defence and would not sell the power generated from
such subsidized panels for commercial use.

WTO ruling:
The WTO ruling comes three years after the U.S. raised a dispute against India, and following the inability of the
two countries to agree on the changes suggested by New Delhi to its solar programme. Following are the main
point of WTO ruling :

Indias domestic content requirements in question were trade-related investment measures for the
purposes of the Illustrative List in the TRIMs Agreements Annex and were therefore inconsistent with
Article 2.1 of the TRIMs Agreement.
The Panel also found that the domestic content requirements in question do accord less favourable
treatment within the meaning of Article III:4 of the GATT 1994
The panel, however, did not pronounce a verdict on the financial subsidies provided by India for

Analysis:
Given the potential for positive social and economic outcomes from the ambitious solar power programme, India
will be compelled, to contest the WTO ruling before the appellate body. The rulings of the WTOs dispute
settlement panel can be challenged in the WTOs appellate body.

Many analysts feel that the WTO ruling will have wider implication not for India but also many
developing countries that are struggling to switch to green economy. Domestic content requirement is
envisages to generate job to lift millions of people from abject poverty.
Also there is growing international pressure for promoting green industries to address climate change
after the Paris climate change agreement.
The final ruling comes soon after the Paris climate agreement, where developing countries were
promised technological and financial assistance for promoting renewable energy programmes.
At Paris, Prime Minister Narendra Modi launched the ambitious International Solar Alliance, with the
aim of switching sunshine nations in tropical areas to solar energy.
Global environmental pressure groups have criticized the WTO ruling and requested developed
conntires not to impose free trade rules that threaten the clean energy economy and undermine action
to tackle the climate crisis.

2.10. IMF REFORM


The IMF has announced implementation of its long due quota reforms which was approved by the US Congress.
Key points of reform:

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More than 6 percentage points of the quota, including both the Funds capital and its proportionate
voting rights, have been transferred from developed to emerging economies.
Emerging and developing economies gained more influence in the governance architecture of the
International Monetary Fund (IMF).

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Indias voting rights increase to 2.6 per cent from the current 2.3 per cent, and Chinas, to six per cent
from 3.8
For the first time, four emerging market countries (Brazil, China, India, and Russia) will be among the 10
largest members of the IMF.
The greatest gains from the reforms accrue to the IMF itself, as the combined capital that its 188
member-countries contribute will increase to approximately $659 billion(SDR 477 billion) from nearly
$329 billion (SDR 238.5 billion).
U.S voting share will marginally drop, from 16.7% to 16.5%. Though the country holds a veto power.
Also for the first time, the IMFs Board will consist entirely of elected Executive Directors, ending the
category of appointed Executive Directors. Currently, the members with the five largest quotas appoint
an Executive Director.

What is SDR?
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries
official reserves. Its value is currently based on a basket of four major currencies (of the U.S. dollar, euro,
Japanese yen, and pound sterling), and the basket will be expanded to include the Chinese Renminbi (RMB) as
the fifth currency, effective October 1, 2016.

2.11. SUPPLEMENTARY COMPENSATION FOR NUCLEAR DAMAGE (CSC)


India ratified the Convention on Supplementary Compensation for Nuclear Damage (CSC) at the International
Atomic Energy Agency (IAEA) in Vienna five years after signing it.
Advantage for India:

Addresses the concerns of foreign nuclear equipment suppliers. International nuclear reactor makers
have been reluctant to set up plants in India because of a 2010 domestic liability law that makes
equipment suppliers accountable for accidents and not the plant operators, as is the global norm.
It will spur the growth of nuclear energy.
India became part of a global legal regime that has established a standard for compensation of victims in
the event of a nuclear accident.
India will get access to international funding.

About the convention:


The CSC was adopted on 12 September 1997, together with the Protocol to Amend the Vienna Convention on
Civil Liability for Nuclear Damage, and entered into force on 15 April 2015.

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The CSC is a convention that allows for increasing the compensation amount in the event of a nuclear
incident through public funds pooled in by contracting parties based on their own installed nuclear
capacities.
It also aims at establishing treaty relations among States that belong to the Vienna Convention on Civil
Liability for Nuclear Damage, the Paris Convention on Third Party Liability in the Field of Nuclear Energy.
Seeks to establish a uniform global legal regime for compensation to victims in the unlikely event of a
nuclear accident.
The CSC provides for establishment of an international fund to increase the amount available to
compensate victims and allows for compensating civil damage occurring within a State's exclusive
economic zone, including loss of tourism or fisheries related income.
It also sets parameters on a nuclear operator's financial liability, time limits governing possible legal
action, requires that nuclear operators maintain insurance or other financial security measures and
provides for a single competent court to hear claims.

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According to IAEA, all states are free to participate in the convention regardless of their involvement in
existing nuclear liability conventions or the presence of nuclear installations on their territories.

Criticism of Indias move:


Many nuclear experts feel that this move violate the domestic Civil Liability for Nuclear Damage Act (CLNDA),
2010, Clauses 17(1) (B) and 46.

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Under Section 17(b), liability for a nuclear accident can be channeled from the operator to suppliers of
nuclear material, specifically if the accident is due to an act of the supplier or his employee.
Section 46 permits victims of a nuclear incident to sue the operator or the supplier for damages
applying tort law.

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3. ECONOMY
3.1. TAPAN RAY PANEL RECOMMENDATIONS
Aimed to review the 2013 Company Law, the Tapan Ray panel proposed over 2000 suggestions and
recommendations. Recommendations are aimed at making the transition from Companies Act 1956 to
Companies Act 2013 easier, improve Ease of Doing Business and provide better environment to start-ups.
Major recommendations:

As per 2013 law, a public sector company is required to seek approval from central government should it
want to give total managerial remuneration which exceeds 11% of net profit. The panel has
recommended doing away with the provision.
Harmonizing disclosure standards between SEBI and Companies Act -The independent director should
not have any kind of pecuniary relationship with the company.
Defining a subsidiary company in terms of voting rights of the holding company instead of total
share capital of the holding company.
Removal of provision under Section 2(87), which prohibited the companies to not have more than two
levels of subsidiaries.
Establishment of an independent body, National Financial Reporting Authority (NFRA), to provide for
matters relating to accounting and auditing standards which is being seen as a major jolt to the Institute
of Chartered Accountants of India (ICAI).
Allowing start-ups to issue 50% of the paid capital as sweat equity against existing norms of 25 %.
Allowing start-ups to issue employee stock ownership plan (ESOP) to promoters who are working as
employees or employee directors or whole-time directors.
Only those frauds which involve Rs 10 lakh or above, or one per cent of the company's turnover,
whichever is lower, may be punishable under Section 447 of the companies act.

3.2. NATIONAL CAPITAL GOODS POLICY

National Capital Good policy has been launched for the first time to give a boost to the capital goods
sector and also support the Make in India initiative.
The capital goods sector provides direct employment to 1.4 million people and the sector is growing at
1.1% per annum.
The policy envisages increasing exports from the current 27 per cent to 40 per cent of production while
increasing share of domestic production in India's demand from 60 per cent to 80 per cent, thus making
India a net exporter of capital goods.
The policy addresses key issues including availability of finance, raw material, innovation and
technology, productivity, quality and environment friendly manufacturing practices, promoting exports
and creating domestic demand.

Major Points of National Capital Goods Policy:

27

Integration of major capital goods sub-sectors such as textile, earth moving and plastic machinery among
others as priority sectors under Make in India initiative.
To facilitate improvement in technology depth across sub-sectors, increase skill availability, etc.
Increasing budgetary allocation for enhancement of competitiveness of Capital Goods sector scheme of
the DHI (Department of Heavy Industry) on by
Enhancing the export of Indian made capital goods through a Heavy Industry Export & Market
Development Assistance Scheme (HIEMDA).
Provision for launching a Technology Development Fund.
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Upgrading existing and setting up new testing & certification facility, making standards mandatory in
order to reduce sub-standard machine imports
Providing opportunity to local manufacturing units by utilising their installed capacity

Way Forward:
The present policy has tried to comprehensively deal with the issues facing the sector but the policy needs to be
supported with a proper environment, which would require several structural reforms including infrastructure,
regulatory reforms, improving ease of doing business etc.

3.3. INDEPENDENT FISCAL COUNCIL

Members of the XIV Finance Commission have questioned the governments failure to act on its
recommendation to constitute an Independent Fiscal Council.
The proposed council would objectively evaluates budget announcements and forecasts and report to
the Parliament. It is critical to improve the governments credibility on fiscal management.

Importance of Fiscal Council:

While the union government monitors fiscal targets of states nobody oversees its own fiscal decisions.
States have constraints in managing their finances as the RBI controls their deficit and cannot float a
bond on a states behalf without the Centres approval.
According to experts, the Centre opts for creative accounting, pauses or simply doesnt follow the
targets it has submitted to Parliament under the Fiscal Responsibility and Budget Management (FRBM)
Act of 2003.
Since the 2003 FRBM law came into effect, there have been four pauses in the deficit targets enshrined
in it and a few occasions where the targets have been flouted.
In the short and medium term, it will help allay fears of global credit rating agencies about the
governments commitment to fiscal targets.
The Auditor General monitors the FRBM Act but thats a post-facto assessment.
In six of the last eight years, revenue forecasts of the government fell short by around 10 per cent, due
to overestimation. Shortfalls from projections translate into funding cuts in the middle of the financial
year for all schemes and projects.
The government is always under pressure to breach the fiscal deficit target. RBIs view is also driven by
its own perspective and primary focus on monetary policy. A Fiscal Council would be a very important
body especially when controversies on issues like fiscal deficit thresholds arise.

3.4.TRADE FACILITATION AGREEMENT (TFA) IN GOODS


Why in news?

Government recently cleared TFA in Goods and proposed a National Committee on Trade Facilitation
(NCTF)
There is provisions for expediting the movement, release and clearance of goods
It sets out measures for effective cooperation between customs and other appropriate authorities on
trade facilitation and customs compliance issues.

Benefits for India:

28

In consonance with Indias Ease of Doing Business initiative.


Aimed at relaxing customs rules for smoother trade flow.
Projected to cut the cost of trade by an average of 14.5%.
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Raz Kr

May Provide permanent solution to the issue of public stockholding for food security purposes and
Mechanism to safeguard poor farmers from sudden import surge of farm products

Negative implication:

Ratifying the agreement so early could lead to India losing a bargaining chip to secure its interests.

Way forward:

Customs Act need to change to fulfil Indias commitments under the pact.
Changes in rules will need to be instituted in a range of areas.
India have already ratified TFA in services.

Similar Questions UPSC Mains 2013


1. Food security bill is expected to eliminate hunger and malnutrition in India. Critically discuss various
apprehensions in its effective implementation along with the concerns it has generated in WTO 2009
2. In the WTO negotiations over the years of the DOHA Round, India appears to be diluting its stand on
agriculture issues to pursue perceived gains in services. Critically examine this statement.

3.5. HYDROCARBON VISION 2030 FOR NORTH-EAST


Why in news?

Union Ministry of Petroleum and Natural Gas released Hydrocarbon Vision 2030 for North-East with an
eye to leverage the hydrocarbon sector for the development of the North-East India.
Aim is doubling Oil & Gas production by 2030.
Five Pillars of the Vision are: People, Policy, Partnership, Projects and Production.

Focus Areas:
Making clean fuels accessible:
Pipeline connectivity for carrying liquefied petroleum gas (LPG), natural gas, and petroleum products, oil
and lubricants (POL)
Building refineries and import links
Development of compressed natural gas (CNG) highways and city gas distribution network
Fast tracking projects:
Terrain and weather condition specific approach to projects.
States
covered:
Arunachal
Production enhancement contracts
Pradesh,
Assam,
Manipur,
technology deployment and fast-track clearance
Meghalaya, Mizoram, Nagaland,
Generating employment opportunities
Sikkim and Tripura.
Development of service provider hubs.
Exploring hydrocarbon linkages and trade opportunities with Bangladesh, Myanmar, Nepal & Bhutan;
Implementation of Make In India in the region;
Industrial policy & infrastructure related action points;
Centre-state cooperation: the stress is on greater involvement of state governments in planning and
implementation, and
Promoting cooperation with neighbouring countries and establishing trade ties with them.
Analysis:

29

Thus it is a very comprehensive document which has the capacity to accelerate the process of
development in the North East region and can prove to be a game changer for this region.
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Raz Kr

3.6. DRAFT BULK DRUG POLICY


Why in news?

Based on recommendations of Katoch committee, Department of Pharmaceuticals (DoP) had moved


draft on bulk drugs policy.
Bulk drug manufacturers expect the policy to revive India's active pharmaceutical ingredients (API)
market and trigger fresh investments worth Rs 30,000-40,000 crore in setting up new manufacturing
facilities and augmenting existing ones.

What are Bulk Drugs?

Bulk Drugs or APIs are basically the active raw materials used in a drug that gives it the therapeutic
effect.
Bulk drugs are used as raw materials by the pharmaceutical industry.

Need:

Bulk drugs currently constitute only 10-12 percent share in the country's Rs 80,000 crore-domestic
pharmaceutical sector.
There is dependency on import from china. According to industry estimates, 70-80 per cent of the
requirement of the industry is met by imports from China, varying across categories.
There is problem with quality parameters on imported Chinese bulk drug.

Draft Policy- Salient Features:

It aims to make India self-dependent of Bulk drug manufacturing.


An ecosystem to help pharma companies to move up in the value chain
and develop new molecules through innovations.
To grow the Indian pharmaceuticals sector to a $200 billion industry by
2030.
It will be achieved by developing APIs manufacturing capacities.
Mega Parks for APIs maintained by separate special purpose vehicle.
6 large API Intermediate cluster.
Revival of PSU for manufacturing of essential drugs.
Soft Loans to Manufacturers.
Investment in R&D.
Tax benefits and import duty exemption.
Separate Institutional mechanism for liaisoning with other ministry for
E.g. for environmental clearance, for power etc.

Fact sheet on Pharma


Industry
Global pharma industry is
estimated
at
$1,000
billion.
Indian pharma industry at
present is of $32 billion.
The industry is growing at
8-9 per cent per annum at
present.
2015 was the year of
Active
Pharmaceutical
Ingredients.
India is a superpower as
far as generic drugs are
concerned.

Challenges:

Regulatory framework need to strengthened and brought on par with international practices.
Issue with infrastructure requirements of the pharmaceutical industry
R & D lacks in developing new molecules and drug discovery

Way forward:

30

Industry need to focus on innovation and adopt international practice.


India has a potential to be pharmacy hub for the world
At least need to became self sufficient to meet our own requirements
Will help in to bring down cost of drugs to consumer
There is proposal by central government to create a new ministry for pharmaceuticals and medical
devices
There is need of voluntary Uniform Code of Pharmaceutical Marketing Practices
Make in India initiative will help the industry in a big way
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3.7. MARKET ECONOMY STATUS

Indias Commerce Ministry is assessing the implications of the likelihood of China being granted Market
Economy Status (MES) from December this year under the World Trade Organisation (WTO) norms.
Since the main impact of China being granted MES would be on 'anti-dumping' cases, the Directorate
General of Anti-Dumping and Allied Duties (or DGAD, an autonomous body under the commerce
ministry) has begun consultations with stakeholders including international trade experts and lawyers on
the issue.

What is Market Economy Status?

Once a country gets MES status, exports from it, will have to accepted at the production costs and selling
price as the benchmark.
The definition of a country as a Non Market Economy (NME) allowed importing countries to use
alternative methodologies for the determination of normal values, often leading to higher anti-dumping
duties.

What is dumping?

Dumping is an unfair trade practice of exporting goods to another country at a price lesser than what is
paid in the exporting nation or their normal production cost, thereby distorting international trade and
causing injury to the domestic manufacturers of the goods in the importing country.

History:

As per the 2001 agreement (Protocol on the accession of China to the WTO), in calculating the 'normal
value' of the exported goods, the WTO member nations could for 15 years (that is till December 2016)
ignore selling price and production costs in China.
Member Nations could instead calculate the dumping margin on the basis of a comparable export price
to an appropriate third country and by 'constructing' the production cost with 'reasonable' additions.

Consequences for India:

It will mean lesser chances of anti-dumping duties being imposed or lesser anti-dumping duties even if
they are imposed.
This comes against the backdrop of instances of India's manufacturers in steel, chemicals, electrical and
electronics sectors being severely hurt by unfairly low-priced imports from China, and the extensive
usage of anti-dumping duty by India to offset the losses caused to the local manufacturers due to
dumping.
Of the 535 cases where anti-dumping duties were imposed by India from 1994-2014, a maximum of 134
has been on goods from China.

Arguments of China:

Beijing has cited the 2001 agreement on China joining the WTO to say that WTO-member countries had
then decided to deem China as a 'market economy' from December 2016 while adjudicating antidumping cases.

Arguments of India, US and EU:

31

To deny China the MES, India and others such as the US and the EU have been saying that unlike in
'market economies' where prices are mainly determined by market forces (of demand and supply), there
is significant government influence in China that in turn causes distortions in international trade.
These countries have also been citing factors such as huge Chinese government subsidies, 'price fixing',
'absence' of proper business accounting standards, besides lack of transparency in not just loan rates,
but also in minimum wages and property rights in China.
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3.8. NON TAX REVENUE E-PORTAL

Finance minister launched Non-tax receipt portal (NTRP) to electronically collect non tax revenue.
It was developed by the Controller General of Accounts
Controller General of Accounts:
(CGA).
It provides a one-stop platform to citizens or corporates or
Controller General of Accounts is the
other users to make online payment of non-tax receipts to
principal Accounts Adviser to the
the Union government.
Government of India and is responsible
While taxes are largely collected using the e-payment
for establishing and maintaining a
mode, non-tax revenues flow mainly through physical
technically
sound
management
accounting system.
instruments such as bank draft or cheque or cash.
He prepares a critical analysis of
Online payments can be made by using either a credit card,
expenditures, revenues, borrowings and
a debit card or through Internet banking.
the deficit for the Finance Minister every
NTPC made the maiden payment on the portal by remitting
month.
Rs.989 crore as an interim dividend to the government.
He also prepares annual Appropriation
Accounts (Civil) and Union Finance
Accounts for presentation to the
Parliament.

What is not tax revenue?

It mainly includes dividends, interest receipts, spectrum


charges, royalty, licence fee, sale of forms and application
fees under the Right to Information Act.
The major sources of non-tax revenue for the government are from dividends paid by public sector
companies, the Reserve Bank of India, etc.
The annual collection of non-tax receipts amounts to over Rs. 2 lakh crore.

Advantages:
It will reduce manual work significantly.
The online electronic payment will help common users/citizens from the hassle of visiting bank premises
for issue of drafts, and later to government offices to deposit the instrument for availing services.
It will almost instantly enable the payment at different categories.
It also helps avoidable delays and remittance of these instruments into government account.
It will also eliminate undesirable practices in the delayed deposit of these instruments into bank
accounts.
One major way to curb black money is to discourage cash transactions in favour of electronic
transactions.
It is an important step towards achieving the Prime Minister's Office target to switch at least 90 per cent
of all official transactions to paperless mode by the end of 2016.
This is an important initiative under the Digital India campaign.

3.9. ASSETS RECONSTRUCTION COMPANY


[Please refer September 2015 issue for background on NPAs (what is NPA, reasons, solutions)]
Why in news?

32

To tackle rising NPAs, the Union Finance Ministry


and NITI Aayog has recommended to set up an Asset
Reconstruction Company (ARC) with equity funding
from the government and the RBI.
PSBs condition is particularly bad as compared to
private banks because they have to lend under
various government objectives and under the
compulsion of social banking.
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Criticism of state funded ARC:


Government equity in ARC will amount to tax payers paying for the bad lending practices of banks in the past.
Various steps taken to deal with rising NPAs in recent years

Stressed assets VS Non Performing Assets:


Stressed Asset - An account where
principal and/or interest remains overdue
for more than 30 days.
NPA - A loan or advance for which the
principal or interest payment remained
overdue for a period of 90 days.

Corporate Debt Restructuring Mechanism


Joint Lenders Forum
Asset quality review by the RBI under which identified
specific accounts have to identified as non-performing
by banks
Increasing provision by banks for stressed assets
5:25 scheme
Government announced Rs. 70,000 crore to recapitalization of banks in coming four years in August,
2015

Way forward:
With these steps in place, RBI governor expects the problem of NPA would be tackled by March 2017. Apart
from above there should be adequate number of debt recovery tribunals and P J Nayak committees
recommendation regarding governance of banks should be implemented.

3.10. MAKE IN INDIA: RENEWABLE ENERGY


Why in news?

Renewable energy seminar was held in Make in India week to promote investment in this sector.
Recently BRICSs New Development Bank President KV Kamath announced that the majority of NDBs
initial projects, both in number and value, would be green. It is set to fund a dozen such projects this
year.

Reasons to invest:

India has the fifth largest power generation portfolio worldwide with power generation capacity of 271
GW.
Economic growth, increasing prosperity, a growing rate of urbanisation and rising per capita energy
consumption has widened access to energy in the country.
Wind energy is the largest renewable energy source in India.
The Jawaharlal Nehru National Solar Mission aims to generate 1, 00,000 MW of solar power by 2022.
India, in budget 2015, announced a target of installing 175 GW capacity by 2022. Indias total installed
capacity in one year stands at close to 28 GW.
Challenges:

Unavailability of appropriately skilled manpower


for construction and commissioning of solar
units
Current skilling programmes need to be made
more relevant and accessible to ensure high
quality of training.
Benefits:

33

India needs to create 10 million new jobs every


year. Solar deployment industry alone can
create more than 1 million full-time equivalent
jobs between now and 2022.
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These would include semi-skilled, skilled and highly skilled jobs.


The wind sector is expected to create 183,500 jobs by 2022, as wind capacity increases to 60GW

Way Forward:

Need of synergy between Renewable energy programme and Skill India Initiative, which aims to skill 400
million people by 2022.
Setting up training institutes with standardized training programmes in areas with the most renewable
energy potential and upcoming capacity.
Need to have end-to-end solar manufacturing in the country.
Strengthening domestic manufacturing of solar panels and wind turbines, at competitive prices, would
also serve both Make in India initiative.
International Solar Alliance can significantly augment the development, deployment and generation of
solar technologies and power. It has several shared focus areas with current domestic initiatives like
facilitate capacity building for promotion and absorption of solar technologies and R&D among member
countries.

3.11. UNIFIED PAYMENT INTERFACE (UPI) PROJECT

The National Payments Corporation of India (NPCI) and software product think-tank ISpirt are ready for
the technical launch of a new Unified Payment Interface, that would allow people to people or P2P
transactions from any bank account to another, using a mobile phone app.
This inter-operable mobile payments system would revolutionize the way P2P payments are made.
Eventually the system would allow mobile to mobile payments (without any bank accounts involved) and
payments to an Aadhaar number or a virtual address if people are not comfortable sharing their bank
account details.
The UPI is a new layer on top of the IMPS (Immediate Payment Service) that has been used by banks for
electronic fund transfers for about five years. This will allow seamless, inter-bank connection using a
mobile app that can be used to pay merchants as well as make other proximity payments on an offline
basis.
There is a very simple API that would provide for both push and pull payments. So I can send money to
you or you can send me a request to pay, as merchants may do if I buy something from them. I can
approve the request on my phone.

Background:

Reserve Bank of India governor initiated the Unified Payment Interface (UPI) project last February.
Over the past year, the application program interface (API) has been developed that allows payments
from any bank account to another.

Advantages:

34

This is a big leap from the old system for credentials, where you give your card to the merchant and
there is a security risk. In this model, everything happens through your own phone, your credentials are
established and payment is approved.
Many new phones come with biometric iris or fingerprint scanners so Aadhaar authentication is possible
on these devices.
It is critical for Indias digital independence.
The entry of 21 new banks and the surge in smart phones and bank accounts offers the potential to build
all sorts of apps.
The UPI could do to P2P transactions what direct benefits transfer has done for government to people
transactions.

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3.12. BENEFITS OF COMMODITY FUTURES MARKET TO FARMERS


Why in news?
The issue was discussed in 14th Commodity Futures Market Summit, 2016, organised by ASSOCHAM.
Benefits of Commodity futures market:

A Well-developed commodity futures market is essential to ensure farmers' welfare as they lack bargaining
strength and possess limited awareness about market conditions
It will help to predict their earnings and plan their future investments.
These markets reduce the range of seasonal price variations.
They tend to protect the farmers from post-harvest slump in prices.

Why Participation of Indian framer is bleak in future market?

Due to lack of expertise in hedging price risk.


Do not have enough marketable surplus and enough cash to meet margin requirements.
Inefficient physical operations, excessive crowding of intermediaries, long and fragmented market chains
and low-scale have deprived farmers of fair price for their produce.

Government Initiatives:

Government has given funds to about 214 markets from eight states that have come up with a proposal
to join the online trading platform National Agriculture Market (NAM).
Proposal of single e-trading platform and computerize the markets is on the way
Government is trying to expand existing markets and will facilitate transactions where physically
markets currently do not exist
Formulation of an interactive farmer portal to provide information to the farmers to resolve any query.

Way Forward:

There is need of industrys co-operation and active engagement


A complete involvement and collaboration all players is desirable.

3.13. MERGER OF NSEL WITH FTIL


Why in news?

Ministry of Corporate Affairs under Section 396 of the Companies Act,


1956 ordered merger of Financial Technologies (India) Ltd (FTIL) and
National Stock exchange (NSEL).
This is the first time a subsidiary company is being forcibly merged
with its parent company in India.

Argument in favour of Merger:

35

This is expected to help pay more than 13,000 investors who lost
money in 2013 NSEL scam.
FTIL owns approx. 99.99 percent share of NSEL and the concept of
limited liability has been used to circumvent the liability
Money raised by NSEL has been largely used by FTIL. So, FTIL cannot
shed its responsibility.

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Arguments against:

This goes against the concept of limited liability as FTIL is a limited liability company.
It puts interest of trading clients much higher than the interests of shareholders of FTIL.
This order sets a very dangerous precedent.

Analysis:

The Companies Act, 1956 empowers the government to order merger if such merger is essential in the
public interest.
The government has cited public interest and said that most of the money raised by NSEL was used by
FTIL and thus both constituted a single entity.
On the one hand there was interest of more than 13000 investors at stake while on the other hand the
interests of employees and shareholders of FTIL were on stake.
Moreover, the principle of limited liability seems to be broken here. And, this order is being seen by
corporates as on the lines of Vodafone GAAR issue.
Nonetheless, the illegal trading especially when a large number of small investors are involved, should
not go unpunished else the confidence of investors in Indias marker will start to dwindle.

3.14. ELECTRONIC DEVELOPMENT FUND (EDF)


About the fund:

Launched by Ministry of Communication and IT to support early-stage, angel, venture and private equity
funds focusing on electronics, nano-electronics and information technology.
An initial corpus of Rs. 2,200 crore, (to be scaled up to Rs. 10,000 crore)
Aimed at creating an ecosystem of innovation, research and development (R&D) and with active
industry involvement.
To be a fund of funds, with Canbank Venture Capital Funds as active management firm, which will in
turn seed professionally managed venture funds.
The EDF will put in 20% of the capital in daughter funds and the rest 80% will be invested by VCs. The
daughter funds will then invest in companies, primarily start-ups.

Need for EDF:

The demand for electronics products in India will increase to $400 billion by the year 2020 while
production is expected to reach $104 billion only by that time.
India will be importing more electronics than crude oil leading to huge CAD.
India has huge domestic market and a vast pool of technical resources, as well as skilled and semi-skilled
labour.
India is ideally placed to become a global electronics manufacturing hub, offering opportunities of scale
manufacturing.

Issues:

36

Fund will not help much to the existing players including bulk of SME category as the fund is designed to
focus on innovation and R&D.
Very high competition and low returns in electronic sector leads to finding little support from
conventional banking system.
Capital cost is high putting Indian manufacturers at a considerable disadvantage vis--vis China.
Venture funds prefer the equity route, while the demand from the sector is more for debt funding for
investment and working capital, which the fund may not be able to address.

www.visionias.in

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Way Forward:

Efforts must be made to develop intellectual property that resides in India.


Presently, key IPs in the sector remains in the hands of a few developed countries.
Breaking this cycle requires a multifarious effort and so the EDF scheme must be augmented by efforts in
other areas.
For example- structural issues, ranging from infrastructure to education and skill development, also need
to be addressed simultaneously to fully achieve the vision of India transform into a global digital
economy powerhouse.

3.15. INTERNATIONAL INTELLECTUAL PROPERTY INDEX AND INDIA

Global Intellectual Property Center (GIPC) of US Chamber of Commerce placed India at 37 out of 38
countries in International Intellectual Property (IP) Index in a report.
These 38 economies account for the 85 percent of global GDP.
India remains at the bottom for fourth year in a
row.
The index is based on 30 criteria including patent,
copyright
and
trademark
protections,
enforcement, and engagement in international
treaties.

Major Weakness Areas of Indias IP regime:

Use of compulsory licensing (CL) for commercial


and non-emergency situations.
Poor application and enforcement of civil
remedies and criminal penalties.
Suspension of implementation of Final Guidelines
for Computer Related Inventions (CRI).

Way Forward:
The government is finalizing a National Intellectual Property policy to improve the IP regime, increase IP
awareness and strengthen enforcement of rules.

3.16. IPR POLICY

37

The new IPR policy to be unveiled will be completely compliant with the World Trade Organisations
agreement on Trade Related aspects of IPRs (TRIPS).
The policy will have a special thrust on
o Awareness generation at school/college level,
o Effective enforcement of IPRs and
o Encouragement of IP commercialisation through various incentives
The policy will retain the provisions on Compulsory Licencing (CL) (in the National Manufacturing Policy
and Section 84 of India's Patents Act) as well as Section 3(d) of India's Patents Act (preventing evergreening of drug patents) in spite of the EU and US objections terming CL as inconsistent with WTOs
TRIPS agreement.
According to Section 3(d), besides novelty and inventive step, improvement in therapeutic efficacy is a
must for grant of patents when it comes to incremental inventions.

www.visionias.in

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The policy will also suggest incentives such as tax benefits and fee waivers to encourage R&D and IP
creation to strengthen the Make In India/Start-up/Digital India initiatives.
To protect 'small inventions' developed especially in the informal / unorganised sectors, policy will
promote utility patents (with lower compliance burden and shorter period of protection, when
compared to the normal patents) only for mechanical innovations.

3.17. COMPULSORY LICENSING


Why in News?
The proposed India-EU FTA would include provisions on IPR protection of which compulsory licensing is an
important aspect.
EUS apprehensions:

It may risk affecting the flow of capital and technology from


overseas.
It can act as a deterrent for investments, from abroad and
within India.
The conditions for granting a compulsory licensing in India is
ambiguous, especially the usage of the term worked in India
in the National Manufacturing Policy.
Beside that USA also sought clarity from India regarding the
compulsory licensing decision-making.

Indias Stand:

What Is Compulsory Licensing


CL is the grant of permission by
the government to entities to use,
manufacture, import or sell a
patented invention without the
patent-owners consent.
CL is permitted under the WTOs
TRIPS (IPR) Agreement provided
conditions such as national
emergencies, other circumstances
of extreme urgency and anticompetitive practices are fulfilled.
So far, India has issued only one
CL for an anti-cancer medicine
Nexavar.

On Term worked in India: There is no ambiguity about the


term patent being worked in India, which means local
manufacturing.
On Technology Transfer: It is one of the pre-requisites for transforming India into a manufacturing hub.
On Access of Technology: In case the patent owner is not interested in working the patent in India or
producing commercially in India, is to grant a compulsory licensing to any Indian company which is
willing to do so.
Permitting compulsory licensing does not mean confiscating the patented technology but effecting
technology transfer by paying the patent holders reasonable royalties.

3.18. OPEN RESOURCE LICENSING


Why in news?

Due to Government policy of favoring open source software across all Central departments.
Open source software are those software which can be freely used, modified, and shared.

Advantages of open source software:

38

Entail substantial savings on the Centres software expenses as most open source alternatives are free.
Increase interoperability and highly customizable.
Help in developing local capacity/ industry.
Reduce piracy/copyright infringements.
Promote growth of knowledge-based society.
Average spend on cyber security of closed software is about 2 to 3 per cent of the total IT spending.
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Why open source resources are more secure:

In open source users have access to the algorithm that makes it work.
No one has access to the encryption key or the set of numbers that act as a password.
Without that password it is impossible to hack into these.

Challenges:
They need to be backed by a strong technical expertise as the source code is open and vulnerabilities
could be targeted.
There are Concerns pertaining to security and operational efficiency.
Unlike closed or commercial software, open source requires a certain ecosystem to work smoothly.
No serious policy backing until recent.
Way forward:
The question about the efficiency of open source software is largely a perception.
The government is banking on BOSS (Bharat Operating System Solutions) in vernacular language
Adoption of new policy will promote innovation by encouraging collaborative development to develop
better products in less time.
Similar Questions - UPSC Mains 2015
1. Indias Traditional Knowledge Digital Library (TKDL) which has a database containing formatted
information on more than 2 million medicinal formulations is proving a powerful weapon in countrys
fight against erroneous patents. Discuss the pro and cons of making the database available publicly
available under open source licensing.
2. Discuss the advantages and security implications of cloud hosting of servers vis-a-vis in-house machinebased hosting for government businesses

39

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4. SOCIAL ISSUES
4.1. NATIONAL DEWORMING INITIATIVE
The Ministry of Health & Family Welfare launched the National Deworming initiative.
Objective:

Aims to protect more than 24 crore children in the ages of 1-19 years from intestinal worms. After
getting the Polio-free status, India now wants to target intestinal parasitic worms among the children
to achieve status of being Worm-free.
In the first phase about 14 crore children across eleven States/UT of Assam, Bihar, Chhattisgarh, Dadra &
Nagar Haveli, Haryana, Karnataka, Maharashtra, MP, Rajasthan, Tamil Nadu and Tripura will be covered;
while nearly 10 crore will be targeted in the second phase.
Albendazole tablets will be given to all targeted children; half tablet to 1-2 years children and one full
tablet for 2-19 years.
Initiative will be coupled with improved sanitation, hygiene, and availability of safe drinking water for
reducing worm load.
The deworming initiative would help to achieve the aim of Swachh Bharat.

What is deworming?

It is administering an antihelmintic drug to a human or animal to rid them of parasites, such as


roundworm, hookworms, flukes and tapeworm.
Mass deworming campaigns of school children have been used both as a preventive as well as a
treatment method for helminthiasis, which includes soil-transmitted helminthiasis in children.

4.2. NATIONAL FRAMEWORK FOR ELIMINATION OF MALARIA

The Ministry of Health and Family Welfare launched the National Framework for Malaria Elimination
(NFME) 2016-2030, which outlines Indias strategy for elimination of the disease by 2030.
NFME document clearly defines goals, objectives, strategies, targets and timelines and will serve as a
roadmap for advocating and planning malaria elimination in the country in a phased manner.

Objectives:

Eliminate malaria from all low (Category 1) and moderate (Category 2) endemic states/UTs (26) by 2022
Reduce incidence of malaria to less than 1 case per 1000 population in all States/UTs and the districts
and malaria elimination in 31 states/UTs by 2024
Interrupt indigenous transmission of malaria in all States/ UTs (Category 3) by 2027
Prevent re-establishment of local transmission of malaria in areas where it has been eliminated and to
maintain malaria-free status of the country by 2030

Strategic Approaches:

40

Programme phasing considering the varying malaria endemicity in the country


Classification of States/UTs based on API as primary criterion (Category 0: Prevention of re- introduction
phase; Category 1: Elimination phase; Category 2: Pre-elimination phase; Category 3: Intensified control
phase)
District as the unit of planning and implementation
Focus on high endemic areas; and special strategy for P. vivax elimination

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Benefits:

Eliminating Malaria will result in cutting down on expenditure on diseases control programme, and help
in reducing out-of-pocket expenditure.

4.3. ECONOMIC EMPOWERMENT OF WOMEN


Why in News?

Recently, a woman police officer was denied


selection as Deputy Superintendent of Police
on the ground that she was over age.
But later Supreme Court directed the
Chhattisgarh government to appoint her in
the senior rank after agreeing with her view
that there was a 10-year relaxation in age
limit for women candidates under the service
rules.

Need of Economic Empowerment of Women:

Few facts
1. Based on studies, when more women work, economies
grow. If womens paid employment rates were raised to
the same level as mens, the USA gross domestic product
would be an estimated 9 per cent higher, the Euro zones
would climb by 13 per cent.
2. An analysis of Fortune 500 companies found that those
with the greatest representation of women in
management positions delivered a total return to
shareholders that was 34 per cent higher than for
companies with the lowest representation.
3. If women had the same access as men to productive
assets, agricultural output in 34 developing countries
would rise by an estimated average of up to 4 per cent.
This could reduce the number of undernourished people
in those countries by as much as 17 per cent.

Supreme Court observed that economic


development and womens empowerment
had a symbiotic relationship.
Womens economic empowerment is a prerequisite for sustainable development, pro-poor growth and
the achievement of all the MDGs.
At the same time it is about rights and equitable societies.
Because of gender discrimination women end up in insecure, low-wage jobs, and constitute a small
minority of those in senior positions.
It curtails access to economic assets such as land and loans.
It limits participation in shaping economic and social policies.

4.4. RACIAL INTOLERANCE


Why in news?
A Tanzanian girl and her friends were attacked and their car was torched
by an angry mob in Bangalore. The group of students were driving by an
accident site where a Sudanese student's car ran over a local woman killing
her.
Issues:

41

A weak and insensitive political response and police action has led
to the growth of such incidents.
In 2014 there was an exodus of people of the north-east from the
city after incidents of attacks and intimidation.
Racial attacks negatively impacts India and Bangalore as a
destination of business and education.
Such incidents would create hurdles in making strong relationships
with Africa where it positions itself as a competitor of China.
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Way forward:

Police should be sensitized and should be prepared to prevent further such attacks.
A responsive police and legal apparatus are crucial for securing the rights of minorities, whether women,
Dalits, citizens from the Northeast or visitors from Africa.
Confidence building measures should be taken to assure African students about their security and well
being in India.

4.5. SEX DETERMINATION OF FOETUS


Why in News?

The Union Minister for Women and Child Development recently suggested that child sex determination
during pregnancy be made compulsory and the gender of the child be registered right from that
moment. In this way the birth can be tracked.
This twin strategy of tracking sex-determined foetuses and requiring institutional deliveries is expected
to ensure that female babies are not aborted, or killed at birth.

