Content Current Affairs February 2017

1.
SOCIAL ISSUES
1.1. Mahila Shakti Kendra Will Be Set-Up At Village Level
In the Union Budget 2017-18, the government has announced a new plan of setting up
Mahila Shakti Kendras or womens empowerment centres at the village level in 14 lakh
Anganwadis under the Integrated Child Development Scheme.
The Mahila Shakti Kendras will provide one stop convergent support services for
empowering rural women with opportunities for skill development, employment, digital
literacy, health and nutrition.
While details about the scheme and its implementation are yet to emerge, those working in
the field of rural womens empowerment raised some preliminary concerns.
Concerns Raised By Activists
Only 500 crore has been allocated to the 14-lakh Anganwadis in the country, which would
amount to a meagre Rs 3,571 for each Mahila Shakti Kendra. It is a very less amount
compared to the tasks assigned to these centres.
Activists are also concerned about the governments proposal to attach the Mahila Shakti
Kendras to Anganwadis in the first place. According to them, it will lead to undermining of
ICDS.
Anganwadi workers are overburdened with duties beyond their primary jobs, such as
working for the census and other government schemes. Often, they are paid less than
minimum wage. Using ICDS to implement a new scheme will affect their efficiency further.
1.2. National Deworming Day

The National Deworming Day (NDD) is observed on February 10 by the Ministry of Health
and Family Welfare.
During NDD single dose of Albendazole is administered to children from under 1 to 19 years
of age group through the platforms of schools and anganwadi centers.
This year, for the first time, the Ministry has decided to give the deworming tablets to the
private schools children also.
The government of India had launched the initiative in 2015, making it one of the largest
single-day public health initiatives in India.
Current Affairs For 2017- Part 10 (February 2016) Page 1

Necessity Of Deworming Programme In India
India carries the highest burden of worm infestation and 64 % of Indian population less than
14 years of age is at risk of Soil Transmitted Helminths (STH) or worms infestation.
Soil Transmitted Helminths (STH) interferes with nutrients uptake in children; can lead to
anaemia, malnourishment, and impaired mental and physical development.
According to a study, the infected children cannot concentrate on their studies and they find
very hard to put up their daily activities.
In this context, National Deworming Day is a commendable step that will go a long way in
ensuring healthy India. On Indias glorious record sheet of eradicating Polio, Guinea worm,
Small pox, Maternal and neonatal tetanus, this may become yet another entry.
However, we must remember that the cycle of parasitic infections cannot be broken with
drugs alone. Proper hand washing and sanitation play an important role in preventing such
diseases.
Soil-Transmitted Helminths (STHs):

According to WHO, STH or parasitic worms are among the most common
infections worldwide.
It lives in human intestines and consume nutrients meant for the human body.
They produce thousands of eggs each day, which are passed in faeces and
spread to others in areas used for public toilet.
1.3. Measles-Rubella Vaccination Campaign Launched

Adding a new vaccine to its flagship Universal Immunization Programme, the Union health
ministry launched measles rubella (MR) vaccination campaign in the country.
The single vaccine will replace the currently given two doses of measles vaccine at 9-12
months and 16-24 months of age.
The new single shot vaccine will be given to all children aged between 9 months and less
than 15 years irrespective of their previous measles or rubella vaccination status or measles
or rubella disease status.
Need For This Campaign

Measles is a contagious respiratory disease that causes a rash and fever, and may cause
death among vulnerable people like malnourished children.
Rubella, also a contagious disease, does not have any major symptoms in children or adults,
but if contracted by women during early pregnancy can cause babies to be born with serious
congenital defects in a condition called Congenital Rubella Syndrome (CRS).
Measles affects an estimated 2.5 million children every year, killing nearly 49 000 of them.
On the other hand, CRS causes birth defects such as irreversible deafness and blindness in
nearly 40 000 children every year.
Universal Immunization Programme
The UIP provide free of cost vaccines to all children across the country to protect
them against 11 life threatening diseases.
It covers 11 diseases - Tuberculosis, Pertussis, Diphtheria, Tetanus, Hepatitis B,
Polio, Pneumonia and Meningitis due to HaemophilusInfluenzae type b (Hib),
Measles, Rubella, Rotavirus diarrhoea and Japanese Encephalitis (JE). (Rubella,
JE and Rotavirus vaccine are given in select states and districts).
1.4. Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA)

The Union Cabinet has approved Pradhan Mantri Gramin Digital Saksharta Abhiyan to
make 6 crore rural households digitally literate by March 2019.
It is expected to be one of the largest digital literacy programmes in the world.
The main objective of the scheme is to promote cashless transactions through mobile
phones.
The project curriculum would place emphasis on Digital Wallets, Mobile Banking, Unified
Payments Interface (UPI), Unstructured Supplementary Service Data (USSD) and Aadhaar
Enabled Payment System (AEPS).
Features
According to the scheme, about 25 lakh candidates will be trained in the Financial Year
2016-17, progressively increasing over the years to 300 lakh candidates in the 2018-19.
To ensure proportionate geographical reach, an average of 200-300 candidates would be
registered from each 250,000 Gram Panchayats.

The implementation of the Scheme would be carried out under the overall supervision of
Ministry of Electronics and IT in active collaboration with States/UTs through their
designated State Implementing Agencies, District e-Governance Society (DeGS), etc.
After getting digital training, each personnel would be able to operate computers and other
digital devices like smart phones and tablets, send and receive emails, browse internet,
access Government Services, search for information, and undertake cashless transactions.
Some Facts
As per the 71st NSSO Survey on Education 2014, only 6% of rural households
have a computer. This highlights that more than 15 crore rural households (94%
of 16.85 crore households) do not have computers and a significant number of
these households are likely to be digitally illiterate.
Earlier, the Government had implemented the Digital Saksharta Abhiyan
(DISHA) or National Digital Literacy Mission (NDLM) to impart IT training to
52.5 lakh persons, including Anganwadi and ASHA workers and authorised ration
dealers in all the States/UTs across the country.
Its aim was to enable citizens to actively and effectively participate in the
democratic and developmental process.
1.5. First-Of-Its-Kind Braille Atlas Launched

The Ministry of Science and Technology has come up with a comprehensive Braille atlas to
help nearly 50 lakh visually-challenged people incountry, especially students.
It is worlds first braille atlas for the visually impaired.
Key Facts
Each atlas will include 20 maps on different themes physical, socio-economic, river
system, crop pattern, natural vegetation, cultural, metropolitan areas, and roads and
railways.
The atlas has been developed in Hindi and English by the National Atlas and Thematic
Mapping Organisation (NATMO).
It is made using indigenously developed silk-screen painting technology.
The maps are embossed with simple lines and point symbols while the area coverage is
easily distinguishable in terms of shapes and textures.
For their innovative effort, NAMTO was awarded the National Award for Science and
Technology Intervention in Empowering the Physically Challenged in January 2017 at the
Indian Science Congress held at Tirupati.
National Atlas and Thematic Mapping Organisation:

A subordinate office under Department of Science & Technology, it is the sole
authority for depicting National framework data in the form of thematic maps and
atlases to cater the actual picture of the development and planning initiatives of
the country among the users.
Major objectives of the organisation are:
o To prepare atlases and thematic maps

o To collaborate with other central and state government organisations to
meet their map requirements.
o To promote the use of geospatial information and technology in

cartography
o To provide training in Remote sensing, Geographical Information System,
Global Positioning System and Digital Cartography.
o To carryout geographic researches.
Silk - Screen Printing:
Silk - Screen Printing, also called as Serigraph, are the oldest forms of print
making.
Silk-Screen Printing is a stenciling method that involves printing ink through
stencils that are supported by a porous fabric mesh stretched across a frame
called a screen.
Japanese artists turned screen printing into a complex art by developing an
intricate process wherein a piece of silk was stretched across a frame to serve as
the carrier of hand cut stencils.
The original material used in screen printing was silk. Hence the name Silkscreen
printing. Today polyester is the fabric of choice.
Silk - Screen Printing is ideally suited for bold and graphic designs.

For blindness data in India, refer 1.1 in Part 9 (Jan) of Current Affairs magazine 2016-17.
1.6. National Productivity Day
The National Productivity Day 2017 was observed in India on 12 Feb 2017. Besides country
also observed National Productivity week from 12-18 Feb.
Theme of 2017 From Waste to Profits-through Reduce, Recycle and Reuse.
The day was organized by National Productivity Council for encouraging all the stakeholders
to implement productivity tools and techniques with contemporary relevant themes.
National Productivity Council (NPC)
NPC is a National level autonomous organization under Department of Industrial

Policy & Promotion, Union Ministry of Commerce & Industry.
It was established as a registered society in 1958 with an aim to promote
productivity culture in India.
It is a tri-partite Non-Profit Organization with equal representation from
government, employers and workersorganization.
It implements the productivity promotion schemes of the GoI and carry out
programmes on behalf of the Tokyo based Aisan Productivity Organization (APO),
an inter-governmental body of which India is a founder member.
1.7. Indias First Floating Elementary School

Indias first floating elementary school, named Loktak Elementary Floating School, was
recently inaugurated at Langolsabi Leikai of Champu Khangpok village in Manipur.
Recently, the Loktak Development Authority had removed more than 700 floating huts as
part of clearing the lake after the introduction of Loktak Lake (Protection) Act 2006.
The school aims to provide education to drop out students, who were rendered homeless
due to the recent evacuation of phumdis.
The school has been opened under the initiative undertaken by All Loktak Lake Fishermans
Union with the support of an NGO People Resources Development Association (PRDA).

The school will not only cater to the need of the children but for the illiterate adults as well.
The school will be accommodating around 25 students and two teachers from the
community.
About Loktak Lake

Loktak Lake is the largest freshwater lake in Northeast India, and is famous for
the phumdis (heterogeneous mass of vegetation, soil, and organic matter at
various stages of decomposition) floating over it.
Resembling miniature islands, these phumdis are found in various forms, floating
on the lake.
The lake is lifeline for many people. It serves as a source of water for hydropower
generation, irrigation and drinking water supply in the region, other than being the
source of income for many fishermen who largely depend on it.
Keibul Lamjao National Park is located at the southwestern part of the lake. It is
the worlds only floating national park and is home to the endangered Manipuri
brow-antlered deer, Sangai.
Sangai is the state animal of Manipur. Its hooves are adapted to walk on
the phumdis.
It was designated as a wetland of international importance under the Ramsar
Convention in 1990. Later it was also listed under the Montreux Record in 1993.
Loktak is a birders paradise. The most commonly sighted birds in the region
include black kite, northern hill myna, East Himalayan pied kingfisher, lesser
skylark, lesser eastern jungle crow, Burmese pied myna, and more.
The lake is now endangered, with innumerable threats like pollution, decline in
diversity of avifauna and thinning of phumdis. All this, in turn, threatens the Sangai
deer.
1.8. India Joins UN Network To Halve Maternal, Newborn Deaths

India is among nine countries that will be part of a global health network focused on
improving the quality of care for new mothers and babies and strengthen national efforts to
end preventable deaths of pregnant women and newborns by 2030.