Present Scenario:

Currently Indias strategy to combat declining sex ratios hinges on the PCPNDT Act (the Pre-Conception
and Pre-Natal Diagnostic Techniques Act, 1994)
PCPNDT Act prohibits ultrasonography for the purpose of determining the sex of the foetus.
India is among the countries with the worst child sex ratio in the world. The 2011 Census showed that
the child sex ratio has dipped from 927 girls in 2001 to 919 girls in 2011.

Ministers Proposal - Reversal of strategy:

Present law of punishing the ultrasound technician in case of sex determination is too difficult to
implement. Hence, the intended purpose of law to protect sex selection and improve sex ratio is not
being met.
As soon as women get pregnant, sex of the foetus should be determined and placed in public records.
The pregnancies should be tracked and delivery of child should be ensured through the tracking system.
Ensure that deliveries happen only in institutions and not at home.
Since the gender is already known, and given the law, families would be compelled to go through with
the pregnancy especially when the foetus is female.
There exist several issues with the effective implementation of PCPNDT Act. A study conducted by the
Public Health Foundation of India in 2010 found many issues like:
o Low rate of complaints and convictions
o Non-involvement of NGOs and local organizations in surveys and inspections.
o Rigorous complaint process
o Lack of awareness

Issues with proposed strategies:

42

Technological fix suggested by the minister ignores the social realities and patriarchal mindset of society.
Recording the status of the foetus involves the risk of exposing women to undue psychological and social
pressure to abort female fetuses
Any intrusion by the state into a womans personal-biological space is unwelcome.
Also, this would directly interfere with the right of a woman to abort, if she doesn't want to have a baby,
for whatever reasons.
The problem of female foeticide is a result of strong socio-cultural and religious biases that have shaped
societal attitudes in favour of the son.

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Way Forward:

The point that such measures are being proposed along with the dismal figures is an indication of Indias
persisting inability to address the problem of female foeticide, and the continuum of social ills that this
practice reflects.
There is a need to strengthen the PCPNDT Act and also work towards changing the attitude of the
people towards the girl child. There needs to be more involvement of local ASHA, Anganwadi workers.

4.6. SURROGACY
Why in News?

The Bombay High Court on Monday directed the Central Railway (CR) to grant three months maternity
leave to its employee who became a mother by using a surrogate.
The court ruled that a mother enjoys the same benefits of maternity leave as any other working woman
under the Child Adoption Leave and Rules.
While challenging the CR for disallowing her leave, the womans lawyers argued that if the maternity
leave was refused, it would certainly violate the right of a child to develop a bond with the mother.

Background:

PIL was filed in Supreme Court last year claiming that commercial surrogacy business in India exploits
women from poor and middle class, especially by foreign couples.
In this connection, in October 2015, the court expressed concern over trading of human embryos and
suggested that the government should consider banning commercial surrogacy. It framed 14 queries for
the government to answer
The government told the Supreme Court that it does not support commercial surrogacy in order to
protect the rights of surrogate mothers.
In an affidavit, the government said altruistic surrogacy to needy, infertile married Indian couples will
be allowed after thorough checks are done on the couples.
New guidelines issued by the department of health research (DHR), restricted the import of human
embryos to research purposes. This means foreigners can no longer avail of surrogacy services in India.
These provisions will be part of The Assisted Reproductive Techniques (Regulation) Bill, 2014, which is
currently circulating among the States for comments.

Surrogacy in India: Current scenario:

43

Commercial surrogacy has been legal in India since 2002.


At global level, India is a sought after destination in surrogacy-related fertility tourism, also referred as
reproductive tourism.
Surrogacy in India is relatively low cost and the legal environment is favorable.
At present the Surrogacy Contract between the parties and the Assisted Reproductive Technique (ART)
Clinics guidelines are the guiding force.
In 2008, the Supreme Court of India in the Manji's case (Japanese Baby) had held that commercial
surrogacy is permitted in India with a direction to the Legislature to pass an appropriate Law governing
Surrogacy.
Giving due regard to the apex court directions, the Legislature has enacted ART BILL, 2008 which is still
pending.
Exploitation of the women and commodification of children through surrogacy are major worrying
factor, which the law has to address.

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Exploitation in absence of law:

In the absence of comprehensive laws to prevent exploitation, there have been instances where
surrogates have died as a result of complications during pregnancy and the unavailability of good postnatal care.
Contracts between surrogate mothers, who are often poor, and the intended parents are sometimes
structured in a manner that the former assumes all medical, financial and psychological risks, absolving
the latter of liability.
Multiple embryos being implanted in the surrogates womb to ensure a higher chance of success.
There are cases of babies born with disabilities or an unplanned twin being abandoned by the intended
parents.

Law Commission Report on Surrogacy:

The Law Commission of India has submitted the Report on NEED FOR LEGISLATION TO REGULATE
ASSISTED REPRODUCTIVE TECHNOLOGY CLINICS AS WELL AS RIGHTS AND OBLIGATIONS OF PARTIES TO
A SURROGACY.
The Commission has strongly recommended against Commercial Surrogacy.
One of the intended parents should be a donor as well, because the bond of love and affection with a
child primarily emanates from biological relationship.
Legislation itself should recognize a surrogate child to be the legitimate child of the commissioning
parent(s) without there being any need for adoption or even declaration of guardian.
Right to privacy of donor as well as surrogate mother should be protected.
Sex-selective surrogacy should be prohibited.
Cases of abortions should be governed by the Medical Termination of Pregnancy Act 1971 only.
Way forward:
A complete ban on surrogacy is a welcome step. Surrogacy is a disguised word for child buying and regulation
cannot help to protect the rights of women. The ecosystem that feeds on womens poverty needs to end and
along with this the government should also take steps to mitigate poverty.

4.7. DEVDASI SYSTEM


Why in news?

The apex court started hearing on the Devadasi issue when apprised of how Dalit girls were dedicated as
Devadasis in Uttangi Mala Durga Temple in Davanagere district of Karnataka.
SC directed all States and Union Territories, especially Karnataka, Maharashtra, Andhra Pradesh, to
strictly enforce the Central law to check undesired and unhealthy practice of forcing young girls to
serve as Devadasis.

Who are Devadasis?

'Devadasis' are women dedicated to temple services for the rest of their lives and many of them are
often victims of sexual abuse.

Prevalent Issues:

44

Devadasi system is against women empowerment and against the equality granted to women under
constitution.
Devadasis are even subjected to sexual exploitation and pushed into prostitution.
Devadasi system still exists even after the laws have been passed to ban it due to:
o lack luster approach of the state police to implement the law
o Poor utilization of funds allotted for the rehabilitation of girls pushed into the devadasi system
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Relevant Laws to prevent Devadasi system:

State-level legislation such as the Karnataka Devadasis Prohibition of Dedication Act, 1982, and
Maharashtra Devadasis Abolition Act, 2006, had completely abolished such practices.
Section 372 of the IPC, which prohibits selling minors for purposes of prostitution
Immoral Traffic (Prevention) Act, 1956 makes prostitution an offence in or in vicinity of public places.

4.8. DAUGHTER AS INHERITOR


The Delhi High Court in a recent judgement announced that the eldest daughter can be the karta of the Hindu
Undivided Family property.
Background:

Karta under the Hindu Succession Act is the coparceners or eldest of those entitled to inherit the
property of a Hindu Undivided family (HUF).
The Karta has the right to manage the property and business of the HUF even without the consent of the
rest of the family.
The HUF is different from joint family as its purely for revenue assessment of ancestral property.
It is one where property hasnt been partitioned between sons and daughters and does not include inlaws.
The HUF applies to all Hindus and all persons who is not a Muslim, Christian, Paris or Jew. It thus includes
Buddhists, Sikhs and Jains also.
After the 2005 amendment to Hindu Succession Act, all members born into the family including
daughters have equal rights to property.
Recent judgement announced that elder daughters can be karta while the other sides argument was
that daughters can only have a share in the property and not any right to manage it.
Court also extended role of karta to married daughters.
The Hindu Undivided Family does not make distinction between married and unmarried women and
gives equal rights of inheritance to Hindu males and females.
The challenge is that very few women actually practice in the management of business and property.
Each beneficiary would have to fulfill mandatory conditions like submitting marriage certificates, income
certificates to avail the benefits of the scheme.
It will also provide nutritional food to infants till the age of seven.

4.9. SHANI-SHIGNAPUR TEMPLE ENTRY


Recently a group of women called the Bhumata Rangaragini Brigade tried to break the 400 year old tradition of
the Shani Shignapur Temple barring women from entering its inner sanctum.
Background:

45

Over 500 women who tried to enter the temple faced heavy opposition and were detained by the police.
A similar incident in Kerala where women of a certain age group were barred from entering Shabarimala
Temple.
SC asked in the Sabarimala case, if spirituality is the exclusive domain of men.
Muslim women demand right to enter Haji Ali Dargah in Mumbai.

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Significance:

Law vs Religion:
o The ban violates the principle of equality guaranteed by the Constitution while Customary Right
allows respect of religious traditions and customs.
o While the Constitution protects religious freedom, clause 2(b) of Article 25 allows the state to
intervene in religious practice.
Faith vs Rationality: Validity of a God that is easily threatened by presence of women.
Women becoming increasingly aware of progressive promises in Constitution and regressive practices in
reality. Entering temples is symbolic of larger discrimination against women.
Temple entry movements have historically been used to challenge power hierarchies eg. for Dalits.
Regressive attitudes deep rooted in religion cannot be changed by force and have to be changed through
slow grass root level work.

4.10. JAT PROTESTS


Why in News?

Like Gujjars in Rajasthan, the Kapus in Andhra Pradesh and Patels in Gujarat, Jats in Haryana are also
protesting to include them in OBC category so that they can enjoy the benefits of quota system.

Background:

Previous government at center issued a notification in March 2014, to grant a special quota for Jats over
and beyond the 27 per cent reservation for OBCs in jobs and higher education.
Later Supreme Court quashed the governments decision to include Jats in OBC list and voiced its
concern on the perception of the self-proclaimed socially backward class.

Reasons of Jat protests:

Despite higher economic and social standing of Jats, there has been a reduction in landholding owing to
distribution over generations.
A squeezing of rural incomes due to the persisting sluggishness in the agrarian economy has affected the
economic capacity of the Jat community.
Demand for reservations is also a consequence of the relative success of the reservation programme.
Jats representation in government jobs has been limited to army or lower jobs in police forces. They
have very less representation is government sector jobs.

Way Forward:

There is certainly the need to review the list of castes counted as OBCs and to deepen the definition of
creamy layer.
Inclusion or removal of any community in the reservation category should be on the basis of objective
study of socio-economic status of various communities.

4.11. HIGHER EDUCATION SYSTEM IN INDIA


Why in News?
The recent suicide by three female students of a private medical college in Tamil Nadu leaving behind a note
blaming their college for excessive fees, no proper classes or teachers and there being "nothing to learn"
highlights the serious maladies afflicting private education in India.
46

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Present Scenario of Higher Education Sector in India:

The Indian higher education system in particular is already the third largest in the world.
Private institutions account for almost two-thirds of the higher education in India (according to a 2011
report by Ernst and Young and Federation of Indian Chambers of Commerce and Industry).
Demand will grow due to the combined effect of rapidly rising incomes and demographic pressure.
At both school and college levels, the state of private higher education is critical as state-run
establishments will struggle to address this demand alone.

Issues with Private Education System in India:

Low operational autonomy - Private universities and deemed universities currently have no power to
affiliate colleges, fix salaries of their faculty or even include courses in their colleges.
Rigid control of state universities on private institutions. The control of these universities, in turn, lies in
the hands of the University Grants Commission (UGC), the professional councils and the government.
Restrictions also exist on entry of foreign universities, foreign faculty and foreign collaboration.
Conditional FDI: Though 100% foreign direct investment (FDI) is allowed in the education sector, the
provision comes with riders. Eg - Not-for-profit principle
Lack of quality There has been proliferation of engineering and medical colleges in urban centres
which do not match the required standards

Steps that should be taken to encourage Private Educational Institution:

More Operational Autonomy - Simplifying regulation by moving away from input-based norms that
stifle operational autonomy
Supporting Legislative Framework - Creating enabling legislation at the state level to encourage setting
up of private institutions
Financial support to students - Moving to student-side funding to provide a level playing field between
public and private institutions
Regulatory Framework for Quality Regulatory framework to encourage setting up of for-profit
institutions that ensures quality and transparency.

Way forward:

The regulation of private schools and colleges should be minimal but transparent, with vigilance to
ensure that the regulatory process is not corrupt.
The public school system will need to be vastly expanded, with more local control of teacher choice and
accountability, in tandem with the option of school vouchers being explored where feasible.
Above all, a wide vocational training system with minimal entry qualifications and close links to the
private sector must be created.

Some issues plaguing the performance of Higher education system

47

Lack of research - The amount of funding that is currently available for research in Indian universities is
meager by global standards.
Lack of good quality faculty - there is need to attract and retain faculty with good research skills.
Low Administrative Capability of Educational Institutions - there are no comprehensive training
programmes for academic administrators who deal with different nuances of higher education system.
Lack of Interdisciplinary focus - Considering the fact that most of our societal problems cannot be solved
by experts from a single academic discipline, there is a need for better coordination and synergy
between experts from different academic disciplines.

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4.12. LEADING CAUSES OF DEATH IN INDIA


The office of the Census Commissioner served a warning on
Monday: Lifestyle diseases have emerged as the biggest cause of
deaths in India.
Finding of the Report:

New data reveals that one in two deaths in the country,


estimated in the period 2010-13, are due to noncommunicable diseases (NCDs). NCDs accounted for 45.4%
of deaths in 2004-06, the figure rising to 49.21% in 2010-13.
Rural-Urban Difference - In rural areas, deaths due to
NCDs were 46.9%, much lower than urban areas where
their contribution is 57%.
Cardiovascular diseases are the biggest killers within NCDs.
They account for 23.3% of all deaths. This has increased
from 19.9% in 2004-05.
Premature births and low birth weight have emerged as the
main reasons for deaths of children below the age of 29
days, the new data revealed.
The top 10 causes of deaths in India have remained the
same since 2004-06, with a slight change in order.
Cardiovascular diseases are followed by ill-defined causes, respiratory diseases, malignant and other
neoplasms (cancers), and perinatal conditions (complications related to pregnancy)
Lower death due to communicable diseases - In 2004-06, 36.7% of deaths occurred due to
communicable diseases and lack of nutrition. This went down to 27.74% in 2010-13.

4.13. NATION AND NATIONALISM


Why in News?

The recent JNU controversy has brought the debate on Nationalism to the forefront.
The row revolves around anti-India sloganeering by some JNU students in an event organised to
commemorate the hanging of Afzal Guru, a convicted terrorist, within the campus.

What is Nation and Nationalism?

The concept of Nation-state and Nationalism are a relatively modern phenomena that can be traced
back to the Treaty of Westphalia of the 17th century Europe.
History shows Nation-state is not a natural entity but is an artificial construction to recognize sovereignty
of nation-states.
While nation is a mental construct reflected in a sense of belonging, state is a political construct with
four elements; territory, population, government and sovereignty.
There can one nation and two states like Korea, or one state and two nations like Sri Lanka, one state
and one nation like Japan or one state and many nations like India.

Significance of Nationalism:

48

Nationalism in good measures has been the motivating factor of most anti-colonial struggles across the
world, like India.
It acts as the binding agent for different diverse cultures and groups strengthening the nation.
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Challenges of Nationalism:

Nationalism tends to easily take an extreme form and has been the reason behind the most devastating
wars in the modern world, and tragedies like the Jewish Holocaust, genocide in Chechnya or Rwanda
It creates artificial lines of differences within the human race due to an inherent othering that is part
of the definition of a nation state.

Way Forward:

While important to understand the pragmatic need for nation-states and a healthy amount of
nationalism, humanism should be the end goal.
Secessionist demands must be addressed by trying to understand the roots of the core grievances and
dealing humanely.

4.14. TRADITIONAL MEDICINE


Why in news?
The Union Cabinet has given its approval to the Agreement for collaborative activities to be signed in the area of
Traditional Medicine between Ministry of AYUSH and the World Health Organization.
How would it help?

49

The long-term collaboration with WHO would help in improving International acceptability and branding of
AYUSH system.
It will facilitate awareness generation regarding AYUSH systems of Medicine by means of education
It will help in skill development and capacity building through workshops and exchange programs
It will facilitate advocacy and dissemination of information on AYUSH amongst the Member States.
It will lead to collaboration with third Parties for creating synergies in implementation of WHO Traditional
Medicine Strategy 2014-2023 particularly in the context of AYUSH systems.

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5. SCIENCE AND TECHNOLOGY


5.1. GRAVITATIONAL WAVES
Why in news?

Gravitational waves have been discovered by the U.S.-based LIGO (Laser Interferometer Gravitational Wave
Observatory).
The Advanced LIGO laboratories in the US states of Washington and Louisiana have traced the warping of
space from the merger of two black holes about 1.3 billion light-years from Earth.
India is an important partner in the LIGO project
and the announcement was simultaneously made at
the Inter-University Centre for Astronomy and
Astrophysics (IUCAA) in Pune.

What are gravitational waves?

Gravitational waves are distortions or 'ripples' in the


fabric of space-time caused by some of the most
violent and energetic processes in the Universe.
Albert Einstein predicted the existence of
gravitational waves in 1916 in his general theory of
relativity.
The effect is very weak, however, and only the
biggest masses, moving under the greatest
accelerations, are expected to warp their
surroundings to any appreciable degree. Put in this
category the explosion of giant stars, the collision of
ultra-dense dead ones, and the coming together of
black holes. All these events should radiate
gravitational energy at the speed of light.
Gravitational waves have never been detected
before, though indirect evidence of these waves
have been found and resulted in a Nobel Prize in
1993.

How it is detected in the lab?

The basic principle for detection is interference when two waves combine, they produce a pattern based
on relative positions of peaks and troughs in those waves.
In LIGO, a high powered laser beam is split and sent down two L-shaped vacuum tunnels, each 4 Km. long.
They get reflected from two high precision mirrors and reach back at the base. They come back in such a way
that they completely cancel out each other. No light is detected at the photo-detector.
But when a gravity wave passes-by, it distorts space and changes the distance that the beams have to travel.
No longer are the peaks and troughs of the two reflected waves perfectly aligned. As they do not cancel out
each other now, some pattern is detected at the photo-detector.

Gravitational wave detector in India: INDIGO

50

India-LIGO project will be a replica of the two LIGO detectors and would be stationed at a perpendicular
direction to the detectors in USA.
LIGO-India project is piloted by Department of Atomic Energy (DAE) and Department of Science and
Technology (DST).
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The LIGO-India project will be jointly coordinated and executed by three Indian research institutions: the
Inter-University Centre for Astronomy and Astrophysics (IUCAA), Pune and Department of Atomic Energy
organisations: Institute for Plasma Research (IPR), Gandhinagar and the Raja Ramanna Centre for Advanced
Technology (RRCAT), Indore.
It will enrich technological areas like precision metrology, photonics and control systems.
But most importantly, it will inspire coming generations of young Indians to engage in international scientific
research within the country.

Challenges:

Current estimates suggest the project would cost at least Rs. 1,200 crore.
Many scientists familiar with the project believe that such a project is at least eight years away.
Another ambitious mega-science project, the Indian Neutrino Observatory (INO) has been stalled for over a
year due to protests by activist groups, concerned over its environmental impact.

5.2. CUBSATS
Why in news?
Scientists have designed at least two new methods of maneuverability of miniature satellites (Cubsats) in outer
space orbits.
What is a cubesat?

CubeSats are tiny satellites, usually no more than about 4


inches on each side that can conduct space research using
readily available, off the shelf hardware plus one of a
variety of propulsion devices.
So far CubeSats reach low-earth-orbit (LEO) only.
CubeSats are most commonly put in orbit by
as secondary payloads on a launch vehicle.

Recent CubeSat
Last year the worlds first phonesat went
into orbit. It was a Google Nexus One
smartphone incorporated into a three-unit
CubeSat called STRaND-1. The idea was to
test the components of the smartphone in a
space environment. The phone was loaded
with a number of experimental apps for such
things as taking photographs and recording
magnetic fields during orbit.

Why Cubesats are emerging so fast?


Smartphones and other consumer electronics provide a wealth of ready-made technologies that can enable a
CubeSat to perform many of the functions of a satellite.
Other advantages:

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A nanosat of CubeSat dimensions might cost $150,000-1m, rather than $200m-1 billion for a full-sized
one.
Ease of construction and less time required to build.
Once their orbits decay and they burn up on re-entering the atmosphere.
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Because of their size, multiple CubeSats can be launched as secondary payloads along with a large,
primary spacecraft. This makes them ideal platforms for high-risk, experimental payloads and technology
demonstration missions.

Propulsion in Cubsats?
A CubeSat cannot carry conventional rocket fuel because of safety issues, therefore scientists have developed
two methods of maneuverability. These are:
1. Using ion drives: An ion drive accelerates charged particles derived from a liquid propellant to very high
speeds. This creates thrust more efficiently than ejecting heated vapour, but without the explosive chemical
reactions of a conventional rocket.
2. Using light: A photonic laser thruster that uses the principle that light exerts pressure when it hits
something.

5.3. PLANET X
Why in news?

Researchers at the California Institute of Technology


have found evidence in the outer solar system of an
object that could be a real ninth planet.
Nicknamed Planet Nine, it has a mass about 10 times
that of Earth and orbits about 20 times farther from the
sun than Neptune.

What is Kuiper Belt?


It is flat ring of icy bodies that revolve round
the Sun beyond the orbit of Neptune.
It is home to three officially recognized dwarf
planets: Pluto, Haumea, and Makemake.

How was the inference made?

Its presence has been inferred from the peculiar clustering of six previously known objects that orbit
beyond Neptune (Kuiper belt).
It is said that theres only a 0.007% chance, that the clustering could be a coincidence. Instead, a planet
with the mass of 10 Earths has shepherded the six objects into their strange elliptical orbits, tilted out of
the plane of the solar system.

5.5. ASTROBIOLOGY MISSION

A team of scientists from the NASA, the Mars Society


Australia and the Birbal Sahni Institute of Palaeobotany,
Lucknow, will mount an expedition to Ladakh this August.
The aim is to study the similarities of certain parts of the
regions topography and microbial life to Martian
surroundings.
This is the first time India is part of a Spaceward Bound
Programme.

Some of the factors that played a role in selection Ladakh


region were:
o

o
52

What is a Space Bound Programme?

Availability of several astrobiologically interesting


features with same region and coverable distance,
such as: cold high altitude desert soil, hot springs,
permafrosts, glaciers, saline paleo-lakes.
Low human habitation
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Spaceward bound is an educational


program developed at NASA Ames.
The objective of this programme is for
the participating scientific researchers,
educators and students to visit the
remote and extreme environments in
different parts of the world and
conduct
the
astrobiological
experiments, make observations and
learn about the origin, sustenance and
adaptation of the living organism within
such biospheres.
Previous Spacebound experiments have
been conducted in Mohave Desert,
USA, Nambian Desert, Antarctica, etc.

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o
o

High altitude environment for conducting human dexterity and performance based test.
High altitude clear skies for astronomy and astrophotography.

India offers a variety of location that could be of interest to an astrobiologist such as


1. Ladakh, Jammu &Kashmir
2. Kutch, Gujarat
3. Lonar Crater lake and Western Deccan Trap Region

5.4. SMART GRID


About the Smart Grid project:

Why in news?
The NDMC is coming up with a Rs 500-crore
"Smart Grid" project aimed at reducing losses
through better power distribution and
checking thefts and faults in transmission.

The project is a part of the smart city initiative.


The project has been divided into three phases
I.
Replacing old equipment and cables
II.
Installing smart meters in households
III.
Developing software to
improve the efficiency of
electricity distribution.
A major highlight of the NDMCs
Smart City proposal is its plan to
upgrade its electricity network into
a smart grid system.
A smart grid network will facilitate
two-way communication between
the consumers and the power
utilities.
It will bring synergy between
generation,
transmission,
distribution systems, consumers
and also renewable sources by
integrating all into one seamless
system.
An important aspect of the system is to have 100 per cent Advance Metering Infrastructure (AMI), which
will give the consumers real-time data about power consumption thereby allowing them to make
informed choices about their usage.
A basic example of how it will help the consumers is that they will be able to give commands right in
their energy meters including troubleshooting.

5.5. GENE EDITING (CRISPR/CAS9)


Why in news?
On February 1, scientists from the United Kingdom's Francis Crick
Institute got approval to start research on human embryos using a new
genome editing technology called CRISPR/Cas9.
What is Genome editing?

53

There are currently four families of


engineered nucleases being used:
1. Meganucleases.
2. Zinc finger nucleases (ZFNs).
3. Transcription
Activator-Like
Effector-based Nucleases TALENs).
4. CRISPR- Cas system.

It is a type of genetic engineering in which DNA is inserted,


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deleted or replaced in the genome of an organism using engineered nucleases, or "molecular scissors.
These nucleases or enzymes create site-specific double-strand breaks (DSBs) at desired locations.
The induced double-strand breaks are repaired through end joining or recombination, resulting in
targeted mutation.

What is CRISPR/Cas9?

It is a revolutionary gene editing


technique that scientists have
borrowed from nature.
CRISPRs
(clustered
regularly
interspaced
short
palindromic
repeats) are sections of DNA, while
CAS-9 (CRISPR-associated protein 9)
is an enzyme.
Bacteria use them to disable attacks from viruses.

How it works?

Crispr scans the genome looking for the right location and then uses the Cas9 protein as molecular
scissors to snip through the DNA.
Cas9 endonuclease - guide RNAs direct it to a particular sequence to be edited.
When Cas9 cuts the target sequence, the cell repairs the damage by replacing the original sequence with
an altered version.
Unlike other gene-editing methods, it is cheap, quick, easy, safer and more accurate to use because it
relies on RNADNA base pairing, rather than the engineering of proteins that bind particular DNA
sequences.

5.6. RAMAN EFFECT: APPLICATIONS


What is Raman Effect?
A change of wavelength exhibited by some of the radiation scattered in a
medium. The effect is specific to the molecules which cause it, and so can
be used in spectroscopic analysis.

February 28 marks the National


Science Day that celebrates
physicist C V Raman's discovery of
the Raman effect.

Some of the Applications:


Chemical Industry:
1. To study catalysts
2. To monitor chemical purity in
petro chemical industry
3. Control of polymerisation
reaction
NanoTechnology
science:

and

material

1. To study nonparticles
2. To develop microelectronics devices and novel photovoltaic cells.
Biomedical Application:
1. Invivo studies of the skin
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2. Transdermal drug transfer


3. Cancer identification
4. Bone studies
Detection of Narcotics and explosives:
1. Hand held Raman scanners to detect narcotics
2. Handhelp Raman scanners to detect explosives such as TNT, RDX, HMX

5.7. ADITYA MISSION : UPDATES

ISROs planning to add another spacecraft under


Aditya to observe the sun from a different stable
orbital position called L5.
Adding another orientation viz L1 and L5 would
provide more clarity.
Older L1 sun missions by US and Japan could not
yield much result/information.

What is L1, L5?

Lagrange point is a position in space where the


combined gravitational forces of two large bodies,
such as Earth and the sun or Earth and the moon,
equal the centrifugal force felt by a much smaller third body.
The interaction of the forces creates a point of equilibrium where a spacecraft may be parked to make
observation.
These points are named after Joseph-Louis Lagrange, an 18th-century mathematician.
There are 5 such points between the earth and the sun namely L1, L2, L3, L4 and L5.

Please refer November 2015 current affairs for Basics on Aditya

5.8. GLOBAL BIOTECHNOLOGY SUMMIT- DESTINATION INDIA


The summit is expected to prepare a joint action plan for achieving the
target of $ 100 billion for the biotechnology sector by 2020 and showcase
Indias strength in the sector.
Purpose:

The summit will be held as a run-up


to the Department of Biotechnology
(DBT)
celebrating
its
30th
Foundation Day on February 26.

Generate awareness regarding the impact life sciences and biotechnology have made on society.
Attract investors and other key partners to invest in the biotech sector in India.

Focus is on these priority themes:


Make in India,
Nurturing Bio entrepreneurship,
Skill India,
Biotech opportunities and
Action for Swachh Bharat and Swasth Bharat.
The summit involved more than 1000 participants including Nobel winner, government and other stakeholders.
It provided a platform for learning and interaction in the increasing important field of biotechnology.
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5.9. HYPNOXIA AND FROSTBITES


Why in news?

One junior commissioned officer (JCO) and nine jawans of the Armys 19 Madras battalion died after an
avalanche struck their post in Siachen.
An Indian soldier who survived being trapped under 25 feet (8 metres) of snow for six days after being
caught in an avalanche died in hospital after suffering multiple organ failure.

Consequence of High Altitude on human health:

56

Hypoxia: It is a condition in which the body or a region of the body is deprived of adequate oxygen
supply.
Frostbites: It is an injury that is caused by
exposure of parts of your body to temperatures
below freezing point. The cold causes freezing of
your skin and underlying tissues. The fingers, toes
and feet are most commonly affected but other
extremities including the nose, ears, and the
cheeks can also develop frostbite.
Hypothermia: It is a potentially dangerous drop
in body temperature, usually caused by prolonged
exposure to cold temperatures.
High-altitude pulmonary edema: It is a medical
condition in which excess fluid develops in the
lungs, either in the lung tissue itself or in the space
normally used for gas exchange.
High-altitude cerebral edema: It is a medical
condition in which the brain swells with fluid
because of the physiological effects of traveling to
a high altitude.

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6. INTERNAL SECURITY/LAW AND ORDER


6.1. DEMILITARISATION OF SIACHEN
Why in news?

The 9 soldiers of the Madras regiment trapped in ice died after an avalanche on the Siachen glacier.
A soldier named Hanumanthappa rescued but latter succumbed to his injuries.
This was not an isolated incident but part of a growing trend in that region, as global warming
dramatically affects the glacier.

The difficulties with Siachen:

846 military personnel have died at the Siachen


glacier between 1984 and 2012.
Avalanches and the challenging terrain as a whole
have been a major reason
The climatic conditions and sub-zero temperatures
lead to illnesses such as memory loss, speech
blurring, frostbites, and lung infections.
The availability of oxygen drops to a minuscule
percentage of its availability at normal heights
making acclimatisation extremely difficult.

Argument in favour of Demilitarisation:

The loss of lives and the revenue spent on occupying Siachen


Some members of strategic community suggest that Siachen does not have any strategic significance and
cannot be used to stage a military offensive
Apprehensions from Chinese intrusion
1. In case of Chinese indeed want to occupy Leh, there are easier ways of doing that than by traversing
the unfriendly Siachen terrain
2. Doing so would be a logistical nightmare and militarily unsustainable for China
Apprehension from Pakistani Intrusion
1. Once the area is demarcated, authenticated and mutually demilitarised, it would not be logistically
or legally easy for Pakistan to occupy the place
2. India should include in the agreement that any violation of the agreement will be considered a casus
belli i.e. an act or event that provokes or is used to justify war
3. There are enough sophisticated monitoring and sensing mechanisms as well as commercial satellite
imagery available today to prevent a surprise Pakistani invasion

Arguments against Demilitarisation:

57

The army as well as government has always been firm that there is no alternative to occupying Siachen.
India dominates the Siachen heights and is in a strategically advantageous position vis a vis Pakistan.
We have militarily and materially invested in the Siachen region over the years or incur lower casualties
than Pakistan
There is fear of the Chinese presence in the vicinity.
There would be difficulty in retaking the glacier should circumstances so dictate in future.
The threat emanating from the China-Pakistan nexus is a major source of concern
In the event of a future war with India, Pakistan and China could launch a joint operation against India in
the Ladakh region using Siachen vacated by the Indian Army.

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India Position:

India insists that the present ground positions on the Saltoro ridge should be demarcated and
authenticated on a map before any demilitarisation could be conducted.
Moreover, it does not want a disagreement on the posts and locations to be vacated by the Indian side.
This feeling has further strengthened after the Kargil intrusion by Pakistan.
India has therefore insisted that joint demarcation of the Actual Ground Position Line (AGPL) on the
ground as well as the map should be the first step to be followed by a joint verification agreement and
redeployment of forces to mutually agreed positions.

Pakistan Position:

India is the occupying party in Siachen and it should unconditionally withdraw and the pre-1984 status
quo should be maintained. India is in breach of the Shimla Agreement.
Pakistan has suggested that troops on both sides should withdraw to a point south of NJ 9842, to the
pre-1972 Simla Agreement positions. However, it has been reluctant to authenticate ground positions.
Pakistan has proposed that demilitarisation of the region, withdrawal of forces and authentication
proceed simultaneously.

India has 5 options:


1. To maintain the status quo.
2. Mutual withdrawal of forces without delineation and authentication but is both undesirable and unlikely
3. Mutual withdrawal from the Siachen region after delineation and authentication. It is a desirable option
for India but Pakistan is unlikely to accept that.
4. Mutual withdrawal after jointly recording current military positions and exchanging them without
prejudice to each others stated positions. This is perhaps the best option and takes on board Indias
demand, and may not meet too much resistance from Pakistan given they agreed to it in 1992.
5. Another idealistic option would be to turn the entire Siachen region into a peace park.

6.2. INDIAS DERADICALISATION STRATEGY TO COUNTER ISIS THREAT


Why in news?
Union Home Ministry had asked three States to draw up a comprehensive counter-strategy in the wake of
attempts by international terrorist outfits to propagate jihadi ideologies.
Strategies to tackle Radicalisation:

Formation of extremism counselling hotline similar to the one set up in Austria recently
It will enable parents, teachers and friends of "vulnerable and indoctrinated" youth to seek professional
help for their "deradicalization
Apart from this, the Indian security establishment is
also looking at US counter-radicalization program
focused on community outreach and UKs Prevent and
Channel programmes.

Few Steps by States:


Karnataka - There is proposal of modernising madrasas by

58

Imparting academic knowledge as well as an


understanding about what the Quran actually teaches,
An intensive survey of mosques and madrasas, creating a detailed database and
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Offering online Islamic education.

Maharastra - Strategy on deradicalisation

Envisages different departments undertaking various schemes to reach out to the minority
The Police have been told to identify and reduce any feeling of communalism within the force and
To reach out to the minority community and win their hearts at all costs.

6.3. INTERNATIONAL FLEET REVIEW (IFR) 2016


Why in News?

The Indian Navy conducted an International Fleet Review at Bay of Bengal off Visakhapatnam.
Fifty-one navies sent either their ships or delegations to the IFR.
Theme of IFR-2016 was United through ocean
Culminated with Indian and foreign ships undertaking a Passage Exercise (PASSEX) in Bay of Bengal.

What is Fleet Review?

A Naval Fleet Review is a long-standing tradition followed by navies all over the world.
The review aims at assuring the country of the Indian Navys preparedness, high morale and discipline.
It provided an opportunity to enhance mutual trust and confidence with maritime neighbours and
partners by inviting their ships to participate in the review.
The international fleet review is a reminder of Indias capabilities to help build an open, secure and
prosperous Indian Ocean

Blue water Navy vis--vis Blue Economy:

Its geographical location on major shipping routes of the Indian Ocean gives it a pivotal maritime role.
The Indian Navy plays a central role in ensuring the safety of the vital sea lines of communication across
the ocean.
Indias economic and strategic calculus acquired a maritime dimension
More than 40 per cent of Indias current GDP is linked to international trade. And most of this trade is
sea-borne.
It also recognizes the importance of assisting smaller nations in managing their exclusive economic zones
and responding to natural disasters.
A robust blue water navy acts as force multiplier in diplomacy and blue economy.

Way forward:

59

India needs a new national military strategy that takes a fresh look at the changing nature of threats and
the balance between the continental and maritime.
Our country had a credible record of cooperative initiatives to promote stability of the oceans by
realigning its maritime strategy
There is need of vigorous debate on the potential options that the navy can generate in deterring the
land-based threats from China and Pakistan.
The political and naval leaderships have to acknowledge the urgent need to cultivate special maritime
relationships with key partners amid the altering regional balance of power in the Indian Ocean
India will also have to move away from the lone-ranger mentality of the past towards developing
minilateral and multilateral mechanisms for maritime security cooperation.
The seas can be used to promote peace, cooperation and friendship as also develop partnerships for a
secure maritime future as the blue commons link one another, true to the theme of IFR United
Through Oceans.
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6.4. COUNTER-TERRORISM CONFERENCE 2016


Why in news?

The President of India inaugurated the 2nd edition of Counter-Terrorism Conference - 2016 at Jaipur
Theme of the conference was Tackling Global Terror Outfits
The conference brings together field operatives, senior officials from security agencies, policy makers,
scholars and government leaders involved in counterterrorism operations, planning and sensitization.
Organised by India Foundation, an NGO.

What was discussed?

The need to take a resolve not to justify terrorist means whatever be the reason or the source.
Important aspect of counter-terrorism strategy is capacity building to prevent attacks through
intelligence collection and collation, development of technological capabilities, raising of Special Forces
and enactment of special laws
Counter-terrorism effort has to be more pointed, more focused, more objective and more professional
Effort should be made to intensify the earlier evolved mechanisms to counter terrorism
We are a country with multilingual, multi-religious and multi-ethnic society. These conditions are actively
utilized by anti-national elements to spread terrorism.

Political management of terrorism:

Political management incorporates addressing issues of ideology and


Dealing with countries that sponsor or support terrorism

Cyberspace- an enabler of terrorism:

There is new threat posed by the 'Do it Yourself' breed of terrorists who gain information in bombmaking and suicide attacks over the internet to perpetrate terror acts
Prowling illegal information and activities in the cyberspace is acting as an "enabler" for 'Lone Wolf
attacks' across the globe.
Role of civil society in tackling terrorism:

Civil society is both the frontier and the battleground that has to be protected and saved.
Fragmentation of civil society leads to radicalization, rather than its consolidation, which thereafter leads
to competitive violence.
Think tanks and civil society organizations have a larger role to play in the process of social integration.
Everybody should be equally sensitised and need to be prepared for counter-terrorism methods.

Multidimensional and multilateral effort is needed to counter terrorism:

60

We need to fight this scourge at all levels


E.g. - shaping of public opinion, society building and evolving a concerted and integrated counterterrorism policy premised on international cooperation in intelligence sharing.
Fostering greater international cooperation to fight terrorism, as so-called victims of terror do not
cooperate on fighting terror on international stage.

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6.5. ACTION PLAN FOR PREVENTING VIOLENT EXTREMISM


Why In news?

UN under UNSCR 1267 committee Proposed drat plan


to recommend each Member State develop its own
national action plan to prevent violent extremism.
Draft proposed 7 broad areas which needs focused
attention.

The UNSCR 1267 committee


The key UN panel that decides on listing of
terrorists,
Related to travel ban, asset freeze and other
sanctions against the listed individuals.

Indian Perspective:

61

India has criticised the UNs proposed plan to combat violent extremism, describing it insufficient.
The main differences revolved around issues like foreign occupation and right to self determination
Lack of clarity on an agreed definition of terrorism and violent extremism.
Action plan is full of prescriptions to member state but low on what the UN will do in terms of assisting
member-states.
There is lack of single contact point to assist Member States seeking the Organizations help.
Underlined the need for greater international cooperation to deal with this growing global threat
India pitched that violent extremists are subject to the full force of law
India is of view that Terrorism spreading at global level, governments are thinking at a national, and even
departmental level.

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7. ECOLOGY AND ENVIRONMENT


7.1. GM MUSTARD
Why in news?
The Genetic Engineering Appraisal Committee (GEAC), of the ministry of environment and forests has deferred a
decision on allowing commercial cultivation of Mustard DMH-11.
What is GM Mustard?

Mustard DMH-11 (Dhara Mustard Hybrid 11), a


genetically modified (GM) crop, is a transgenic
crop developed by Centre for Genetic
Manipulation of Crop Plants at Delhi University
and partly funded by the National Dairy
Development Board.
The resulting GM mustard, it is claimed, gives
25-30 per cent more yield than the best varieties
such as Varuna currently grown in the country.

Arguments in support of GM mustard:

Technology behind GM mustard


It has been created using GM technology (alteration of
DNA), involving incorporation of Barnase gene
isolated from a soil bacterium called Bacillus
amyloliquefaciens.
It codes for a protein that impairs pollen production
and renders the plant into which it has been
introduced male-sterile.
This male-sterile plant is crossed with a fertile
parental line, containing, in turn, another gene,
Barstar, from the same bacterium that blocks the
action of the Barnase gene.
The resultant progeny, having both the foreign genes,
is a hybrid mustard plant that is not only high-yielding,
but also fertile and capable of producing seed/grain.

Research needed for long term food security


issues amidst new pests infestation, effects of
climate change and growing demand.
In 2014-15, India imported 14.5 million tonnes
of edible oils valued at $10.5 billion. Therefore, the need to raise domestic crop yields and cut
dependence on imports.
Countrys cotton production has gone up more than 2 times since Bt hybrids were first planted in 2002.
Also, no adverse effects on human have reported (consumption of cotton seed oil, etc).
We import edible oil from GM crop using countries.
Delhi Universitys CGMCP has pledged to distribute the GM mustard for free.

Arguments against GM MUSTARD:

Long term adverse effects cannot be ascertained without proper research.


The entire process is seen as a political one where the government pays heed to different lobbyists
(opaque functioning of GEAC).
The farmers also oppose the seed monopolies, which are causing price distortion and not adhering to
government guidelines on price control in case of Bt Cotton. They are also not being made accountable
for the losses due to pest attacks like the recent pink bollworm.
Organic is a more sustainable option, as could be seen from the growing demand for such food.
New varieties are input intensive. (water, fertilizer, etc)

Supreme Courts view:

62

The Supreme Court has sought an explanation from the central government on its proposed move to
introduce herbicide resistant mustard, cotton and corn in the face of a court-imposed ban on their
introduction.
The top court had in a series of orders passed in February 2007, April 2008 and August 2008 sought to
restrain both small-scale and large-scale field trials in any food crops as well as their commercial
introduction in the country.

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Way Forward:

Transparency of data and functioning - is crucial for public and scientific confidence in the GEAC's
decision-making process.
An independent and autonomous regulator which is insulated against pulls and pressures (envisioned in
the lapsed Biotechnology Regulatory Authority of India Bill)
A legislation to fix the liability of the seed monopoly is also desired.

Previous Year Prelims Question:


"Other than resistance to pests, what are the prospects for which genetically engineered plants have been
created?
(2012)
1. To enable them to withstand drought.
2. To increase the nutritive value of the produce.
3. To enable them to grow and do photosynthesis in spaceships and space stations.
4. To increase their shelf life.
Select the correct answer using the codes given below:
(a) 1 and 2 only
(b) 3 and 4 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4"
Answer: (d)
Previous Year Mains Question:
The human population is slated to grow to 9 billion by 2050. In this context, many scientists predict that plant
genomics would play a critical role in keeping out hunger and preserving the environment. Explain.

7.2. WETLAND MANAGEMENT IN INDIA


Why in News?

The Union government seeks to revisit the


existing regulatory framework on wetlands
across the country in a bid to enable a greater
role and ownership by State governments in
their management.

Wetlands are areas where water is the primary


factor controlling the environment and the
associated plant and animal life. They are
defined as: "lands transitional between
terrestrial and aquatic eco-systems where the
water table is usually at or near the surface or
the land is covered by shallow water".

About the Management Framework:

Earlier the Ministry of Environment and Forests was implementing two separate Centrally Sponsored
Schemes (CSS), namely the National Wetlands Conservation Programme (NWCP) and the National Lake
Conservation Plan (NLCP). This was later merged into a single scheme called National Plan for
Conservation of Aquatic Eco-systems (NPCA).
Under this scheme a central policy towards the conservation of wetlands is laid down, the programmes
are monitored and an inventory of the wetlands is prepared.
While the conservation and management of wetlands rests with the state governments, their plans are
approved by the central government.

Issues in the Existing Framework:

63

Presently, only notified wetlands are given protection. Small wetlands get ignored in the process.
The process of notification is initiated by the State government. So no avenue is available to the local
people or bodies who are the major stakeholders.
No data bank is available on wetlands except on the Ramsar sites. Without data the extent of wetlands is
not ascertained and thus encroachment becomes easier.
The Municipal bodies that are currently responsible for implementation of the rules related to wetlands
lack technical expertise to identify a wetland.
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Way Forward:
Involvement of town and country planning board to identify a wetland
More role to locals including the fishing community, farming and pastoral community must be given. They
have experience as well as interest in the management of wetlands.
Equipping Municipal Corporations with technology.

7.3. NASAS CORAL CAMPAIGN


Need for a survey:

Often called rainforests of the sea Coral reefs are one of the most important and diverse ecosystems of
the world.
They are, however, very fragile and are under threat from climate change, ocean acidification, improper
fishing practices, agricultural run-off, oil spilling etc. Thus, they are getting degraded at a fast rate.
However, very little of worlds reef area has been studied scientifically.
Virtually all measurements have been made by expensive, labour-intensive diving expeditions that cover
only a few reefs.
Thus, it is important to estimate the extent of damage to them so that the gravity of the problem is
understood and concrete steps be taken towards their protection.

Coral Project:

NASA has embarked on an air-borne three-year field experiment called the Coral Reef Airborne
Laboratory (CORAL), which aims to survey the conditions of the major reefs of the world through
remote-sensing.
It will survey the condition of entire reef systems in Hawaii, Palau, the Mariana Islands and Australia.
CORAL will involve the aerial deployment of a spectrometer called PRISM (Portable Remote Imaging
Spectrometer) which will use optical data, underwater photographs and reef primary productivity data
for analysis.

Importance of Coral Reefs:

Protect shorelines by absorbing the wave energy. The survival of many island is dependent on them
Controlling the CO2 in the ocean water
Importance for marine ecology
Best breeding ground for fishes
Eco-tourism

UPSC 2012 Prelims


The acidification of oceans is increasing. Why is this phenomenon a cause of concern:
1. The growth and survival of calcareous phytoplankton will be adversely affected.
2. The growth and survival of coral reefs will be adversely affected.
3. The survival of some animals that have phytoplanktonic larvae will be adversely affected.
4. The cloud seeding and formation of clouds will be adversely affected.
Which of the statements given above is/are correct?
(a) 1, 2 and 3 only (b) 2 only (c) 1 and 3 only (d) 1, 2, 3 and 4

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7.4. JAL MANTHAN-2


What is Jal Manthan?

It is an event organized by Ministry of Water Resources, River Development & Ganga Rejuvenation to
dwell on issues of optimal use of water resources and
accordingly refine the policies.
Other major issues discussed were
It is marked by the participation of the union and state
River
Basin
Approach
for
ministers of related ministries/departments, senior officers
Sustainable development,
of government and other stakeholders like representatives
Ground water management,
of NGOs and eminent water experts.
Water security,
The first Jal Manthan happened in November 2014. Its
Principles of allocation of water,
second edition was recently organized.
Innovation in water governance,

Highlights Jal Manthan-2:

Coordination between Centre and


states,
Water conservation.

Its theme was Integrated Approach for Sustainable Water


Management
Mission Kakatiya: Helped in raising water levels in Telangana by restoring tanks and water bodies.
Setting up more reverse osmosis plants to address the issue of increasing levels of arsenic and fluoride
in the ground water.
Need for a National law on water
a) Water broadly falls in state list. There are more than 300 state laws on water. But they do not
address the present concerns in a holistic manner.
b) Considering its critical importance in national development, water needs to be managed with a
national perspective based on the acceptance of a few common fundamental principles.
c) The move also finds support with the 12th five year plan document and the Public Accounts
Committee report in 2014-15.
d) However, this has been opposed by most of the states. Further, neither of commissions on Centerstate relations namely the Sarkaria Commission and Punchhi Commission supports it.
Lastly, the formulation of a River Basin Management law was also considered.

7.5. URBAN SOLID WASTE MANAGEMENT


Why in News?
The Deonar landfill in Mumbai recently caught fire which lasted
for days causing severe hardships for the locals. The landfill has
been in operation for around 90 years which is much beyond its
expiry date.
Management System in India:

65

As per World Bank urban solid waste


management is the process of collecting,
treating and disposing of solid wastes
generated by all urban population groups
in an environmentally and socially
satisfactory manner using the most
economical means available.

The rules and stipulations are laid down by the Central government under the Environmental Protection
Act, 1986
The Central Pollution Control Board and State Board monitor the compliance of the standards with
respect to air quality, water quality etc.
The management of the waste rests with the respective Municipal Corporations.
a) They receive construction debris, household waste, waste from public bins and other kinds of refuse
b) While in some cities the Municipal Corporations undertake all the activities, in others like Chennai
and Bengaluru the work of collection and segregation is given to private contractors.

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Issues:

Segregation is not done at source


Unorganized segregation facility: Ideally more than 50% of the waste could be segregated and
composted at the starting stage. After recycling the left over only 10-15% should be left for dumping at
the landfills. However, this is not done so in Indian cities.
Issues with Landfill management:
a) Violations of rules with respect to the scientific requirements for the location of a landfill and the
mandatory security-set up like compound walls, CCTV cameras, fire-fighting equipment and water
tanks, and regularization of rag pickers .
b) Occasional fires drawing on air quality and health. (due to methane production)
c) Many Landfills have been functioning beyond the stipulated timeline.
d) With the expansion of cities old land fill need to be reclaimed and new sites should be identified.
e) The demand for alternate sites gets entangled in the tussle between the Municipal Corporations and
the State governments as the matter rests with the latter.
Processing Facility
a) The composting and waste to energy plants run at under-capacity.
b) Many of the new projects for garbage processing facility are stuck
c) Financial issues
d) The facilities of composting of wet waste is not present everywhere

Suggestions:

An integrated waste management system is required.


Segregation of waste from houses itself. This should be targeted from sociological and cultural angles for
an attitudinal change.
Strict actions against Municipal Corporations for untreated waste disposal and mismanagement of
landfills.
Standard protocols for landfill management to prevent accidents.
Integration of workers into waste management with training, strict rules, safety equipments etc
More cooperation between the municipal corporations and state government with respect to clearing
projects for waste treatment plants and alternate landfill sites is needed.
The work of segregation could be given to private contractors. The challenge is to get enough private
contractors on board to take up waste handling.
Recent steps:
Mandating all power distribution companies to buy electricity from power plants fueled by solid waste
Mandating all private fertilizer companies to buy compost that is extracted from municipal solid waste.
There is a provision of penalty if the companies violate the directions.
Significance of the step:

Alternate energy: A step towards realizing Centers aim of generating 700 megawatts of electricity from
solid waste-run plants in the next five years.
Effective disposal of solid waste. Every day about 1.68 lakh ton of solid waste is collected across the
country.
Boost to the defunct waste-to-energy plants and compost producing plants. It will also give incentive
for setting up of more such plants in the country.
Breaking the monopoly of urea producing companies

Thus, this is a significant and creative step towards turning the mounting waste into a national asset.

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7.6. AIR POLLUTION IN INDIAN CITIES


Why in News?

A recent study by Greenpeace shows that India has overtaken Chinas air pollution levels and that the
average particulate matter exposure for Indians was even higher than that for Chinese.
This is particularly high for states along the Punjab to West Bengal corridor.
In 2005, Indias pollution, though serious, was much lower than eastern Chinas.

Strong measures needed:

Need to put pressure on policymakers and the polluters by improving the functioning of Air Quality
Index
Need to expand coverage from the present 23 cities to all agglomerates with a significant population and
economic activity.
They must be mandated to provide full and regular information within a given time-frame.
Data must be put in open format to enable multiple channels of dissemination including novels methods
like mobile apps.
An action plan when the quality for air is bad. In China, for instance drastic measures like shutting down
of schools, limiting production from factories etc. are taken when air quality goes severely bad.

Measures against vehicular pollution:

Odd-even policy- being practiced in Delhi.


Increasing cost of diesel vehicles as proposed by Budget 2016-17, NGTs direction of banning entry of
diesel vehicles older than 10 years, ban on sale of heavy diesel private vehicles.
Implementation of BS-VI announced by government.
New measures like Congestion charges, license quota system, registration capping, parking charges,
staggered working hours etc. should also be considered.
Better public transport system and urban planning
Construction dust and demolition activity control.
a) Building tarpaulin around area of construction
b) Covering stored as well as moving construction material
c) Masks to workers and sprinklers at site

7.7. COMPENSATORY AFFORESTATION FUND (CAF) BILL 2015


Why in News:

Recently, the Departmental-related Parliamentary Standing Committee on Science & Technology,


Environment & Forests held extensive discussions in Goa with representatives of NGOs/civil society
organizations, experts and central and state Government representatives on the CAF Bill, 2015.

About Campa:

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Compensatory afforestation is the process of planting trees to replenish diversion of forest land for nonforest use.
The money in CAF is collected from the companies and people to whom the forest land is diverted.
The Compensatory Afforestation Fund Bill 2015 seeks to provide an institutional framework for this.

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Key issues highlighted:

Provisions to be made for providing incentives to persons who are displaced or relocated elsewhere
from eco sensitive zone.
Compensatory Afforestation Fund Management and Planning Authority (CAMPA) funds should be
permitted to be used for acquiring lands in eco sensitive areas in order to overcome loss of forests and
native species plants should be selected so that ecology of the area is maintained.
Need for peoples participation at various stages.

Other issues with CAF bill 2015:

Lack of planning and implementation capacity with the state forest department as per a 2013 CAG
report.
Procuring land for compensatory afforestation is difficult as land is a limited resource, and is required for
multiple purposes, such as agriculture, industry, etc. This is compounded by unclear land titles, and
difficulties in complying with procedures for land use.
The compensatory forests are low in quality and lacks in richness of biodiversity of a natural forest.

7.8. JAL KRANTI ABHIYAAN:

Jal Kranti Abhiyaan is a program of central


It was launched on 5th June 2015. It has the
government for creating awareness on aspects of
following objectives:water security and water conservation.
Strengthening grass root involvement of all
Under Jal Kranti Abhiyan two villages, preferably
stakeholders including Panchayati Raj
facing acute water scarcity are being selected as
Institutions and local bodies in the water
Jal Grams.
security and development schemes (e.g.
Participatory Irrigation Management (PIM);
An integrated water security plan, water
Encouraging the adoption/utilization of
conservation, water management and allied
traditional knowledge in water resources
activities are being planned for these villages by
conservation and its management;
Panchayat level committee to ensure optimum and
To utilize sector level expertise from
sustainable utilization of water.
different levels in government, NGOs,
From each Jal Grams, one elected representative of
citizens etc; and
Panchayat and one representative of the water
Enhancing livelihood security through
water security in rural areas.
users association are being identified as Jal Mitra/
Neer Nari and training is being imparted to them to
create mass awareness about issue pertaining to water as well as providing necessary guidance in
tackling water supply related routine issues.
A card known as Sujalam Card (with the logo Water Saved, Water Produced) is being prepared for
every Jal gram which would provide the yearly status/information on availability of water for the village
from all sources.
Central Water Commission (CWC) and Central Ground Water Board (CGWB) are the nodal agencies for
implementation.

7.9. KUDREMUKH NATIONAL PARK


Why in News?

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The biodiversity of Kudremukh was earlier threatened by a gigantic strip mining operation called the
Kudremukh Iron Ore Company Limited (KIOCL).
But the Supreme Court ordered the closure of the mine by the end of 2005 and an eco-restoration plan
for the mine-damaged area.
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It is, however, reported that KIOCL is continuing to encroach upon the land and also runs an eco-tourism
resort in the heart of the park. This is in violation of the SCs directives.

Problem with Resorts in Protected Areas:

It will entail development of infrastructure such as approach roads, electrical lines, water and sewage
lines, buildings, and swimming pools and the like.
Tourism results in resource consumption, waste generation, vehicular traffic, pollution and other
disturbances all of which pose a chronic threat to the ecological integrity of the park.
The SC had earlier insisted that all tourism infrastructures be moved out of national parks and
sanctuaries that constitute tiger reserves within the next five years. In many areas, these are now being
shifted out.

About Kundermukh:

Kudremukh national park is located in Western Ghats and is part of the worlds 38 hottest hotspots of
biological diversity.
It is named after the Kudremukh mountain range in Karnataka.
Kuduremukh is Karnataka's 3rd highest peak after Mullayangiri and Baba Budangiri.
The park is home to unique, threatened and endangered biodiversity including lion-tailed macaques,
tigers, Malabar civets and great pied hornbills.
Important South Indian rivers Tunga, bhadra and Netravati originate from the heart of this park.

UPSC PRELIMS 2013


Q. Consider the following pairs:
National Park
River flowing through the Park
1. Corbett National Park
Ganga
2. Kaziranga National Park
Manas
3. Silent Valley National Park Kaveri
Which of the above pairs is/are correctly matched?
(a) 1 and 2
(b) 3 only
(c) 1 and 3
(d) None

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8. CULTURE
8.1. NADA KUSTI

Nada Kusti has made it to the cover page of an international publication, Beyond the Body, with 183
black-and-white pictures by renowned Polish photographer Tomasz Gudzowaty that document
traditional games that are fading into oblivion.
It is a traditional form of wrestling, deep rooted in the people of Mysore.
A sport that has had royal patronage since early 17th Century, Nada Kusti is very popular among those
from the lower middle class and rural areas.
The Indian form of wrestling flourished in Mysore producing classic wrestlers such as Koppal Basavaiah
and Channaboranna, who made a mark in the international arena too.
Today, the sport is no more than a form of rural entertainment and is largely confined to the Dasara
festivities.

8.2. GANGA SANSKRITI YATRA

Ganga Sanskriti Yatra is a festival is being organized from Gangotri to Gangasagar in February-March
The objective is to showcase and discover the cultural diversity and heritage of Ganga river basin.
To spread necessary awareness to the masses about safeguarding and rejuvenating the Ganga.
It is also pursuing idea of cultural exchange. In view of this, the yatra is divided into part, the central
point being Varanasi. The art forms from confluence to Varanasi will be presented in the lower part.
During the Yatra, a survey and documentation on the art forms and cultural heritage of Ganga will be
published at the commencement of the series.
The main concentration of the festival is to present art forms of Ganga basin which are deeply associated
with the river, including Folk songs, Folk dances, Folk Theatre, Dance Drama, documentary/ Films Shows,
Street Plays, kavi sammelan, photography exhibitions, film shows, etc.

8.3. RUKMANI DEVI ARUNDALE


Why in News?

Search engine giant Google celebrated the 112nd birth anniversary of Rukmini Devi Arundale through a
doodle.
It featured a depiction of her in traditional dance attire with flowers in her hair holding up a mudra.

Who was Rukmani Devi Arundale?

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She was an theosophist, dancer and choreographer of Bharatnatyam, and an activist for animal rights
She is considered the most important revivalist in the Indian classical dance form of Bharatnatyam from
its original 'sadhir' style, prevalent amongst the temple dancers, Devadasis, she also worked for the reestablishment of traditional Indian arts and crafts.
She was awarded the Padma Bhushan in 1956 and Sangeet Natak Akademi Fellowship in 1967.
Also an institution-builder who built a public cultural and educational centre known as Kalakshetra.

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8.4. MUZIRIS HERITAGE PROJECT

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President inaugurated the Muziris Heritage Project being implemented by the Tourism Department of
the Government of Kerala, with the support of the Ministry of Tourism, Government of India.
The Muziris Heritage Project, which was initiated six years ago, is an ambitious project comprising the
o development works of Chennamangalam palaces,
o Cheraman Parambu, Synagogue and waterfront at North Paravur;
o a performance centre at Gothuruthu;
o a Museum at Pallipuram
The project also envisages the conservation of archaeological monuments within 125 square kilometres
spread across Thrissur and Ernakulam districts.
Muziris was a large port of ancient times on West Coast of Kerala, trading everything from precious
stones to spices.
Muziris was the doorway for cultures, religions and races into India. Large ships of ocean traders
frequented it from across the world, including Arabs, Egyptians, Greeks, Romans and Chinese.
It is believed that a devastating flood that changed the course of the Periyar River or an earthquake in
the 14th century led to the decline of Muziris.
Next phase of the project is the Spice Route Initiative, which will explore the international connections
and linkages that the Malabar Coast had with many parts of the world.
This phase is to be implemented with the support of UNESCO and United Nations World Tourism
Organization.

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9. ALSO IN NEWS
9.1. TRAI RULING IN FAVOUR OF NET NEUTRALITY

The Telecom Regulatory Authority of India (TRAI) barred telecom service providers from charging
differential rates for data services.
It has backed Net Neutrality by referring to ISP License agreement which reads, The subscriber shall
have unrestricted access to all the content available on Internet except for such content which is
restricted by the Licensor/designated authority under Law.
This effectively prohibits Facebooks Free Basics and Airtel Zero platform in their current form.
Data packs that offer unlimited access to a certain type of app or service, like Whatsapp or Facebook, for
a small fee will also become illegal. People on existing plans of the kind can continue for a maximum of
six months.
TRAI said a fine of Rs. 50,000 would be levied per day, subject to a maximum of Rs. 50 lakh, for any
violation of these regulations.
An exemption has been made for offering emergency services. The order says that in a situation of
public calamity a TSP (service providers) can introduce reduced tariff for accessing or providing
emergency services.
TRAI has rejected the argument that differential pricing could help increase Internet penetration in
India.

9.2. ELECTRIC PROPULSION SYSTEM

The Indian Space Research Organisation (ISRO) plans to use electric propulsion system on satellites for
station keeping and orbital manoeuvre in two years.
Electrically powered spacecraft propulsion system uses electrical energy to change the velocity of
a spacecraft.
While electric propulsion isnt as powerful as chemical propellants when it comes to producing raw
thrust, it can be up to 1,000 times more efficient than chemical propellant, which is why its suitable
for long-range or long-duration space missions.
Due to its high efficiency, with enough time, a constant emission of ions will also enable spacecraft to
reach higher speeds than a chemical propellant.

9.3. GENETICALLY MODIFIED MOSQUITOES


In an effort to curb the spread of the Zika virus, a UK-based company Intrexon Corporation has
partnered up with Brazilian authorities to introduce genetically modified sterile mosquitoes into the
wild to reduce the population and the threat of the virus spreading to humans.
Sterile genetically engineered mosquitoes are introduced into the highly dense mosquito-infested area
to curb their populations and prevent the disease from spreading.
Once introduced the genetically modified male mosquitoes will seek out female mosquitoes in the wild
to mate with them.
The result of such mating will result in no offspring, and that will eventually reduce the entire mosquito
population in the area, drastically reducing their threat to humans.
It has been successfully tested in the northern Australian city of Cairns is to block dengue transmission to
humans.
Concerns:

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There is ecological impact of eliminating a species using genetic modification.


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Some experts raised the question of whether there would be an empty ecological niche left that could
be filled in by other species. Removing some species could open a niche for others to occupy, and the
result of that change are hard to predict.
There are other technical, regulatory and political challenges will have to be crossed.
Importantly, people who live in the communities where modified mosquitoes will be deployed must also
be convinced that the benefits significantly outweigh the risks.

9.4. VPM 1002

A potent vaccine against tuberculosis is getting readied at the Pune-based Serum Institute of India
Limited.
The institute started a Phase 2b clinical trial in neonates in South Africa late last year using a novel,
recombinant BCG (bacillus Calmette-Gurin) vaccine. A Phase III trial involving newborns will begin in
India once Phase 2b ends.
The new TB vaccine (VPM1002) is more powerful as it contains a gene which makes it easier for the
vaccine to be better recognized by cells of the immune system.
The recombinant BCG vaccine is intended to protect children and possibly adults against drug-sensitive
and drug-resistant TB. In comparison, the classical BCG vaccine can only protect against severe forms of
the disease in children but cannot prevent pulmonary TB in all age groups, including children.
The recombinant BCG vaccine has also been found to be superior safety-wise.

9.5. EYERISS

A team of US researchers from Massachusetts Institute of Technology (MIT) has built an energy-friendly
chip.
It can perform powerful artificial intelligence (AI) tasks, enabling future mobile devices to implement
neural networks modelled on the human brain.
It is 10 times as efficient as a mobile GPU (Graphics Processing Unit) so it could enable mobile devices to
run powerful AI algorithms locally rather than uploading data to the Internet for processing.

9.6. SEISMIC MICROZONATION REPORT

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Seismic Microzonation reports for Delhi and Kolkata have been


Seismic Microzonation is defined
released by Union Minister for Science & Technology and Earth
as the process of subdividing a
Sciences, in New Delhi.
potential seismic or earthquake
In order to minimize the damage of natural calamities like
prone area into zones with respect
to
geological,
seismological,
earthquake, microzonation is a measure where the emphasis on the
hydrological and geotechnical site
impact of earthquake on the habitat is given.
characteristics.
These would help in designing of safe structures to reduce loss of
human life by
o Proper assessment of Seismic Hazard
o Implementation of safe building construction codes
o Adopting appropriate land use planning
National Capital Territory (NCT) Delhi is located in Seismic zone IV of the macro seismic zoning map of
the country.
Kolkata is placed at the border of Seismic Zone III and IV, necessitating systematic assessment of seismic
hazard, vulnerability and risk.

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9.7. 47TH CONFERENCE OF GOVERNORS

A 2-day conference of all the Governors and Lt. Governors of the states and Union territories was held
at Rashtrapati Bhavan.

Key points stated by the President on the Role of Governors:

Governors have been charged with an onerous responsibility - to preserve, protect and defend the
Constitution. It is, therefore, imperative that all their actions are within the framework of the
Constitution and conform to the highest ideals enshrined in this living document.
As holders of high offices they must not only be fair but also be seen to be fair.
The President said strong monitoring, rigorous follow-up, and validation of progress are essential for the
success of the Swachh Bharat Mission. Governors, as the live-link between the centre and the states,
can catalyze initiatives.
Governors can play a catalyzing role in the efforts towards environmental protection.
Governors may take up smart solutions in their Raj Bhavans which can serve as technology
demonstrators.
They may also ask the universities to make use of the Unnat Bharat Abhiyaan for developing smart
villages.
Governors can also sensitize states/ UTs about adopting a well-knit strategy to achieve the objectives
of the Make-in-India programme.
Governors of eastern states, especially the North Eastern states, should become active participants of
the Governments Act East policy.

9.8. SUPREME COURT: USE OF CURFEW POWER


Why in News?

The Supreme Court agreed with a lower court decision that the State can use its curfew powers to block
Internet access on personal mobile phones if there is apprehension that a public agitation can turn
aggressive and disturb public tranquility.
In September 2015 Gujarat High Court uphold that a clampdown on mobile Internet access under
Section 144 of the Criminal Procedure Code (CrPC) during the Patidar agitation as only minimal
restriction.
Court also opined that it is not a violation of free speech under Article 19 of the constitution.
Section 144 of the Criminal Procedure Code (CrPC) of 1973, empowers a magistrate to prohibit an
assembly of more than ten people in an area.
According to sections 141-149 of the Indian Penal Code (IPC), the maximum punishment for engaging in
rioting is rigorous imprisonment for 3 years and/or fine.
Every member of an unlawful assembly can be held responsible for a crime committed by the group.
Obstructing an officer trying to disperse an unlawful assembly may attract further punishment.

9.9. REGIONAL BENCHES OF SC


Why in News?

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Supreme Court admitted a petition for setting up a National Court of Appeal with regional benches (in
Chennai, Mumbai and Kolkata) to act as the final courts of justice in criminal and civil cases.

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Need

Background:

There are nearly 60,000-odd cases pending in the


top court due to appeals arising out of litigations in
the high courts.
People go through difficulties, both physical and
financial, because they have to travel to New Delhi
to file appeals in the SC.
The geographical proximity and financial status of
citizens in the society are vital factors for every
citizen to have access to this court.

Way Forward:

Previously, in Dec 2014, union government has


rejected the proposal for a National Court of
Appeal with regional Benches on three grounds:
a)

The Supreme Court always sits in Delhi as per


the Constitution.
b) The Chief Justices of India in the past have
consistently opposed the idea of a National
Court of Appeal or regional Benches to the
Supreme Court.
c) And National Court of Appeal would
completely change the structure of the
Supreme Court.

Division of the Supreme Court into a Constitutional


Division and a Legal Division can be done.
Later, group of Chennai lawyers has filed the
petition against the decision of government.
Principal Constitution Bench can be in Delhi but four
regional Benches can be created to hear appeals on
High Court orders.
Creation of a National Court of Appeal that will have four Cassation Benches for the adjudication of
non-constitutional matters.

9.10. SECTION 295A OF IPC

Recently, comedian Kiku Sharda was arrested for acting out a spoof on godman Gurmeet Ram Rahim
Singh.
In past also Section 295A has been used at various occasions. It was also used to issue arrest warrants to
All India Bakchod, Karan Johar, Ranveer Singh and Arjun Kapoor in the AIB Roast controversy.
Section 295 of Indian Penal Code incriminates any act that outrages the religious feelings or sentiments
of others.
The IPC provision is seen as a tool in the hands of the ruling government to curb dissent.
It is also being perceived as a tool to promote their political cause by pleasing a certain section of
community at the cost of others.

Way forward:
The real issue is not the provision itself but its misapplication. The provision clearly states the
requirement of malice or bad intention on the part of the perpetrator. There is a need to read down
the provision and give clear guidelines to the police for its application. Misapplication should be strictly
dealt with.

9.11. AMENDMENT: DELIMINATION ACT & RPA, 1950


Why in News?

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The Union Cabinet has given its approval to amend section 11 of the Delimitation Act, 2002 and section
9 of the Representation of the People Act, 1950.
It will enable Election Commission to carry out limited delimitation of Assembly and Parliamentary
Constituencies in the Cooch Behar District of West Bengal consequent upon the exchange of 51
Bangladeshi enclaves and 111 Indian enclaves respectively between India and Bangladesh.

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This is in pursuance of the Constitution (One Hundredth Amendment) Act, 2015 and also allows for
introduction of a Bill, namely, the Election Laws (Amendment) Bill, 2016 in Parliament.

Delimitation Act

Under Article 82 of the Constitution, the Parliament by law enacts a Delimitation Act after every census.
After coming into force commencement of the Act, the Central Government constitutes a Delimitation
Commission.
This Delimitation Commission demarcates the boundaries of the Parliamentary Constituencies as per
provisions of the Delimitation Act.
The present delimitation of constituencies has been done on the basis of 2001 census figures under the
provisions of Delimitation Act, 2002.

9.12. MANUAL FOR JUVENILE OFFENDERS


Why in News?

The Supreme Court has directed the Ministry of Women and Child Development to prepare a manual
exclusively for juvenile offenders in custody under the new Juvenile Justice (Care and Protection of
Children) Act, 2015
It has also said that the new manual should be based on the Model Prison Manual which is being
prepared by the Union Home Ministry for adult prisoners.
Ministry is also advised to take into consideration the living conditions and other issues pertaining to
juveniles who are in Observation Homes or Special Homes or Places of Safety.

Juvenile Justice (Care and Protection of Children) Act, 2015:

The JJ Act, 2015 provides for strengthened provisions for both children in need of care and protection
and children in conflict with law.
If a person between the ages 16-18 have committed a major crime (7 years or more punishment) then
he will be tried as an adult.
A District Juvenile Justice Board consisting of 1 judicial magistrate and 2 social workers, will be set up to
examine the case and determine whether to try the accused as juvenile or as an adult.
The Juvenile Justice Board is given the option to transfer cases of heinous offences by such children to a
Childrens Court (Court of Session) after conducting preliminary assessment.

9.13 BETI BACHAO BETI PADHAO SCHEME: UPDATES


Why in News?

The government has decided to expand the Beti Bachao, Beti Padhao scheme to 61 more districts from
the current 100.
Additional districts will be selected from 11 States/UT having CSR below 918.
Based on the findings of the year-end review report of the ministry, it has been pointed out that more
than 50% of the 100 districts had showed signs of improvement after the schemes implementation.

Note- This scheme is covered in detail in Jan, 2015 Vision current affairs. Kindly refer the same for more
details.

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9.14 PRIVILEGE MOTION


Why in News:

Recently, opposition member in Lok Sabha has given a notice to move privilege motion against Human
Resource Development minister.
Notice contended that Human Resource Development minister has misled the House and the Nation on
the issue of government intervention in Delhis JNU and the Hyderabad Central University while
intervening in a debate.

Privilege Motion:

It is moved by a member when he feels that a minister or any member has committed a breach of
privilege of the House or one or more of its members by withholding facts of a case or by giving wrong or
distorted facts.
Privilege motion can be moved by any lawmaker/MP against anyone accused of breaching
parliamentarians' privileges, their special rights and immunities.
Its purpose is to censure the concerned minister or any other member.
Each of the two houses, the Lok Sabha and the Rajya Sabha, has separate privilege committees, made up
of their members.
The presiding officers of the two Houses, the Speaker and the Chairperson respectively, can dismiss
privilege notices, or refer them to the privilege committee, or get a sense of the House before taking a
decision.

9.15. IMPLEMENTATION OF OROP

While the scheme was announced by the central


One Rank, One Pension (OROP) is based on
government in last budget, it is taking much time in
two principles
taking its final shape.
Recently, the government released detailed
1. Soldiers retiring at the same rank and
instructions and tables on its implementation.
after the same length of service should
However, the notification had been rejected by exreceive the same pension.
servicemen.
2.
Any future increases in the rate of
Disagreement between the government and the expension should automatically be
servicemen on certain technical details like the
passed on to past pensioners.
definition of OROP, composition of the commission for
implementation etc.
The financial burden on government exchequer which in the light of 7th Pay Commission pose bigger
challenge.
The government has shown the requisite will to pursue the justified demands of the ex-servicemen class.
But, there is a need for more discussion with them so that there is meeting of minds.

9.16. UNIFORM POLICY TO COMPENSATE RAPE VICTIMS

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The Supreme Court directed all states and Union Territories to formulate a uniform scheme to provide
compensation to the victims of sexual abuse and exploitation.
Court said the authorities should look into the Victim Compensation Scheme under Section 357-A of the
Criminal Procedure Code 1973 for providing compensation to the victims or dependents who have
suffered loss as a result of such crime.

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Court directed All the States and Union Territories to take into consideration the scheme framed by the
State of Goa for rape victim compensation.
As of now all states have different compensation policies.

9.17. NORTHEASTS FIRST SMART VILLAGE

Barsimaluguri, village which is located about 11 km from the Indo-Bhutan border, in Baksa district has
been turned into a model smart village in northeast India.
This initiative was taken by a few individuals under the aegis of Nanda Talukdar Foundation (NTF).
The project was funded by India Infrastructure Finance Corporation Limited.
This village has hundred per cent toilets, solar power and pure drinking water.
They have also focused on skill development and women participation.
The yarn bank has been set up in the village which is being managed by the village women committee.
To maintain the good health of villagers, several health checkup camps have been conducted in the
village.

9.18. E-TOURIST VISA

e-Tourist Visa (e-TV) facility is now extended to citizens of 37 more countries, including Austria, Czech
Republic, Denmark and South Africa taking the total count of countries under the scheme to 150.
TVoA (tourist visa on arrival), enabled by Electronic Travel Authorisation (ETA), popularly known as eTourist Visa scheme, was launched on November 27, 2014.

Progress till now:

Till now the scheme has been extended to 113 countries at 16 Indian airports designated for providing eTourist visa service.
Since the launch of the scheme more than 7.50 lakh visas have been issued under the scheme. At
present on an average, 3,500 e-Tourist Visas are being granted daily to foreign nationals.
According to an official estimate, during January- November of 2015, a total of 3,41,683 tourists arrived
on e-Tourist Visa as compared to 24,963 during the corresponding period of previous year, registering a
growth of 1268.8 percent.
The UK accounted for 23.93 per cent share of availing e-Tourist Visa facility during November 2015,
followed by the US (16.33 per cent), Russian Federation (8.17 per cent), France (7.64 per cent), Germany
(5.60 per cent) and Australia (4.82 per cent).

9.19. BLUE ECONOMY

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The concept Blue Economy was introduced by Gunter Paulis


book, The Blue Economy: 10 years - 100 innovations - 100
million jobs.
The concept is based on using locally available resources to
shift the society from scarcity to abundance and thus
achieving social inclusion and environmental sustainability.
The blue economy encompasses in it the green economy,
with focus on the environment, and the ocean economy or
coastal economy.

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The National Maritime Foundation


defines the blue economy as marinebased economic development that leads
to improved human wellbeing and social
equity, while significantly reducing
environmental risks and ecological
scarcities.

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Blue economy seeks to achieve sustainability by:

Cascading nutrients and energy the way ecosystems do.


By reducing or eliminating inputs, such as energy, and eliminating waste and its cost
Enticing entrepreneurship and innovation.
Emulating natural systems will mean the deployment of humans rather than machines.
Includes ideas like eliminating air in freezing, use of food-grade ingredients as fire retardants, growing
mushrooms with coffee shop waste, silk as a replacement of titanium, electricity generated by walking,
etc.