The nine countries are India, Bangladesh, A Cote dIvoire, Ethiopia, Ghana, Malawi, Nigeria,
Tanzania and Uganda.
The new Network for Improving Quality of Care for Maternal, Newborn and Child
Health, is supported by WHO, UNICEF and other partners.
The efforts include strengthening capacity and motivation of health professional to plan and
manage quality improvement, improving data collection and increasing access to medicines,
supplies, equipment and clean water.
Through a global learning platform, the Network will build a community of health practitioners
from the facility level and develop evidence-based strategies to improve quality of care,
harvest implementation ideas, and collect information and experiences about what is
working.
Need To Build Such Network
Every year, worldwide, 303 000 women die during pregnancy and childbirth, 2.7 million
babies die during the first 28 days of life and 2.6 million babies are stillborn.
Most of these deaths could be prevented with quality care during pregnancy and childbirth.
According to WHO, the period around childbirth is the most critical for saving mothers and
newborns, and preventing stillbirths.
Attention is now shifting from access to care to improving the quality of care so that countries
can achieve the Sustainable Development Goals targets to end preventable maternal,
newborn and child deaths by 2030.
1.9. MoU Signed For Welfare Of Handicraft Artisans Belonging To SCs

An MoU was signed between Development Commissioner (Handicrafts), Ministry of Textiles
and National Scheduled Castes Finance and Development Corporation (NSFDC), a Central
PSU under Ministry of Social Justice and Empowerment, with the objective of working
together to improve the earnings of estimated 12 lakh artisans across the country, belonging
to Scheduled Castes categories.
The MoU provides for continuous and extensive collaboration between Office of DC
(Handicrafts) and NSFDC, aiming at the following:
o Need assessment and gap identification through popularising various schemes by
holding awareness camps.

o Extensive need-based skill upgradation in the identified clusters having dominant
presence of Scheduled Caste artisans, in the field of innovative and market-friendly
designs, and adoption of modern tools and techniques.
o Enhanced participation of Scheduled Caste artisans and their producer groups in

domestic and international marketing events.
o Working capital credit for Scheduled Caste artisans at concessional rates, by
combining the benefits provided by Ministry of Textiles and Ministry of Social Justice
and Empowerment
It has also been agreed in the MoU that the Office of the DC(Handicrafts) through its various
schemes, will support NSFDC in formulation of project reports, undertaking field studies for
identifying felt needs of Scheduled Caste artisans, in addition to extending assistance of six
Regional Offices and 52 Marketing & Service Extension Centres of the Office of the
DC(Handicrafts).
1.10. SAATHIYA Resource Kit and SAATHIYA SALAH Mobile App for Adolescents
One of the key interventions under the Rashtriya Kishor Swasthya Karyakram (RKSK)
programme is introduction of the Peer Educators (Saathiyas) who act as a catalyst for
generating demand for the adolescent health services and imparting age appropriate
knowledge on key adolescent health issues to their peer groups.
In order to equip the Saathiyas in doing so, the Health Ministry has launched the Saathiya
Resource Kit (including Saathiya Salah Mobile App) for adolescents.
Necessity Of Such Kit
India is home to 253 million adolescents, which is largest in the world in terms of absolute
numbers. Adolescents are the critical mass of asset which in future would be the biggest
dividends to the countrys economy; thereby their health and wellness are of utmost priority
When RMNCH (reproductive, maternal, newborn and child health) programs were launched
globally, India was the first country to add the +A i.e. adolescent component to the RMNCH,
making it todays RMNCH+A program.
In this context, Kit is being launched to enable the 1.6 lakhs Peer Educators towards taking
their job forward and answering all the queries in the minds of an adolescent in-spite of the
plethora of media (Magazines, TV, internet etc.) available.

Key Facts
The Resource Kit has been developed by United Nations Population Fund (UNFPA) and
Population Foundation of India (PFI).
This Resource Kit comprises i) Activity Book, ii) Bhranti-Kranti Game iii) Question-Answer
Book and iv) Peer Educator Diary.
In addition to the kit is the mobile app Saathiya Salah (downloadable from Google play-
store) which acts as a ready information source for the adolescents in case they are unable
to interact with the Peer Educators.
The mobile app is also linked to another important piece of cost-effective information
platform of a toll-free Saathiya Helpline (1800-233-1250) which will act as an e-counselor.
While the short films will be played by the Peer Educators at their group meetings, the
activity book and games will bring about discussion and resolve adolescent queries.
Encashing on mobile technology, the shy adolescents or those unable to interact with the
peer educators due to family reasons, can access the information through the free mobile
app as well the toll free helpline.
Rashtriya Kishor Swasthya Karyakram (RKSK)

The Ministry of Health & Family Welfare has launched a health programme for
adolescents, in the age group of 10-19 years in January 2014, which would target
their nutrition, reproductive health and substance abuse, among other issues.
The key principle of this programme is adolescent participation and leadership,
equity and inclusion, gender equity and strategic partnerships with other sectors
and stakeholders.
The programme envisions enabling all adolescents in India to realize their full
potential by making informed and responsible decisions related to their health and
well-being and by accessing the services and support they need to do so.
It introduces community-based interventions through peer educators (Saathiyas),
and is underpinned by collaborations with other ministries and state governments.
Objectives
1. Improve nutrition
o Reduce the prevalence of malnutrition among adolescent girls and boys
o Reduce the prevalence of iron-deficiency anaemia (IDA) among

adolescent girls and boys
2. Improve sexual and reproductive health
o Improve knowledge, attitudes and behaviour, in relation to SRH
o Reduce teenage pregnancies

o Improve birth preparedness, complication readiness and provide early
parenting support for adolescent parents
3. Enhance mental health

4. Prevent injuries and violence: Promote favourable attitudes for preventing injuries
and violence (including GBV) among adolescents.
5. Prevent substance misuse: Increase adolescents awareness of the adverse

effects and consequences of substance misuse.
6. Address NCDs: Promote behaviour change in adolescents to prevent NCDs such
as hypertension, stroke, cardio-vascular diseases and diabetes.
Strategies
1. Strategies/Interventions to achieve objectives can be broadly grouped as:
o Community based interventions

o Peer Education (PE)
o Quarterly Adolescent Health Day (AHD)
o Weekly Iron and Folic Acid Supplementation Programme (WIFS)
Menstrual Hygiene Scheme (MHS)
2. Facility based interventions: Strengthening of Adolescent Friendly Health Clinics
(AFHC)
3. Convergence
o Within Health & Family Welfare - FP, MH (incl VHND), RBSK, NACP,
National Tobacco Control Programme, National Mental Health
Programme, NCDs and IEC
o With other departments/schemes - WCD (ICDS, KSY, BSY, SABLA), HRD
(AEP, MDM), Youth Affairs and Sports (Adolescent Empowerment
Scheme, National Service Scheme, NYKS, NPYAD)

4. Social and Behaviour Change Communication with focus on Inter Personal
Communication
1.11. International Mother Language Day (IMLD)

IMLD is a worldwide annual observance, held on 21 Feb to promote awareness of linguistic
and cultural diversity and multilingualism.
It also signifies importance of mother language as the greatest weapon to express ones
feeling. Mother Language of one country is the sign of independence of that country.
2017 Theme: Towards Sustainable Futures through Multilingual Education

First announced by UNESCO on 17 November 1999, it was formally recognized by
the United Nations General Assembly in its resolution establishing 2008 as the International
Year of Languages.
Some Facts
Indian Constitution through Article 350A in Part XVII deals with instruction in
mother language. According to it, State and local authorities will provide adequate
facilities for instruction in the mother tongue at the primary stage of education to
children in linguistic minority group.
As a part of Digital India initiative, digitized content will be made available in 22
scheduled languages which will be extended to other 234 recognized languages of
India.
The work of digitization has begun in June 2016 through "Bharatavani Project" at
CIIL, Mysore and by the February 2017, content in 60 Indian languages have been
made available for free.
1.12. Bet Dwarka Darshan Circuit In Gujarat To Be Developed Under HRIDAY
Ministry of Urban Development approved development of 6 km long Bet Dwarka Darshan

Circuit in Gujarat under the Central Scheme Heritage City Development and Augmentation
Yojana (HRIDAY).
The circuit will connect famous Dwarkadish Haveli and Hanuman Dandi (only temple
housing Hanumanji and his son Makardhwaj) in Dwarka district of Gujarat.

There are two important water bodies along the circuit viz., Shankhudhar Lake and
RanchodTalav. Under this project development works will be undertaken along the circuit.
Heritage City Development and Augmentation Yojana (HRIDAY) :
The Ministry of Urban Development, Government of India, launched the National

Heritage City Development and Augmentation Yojana (HRIDAY) scheme inJanuary,
2015, with a focus on holistic development of heritage cities.
The scheme aims to preserve and revitalise soul of the heritage city to reflect the citys
unique character by encouraging aesthetically appealing, accessible, informative &
secured environment.
With a duration of 4 years (Completing in November, 2018), the Scheme is being

implemented in 12 identified Cities namely, Ajmer, Amaravati, Amritsar, Badami, Dwarka,
Gaya, Kanchipuram, Mathura, Puri, Varanasi, Velankanni and Warangal.
The Scheme supports development of core heritage infrastructure projects which shall
include revitalization of urban infrastructure for areas around heritage assets identified /
approved by the Ministry of Culture, Government of India and State Governments.
These initiatives shall include development of water supply, sanitation, drainage, waste
management, approach roads, footpaths, street lights, tourist conveniences, electricity
wiring, landscaping and such citizen services.

2. POLITY AND GOVERNANCE
2.1. Andhras Draft Legislation That Will Enable Collection Of Genetic Fingerprints To
Solve Crime, Track Offenders
This legislation will allow the State police and investigating agencies to collect and store
DNA samples in a centralised database.
Focus on sex crimes: A centralised DNA database on convicts would help track repeat
offenders in sexual assault and rape.
Centres Initiatives:
o A similar bill, prepared by the Centre in 2012, was put on hold because legislation ran
into severe opposition from activists on the ground that it violated privacy.
o Human DNA Profiling Bill, 2015, was prepared by the Department of Biotechnology
and the Hyderabad-based Centre for DNA-Fingerprinting and Diagnostics but is yet
to be cleared by the Union Cabinet.
Last year, the AP govt. launched a DNA collection-kit developed by IntegenX, Inc, a US
company that enables DNA to be extracted from saliva and blood samples within a matter of
2 hours.
Apprehensions
1. The bill will give over-arching powers to the govt. to use the database for purposes beyond
solving crimes which would infringe upon the privacy of the citizen.
2. Also, the DNA sample contains crucial biological information that can reveal their ethnicity
or how susceptible they are to disease. The risk of data abuse is therefore potentially high.
3. As genetic databases become increasingly common in other countries (over 60 countries are
now operating one), the sharing of data between international police forces is likely to
increase. This may increase the vulnerability of databases to abuse and hacking.
4. Critics argue that State officials were relying on extremely expensive technology and a
database wouldnt be useful without supportive Central legislation.
5. Also we need to first train people in collecting DNA from crime scenes and storing them
properly. A database can come later.
Conclusion

Before putting it in practice, the state govt. must consult the centre because the state law could
clash with the National law if enacted in the near future. Also, the two most contentious issues
need to be resolved to put all apprehensions to rest - how the database is put to use and how
this is decided.
DNA Database
Also known as DNA databank, it is a database of DNA profiles.
It can be used in the analysis of genetic diseases, genetic fingerprinting for

criminology, or genetic genealogy.
Presently, India doesnt have a National DNA database of its citizens.
DNA Profiling
Also called DNA fingerprinting, DNA testing, or DNA typing, is a forensic technique
used to identify individuals by characteristics of their DNA.
A DNA profile is a small set of DNA variations that is very likely to be different in all
unrelated individuals, thereby being as unique to individuals as are fingerprints.
DNA profiling uses repetitive sequences that are highly variable, called variable
number tandem repeats (VNTRs), in particular short tandem repeats (STRs),
also known as microsatellites, and minisatellites. VNTR loci are very similar
between closely related individuals, but are so variable that unrelated individuals
are extremely unlikely to have the same VNTRs.
It is used in parentage testing and criminal investigation, to identify a person or to
place a person at a crime scene, techniques which are now employed globally in
forensic science to facilitate police detective work and help clarify paternity and
immigration disputes.
It must be noted that although 99.9% of human DNA sequences are the same in
every person, enough of the DNA is different that it is possible to distinguish one
individual from another, unless they are identical twins.
2.2. Union Budget Announced Reforms To Curb Political Funding In Elections

Finance Minister made 2 important announcements with respect to funding of political parties:
1. The limit on cash donations has been reduced from Rs. 20,000 to Rs. 2,000.

2. There is a proposal to issue electoral bonds.
Limit On Cash Donations
Presently, the political parties are not supposed to take donation above 20,000 in cash. They
also have to maintain a record containing details of donor for every donation above Rs
20,000 in cheque.
This limit enabled a loophole of dividing the funds into smaller denominations and not
maintaining any record for the same.
Therefore, with the recommendation of the Election Commission, the threshold limit of cash
donations has been put to Rs 2,000 in the recent budget. Donations can still be made
without any limit by account payee's cheque or bank draft, or e-clearing system through a
bank.
Advantage: The intention is to discourage cash transaction and have more transparency by
providing an additional alternative to digital payments.
Criticism:
o Donors have expressed reluctance in donating by cheque or other transparent
methods as it would disclose their identity and entail adverse consequences.
o Everyone was foxed into believing that the limit for anonymous donations, contributions
that are exempt from reporting, has been reduced from the existing Rs 20,000 to Rs
2,000. The Finance Bill reveals something different. The existing limit of Rs 20,000 on
anonymous donation as per Section 23 of the Representation of the People Act (RPA)
has been left untouched.
o The Minister has merely proposed a new, additional, clause that limits cash donation
from one source to Rs 2,000 in one year. Notice that there was and is no requirement
to disclose a contribution by cheque or digital transfer up to Rs 20,000.
o There was and is no limit to how much a party can receive from anonymous donations.
o More importantly, there was and is no limit to how much overall a party can receive in
cash from all sources put together.
o So far, the accountant who had to covert, say, Rs 100 crore had to make sure than the
entire amount was broken down into entries of Rs 20,000 or below. Now they will
absorb the same amount by breaking it down into entries of Rs 2,000 or below. All that

the proposed law would ensure is more book entries and perhaps a higher fee for the
accountant. Otherwise, it would be business as usual.
Therefore, to resolve such concerns, FM has proposed introduction of electoral bonds.
Electoral Bonds
The detailed rules are yet to be framed, but the basic outline of the scheme is clear.
Electoral bonds are likely to be a bearer bonds issued by banks to customers. It can be
purchased by digital or cheque payment.
Bearer bond is a bond or debt security issued by a business entity such as a corporation, or
a government. As a bearer instrument, it differs from the more common types of investment
securities in that it is unregistered no records are kept of the owner, or the transactions
involving ownership. Whoever physically holds the paper on which the bond is issued owns
the instrument. This is useful for investors who wish to retain anonymity.
These would be redeemable only in the designated account of a registered political party.
These bonds will be redeemable within a prescribed time from the issuance of the bond.
Anyone who wants to donate to a political party would be able to purchase bonds from
authorised banks. This purchase will have to be in white money against cheque and digital
payments only. Once purchased, these bonds will be like bearer bonds and will not contain
the name of the eventual beneficiary.
So, the source would be legal and at the recipient level, there is accountability because s/he
has to declare it in his tax return. The tax return will not show the identity of the donor and it
will provide anonymity to the donor.
Advantage: This will make the donations anonymous for the political party, which will not
know the source of money. Each party will specify only one bank account. The parties will be
required to file returns of donations with a consolidated amount, instead of specifying each
donation received within a specified time period under the Income-tax Act.
Disadvantage:
o The donors bank would know about who bought how much of Electoral Bonds, but
not the name of the party which received it. The partys bank would know the amount
deposited through Bonds, but not the identity of the donor.
o The Income Tax authorities and the Election Commission would not know anything:
reporting of donor, beneficiary, or even the amount of contribution has been

exempted by amending the Income Tax Act Section 13A (b) and the RPA, Section
29C.
o The net effect of the Bonds will be that no one except the fund giver and the fund
receiver would know about this exchange done in white money with full tax
exemption.
o Anonymity might give rise to the menace of black money funded elections.
RBI Act amendment required: The issuance of electoral bonds will require modification in
the Reserve Bank of India (RBI) Act.
Conclusion
So the combined effect of the amendments is that political parties will be under no obligation
to disclose any donation or contribution that they receive at all, unless it is made
electronically or through cheques.
These would allow political parties to keep confidential any funding through electoral bonds.
In essence, oversight and scrutiny of the RBI, IT department and the EC on political finance
could be reduced substantially
Reducing the political anonymous donations limit to Rs 2,000 from Rs 20,000 per individual
may not be fool-proof but is certainly a step forward. Along with this, the other big move by
Finance Minister to bring in electoral bonds is an out of box idea.
While there is a popular pressure for full transparency and disclosure of names of both the
donors and the receivers of the political funds, there is also a merit in the government
contention about protecting the identity of the donors as their identification could lead to
bigger problems.
Section 29C in The Representation of the People Act, 1951

Declaration of donation received by the political parties: The treasurer of a political
party or any other person authorised by the political party in this behalf shall, in each
financial year, prepare a report in respect of the following, namely:
a) the contribution in excess of Rs. 20, 000 received by such political party from any
person in that financial year;
b) the contribution in excess of Rs. 20, 000 received by such political party from
companies other than Government companies in that financial year.

2.3. Naga Tribal Groups Protest Against 33% Women Reservation In Municipal Body
Elections
Why In News
Violence broke out in Nagaland after the State government decided to accord 33%
reservation to women in the municipal body elections scheduled for 1 February.
For the constitutional rights of the women, Naga Mothers Association (NMA) had moved to
the Supreme Court in 2012 for implementation of 33 % representation for women in the
urban local bodies as it is implemented in most of the other states.
The SC ruled in the favour of the women in 2016, following which the state cabinet gave a
go-ahead to conduct the polls which had not taken place in Nagaland for well past a decade
and a half.
However, going by the provisions of Article 371A, any law passed by Parliament or the
Supreme Court directives are not binding to the state. That is where the root of conflict lies.
Various tribal bodies, including the Naga Hoho have called for a boycott to oppose 33 per
cent reservation for women arguing that reservation (for women) would infringe on Naga
customary laws and tradition as protected under Article 371(A) of the Constitution of India.
However, the Chief Minister TR Zeliang supported the women activists and explained that 33
per cent reservation for women doesn't infringe upon Naga customary laws because towns
and municipalities are new concepts and have nothing to do with tradition and customary
practices of the Nagas.
Internet and phone lines are down and prohibitory orders under Section 144 of the CrPC
(Code of Criminal Procedure) have been issued in Dimapur and Kohima.
Reasons For Protests
Traditional angle: The tribals think that it goes against the societal design for women. For
them, it is a matter of not disturbing the traditional set-up of society.
Article 371 (A): Granting 33% reservation for women would infringe on Naga customary
laws and tradition as protected under Article 371(A) of the Constitution of India.
Current Status
The CM of Nagaland T.R. Zeliang stepped down from the post of chief minister and Dr.
Shrhozelie has been chosen as a consensus leader.
The governor of Nagaland P.B. Acharya accepted Zeliangs resignation.