9.20. RBI RELAXED FDI NORMS TO BOOST START-UPS

All startups can now raise funds from foreign venture capital investors (FVCIs) under automatic route.
Till now automatic approval was available in nine sectors only.
To enable transfer of shares from foreign venture capital investors to other residents or non-residents
Delayed reporting of foreign direct investment transaction to be taken care by building a penalty
structure into the regulations itself.
To help promoters of a start-up, RBI has proposed to permit receipt of deferred consideration and
enabling an escrow/indemnity arrangement
Regulatory changes to deal with cross-border transactions, particularly relating to the operations of
start-up enterprises are also proposed to be taken.
Other proposals under consideration for helping start-ups are - permitting start up to access ECB,
issuance of innovative FDI instruments etc.
These steps will help in speedy conclusion of deals between startups and foreign investors and improve
ease of doing business.

9.21. MEZZANINE INVESTMENT


Why in news?
The government is in the process of setting up a $1.25 billion fund, backed by state-owned and private
institutions, to finance renewable energy projects. This fund will make equity and mezzanine investments in
renewable energy projects
What is Mezzanine Capital/Investment?

Mezzanine capital allows a business to obtain capital through loans without offering any collateral.
If the business defaults on its loans, the lender can convert its loans to ownership stake by exercising
warrants or options built into the deals.
For example- Ram wants to expand his soda company. Instead of selling his shares, Ram raises money
from a mezzanine investor. The lender gets a right of converting his loans into appropriate ownership
stakes and sell it to other party to recover his loans should Ram fails to pay the loan.
The advantage of Mezzanine investment is that it is available in very quick time but as this is done
without much due diligence so rate of interest on such funds are typically higher.

9.22. WITHDRAWAL OF CUSTOM DUTY EXEMPTION ON 76 LIFE-SAVING


DRUGS
News:
The Finance Ministry has withdrawn exemption of 76 medicines from customs duties. The list includes 10 HIV
drugs and at least four cancer drugs, but haemophilia patients are likely to be the most affected by the decision.
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Governments Stand:

It is to promote indigenous medicines. The Indian drug companies are perfectly capable of
manufacturing these drugs for our domestic market.
It is believed that the removal of duty exemption will promote Make In India.

Impact of the decision:

It will at once make them more expensive and impact patients who are already paying a high price for
such medical treatment.
Imported active pharmaceutical ingredients (APIs) will also increase the cost of generics made locally.
Majority of Indians meet health care costs through out-of-pocket expenditure, and any increase is
bound to adversely affect them.
Few drugs which have been removed are either not produced in India or they are not produced in
sufficient quantities to meet the local demand
Many of the recently launched life-saving drugs which are under patents have not been provided with
the custom duty exception.

9.23. BUILD-OPERATE-TRASNFER ANNUITY MODEL - RAILWAYS


[Please refer our January 2016 and April 2015 issue for background of Annuity model]
Railway has decided to award three projects under BOT annuity model to build third line between Nagpur and Wardha (both in Maharashtra),
Kazipet (Telangana) and Balharshah (Maharashtra) and,
Bhadrak and Nergundi (both in Odisha).
Problems with existing BOT Model:

Under the existing public private partnership model called build-operate-transfer, the developer absorbs
most of the risksfinancial, operations and maintenance and revenue.
With slowdown in the economy, existing projects struggle to service their debt.
BOT Annuity Model for Rail Projects:

The private developer gets a revenue guarantee of 80 per cent of projected revenue at the time of
bidding.
The developer gets a full right to revenue between 80 and 120 per cent and the Indian Railways do not
take any share from it.
Only when actual revenue is above 120 per cent, the additional receipts are shared with the Indian
Railways in a staggered manner, the official added.

9.24. PDS REFORMS

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The Government has achieved significant mile stones in the reforms of PDS. Almost 100 % (99.9%) ration
cards have been digitized across the country.
Over 42 % ration cards have been even linked with Aadhaar cards and Point of Sale Devices, to keep
electronic record of allocation to the beneficiaries, have been installed in over 77,000 ration shops.
These measures will help making PDS more transparent and leak proof.
This is forward step towards digital India initiative.

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9.25. TAX POLICY COUNCIL AND TAX POLICY RESEARCH UNIT


Following first report of Tax Administration Reforms Commission (TARC), the government has taken a decision to
create Tax Policy Council (TPC) and Tax Policy Research Unit (TPRU).
Tax Policy Council headed by Union Finance Minister has been created to have :

Consistent and coherent approach to the issue of tax policy and for the need to have an interdisciplinary
approach.
It will look at all the research findings coming from Tax Policy Research (TPRU) Unit and
Suggest broad policy measures for taxation and will be advisory in nature, which will help the
Government in identifying key policy decisions for taxation.

Tax Policy Research Unit (TPRU):

Till now, the two boards i.e. CBDT and CBEC used to consider tax policy and related legislations
independently in the Tax Research Unit (TRU) and Tax Policy and Legislation (TPL) wings. Their
recommendations lacked coherence and often reached finance minister in separate channels.
To solve above problem, TARC recommended that Tax Council supported by a common Tax Policy and
Analysis (TPA) unit should be established to cater to needs of both direct and indirect taxes.
Considering above, the government has created a Tax Policy Research Unit (TPRU) comprising officers
from the Boards as well as tax administrators, economists, and other specialists such as statisticians, tax
law experts, and operation research specialists and social researchers.
The TPRU will prepare for every tax proposal an analysis covering the following three points:o The legislative intent behind the proposal, i.e., why this proposal is being framed and what is the
policy objective.
o Expected increase or decrease in tax collection through the proposal; and
o The likely economic impact (positive or negative) through the proposal (other than the effect on tax
collection).

9.26. UNIFORM SERVICES: WOMEN

Punjab and Haryana HC held that women couldnt be permanently barred from joining the Army Medical
Corps for reason of pregnancy.
HC concluded that forcing a choice between bearing a child and taking up employment interferes both
with a womans reproductive rights as well as her right to employment, and that such an action has no
place in modern India.
The Directorate General, Armed Forces Medical Services, argued that they could not allow a woman to
join if she was carrying a child on the date of joining duty and she would have to undergo the entire
process from scratch after she had given birth.

Similar Practices in other Forces:

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Forces like the Indo-Tibetan Border Police, uniformed combatant women doctors are allowed to flexibly
join service after the birth of a child.
The guidelines of the Ministry of Home Affairs also provide that
o Women should be considered fit for reporting for duty even during pregnancy for all services which
do not involve physical training.
o While in cases of services with physical training, the vacancy should be kept reserved along with
protection of seniority and that such women should be able to join service six weeks after
confinement.

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9.27. INDIAS FIRST GENDER PARK


The park is an initiative of the Social Justice Department of the Kerala government to bring together the state,
academia and civil society on a common platform to address the gender issues.
Objectives of the Institution:

To generate a space for women development activities, emphasizing entrepreneurship in service and
cultural activities.
To undertake research and documentation of the history of the role of women in every field of society
of Kerala.
To strengthen women development activities undertaken by various departments/agencies/civil society
movements.
To create an environment to share global knowledge and experiences in reducing gender inequalities
It would cover issues pertaining to all three genders in accordance with the 2015 gender and
transgender policies of the state government.

9.28. BAN ON CHILD PORNOGRAPHY


Why in news?

The Supreme Court on Friday asked the central government to


inform the court on how it plans to ban child pornography on
the Internet.
The question came during the hearing of a public interest
litigation filed to ban pornography websites in the country.

Apex Courts Stand:

The Indian Penal Code and the


Information Technology (IT) Act
prohibit
the production
or
transmission of so-called obscene
material even though there is no
law
explicitly
prohibiting
pornography.
Publishing or transmitting obscene
material electronically can carry a
three years sentence, if an offender
is convicted under the IT Act.

The Centre shall file affidavit to suggest ways and means to


curb child pornography.
It said that one needs to draw a distinct line between art and
obscenity and child pornography cannot be justified in the name of freedom of expression.
The parameters regarding pornography has to be decided and it has already held in other cases that
freedom of speech and expression as envisaged under article 19 (1)(a) of the Constitution is not
"absolute" and is subject to reasonable restrictions.
It asked the Centre to seek advice from the experts and suggestions from the National Commission for
Women (NCW) on banning of websites dealing with adult and child pornography.

Government's Stand:

As per Government that agencies like Interpol and the CBI are taking necessary steps to block sites that
specifically deal in child pornography.
The government has also maintained that it cannot (and will not regulate all pornography) but block only
child pornography.
It not possible to ban pornographic websites as they are not under any country's jurisdiction

Why it is difficult to ban porn?

82

To tackle pornography, the government has usually relied on getting Internet service providers (ISPs) to
block access to a particular websites URL. This method is usually ineffective as most such websites
continue to operate by simply changing their URLs.

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9.29. REVAMP OF REHABILITATION SCHEME

To liberate children, transgender and others trapped in


Bonded Labour System (Abolition) Act,
human trafficking, beggary or any such forms of forced
1976
labour, the Union government has proposed a major
At present, executive magistrates are
revamp of the rehabilitation scheme for rescued bonded
empowered to conduct a summary trial of
workers, raising aid from the present Rs. 20,000 to Rs. 3
offences to release bonded labourers and
lakh.
issue release certificates under the Bonded
Also, the government has finalized a proposal to
Labour System (Abolition) Act, 1976.
institute a three-tier rehabilitation funding scheme.
The penalties under the Act include
Under this scheme rescued transgender or disabled person
imprisonment for a term of up to 3 years
will get Rs. 3 lakh, women or children Rs. 2 lakh and adult
and a fine of up to Rs. 2,000.
men Rs. 1 lakh.
To ensure a sustainable flow of money, a significant chunk of the rehabilitation sum will be credited to
the bank accounts of the rescued persons in the form of fixed monthly deposits.
Under the new system, the Collector will be able to keep a tab on the rescued workers as he or she will
have to sign the money deposit slip every month.

9.30. SUNRISE PROJECT

Injecting drug users (IDUs) continue to be the prime factor for the spread of HIV-AIDS in north-eastern
region even as the government has increased medical facilities for testing and treatment.
Five-Year SUNRISE Project has been launched aiming at upscaling of HIV interventions in the north-east
region with special focus on IDUs in 20 priority districts.
The Center for Disease Control, a US government body is supporting this programme, which will adopt
innovative strategies like increasing availability of safe needle, syringes in remote areas, community
based testing for HIV and pilot studies on 'take home' policy for opioid substitution drugs.
Budget for the National AIDS Control Programme has been increased by 15 percent during the current
Financial Year.
The government has also decided to make it a Central Sector Scheme in which all the funds would be
provided by the Center.

9.31. INTEGRATION OF HOMOEOPATHY/YOGA WITH NPCDCS

Ministry of AYUSH and Ministry of Health & Family Welfare launched the pilot project Integration of
Homoeopathy/Yoga with National Programme for Prevention and Control of Cancer, Diabetes,
Cardiovascular Diseases & Stroke (NPCDCS) in Krishna District at Gudivada near Amaravathi, AP.
The program aims to aid in reduction of Non Communicable Diseases (NCDs) burden by providing
primary prevention of common NCDs through an integrated approach of
o health education (promotion of healthier life styles including yoga),
o timely screening of population for early detection/diagnosis of NCDs and
o Early management of NCDs through homoeopathic treatment alone or as add on to standard care.

9.32. REPORT ON ROHINGYAS COMMUNITY


Brief of findings:

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Rohingya crisis became the Regional issue involving countries of South and Southeast Asia.
Around 40,000-50,000 refugees are reported to settle in India.
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The Rohingyas from Bangladesh prefer the camps in Jammu, Hyderabad and Delhi for better economic
opportunities.
Disintegration of the refugee family and the accompanying trauma are major issues

Indias perspective:

At a time when refugee crisis is spreading over Europe, we may also suffer similar crisis involving the
Rohingyas.
India is not party to the 1951 Refugee Convention or its 1967 Protocol and does not have a national
refugee protection framework
The Government of Indias approach to refugee issues results in different standards of protection and
assistance among refugee groups.

UPSC mains 2013


How illegal trans-border migration does pose a threat to Indias security? Discuss the strategies to curb this,
bring out the factors which give impetus to such migration.

9.33. WILFUL DEFAULTERS

The Standing Committee on Finance recommended that state-owned banks make public the names of
their respective top 30 stressed accounts involving wilful defaulters.
This will act as a deterrent and enable banks to withstand pressure and interference from various
quarters in dealing with the promoters for recoveries or sanctioning further loans.
The committee recommended amending the RBI Act and other laws and guidelines.

Background:

Willful defaulters owe PSU banks a total of Rs.64,335 crore or 21 per cent of total non-performing assets
(NPA).
The banks have evidently failed to notice the early signs of stress on the loans disbursed by them.
The sharpest increase in NPAs in the banking industry was observed in mid-size corporates.
Reports points to the concerning increase in stressed loans portfolio of the banks (nearly Rs. 6.8 lakh
crore as against Rs. 5.91 lakh crore in the Sep,14).

Other Recommendations:

The committee also recommended that specially-tasked committees be mandated to continually


monitor the status of large loan portfolios and submit periodical reports to government and Parliament
on the findings.
Since diversion of funds by promoters to unrelated businesses and poor pre-sanction due-diligence have
been cited as key reasons for bank loans turning toxic, the committee said it was of the view that
forensic audits should be made mandatory for specific class of borrowers.

9.34. INDIAN BASMATI RICE

84

According to the recent judgment passed by IPAB ,basmati rice cultivated in the Indo-Gangetic Plains on
the foothills of the Himalayas, covering areas of the rice grown in Punjab, Haryana, Himachal Pradesh,
Delhi, Uttarakhand, Western U.P. and two districts of Jammu and Kathua, will now be issued the GI tag.

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Why it is important?

Article 22 of the TRIPS agreement says that unless a


geographic indication is protected in the country of its origin,
there is no obligation for other countries to extend the
reciprocal protection.
It confers legal protection and prevents misuse of a registered
GI.
Also, the GI tagging boosts exports and helps in promoting
economic prosperity of the producers.

Background of GI in India:

What is Geographic Indication (GI)?


The GI tag is an indication which is
definite to a geographical territory. It is a
place name used to identify the origin
and quality, reputation or other
characteristic of the products. Ex :Champagne.
It is used for agricultural, natural and
manufactured goods. For a product to
get GI tag, the goods need to be
produced or processed or prepared in
that region. It is also essential that the
product has special quality or reputation.

The Indian Parliament passed the Geographical Indications of


Goods (Registration and Protection Act) in December 1999
which aimed at providing a registration and also protection of GI of the goods in India.
This Act is administered by the Controller General of Patents, Designs and Trade Marks, who is also the
Registrar of Geographical Indications.

9.35. BHARAT NET PROJECT


Why in news?

TRAI recommended for PPP model in form of Build-Own-Operate Transfer/Build-Operate-Transfer


models for roll out of Bharat Net project.
BharatNet project aims to connect all households of India, particularly in rural areas, through broadband
(2-20 Mbps) by 2017. It is a remodelled version of National Optical Fibre Network(NOFN) started in 2011
to connect all 2,50,000 gram panchayats
Bharat Broadband Network Limited (BBNL), a special purpose vehicle, has been set up under the telecom
ministry for the establishment, management and operation of NOFN.
BSNL, Railtel and Power Grid are executing agencies for the project in the ratio of 70:15:15.

Need for PPP:

Rural broadband provision is prone to market failure as well as Government failure (delay in
implementation of the project)
TRAI wants to include private sector companies in not just deployment but also implementation of the
optic fibre cable (OFC) network.

9.36. THE AWARE PROJECT


The Atmospheric Radiation Measurement West Antarctic Radiation Experiment (AWARE) project is
located at McMurdo station in Antarctica.
It has been undertaken by the United States to study the influence of weather patterns in Antarctica over
mid-tropics and tropics latitude.
Antarctica contains 90 percent of the ice on Earth and could raise sea levels worldwide if it were to melt.
The study is needed to improve Earth system models to predict how the climate in the region will continue
to change.

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Significance of Antarctica:
Atmospheric circulation
a) The temperature gradient between the equator and the poles essentially drives the atmospheric
circulation in the southern hemisphere in the form of three north-south systems: the polar cell, the
mid-latitude Ferrel cell and the tropical Hadley cell. These cells are dynamically linked together.
b) Warming of Polar Regions changes the location of the boundary between the Polar and Ferrel cells.
The strength of tropical circulations also changes.
Increasing precipitation
a) A change in Antarctic cloud properties that led to a warming of Antarctica weakened the Southern
Hemisphere Ferrel cell, and allowed the Hadley Cell on the other side to strengthen, which in turn
resulted in more rainfall due to increased latent heat release over Southern Hemisphere tropical
regions.
Climate warming: An expanding Hadley cell is generally expected to result from a globally warming
atmosphere, so the Antarctic warming from cloud property change is a positive feedback on a warming
climate
Global heat sink: Antarctica acts as a global heat sink as there is no insolation (i.e. solar radiation reaching
the surface) but it loses more energy to space. Changes in this would affect global climate.
Wind system: The wind system in Antarctica prevents warm air from the northern latitudes of the
southern ocean from reaching the interior of eastern Antarctica which remains a cold, isolated desolate
region, losing energy to space.

9.37. WASTE WATER TREATMENT IN URBAN AREAS


Importance:

To meet the water problem: The water crisis in India is increasing at an alarming rate especially in cities.
As per the 2013 CAG Report there is an annual shortage of 302 Million Cubic Meters of water in Delhi.
Environmental impact: Untreated waste water pollute the streams and have adverse environmental,
agricultural and health impacts
Problems with alternate mechanisms: The current method of reliance on groundwater extraction is not
sustainable
In this light waste water treatment provides an interesting alternative.

Waste water treatment in India:

There are two types of treatment in India- Sewage treatment & Effluent Treatment
d) Sewage treatment: It includes treating of water which contains waste generated by human beings
e) Effluent treatment: Includes waste generated from industrial segments
The norms and guidelines are primarily set by Central Pollution Control Board (CPCB)

Issues with present waste water treatment system:

Low capacity: Only around 31% of wastewater generated and that too with huge inter city variations.
Technological backwardness of treatment plants
Non-competitive pricing: Thus, it does not appeal to industries.
Treatment quality is low: Use of treated water limited to some low-end industrial purposes like
gardening, service water.
Distribution network is weak: to transport treated water

Solutions:

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There is an urgent need to develop new and better technology for treatment
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Designing systems that work for local and specific needs


A specific policy dedicated to wastewater treatment

9.38. AVIATION SECURITY FORCE


Why in news?

Due to recent tussle between CISF and AAI staffs in Calicut Airport
Ministry of Civil Aviations proposal for a dedicated security force called the Civil Aviation Security Force
for manning the security of airports.
Aviation Security Group of the CISF is taking care of security of 53 Airports.

Why there is need?

Aviation security, in contrast to general security, is a highly technical task.


Aviation security is to be carried out as per set standards, contained in Annexure 17 to Chicago
Convention of International Civil Aviation Organization (ICAO)
Question marks over the effectiveness of the existing coordination mechanism between various agencies
involved in providing security at airports.
The post of the Commissioner of Security (Civil Aviation) under Bureau of Civil Aviation Security (BCAS)
lying vacant since last 3 years.

Copyright by Vision IAS


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form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
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VISIONIAS
www.visionias.in

CURRENT AFFAIRS
MARCH 2016

Copyright by Vision IAS


All rights are reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Vision
IAS.
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TABLE OF CONTENTS
1. POLITY AND GOVERNANCE __________________________________________________________ 6
1.1. The Bureau of Indian Standards Bill 2015 ___________________________________________________ 6
1.2. Aadhaar Bill, 2016 _____________________________________________________________________ 7
1.3. The Real Estate (Regulation and Development) Bill 2013 ______________________________________ 9
1.4. Pradhan Mantri Ujjwala Yojana (PMUY) ___________________________________________________ 10
1.5. Prohibition of Social Boycott ____________________________________________________________ 11
1.6. Garv App ____________________________________________________________________________ 11
1.7. Gram Uday to Bharat Uday Abhiyan ______________________________________________________ 11
1.8. Report on Medical Education Governance _________________________________________________ 12
1.9. Minority Status of Educational Institutes __________________________________________________ 13
1.10. Presidents Rule in Uttarakhand ________________________________________________________ 14
1.11. Judges Appointment _________________________________________________________________ 15
1.12. Sutlej-Yamuna Link (SYL) Canal Issue ____________________________________________________ 16
1.13. Amendment in "Motion of Thanks" by Rajya Sabha ________________________________________ 16

2. INTERNATIONAL/INDIA AND WORLD _________________________________________________ 18


2.1. India-Pakistan : Sir Creek Dispute ________________________________________________________ 18
2.2. India and Seychelles ___________________________________________________________________ 19
2.3. India and Japan ______________________________________________________________________ 20
2.4. India-Bangladesh _____________________________________________________________________ 20
2.5. Indias Aid Diplomacy__________________________________________________________________ 21
2.6. Raisina Dialogue 2016 _________________________________________________________________ 22
2.7. BIMSTEC ____________________________________________________________________________ 22
2.8. Ashgabat Agreement __________________________________________________________________ 23
2.9. 8th BRICS Summit_____________________________________________________________________ 23
2.10. 37th Session of The SAARC Council of Ministers ___________________________________________ 23
2.11. Parliamentary Election in Iran __________________________________________________________ 24
2.12. Nepal and China _____________________________________________________________________ 24
2.13. Democratic Transition in Myanmar _____________________________________________________ 25
2.14. USA President Visit to Cuba ____________________________________________________________ 26
2.15. Global Energy Architecture Performance Index Report ______________________________________ 27
2.16. The World Happiness Report, 2016 ______________________________________________________ 27
2.17. Shanghai Cooperation Organization (SCO) ________________________________________________ 27
2.18. Four-nation Counter-Terror Mechanism __________________________________________________ 28

3. ECONOMY _______________________________________________________________________ 29
3.1. Income Declaration Scheme ____________________________________________________________ 29
3.2. National Agriculture Market ____________________________________________________________ 29
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3.3. Hydrocarbon Exploration and Licensing Policy (HELP) ________________________________________ 30


3.4. PSB Consolidation and Merger __________________________________________________________ 31
3.5. Irrigation Thrust in Budget ______________________________________________________________ 32
3.6. DIPAM-Department of Investment and Public Asset Management _____________________________ 33
3.7. Licensing of Virtual Network Operators ___________________________________________________ 34
3.8. Niti Aayog Report on MSP ______________________________________________________________ 34
3.9. 100 Per cent FDI in E-Commerce _________________________________________________________ 36
3.10. Need for Paradigm Shift in FRBM act ____________________________________________________ 37
3.11. Deendayal Upadhyay Swaniyojan Yojana _________________________________________________ 38
3.12. Indian Pharmaceutical Industry_________________________________________________________ 39
3.13. Setu Bhartam Project _________________________________________________________________ 39
3.14. DBT in Fertilizer Subsidy ______________________________________________________________ 40
3.15. Google Tax: Equalization Levy on Digital Economy _________________________________________ 40

4. SOCIAL ISSUES____________________________________________________________________ 41
4.1. Poor Implementation of RTE Act _________________________________________________________ 41
4.2. Mahila E-Haat ________________________________________________________________________ 41
4.3. Protecting Good Samaritans ____________________________________________________________ 42
4.4. Triple Talaq __________________________________________________________________________ 42
4.5. Universal ID for Persons With Disability ___________________________________________________ 42
4.6. Women Transforming India Campaign ____________________________________________________ 43
4.7. MGNREGA-M Platform ________________________________________________________________ 43
4.8. Adoption And Traficking Of Children _____________________________________________________ 44

5. SCIENCE AND TECHNOLOGY _________________________________________________________ 45


5.1. The Svalbard Global Seed VAult _________________________________________________________ 45
5.2. Trace GAs Orbiter (TGO) Mission ________________________________________________________ 45
5.3. Alpha Go ____________________________________________________________________________ 45
5.4. Touch DNA __________________________________________________________________________ 46
5.5. Tintorang ___________________________________________________________________________ 46
5.6. Treasores Project _____________________________________________________________________ 46
5.7. NASA Insight Mission __________________________________________________________________ 47
5.8. Anti-Microbial Resistance Fund __________________________________________________________ 47
5.9. IRNSS-1F ____________________________________________________________________________ 48
5.10. Indias first indigenous Sonar Dome _____________________________________________________ 48
5.11. Bedaquiline_________________________________________________________________________ 48
5.12. Photodynamic Therapy _______________________________________________________________ 49
5.13. Ban on Combination Drugs ____________________________________________________________ 49
5.14 Superflares__________________________________________________________________________ 50
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6. INTERNAL SECURITY/LAW AND ORDER _______________________________________________ 51


6.1. District Reserve Battalions ______________________________________________________________ 51
6.2. Tackling Cross-Border Terrorism in SAARC Nations __________________________________________ 51
6.3. 8th International India Security Summit ___________________________________________________ 52
6.4. Indias Cyber Security Architecture _______________________________________________________ 53
6.5. Indias Cyber Security Challenges ________________________________________________________ 54
6.6. New Governance Architecture for ICANN __________________________________________________ 55
6.7. Operation Veerangana _________________________________________________________________ 56
6.8. Terror Attack in Belgium _______________________________________________________________ 57
6.9. Justice Vishnu Sahai Inquiry Commission __________________________________________________ 57
6.10. Exercise Force 18 ____________________________________________________________________ 58
6.11. Iron Fist Exercise 2016 ________________________________________________________________ 58

7. ECOLOGY AND ENVIRONMENT ______________________________________________________ 59


7.1. CategorizatioN of Polluting Industries ____________________________________________________ 59
7.2. Yamuna Floodplains ___________________________________________________________________ 59
7.3. Climate EnginEering Solutions ___________________________________________________________ 60
7.4. New E-Waste Management Rules ________________________________________________________ 60
7.5. New Plastic Waste Management Rules____________________________________________________ 62
7.6. Agasthyamala Biosphere Reserve ________________________________________________________ 62
7.7. Fly Ash______________________________________________________________________________ 63

8. CULTURE ________________________________________________________________________ 64
8.1. Rock Paintings Discovered in Kondane Caves _______________________________________________ 64
8.2. Policy to Adopt World Heritage Sites _____________________________________________________ 64
8.3. Chola Sculpture of Chandesvarar ________________________________________________________ 65
8.4. Panchteerth: B R Ambedkar ____________________________________________________________ 65
8.5. Siddi Tribe ___________________________________________________________________________ 66
8.6. Toda tribe ___________________________________________________________________________ 66
8.7. Asur Tribe ___________________________________________________________________________ 66
8.8. Bonda Tribe _________________________________________________________________________ 66
8.9. Jagor folk dance ______________________________________________________________________ 67
8.10. Zardozi ____________________________________________________________________________ 67
8.11. Baul _______________________________________________________________________________ 67

9. ALSO IN NEWS ___________________________________________________________________ 68


9.1. Carriage by Air (Amendment) Bill, 2015 ___________________________________________________ 68
9.2. Ranking on Governance of States in India _________________________________________________ 68
9.3. Ethics Committee in Lok Sabha __________________________________________________________ 68
9.4. Kayakalp Award Scheme _______________________________________________________________ 69
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9.5. Changes in Government Advertisements Rules _____________________________________________ 69


9.6. Warnings on Tobacco Products __________________________________________________________ 69
9.7. Changes in Atal Pension Yojna (APY)______________________________________________________ 70
9.8. Infrastructure & Urban Development: World Economic Forum Report __________________________ 70
9.9. Bank Board Bureau ___________________________________________________________________ 71
9.10. Capital Infusion in Banks ______________________________________________________________ 71
9.11. Employees Provident Fund (EPF) Tax and Rollback _________________________________________ 72
9.12. Post-Harvest Losses of Farm Produce ____________________________________________________ 72
9.13. Reduction of Bt Cotton Royalty Fees by 74% ______________________________________________ 72
9.14. Project Based Rating _________________________________________________________________ 73
9.15. Reforms in FDI Guidelines _____________________________________________________________ 73
9.16. Falling oil Prices and its Impact on Indian Economy _________________________________________ 74
9.17. Reforms in Indian Agriculture __________________________________________________________ 75
9.18. Bacterium Species Capable for Breaking Down Plastic Identified ______________________________ 75
9.19. Kakrapar Nuclear Plant Shutdown After Coolent Leakage ____________________________________ 76
9.20. World Water Day ____________________________________________________________________ 76
9.21. Microplastics/Microbeads _____________________________________________________________ 77
9.22. Women Empowerment Uniform Civil Code ______________________________________________ 77
9.23. Indigenous Rotavirus Vaccine __________________________________________________________ 78
9.24. E-mail Inventor ______________________________________________________________________ 79
9.25. UN Human Rights Council _____________________________________________________________ 79

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1. POLITY AND GOVERNANCE


1.1. THE BUREAU OF INDIAN STANDARDS BILL 2015
Why in News?

During budget session of Parliament Rajya Sabha passed the Bureau of Indian Standards Bill, 2016. Lok Sabha
had already passed the Bill.
The new Bill will repeal the existing Bureau of Indian Standards Act, 1986.

Key Features:

Scope of the Bureau of Indian Standards: The Bill includes goods, services and systems. Under the 1986
Act, standardization, marking and certification processes applied to certain articles and processes only.
Establishment of the Bureau of Indian Standards:
The Bureau of Indian Standards will be a national body which will formulate, implement and certify
certain standards of quality for goods, services, articles, processes and systems.
The Bureau will constitute technical committees of experts for the purpose of formulating such
standards.
The Bill constitutes a Governing Council which would be responsible to look at the general
superintendence, direction and management of the Bureau.
Certification:
The Bureau would be a licensing authority for quality standards.
The Bureau will establish and maintain testing laboratories for quality assurance and conformity
assessment of goods, articles, services, etc.
A hallmark will be used to certify precious metal articles including silver, gold, platinum, and palladium
or their alloys.
The Bill allows the central government to notify certain goods, articles, etc, which will need to compulsorily
carry a standard mark. For example goods or articles necessary for public interest, safety of the
environment, prevention of unfair trade practices, national security etc.
The Bureau may recall a good or article that does not conform to the requirement of a particular standard.
The penalty for improper use of the Indian standard mark will be a fine of up to 5 lakh rupees.
When a company commits an offence under the Bill, the persons responsible for or in charge of the company
will be presumed guilty irrespective of whether the offence was committed without their knowledge,
consent or connivance.
Appeals may be made to the Director General of the Bureau. A further appeal against the order of the
Director General may then be made to the central government.

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1.2. AADHAAR BILL, 2016


Why in News?

The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016, got
Parliaments approval.
The Bill intends to provide statutory backing to Aadhaar for targeted delivery of subsidies and services to
individuals residing in India.

Features of the Bill

Every resident is entitled to obtain an Aadhaar number. A resident is a person who has resided in India for
182 days, in the one year.
To perform the functions related to Aadhaar card, Unique Identification Authority (UID) will be formed.
Composition of UID will be chairperson, two part-time members and a
To obtain an Aadhaar number,
chief executive officer. The chairperson and members should have
an individual has to submit his
experience of at least 10 years in matters like technology, governance, Biometric
(photograph,
etc.
finger print, iris scan)
Important functions of the UID authority are:
Demographic (name, date of
Specifying demographic and biometric information to be collected
birth, address) information.
during enrolment.
The Unique Identification
Assigning Aadhaar numbers to individuals
Authority (UID) may specify
Authenticating Aadhaar numbers
other
biometric
and
Specifying the usage of Aadhaar numbers for delivery of subsidies
demographic information to
and services.
be collected by regulations.
Biometric information (finger print, iris scan and other biological
attributes) will be used only for Aadhaar enrolment and authentication purpose and will not be shared with
anyone.
Only in cases pertaining interest of national security and on the order of court information will be revealed.
A person may be punished with imprisonment up to 3
years and minimum fine of Rs. 10 lakh for unauthorised
access to centralized database, including revealing any
information stored.

Benefits of this bill

Wrong/fake beneficiaries have been a major issue with


many schemes; hence it is expected to prevent leakages
in the distribution system.
It is single-most important method of decreasing
massive political and bureaucratic corruption.
It will enable delivery of much higher level of income
transfers to the poor.

Issues surrounding the bill

Due to Introduction of the bill as money


bill, it has bypassed Rajya Sabha which
could have provided valuable inputs during
discussion.
It has also seen as against the spirit of
cooperative federalism because Rajya
Sabha is considered as representing the
voice of states.
Section 7 of the bill gives the government
powers to make Aadhaar mandatory for a
wide range of facilities and services.
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Section 57 enables the government to impose Aadhaar identification in virtually any other context that is not
mentioned in the bill.
Loss of privacy: Every move of each individual can be tracked and this is against the constitutional spirit of
right to privacy that comes under right to life. Right to privacy is an essential foundation of the freedom to
dissent.
If biometrics data are landed in unsafe hands. It may lead to mass forgery, misrepresentation and other
associated frauds.
Weak cyber security infrastructure put the personal data of citizen under threat and makes them
vulnerable.

Challenges

Interoperability between platforms in case other platforms are used to deliver benefits.
The tendency to adopt non-verifiable alternative platforms, bypassing the Aadhaar, can lead to abuse.
Although disbursements through DBT using Aadhaar can be quickly effected however withdrawals would
require a significantly faster pace of ensuring reliable connectivity, covering all Panchayats.

Money Bills: Article 110 of the Constitution deals with the definition of money bills. It states that a bill is deemed
to be a money bill if it contains only provisions dealing with all or any of the following matters:
1. The imposition, abolition, remission, alteration or regulation of any tax,
2. The regulation of the borrowing of money by the Union government,
3. The custody of the Consolidated Fund of India or the contingency fund of India, the payment of
moneys into or the withdrawal of money from any such fund,
4. The appropriation of money out of the Consolidated Fund of India,
5. Declaration of any expenditure charged on the Consolidated Fund of India or increasing the
amount of any such expenditure,
6. The receipt of money on account of the Consolidated Fund of India or the public account of
India or the custody or issue of such money, or the audit of the accounts of the Union or of a
state,
7. Any matter incidental to any of the matters specified above.
Other provisions:

If any question arises whether a bill is a money bill or not, the decision of the Speaker of the Lok Sabha is
final.
His decision in this regard cannot be questioned in any court of law or in the either
House of Parliament or even the president.
When a money bill is transmitted to the Rajya Sabha for recommendation and presented to the president
for assent, the Speaker endorses it as a money bill.
A money bill can only be introduced in the Lok Sabha and that too on the recommendation of the
president.
Every such bill is considered to be a government bill and can be introduced only by a minister.

Prelims 2013
What will follow if a Money Bill is substantially amended by the Rajya Sabha?
(a) The Lok Sabha may still proceed with the Bill, accepting or not accepting the recommendations of the Rajya
Sabha
(b) The Lok Sabha cannot consider the Bill further
(c) The Lok Sabha may send the Bill to the Rajya Sabha for reconsideration
(d) The President may call a joint sitting for passing the Bill
Solution: Amendment in bill by Rajya Sabha do not have any impact and the Lok Sabha may still proceed with the
Bill, accepting or not accepting the recommendations of the Rajya Sabha, hence option A is correct.

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1.3. THE REAL ESTATE (REGULATION AND DEVELOPMENT) BILL 2013


Why in News?

Recently, Real Estate (Regulation and Development) Bill 2013, was


approved by the Rajya Sabha.

Background

The real state sector is the second largest employer after agriculture
and it contributes nine per cent to the national GDP.
Despite this, sector has been marked by a lack of trust and
confidence between consumers and developers, which has had an
adverse impact on investments in the sector.
As per the Global Real Estate Transparency Index, India falls in the
semi-transparent category.

Provisions

Mandatory registration with real estate regulatory authorities


(RERA) of projects of at least 500 square meter area, or those
comprising eight flats.
The regulators website should have all the necessary public
disclosure of details related to each project.
And also, a quarterly progress report will have to be made public on the website.
Projects under construction are also required to be registered with the RERA.
Project developers will now be required to deposit at least 70% of their funds, including land cost, in a
separate escrow account to meet the cost of construction.
A provision for imprisonment up to three years in case of promoters and up to one year in case of real estate
agents and buyers for violation of orders of appellate tribunals or monetary penalties or both.
A clear definition of carpet area and buyers will now be paying only for the carpet area and not the super
built-up area.
Appellate tribunals will be required to adjudicate cases within 60 days and regulatory authorities will have
to dispose of complaints in 60 days.
Regulatory authorities can also register projects to be developed beyond urban areas, promote a singlewindow system of clearances, and grade projects and promoters besides ensuring digitization of land
records. They will also have to draft regulations within three months of formation.
The builders would also be responsible for fixing structural defects for five years after transferring the
property to a buyer.
It will regulate both commercial and residential projects and set up state-level regulatory authorities to
monitor real estate activity.

Significance

It will protect consumer interest and ensure efficiency in all property-related transactions,
It will also improve accountability of developers, boost transparency and attract more investments to the
sector.
This bill is in line with the governments urban makeover plan along with initiatives to boost affordable
housing through Housing for All By 2022 and Smart City project.

Way forward

It is important to note that this Central legislation has to be implemented by the States.
The responsibility of providing the enabling ecosystem rests with the states, hence the real challenge is in
the manner the states implement this legislation.

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1.4. PRADHAN MANTRI UJJWALA YOJANA (PMUY)


Why in News?

Recently, the Cabinet Committee on Economic Affairs on approved a scheme to give free cooking gas
connections to poor women.

Background

Poor in India have limited access to Clean fuel (LPG).


Use of fossil fuels and conventional fuel like cow dung has a serious health implication for women and
Children.
According to WHO estimates about 5 lakh deaths in India due to unclean cooking fuel.
Chullahs produce PM 2.5, particles under 2.5 microns that lodge in the lungs and cause cancer and TB.
Biomass smoke makes people blind. One NFHS study of women showed that blindness was 8,967 per lakh
population in biomass homes compared with 6,152/lakh in cleaner-fuel homes.
Indoor air pollution is responsible for significant number of acute respiratory diseases in young children.

Features

This is the first ever welfare scheme by the Ministry of Petroleum and Natural Gas.
5 Crore LPG connections will be provided to BPL families with a support of Rs 1600 each household in next
three years.
About 1.50 Crore BPL families will be benefited under the scheme in the year 2016-17.
Connections will be given in the name of Women beneficiaries.
Identification of BPL families will be made in consultation with State Governments and Union territories.
EMI Facility will be provided for meeting the cost of stove and refill cost.

Benefits

Providing LPG connections to BPL households will ensure universal coverage of cooking gas.
It will reduce the serious health hazards associated with cooking based on fossil fuels
It will also be one more step towards empowerment of women and protect their health.
The scheme is also expected to provide employment to rural youth in supply chain.
It will also reduce rural female workload of collecting firewood, and reduce deforestation.

Challenges:

Each BPL household would have to spend up to Rs.5,000 each year on LPG even at current subsidised prices
in addition to a one-time cost of Rs.1,800 for the connection. This cost may be unaffordable to many.
Lack of distribution systems especially in rural areas.
There are many inclusion and exclusion errors in BPL lists as observed by various civil society members.
Also BPL is a narrow definition of deprivation and many non-BPL households may also not be able to afford
LPG connections.

Way Forward:

10

There is a need to widen the net to cover more people under this scheme.
Ensure reliable, sustained and last-mile supply : The distribution system needs to be strengthened to be able
to meet the expected increase in demand, particularly in rural areas, as non-availability of fuel could push
people back towards using solid fuels.
Effective monitoring and grievance redressal systems.
The scheme should be accompanied by a focused public relations campaign, to build awareness so that
actual usage of LPG can happen.

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1.5. PROHIBITION OF SOCIAL BOYCOTT


Why in News?

Recently, the Maharashtra cabinet approved a legislation (Prohibition of Social Boycott Act,2015) to tackle
social ostracism in the name of caste, creed, community and rituals.
Maharashtra will be the first state in the country to enact a law against social boycott of individuals or
families by caste panchayats.

Reasons

There have been several cases reported from villages in the state of powerful community panchayats
declaring social boycott against individuals for marrying outside their caste.
There have been instances where village communities have enforced dress codes barring women from
wearing jeans, or have banned people from places of worship.

Significance

This initiative to evolve a stringent law will go a long way to address the social menace still prevalent in many
parts of the state.
It will be helpful in rooting out evil, outdated and unconstitutional practices of caste panchayats, gavaki and
community panchayats.
This legislation will play an instrumental role in restoring the values of the system where caste/community
barriers cannot be detrimental to human dignity.

1.6. GARV APP


Why in News?

Power ministry has launched the GARV (Grameen Vidyutikaran) app to provide the first hand information
with respect to village electrification programme in the country.

Key Highlights:

To speed up the work related to village electrification Grameen Vidyut Abhiyantas (GVAs or rural
electrification engineers) have been appointed.
Reports by these GVAs are shared through the GARV (Grameen Vidyutikaran) app with officials as well as the
public.

Significance

It will help in monitoring the work of power ministry and respective state authorities by the common man.
The GARV app puts pressure on State governments for timely and quality delivery.
This is very good step towards better accountability and transparency in ensuring village electrification.
It also gives an opportunity to media to scrutinize the rural electrification work of ministry/state
governments and seek accountability.

1.7. GRAM UDAY TO BHARAT UDAY ABHIYAN


Why in News?

Central Government in collaboration with States and Panchayats has decided to organize a Gram Uday Se
Bharat Uday Abhiyan (Village Self Governance Campaign) from 14th April to 24th April 2016.
Highlights of the Campaign:
The campaign aims to generate nation-wide efforts to increase social harmony across villages, strengthen
Panchayati Raj, promote rural development, and foster farmers progress.
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A Social Harmony Programme will be conducted in all gram panchayats, supported collaboratively by the
Ministry of Panchayati Raj and the Ministry of Social Justice and Empowerment.
In this programme, villagers will honour Dr. Ambedkar and resolve to strengthen social harmony.
Information regarding various government schemes to foster social justice will be provided.
Village Farmer Assemblies will be organized where information regarding schemes of agriculture such as
the Fasal Bima Yojna, Social Health Card etc. will be provided to farmers.
Also a national meeting of tribal women Gram Panchayat Presidents from Fifth Schedule Areas of 10 States
will be held at Vijayawada focusing on Panchayat and tribal development.

1.8. REPORT ON MEDICAL EDUCATION GOVERNANCE


Why in News?

Recently a Parliamentary Standing Committee (PSC) has submitted its report. It pointed out serious
irregularities in Medical Council of Indias (MCI) functioning and has called for changes of
"transformational nature".

Important Observations from the Report

The MCI's composition is opaque, and does not have diversified stakeholders and council has only medical
doctors.
The existing minimum standard requirements mandated by the MCI are
"irrational and artificially rigid standards" that are an impediment to the
establishment and expansion of medical colleges.
High capitation fees for getting a medical seat that goes up to Rs.50 lakhs.
In the current system of inspections there is no provision for constructive
feedback and the whole procedure is oriented towards penalising rather
than improving.

Suggestions for improvement

There are three areas where the committee has recommended drastic
changes to MCI:
a) The setup of MCI as a regulatory body,
b) The governance of medical colleges and
c) To curb corruption.
Bring diverse stakeholders such as public health experts and social
scientists, health economists, health NGOs in the governing body.
Inducting non-medical professionals of integrity and community health experts to regulatory bodies would
help advance public interest.
Separation of Power: Replace the existing MCI with an architecture consisting of four independent boards
to deal with curriculum development, teacher training, and standard setting for undergraduate and postgraduate education.

Medical Council of India (MCI):

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MCI is statutory body for establishing uniform and high standards of medical education in India.
It registers doctors to practice in India, in order to protect and promote the health and safety of the public
by ensuring proper standards in the practice of medicine.

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1.9. MINORITY STATUS OF EDUCATIONAL INSTITUTES


Why in news?

Recently, the central government reversed the stand of its predecessor Government and decided not to
support minority status for Aligarh Muslim University or Jamia Millia Islamia.

Background of the issue

AMU
In 1967 (Azeez Basha versus Union of India case), the Supreme Court ruled
that AMU was not a minority institution as it was set up by the British

Article 30, The


Constitution Of India
Right of minorities to
establish and administer
educational institutions

legislature, and not by Muslims.


In 1981, Parliament passed an AMU Amendment Act, which accepted that
AMU was set up by Muslims.
The Allahabad High Court ruled in 2005 that the 1981 Act was ultra vires
of the Constitution, and that AMU was not a minority institution.
However, Supreme Court stayed the Allahabad HC decision, so effectively,
AMU remained a minority institution.
Recently the Centre has filed a fresh affidavit in the Supreme Court
reversing the earlier position that the AMU, a Central university, cannot
be granted minority status.

Jamia Milia Islamia


The Law Ministry is learnt to have given the advice that the government can withdraw its earlier support
to the 2011 order of the National Commission for Minority Educational Institutions (NCMEI) which
declared JMI a religious minority institution
This advice is on the ground that the university was established through a central legislation and was
neither started nor run by the Muslim minority.

Issue of Minority Institution

While a number of minority educational institutions exist, there are issues with regard to minority
universities.
For incorporating any university, a statute is needed and thus it is done by the state.
Those against minority status for universities say that since, university is established by law and not
minorities, it is not a minority institution.
But, those in support argue that establishment is different from incorporation and for incorporation of a
university, law is needed irrespective of the fact that it was established by minorities.

Government stand

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The 2005 judgement of Allahabad High Court after hearing all the arguments ruled that it is not a minority
institution.
Centre stated that conferring minority status to AMU or any institution set up by a parliamentary enactment
or state enactment would be contrary to Article 15 of the Constitution, which prohibits discrimination by
state on grounds of religion.
Centre also states that minority status to AMU and Jamia Millia Islamia universities is unconstitutional and
illegal since these two government-run institutions were discriminating against Scheduled Castes,
Scheduled Tribes and Other Backward Classes by using the minority tag.

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National Commission for Minority Educational Institutions (NCMEI)


National Commission for Minority Educational Institutions was established in 2005.
It ensures rights of minorities to establish and administer educational institutions of their choice as
provided in the Article 30 of the Constitution of India.
The linguistic minorities are outside the purview of the NCMEI Act.
This Commission is a quasi-judicial body and has been endowed with the powers of a Civil Court.
It is headed by a Chairman who has been a Judge of the Delhi High Court and two members to be
nominated by Central Government.
The Commission has 3 roles namely adjudicatory function, advisory function and recommendatory
powers.

1.10. PRESIDENTS RULE IN UTTARAKHAND


What is the issue?

The political crisis in Uttarakhand started on March 18 when nine Congress MLAs defected to the opposition
and met Governor, and sought the dismissal of the Uttarakhand government.
Although the Governor provided a deadline of 28 March for floor test but Presidents rule was imposed a day
before citing constitutional crisis in the state.
According to Article 356, Presidents rule can be imposed in a state if a situation has arisen in which the
government of the state cannot be carried on in accordance with the provisions of the Constitution.

Issue of Appropriation Bill in the crisis

The Appropriation Bill is intended to give authority to Government to incur expenditure from and out of the
Consolidated Fund of India.
Being a money bill, failure of its passage amounts to no confidence of the legislature on the government and
the government has to resign.
In case of Uttarakhand, on the 18th of March Appropriation Bill was presented in the Assembly. Of the 71
member Assembly of which 67 were present, 35 voted against the Appropriation Bill and asked for division
of votes.
However, despite want of division of votes it was claimed that Appropriation Bill was passed by voice vote
and the bill was not presented to the governor for his assent.
This could imply following:
The Appropriation Bill sanctioning expenditure from 1st April 2016 was not approved.
Secondly, if the Appropriation Bill was defeated, the continuation of the Government subsequent to
18th March 2016 is unconstitutional.
This prompted the rebel MLAs and the opposition to meet the governor who sought for dismissal of
government following which the governor declared the house in suspended animation and gave the CM a
deadline of 28th March to prove his majority in the house.

Role of the speaker

The decision of the Speaker to go for a voice vote when majority members demanded a division.
In addition, declaring the Appropriation bill passed even when majority members voted in negative.
The decision of the speaker to disqualify members on ground of defection when the house was on
suspended animation, allegedly to change the composition of the house to enable the government to
survive the no confidence vote.

Supreme Case judgments related to imposition of Presidents rule in state

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S R Bomai vs Union of India


Art. 356 should be used very sparingly, and not for political gains.
The strength of the government should be tested on the floor of the house and not as per whims of the
Governor.
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Court cannot question the advice tendered by Council of ministers but it can scrutinize the ground for
that advice of imposition of Presidents rule in the state and may take corrective steps if malafide
intention is found.
Use of Art 356 is justified only when there is breakdown of constitutional machinery and not
administrative machinery.
Buta Singh case
The governors report could not be taken at face value and must be verified by the council of ministers
before being used as the basis for imposing Presidents rule.

Way Forward

Situation like those in Arunachal Pradesh, Uttarakhand etc provide an opportunity to introspect into issues
like neutrality in role of constitutional offices of Speaker and Governor. Further it is pertinent that guidance
provided in various Supreme Court Cases is followed in letter and spirit.

Note: To know more about Constitutional and Judicial Provisions with respect to Presidents rule, please refer
February 2016 current affairs.

1.11. JUDGES APPOINTMENT


Why in News?

A Group of Ministers (GoM) headed by External Affairs


Minister have finalized the new Memorandum of Procedure
(MoP) for appointment of Judges.

Background

After quashing the proposed National Judicial Appointments


Commission (NJAC), the Supreme Courts Constitution Bench
had asked the Centre to consult the CJI for drafting the new
memorandum for appointments of judges to the higher
judiciary.

Key highlights of MoP

For the first time, it has been asked to include merit and
integrity as prime criteria for appointment of judges to the
higher judiciary.
Evaluation of judgments delivered by a high court judge during the last five years and initiatives undertaken
for improvement of judicial administration should be a yardstick of merit for promotion as chief justice of a
high court.
It seeks to introduce performance appraisal as a standard for appointing chief justices of high courts and
Supreme Court judges.
It proposes that for appointment of judges in the Supreme Court, the prime criteria should be seniority
as chief justice/ judge of the high court.
The MoP states that up to three judges in the Supreme Court need to be appointed from among the eminent
members of the Bar and distinguished jurists with proven track record in their respective fields.
A permanent secretariat to be set up in the Supreme Court for maintaining records of high court judges,
scheduling meetings of the SC Collegium, receiving recommendations as well as complaints in matters
related to appointments.
The Union Law Minister should seek the recommendation of the incumbent CJI for appointment of his
successor at least one month prior to his retirement.
A notice for vacancies of judges should be put up on the website of the high courts at the beginning of the
year for appointments.

(Note: For complete coverage of National Judicial appointments Commission Act, please refer October, 2015
and November (16-30) 2015, Vision Current Affairs.)
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1.12. SUTLEJ-YAMUNA LINK (SYL) CANAL ISSUE


Why in news?

Supreme Court has directed the Punjab government to maintain


status quo on land marked for the construction of SYL canal.
However, going against the SC directive, Punjab assembly passed
the Punjab Sutlej-Yamuna Link Canal (Rehabilitation and Revesting of Proprietary Rights) Bill 2016, which seeks to return land
acquired for the canals construction to the original owners free of
cost.
Background:
Central government in 1976, issued a notification allocating to
Haryana 3.5 million acre feet (MAF) out of undivided Punjabs 7.2
MAF.
A canal linking the Sutlej with the Yamuna, cutting across the state,
was planned in order to enable Haryana to use its share of the
waters of the Sutlej and its tributary Beas.
Total length of the canal is supposed to be 214-km. 122 km of
which was to be in Punjab, and 92 km in Haryana.
The work on this canal was started in 1982.
However, following the protests in Punjab, the Punjab Assembly passed The Punjab Termination of
Agreements Act, 2004, terminating its water-sharing agreements.
The above incident also affected the construction work on the canal.

Reasons of Conflict

Punjab government argues that the SYL share of water to Haryana was based on 1920 data and now the
situation has changed drastically so there is need to review it.
Whereas Haryana government claims that it is a water deficit state and it has been deprived of its water
share which has affected its agricultural output.

Way Forward

The solution of this issue can be achieved only if all political parties work together in unbiased manner and
treat this as an issue of national interest.
At present Punjab using 75% of its water through tube wells and only 25% by canals, however Haryana is
dependent on canal irrigation, so Punjabs political establishment (both ruling and opposition parties) should
understand the need of Haryana and its people and help in the construction of canal.
At the same time, proper rehabilitation (Home, land and employment) to the displaced people should be
provided.

1.13. AMENDMENT IN "MOTION OF THANKS" BY RAJYA SABHA


Why in News?

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This is the second time in two years that the Motion of Thanks on the Presidents Address has been
amended.
The amendment was focused on legislation passed by Rajasthan and Haryana governments in limiting the
rights of citizens to contest panchayats elections.
Before 2015, there were just three occasions on which the Presidents Address was amended in the Rajya
Sabha, once each during the tenures of Indira Gandhi, V.P. Singh and Atal Bihari Vajpayee.

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Significance of these amendments

The adoption of an amendment to the Motion of Thanks on the Presidents Address is of vital importance
for the credibility of the Government.
It enforces moral accountability on the ruling party against their inaction, mal administration and
inefficiencies.
It signifies the importance and relevance of the Rajya Sabha in our body politic, and its meaningful role in
holding the Government to account.
It clearly brings out the dynamic of our Parliamentary democracy which is dependent on a balance of
strength of political parties and the composition of the House.
Convey the dissatisfaction against the government policies, legislations and regulations.
It highlights the issues of social importance which are not in the radar of government.

Motion of Thanks

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The first session after each general election and the first session of every fiscal year are addressed by the
president.
In this address, the president outlines the policies and programmes of the government in the preceding year
and ensuing year.
This address of the president which is discussed in both the Houses of Parliament on a motion is called the
Motion of Thanks.
At the end of the discussion, the motion is put to vote. This motion must be passed in Lower House.
Otherwise, it amounts to the defeat of the government.

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2. INTERNATIONAL/INDIA AND WORLD


2.1. INDIA-PAKISTAN : SIR CREEK DISPUTE
Sir Creek: Sir Creek is a 96 km tidal estuary on the border of India and Pakistan. The creek, which opens up into
the Arabian Sea, divides the Gujarat state of India from the Sindh province of Pakistan.
Sir creek dispute time line:
The Sir Creek dispute between India and Pakistan, which got
its name from the British representative who negotiated the
original dispute over firewood between the local rulers.

1908: Dispute arises between the Rao (ruler) of Kutch


and the Sindh government over the collection of
firewood from the creek area.
1914: The government of Bombay Province took up the
resolution and gave award
Paragraph 9 of the 1914 resolution indicates that
the boundary in Sir Creek is the green band on
the eastern bank of the Creek.
However, paragraph 10 of the same resolution
talks about the centre of the navigable channel being the boundary, incidentally as per the
internationally accepted 'Rule of Thalweg'.
1925: The land boundary in the horizontal sector was demarcated by Sindh and Kutch in 1924-25 through a
placement of 67 pillars.
1968: India-Pakistan tribunal on Kutch border gives its award which upholds 90% of Indias claim but it does
not cover Sir Creek. The tribunal award relates to the area to the east of sir creek.

Pakistans Position:

Pakistan claims the entire Sir Creek, with its eastern


bank defined by a "green line'' and represented on a
1914 map belongs to it.
Accepting Pakistan's premise on the "green line" would
mean loss of about 250 square miles of EEZ for India.

Indias Position:

India says that the green line is an indicative line and felt
the boundary should be defined by the "mid-channel'' of
the Creek as shown on a map dated 1925.
India supports its stance by citing the Thalweg doctrine
in international law. The law states that river
boundaries between two states may be, if the two
states agree, divided by the mid-channel.
Though Pakistan does not dispute the 1925 map, it
maintains that the doctrine is not applicable in this case as it most commonly applies to non-tidal rivers, and
Sir Creek is a tidal estuary.

Significance of Sir creek

18

Sir Creek itself has little value. It is a marshy wasteland. But where the boundary line runs through it will
determine how much Exclusive Economic Zone (EEZ) one country will lose or gain.
Much of the region is rich in oil and gas below the sea bed, and control over the creek would have a huge
bearing on the energy potential of each nation.
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Challenges due to non- resolution of Sir Creek

Fisherman misery:
The Sir Creek area is a great fishing destination for hundreds of fishermen from both India and Pakistan.
Due to lack of proper maritime boundary, many of their boats stray across the perceived boundaries,
and they end up being arrested by the other side.
The demarcation would also prevent the inadvertent crossing over of fishermen of both nations into
each other's territories.

Drug syndicate / Smuggling:


Over the year this region has become main route to smuggle drugs, arms and petroleum product to
India.
The blurred maritime boundary is being exploited by drug syndicate.

Terror design:
Terrorists are using disputed area to cross over Indian side.
In 26/11 terror attack, terrorists captured an Indian fishing vessel, Kuber, off Sir Creek, and used it to
attack Mumbai.

Maritime boundary:
The resolution of sir creek help in the determination of the maritime boundaries which are drawn as an
extension of onshore reference points.
Maritime boundaries also help in determining the limits of Exclusive Economic Zones (EEZs) and
continental shelves.

Way forward for resolution

Designating the non-delineated area Sir Creek and its approaches as a zone of disengagement or a
jointly administered maritime park.
Given the creek's ecological sensitivity, both countries could designate the area a maritime sensitive zone.

2.2. INDIA AND SEYCHELLES


A. Exercise Lamitye- 2016
The Seventh Joint Military Training Exercise between the Indian Army and the Seychelles Peoples Defence
Forces (SPDF) - LAMITYE 2016 was conducted at Seychelles Defence Academy (SDA), Victoria.

Since 2001 India and Seychelles have been conducting joint military drill Exercise Lamitye.
Lamitye which means friendship in Creole (local dialect).
The exercise is conducted biennially with the aim of enhancing military cooperation and interoperability
between the two countries.

B. Navys aircraft on mission in Seychelles


Indian navy has for the first time deployed maritime reconnaissance aircraft to Seychelles for surveillance of the
island nations Exclusive Economic Zone.

19

The aircraft deployment, which followed earlier surveillance missions of the Seychellois EEZ by naval ships,
reflects Indias increased maritime engagement in the region.
India has been reaching out to the smaller Indian Ocean island nations through various Maritime Domain
Awareness (MDA) exercises.
Domain Awareness (MDA) exercises includes:
Search and Rescue (SAR) support.
Oil pollution response exercises.
Assistance in legal matters.
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Indian navy has supported countries in Indian Ocean region (IOR) such as Sri Lanka, Mauritius, Maldives and
Seychelles with training, hydrographic surveys, surveillance operations and counter-terror patrols.
India and China are locked in efforts to widen their respective spheres of influence in the strategically vital
Indian Ocean.

2.3. INDIA AND JAPAN


India and Japan are in talks to collaborate on upgrading
civilian infrastructure in the Andaman and Nicobar
Islands.

The first project being discussed is a modest one - a


15-megawatt diesel power plant on South
Andaman Island.
To counter chinas growing influence, India is
building strategic relations with Japan, Australia
and the United States, as well as regional powers
like Vietnam.

2.4. INDIA-BANGLADESH
Teesta River dispute
Teesta originates in Sikkim, flows through West Bengal in India before entering Bangladesh. It merges with the
Brahmaputra River (or Jamuna when it enters Bangladesh). The river is important for both Bangladesh and India
for its agricultural use.
Teesta river agreement timeline

In 1983, India and Bangladesh had agreed into an ad hoc sharing of the water during the dry season (October
to April) with an allocation of 36 per cent for Bangladesh and 39 per cent for India, leaving 25 per cent to be
decided later. But this deal has remained pending for more than 2 decades.
As per an agreement of 2011 the two sides had agreed to share the rivers water 50:50, the same as the
1996 Ganges water-sharing pact between the neighbours. This agreement was not signed due to opposition
from chief minister of West Bengal.
Recently Bangladesh has requested India to finalize the Teesta agreement as early as possible. India and
Bangladesh had finalized contentious land boundary agreement last year so there is a chance that the river
agreement will be finalized in near future.

Power agreement and internet service


Prime Ministers of India and Bangladesh commissioned international gateway of internet service in Agartala and
supply of 100MW power to Bangladesh from Tripura.

20

India will supply 100 megawatt (MW) of electricity in return for 10 Gigabits per second Internet bandwidth.
100MW power will be supplied from Suryamaninagar grid to the grid in Commilla of southeast Bangladesh.
India is already supplying 500 MW of power to Bangladesh through the Bahrampur-Bheramara interconnection.
Agartala has become third station connected to submarine cable for internet bandwidth after Chennai and
Mumbai.
Internet gateway would immensely help out north-eastern region comprising eight states.
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North eastern region will get benefit of 10GBPS internet bandwidth from Bangladeshs submarine cable
station at Cox Bazar.

Sundarban Moitry (Sundarbans Alliance)


Sundarban Moitry is a joint exercise between Border Security Force (BSF) and Border Guard Bangladesh (BGB).

It was first exercise held between BSF and BGB in the Sundarbans border area.
The exercise was held with the aim of finding better border managerial mechanisms for the two countries.
Joint exercise would help the forces to understand each other and maintain a healthy relation at the border.
Joint exercise would contribute to the prevention of cross-border crimes and expand border security
activities more effectively.

2.5. INDIAS AID DIPLOMACY


The development assistance for all SAARC countries has been significantly reduced in the 2016-17 Budget.
Except Pakistan, all other six members of SAARC and Myanmar receive significant financial assistance from India.
Country

Reduction in assistance

Nepal

28.6%

Sri Lanka

54%

Maldives

78.1%

Afghanistan

23%

Bhutan

10.8%

Bangladesh

40%

Reasons for drop in assistance


Afghanistan

Many projects that were started between 2005-2010 had been completed or were nearing completion and
needed less assistance. For example, in Afghanistan, Parliament building; the Salma hydel power project was
nearing completion.
No new big projects had been announced.

Bhutan

In Bhutan, hydel projects such as Punatsangchhu I and II or the massive 720 MW Mangdechu were in the
preliminary stages of progress.
Bhutan accounts for over 70% of Indias foreign assistance.

Bangladesh

In the case of Bangladesh lines of credit at concessional rates had replaced direct development assistance.
As of this year, India has extended an $862-million line of credit, while another $2 billion is in the pipeline

Maldives and Sri Lanka

The Budget figures in not final.


Government is yet to draw up its plans for Maldives and Sri Lanka this year, and so the revised estimates will
be more accurate.

Nepal

21

Government has denied that cut in assistance is due to deteriorating relationship with Nepal.
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Myanmar

Myanmar (not a SAARC nation) saw a major 48% increase in development aid, due to the governments
focus on the Kaladan multi-mode transport corridor project, as well as the Trilateral Highway project.

Analysis

The present government has adopted a different approach which looks at all assistance as part of
Development Compact.
Director General of the MEA-run think tank RIS (Research and Information Systems for Developing
Countries) claims that capacity building, lines of credit, bilateral trade, technology transfers, loans and
direct grants would all be counted together to show Indias development aid to its neighbours and other
countries.
Reduction in aid is contrary to the NDA governments Neighbourhood First policy.
At this juncture when China is trying to make inroad in south Asia, reduction in aid may have serious
repercussions especially because aid is an effective foreign policy instrument.
Government may have to face more criticism from its neighbours over the allocations in the more immediate
future, with a cut in aid to SAARC nations between 2015-16 and 2016-17 totaling a whopping 17.8% overall.

2.6. RAISINA DIALOGUE 2016


What is it?

The Raisina Dialogue is envisioned as Indias flagship conference of geopolitics and geo-economics.
It is designed to explore prospects and opportunities for Asian integration as well as Asias integration with
the larger world.
The 2016 conclave focused on Asias physical, economic, digital connectivity and fostering common global
spaces with an emphasis on Asia.
It is based on Indias vital role in the Indian Ocean Region and how India along with its partners can build a
stable regional and world order.
The conference was held jointly by Ministry of External Affairs and the Observer Research
Foundation (ORF), an independent think tank based in India.
The theme of the conference was Asian connectivity.

Importance of conference

The conference is being seen as the governments attempt to rival conferences around the world that attract
global players such as the Shangri-La dialogue in Singapore, and the Munich Conference on national security.
The conference was being attended by speakers from 40 countries.
The conference provided opportunity for India to cement its role in the Indian Ocean Region.
Indias Foreign minister pointed out that that Indias plans for connectivity were cooperative rather than a
unilateral approach.

2.7. BIMSTEC
The Union Cabinet has given its approval for signing and ratification of the Bay of Bengal Initiative on Multi
Sectoral Technical and Economic Cooperation (BIMSTEC) Convention on Mutual Legal Assistance in Criminal
Matters.

22

The Ministry of Home Affairs has been designated as the Central Authority under Article 15 of the
Convention.
The establishment of regional arrangements for mutual assistance in criminal matters will greatly contribute
to more effective cooperation in the control of criminal activities.
The Convention aims to extend widest measures of assistance to each other through mutual cooperation for
enhancing capability and effectiveness of the Member States in investigation and prosecution of crimes,
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including crimes related to terrorism, transnational organized crime, drug trafficking, money laundering
and cyber-crimes.
The BIMSTEC comprises of seven countries viz., Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and
Thailand.

2.8. ASHGABAT AGREEMENT


The Union Cabinet has given its approval for India to accede to the Ashgabat Agreement, an international
transport and transit corridor facilitating transportation of goods between Central Asia and the Persian Gulf.

Accession to the Agreement would enable India to utilize this existing transport and transit corridor to
facilitate trade and commercial interaction with the Eurasian region.
Further, this would synchronize with our efforts to implement the International North South Transport
Corridor (INSTC) for enhanced connectivity.
This move will further strengthen trade ties between India and the Eurasian region.

About Ashgabat Agreement

An agreement between five countries on establishing a new international transport and transit corridor
(Uzbekistan Turkmenistan Iran Oman Qatar) was signed on 25 April, 2011 in Ashgabat.
Qatar had withdrawn from the agreement in 2013.
Ashgabat Agreement forms the basis for developing the shortest trade route/corridor between the
Central Asian countries and Iranian and Omani ports.
Oman, Iran, Turkmenistan and Uzbekistan are the founding members of the Ashgabat Agreement, while
Kazakhstan joined it subsequently.

2.9. 8TH BRICS SUMMIT


India will host the eighth annual Summit of BRICS from October 15-16 in Goa.

India assumed chairmanship of BRICS (Brazil-Russia-India-China-South Africa) from Russia on February 15


and it will last till December 31.
Indias core-theme during BRICS chairmanship will be building responsive, inclusive and collective solutions
for the grouping.
The logo for the Summit is a lotus having colours from all the five member countries and a traditional
namaste in the centre.
India will adopt a five-pronged approach during its Chairmanship. It will comprise Institution Building,
Implementation, Integration, Innovation, and Continuity with Consolidation (IIIIC or I4C).
BRICS comprising five countries with 42 per cent of the world population and combined GDP of over USD 16
trillion.

2.10. 37TH SESSION OF THE SAARC COUNCIL OF MINISTERS


The 37th session of the South Asian Association for Regional Cooperation Council of Ministers was held in
Pokhara of Nepal. The objective of session was to review actions taken on the '36-point Kathmandu
declaration' of the 2014 SAARC Summit and to set the agenda for the forthcoming Summit in Islamabad.
Highlights of the session

23

The meeting decided to hold the 19th Summit of the regional body in Pakistan on November 9-10 this year.
The Council of Ministers endorsed the SAARC Standing Committees recommendation that the SAARC
Summits be held every alternate November.
The meeting also endorsed Pakistans nomination of Amjad Hussain B Sial for the next Secretary General of
the regional body. Sial will replace Nepals Arjun Bahadur Thapa in February next year.
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The SAARC ministers decided to establish the SAARC Disaster Management Centre in New Delhi of India.
The meeting also presented a good opportunity for high-level interaction among the officials of India,
Pakistan and Nepal to discuss major bilateral issues.

2.11. PARLIAMENTARY ELECTION IN IRAN


Parliamentary election was held in Iran on 26 February 2016 to elect members of the Islamic Consultative
Assembly. The election was held as part of a general election which also elected members of the Assembly of
Experts.

The Islamic Consultative Assembly, also called the Iranian Parliament, the Iranian Majlis or the People's
House, is the national legislative body of Iran. The Parliament currently has 290 representatives.
The Assembly of Experts (also Assembly of Experts of the Leadership) of Iran is a deliberative body of eighty
eight (88) Mujtahids (Islamic theologians) that is charged with electing and removing the Supreme Leader
of Iran and supervising his activities.

Results of elections

In the 290-seat Parliament, the reformist allies of President Hassan Rouhani won at least 85 seats, while
the moderate conservatives secured 73 seats. Together they will control the House.
The hardliners, who were persistently opposed to Mr. Rouhanis reform agenda, won only 68 seats.
In the 88-member Assembly of Experts, the clerics backed by reformists and centrists claimed 52 seats.

Significance of results

This was the first election after Irans President Mr. Rouhani secured the historic nuclear deal with world
powers last year, ending the countrys isolation in return for giving up its nuclear programme.
Observers largely agree that the election for Iran's parliament (the Majlis) was a sweeping victory for Iran's
political moderates and a defeat for hard-liners.
The election results represent a clear step forward in Irans gradualist transformation from a rigid Islamist
theocracy into a broader religious democracy.
Election results shows that people have endorsed Irans nuclear deal with west and President Mr. Rouhanis
plans to open up the countrys economy and reach business deals with overseas companies
Defeat of hard-liners is also important since they had opposed Iran nuclear deal and Mr. Rouhanis plans to
open up the countrys economy.

2.12. NEPAL AND CHINA


Nepali Prime Minister K P Sharma Olis paid first official visit to China. The visit yielded ten agreements, including
a landmark deal on transit trade as well as on connectivity and infrastructure, energy exploration and storage,
banking, scholarships and training.
List of important agreements/MOUs

24

The agreement on transit through China where China has agreed to provide the Tianjin seaport for transit of
Nepali goods imported from third countries.
The proposal on connectivity of Nepal with the Tibet rail network.
Agreement on the Construction, Management and Maintenance of the Xiarwa Boundary River Bridge, (Hilsa)
Humla
Agreement on Economic and Technical to implement Pokhara Regional International Airport Project.
China has agreed to upgrade two road links between Nepal and Tibet, agreed to extend the Chinese railway
to Kathmandu and then to Lumbini.
China has given its nod to a long-term commercial oil deal and builds an oil storage facilities for Nepal.
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Analysis
Some of these agreements are projected as historic and unprecedented, particularly those related to transit
through China and rail and road connectivity between Nepal and China.
Transit agreement

Transit agreement aimed at reducing Nepals overwhelming economic dependence on India.


At present 98 per cent of Nepals third country trade goes through India and to the port of Kolkata.
The viability of agreement is debated as Tianjin is located at a distance of 3,000 km from Nepal, as against
1,000 km from the Haldia port in India being currently used by Nepal.
Nepals infrastructure in its northern region to connect with the proposed Tianjin transit facility is still not in
place, and will take effort and investment to be operational.

Rail connectivity

The proposal on connectivity of Nepal with the Tibet rail network will also take time.
The Lhasa rail line has been brought up to Xigatse. Only by 2020, as per the current Chinese plans, will this
line be brought nearer the Nepal border within Tibet.
In building Nepal -Tibet rail link, the track will have to scale mountains as high as 6,000 m, either through
tunnels or winding channels, involving heavy costs, time and effort.
Besides the constraints of costs and terrain, rail connectivity between Tibet and Nepal is also a political issue
for the Chinese authorities. They have to decide on the extent to which Tibet can be opened up to the
outside world through land connection.

Impact on India Nepal relations

Indias relation with Nepal has deteriorated after Nepal promulgated the constitution. For almost six months
there was blockade on India-Nepal border. Continuous blockade has generated anti-India feeling in Nepal.
The feeling is being exploited by the present government.
Through these agreements Nepal is trying to send a strong message to India that Nepal has a viable option in
mobilizing support from China to counter any pressure generated from India.
Agreement may have long term impact on Indias relation with Nepal. Nepal is seen as a buffer state
between India and china.
Nepal tilt towards china may have serious strategic implication for India.
There is a set pattern of the Kathmandu regime flashing the China card whenever it runs into difficulties
with its own people and India lends support to the Nepali peoples cause.
India has yet to evolve a credible response to this Chinese push towards South Asia. China will readily and
deftly exploit Indias flip-flops towards its neighbours in this push. India, therefore, has to deal with its
immediate neighbours with prudence and sensitivity and ensure that they are not alienated.

2.13. DEMOCRATIC TRANSITION IN MYANMAR


Myanmar has sworn in Htin Kyaw as the countrys first civilian President in more than 50 years.

Mr. Htin Kyaws government would be its most democratic administration since 1962 when the military
seized power.
Ms. Suu Kyis National League for Democracy (NLD) won 77 per cent of the elected seats in Parliament. She
cannot lead the government because of a constitutional provision that bars her since her sons are British and
not Myanmar citizens.

Challenges for new government

25

Economic development:
Myanmar is one of the poorest nations in Asia. In the years of isolation under the junta, economic
growth stagnated, trapping millions in acute poverty.

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From military
One-quarter of seats in both Houses of Parliament are reserved for the military. This prevents any
constitutional amendments without the militarys approval.
The military also has direct control of three key Ministries: defence, home affairs and border affairs.
Ethnic conflict:
Myanmar has been the site of serious conflicts between Buddhist and Muslim communities, particularly
in Rakhine State.

2.14. USA PRESIDENT VISIT TO CUBA


President Barack Obama paid historic visit to Cuba. President visit has opened a new chapter in U.S. engagement
with the island's Communist government after decades of animosity between the former Cold War foes.

Obama is the first serving U.S. President to visit Cuba after Calvin Coolidge in 1928.
Visit shows that patience and creative diplomacy can work in solving even complex situations rooted deep in
historical and ideological hostility

U.S.-Cuba relations since Fidel Castro seized power in a 1959 revolution

Rapprochement process since December 2014

President Obama and his Cuban counterpart Ral Castro began a process of rapprochement in Dec 2014.
Washington took a number of steps, including removing Cuba from its list of nations charged with
sponsoring terrorism, to restore confidence in bilateral relations.
In July 2015, The U.S. and Cuba announced the reopening of embassies in Washington and Havana for the
first time in over 50 years.

Way forward for full normalization of relations

26

President Castro demanded that the embargo be lifted and Guantnamo returned to Cuba for full
normalisation of relations.
USA is still skeptical about Cuba in following matters:
Treatment of dissidents.
Human rights violations.
State control over economy.

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2.15. GLOBAL ENERGY ARCHITECTURE PERFORMANCE INDEX REPORT


The Global Energy Architecture Performance Index Report, explored the energy architecture of 126 countries
based on their ability to provide energy access across three dimensions of the energy triangle affordability,
environmental sustainability, security and access.

The Energy Architecture Performance Index (EAPI), developed by the World Economic Forum in
collaboration with Accenture.
The list was topped by Switzerland followed by Norway and Sweden in the second and third place,
respectively.
Among the BRIC nations, Brazil was the top performer as it was ranked at the 25th place, followed by Russia
(52nd), India (90th), and China (94).

Report about India:

India has been ranked at the 90th place in a list of 126 countries.
The proportion of the population covered having grown over the past six years by 4 percentage points to 79
per cent.
The report noted that India is facing a vast array of challenges in the power sector in order to meet its
growth targets.

2.16. THE WORLD HAPPINESS REPORT, 2016


The World Happiness Report 2016, published by the Sustainable Development Solutions Network (SDSN), a
global initiative of the United Nations.

The report takes following parameters into account as indicators of happiness


GDP per capita
Life expectancy
Social support
Freedom to make life choices.
India was ranked 118 out of 156 in the list.
Denmark took the top spot as the happiest country in the world.

2.17. SHANGHAI COOPERATION ORGANIZATION (SCO)


Nepal became a Dialogue Partner of the Shanghai Cooperation Organization (SCO).
About SCO:

The Shanghai Cooperation Organization is a permanent intergovernmental organisation founded on June 15,
2001.

Member States
Kazakhstan
China
Kyrgyzstan
Russia
Tajikistan
Uzbekistan

27

Acceding States
India
Pakistan

Observer States
Afghanistan
Belarus
Iran
Mangolia

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Dialogue Partners
Armenia
Azerbaijan
Cambodia
Sri Lanka
Turkey
Nepal

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2.18. FOUR-NATION COUNTER-TERROR MECHANISM


A top General of Chinas Peoples Liberation Army (PLA) has proposed formation of a regional counter-terrorism
mechanism to safeguard the One Belt One Road (OBOR) connectivity initiative in Eurasia.

The proposed counter-terrorism mechanism will include China, Afghanistan, Pakistan and Tajikistan as
members.

Why counter terror mechanism?

28

The rise of the Khorasan Province (ISIL-K) a branch of the Islamic State in Afghanistan is threat to OBOR
in Afghanistan.
China is threatened by terror strikes from the East Turkestan Islamic Movement (ETIM), especially in its
Xinjiang province. ETIM have link with terror groups operating in Pakistan and Afghanistan.

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3. ECONOMY
3.1. INCOME DECLARATION SCHEME
Why in news?