The Nagaland government had fulfilled the demand of Nagaland Tribes Action Committee
(NTAC) Kohima, declaring the entire process of ULB elections with 33% reservation for
women as null and void.
NTACs second demand of suspending the personnel involved in 31 January police firing on
the protesters leading to the killing of two youths in Dimapur has been partially fulfilled as
they have been transferred.
Shri Dr. Shurhozelie Liezietsu is the current chief minister of Nagaland following the
resignation of T.R. Zeliang. He belongs to Angamitribe which is one of the major tribes in
Nagaland.
Conclusion
Ever since the state of Nagaland came into existence in 1963, not a single woman MLA has
been elected except one. The established prejudices against women which led to their
discrimination have to be done away with.
The womens representative body went to the court which gave an order for equality. Now
this cannot be challenged so easily by any State Government. This is an issue at the state
level.
A negotiation is not a one stop business but is a continuous process. The
Government and people of different groups and civil society have to talk together. The
failure of negotiation is the key issue in Nagaland. Hence the deliberations must be
initiated between the representatives of all the parties and the women should be provided
their legal, constitutional and moral right.
There are some groups which are not interested in final resolution of problems which are
present in the state. These groups have to be identified and dealt with. These divisive forces
must be tackled expeditiously.
Women reservation is an essential ingredient of gender equity and must be promoted.
Such violence in the name of customary laws promotes backward looking practices in
various traditions and revocation of such great measure (reservation) means bowing down to
patriarchy.
Article 371(A)
It was inserted in the Constitution when Nagaland State was created in 1963.
It provides special provision saying Notwithstanding anything in this

Constitution, (a) no Act of Parliament in respect of (i) religious or social practices

of the Nagas, (ii) Naga customary law and procedure, (iii) administration of civil
and criminal justice involving decisions according to Naga customary law, (iv)
ownership and transfer of land and its resources, shall apply to the State of
Nagaland unless the Legislative Assembly of Nagaland by a resolution so
decides.
2.4. SC Issued Contempt Notice Against Sitting Calcutta HC Judge C.S. Karnan
This is the first time that the highest court of the country has issued a contempt notice
against a serving judge of another court.
The contempt notice has been issued for impeding justice administration and bringing
discredit to the judicial institution of the country by writing scurrilous letters about sitting
and retired judges.
The court has stripped justice Karnan of all administrative and judicial work until he makes
an appearance in court. He has also been directed to return all judicial and administrative
files in his possession to the Registrar General of the high court.
Attorney General Mukul Rohatgi said that Supreme Court as an apex judiciary is empowered
under Article 129 (power to punish for contempt of itself) read with its extraordinary
powers under Article 142 (2) to punish a member of the High Court and subordinate
judiciary for contempt.
Justice Karnan defied the contempt notice on the grounds that it affects his fundamental
rights of equality and dignity and a violation of the principles of natural justice. The suo motu
contempt order against a dalit judge and restraining his judicial and administrative
assignment is unethical and goes against the SC/ST Atrocities Act.
Background
2011: He accused the fellow judges of discriminating him because he was Dalit.
2015: He accused then Chief Justice of the Madras high court SK Kaul of harassing him
because he was a Dalit and belittling him by giving him insignificant and dummy portfolios
while his juniors were given high profile matters.

2016: He accused Chief Justice of Madras HC Kaul of corruption. He attempted to file a case
against Chief Justice JS Khehar under the SC/ST Act and requested that the contempt case
against him be heard after Khehar retired.
2017: He once against raised the banner of revolt by writing letters to the PM.
Conclusion
Court must take action and set an example as this brings disrepute to the administration of the
process of justice but it has to be very careful in the way the case is handled and would require
assistance from members of the bar in evaluating the course ahead in this peculiar situation.
2.5. SC Confirms Cancellations Of MBBS Admissions In Vyapam Scam

Terming their conduct an act of deceit, the Supreme Court confirmed the cancellation of the
admission of 634 students to the MBBS course made through Vyapam test in Madhya
Pradesh between 2008 and 2012.
The action of the students was unacceptable behaviour and did not warrant any
interference under Article 142 of the Constitution, says the court.
Vyapam Scam is an admission & recruitment scam involving politicians, senior officials, and
businessmen in the Indian state of Madhya Pradesh.
Madhya Pradesh Professional Examination Board (MPPEB), popularly known by its Hindi
acronym "Vyapam" (Vyavsayik Pariksha Mandal), is a self-financed and autonomous body
incorporated by the State government responsible for conducting several entrance tests in
the state for recruitment in government jobs and admissions in educational institutes of the
state.
The scam involved a collusion of undeserving candidates, who bribed politicians and
MPPEB officials through middlemen, to get high ranks in these entrance tests.
Article 142: The Court Has Power To Make Any Order Necessary For Doing
Complete Justice In Any Case.
(1) 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, and any decree so passed or orders so made shall be
enforceable throughout the territory of India in such manner as may be prescribed

by or under any law made by Parliament and, until provision in that behalf is so
made, in such manner as the President may by order prescribe
(2) Subject to the provisions of any law made in this behalf by Parliament, the
Supreme Court shall, as respects the whole of the territory of India, have all and
every power to make any order for the purpose of securing the attendance of any
person, the discovery or production of any documents, or the investigation or
punishment of any contempt of itself.
2.6. A Constitution Bench To Hear Appeals In Delhi Govt.-LG Issue

The SC said it would consider setting up a Constitution Bench soon for hearing appeals filed
by the Delhi government against the High Court judgment holding Lieutenant Governor as
the administrative head of Delhi.
Recently, a two-judge Bench had referred to a Constitution Bench a series of appeals filed
by the Delhi government for laying down the law on whether the Lieutenant Governor can
unilaterally administer the National Capital without being bound by the aid and advice of the
elected government.
The batch of seven special leave petitions filed by the Delhi government has challenged the
Delhi High Courts August 4 2016 judgment which upheld the Lieutenant Governors power
not only over the police, land and public order but also in services.
For details of the HC judgment and status of Delhi, refer Section 3.4 in Part 4 ( August
2016) Of CA Magazine.
2.7. Constitution Bench To Decide Petitions On Triple Talaq

The SC said that a Constitution Bench may hear the question whether triple talaq,
niqahhalala and polygamy violates the fundamental rights of Muslim women.
It has to examine if these personal law practices are the "fundamental traits" of the minority
religion.
The Centre has also asked the SC to determine:
o Whether the triple talaq, nikahhalala and polygamy are protected under the freedom
of religion under Article 25,

o Whether this Article is subject to fundamental rights, especially the right to life
(Article 21) and freedom of speech and expression (Article 19),
o Whether personal law is law under Article 13 of the Indian Constitution.
In Bombay vs. Narasu Appa Mali 1951 case, the Bombay High Court had held that
personal law is not a law under Article 13. It had observed that reformation of personal laws
is best left to the legislature as "chosen representatives of the people" and not the judiciary.
It said the phrase customs and usages in Article 13 does not include personal laws of
various religions. It held that Article 44 (Uniform Civil Code) acquiesced the existence of
varied personal laws. This 1951 judgment was never challenged in the Supreme Court.
Recently in Dec 2016, the Allahabad High Court had observed in a case that triple talaq
was cruel and judicial conscience was disturbed.
For more judgments and debates on triple talaq, refer Section 2.3 in Part 5 (September
2016) Of CA Magazine.
Conclusion
A judicial declaration from a Constitution Bench under Article 13 that personal laws are liable
to comply with the fundamental rights guaranteed under the Constitution would bring
religious law, even uncodified practices, under judicial review.
If the Supreme Court agrees that personal laws are included in the definition of laws under
Article 13, the door will be opened wide for an aggrieved person to challenge in court a
particular personal law of a religion as violative of the fundamental rights.
This would provide greater sense of relief to the aggrieved victims that are inflicted with
various physical and psychological traumas in the name of religion and bring India closer to
the implementation of Uniform Civil Code as mandated by the DPSP under Article 44.
Article 13 (laws inconsistent with or in derogation of the fundamental rights)

It mandates that any law in force in India before or after the commencement of the
Constitution should not violate the fundamental rights of citizens enshrined in Part III
of the Constitution.
Article 44 (Uniform Civil Code)
The State shall endeavour to secure for the citizens a uniform civil code throughout
the territory of India.
2.8. SC Ordered 3 Internet Giants To Set Up Mechanism To Delete Sex Determination

Ads
The SC had ordered 3 Internet giants Google, Microsoft and Yahoo to immediately set
up their own in-house expert bodies to keep tabs on and delete online pre-natal sex
determination advertisements.
It said that the intent of the order was to make these search engines responsive to Indian
law. Section 22 of the Pre-conception and Pre-natal Diagnostic Techniques
(Prohibition of Sex Selection) Act of 2003 prohibits advertisements relating to pre-natal
determination of sex and imposes punishment. However, ads continue to appear online,
rendering the law toothless.
This is a step in the right direction by the Indian judiciary. It will complement the steps taken
by the Executive in correcting the sex ratio in India and bring India at par with other nations
in terms of gender parity.
The court has continuously expressed its concern with regard to reduction of sex ratio in this
country since more than a decade now. It has gone to the extent of stating that when there
is decrease in sex ratio, it is a disaster signal to the mankind.
Menace Of Female Foeticide In India
This process began in the early 1990s when ultrasound techniques gained widespread use
in India. There was a tendency for families to continuously produce children until a male child
was born.
Foetal sex determination and sex selective abortion by medical professionals has today
grown into a Rs. 1,000 crore industry.
Social discrimination against women and a preference for sons have promoted female
foeticide in various forms skewing the sex ratio of the country towards men.
According to the decennial Indian census, the sex ratio in the 0-6 age group in India went
from 104.0 males per 100 females in 1981, to 105.8 in 1991, to 107.8 in 2001, to 109.4 in
2011. The ratio is significantly higher in certain states such as Punjab and Haryana (126.1
and 122.0, as of 2001).
PCPNDT(Prohibition of Sex Selection) Act of 2003

It is an Act of the Parliament enacted to stop female foeticides and arrest the
declining sex ratio in India. The act banned prenatal sex determination.
The main purpose of enacting the act is to ban the use of sex selection
techniques after conception and prevent the misuse of prenatal diagnostic
technique for sex selective abortion.
2.9. SC Directs Centre To Fill Vacant Posts In NHRC By April 30

The SC passed this order after hearing a Public Interest Litigation (PIL) filed by Supreme Court
lawyer and social activist RadhakantaTripathy.
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 of 28 September 1993.
It was given a statutory basis by the Protection of Human Rights Act, 1993.
NHRC is responsible for 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".
Composition
Chairman (retd. CJI) + 4 members (Serving or retired SC judge, Serving or retired HC
judge, 2 persons having knowledge or practical experience with respect to human
rights.) + 4 ex-officio members (The chairman of the: National Commission for
Minorities, National Commission for SCs, National Commission for STs, National
Commission for Women)
Appointment
The chairman and members are appointed by the President on the recommendations
of a 6-member committee consisting of Prime Minister (head), Leader of Opposition
in Lok Sabha, the Deputy Chairman of the Rajya Sabha, leaders of Opposition in
both the houses of Parliament and the Home Minister.
2.10. Supreme Court Introduces Middle Income Group Scheme

The Supreme Court has introduced a self-supporting scheme known as Middle Income
Group Scheme (MIGS) for providing legal services to the middle and relatively lower income
groups.
Under this scheme, middle class people who cannot afford the expensive litigation in the
apex can avail the services of the society for a nominal amount.
About The Scheme
The Middle Income Group Scheme is meant to provide legal services to litigants in the
Supreme Court whose gross income does not exceed Rs. 60,000 per month or Rs. 7.5 lakh
per annum.
A society will be created with Chief Justice of India (CJI) as Patron-in-Chief. Attorney
General will be its ex-officio Vice President, Solicitor General its Honorary Secretary and
other senior advocates as its members.
A sum of Rs 500 shall be payable to the Supreme Court Middle Income Group (MIG) Legal
Aid Society as service charges.
A case will be registered under the MIG Legal Aid Scheme and forwarded to Advocate-on-
Record/ Senior Counsel/Arguing Counsel on the panel for their opinion.
If Advocate-on-Record is satisfied that case is fit, then the society will consider that applicant
is entitled to legal aid.
The view expressed by Advocate-on Record will be final in determining eligibility of the
applicant for obtaining the benefit under the scheme.
While the scheme permits the applicants to provide their preference of Advocates, the final
right to assign rests with the Society.
If an advocate, appointed under the scheme, is found negligent in pursuing the case
entrusted to him, he will be required to return the brief together with the fee received by him
from the applicant.

3. ECONOMY AND INFRASTRUCTURE
3.1. Globalisation And India - Emerging Challenges From The West Protectionism
Why In Focus
Critical events in recent times like Brexit, Trump victory and a growing importance of anti-
trade and anti-immigration policies in Germany, the Netherlands and France has posed new
challenge called protectionism for Indian economy.
Protectionism is the theory or practice of shielding a country's domestic industries from
foreign competition by taxing imports. In this context there is looming BoP challenge in India
because of several reasons.
The developed countries anti globalisation stance is the result of low growth, low
employment, and growing inequality. In contrast, developing countries have benefitted
greatly from globalisation. The success of China and the Southeast Asian countries
testifies to that. These countries adopted trade reforms to focus on linking its
manufacturing and services to global value chains to boost exports, growth and
employment.
Indias BoP challenge

Anti Globalisation, anti-trade and anti-immigration drive in west may result in reduced market
access for exports of goods and services.
Indias exports has been stagnant for several years.
A likely rise in US interest rate may negatively impact the flow of remittances and foreign
institutional investments.
Facing the headwinds of protectionism. Nationalist policies in advanced countries may limit
the flow of FDI and dampen our Make in India initiative.
Indian IT giants are already affected by the impending H-1B visa reforms.
Trade barriers related to the emerging issues in data privacy and data restrictions are now
the areas of maximum concern for the future growth of offshore professional and technical
services models(such as BPO or KPO).
Continuation of rising oil prices as a result of tensions in West Asia may increase our import
bill.

Trade Reforms To Counter BoP Challenge
The need is to focus on trade reforms to revive export growth. Reviving the lost export
momentum is the only way out of this impending BoP crisis.
This is vital to sustain high growth and job creation. India with its low share of world exports,
is in strong position to boost exports even in this depressing global scenario.
Tariffs are no longer the primary barriers to trade. The critical challenges relate to non-tariff
barriers, both at the border and behind the border, and issues related to trade facilitation,
that is, the cost and efficiency logistics due to both poor regulation and/or poor infrastructure.
o Reducing trade transaction costs
o Streamlining regulations
o Promoting trade and investment in professional services
o Strategic regional integration to link its manufacturing to the vast and rapidly
expanding regional and global supply chains
o Logistic reforms: transport infrastructure(road, rail, ports and airports)
The critical elements of policy required to integrate India into global supply chain are as
follows:
a) Relatively low tariffs(to allow easy importation of intermediates) and a simplified tariff
structure
b) Regulatory environment that is attractive to FDI in manufacturing
c) A taxation system that ensures that no domestic taxes are exported(that is, zero rating of
exports)
d) Introduction of a first rate goods and services tax(GST)
e) An environment of low transaction costs of operating across borders
f) Strong logistical linkages, especially with the regional economies
The current institutional arrangement that take strategic decisions in international economic
relation are the Ministry of Commerce and Industry(MOCI) and the Ministry of External
Affairs(MEA). Both lacks the necessary depth. These ministries are being run by bureaucrats

with no/little experience in trade policy. The MOCI is ill prepared to deal with the complex trade
negotiations we are likely to face, with the US giving up free trade and the TPP, and China
positioning herself as the champion of free trade.
Conclusion
The supply chain efficiency is critical to manufacturing competitiveness. Rapid changes
fuelled both by technology and shifting consumer preferences and behaviour(driven by the
emergence of the global middle-class) is going to bring some changes in how manufacturing
is organised and managed.
Some of these trends are already visible in the growth of greater customisation of goods and
use of e-commerce platforms. Thus it is crucial for logistics, trade and business facilitation to
integrate with the global value chain.
Given the cross-cutting nature of the 21st century trade agenda. India need an apex entity
like the USTR(United States Trade Representative) that has a clear mandate from the
highest authority to consult with stakeholders and manage the process of developing a new
trade strategy.
Globalisation has been one of the biggest forces of reducing poverty in the world. Hence,
India has to take up institutional and economic reforms to increase its share in world trade.
3.2. Obsolete Patent Regime In The Age Of Artificial Intelligence

Background
The U.S. Chamber of Commerce refuses to bolster up Indian patent numbers and ranked
India close to the bottom on their IP index, 43rd out of a total of 45 countries. India alleges
that the methodologies are marred with many problems
A seductive logic is that if we have to truly Make in India, we must ramp up our patent
numbers!!
However, Indias technological proficiency in pharmaceuticals came through the active
breaking of multinational intellectual property. But that is an old script and we need to move
on.
The AI Challenge To Patent Regime
The test of cognitive advancement that is central to patent law rests on the notion of the
person skilled in that particular art/technology.

o Now that were in the age of artificial intelligence where machines can think as well
as humans (well almost), and are inventing by the dozen (since it's now possible to
code them with creativity, at least of the combinational kind), the skilled person could
soon be this artificially intelligent machine.
o Some of the finest minds in the technology space such as Elon Musk are now giving
up on patents.
Given this scenario, there is no point hitching our bandwagon to what will soon be an
obsolete patent game.
3.3. Drug Pricing: Capping Of Coronary Stents Price By NPPA

Why In News
A coronary stent is a tube-shaped device placed in the coronary arteries that supply blood to
the heart, to keep the arteries open in the treatment of coronary heart disease.
In July 2016, the Ministry of Health and Family Welfare included coronary stents in the
National List Of Essential Medicine (NLEM) 2015.
The NPPA notification on 13th Feb 2017 capped the price of coronary stents at a level up to
40 per cent lower than their existing market rates. Imported stents, too, comes under its
ambit.
Reason Behind The Price Control
1. The core committee that examined the pros and cons of bringing coronary stents under price
control in its report to the government last year cited the high incidence of coronary artery
disease (CAD) in India describing it as a major public health problem.
2. The burden of diabetes and hypertension is continuously rising in our country.
3. Exploitative System Of Pricing
o NPPA report highlighted vulgar profiteering in stent market mainly by hospitals.

Distributors and hospitals were earning average maximum margin of 196% and
654% respectively.
o The existing trade channel (market system) had failed to eliminate the chances of
unethical practices(due to asymmetry of information) in the context of a
traumatised patient suffering heart ailment and reaching a hospital.

About National Pharmaceutical Pricing Authority(NPPA)
NPPA is an organization of the Government of India (Department of
Pharmaceuticals, Ministry of Chemicals and Fertilizers) which was established to
fix/revise the prices of controlled bulk drugs and formulations and to enforce
prices and availability of the medicines in the country, under the Drugs (Prices
Control) Order, 1995.
It also monitors the prices of decontrolled drugs in order to keep them at

reasonable levels.
It has power under DPCO 2013 to control the prices of drugs that are not under
the NLEM (i.e, non-essential drugs) under extraordinary circumstances in public
interest.
The National List of Essential Medicines of India is a list of medicines, prepared
by the Ministry of Health and Family Welfare, which are considered essential in
India.
Para 31 of the DPCO 2013 gives the Centre the power to review decisions of the
NPPA.
Criticism Of The Price Control By The Industry

1. It will deprive patients of latest technological advancements.
2. Since this order is being enforced from immediate effect without provision of a transitory
period, Indian stents industry is going to face enormous operational challenges.
3. Some industry observers are sceptical about the impact of the move as there is no cap on
hospital charges or packages. Hospitals can inflate the bills to compensate for stents
margin loss.
4. Indian manufacturers, multinational manufacturers and importers emphasised the need for a
higher price cap and mentioned that huge margins are paid to distributors and hospitals
(including doctors) in the existing business model. They need adequate profit margin to be
in this business.
5. FICCI is demanding demarcation of roles between regulator and government as

unpredictability in drug pricing control regime raises issues of transparency in the functioning
of NPPA.
Conclusion
It is welcome measure from a short term perspective. Government has to invest more in
public health care as resorting to more price controls is not a long term solution.
Awareness schemes among citizen (about generic drugs and NLEM) so that the asymmetry
of information get reduced in health sector between the service provider and the consumer.
Since hospitals are neither doing any value addition in the supply chain nor having any
financial stake in the trade of medical supplies, hospitals need to be dissociated from the
trade channel for the fixation of the prices.
The price regulator should develop a standard operating procedures (SOP) so that it can
discharge its functions in more transparent and predictable manner. Because an arbitrary
price control is not likely to yield any sustainable benefits to the consumers.
3.4. WTO Related Issues And Indias Position

The Director General of World Trade Organisation Mr. Roberto Azevedo visited India and held
discussions with government representatives, Confederation of India Industries (CII) officials and
media personnel.
Highlights Of The Visit
During the meeting the WTO DG has raised concerns about the uncertainty in the global
economy with trade growth for FY16 to be around 1.7 per cent, the slowest pace of trade
growth since the financial crisis.
He clarified the false notion that the global trade disrupts the local markets and leads to
unemployment and explained that the impact of the new technology and innovation is
more responsible for unemployment rather than trade. He highlighted the studies which
show that 8/10 jobs are losing due to change in technology not because of faulty trade
policies.
The DG appreciated the transformation that India is undergoing in terms of technology

with IT products and services which are becoming increasingly important to the economy. He
reiterated that the efforts of India in terms of ease of doing business are being recognised at
the world stage and appreciated the role of India in developing fair trade practices.
The DG lauded the Indias initiative of presenting a comprehensive plan on a Trade
Facilitation in Services Agreement and called it a positive move towards fair trade in service
sector. Noting that services have become a key part of economies around the world, he said

that the TFS Agreement aims to ease norms including those relating to movement of foreign
professionals across borders for short-term work.
During the visit WTO DG also explained about the global pact on e-commerce. The e-
commerce issues are being advanced by a number of countries at the WTO and Azevedo
confirmed that while there were deliberations on the issue but no consensus had been
reached on how to move forward.
Debate In WTO on E-commerce