In order to bring back black money, Income Declaration Scheme (IDS) was
announced in the Union Budget. It provides an opportunity to turn
concealed income into legitimate income.
Anyone whose income is already part of an assessment, reassessment or
survey is not eligible for this scheme.
The scheme does not provide relief to offenders (see adjoining figures).

What is Income Declaration Scheme?

Individual taxpayers who have not disclosed income in the past would get
an opportunity to disclose such income and be compliant by paying tax at
the rate of 30 per cent and surcharge of 7.5 per cent and a penalty of 7.5
per cent.
The surcharge levied at 7.5 per cent of undisclosed income will be called
Krishi Kalyan surcharge and will be used for agriculture and rural
economy.
No enquiry and scrutiny under the Wealth Tax Act and Income Tax Act would be undertaken in respect of
such declarations.
Immunity from prosecution under such
Acts would also be provided.
Immunity from Benami Transaction
(Prohibition) Act, 1988 is also proposed,
subject to certain conditions.
This is not an amnesty scheme like 1997
scheme as declarants would be required
to pay penalty along with the taxes.
Also, the declarations would have to be
done on current valuations not 10 year
old valuations like 1997 scheme.

Way Ahead
To curb the menace of Black Money, a multipronged attack is needed. The Government is trying to bring additional measures like bringing more
transparency for high-value transactions, encouraging the use of plastic money, introducing tax benefits for
internet banking and e-commerce. These would help not only in detecting such transaction but also facilitate
timely action.

3.2. NATIONAL AGRICULTURE MARKET


Why in news?

National Agriculture Market (NAM) is proposed to be launched on 14th April, 2016 on pilot basis.

What is NAM?

29

NAM, announced in Union Budget 2014-15, is a pan-India electronic trading portal, which seeks to connect
existing APMCs and other market yards to create a unified national market for agricultural commodities.
NAM is a virtual market but it has a physical market (mandi) at the back end.
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A budgetary provision of Rs. 200 crore has been made to be spent over 2015-16 to 2017-18 through AgriTech Infrastructure Fund to implement NAM.
Department of Agriculture and Cooperation will implement NAM through Small Farmers Agribusiness
Consortium which will act as implementing agency.

Need to unify markets

To ensure better prices to farmers


To improve supply chain
Reduce wastages
Create a unified national market

Benefits

Increase operational efficiency and transparency in the mandi operations


Enhance market access and more options for farmers through warehouse based sales
Larger national market for secondary trading for the local trader in the mandi
Reduction in intermediation costs for bulk buyers, processors, exporters etc.
Eliminate information asymmetry
Will lead to common procedures for issue of licenses, levy of fee and movement of produce
In 5-7 years, it will result into higher returns for farmers, lower transaction costs to buyers and stable prices
and availability to consumers
It will also help in emergence of value chains by promoting scientific storage and movement of agricultural
goods

Pre-requisites
In order for a state to be part of NAM, it needs to undertake prior reforms in respect of

A single license to be valid across state


Single point levy of market fee
Provision for electronic auction as a mode of price discovery

Way Ahead
Agriculture and intra-state trade are state subjects under 7th schedule. States must be persuaded in a manner
consistent with new spirit of cooperative federalism to amend their respective APMCs acts paving the way for
the creation of NAM.

3.3. HYDROCARBON EXPLORATION AND LICENSING POLICY (HELP)


Why in news?

The Union Cabinet has approved the Hydrocarbon Exploration and Licensing Policy (HELP) on 10th March
2016.
HELP replaces the present policy regime for exploration and production of oil and gas, known as New
Exploration Licensing Policy (NELP), which has been in existence for 18 years.

Four main facets of HELP policy are:

Objectives of HELP

30

uniform license for exploration and production of


all forms of hydrocarbon,
an open acreage policy,
easy to administer revenue sharing model and
marketing and pricing freedom for the crude oil
and natural gas produced.

enhance domestic oil and gas production


bring substantial investment
generate sizable employment
enhance transparency and
reduce administrative discretion

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Features of HELP

Uniform License: It will enable the contractor to explore conventional as well as unconventional oil and gas
resources including CBM, shale gas/oil, tight gas and gas hydrates under a single license, instead of the
present system of issuing separate licenses for each kind of hydrocarbons.
Open Acreages: It gives the option to a hydrocarbon company to select the exploration blocks throughout
the year without waiting for the formal bid round from the Government.
Revenue Sharing Model: Present fiscal system of production sharing contract (PSC) is replaced by an easy to
administer revenue sharing model.
Marketing and Pricing: This policy also provides for marketing freedom for crude oil and natural gas
produced from these blocks. This is in tune with Governments policy of Minimum Government Maximum
Governance
A graded system of royalty rates have been introduced, in which royalty rates decreases from shallow water
to deep-water and ultra-deep water.
At the same time, royalty rate for on land areas have been kept intact so that revenues to the state
governments are not affected.
On the lines of NELP, cess and import duty will not be applicable on blocks awarded under the new policy.

A comparison of both the policies HELP and NELP is given below:


Parameter
Fiscal Model
Cost recovery
Cost efficiency
Royalty
Exploration Period

HELP
Revenue sharing
Not applicable
Encouraged
Low rates for offshore
Onland and Shallow Water- 8 years
Deepwater- 10 years

NELP
Profit sharing
Yes
Neutral
Standard rates
Onland and Shallow Water- 7 years
Deepwater & Ultra-deepwater - 8 years

Management
Committee

More focus on reservoir


monitoring;
no micro-management

Technical & financials


examination

Revenue to
Government
Exploration in Mining
Lease areas
E&P activity for all
hydrocarbons

On production
Allowed

After cost recovery i.e. from profit


petroleum
Not allowed

Allowed

Not allowed

3.4. PSB CONSOLIDATION AND MERGER


Why in news?

Finance Minister said that an expert panel will be


set up shortly to devise a strategy for consolidation
of public sector banks.
Consolidation was also discussed in second edition
of Gyan Sangam-the annual bankers conclave.

Advantages of consolidation of Banks:

31

Infrastructure project requires big loans which the


current banks find unable to fund owing to their
smaller capital base. Consolidation will create
larger banks which will be able to finance big
infrastructure projects.
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Consolidation will also increase capital efficiency, apart from improving the ability of banks to recover bad
loans which are rising.

Challenges

SBI isn't in a position to merge any bank other than its subsidiaries and other PSBs are not strong and big
banks. So merging two unhealthy banks will not yield desired results.
Banking sector is also facing challenges like lack of capital, high NPAs and low profitability etc.
The entire rural banking model is changing with new Small Finance banks and they are expected to play a big
role in financial inclusion.
The Human resource management will be of top most There are 22 public sector banks in the
country apart from five associate banks
concern as salary, seniority; postings etc. will create a big
challenge.
of State Bank of India.
The new entities, say 5 or 6 large banks, could be a danger These public sector banks dominate
to financial stability. Any bank failure would create multiple
India's banking sector with over twoproblems for the system as well as for the economy.
thirds of assets. They also hold close to
Time is not right as there is need to strengthen the banks by
85 per cent of the bad loans in the
empowering them with operational flexibility be it in the area
sector.
of recruitment, or in differentiation on core capabilities.
Opposition by trade unions who may fear identity loss.

Road Ahead

Merger between the banks will be based on geographical and technological synergies, human resources and
business profile.
The government will identify six to ten public sector banks which will drive the consolidation process among
the state-owned banks, according to bankers. These banks will be called anchor banks.
Large lenders like State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB) and Canara
Bank could become the anchor banks.

Way Forward
While the idea of consolidation of banks is supported by the government and Banking institutions, there are
various constraints which must be tackled first. With a robust plan involving experts and by facilitating merger
between the banks based on geographical and technological synergies, human resources and business profile, it
can be achieved

3.5. IRRIGATION THRUST IN BUDGET


Emphasis on completion of AIBP Projects

The government intends putting all the 89 active irrigation projects under the Accelerated Irrigation Benefit
Programme (AIBP) on fast track.
It also aims to raise the required Rs 86,500 crore to finance these both through budgetary and extrabudgetary resources including taking the market route to raise funds.
The government has promised to complete at least 23 of the 89 projects including a few on which work had
started in the mid-1970s, before the end of March 2017. Another 23, that will form phase II, are expected to
be completed by 2020.

Status of AIBP projects

32

Only 143 of the 297 major projects approved have been completed.
89 of them are in different stages of construction which will be put on fast track.
The remaining 65, which are yet to start, are likely to be reviewed to assess whether it would be feasible to
go ahead with them at all.

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Reasons for delay

AIBP suffered from inadequate central funding.


Its scope expanded to include more and more projects.
There were time and cost overruns in most of the projects.

Other measures

Creation of a dedicated irrigation fund under the National Bank


for Agriculture and Rural Development (NABARD), which has been
asked to issue tax free bonds to borrow money.
An initial corpus of Rs 20,000 crore has already been set up
through the budget, which NABARD can leverage to mobilize
further money from the market.
The government has also asked the Central Water Commission and other agencies to take up 50 out of the
143 completed AIBP projects each year and work towards increasing their efficiencies.
Each of these projects would now also have water user associations that will decide on how the water is
distributed to every claimant in the area.
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) is also focusing on improving irrigation facilities.

3.6. DIPAM-DEPARTMENT
MANAGEMENT

Accelerated
Irrigation
Benefits
Programme (AIBP)
Government, in 1996-97, launched
AIBP to provide Central Loan
Assistance (CLA) to major/ medium/
minor irrigation projects in the country.
The objective was to accelerate the
implementation of those projects
which were beyond resource capability
of the states or were in advanced stage
of completion.

OF

INVESTMENT

AND

PUBLIC

ASSET

In order to revive strategic stake sale of PSUs, the Department of Disinvestment, has been renamed as the
Department of Investment and Public Asset Management (DIPAM).
Department of Disinvestment was carved out of the Finance Ministry in 1999.

New Responsibilities

The government has also redefined the responsibilities to include efficient management of the government
investment in CPSEs through capital restructuring, dividend, bonus shares and monetization of idle assets.
Public asset management would also include
buyback of shares.
Disinvestment is the action of an organization or

Objectives of disinvestment

To reduce the financial burden on the


Government.
To improve public finances.
To introduce, competition and market discipline.
To fund growth.
To encourage wider share of ownership.
To depoliticize non-essential services.

Targets

government selling or liquidating an asset or subsidiary.


There are primarily three different approaches to
disinvestments
Minority Disinvestment: The government retains a
majority stake in the company, typically greater than
51%, thus ensuring management control.
Majority Disinvestment: The government, post
disinvestment, retains a minority stake in the
company i.e. it sells off a majority stake.
Complete Privatisation: Complete privatisation is a
form of majority disinvestment wherein 100% control
of the company is passed on to a buyer.

The government aims to collect Rs 56,500 crore


through disinvestment in PSUs in the next fiscal, 2016-17.
Of the total budgeted proceeds, Rs 36,000 crore is estimated to come from minority stake sale in PSUs.
The remaining Rs 20,500 crore is projected to come from strategic sale in both profit and loss-making
companies.

What is Strategic Sale?


According to Department of Disinvestment, In the strategic sale of a company, the transaction has two elements:

33

Transfer of a block of shares to a Strategic Partner and


Transfer of management control to the Strategic Partner
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3.7. LICENSING OF VIRTUAL NETWORK OPERATORS


Why in news?

The Telecom Commission accepted the telecom regulators


recommendation to permit Virtual Network Operators (VNOs) in the
country.

Advantages of VNOs

Virtual Network Operator (VNO)


A VNO is an entity that does not
own
a
telecom
network
infrastructure
but
provides
telecom services by purchasing
capacity from telecom carriers by
entering into an agreement.

The opportunity for VNO could open the doors for everyone from startup entrepreneurs to companies with large consumer base like mutual fund houses to ecommerce firms to
retail chains.
Instead of building costly networks, they can simply pay and partner an existing mobile network operator,
piggyback on that network and resell their services under their own brand.
Globally, about 1,000 companies including Tesco, Walmart and Virgin offer mobile phone services as VNOs.
For example, Walmart Family Mobile uses T-Mobile network to offer services to its customers.
In India, companies including Future Group, Paytm and New Call Telecom are potential candidates for VNO.
Mobile VNOs provide differentiated services to customers by targeting niche market segments such as retail,
business, roaming, etc. This helps avoid direct competition with telcos and also generates additional
revenues for both virtual network operators and spectrum owners.
Consumers are set to get more choices for voice and data services at comparatively lower costs.
Telecom companies also will have additional options to monetize unused airwaves.

Telecom Commission
The Telecom Commission was set up by the Government of India to deal with various aspects of
Telecommunications.
The Commission consists of a Chairman, four full time members, and four part time members.
The Telecom Commission and the Department of Telecommunications are responsible for policy
formulation, licensing, wireless spectrum management, administrative monitoring of PSUs, research and
development and standardization/validation of equipment etc.

3.8. NITI AAYOG REPORT ON MSP


Main objectives of the report

To assess the impact of MSP on creating a predictable and equitable crop price regime.
To identify regional and inter-crop variations in the implementation of MSP and reasons for the same
To evaluate whether adoption of improved technology, appropriate investment and rural infrastructure has
been aided by MSP.
To suggest measures for creating more effective MSP.

Problems noticed in the implementation of MSP

The procurement centers being far away resulting into heavy transportation cost.
Non-opening of Procurement centers timely.
The authorities insisting for revenue records.
Lack of covered storage/godowns facility for temporary storage of produces.
Lack of electronic weighing equipment in some places, delays in payments.

Recommendations

34

Awareness among the farmers needs to be increased and the information should be timely disseminated till
the lowest level.
Delays in MSP payments have negative effects on the framers which need to be corrected.
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MSP should be announced well in advance of the sowing season so as to enable the farmers to plan their
cropping.
Observations
Improved facilities at procurement centres, such
Generation of Annual Income: Very few farmers in
as drying yards, weighing bridges, toilets, etc.
Assam, Bihar, Gujarat, West Bengal, Uttar Pradesh,
should be provided to the farmers. More godowns
Uttarakhand and Odisha sold their produce at MSP
should be set up and maintained properly for
in the reference period. So their income was not
better storage and reduction of wastage.
impacted by MSP.
There should be meaningful consultations with
Awareness about MSP: The 81% of the cultivators
the State Government, both on the methodology
are aware of MSP fixed for different crops. This
of computation of MSP as well as on the
awareness varies from 45% to 100% in the different
implementation.
sample States.
The criteria of fixing MSP should be current years
Medium of Awareness: Medium of awareness
data and based on more meaningful criteria rather
about MSP include self-efforts, newspapers, state
than the historical costs.
officials, FCI officials, village headmen, gram sevaks,
The Procurement Centers should be in the village
teachers, traders etc. Only 7% of the farmers came
itself to avoid transportation costs.
to know about MSP through the State officials.
The MSP scheme requires a complete overhaul in
Mode of Receipt of Payments:
those States where the impact of the scheme
It was found that 32.13%, 40.29% and 27.4% of the
ranges from nil to at-best marginal to ensure
farmers received their MSP payments in cash,
that MSP continue to as an important instrument
Cheques or in the shape of Bank deposits
of the Governments agricultural price policy.
respectively.
In majority of the States, like Bihar, Gujarat, MP,
Conclusion
Odisha, and Rajasthan, no cash payment has been
Regional imbalances exist in the implementation
made to the farmers.
of MSP on various counts which needs to be
Time Taken in getting Payments: 20%, 7%, 8%, 51%
corrected.
and 14% of the farmers of the sample States
On the whole, it was found that the MSP has
received their MSP payments on the spot/same day,
succeeded in providing floor rate for major food
within 2 to 3 days of sales, after 3 days but within
grains like paddy and wheat and other produces
one week of sales, after a week but within one
such as Gram (black & green), spices and oilseeds
month of sales and after a period of one month
(groundnut, mustard, til), sugarcane, jute and
respectively.
cotton, and it did not allow market prices to fall
Medium used for Sales: 67% of the farmers sold
below the MSP fixed for them.
their produces through their own arrangement
MSP has been playing a critical role in stabilizing
whereas 21% of them sold through Brokers.
market prices in addition to helping the
The shares of sales through the private and
beneficiaries in adoption of modern technologies
Government agencies were 8% and 4% respectively.
in farming.
Improvement in Farming Practices:
Almost all the beneficiaries were unanimous with
It was found that 78% of the farmers adopted
the view that the MSP should continue as it
improved methods of farming such as: high yielding
insulated them from an unfavorable market
varieties of seeds, organic manure, chemical
conditions by assuring them a minimum return for
fertilizer, pesticides and improved methods of
their produces.
harvesting, etc. for increasing the production as a
result to the MSP declared by the Government.
About MSP
Effectiveness of MSP: It was found that 21% of the
Based on the recommendations of the
farmers of the sample States expressed their
Commission for Agricultural Costs and Prices, the
satisfaction to the MSP declared by the
Department of Agriculture and Co-operation,
Government.
Government of India, declares Minimum Support
While 79% of them showed their dissatisfaction to
Prices (MSP) for 24 crops before their sowing
MSP due to the various reasons, almost all of them
seasons.
(94%) wanted MSP to continue.
The states have devised their own mechanisms for
the procurements of food grains and other agriculture produces under the MSP operations.

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Aims of MSP

The idea behind MSP is to give guaranteed price and assured market to the farmers and protect them from
the price fluctuations and market imperfections.
Protect farmers in era of globalization resulting in freer agricultural trade.
To encourage higher investment and production of agricultural commodities.

How is MSP fixed?


The MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
The CACP is a statutory body and submits separate reports recommending prices for Kharif and Rabi
seasons. The Central Government after considering the report and views of the State Governments and
also keeping in view the overall demand and supply situation in the country, takes the final decision.
Cabinet Committee on Economic Affairs finally approves it.
In case of sugarcane, MSP has been assigned a statutory status and as such the announced price is termed
as statutory minimum price, rechristened as Fair Remunerative Price (FRP).There is statutory binding on
sugar factories to pay the minimum announced price and all those transactions or purchase at prices
lower than this are considered illegal.
Previous Years Prelims Questions (2015)
The Fair and Remunerative Price of Sugarcane is approved by the
(a) Cabinet Committee on Economic Affairs
(b) Commission for Agricultural Costs and Prices
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
(d) Agricultural Produce Marketing Committee

3.9. 100 PER CENT FDI IN E-COMMERCE


E-commerce in India

The e-commerce industry has grown rapidly in India logging a growth rate of over 60 per cent.
Studies have pegged the size of the industry at around USD 38 billion by 2016 and it is expected to touch
USD 50 billion mark in 2020.
It is an industry that has the potential to create jobs and spur economic growth.
This sector has attracted the maximum FDI in 2015.
Some of the prominent e-commerce marketplace players in India are Amazon, Flipkart, Snapdeal, ShopClues
and Paytm - all funded by foreign investors.
At present, 100 per cent FDI is permitted in B2B (business-to-business) transactions under the automatic
route.
Companies such as Amazon India, Flipkart, Snapdeal and many others hosted thousands of sellers, were
described as technology enablers rather than e-retailers. They claimed to have no inventory of their own.
That kept them going even with a ban on FDI in e-commerce.

New Guidelines

36

Government permitted 100 per cent FDI in the market place format of e-commerce retailing under the
automatic route.
The government extended the definition of marketplace to include support services to sellers with respect to
warehousing, logistics, order fulfillment, call Centre, payment collection and other services.
The marketplace model of e-commerce means providing of an IT platform by an e-commerce entity on a
digital and electronic network to act as a facilitator between buyer and seller.
Further, the inventory-based model of e-commerce means an e-commerce activity where inventory of goods
and services is owned by e-commerce entity and is sold to consumers directly.
FDI has not been permitted in inventory-based model of e-commerce.

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The guidelines allowed e-commerce marketplace to provide several support services to sellers, but, it said
that such entities will not exercise ownership over the inventory.
The e-commerce entities providing marketplace will not directly or indirectly influence the sale price of
goods or services and shall maintain level playing field.

Advantages

It will give the much-needed clarity to undertake business with certainty in longer term attracting foreign
investment in this sector.
Enabling the marketplace operator to provide value added services.

Disadvantages

The new regime will increase bureaucratic


discretion and open the door to rent-seeking.
It has further increased complexity of e-retail by
drawing an artificial distinction between inventory
based model and marketplace based e-commerce.
The cap of 25 per cent on sales by a single vendor in
a marketplace may prove to be restrictive, more so
if the vendor sells high value items particularly in
sale of electronic items, where a vendor may be
offering exclusive access to certain items or
discounts.
The above limit of 25 percent, without a strong
commercial principle, may result in firms creating
newer entities to avoid being caught.
The rule that states e-retailers will not directly or indirectly influence the sale price of goods and services
and maintain a level playing field goes against pricing freedom which is central to the functioning of a
market and it also faces practical difficulties in enforcing this.

Way Forward
Government should dissolve the distinction between physical- and e-retail and simplify norms that allow
businesses to flourish, creating jobs as well as providing a richer array of goods and services to consumers at the
lowest price.

3.10. NEED FOR PARADIGM SHIFT IN FRBM ACT


Why the Debate?

Union Minister has recently commented that fiscal expansion or contraction should be aligned with credit
contraction or expansion respectively of the economy.
This suggests that there should be an inverse correlation between fiscal deficit (fiscal expansion) and bank
credit (monetary expansion).
This is to ensure adequate money supply to the economy in all the cycles.

Why Fiscal Deficit target should be relaxed during downturn of economy?

37

Banks and financial institutions fund business and others, and it is that credit money which drives the
economy.
If, for some reason including reasons like lack of business confidence or rising NPAs, the bank credit to the
economy does not adequately grow, economic growth will suffer due to lack of adequate money.
That is when the Budget needs to step in, to pump money into the economy by incurring deficit, and, for the
purpose, borrow the money lying with banks or even by printing more money, if that is needed.
Crowding In Effect Government spending during economy downturn will boost the economy and
subsequently draw investment from private industries too.
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Why Fiscal Deficit target should be adhered to?

Frequently amending the FRBM target or not meeting them will raise concern in the mind of investor and
will lead to lower investment.
Better fiscal health will improve the credit rating of India
Lower fiscal deficit will help to avail cheap credit for development, as higher FD fuels inflation and hence
higher rate of borrowing
It will also bring India closer to its emerging market peers making India an attractive destination for FDI.

Way Forward

Adopting FD target as a range rather than 3% of GDP as fixed number. This would give the necessary policy
space to deal with dynamic and volatile situations like global economic and financial market uncertainty, a
slowdown in China, and tepid private investment demand domestically.
Expenditure of the government should be on the creation of long term public assets.

What is FRBM Act?


Financial Responsibility and Budget Management Act 2003 was passed to provide a legislative framework for
reduction of deficit and debt of the Government to sustainable levels over a medium term.
This was done to ensure inter-generational equity in fiscal management and long term macro-economic
stability.
Salient points of the Act
Achievement of Fiscal Deficit of 3% of GDP and eliminating Revenue Deficit.
Prohibits borrowing by Government from RBI - Making Monetary Policy independent of Fiscal Policy.
Prevent monetization of Government deficit - Ban on purchase of primary issues of Central government by
RBI from 2006.
Act mandates 4 Documents to be laid before Parliament:
1. Medium Term Fiscal Policy Statement:
a. 3 year rolling targets for 5 fiscal indicators with respect to GDP at market price and the strategy to
attain them.
b. Five fiscal targets are: Revenue Deficit, Effective Revenue Deficit, Fiscal deficit, Tax to GDP Ratio and
Total Outstanding Debt as percentage of GDP.
2. Fiscal Policy Strategy Statement: Presented at the time of Budget and outlines the Govt. strategic
priorities for ensuing financial year related to Taxation, Borrowing, Expenditure, Investment, Pricing,
Guarantees etc.
3. Macro-economic Framework Statement: Presented at the time of budget and contains the expected GDP
growth rate with underlying assumption, Fiscal balance of Central Government and the external sector
balance of Economy.
4. Medium Term Expenditure Framework Statement: This has been added in 2012 and presented in
Monsoon Session.

3.11. DEENDAYAL UPADHYAY SWANIYOJAN YOJANA


In News

Deendayal Upadhyay Swaniyojan Yojana (DUSY) will soon be launched by Ministry


of Rural Development to promote rural entrepreneurship under Start Up India
campaign.

Salient features

38

The main objective of Swaniyojan Yojana is to provide incentives such as financial


assistance to the rural poor looking for self-employment options.
The scheme will be integrated with MUDRA Bank Loan Yojana, innovative credit
linkages and self-help groups.
it will be funded by the existing National Rural Livelihood Mission
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It will provide the basic skill set required for self-employment in fields like driving, plumbing, agriculture,
dairy farming, grafting and horticulture among others.
The Ministry will also coordinate with other government departments such as textile, animal husbandry, and
food processing to help rural poor setup their own business in these fields.

Way Ahead
DUSY is a rural avatar of Start Up India, It will not only provide an opportunity for gainful employment to rural
youths, but it can also solve various problems associated with rural economy such as disguised unemployment in
agriculture, reducing poverty, mitigate migration etc.

3.12. INDIAN PHARMACEUTICAL INDUSTRY


Why in News

Major drug companies were pulled up by the USFDA for lapses that ranged from data manipulation, use of
rejected ingredients to quality control issues.

Issues with Indian Pharma Industry

Poor and non-transparent Regulatory environment.


Lack of enforcement of manufacturing standards as prescribed by Indian laws and WHO standards.
Ban of Indian drugs on ground of poor quality, adulterated drugs, hygiene and sanitation standards by
developed nations like US and EU.
Growing dependence on imports in the area of bulk drugs. Majority of the import is from China
The R&D investment by the domestic pharma industry has gone down in the recent years.
Poor and erratic power supply led to decline of the fermentation industry engaged in production of drugs.
Lack of coordination among different ministries which deals with different aspects of pharma industry like
Department of Pharmaceuticals deals with drug policy, Department of Science and Technology deals with
innovation etc.

Solution
Easier and transparent regulatory regime in India to foster innovation while protecting the interest of
consumers.
Ethical and transparent clinical trials and faster single window approval process.
Develop WTO compliant regulations that the domestic players should find easier to conform.
Coordinated and concerted action by all the ministries.
Cluster scheme: Setting up of mega parks with common effluent treatment plant, common lab, etc. so that
Indian pharma industry can also enjoy economies of scale
Boost R&D - More industry-academic/research institution collaborations, encouragement of open source
drug discoveries in the area of neglected diseases etc
Way Forward

Government should follow path outlined in Pharma Vision 2020 for India to acquire global leadership in
manufacture of generic drugs.
Government also needs to provide more support and incentives than at present to MSMEs in pharma sector.

3.13. SETU BHARTAM PROJECT

39

The project aims to make all national highways free from railway level crossings by 2019.
Under the project, 208 bridges will be built at a cost of Rs 20,800 crore.
Also, 1,500 old bridges will be reconstructed, which will cost Rs 30,000 crore.
The ministry has also established an Indian Bridge Management System (IBMS), the aim of which is to carry
out condition survey of all bridges (approx. 1,50,000) by using mobile inspection units.
The Project is thought to not only improve road safety but also allow for faster transportation and improve
infrastructure network.
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3.14. DBT IN FERTILIZER SUBSIDY


Why in news?

Government announced to introduce direct benefit transfer of fertiliser subsidy to farmers on pilot basis in
few districts of the country.
Presently, annual subsidy on fertilizers is about Rs 73,000 crores.

Issues

A significant part of cultivation is today done by tenant farmers or sharecroppers not owning the land and
without any formal lease agreements.
Selecting criteria for capping the number of bags on which the subsidy is payable, based on a reasonable
assessment of requirement.
Capping would depend on the specific fertilizer as well as the crop and location where it is grown making it
more complicated than the DBT for LPG.

Feasibility

In Uttar Pradesh, where the state government has created an online database of over 40 lakh farmers, each
assigned a unique Kisan ID identifying their village, land particulars, bank account and mobile numbers.
Thus demonstrating feasibility of such transfers.
This DBT portal was used to transfer Rs 140 crore of subsidy on seeds into the accounts of some nine lakh
farmers during the recent rabi season.
It is expected that direct benefit transfer will result in reduction in leakages, Improvement in quality of
service delivery to the farmers and possible reduction in fiscal deficit.

3.15. GOOGLE TAX: EQUALIZATION LEVY ON DIGITAL ECONOMY


What is it?

Union Budget 2016-17 has proposed equalization levy on online


advertising payments to non-resident recipients.
A govt. committee has proposed various services ranging across online
advertising, cloud computing, software downloads and web hosting to be
subjected to an 'equalization levy' of 6-8% of gross payment if the provider
of service is a foreign entity without a 'permanent establishment' in India.
Only payments of over Rs 1 lakh to be covered by this levy.

Pros
Will promote big companies to make permanent establishments in India
Increase in government earnings
Cons

A new levy will raise the cost of a whole range of services provided online.
According to companies it will undermine the Digital India and Startup India
programmes by discouraging innovation and forcing startups to cut down on
advertising.
If other nations follow Indias lead and impose similar taxes on services
provided from India, Indias IT firms cost advantage could be significantly
eroded, rendering them non competitive

Conclusion
Equalisation levy becomes important in the face of exponential growth of
digital economy in recent times which has created new tax challenges including
problem of Base Erosion and Profit Shifting.
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4. SOCIAL ISSUES
4.1. POOR IMPLEMENTATION OF RTE ACT
Why in News?

The report State of the Nation: RTE Section 12 (1) (c) highlights the status of implementation of the Section
12 (1)(c) of RTE Act.
The report is a collaborative effort of the RTE resource centre at IIM Ahmedabad, Central Square
Foundation, Accountability Initiative (Centre for policy research) and Vidhi Centre for legal Policy.

What is Section 12 (1)(c) of RTE Act?

RTE Section 12(1)(c) mandates private unaided schools (except minority and residential schools) to keep 25
percent of the seats (at entry level) reserved for children belonging to economically weaker sections.
This was aimed to increase educational opportunities and to create inclusive schooling system.

Findings of the Report

Even after six years of implementation of the right to education (RTE) Act, children from economically
weaker section are still struggling to find their seats in schools.
Low State Fill Rate - According to data from District Information System for Education (DISE), the state fill
rate share of available seats filled by the mandate is a low 15.12 percent in 2014-15
Inter-State Variation - The report shows that states amongst themselves have large variation in their seat fill
rate, from zero percent in Andhra Pradesh to 44.61 percent in Delhi.
No Implementation in majority of the states - Out of 34 states and UTs, 18 show zero schools implementing
the provision. These include states like Andhra Pradesh, Haryana, Kerala, West Bengal and Punjab.

Reasons of Poor Implementation

Slow reimbursement of fees from state governments to the private schools, which takes up to two years.
Lack of awareness about the rule among the citizens especially in the rural area.
Unwillingness on the part of private schools and even the states to incur additional expenses.
Most states have either unclear rules or guidelines or are not implementing this provision.
Provision of child support and child tracking is almost non-existent after admission in school

4.2. MAHILA E-HAAT

The Ministry of women and Child Development (WCD) launched Mahila e-Haat- Digital marketing portal for
women entrepreneurs to strengthen women empowerment.

What is Mahila E-Haat?

'Mahila E-Haat' is an online platform, where women entrepreneurs can sell their products directly.
Women entrepreneurs dont have to pay any fees for selling the product online.
The portal has been set up with an investment of under Rs.10 lakh from the Rashtriya Mahila Koshan
autonomous body under the WCD ministry for the socio-economic empowerment of women
The only eligibility criteria to register is that the sellersany women or women members of a self-help
group-have to be above 18 years of age to eliminate the problem of child labour.

Benefits of the Move

41

It will promote women entrepreneurs especially from the rural areas.


It will benefit more than 10000 Self Help Groups and 1.25 Lakh women beneficiaries across the country.
The entire business of e-haat can be handled through a mobile and no commission will be taken from the
seller or buyer.
No Intermediaries, More Profit - Through this initiative, a major portion of the profit will go to women
entrepreneur directly by cutting down the intermediaries.
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4.3. PROTECTING GOOD SAMARITANS


Why in news?

Supreme Court recently passed an order making the Good Samaritans guidelines mandatory for all states
and union territories.

What is it?

The initiative was taken on a PIL filed by the NGO, SaveLIFE in 2012.
The Centre had issued the guidelines to protect Good Samaritan i.e. a person whos a bystander or passer-by
and chooses to help an accident victim or person in distress on the road.
The SC made these guidelines binding until the government issues legislation.
The government also issued a Standard Operating Procedure for the examination of eyewitnesses by police
or in court.
Guidelines say there should be no criminal or civil liability against those who help the accident victims.
They should be treated respectfully and without discrimination on the grounds of gender, religion,
nationality, caste or any other.
No compulsion to disclose identity of good Samaritans and no harassment by police or in court.
Also allows for the person to be examined at his/her place of convenience.
The significance of this initiative lies in the fact that the lives of more accident victims may be saved as
people will not be afraid to get involved.

4.4. TRIPLE TALAQ


Why in news?

Supreme Court issued a notice to the centre to respond to the petition against the Triple Talaq provisions in
the Muslim personal Law.
The petition was filed by a Muslim women in the SC on Triple Talaq and others provisions in Muslim Personal
Law for grant of divorce.

What is it?

The petitioner argues


o Seeks a writ or order declaring the practices of instantaneous divorce, bar against remarriage with
divorced husband without an intervening marriage with another man, and polygamy under Muslim
personal laws as illegal and unconstitutional.
o The above is violates the Articles 14, 15, 21 and 25 of the Constitution.
o SC has taken cognizance that laws dealing with marriage and succession are not part of religion and
should be examined in the light of international covenants and treaties.
o the practices are extremely discriminating towards women.
Several Islamic scholars also agree that practices like Triple Talaq have no foundations in the Holy Quran and
have already been banned or restricted by several countries like Saudi, Pakistan and Iran.
Significance of the above petition lies in the need for the realization for a Universal Civil Code.

4.5. UNIVERSAL ID FOR PERSONS WITH DISABILITY


Why in News?

Centre recently announced universal ID for person with disabilities. This will be under the charge of Ministry
of Social Justice and Empowerment.

What is it?

42

The ID cards will have a unique number through which all their details can be assessed and eliminate the
hassle of carrying certificates for different purposes.
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It will include details like personal, bank, disability certificate, education, employment and income status of
every person.
It will be valid throughout the country and will allow the persons with disability to avail benefits of schemes
and reservations.

Significance

The migrants will not have to travel to their home states due to non-recognition of certificates etc. by other
states and their details will be available online.
Will ensure the authenticity of disability certificates as many fraudulent ones are being issued.

4.6. WOMEN TRANSFORMING INDIA CAMPAIGN


Why in News?

Niti Aayog in collaboration with the UN in India and MyGov launched the Women Transforming India
Initiative on March 8th, 2015 on the occasion of International Womens Day.

What is it?

It is designed like a contest seeking entries of women breaking new ground, empowering themselves or
others and challenging stereotypes.
It will encourage womens leadership particularly in economic, socio-cultural and environmental fronts.
The winning entries will get a certificate of appreciation from Niti Aayog and UN in India. Also a chance to
directly interact with policy makers in the government.
India supported the need for a stand-alone goal on gender (under SDGs) and that women have a critical role
to play in all of the SDGs.
Niti Aayog has been given the role of monitoring and coordinating all efforts across the Centre and states on
the SDGs.

Significance

It is consistent with governments efforts to advance gender equality.


The initiative will also sensitize citizens to gender issues.
It will also help in furthering the Sustainable Development Goals.
This initiative will also indirectly encourage innovation and environment protection efforts.

4.7. MGNREGA-M PLATFORM


Why in News?

Karnataka Rural Development and Panchayati Raj Department recently developed a Mobile App called
MGNREGA-M Platform to monitor MGNREGA.

What is it all about?

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It helps officials and beneficiaries to monitor progress at all stages.


Panchayat Development Officers (PDOs) can issue work orders and as the work progresses, information is
sent to the zilla panchayat and the State government.
The mobile phones of around 6,000 gram panchayats will receive data from the departments central
servers.
For example
o If a beneficiary decided to build a rain water harvesting plant. He does so by telling the Panchayat
Development Officer and starts by feeding data through pictures.
o He posts before and after pictures at every stage of construction including completion at the MPlatform.
o This initiates process of payment of wages and other costs to him, electronically.
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Significance

Increases transparency, reduces fund diversion and interference by middlemen.


Ensures automatic payment of wages to labourers by transferring data to the central server.
Citizen interface - allows the labourers to communicate with officials about the progress.
It also helps collection and comparison of data for the government.

4.8. ADOPTION AND TRAFICKING OF CHILDREN

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Supreme Court recently directed the government to frame guidelines under Juvenile Justice Act 2015, to
implement guidelines for adoption.
The Supreme Court directive came in the wake of the PIL filed by Advait Foundation, which talked about the
abuse of children due to absence of foolproof adoption guidelines.
It alleged that adoption was a huge racket in India and children were illegally to taken to foreign countries
and abused.
The SC asked the new rules to be framed under Section 110 of the Juvenile Justice Act
It also asked the Central Adoption Resource Agency(CARA) to carry out the functions of the Central Authority
under the Hague Convention on Protection of Children and Cooperation in respect of inter-country
Adoption.
CARA is the apex body that governs adoptions and functions under the Ministry for Women and Child
Development.

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5. SCIENCE AND TECHNOLOGY


5.1. THE SVALBARD GLOBAL SEED VAULT
What is it?
It is a secure seed bank on the Norwegian island of Spitsbergen near Longyearbyen in the remote
Arctic Svalbard archipelago, about 1,300 kilometres (810 mi) from the North Pole.
Purpose

The purpose of the Vault is to store seed samples from the worlds crop collections.
Permafrost and thick rock ensure that the seed samples will remain frozen even without power.
It would be like an insurance policy for worlds food supply, offering options for future generations to
overcome the challenges of climate change and population growth.
It would be the final back up, securing, for centuries, millions of seeds representing every important crop
variety available in the world today.

5.2. TRACE GAS ORBITER (TGO) MISSION


Why in news?

Recently Russian (Roscosmos) and European (ESA) space agency jointly launched a Mars Mission called Trace
Gas Orbiter (TGO).
The Trace Gas Orbiter carries the Entry, Descent and landing demonstrator Module (EDM), known as
Schiaparelli.
Trace Gases on Mars: Methane, Water Vapour, Nitrogen Oxides and Acetylene

Aim of mission

To study methane and other rare gases in Mars atmosphere.


To drop a lander (Schiaparelli) on its surface. The probe will take pictures on the way down, but it has no
surface camera. It will make environmental observations until its battery dies
The main goal is to demonstrate its descent radar, computers and algorithms.
It will be used in the mechanism that lands the future ExoMars rover.
Trace Gas Orbiter carries a scientific payload capable of detection and characterization of trace gases in the
Martian atmosphere.