The talks on global rules on e-commerce took the centre stage during the recent visit of
Roberto Azevedo (WTO Director-General) to India.
In 2015, as per the WTO, global e-commerce in goods and services was worth about $22
trillion, and has grown the fastest in emerging economies.
The ICC (International Chamber of Commerce) and B20 (The business associations from
G20 members) proposed a holistic package of trade disciplines, rules and assistance to
boost MSME e-commerce with an overriding objective to promote inclusive growth. These
are:
1. enhancing connectivity and capacity building for e-commerce;
2. enabling MSMEs to get goods sold online to consumers more efficiently (Trade
Facilitation 2.0);
3. digital rules to support online growth and build consumer trust; and
4. A standstill on customs duties: WTO Members agreed in 1998 to a standstill whereby
no customs duties are imposed on e-commerce transmissions. The ICC and B20
recommended to make this standstill permanent to build confidence in the growth of
e-commerce.
Trade facilitation looks at how procedures and controls, governing the movement of
goods across national borders, can be improved to reduce associated cost burdens
and maximise efficiency while safeguarding legitimate regulatory objectives.
Indias Concern
India has been opposing attempts, mainly by the rich nations, to incorporate what it calls, new
issues such as e-commerce and investment in the ongoing Doha Round talks of the WTO on
the grounds that it would lead to the dilution of the development agenda (that is to improve the
trading prospects of developing countries) of the negotiations.
Fear of MNCs: Indian companies expressed reservations regarding a global, regional or
bilateral pact on e-commerce fearing it would favour multinational firms.
Indias e-commerce policy is not yet evolved for it to take a stand regarding a global e-
commerce pact.
Inter-ministerial discussions were also being held regarding policies on cyber security and
hacking, fake goods and piracy, net-neutrality as well as on safeguards to protect consumer
data and ensure privacy.
There were differences between ministries on issues such as data localisation.
Data Localisation And Related Issues
Information that flows through the internet, or digital data, is critically important to
our societies and the global economy. Businesses rely on data for their daily
operations, governments use data to make policy decisions, researchers analyze
data to solve complex local and global problems, and everyday internet users send
and receive data each time they connect, use online applications, send or receive
email, or post on social media.
The free flow of data across national borders and around the world is a core
function of the internet, but the proliferation of data also creates challenges for
policymakers.
Unfortunately, in an attempt to protect privacy and security and to promote
economic growth, some governments have taken troubling measures to
require that data be stored, processed, or handled within their borders.
These misguided policies, called data localization, can have serious, harmful, and
unintended consequences to economies and citizens alike.
Indias Stand On E-Commerce Issue At WTO
The WTO needs to develop rules and standards to make sure that the efficient growth of e-
commerce is secured, since it has the potential to revolutionise trade flows around the world.
Having an informal and non-binding discussions on these issues.
New Delhi has said these topics cannot be made part of the formal agenda of WTO
negotiations without consensus among all the WTO member nations.
New Delhis Proposal To WTO For A Global Pact To Boost Services Trade.

Why This Push By India
World Bank data shows the growing share of services in the world economy, despite the fact
that global trade flows in services remain subject to numerous border and behind-the-border
barriers.
Since the services sector accounted for more than 60 % of GDP and 28 % of employment,
there is a need to boost service trade.
What Is Indias Proposal

India proposed Trade Facilitation in Services (TFS) Agreement at the WTO-level which aims
to ease norms relating to movement of foreign skilled workers/professionals across borders
for short-term work as well as reducing transaction costs in services.
The TFS agreement could be based on TFA in goods, with suitable modification and
adaptation for services. India ratified the World Trade Organizations (WTO) trade facilitation
agreement in April 2016, which aims at easing customs procedures to boost commerce. The
TFA has recently come into force after the two-thirds of 164 WTO members formally
accepted the agreement.
Ensuring portability of social security contributions, as well as making sure fees or charges
for immigration or visas are reasonable, transparent, and non-restrictive (or impairing the
supply of services) in nature.
Aims to pave the way for a single window mechanism for foreign investment approvals.
Besides, the proposal is to ensure cross-border insurance coverage to boost medical
tourism, publication of measures impacting services trade and timely availability of relevant
information in all the WTO official languages as well as free flow of data/information for
cross-border supply of services.
Thus making the market access effective and commercially meaningful.
India Is Sending Expert Team To WTO

Background
After the December 2015 MC (Ministerial Conference is the WTOs highest decision-making
body which usually meets every two years.) in Nairobi, India negotiated and secured a re-
affirmative Ministerial Decision on public stockholding for food security purpose.

The decision commits WTO members to engage constructively in finding a permanent
solution to the issue of public stockholding for food security purposes. The developed
countries were reluctant to agree to continue the Doha Development Agenda post-Nairobi.
Issues To Be Discussed
The expert team will discuss the following issues before the next ministerial conference in
Argentina in Dec 2017.
Indias opposition is towards the attempts by some rich countries to work towards a global
investment agreement at the WTO-level that would incorporate a contentious Investor-State
Dispute Settlement mechanism.
To place its demands for a permanent solution to stockpiling food grains and the proposed
trade facilitation agreement (TFA) on services.
For a permanent solution, India had proposed either amending the formula to calculate the
food subsidy cap of 10 per cent, which is based on the reference price of 1986-88, or
allowing such schemes outside the purview of subsidy caps
The rising protectionist measures and growing voices against trade had resulted in slower
international trade growth.
WTO's Trade Facilitation Pact Comes Into Effect

The WTO's trade facilitation agreement (TFA), which seeks to ease customs
norms, has come into effect with its two-thirds members ratifying the pact in
February 2017.
The TFA has been ratified by India. It will give a boost to the global trade, which
has been impacted due to slowdown in the world economy.
According to the 164-member organisation, the TFA on goods would simplify
trade processes, bring down barriers to trade and also enhance the capacity of the
developing world to engage better with the global trading network. The trade
facilitation agreement will also lead to reduction in transaction costs.
The agreement, in effect, is a broad series of trade facilitation reforms spread
out over a gamut of trade issues across the areas of transparency and
predictability of trading across borders. It aims to create a less discriminatory
business environment.
Developing countries are predicted to increase the number of new products

exported by as much as 20 per cent.
This would boost global trade by up to 1 trillion dollars each year, with the biggest
gains being felt in the poorest countries. The impact will be bigger than the
elimination of all existing tariffs around the world.
But, rising protectionism may dent the success of TFA
The significance of TFA is that this is the only meaningful multilateral agreement
the WTO members have brought into force since the launch of the Doha
Development Round in 2001. Otherwise, WTO has made very little headway on
issues such as elimination of subsidies to agriculture by richer countries and more
liberal trade in services. Given the anti-globalisation sentiment, especially in
developed countries now, TFA alone might not help revive the moribund
multilateral trade negotiations.
Recent Issues: India And WTO

Special Safeguard Mechanism
In view of the subsistence nature of farming in agriculture and the need to insulate the poor
and vulnerable farmers of the developing countries from the uncertainties in the global
markets, the instruments of Special Products (SPs) and Special Safeguard Mechanism
(SSM) were built into the Doha mandate.
India has raised the issue for addressing the food security, rural livelihoods and
development of poor masses. There was a lack of consensus to allow developing countries
for providing more subsidy than decided in the WTO agreement.
As of now, Peace Clause(Provision in Article 13 of the Agriculture Agreement saying
agricultural subsidies committed under the agreement cannot be challenged under other
WTO agreements, in particular the Subsidies Agreement and GATT. Expired at the end of
2003) agreed to in 2013 allows India perpetually to continue the food stocking program at
administered prices without being dragged into WTO for violation of Agreement on
agricultural subsidy.
Intellectual Property
Further as part of Doha Development Agenda developing countries managed to modify
Agreement on Trade related aspects of Intellectual Property (TRIPS) in favor of developing
countries by allowing compulsory licensing in certain circumstances.

First compulsory license was granted by Indian Patent Office to NATCO for nexavar drug
produced originally by German firm Bayer AG.Since then US pharma industry has been
apprehensive of frequent evocation of this principle in developing world.
US not only want this concept to be done away with, it also wants a liberal IPR regime which
allows ever-greening of patents.
Indian Patent Act as amended in 2005 allows protection of both product and process but it
allows patent only when there is enhanced efficacy of the substance. If a company re-invents
a previously known substance in to new form e.g. from Solid to Liquid, then protection cant
be granted.
India due to its promising pharmaceutical industry exploits these powers religiously. Since
Indias course is not violative of TRIPS hence question of India being challenged in WTO
doesnt arise.
Domestic Content Requirement (DCR) in Solar Panel
India lost the case of DCR in solar panel to US in WTOs dispute resolution body. India has
prescribed domestic content requirement for procurement of Solar cells/panels for its target
of installing 100 GW of solar power by 2022.
Under this about 5% procurement was reserved to be bought from Indian vendors to
promote indigenous industry. US alleged that this is against principles of Non Discrimination
and National Treatment.
India now has appealed against this decision and can get 2 year reprieve from rolling back of
scheme.
Sanitary and Phyto-Sanitary Measures
This agreement was one of the results of Uruguay Round of negotiation entered into force
with the establishment of the World Trade Organization on 1 January 1995.
The Agreement sets out the basic rules for food safety and animal and plant health
standards. It allows countries to set their own standards.
But it also says regulations must be based on science. They should be applied only to the
extent necessary to protect human, animal or plant life or health. And they should not
arbitrarily or unjustifiably discriminate between countries where identical or similar conditions
prevail.

Under these regulatory measures several Indian food products have been restricted such as
import ban on Alphonso mangoes and other marine products by EU, ban on meat and meat
products by Chile, U.S. etc.
Anti-dumping Measures
Anti-dumping measures are unilateral remedies which may be applied by a Member state
after an investigation and determination by that Member in accordance with the provisions of
the Anti-dumping Agreement of WTO that an imported product is dumped and that the
dumped imports are causing material injury to a domestic industry producing the like
product.
The cases against India regarding anti-dumping measures are: Anti-Dumping Duties on USB
Flash Drives from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu by
the complainant China.
About World Trade Organisation

The World Trade Organization (WTO) is the only global international organization
dealing with the rules of trade between nations.
At its heart are the WTO agreements, negotiated and signed by the worlds
trading nations and ratified in their parliaments.
The goal of the WTO is to help producers of goods and services, exporters and
importers conduct their business.
The WTO was established in 1995 and its predecessor organization the GATT
has helped to create a strong and prosperous international trading system
thereby contributing to unprecedented global economic growth.
The WTO currently has 164 members .WTO activities are supported by a
Secretariat (situated at Geneva,Switzerland) led by the WTO Director-General.
Decisions in the WTO are generally taken by consensus of the entire

membership. The highest institutional body is the Ministerial Conference which
meets roughly every two years.
A General Council conducts the organization's business in the intervals between

Ministerial Conferences. Both of these bodies comprise all members.
Specialised subsidiary bodies (Councils, Committees, Sub-committees) also
comprising all members, administer and monitor the implementation by members

of the various WTO agreements.
3.5. Public Sector Asset Rehabilitation Agency (PARA)

Background
Indias bad loan problem is getting worse. The gross non-performing assets (GNPAs) of
public sector banks have soared to Rs 6.2 lakh crore (a staggering 11.2 % of their advances)
at the end of December 2016
A Non-performing asset (NPA) is defined as a credit facility in respect of where the interest
and/or installment of principal has remained past due for a specified period of time. These
are essentially bad loans or defaults. Usually, any amount to be received remains overdue
for a period of more than 90 days is termed as a NPA.
The Indian economy is confronted with the twin balance sheet (TBS) problem i.e, the bad-
loan encumbered banks and over-leveraged corporates
Some of the sectors witnessing heavy stress are infrastructure, metals (esp. steel), telecom,
and textiles.
(Stressed assets = NPAs + Restructured loans + Written off assets)
Challenges to Economy Due To Bad Loan
Public sector banks account for about 70% of lending. The economic growth slows due to
weak credit and investment in the economy.
The cleaning up process is being delayed causing further reduction in private-sector
investment.
The continued slowdown and slump in demand in many sectors has added to the trouble for
borrowing companies and their ability to service their debt.
What Was The Current Strategy And What Is Wrong With It

So far, the strategy has been to solve the TBS through a decentralised approach, under
which banks have been put in charge of the restructuring decisions. But in the current
circumstances, effectiveness has proved elusive as banks have simply been overwhelmed
by the size of the problem.
Banks are facing severe coordination problems, since large debtors have many creditors,
with different interests.

PSBs management is unable to write off debt for fear of inviting investigation from CBI, CVC
and CAG.
Private Asset Reconstruction Companies (ARCs) havent proved any more successful than
banks in resolving bad debts and are too small to handle the large cases. Moreover, the
incentives facing the ARC-bank relationship can be inherently distorted: For example,
ARCs earn management fees for handling bad debts, even if they dont actually work them
out.
The new bankruptcy system is not yet fully in place; even when it is, considerable time will
be needed before it is ready to handle the large cases.
RBIs corporate debt restructuring scheme failed in helping the companies to recover.
Corporate debt restructuring is the reorganization of a company's outstanding obligations,
often achieved by reducing the burden of the debts on the company.
Why PARA Is Needed
Because of the limitations in current strategy that deals with bad loan, PARA is required. It
has been proposed by the Economic Survey 2016-17 to resolve the issue of bad loans. It will
be much bigger in scale and will have substantial government equity.
PARA is a bad bank. It will buy bad loans from banks and companies and allow them to
restart their operations without those bad assets.
A centralised PARA could take charge of the largest, most difficult cases and make politically
tough decisions to reduce debt.
It could solve the coordination problem since debts would be centralised in one agency; it
could be set up with proper incentives by giving it an explicit mandate to maximise
recoveries within a defined time; it would separate the loan resolution process from concerns
about bank capital.
PARA have been adopted by many countries facing TBS problems, notably during the East
Asian crisis cases. East Asian countries were able to resolve their much larger TBS
problems within two years.
Other Alternatives
Reserve Bank of India (RBI) deputy governor Viral Acharya floated two proposals to
restructure stressed debt in troubled sectors.

o A private Asset Management Company (PAMC) for sectors where the stressed
assets are likely to have economic value in the short-run. A moderate levels of debt
forgiveness will be required.
o A National Asset Management Company (NAMC) in cases of assets where there

is little to no economic value in the medium or short term like the power sector.
Disinvestment: To address rising NPAs, divest government holdings in state-owned banks.
The banking system will be better off if there are fewer but healthier public sector banks.
The best antidote to this crisis is growth.
3.6. Budget 2017-18

Affordable Housing
The Union Budget 2017-18 has accorded infrastructure status to affordable housing sector to
achieve the goal of Housing for All by 2022.
Benefits That Would Accrue To This Sector
Infrastructure status will boost low cost housing. Real estate projects that meet
affordability norms will qualify like large public or private infrastructure projects for easier
lending.
Under the RBIs criteria for infra lending, the projects will receive bank loans for longer
tenures and at a lower rate of interest. It can get funding from Insurance companies, Pension
funds, mutual funds etc and also access External Commercial Borrowing(ECBs)
Simplification of approval process, clear guidelines and increase in transparency for
affordable projects. It will become eligible for tax and subsidy incentives.
Challenges In Development Of Low Cost Housing
The issue of land cost, land acquisition, finances and cheaper technology (methods and
materials) will still pose obstruction.
Private participation is must for meeting the goal of Housing for All but the sector is
struggling with adverse balance sheets.
System will have to put in place to carefully ensure that lending for affordable housing
projects is not siphoned off by promoters to draw down their overall debt.

Real estate has been the location of a nexus between politicians, bureaucrats and capital.
Leading to imprudent lending by state-controlled banks.
Ensuring that the projects must not start off as affordable housing projects and then be
transformed into something else once the credit has been disbursed.
Way Forward For Achieving Affordable Housing Objective
1. Land As A Resource: Land cost plays a major role in the pricing and affordability of
residential units. Smart Cities leverage available government-owned land parcels within the
specified areas for development for housing for the urban poor and the informal sector.
Utilising such land parcels at a subsidised rate will drastically reduce the pricing of the
resultant housing units.
2. Technology Intervention: Technology intervention in construction such as Pre-fab technology
will definitely address the gap between time, efficiency and funding for mass housing
projects which are part of the Smart Cities initiative.
Prefab technology: Construction of a prefabricated modular house. Prefabricated

homes, often referred to as prefab homes or simply prefabs, are specialist
dwelling types of prefabricated building, which are manufactured off-site in
advance, usually in standard sections that can be easily shipped and assembled.
3. Redevelopment: Most of the smart cities in India have adopted the redevelopment model for
ABD (Area Based Development). This gives an opportunity to address the housing needs of
the informal sector by redeveloping the area with quality housing, since most of the existing
urban informal housing is in such locations.
4. Improved Infrastructure: The Smart Cities mission aims to create and maintain high-quality,
100 percent efficient civic infrastructure. Electricity, sewerage, storm water drainage and
water supply will be strengthened in Smart Cities, relieving the stress that large-scale
housing projects invariably create on a citys infrastructure.
5. Multiple Financing Options: For Smart Cities availability of funding is ensured through
convergence with other government schemes like funds raised from the state governments,
municipal debt, Real Estate Investment Trusts (REITs), infrastructure debt funds, and the
PPP vehicle.

6. Private Players: The Smart Cities mission encourages participation of private entities,
thereby increasing the productivity and quality of the projects. This will provide an integrated
platform for private players such as housing developers and infrastructure service providers.
Conclusion
The convergence of schemes such as the Housing for All and Smart Cities missions will be
most appropriate to achieve optimal results with proper implementation. Isolated policies will
yield much lower results.
Overall, the goals for urban development in India should be to create sustainable, inclusive
and smart urban centers with good housing standards and participation of the private sector.
Abolition of Foreign Investment Promotion Board (FIPB)

Why In News
The Centre in the Budget 2017-18, proposed that the FIPB - which offered a single window
clearance mechanism for FDI applications in sectors under the approval route - will be
abolished in FY18.
The applications on FDI) in India in sectors under the approval route considered by the
inter-ministerial FIPB will soon be taken up by the concerned ministries and sectoral
regulators.
The RBI is expected to formulate standard operating procedure (SOP) for approval of FDI
proposals by ministries following the government decision to phase out FIPB.
Department of Industrial Policy and Promotion (DIPP) is the nodal agency on FDI issues,
while RBI is the nodal agency for administration of foreign investments and foreign exchange
Reason Behind The Abolition
In order to improve ease of doing business and expedite clearance of foreign investment
proposals. In the sensitive sectors like defence and telecom, companies having licences can
only seek foreign investments.
More than 92% of the FDI inflows were through the automatic route.
For the rest of the FDI (about 8% of the total FDI inflows), every department concerned has
a framework or a regulator for it. If there is an arms-length regulator for the department
concerned, it is sufficient to take care of the screening and approval of such investment
proposals.
Many MSMEs Wont Benefit From Budget Proposal Of Lower Taxation

A majority of micro, small and medium enterprises (MSMEs) in the country are family owned
businesses that are not limited liability companies and so would not be able to benefit from
the Budget proposal to cut the corporate tax rate(25%) for MSMEs with turnover less than
Rs 50 crore.
Most of the MSMEs are family-owned businesses and are hence partnership or
proprietorship firms.
Just 3% of the MSMEs are registered as limited companies. And, only these will enjoy lower
tax according to the budget proposal.
More than 90% of MSMEs, especially micro-units, are not private limited companies as
registered companies have to comply with several norms and maintain a plethora of
documents.
Not enough incentive. Though the micro-units risk losing their competitiveness to
corporate peers, the 5% lower tax may not be enough incentive to spur them to become
limited companies.
Limited Liability Company (LLC) is a form of company which is quite like a limited
liability partnership and sole trade business with limited legal procedures. No partner
is individually responsible for any other's misconduct or liability as per the company
rules and regulations. Limited liability company registration is almost same like a
private or public limited company in order to get the registration certificate from the
Registrar of the companies. Limited liability companies have been impeccably
growing due to its many advantages over other form of companies in India.
Conclusion
The Centre should frame simpler rules for micro and smaller companies, especially family-
owned firms, so that more MSMEs are encouraged to become LLPs or limited companies.
Challenges In Doubling Farmer's Income
A slew of measures has been taken in the Union Budget 2017 to boost the agriculture sector like
higher agricultural credit, higher allocation for irrigation projects, a crop insurance scheme and
increased allocations for MGNREGA to dig farm ponds.