5.3. ALPHA GO
(ArtificiaI Intelligence already covered in previous editions)

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AlphaGo is a computer program developed by Google DeepMind in London to play the board game Go.
It is the first computer program to ever beat a professional player at the game of Go.
It not only mastered what may be the world's most complex board game, it also changed the scope of future
Artificial Intelligence (AI) research.
AlphaGo is powered by neural network AI engines, which allows the program to learn by observing the data
from the best Go players and then train itself to get even better.
The fact that it can train itself to improve could be applied to other tasks, such as teaching itself to recognize
faces by looking at lots of images.
AI can also help people look through large databases and perform calculation, as it does in "complete
information games" like chess or Go.
In "incomplete information games," it could be used in situations where there are more unknown factors,
such as negotiations or cybersecurity.
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5.4. TOUCH DNA

Around the world the courts are divided about Touch DNA as reliable evidence to convict someone for a
crime.
The touch DNA is a type of DNA analysis method involving amplification of tiny amounts of genetic material
left behind when assailants touch victims, weapons or something else at a crime scene.

Why controversial?

Although many hail it as a power tool that can help close cases critics such as FBI argue it is inconclusive and
unreliable.
This is because the low copy number DNA , the sample are so small less than 100 pico grams or 16 human
cells that scientists amplify them more than typical DNA samples.

5.5. TINTORANG
Why in news?
A science start-up, incubated at the Indian Institute of Science (IISc) has
built the world's first food-grade DNA/RNA stain.
Why important?

Stains basic use is to impart


colour to tissues or cells and they
also facilitate microscopic study
and identification, which is of
great importance for researchers.

Traditionally from crop improvement and food testing to forensic


applications, carcinogenic and toxic nucleic acid stains are used by
biologists and genome experts.
Tintorang, developed from an undisclosed plant source being a fluorescent dye, can be used for DNA and
RNA visualization, molecular diagnosis and in vivo imaging applications.

Applications:

Applying Tintorang to diagnose diseases does not require any bacterial culture, hence the result is obtained
sooner.
Tintorang may help to bring down the time taken for lab diagnosis of critical diseases like HIV-AIDS to only
one day from the present 3-45 days
Also, the same DNA/RNA stain can be used for multiple tests as the structure of the nucleic acid is not
altered by one test.
Tintorang would be safe even on consumption, as it is a food additive and thereby would be much more
safer for the scientist to use.
Being indigenous, faster and reusable, it would reduce the cost of molecular diagnostics.

5.6. TREASORES PROJECT


Why in news?
Researches in Europe have developed a new technology - transparent electrodes and barrier material. It can be
used in the next generation of flexible optoelectronics devices like tough panels, LEDs, solar cells etc .
What is it?

46

TREASORES stands for Transparent Electrodes for large area large scale production of organic
optoelectronics devices.
Currently, Indium Tin oxide (ITO) is widely used as electrodes in opto-electrical devices.
Transparent Organic Electrode -It uses electrodes made of organic polymers which are made of combination
of molecules unlike ITO electrodes which are made of combination of two atoms.

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The only concern as of now is the efficiency and charge mobility (because atoms are neatly arranged in ITO
electrodes unlike organic electrodes).

Advantages of using Transparent Organic Electrodes

Issues with Indium Tin oxide (ITO)


Indium is expensive rare element.
Indium Tin oxide devices have poor
mechanical flexibility.
Limited spectral operation i.e. it cant
work in all spectrum of light.

Organic electrodes have their building blocks as molecules which


being larger than atoms are easier to work with.
Low cost
Better mechanical flexibility
Broad spectral usability.
Including TRANSPARENT BARRIERS would prevent moisture and oxygen entry from reaching sensitive
organic electronic devices.
Therefore a combination of transparent organic electrode and barrier could be a boon for solar industry in
terms of cost and flexibility of devices.

5.7. NASA INSIGHT MISSION


Why in news?
NASA managers have decided to suspend the planned March 2016 launch of the Insight mission. The decision
follows unsuccessful attempts to repair a leak in a section of a key instrument in its payload.
About INSIGHT Mission

Insight stands for Interior Exploration using Seismic Investigation, Geodesy and Heat Transport. It is NASA
Discovery Program mission that will place a single geophysical Lander on Mars to study its deep interior.
Objective is to study the processes that shaped the formation of rocky planets including Earth more than 4
billion years ago.
Payloads: It contains two key instruments:
SEIS (Seismic Experiment for Interior Structure). It can measure ground movements as small as the
diameter of an atom. For better sensitivity it needs to operate within a vacuum chamber.
Heat Flow and Physical Properties Package. This would hammer itself to a depth of about 16ft into the
ground.

Other missions to Mars:

Present Missions
Opportunity and Curiosity rovers exploring the Martian surface.
Odyssey and Mars Reconnaissance Orbiter spacecraft currently orbiting the planet.
Mars Atmosphere and Volatile Evolution Mission (MAVEN) orbiter, which is helping scientists
understand what happened to the Martian atmosphere.
In year 2014 INDIA successfully inserted its first orbital mission, Mangalayan into Mars orbit.
Future Missions:
NASA is on an ambitious journey to MARS that includes sending humans to the Red Planet, and the work
remains on track.
ISRO plans to develop and launch a follow up mission called Mangalayan 2 between 2018 and 2020. This
mission will likely consist of a Lander and Mars Rover.

5.8. ANTI-MICROBIAL RESISTANCE FUND

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Department of Biotechnology (DBT) through the Biotechnology Industry Research Assistance Council (BIRAC)
has invested an initial $1,00,000 to start an India-focused seed fund.
It will help groups in India compete for the Longitude Prize.
Longitude Prize is a 10 million prize offered by Nesta, a U.K. charity, to any individual group anywhere in
the world that develops an affordable, effective diagnostic test to detect resistance to microbes.
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Importance for India

India faces increasing instances of diseases like tuberculosis which are becoming resistant to front line drugs.
The World Health Organisation statistics for 2014 give an estimated incidence figure of 2.2 million cases of
TB for India out of a global incidence of 9 million, with instances of drug-resistant TB rapidly rising.

Reasons for rising anti-microbial resistance

Lax monitoring
P1rofligate prescription by medical authorities that allow these drugs to be easily available
Indiscriminate usage means that bugs are, overtime, able to resist these medicines.

5.9. IRNSS-1F
Why in news?
Recently ISRO launched Indias sixth dedicated navigation satellite, the IRNSS-1F.
About IRNSS-1F:

The satellite was launched by Indias Polar Satellite Launch Vehicle (PSLV).
The IRNSS-1F carrying two payloads The navigation payload and ranging payload.
Navigation payload will transmit navigation service signals and will operate in the L5 band and S band.
The ranging payload consists of a C-band transponder that facilitates accurate determination of the
range of the satellites.
ISRO is now preparing to launch the last satellite in the IRNSS series, the IRNSS-1G, and work has already
begun on it.

5.10. INDIAS FIRST INDIGENOUS SONAR DOME


Why in news?
Recently, Defense Minister flagged off Indias first indigenous composite
sonar dome.
What is it?

It was designed and produced by a Defence and Research


Development Organization (DRDO) lab in Pune.
All anti-submarine warfare (ASW) ships have a sonar array fitted to
the ship structure below the waterline.
The sonar functions as the ships underwater eyes and ears.

What is a sonar dome?


Sonar domes are located on the
hulls of submarines and surface
ships. Their purpose is to house
electronic equipment used for
detection, navigation, and ranging.

5.11. BEDAQUILINE
Why in news?

On World Tuberculosis Day (24th March), Union Health Minister launched Bedaquiline new drug for Drug
Resistant TB - as part of the national programme.
The drug will be introduced in 104 districts across five States.

What is Bedaquiline?

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Bedaquiline is a bactericidal drug that belongs to a new class of antibiotics (diarylquinolines).


Although the drug is active against many different bacteria, it has been registered specifically for the
treatment of multidrug-resistant tuberculosis, MDR-TB.

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It specifically targets Mycobacterial ATP synthase, an enzyme essential for the supply of energy to
Mycobacterium tuberculosis and most other mycobacteria.
The drug is unique among the anti-tuberculosis drugs currently used in that it interferes with the function of
an enzyme required by the tuberculosis bacterium to produce energy and to replicate.

Significance

The last time a drug was introduced specifically for the treatment of TB was in the late 1960s, known as
rifampicin.
Since then, resistance to rifampicin has been increasingly reported in the world.
This is a major concern, as it remains among the most effective anti-TB drugs available today.
Bedaquiline has been released specifically to treat TB patients with bacteria that are resistant to rifampicin
as well as to isoniazid, another core anti-TB drug, and thus suffer from MDR-TB.

5.12. PHOTODYNAMIC THERAPY


Why in news?
Scientists at the Indian Institute of Science, Bengaluru, have found a new way to kill cancerous cells by using
iron-based compounds decorated with organic groups. This method is called Photodynamic Therapy.
What is Photodynamic Therapy?

It is treatment that uses drug called photosensitizer or photosensitizing agent, and a particular type of light.
Each photosensitizer is activated by light of a specific wavelength that determines how far the light can
travel into the body.
When it is exposed to a specific wavelength of light, it produces a form of oxygen that kills nearby cells.
Thus, doctors can use specific photosensitizers and wavelengths of light to treat different areas of the body

5.13. BAN ON COMBINATION DRUGS


What is the issue?

The government recently banned 344 fixed dose


combinations (FDCs) and short-listed around 600 more
FDCs to be banned
Later, Delhi High Court restrained the government from
enforcing the ban until it has heard petitions from
drugmakers challenging the order.

Reasons for Ban

What are FDCs?


FDCs are medicines in which two or more
active pharmaceutical ingredients (APIs) are
combined in a fixed dose to form a single drug
Side-effects of the combined product and its
effects are different from those of its
individual components and sometimes the
combination can contain risks that are not
there in the components by themselves
The added danger is that when an adverse
reaction happens in a patient, it is often
difficult to place which ingredient is
responsible for that reaction.

The Parliamentary standing committee on health and


family welfare pointed out several loopholes in the
approvals of FDCs.
Committee also found that many of these FDCs are
already banned in western countries.
Therapeutic Reasons - FDCs are ineffective, hazardous or simply inappropriate as sighted in many research
articles.
FDCs could promote addiction, which has emerged as a serious concern in the US.

Implications of the Decision

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The ban on FDCs, linking drug prices to wholesale price index (WPI) along with bringing a larger number of
medicines under price control, could wipe out 12 per cent of the pharmaceutical sectors turnover.

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Way forward

Streamline the regulation - Presently States and the Centre issue licence to manufacture and market a
drug respectively. To ensure that consumers get the right FDCs, a streamlined system of regulation is
needed.
A National Health Authority should be formed which should regulate both the health and commercial
issues in the pharma sector.
Drug inspectorates needs to be provided with funding and infrastructure to increase their ability of testing
the therapeutic attributes

5.14 SUPERFLARES

50

Solar flares on the sun frequently shower Earth with high-energy particles causing the Aurora Borealis and,
occasionally, disruptions to power networks and communications.
An international research team suggested of a possibility of our sun turning into a Superflare star i.e capable
of producing very high intensity Flares known as Superflares.
Superflares have been a mystery since the Kepler mission discovered them in larger numbers 4 years ago.
Superflares are very strong explosions observed on stars with energies up to ten thousand times that of
typical solar flares.
The magnetic fields on the surface of stars with super flares are generally stronger than ones on the surface
of the Sun.
However, of all the stars with Superflares that researchers analysed, about 10 per cent had a magnetic field
with strength similar to, or weaker than, the Suns. Thus there is a possibility that our sun might turn into a
Superflare.

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6. INTERNAL SECURITY/LAW AND ORDER


6.1. DISTRICT RESERVE BATTALIONS
Why in news?
The District Reserve Group (DRG), a locally raised force vested with the task to tackle Maoists has added muscle
to the counter insurgency operations in south Chhattisgarh in past one year.
About DRG

It was first set up in Kanker (north Bastar) and Narayanpur (comprising Abhujmad) districts in 2008 and after
a gap of five years, the force was raised in Bijapur and Bastar districts in 2013.
The DRG has strength close to 1,700, including officers.
Those in the DRG are full police officers, with the same accountability as anyone else, and thus the state is
fully responsible for their actions.
Dubbed as son of soil because its personnel are recruited from among local youth and surrendered Naxals
in Bastar division.

Advantage of DRG

Well conversant with the inhospitable terrain and dense forests of Bastar.
They are emotionally attached to the region as they belong to this place. They are fighting Maoists
efficiently because of their inherent motivation for doing so.
Many of the recruits in DRG are surrendered Naxals and having served with the outlawed CPI (Maiost), they
are aware of the movement of the ultras in forests, their schedule, habits and operational pattern.
They are considered immensely flexible when it comes to combat situations. Well-trained forces follow
standard operating procedures. These surrendered cadres dont follow rules, and thus are better equipped
to guerilla warfare in the jungles.
DRGs good local information network helps them to launch operation based on specific inputs.

Criticism of DRG

Critics of the police point out that the concept of using surrendered Naxals as instruments of the state is
modelled on the now-banned Salwa Judum.
There are allegations that DRG cadres are harassing innocent villagers and even sexually assaulted women
in villages.
Police with the help of DRG is accused of carrying out sweeping raids as collective punishment, and fitting
villagers to pre-decided crimes.

Conclusion

Government has to use all its resources to eradicated extremism. However, in doing so government should
not violate the fundamental rights of the citizens.
State government has to bring more transparency in recruitment of DRG and impartially investigated any
wrong doing of DRG. Naxalism cannot be defeated only with the force; wining hearts and minds of the
people living in conflict area is very much essential.

6.2. TACKLING CROSS-BORDER TERRORISM IN SAARC NATIONS


Why in news?

51

Justice Sharad Arvind Bobde of the Supreme Court has suggested setting up of a common court for SAARC
member countries to deal with cross-border terror attacks like 26/11 and crimes like smuggling of fake
currency notes, drugs and weapons.
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Benefits

A court consisting of judges of all SAARC countries in the region will perhaps ensure swifter justice as it will
ensure collaboration on trans-border cases.
It was also suggested that a common secure website to be created for judges of SAARC Nations. This
website can provide for exchange of information on modus operandi of terror group, arms and equipment
used by terrorists and their handlers.

Challenges

Experts are of the opinion that idea will be difficult to implement as India dont have an extradition treaty
with Pakistan.
State (Pakistan) agencies like ISI and army are involved in supporting terror groups.
Trust deficit between India and Pakistan.
Pakistan has never acknowledge that anti-India terror groups are thriving in its territory
Terror has become state instrument to control the government in Afghanistan.

6.3. 8TH INTERNATIONAL INDIA SECURITY SUMMIT


Why in news?
8th International INDIA SECURITY SUMMIT: Securing the Nation was organized by ASSOCHAM, Indias Apex
Chamber for Commerce and Industry.
Highlights of the summit

Important points highlighted by ASSOCHAM President.


Indias internal security remains a major area of concern, constantly facing growing challenges to its
internal security arising from cybercrimes, physical crimes, economic frauds, insurgency, cross border
developments.
It is the duty and function of the state to ensure the safety of its citizens, organizations and institutions
against threats to their well-being as well as the traditional functions of law and order.
With more than half the global population today living in urban areas, safe city is increasingly being
considered essential in ensuring secure living and prosperity.
Important points highlighted by Union Home Minister:
Cyber-crime is the biggest challenge these days with the development and access to technology across
the globe.
Cyber space is being used to radicalize the minds of youth.
The main problem with cyber-crime is its detection and prosecution, as it is faceless and borderless.
The Expert Group constituted has recommended for setting up an Indian Cyber Crime Coordination
Centre (I4C) to fight against cybercrimes in the country.
Earlier the crime used to originate from land, water and air. In the 20th century, the dimension of space
was added to it. But now a days, the cybercrime is showing exponential growth in its number, which is a
matter of serious concern, keeping in view the reach of mobile phones and internet across the globe
including the far-flung areas
USA ambassador to India suggested that India should accede to the Convention on Cybercrime, also known
as the Budapest Convention.
The Budapest Convention is the first international treaty that addresses Internet and computer crime by
harmonizing national laws, improving legal authorities for investigative techniques, and increasing
cooperation among nations.
As a Party, India would benefit from a proven framework under which nations commit to cooperate with
each other to the widest extent possible with respect to cybercrime, and any crime involving electronic
evidence.

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The Budapest convention is the only multilateral convention on cyber security considered critical to
economic and national security of a country.
Developing countries including India have not signed it stating that the developed countries lead by the
US drafted it without consulting them.

6.4. INDIAS CYBER SECURITY ARCHITECTURE


Two things set aside Indias digital spaces from that of major powers such as the United States and China: design
and density.
Design

India is a net information exporter.


Its information highways point west, carrying with them the data of millions of Indians.
This is not a design flaw, but simply reflects the popularity of social media platforms and the lack of any
serious effort by the Indian government to restrict the flow of data.
Unrestricted information flow makes Indias cyber security architecture susceptible to many perils.

Density

Nearly 500 million Indians use the Internet today, but they do not access the Internet from the same
devices.
Apples market share in the U.S., for instance, is 44 per cent, but iPhones account for less than 1 per cent in
India.
The massive gap between the security offered by the cheapest phone in the Indian market and a high-end
smart phone makes it impossible for regulators to set legal and technical standards for data protection.

Digital intrusions
Indias national security architecture faces a difficult task in cyberspace due to lack of control over hardware
used by Indian Internet users as well as the information that is carried through them. Indias infrastructure is
susceptible to four kinds of digital intrusions:
(a)
(b)
(c)
(d)

Espionage: Involves intruding into systems to steal information of strategic or commercial value.
Cybercrime: Referring to electronic fraud or other acts of serious criminal consequence.
Attacks: Intended at disrupting services or systems for a temporary period.
War: Caused by a large-scale and systematic digital assault on Indias critical installations.

Lack of national security architecture

There is no national security architecture today that can assess the nature of cyber threats and respond to
them effectively.
Indias civilian institutions have their own fire-fighting agencies, and the armed forces have their own
insulated platforms to counter cyber-attacks.
Recognising the strategic dimensions of cyberspace, the Prime Ministers Office (PMO) created the position
of the National Cyber Security Coordinator in 2014.

What could such an agency look like?


The asymmetric character of digital warfare requires a multi-agency organisation that is technically equipped,
but also bases its decision on sound strategy and regular policy inputs.
Permanent and semi-permanent staff that is technically proficient in cyber operations,
India faces a shortage of officers trained in creating and breaking encrypted platforms as well as using
digital networks for intelligence gathering.
Were such a National Cyber Security Agency (NCSA) to be created, it should have a functional nucleus
or secretariat.
The second requirement is to coordinate the agencys policy functions and operations.

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The current cyber security policy, articulated in 2013 by the Ministry of Communications and
Information Technology, is basically a statement of first principles.
The NCSA should be guided by a document outlining Indias cyber strategy, much like its nuclear
doctrine.
India currently has a top layer of agencies performing cyber operations the National Technical
Research Organisation, the National Intelligence Grid, and the National Information Board etc.
Indias intelligence agencies should separately provide their consolidated inputs to aid the operations of
the NCSA.
India should not hesitate to build its offensive cyber capabilities.
This would involve the development of software designed to intrude, intercept and exploit digital
networks.
Indias cyber command should be the primary agency responsible for the creation and deployment of
such weapons.

Conclusion
A fully operational cyber command will take years to complete. The government would do well to pursue a twopronged strategy in the interim.

Advocate restraint in cyberspace as a global norm. India is an active participant in discussions around the
Tallinn Manual, which is a set of non-governmental guidelines for engagement during war.
The government should draft recruitment guidelines to hire and train a cadre of cyber specialists.

6.5. INDIAS CYBER SECURITY CHALLENGES


Cyberspace was primarily intended as a civilian space. It has, however, become a new domain of warfare.
Past cyber-attacks

Stuxnet cyber-attack (2010) on an Iranian nuclear facility at Natanz


In 2007, Estonia was almost brought to its knees through a cyberattack, presumed to be by Russian hackers.
The past few years have seen successful attacks against the best-guarded installations of advanced nations.
The past year also witnessed a devastating attack on Ukraines critical infrastructure.

It is evident that no rule of law exists in cyberspace. The domain has already become a dangerous place.
Cyber security vis- a-vis terrorism

The architecture of the Internet was designed to promote connectivity, not security. Cyber experts warn
that the more technologically advanced and wired a nation is, the more vulnerable it is to a cyber-attack.
Cybersecurity has an interesting parallel to terrorism.
Both are asymmetric.
Ensuring security of data, information, and communication is considerably harder than hacking into a
system.
The attacker has an inherent advantage in both conventional terrorism and cyberattacks.
In the case of state-sponsored attacks, the challenges are of a much higher magnitude.

Indias Vulnerability on cyber space

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India remains vulnerable to digital intrusions such as cyber-espionage, cybercrime, digital disruption and
Distributed Denial of Service.
Despite having a National Cyber Security Policy (2013), risks to our critical infrastructure remain.
In spite of instituting a National Cyber Security Coordinator (2014), internecine rivalries between the
National Technical Research Organisation (the nodal agency for cybersecurity) and the Ministry of
Communications and Information Technology impede cooperation.
Lack of coordination among different government agencies.

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Chinas emphasis on cloud computing techniques, and the involvement of its Ministry of State Security in
this endeavour, suggests that it is preparing for all-out offensive cyber operations. India would be a prime
target.

What India Needed

Bleeding edge technology: Bleeding edge technology is a category of technologies so new that they could
have a high risk of being unreliable and lead adopters to incur greater expense in order to make use of them.
The term bleeding edge was formed as an allusion to the similar terms "leading edge" and "cutting edge".
Big data analytics
Air gapping: Air gapping is a security measure that involves isolating a computer or network and preventing
it from establishing an external connection. An air gapped computer is physically segregated and incapable
of connecting wirelessly or physically with other computers or network devices.
Emphasis on cloud computing techniques.
Offensive cyber operations and strengthened cyber security.

6.6. NEW GOVERNANCE ARCHITECTURE FOR ICANN


Why in news?

The Internet Corporation for Assigned Names and Numbers (ICANN) in a meeting at Marrakesh (Morocco)
decided that the ICANN will now be governed by a multi-stakeholder (multistakeholder ICANN
community) model, including businesses, individual users and members of governments across the world.
Since this group elects ICANNs board of directors in the first place, it can be said that ICANN will now be an
independent organisation, with no external oversight.

ICANN and its present governance architecture

It is a non-profit body founded in 1998 that administrates domain names and Internet protocol addresses
(IPs) globally.
ICANN has been assigned the task to manage Internet by the US Commerce Department's National
Telecommunications and Information Administration (NTIA) under a contract, which expires on September
30.
IANA (the Internet Assigned Names Authority, the part of ICANN that handles country codes, Internet
numbers and protocols) then went on being part of ICANN, despite concerns raised by a number of countries
over the USs stranglehold over the Internet.
ICANNs architecture renders it answerable only to U.S. law and courts.
The main issue that non-U.S. actors have with the U.S. control over ICANN is that it can unilaterally interfere
with the ICANNs policy process, and the Internets root server.

Change in governance of ICANN

The new governance architecture proposes to completely revamp old arrangement post September 30,
2016.
ICANN will become an independent body in managing its domain names-related policy work, and the
Internets root zone file, containing information about Internet names and numbers, addresses, which are
copied and replicated by other servers the world over.
The gatekeeper role of Internet addresses will be free from US oversight and these functions would shift to
the broader global online community.

Indias position

55

Indias proposal is that the Internet should be managed through the multi-stakeholder approach and the
governments should have supreme right and control on matters relating to international security.
India has described the role of the government as an important stakeholder and a custodian of security
for the global Internet infrastructure.

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India in its submission has said that under the new transition, the body managing the Internet should have
accountability towards governments in areas where governments have primary responsibility, such as
security and similar public policy concerns.

Concerns with multi-stakeholder Model

US politicians and corporations have expressed concern that their government is giving away the Internet,
and that powers such as China and Russia may hijack control.
Numerous U.S.s executive, legislative and judicial control over ICANN and the root server will not change
with the current proposal.
Multi-stakeholder models can vary in form and can exclude key stakeholders.
Indias fears about multi-stakeholder governance as decision-making being dominated by corporations,
especially U.S.-based corporations.
With an independent status finally settled, ICANN may promote its narrow self-interest and commercial
pursuits, disregarding global public interest.
Jurisdiction over ICANN is not addressed in proposed model.
In past, ICANN resisted attempts by the United Nations International Telecommunication Union to take over
its job.

Way forward

It is required is to get ICANN incorporated under international law, with host country immunities for an
international organization.

6.7. OPERATION VEERANGANA

Operation Veerangana is community based initiative of Delhi Police to curb crime against women in the city.
Police will engage housewives to serve as their eyes and ears and report to them about suppressed cases
of sexual abuse, domestic violence and street crimes.
Dozens of housewives will be trained to spot and report crimes taking place in their immediate
neighborhood.
Recently, Under Operation Nirbheek, polices interaction with school students has led to dozens of girls
coming forward with shocking revelations about sexual abuse by family members, teachers or unknown
persons.

Why housewives

Police chose to train housewives because they are often the 'silent observers', choosing not to report several
incidents.
The housewives often hear of sexual abuse or domestic violence most of which do not get reported
taking place within the four walls of a home.
Moreover, the police believe that victims are more likely to open up with housewives with whom they
frequently interact.

Rise in rape cases

56

In 2014, the last data by the National Crime Records Bureau (NCRB) showed that the number of rapes in the
country rose by 35.2 percent to 33,707 in 2013 - with Delhi reporting 1,441 rapes in 2013 - making it the city
with the highest number of rapes.

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6.8. TERROR ATTACK IN BELGIUM


A series of deadly explosions rocked Belgium's capital, targeting the main airport of Zaventem and the city's
metro system.

At least 34 people have been killed in bombings at the Zaventem airport and the Maelbeek metro station
that took place.
Brussels, which hosts key European Union institutions, is the de facto capital of Europe.

Islamic state (IS) Terrorist group

The Islamic State group, which was behind the Paris attacks, claimed responsibility for the Brussels
bombings.
The Islamic State in particular has carried out a number of attacks across the world, from Paris to Ankara, in
recent months.

Why public places are attacked by IS?

The IS is facing military setbacks in and around the so-called caliphate.


There is rationale for IS to attack public places and kill innocent people
First, not being able to expand the territories of the caliphate, the IS wants to export terrorism to other
countries so as to stay relevant and find more recruits.
Second, and more important, the IS is fighting a war against the civilisational values of the modern
world. By attacking the public, it wants to create panic in free and open societies, break their social
cohesion and then reap the dividends.

Why Belgium?

Belgium has been a focus for counterterrorism officials for years because of the large number of Belgian
foreign fighters who have traveled to join ISIS and other terror groups in Syria and Iraq.
Per capita, Belgium has the highest number of foreign fighters in Syria of any Western European nation.
Several cities have housed Islamist cells, but the most active have been in Brussels and in the south-western
suburb of Molenbeek in particular - an area with a high ethnic Moroccan population and a high rate of
unemployment.
The terror attack on Brussels is not about a revenge strike, but about the intense radicalisation deeply
entrenched in broader communities and neighbourhoods.

6.9. JUSTICE VISHNU SAHAI INQUIRY COMMISSION


Why in news?
A one-man inquiry commission headed by Justice (retired) Vishnu Sahai was formed to look into administrative
lapses in controlling the violence and role played by media as well as politicians in flaring up the Muzaffarnagar
communal riots.
Findings of the commission

Commission has blamed the negligence of the local administration, the failure of the intelligence
agencies and exaggerated reporting in the social and print media for the communal riots.
Whether by omission or by the terms set for it, the Sahai commission appears to have exonerated the entire
political class.
The Justice Sahai report gives the State government (Uttar Pradesh) a clean chit.

Criticism of report

57

Civil society organizations have criticized the commission findings and accused commission for deliberately
absolving politician from riots.
Report has also stopped short of extending the line of responsibility for local administrative failures to the
Secretariat.
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6.10. EXERCISE FORCE 18


India hosted its first multilateral Field Training Exercise (FTX) with regional countries.

The theme of exercise was Humanitarian Mine Action and Peacekeeping Operations.
It was largest Multinational Field Training Exercise (FTX) ever conducted on Indian soil.
Army units from eighteen countries (ASEAN+8 dialogue partners) were participated in exercise.
Exercise FORCE 18 would build common understanding and achieve interoperability amongst the 18 ASEAN
Plus countries.

Importance of such exercise

In the face of transnational natural disasters and other non-traditional security challenges in ASEAN region
this exercise can be considered as Watershed event.
The exercise has added substance to Indias Act East Policy by projecting Indias soft as well as hard power
capabilities.
It provided an opportunity for India to further strengthen cooperation with the region in the domains of
maritime security, counter-terrorism, humanitarian assistance and disaster management, peacekeeping
operations and military medicine.
These type of multilateral exercise can enhance the peace and security of the region, and India is emerging
as responsible stakeholder in regional security.
A successful hosting of Exercise Force 18 would facilitate India in establishing itself as a credible major
power in the Asia-Pacific region.

6.11. IRON FIST EXERCISE 2016


Iron Fist is an Indian Air Force exercise held at Pokhran, Rajasthan.
Aim: - To demonstrate a synchronized aerial ballet that would showcase IAFs deadly combat capability over
the entire spectrum of aerial operations.
Significance

58

The exercise will send a statement to Indias adversaries about the preparedness of the IAF to meet the
national security challenges faced by India.
This exercise holds special significance as it represents the lethal face of the Indian Air Force in its preeminent role as the cutting edge of our nations military capability.
The Indian Air Force had demonstrated its Combat and fire power capabilities.

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7. ECOLOGY AND ENVIRONMENT


7.1. CATEGORIZATION OF POLLUTING INDUSTRIES

India's environment ministry has sought to classify industrial units in a category of colours based on their
pollution potential.
The categorisation is based on a pollution index developed by the environment ministry taking into account
the emissions, effluents, hazardous waste generated, and the resources it consumes.
They would be classified on the basis of how they score on a scale ranging between 15 to 60:
Colour
Red (Heavily Polluting)

Score
60 and above

Examples
Petrochemicals, pharmaceuticals, sugar, paper and pulp,
nuclear power plants, thermal power plants, tanneries,
organic chemicals, fertilizers, fire crackers

Orange

Between 30-59

Coal washeries, glass manufacturing, paints, stone crushers,


aluminum and copper extraction from scrap

Green

Between 15-29

White (Non-polluting)

Below 15

Aluminum utensils, steel furniture, soap manufacturing, tea


processing
Air cooler, AC units, Chalk factories, Biscuit tray units

The classification is for entire industrial sectors and not individual units.
The system of annual renewal of certification will also be scrapped with this. The Environment Ministry has
suggested five years renewal for red category, ten years for orange and one time certification for green.
White industries would not require any green clearance.

Benefits

This would place the heavily polluting industries under greater scrutiny.
Low polluting industries would be saved from unnecessary hassles of periodic renewals. Thus, it would
facilitate ease of doing business.
Better site selection for new red category industries as they will not be allowed in ecologically sensitive
areas.
Colour coding would enable easier financing for environmental friendly industries.

7.2. YAMUNA FLOODPLAINS


Why in news?

Recently Art of Living (AoL) had organized a cultural event on Yamunas floodplain.
The event came under criticism from environmental activists and NGOs because of the damage it was likely
to cause to the floodplains due to construction activities of gigantic proportions.
While the NGT allowed the event to take place, it ordered the AoL foundation to pay a fine of Rs. 5 crore for
the remedial and restoration work.

What is floodplain?

59

Floodplain is the area adjacent to a river that is not always under water, but is prone to flooding. It is an
extension of the riverbed and is an integral part of any river-system
It is an ecologically sensitive area.
In the case of the Yamuna in Delhi, the area that is likely to get submerged at least once in a 25-year period
has been classified as its floodplain.

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Significance of Floodplain

Flood protection: As it provides more room to the river in the event of its rise
Improve water quality: When inundated, it acts as natural filters removing excess sediments and nutrients.
Recharged Aquifers: Outside of a rivers main channel, water flow is slowed and has more time to seep into
the ground where it can replenish underground water sources.
Improved Wildlife Habitat: home to some of the most biologically rich habitats on Earth.
Recreational Industries and Eco-tourism: fishing, hunting, camping, hiking, wildlife watching and boating greatly enhanced by the natural processes of rivers and healthy floodplains.

Impact on Environment

One of the important functions of the floodplains is groundwater recharge. In the process of flattening, the
surface gets hardened, and it severely impacts its groundwater recharge capability.
Change in the natural gradient of the floodplain would diminish its flood-carrying capacity.
Cutting of trees and dumping of debris impacts aquatic and bird population.
Increased footfall would also affect the region.

7.3. CLIMATE ENGINEERING SOLUTIONS

Climate engineering refers to the deliberate and large scale intervention in the Earths climate system with
the aim of limiting adverse climate change.
Generally two categories of engineering solutions:
o Greenhouse gas removal: Examples
Carbon capture and storage (CCS), where some of the carbon dioxide being emitted by coal-fired
power stations is recaptured by physically sucking it in and transporting it elsewhere (like oilfields) to
be sequestered underground.
Biochar which is created by pyrolysis of biomass
Enhanced weathering involves a chemical approach to remove carbon dioxide involving land or
ocean based techniques. Examples of land based enhanced weathering techniques are in-situ
carbonation of silicates.
Afforestation
o Management of Sunlight: Here the plan is to reduce global warming by cutting down the heat absorbed
by our planet from the sun. Examples:
Stratospheric aerosol injection (SAI): SAI involves spraying into the stratosphere fine, light-coloured
particles designed to reflect back part of the solar radiation before it reaches and warms the earth.
Sulphur Dioxide gas is used for the process.
Cirrus cloud manipulation: Here the cirrus clouds are removed or thinned so that their long-wave
trapping capacity is reduced and thus cools the surface.
Marine cloud brightening: The low warm clouds which are highly reflective to sunlight are modified
to increase their reflectivity.
Space sunshade: Obstructing sunrays with space based mirrors
Using pale-coloured roofing material or growing high albedo crops.

7.4. NEW E-WASTE MANAGEMENT RULES

Recently, the Ministry of Environment and Forests have proposed the E-waste (Management and Handling)
Rules 2016 that will replace the earlier Rules of 2011

Main Features

60

Applicability
Earlier it was applicable only to producers and consumers, dismantlers and recyclers. Now extended to
Manufacturer, dealer, refurbishers and Producer Responsibility Organisation (PRO). This will help in
leakage of e-waste to informal sector
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Earlier only Electric and Electronic equipments were covered. Now even their components and spare
parts are also covered. Also Mercury containing lamps like CFLs also included.
Extended Producers Responsibility (EPR):
Extended producer responsibility (EPR) is a strategy designed to promote the integration of
environmental costs associated with goods throughout their life cycles into the market price of the
products.
Single EPR Authorization for Producers is now being made CPCBs responsibility to ensure pan India
implementation.
Further, flexibility is given for ease of implementation of EPR provisions. Options like setting up of PRO,
e-waste exchange, e-retailer, Deposit Refund Scheme are given to Producers to ensure efficient
channelization of e-waste.
Deposit Refund Scheme is an additional economic instrument introduced.
Under E-waste exchange independent companies could offer services of sale and purchase of end-of-life
equipments.
Collection is now exclusive responsibility of the Producer. There is no separate authorization needed for
this as was required earlier.
A target based approach has been mandated for collection. This is 30% of the quantity of waste
generated in first phase and will eventually move to 70% in 7 years.
Bulk Consumer responsibility: They have to file annual returns. Health facilities have been added to the
definition.
Participation of State government: Involvement of state government for effective implantation of the rules
and simultaneously ensure welfare, safety and health of the workers involved in this e-waste management
sector.
Provision on Reduction of Hazardous Substances (RoHS) during manufacturing stage has been brought in
line with existing EU regulations. A provision for withdrawal and recall of the products in case of noncompliance is added.

A Much Needed Improvement

India produces around 8 lakh tones of e-waste annually while 151 registered recycling facilities can handle
only half of them.
Presently, the e-waste management system suffers from proliferation of the informal sector. They adopts a
highly unscientific way of handling waste that is extremely hazardous to environment and health. The new
rules would help in putting a check on this.
The success of bringing the consumer in the formal chain would depend on two things:
Better repurchase offer than the unorganized sector; Deposit Refund Scheme would help in this
Easy collection method
Stress has been laid on simplification of procedures and flexibility on the part of the producers.
Role of state government and other stakeholders is underscored that promises better implementation.

Challenges

The recycling capacity needs to increase. Presently it can handle only half of the waste produced.
Segregation of urban solid waste management has to improve where many e-waste get mixed.
Habit of Indian households to cling on to defunct gadgets and not letting them go.

Way Ahead

61

A great opportunity for India to deal with this growing menace which will assume great proportions if not
addressed now with full vigour.
An awareness campaign would help in implementation as well.

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7.5. NEW PLASTIC WASTE MANAGEMENT RULES


Why in news?

Government recently amended the Plastic Waste (Management and Handling) Rules, 2011.

Main Changes

Increasing the minimum thickness of plastic carry bags from 40 microns to 50 microns. This would increase
the cost and the tendency to provide free carry bags would come down.
Responsibility of local bodies: Rural areas are brought under the rules since plastic has reached rural areas
as well. The gram sabhas have been given responsibility of implementation.
Extended Producer Responsibility: Earlier, EPR was left to the discretion of the local bodies. First time, the
producers and brand owners have been made responsible for collecting waste generated from their
products.
Producers are to keep a record of their vendors to whom they have supplied raw materials for
manufacturing. This is to curb manufacturing of these products in unorganised sector.
Responsibility of waste generator: All institutional generators of plastic waste shall segregate and store the
waste generated by them in accordance with the Solid Waste Management Rules, and handover segregated
wastes to authorized waste disposal facilities.
Responsibility of street vendors and retailers: Not to provide such carry bags or fine would be imposed.
Only the registered shopkeepers on payment of a registration fee to local bodies would be allowed to give
out plastic carry bags on charge.
To promote the use of plastic for road construction or energy recovery.

Why not ban plastic bags?

As per the Environment ministry an eco-friendly product, which is a complete substitute of the plastic in all
uses, has not been found till date.
In the absence of a suitable alternative, it is impractical and undesirable to impose a blanket ban on the use
of plastic all over the country.

7.6. AGASTHYAMALA BIOSPHERE RESERVE

The Agasthyamala Biosphere Reserve has recently been included in UNESCOs list of World Biosphere
Reserve Network.

Notable Points

62

The area falls in the Malabar rainforests and is one of the noted hotspot in
the Western Ghats.
It covers about 3500 sq kms and is part of different districts of Tamil Nadu
and Kerala.
Agastya Mala, the peak after which the reserve is named, rises up to almost
1868 metres above sea level, in Thiruvananthapuram.
There are many endemic and endangered species of flora and
fauna in the reserve including endangered Nilgiri Tahr.
It includes the Indian eco regions of moist deciduous forests,
montane rainforests and Shola forests and grasslands.
There are three wildlife sanctuaries within the reserveShendurney, Peppara, and Neyyar.
The Kalakkad Mundanthurai Tiger Reserve was recently included
as part of the biosphere reserve.
It is also home to Kanikaran, one of the oldest surviving ancient
tribes in the world.
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UPSC PRELIMS 2005


Which one of the following is
not a Biosphere Reserve?
(a) Agasthyamalai
(b) Nallamalai
(c) Nilgiri
(d) Panchmarhi

UPSC PRELIMS 2006


Where is Bundala Biosphere Reserve
which has been recently added to the
UNESCOs Man and Biosphere (MAB)
network, located?
(a) Russia
(b) India
(c) Sri Lanka
(d) Bangladesh

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There are 18 biosphere reserves in India and 9 of them were included in the prestigious UNESCO World
Biosphere Reserve Network. Agasthyamala is the tenth one to be added to the list. The others are Nilgiri,
Gulf of Mannar, Sunderban, Nanda Devi, Nokrek, Pachmarh, Similipal, Achanakmar-Amarkantak and Great
Nicobar.

7.7. FLY ASH


Why in news?

Recently an expert panel of MoEF has expressed concerns over use of fly ash for filling mines as this can have
environmental consequences in the form of:
Contamination of ground water due to leaching of heavy metals in fly ash
Reduction in recharging of ground water due to fly ash filled mine voids
Ash-filled voids cannot support tree species because of poor root system development which in turn
results in uprooting of trees even by low velocity winds.
Since its findings are not conclusive, it has called for a 10-year exhaustive study over this issue.

About Fly Ash

Fly ash is one of the coal combustion products and is composed of fine particles that are driven out of the
boiler with flue gases. Ash that falls at the bottom of the boiler is called bottom ash.
Fly ash includes substantial amounts of oxides of silica, aluminum and calcium. Element like Arsenic, Boron,
Chromium, lead etc are also found in trace concentrations. It, thus, poses hazards to environment and
health.
However, at the same time due to the presence of these minerals fly ash has certain unique properties. It
can be used as a construction material, filling old mines, building railway embankments, and reclamation of
low-lying areas.

Situation in India

63

Indian coal has very high ash content - 30-40% ash content as against 10-15% in imported coal.
Indian government has realized that this limitation can be converted into an advantage and thus steps have
been taken:
2009 notification of MoEF provided guidelines on ash utilization advocated its usage within 100 km
radius of thermal power plants.
New and innovative uses are also taking place- especially initiated by power companies like NTPC in
collaboration with Institutes like IIT-Delhi and IIT-Kanpur e.g. Manufacture of pre-stressed railway
concrete sleepers
Transportation cost :Some States like Orissa have ordered the plants to subsidize the transport costs
Recently Maharashtra government has decided to come up with an export policy for fly ash in the light
of demand from places like Singapore and Dubai.
However, India is still not able to match the potential of its fly ash use. As per a recent study by CSE only 5060% of the fly ash generated is being utilized.
There is a need to increase the capability, giving incentives to industry and new technology introduction in
this field.

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8. CULTURE
8.1. ROCK PAINTINGS DISCOVERED IN KONDANE CAVES

40 rock paintings were recently discovered in the Kondane caves in Raigad district in western region of
Maharashtra.
The images were found in both natural caverns and man-made caves.
An unfinished Buddhist chaitya and a vihara
were found in two man-made caves in the
group. A chaitya is a Buddhist prayer hall with a
stupa at one end. A vihara is a monastery.
The Buddhist rock-cut architecture found in
these caves belongs to the Hinayana phase of
Buddhism.
It is an important discovery because we were
not aware of the existence of rock art images in
this region of Maharashtra.
A striking image found was that of a mythical
figure, perhaps a demon. Other paintings
reflected everyday life and occupations such as
hunting deer.
The style and articulation of these paintings
suggest that they have been drawn during the late historical period of second century B.C. onwards.

8.2. POLICY TO ADOPT WORLD HERITAGE SITES

64

UNESCO, with the help of 21 member World Heritage Committee and advisory bodies such as International
Council on Monuments and Sites (ICOMOS) and International Union for Conservation of Nature (IUCN),
within the framework of its Operational Guidelines, decides about the cultural and natural sites to be
included on the World Heritage list.
Such cultural and natural sites must display the necessary Outstanding Universal Value (OUV), fulfill one or
more out of 10 prescribed criteria (as given below), maintain the condition of authenticity and integrity and
should be in a good state of conservation.
There are 32 sites from India declared as World Heritage sites - 25 are cultural sites and 7 are natural sites.
The Criteria for the assessment of Outstanding Universal Value (OUV) as per UNESCOs Operational
Guidelines are
to represent a masterpiece of human creative genius;
to exhibit an important interchange of human values,
to bear a unique or at least exceptional testimony to a cultural tradition or to a civilization
to be an outstanding example of a type of building, architectural or technological
to be an outstanding example of a traditional human settlement, land-use, or sea-use which is
representative of a culture (or cultures), or human interaction
to be directly or tangibly associated with events or living traditions, with ideas, or with beliefs, with
artistic and literary works of outstanding universal significance.
to contain superlative natural phenomena or areas of exceptional natural beauty and aesthetic
importance
to be outstanding examples representing major stages of earth's history,
to be outstanding examples representing significant on-going ecological and biological processes
to contain the most important and significant natural habitats for in-situ conservation of biological
diversity.
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8.3. CHOLA SCULPTURE OF CHANDESVARAR


A sculpture of Chandesvarar, believed to belong to 10th century AD, has been found at Sundaikkai village near
Umaiyalpuram near Trichy, Tamil Nadu.
Description of the sculpture

The headgear is arranged as 'jatabhara', a hairstyle worn particularly by Shiva,


usually characterised by a large number of penitential plaits worn in a bunch on
the side.
The apparel at the hip is short and wavy and is kept in place by a well draped
cloth around the waist called idaikkattu.
The sculpture is found seated in suhasana with one leg folded and kept on the
seat, his other leg rests on a pedestal.
He is decorated with a sacred thread, a band at the stomach, and scanty
ornamentation.

About Chandesvarar

Chandesvarar is one of the 63 Nayanars of the Saivite sect and was the first
among them to find a place in temples.
He is housed in a separate shrine on the northern side of all the Saivite temples, facing the presiding deity.
The most distinguished shrine of Chandesvara was built by Rajaraja I at the Rajarajesvaram at Thanjavur.

Nayanars:

The 7th to 9th centuries saw the emergence of new religious movements in south India, led by the
Nayanars (saints devoted to Shiva) and Alvars (saints devoted to Vishnu) who came from all castes
including those considered untouchable.
They were critical of the Buddhists and Jainas and preached love of Shiva or Vishnu as the path to
salvation.
They drew upon the ideals of love and heroism as found in the Sangam literature and blended them with
the values of bhakti.
There were 63 Nayanars, who belonged to different caste backgrounds such as potters, untouchable
workers, peasants, hunters, soldiers, Brahmanas and chiefs.
The best known among them were Appar, Sambandar, Sundarar and Manikkavasagar.
There are two sets of compilations of their songs Tevaram and Tiruvacakam.

8.4. PANCHTEERTH: B R AMBEDKAR

65

Government of India will develop five places as Panchteerth in the honour of B R Ambedkar.
Panchteerth include Amedbkars birthplace in Mhow, the place in London where he stayed while studying in
UK, Deeksha Bhoomi in Nagpur, where he took education, Mahaparinirvan Sthal in Delhi, and Chaitya
Bhoomi in Mumbai.
In addition, the government is also building the Dr Ambedkar Foundation at 15, Janpath in Delhi.
The Prime Minister laid the foundation stone of a memorial to be built at Alipur Road where he spent his last
days.
The Prime Minister said the vision for developing India's maritime potential, and for Inland Waterways, was
first conceived by Ambedkar. So, on his birth anniversary, India would host an international event at Mumbai
to help harness maritime strengths and create waterways.

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8.5. SIDDI TRIBE

The Siddi also known as Sheedi, Habshi or Makrani, are an ethnic group inhabiting India and Pakistan.
They are descendants of Africans from North-East and East Africa who were brought to India as slaves,
soldiers or servants.
Spread: Karnataka, Gujarat and Hyderabad in India and Makran and Karachi in Pakistan as the main
population centres
Current estimated population: 20,00055,000 individuals
Religion: Siddis are primarily Sufi Muslims, although some are Hindus and others Roman Catholic Christians.
The Siddis of Gujarat live around Gir Forest National Park and Wildlife Sanctuary.
Although Gujarati Siddis have adopted the language and many customs of their surrounding populations,
some African traditions have been preserved. These include the Goma music and dance form, which is
sometimes called Dhamaal.

8.6. TODA TRIBE

Spread: isolated Nilgiri plateau of Southern India.


Small pastoral community with population range 700 to 900 during the last century.
the Toda have attracted a disproportionate amount of attention because of their unlikeness to their
neighbours in appearance, manners, and customs.
During the last decade both Toda society and culture have also become the focus of an international effort
at culturally sensitive environmental restoration.
The Toda lands are now a part of The Nilgiri Biosphere Reserve, a UNESCO-designated International
Biosphere Reserve and is declared UNESCO World Heritage Site.
Their sole occupation is cattle-herding and dairy-work.
Religion: Centres on the buffalo
Threat: Some Toda pasture land was lost due to agriculture by outsiders or afforestation by the State
Government of Tamil Nadu.

8.7. ASUR TRIBE

The members of the tribe live in Jharkhand, pockets of Bihar, West Bengal and a few other states. The 2011
Census put the number of Asurs at 22,459 in Jharkhand and 4,129 in Bihar.
The Asurs claim to be descendants of Mahishasur, the buffalo-demon whom Goddess Durga kills after a
spirited fight lasting nine nights. Its this mythology in mainstream Hinduism thats celebrated in the form of
the nine-day-long Durga Puja, but observed as Mahishasur Dasain among the Asurs, who hold a period of
mourning during which they largely stay indoors.
Traditionally, the Asur have been iron-smelters and slash burn cultivators. Thus, they have been nomadic.
According to one of the theories, the Magadh Empire benefited a lot from the weapons the Asurs made.
But forest acts and regulations have snatched away their traditional rights over the forest. This has affected
their practice of iron-smelting and shifting cultivation. Now they are settled in villages.
They are also losing the traditional skills of iron smelting.
The Unesco has listed the Asur language as definitely endangered with only 7,000 speakers left.

8.8. BONDA TRIBE

This tribe lives in the isolated hill regions of the Malkangiri district of southwestern Odisha, near the junction
of Odisha, Chhattisgarh, and Andhra Pradesh. Their current population is 12,000.

Characteristics

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Bondas have almost no connection to the outside world. Only 6% of Bondas are literate.
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In Bonda society, the women enjoy a privileged position.


Bonda girls largely marry boys who are at least five to ten years younger than them. Thus the girl looks after
her husband as he grows up and in turn he cares for his older wife.
The number of women among the Bonda greatly exceeds the number of men.
Poverty became a fundamental issue among the Bonda people due to social customs regarding obligatory
marriages and deaths, along with other socio-religious practices.

8.9. JAGOR FOLK DANCE

A dance drama of Goa based on no continuous plot or narrative


Performed jointly by the Hindus and Christians
To offer prayer to deity to protect the village from the river water. It is faith that it averts natural calamities
and quarrels among themselves.

8.10. ZARDOZI

Zardozi is beautiful metal embroidery, which was used for the attire of the Kings and the royals in India.
Persian terms Zar meaning gold and Dozi meaning embroidery.
It involves making elaborate designs, using gold and silver
threads. Precious stones, diamonds, emeralds, and pearls
are also used.
Uses: to adorn walls of the royal tents, scabbards, wall
hangings and the paraphernalia of regal elephants and
horses.
Zardosi attained its summit in the 17th century, under
the patronage of Akbar. Under the rule of Aurangzeb, the
royal patronage stopped and led to the decline of craft.
With the 18th and 19th century bringing industrialization,
it suffered further setback.
Zardosi embroidery work is mainly a specialty of
Lucknow, Bhopal, Hyderabad, Delhi, Agra, Kashmir,
Mumbai, Ajmer and Chennai.
In 2013 the Geographical Indication Registry (GIR) accorded the Geographical Indication (GI) registration to
the Lucknow Zardozi.

8.11. BAUL

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The Baul are a group of people from West Bengal and Bangladesh.
Bauls are a very heterogeneous group, with many sects, but their membership mainly consists of Vaishnava
Hindus and Sufi Muslims.
They can often be identified by their distinctive clothes and musical instruments.
Though Bauls comprise only a small fraction of the Bengali population, their influence on the culture of
Bengal is considerable.
In 2005, the Baul tradition was included in the list of Masterpieces of the Oral and Intangible Heritage of
Humanity by UNESCO.
Baul music
It is a folk song performed by Baul community.
Its lyrics carry influences of the Hindu bhakti movements and the suphi, a form of Sufi song exemplified
by the songs of Kabir.
Musical instruments used by them are ektara, dotara, khamak, duggi, dhol and khol.

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9. ALSO IN NEWS
9.1. CARRIAGE BY AIR (AMENDMENT) BILL, 2015
Why in News?

Recently, Rajya Sabha has passed the Carriage by Air (Amendment)


Bill, 2015. It was passed by the Lok Sabha in December 2015.
The bill seeks to empower Union government to revise the limits of
liability for airlines and compensation as per the Montreal
Convention.

Features

The Bill amends the Carriage by Air Act, 1972 giving effect to the
Montreal Convention, 1999.
It intends to increase the liability limit for damage in case of delay,
injury or death or even inordinate delay in flights.
This would enable the Indian carriers to pay compensation amount
that is equivalent to the rates paid by their global counterparts.

Montreal Convention 1999:


India acceded to the Montreal
Convention in May 2009.
The Montreal Convention
establishes airline liability in
the case of death, injury or
delay to passengers or in
cases of delay, damage or loss
of baggage and cargo.
The Convention also provides
for reviewing the limits of
liability of the air carriers
every five years.

9.2. RANKING ON GOVERNANCE OF STATES IN INDIA


Why in News?

Recently, Public Affairs Centre (PAC) think tank based in Bangalore has done the governance survey and
published public affairs index (PAI) with respect to governance in states.
Survey was based on ten themes such as Essential infrastructure, Human development, Social protection,
Women and Children, Control of crime, law and order, delivery of justice, Transparency & Public
Accountability, environment, fiscal management, economic freedom

Key findings

Kerala and Tamil Nadu secured first and second ranking


in PAI in governance in States, while Bihar, Jharkhand
and Odisha are lagging on this front.
Karnataka secured top position among all States in the
category of providing adequate and effective social
protection for its citizens. West Bengal, and Kerala
secured second and third positions respectively in this
category.
It has been also noted that states that do well in health
also do well in education and well-being of women as well.

9.3. ETHICS COMMITTEE IN LOK SABHA


Why in News?

Lok Sabha Speaker has referred the issue of alleged unethical conduct of some MPs to the Ethics Committee
of the House.

Ethics Committee:

68

It was constituted in Rajya Sabha in 1997 and in Lok Sabha in 2000.


It enforces the code of conduct of members of Parliament.
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It examines the cases of misconduct and recommends appropriate action. Thus, it is engaged in maintaining
discipline and decorum in Parliament.
Chairman of this committee is appointed by speaker and chairman of respective houses.

9.4. KAYAKALP AWARD SCHEME


Why in News?

Recently, health ministry has felicitated the Kayakalp awardees for their work in maintaining high standards
of sanitation and hygiene in public health facilities.
The scheme aspires to inculcate the culture of cleanliness to gain trust and confidence of community in
public health facilities.

Objective

To promote cleanliness, hygiene and infection control practices in public health care facilities,
To incentivize and recognize such public healthcare facilities that show exemplary performance in adhering
to standard protocols of cleanliness and infection control,
To inculcate a culture of ongoing assessment and peer review of performance related to hygiene, cleanliness
and sanitation, to create and share sustainable practices related to improved cleanliness in public health
facilities linked to positive health outcomes.

9.5. CHANGES IN GOVERNMENT ADVERTISEMENTS RULES

Earlier, the Supreme Court had restrained the government from publishing the photographs of political
leaders, ministers or prominent persons in government advertisements except those of the President, PM
and the CJI.
Recently, Supreme Court has modified its earlier order and allowed publication of pictures of Union
Ministers, Chief Ministers, Governors and State Ministers in government advertisements.
It was argued that if only Prime Ministers photograph is allowed in government advertisements then it
would promote personality cult which has been described as an anti-thesis of democracy.

9.6. WARNINGS ON TOBACCO PRODUCTS


Why in News?

A parliamentary committee has submitted its report regarding the guidelines on displaying warning on
tobacco products.

Background

As per present provisions, warning should be displayed on 40 per cent of the packet and on only one side.
Presently, India ranked 136 among 198 countries in terms of prominence of pictorial health warnings on
tobacco packaging.
As per the WHO report, almost around 6 million people die from tobacco use and exposure to tobacco
smoke.
Earlier, health ministry has recommended that pictorial warnings on cigarette packs should be increased to
85 per cent.
However, this was opposed by the tobacco industry and put on hold after the parliamentary panel was asked
to analyse the impact on the industry.

Recommendations

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Pictorial warnings to be restricted to only 50 percent on both the sides of cigarette packets.
In the case of beedis, chewing tobacco and other tobacco products, the warning should be restricted to 50
per cent of the display area and on only one side of the packet.
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The committee noted a lack of coordination among various government agencies in achieving the
objectives of tobacco control.

Way Forward

Encourage use of alternative products such as nicotine gums, water pipes etc.
Focus on changing the behavioral approach which will have a longer term impact.
Mobilize film personalities, sportspersons to create awareness about ill effects of tobacco.
Introduce a special surcharge on sales of tobacco products and use this money towards the treatment of
cancer patients.

9.7. CHANGES IN ATAL PENSION YOJNA (APY)

The Government has decided to give an option to the spouse of the APY subscriber to continue
contributing to APY account of the subscriber, for the remaining vesting period, till the original subscriber
would have attained the age of 60 years.
The spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber
until the death of the spouse.
Present Provision: After the premature death (death before 60 years of age) of the APY subscriber, lumpsum amount is given to spouse of the subscriber.

(For detailed information on Atal Pension Yojna, refer March 2015 current affairs.)

9.8. INFRASTRUCTURE & URBAN DEVELOPMENT: WORLD ECONOMIC


FORUM REPORT
Why in news?

World Economic Forum has published a report on Infrastructure & Urban Development: Building
Foundations for Transparency with focus on India.

Key Findings of the report

70

The main focus of the report is on the real estate and infrastructure sectors.
More than two-thirds of the respondents perceive that the Indian IU (infrastructure and urban
development) industries are more affected by corruption compared to other industries.
On an average, Indian firms pay 50 per cent of total project cost, as bribes to speed up clearances for real
estate and infrastructure ventures.
Ambiguous norms for change in land use that are exploited by influential developers.
Improper land records and the need for multiple clearances are the top reasons for project developers are
paying bribes.
Complex and opaque process for getting permits is the main cause of delays for project clearance.
Solutions proposed:
Technology: It can be a main enabler for more transparency in two ways:
o to make transactions visible to the public, allowing for closer monitoring by citizens social auditing)
o To reduce human interaction in transactions, this can limit opportunities for bribery.
Empowering citizens for change: It is crucial because citizens carry the cost of corruption as taxpayers and
consumers.
From local to global: The outcomes of the project can be used by global and local businesses, government,
and society in a wider sense, and could be scaled up and transferred to other regions.
Developing feasible solutions and collecting local knowledge will further enhance our understanding of anticorruption and transparency.

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9.9. BANK BOARD BUREAU


[Please refer August 2015 issue for information about Indradhanush plan]

The bureau was announced last August as part of the seven-point Indradhanush plan to revamp public
sector banks.
The bureau will have three ex-officio members and three expert members, in addition to the Chairman.
Former Comptroller and Auditor-General of India Vinod Rai will be its first Chairman

Function and impacts

To recommend appointments to leadership positions and boards in public sector banks


To advise on ways for raising funds and mergers and acquisitions to the lenders.
It will play a critical role in reforming the troubled public sector banks by improving governance.
With professionalization of appointment in leadership position, the BBB is first step towards Bank
Investment Company as recommended by P J Nayak committee.

9.10. CAPITAL INFUSION IN BANKS


Why in news?

RBI unlocks Rs.40, 000 crore additional capital whereas Government will infuse a capital of Rs.25,000 crore
this financial year into state-owned banks.

Revised Norms which unlocks 40000 crore for banks

The RBI has made some amendments to the treatment of certain balance sheet items for the purposes of
determining banks regulatory capital.
The revisions introduced include recognition of revaluation reserves arising from change in the carrying
amount of a banks property consequent upon its revaluation as common equity tierI capital instead of the
earlier tier 2 capital.
Banks can recognise foreign currency reserves arising due to translation of financial statements of foreign
operations to the reporting currency as common equity tier-I (CET1) capital.

Effect of norm revision

It aligned the definition of regulatory capital with the internationally adopted Basel III capital standards.
The move will unlock Rs 35,000 crore capital for public sector banks and Rs 5,000 crore for private sector
banks.

Reason of such steps

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Huge burden of non-performing assets/bad loans over state owned banks


Non-performing assets of public sector banks are estimated at almost Rs. 4 lakh crore

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9.11. EMPLOYEES PROVIDENT FUND (EPF) TAX AND ROLLBACK

Over five crore subscribers have invested roughly Rs 8.75 lakh crore in the Provident Fund.
Government in the Union Budget proposed to tax 60% of an individual's provident fund corpus at the time of
withdrawal on retirement.
This is applicable for provident fund contributions made post April 1, 2016 unless it is invested in annuities.
This will encourage more private sector employees to go for pension security after retirement instead of
withdrawing the entire money from the Provident Fund
This could encourage individual investors shifting to tax-free bonds or debt mutual funds, which currently
offer higher returns.
The proposal was rolled back after strong protest from salaried class and opposition in parliament.

9.12. POST-HARVEST LOSSES OF FARM PRODUCE


Why in News
The Centre is considering a fresh study on the percentage of post-harvest losses of farm products following
contradictory findings.
Government has announced 100% FDI in marketing of food products in Budget. This move has been
criticized by Organisations of small retailers, street vendors and farmers.
Contradictory Findings
A report of the Indian Council of Agricultural Research (ICAR)Central Institute of Post-Harvest Engineering
and Technology (CIPHET)-in Ludhiana showed that the cumulative percentage of post-harvest losses of
cereals was low in the range of 4.655.99 per cent while that of pulses was between 6.368.41 per cent and
oil seeds 3.089.96 per cent.
However, an earlier paper put out by the Department of Industrial Policy and Promotion had quoted data
from agriculture ministry to say that 25-30 per cent of fruits and vegetables and 5-7 per cent of food grains
in India are wasted.

9.13. REDUCTION OF BT COTTON ROYALTY FEES BY 74%


Why in News
Government has cut prices of genetically modified cotton seeds and slashed royalty fees by 74%,
Reason for the move
The Agriculture Ministry in December last year issued an order to control cotton seed prices including trait or
royalty value and a committee was set up to recommend the seed price.
The government has defended the slashing of trait fees and the proposal to revoke the patent for Bollgard-II
citing the accelerated resistance developed by the Pink Bollworm to genetically modified seed
Move will benefit nearly 8 million cotton farmers in India due to lower input cost of seeds.
Move will benefit the domestic seed companies and check the monopolistic pricing of the Monsanto which
has 90 percent share in Bt cotton seeds.
Concerns
It raises concerns about the countrys intellectual property rights regime.
Some sections of industry have termed it as arbitrary exercise of state power for not offering a methodology
on how the government arrived at the trait fees.
May impede R&D - Companies may have to reconsider their investments in seed-based R&D in the country
due to the current uncertain environment
Way forward
The dominance of any private entity like Monsanto should not be allowed to grow and perpetuate.
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9.14. PROJECT BASED RATING


Why in News

FY17 Budget proposed to develop a new credit rating system for projects.
Reason for the move - Due to rising NPAs and declining credit off take in infrastructure sector

Salient Points of the New Rating System

Rating would be assigned to infrastructure projects rather than the company executing the project
The rating would be based on various credit enhancement structures rather than just relying on the standard
perception of risk that resulted in mispriced loans.
Rating system will be developed after discussion with the credit rating agencies to incorporate relevant
factors and risks

Benefits of the move

This will make it easier for infrastructure projects to raise funds for various stages of work.
Will lead to correct assessment of risk for each stage of project - In an infrastructure project, the initial phase
(more risky) can be funded by a certain category of investors, other mode of funding (including from banks)
can come at later stage of the project which are less risky.

9.15. REFORMS IN FDI GUIDELINES


To facilitate ease of doing business for foreign investors and their domestic recipients, the Union Budget 2016-17
has proposed

liberalisation of foreign direct investment (FDI) norms in a host of sectors and


provision of Centre-State Investment Agreement.

What has been done and benefits


Sectors which have been included - insurance, pension, Asset Reconstruction Companies (ARC), stock exchanges,
marketing of food products, listed Central Public Sector Enterprises (CPSE) except banks and areas governed by
financial sector regulators, falling beyond the 18 specified NBFC activities.
A. Insurance Sector
The government had increased the composite cap (including FDI and foreign institutional investment) in
the insurance sector (and automatically in the pension sector as well) to 49 per cent from the 26 per
cent
It will be through the government approval (through Foreign Investment Promotion Board or FIPB)
route.
B. Banks and Financial Institutions:
The FY17 Budget has proposed 100 per cent FDI in ARCs through automatic route.
Foreign portfolio investors will be allowed up to 100 per cent of each tranche in securities receipts
issued by ARCs subject to sectoral caps.
Benefits - To help banks and financial institutions (FI) address the problem of huge bad loans.
C. Marketing in Food Products:
100 per cent FDI through FIPB route in marketing of food products produced and manufactured in India
Benefits - FDI in food processing
maximum returns for farmers for their produce
huge employment generation give impetus to food processing industry and
Will reduce the losses and wastage of food
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create vast employment opportunities.


Enhance food security of the nation
D. Indian Stock Exchanges - Hike in the investment limit for foreign entities in Indian stock exchanges from five
per cent to 15 per cent on par with domestic institutions.
Benefits - This move is aimed at
enhancing global competitiveness of Indian stock exchanges and
accelerating adoption of best-in-class technology and global market practices
E. CPSE - The existing 24 per cent limit for investment by foreign portfolio investors (FPI) in CPSEs other than
banks, listed in stock exchanges, will be increased to 49 per cent.
Centre State Investment Agreement Move to Boost FDI in India

CSIA, introduced in 2016-17 Budget, is a pact between centre and state which will allow effective
implementation of Bilateral Investment Treaty which Centre signs with foreign countries

Implication of the Move

States opting to ink these pacts with the Centre will be seen as more attractive destinations by foreign
investors
This will promote competitive and cooperative federalism

9.16. FALLING OIL PRICES AND ITS IMPACT ON INDIAN ECONOMY


Reasons

Demand side factors: Eurozones economic stagnation, Japans slipping into recession and Chinas
slowdown.
Supply side factors: The U.S. shale boom, revival of Libyas oil production, and continuous increase in
production in Iraq, OPEC decision of not cutting the production.

Positive Impacts

Improving trade balance and Current Account Deficit of India as it imports oil for meeting four-fifths of its
needs
Allowed for deregulation of diesel prices resulting into easing of the subsidy burden.
Funds saved above can be diverted to infrastructure creation, social welfare programs.
Diesel prices have a direct bearing on prices of essential commodities as it is the preferred fuel for the
transport sector. So inflation will reduce making exports more competitive.
Companies that use crude or crude derivatives as inputs, such as manufacturers of plastic products,
synthetic textiles, tyres and paints, will see profit margins expanding.

Negative Impacts

Reduction in remittances from west Asian countries as their economy is slowing down.
Increase in pollution as reduction in oil prices increased the demand of oil domestically and globally.

Conclusion
Falling oil prices present a unique opportunity for India to realign its various welfare approach to increase
efficiency by way of better targeting and efficient functioning.

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9.17. REFORMS IN INDIAN AGRICULTURE


Why in News

Famous agriculturalist Ashok Gulati has said that Indian agriculture has the potential to grow with 5% per
annum against present range of 3.6-4% per annum.
Farmer suicide rate has increased in last 2 years,2000 suicides in Telangana alone.

Reasons of poor performance of agriculture and rising farmer suicides

Falling farm income - Crop has failed in multiple regions in last 2 years due to bad monsoon and other
regions have very low productivity
Absence of credit for small marginal and tenant farmers and rising expenditures on health and social
ceremonies have put farmers on heavy burden of debt.
Poor price discovery Lack of commodities futures, fall in price of commodities and lack of government
support has led to high volatility in prices, hurting the farmers
Rising cost of agriculture due to high prices of seed and rising consumption of fertilizer and pesticides

Reforms which should be taken

Irrigation - Irrigation is the best insurance against crop failure.


Encourage crop diversification. This will act as natural insurance against failure on one crop
Reform in APMC Act This will remove corruption and middle men and ensure better prices for farmers
produce
Land reforms to increase average land farm size to boost mechanization.
Efficient delivery of crop insurance against bad weather, disaster and post-harvest losses.
Reform in agricultural land lease This will allow tenant farmers to avail insurance and credit.
Provide alternative sources of livelihood to needy farm households.
Ensuring availability of good quality of seed at reasonable price

Way Forward

Government has launched various programmes like Pradhan Mantri Krishi Sinchayi Yojana, Pradhan Mantri
Fasal Bima Yojana, Paramparagat Krishi Yojana, BGREI, RKVY, Soil Health Card Scheme, DD Kisan etc which
needs to be implemented thoroughly for the intended benefits.

9.18. BACTERIUM SPECIES CAPABLE FOR BREAKING DOWN PLASTIC


IDENTIFIED

75

A team of Japanese researchers has identified Bacterium


specie, Ideonella sakaiensis, capable of breaking down
plastic polyethylene terephthalate (PET).
The bacterium uses two enzymes in sequence to break
down the highly biodegradation-resistant polymer PET.
It can almost completely break down a thin film of PET in
six weeks at a temperature of 30 C.
The details of the process in terms of complexity, length,
economic viability and environmental impacts are still a
matter of study.

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9.19. KAKRAPAR NUCLEAR PLANT SHUTDOWN AFTER COOLENT


LEAKAGE

The Kakrapar nuclear plant located in Gujarat was shut down


after leakage of heavy water, which is used as coolant.
The plant consists of two units of pressurised heavy water
reactors of 220 MW each.
The positive thing was that all safety systems kicked in soon
after the leak was detected, the reactor shit down
automatically and there was no radiological consequence.

Heavy water (Deuterium Oxide, D2O) is


used as moderator and coolant in
pressurized heavy water reactors, which
is part of first stage of Indian nuclear
energy program.

Measurement Of The Leakage

The Atomic Energy Regulatory Board (AERB) classified it as a Level-1 mishap on the International Nuclear and
Radiological Event Scale (INES). This is the lowest in the seven-level classification scheme
Level 1-3 are termed as incidents
Level 4-7 are termed as accidents
Level 1 is treated as an anomaly in the plant. By comparison the Nuclear accident in Fukushima, Japan in
2011 was Level-7 category.
INES is developed by International Atomic Energy Authority (IAEA).

ABOUT AERB

Atomic Energy Regulatory Board is a statutory body created by the President under s.27 of Atomic Energy
Act, 1962 to carry out the regulatory and safety functions under the Act.
It derives its regulatory powers from the rules and notifications promulgated under the Atomic Energy Act,
1962 and the Environmental (Protection) Act, 1986.

9.20. WORLD WATER DAY


Background

World water day is observed globally on 22nd March to mark the importance of water to human civilization
and nature.
It is part of Decade for Water (2005-2015) activity by the United Nations.
The theme for 2016 is Water and Jobs

Some Facts

Decreasing availability of fresh water in India; falling from 3000 cubic metres to 1000 in last 50 years. World
average is 6000 cubic metres.
Water levels at 91 major reservoirs nationwide are the lowest in a decadeno more than 29%.
As per a study India uses 37% more fresh water than China and half of its groundwater resources are
contaminated.

Way forward

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Suitable pricing mechanisms need to be developed e.g. Commission for Agricultural Costs and Prices has
rightly mooted ceilings on the use of water and electricity per hectare. Problem is lack of political will as this
is a politically sensitive issue.
Need for a National Water Framework Law; idea was mooted few years ago but was seen by the States as
infringement of constitutional provisions that mention water in the state list.
MNREGA to be used for watershed management.
River basin development approach.

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UPSC MAINS 2011


Write a short note on impact of climate change on water resources in India.
UPSC MAINS 2005
Elucidate the factors contributing to the growing need for water harvesting in India, both rural and urban.

9.21. MICROPLASTICS/MICROBEADS
Why in News?

A petition has been filed in National Green Tribunal (NGT) demanding ban on Microplastics.
The NGT has issued notice to Ministry of Environment and Forest and Ministry for Water Resources and
sought their reply.

What are they?

Microplastics or Microbeads are plastic pieces or fibre which is very small, generally measuring less than
1mm.
They have a variety of use, most notably being personal care products like toothpaste, body creams, clothing
and industrial use.
They have an ability to spread easily and provide silky texture and colours to the product. Thus adding visual
appeal of the cosmetic products.

Issues With Microplastics

They are non-biodegradable and flow through sewers to seas and oceans and add to the huge chunk of
plastic soup in the environment.
They increase water pollution and have a potential to disrupt the aquatic ecosystem.
Once they enter water bodies they accumulate as act as carriers for other pollutants. They carry
carcinogenic chemical compounds in the food chain.
Due to their small size they pass through the waste water treatment filtration system as well.
Their unregulated production and use aggravates the problem.
There is an international campaign demanding ban on Microplastic.

9.22. WOMEN EMPOWERMENT UNIFORM CIVIL CODE


Why in News?

On 16th Oct 2015 Supreme Court decided to register a PIL titled Muslim womens quest for equality on
issue of gender discrimination which women face under Muslim personal law.
Supreme Courts earlier admitted a petition filed in Saira Banu case to declare the practice of triple talaq,
nikah halala (bar against remarriage with divorced husband without an intervening marriage with another
man) and polygamy under Muslim personal laws as illegal, unconstitutional, and violative of the rights to
equality, dignity, life and freedom of religion under the Constitution.

What is Uniform Civil Code

A Uniform Civil Code essentially means a common set of laws governing personal matters for all citizens of
the country, irrespective of religion.
Currently, different laws regulate these aspects for adherents of different religions.

Benefits of Uniform Civil Code

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Equality before law (Art 14) - All the laws related to marriage, inheritance, family, land etc. would be equal
for all Indians.
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It will help in improving the condition of women in patriarchal society of India and will prevent them from
subjugation and mistreatment met under old religious rules
It will help in the reform of society
It will check the human rights and fundamental rights violations by informal bodies like Khap Panchayat and
Madarsas by plugging the loopholes in personal laws.
It will also help in reducing vote bank politics.
It will help in integration of India - A lot of the animosity is caused by preferential treatment by the law of
certain religious communities.

Constitutional Articles which support Uniform Civil Code

Article 44 under Directive Principles of State Policy - The State shall endeavor to secure for the citizens a
uniform civil code throughout the territory of India.
Clause (2) of Article 25 under Fundamental Rights - empowers the State to frame any law to regulate or
restrict secular activity which may be associated with religious practice
Article 14 under FR - The inconsistency in personal laws has been challenged on the touchstone of Article 14,
which ensures the right to equality. Litigants have contended that their right to equality is endangered by
personal laws that put them at a disadvantage.

9.23. INDIGENOUS ROTAVIRUS VACCINE


Why in News?
The Health Ministry recently launched Indias first indigenous rotavirus vaccine (Rotavac) as part of the Universal
Immunisation Programme.
What is it?

Rotavac is an oral vaccine against diarrhoea that kills nearly 80000 children and hospitalizes nearly ten lakh
children under the age of five, every year.
Rotavac has been introduced in Indias Universal Immunisation Programme (UIP) along with Inactivated Polio
Vaccine(IPV); Measles, Rubella (MR) and Adult Japanese Encephalitis(JE).
It is being introduced in four states of Andhra Pradesh, Odisha, Himachal and Haryana initially and will be
introduced in the rest of the country in a phased out manner.

Background

Indigenously developed Rotavirus vaccine was launched in 2015, it has now been introduced into the UIP.
Rota is a highly contagious virus infecting majority of children before their first year of age.
It is a wheel shaped pathogen (hence the name) and spreads through food and drink contaminated with
infected faeces.
Symptoms include fever, nausea, vomiting and watery diarrhoea.
Rotavacs development took 25 years. The vaccine has been developed jointly by Department of
Biotechnology and Bharat Biotech.

Significance

Will reduce infant mortality.


Will reduce hospitalization which in turn will reduce the economic burden on the family and the country.
Will also reduce malnutrition, delayed mental and physical development among children.

Challenges

78

Like most oral vaccines efficacy only 50-60 % efficacy generally lower in India than developed countries.
The reason could be linked to the high rate of enteric diseases of children in India.
Doubts have been expressed on the vaccine having a fatal side effect called intussusceptions or folding of
intestines. But these doubts have been invalidated.
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9.24. E-MAIL INVENTOR


Ray Tomlinson, the inventor of email and the man who picked the@ symbol for addresses, has died.

Raymond Samue Tomlinson implemented the first email program on the ARPANET system, the precursor to
the Internet, in 1971.
He used the @ sign to separate the user name from the name of their machine, a scheme which has been
used in email addresses ever since.

9.25. UN HUMAN RIGHTS COUNCIL


Surya Deva has been appointed by the Geneva-based UNHRC as the Asia-Pacific representative of the UN
Working Group on the issue of human rights and transnational corporations and other business enterprises.
About UNHRC

The United Nations Human Rights Council (UNHRC) is a United Nations System inter-governmental body
whose 47 member states are responsible for promoting and protecting human rights around the world.
Choi Kyong-lim is President of the Human Rights Council.

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