Average Farmer Financial Position
1. The average monthly income of the Indian farm household was estimated to be
about Rs 6,426 by the Situation Assessment Survey of Agricultural Households
in its NSS 70th round.
2. This included net receipts from cultivation, farming of animals, non-farm business
and income from wages. During the same period, the average monthly
consumption expenditure per agricultural household was 6223.
3. What this shows is that most of the earnings of the average farm household were
spent in meeting consumption expenditures.
4. For cultivation-related expenses, the farmer is mostly dependent on loans and the
NSSO survey revealed that half of the farm households were neck-deep in debt.
Budget Proposals In This Direction

The expansion in coverage of National Agriculture Markets (e-NAM), an online agriculture
market. To integrate farmers with the market, the central government is planning to integrate
the spot and derivatives markets for farm produce using the e-NAM platform.
The budget proposes to come out with a model law on contract farming for adoption by
the states. This would enable farmers to legally enter into long-term production and
marketing arrangements with processors, retail chains and other big buyers.
The subsidy hike of 6% for the phosphatic and potassic fertilizer is seen as a positive thrust
for the manufacturers and traders of these fertilisers.
Hike in the corpus of the long-term irrigation fund (under NABARD) by another Rs 20,000
crore, taking the total fund size to Rs 40,000 crore. The setting up of a dairy processing and
infrastructure development fund at NABARD, with a corpus of Rs 8,000 crore over three
years, was also appreciated by them.
Challenges In Doubling The Income

APMC mandis have a lot of intermediaries who control the market of farm produce in their
region. Central government cannot reform them because agriculture is in state list. Many
state APMC Act do not follow the Model APMC act of the union government

The existing Agriculture Produce Market Committee (APMC) legislation of a few states do
have provisions for contract farming. But these are restricted to only marketing. Moreover,
they provide for an overbearing and intrusive role of APMC functionaries.
e-NAM has not been successful in spite of efforts by the government.

The problem of economic viability of farming is one of rising input prices such as for
fertilisers, pesticides and seeds and stagnating output prices as MSP is not rising.
The government made a paltry allocation to the National Adaptation Fund for Climate
Change. This is disturbing in the wake of the fact that the country faced unprecedented
drought affecting 330 million people last year.
Farmers needed an incentive to go organic as high input costs of fertilisers had raised farm
debts. Organic farming did not get any attention in the Budget.
The terms of the Pradhan Mantri Krishi Bima Yojna(PMKBY) spell out that the amount of
insurance cover depends on the premium paid and extent of cover, so a farmer may not
necessarily recover all losses sustained from crop damage in case of an eventuality.
Indian farmers do not constitute a homogenous community. There are rich, land-owning
farmers and then there are poor, landless farmers.
o The All India Kisan Sabha observed that a new nexus was now emerging comprising farm
contractors and big traders combined with rich landowners in rural India, which was
replacing the feudal landowning structures of the past.
o It is this new class of rural landlords that will largely benefit from the Budget announcements
of higher loan allocation and online trading of farm produce.
The Way Forward
Commodity Pricing: For any real increase in income, farmers require higher returns for their
produce.
o Central government has to provide incentive to state government so that they can bring
changes in their APMC Act and in contract farming rules so that it can benefit the farmers
especially the small and marginal one.
o Integration of spot and derivative market of farm via e-NAM platform

o Initiative must be taken to stabilize the price of farm produce. In case of rubber, a price
stabilisation fund was established which helped farmers get better prices for their produce.
Similar measures could be introduced for other farm produce as well.

Agriculture will have to grow at 12 or 14% to realise such rise in earnings. The growth rates
stand around 3% during last decade. Madhya Pradesh agri growth is around 10% in last
decade which offers an important lesson for the centre and other state government. MP has
got the Krishi Karman Award from the president three times in the last five years.
The recommendations of National Commission on Farmers (to provide the minimum price of
the total cost of production plus 50%) must be implemented now.
Availability of agriculture credit to women. Nearly 50% of farmers are women, who often do
not benefit from credit policies as they do not have land titles in their name. Unless land
titling recognises female ownership of land for cultivation, half of Indias farmers cannot claim
institutional credit.
Drought-proofing farming: Tackling climate change and its potential impact requires a budget
to safeguard farmers. Given the drought and errant rainfall affecting farmers, the
governments step to create five lakh more farm ponds that will work as a drought-proofing
measure in gram panchayats is welcome, but everything depends on how well the schemes
are executed on the ground.
Changes in the Pradhan Mantri Krishi Bima Yojana so that farmers can recover all losses
during crop damage.
Focus upon high value horticulture and dairy sector as there is limit to augmenting farmers
income through cereals. Investment in food processing industry, cold storage, warehousing
etc is necessary in doubling the farmers income.
Conclusion
With rising level of rural distress and farmers suicide the government is making efforts in right
direction to double their income. But this sector requires a cooperative federalism attitude among
all the federal units. However, given the complex and fractured political system, there is no time
to wait for the reforms being initiated by governments(i.e, supply side of reforms). The CSO,
NGO, market and common citizenry has to work towards building public opinion in favor of
progressive agriculture reforms. The people needs to demand agriculture reforms(i.e, demand
side of reforms) from the political system.
Brief Summary Of Rural Infrastructure Flagship Program
Context

Government has focused upon Rural infrastructure(rural housing, rural roads and rural
energy) in the Budget 2017-18. The govt is leveraging data from the Socio-Economic and
Caste Census (SECC) of 2011 for these schemes.
The ambitious goals set for Bharat is building over 1.3 crore pucca houses with toilets plus
electricity and LPG connections for poor rural families apart from all-weather roads
connecting every single habitation.
Budget as a political instrument: The government has set the timeline of 3 years ending
March 2019 ahead of the next general elections. An apt example of convergence of politics
and economics in a democracy. There is an intrinsic political appeal of rural housing and
road roads among citizens.
Why SECC Data Is Being Used

The SECC data, unlike below-poverty-line lists, is considered more reliable since
it uses objective exclusion criteria (such as ownership of irrigated land, two-
wheelers and pucca house with minimum three rooms or households having
government employees, income tax payers, etc.) rather than vague measures of
income that can be fudged.
Also, when the door-to-door survey was conducted, neither the enumerators nor
the subjects knew that the ultimate purpose was to target subsidies. Hence, the
information are mostly correct.
But most important, while all individual-level information collected in the
Population Census has to be kept confidential, the SECC data is open for use by
government departments.
Selection of individual beneficiaries under PMAY-G, PMUY and DDUGJY are
being done by employing SECC data, subject to validation by Gram
Panchayats.
Pradhan Mantri Gram Sadak Yojana (PMGSY)

It provides for all-weather road connectivity to every rural habitation with a minimum
population of 500 in plains and 250-plus in hilly, tribal and desert areas

This programme has seen a revival under the present government, with 36,337 km being
built in 2014-15 and 36,549 km in 2015-16. The figure is likely to be over 48,800 km in the
current fiscal and 54,000-55,000 km in 2017-18.
While 122,706 out of the eligible 178,184 habitations, identified as per the laid down criteria,
have already been covered as on January 31, the target is to connect the remaining by
March 31, 2019.
Also refer section 4.6 in Part 4 (Aug 2016) for performance audit report on PMGSY.
Rural Housing
According to the SECC-2011, rural India had 17.98 crore households, of which 3.91 crore
comprised those with no homes or living in one/two room dwellings with kutcha wall and
kutcha roof.
Between December 2016 and December 2017, the central government plans to construct 44
lakh new houses under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) programme
and do another 56 lakh by March 31, 2019. Besides, some 30 lakh houses under the earlier
Indira Awaas Yojana (IAY) are pending completion.
The stepped-up allocation for the PMAY-G scheme: The 2017-18 Budget has provided Rs
23,000 crore towards rural housing, against Rs 16,000 crore for 2016-17 and Rs 10,116.20
crore last fiscal.
Under PMAY-G, the minimum house size has been raised to 25 square metres from 20
square metres under IAY along with enhanced government assistance of Rs 1.20 lakh
(Rs 70,000) in plains and Rs 1.30 lakh (Rs 75,000) for hilly/difficult areas. Further,
beneficiaries can take bank loans of up to Rs 70,000 through government facilitation.
Beneficiaries are also entitled to additional support of Rs 12,000 for building toilets through
the Swachh Bharat Mission-Gramin scheme and 90 days of wages worth Rs 18,000
towards construction of house under MGNREGA (which they can avail themselves or use to
pay other workers).
Implementation Methodologies - Use Of Technology To Bring Effectiveness.
The PMAY-G fund releases are made electronically to the beneficiaries Aadhaar-
seeded bank accounts, with the first instalment payable within a week after the
issue of sanction order.
The sanction order itself requires geo-referenced photographs of the beneficiary

in front of the kutcha house where she/he is currently residing and also the plot
on which the PMAY-G house is to be built to be captured using the Rural
Development Ministrys AwaasApp mobile application.
Subsequent fund releases are also based on similar capturing and uploading of
photographs with geo-coordinates and timestamps of the houses at each
construction stage: foundation, plinth, lintel, roof-casting and completion.
Rural Energy
The aim isnt just to build houses, but homes equipped with basic amenities.
Convergence is being sought with the Pradhan Mantri Ujjwala Yojana (PMUY) and the Deen
Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY). Both PMUY and DDUGJY are fully
centrally sponsored scheme providing free LPG and power connections, respectively to
poor rural households have March 2019 as their targeted deadlines.
3.7. Aadhaar Number Mandatory For Subsidies: Centre

In News
So far, the Centre has identified 31 schemes where the Aadhaar number can be used as
identification for providing various benefits. Section 7 of the Aadhaar Act, 2016 makes the
use of Aadhaar an identifier for delivery of various subsidies or benefits or schemes to
beneficiaries.
Some of the identified schemes include direct cash transfer of food subsidy under the
National Food Security Act, supplementary nutrition to children below six and pregnant
mothers, along with monthly honorarium for anganwadi workers under the Integrated Child
Development Services, and subsidy on housing loans under the Pradhan Mantri Awas
Yojana (Grameen).
From April, Aadhaar will also be a must to demand work under the MGNREGA.
More than a 100 million school children will compulsorily need Aadhaar to avail their mid-
day meal from 1 July.
Some facts:
India ranks 97 of 118 countries on the Global Hunger Index.

Two of every three Indians are guaranteed foodgrains under the National Food
Security Act.
One of every five rural households depends on MGNREGA work.
Problems In Aadhaar Based Implementation Of Welfare Policies

Linking of Aadhaar to a growing number of government entitlements has been criticised by
activist because of various issues and failures.
The insistence on Aadhaar biometrics has already wreaked havoc.

o The Mazdoor Kisan Shakti Sangathan estimates that in the last few months, 38 per
cent of households in Rajasthan have not been able to match fingerprints.
o In Madhya Pradesh, 20 per cent of devices have malfunctioned and have been
returned to vendors.
o In Jharkhands capital, at the outset almost half the cardholders were not able to
prove their identity. Five hundred leprosy survivors without fingers in Ranchi were
insensitively denied foodgrains for three months for want of fingerprints.
o The ouster of these eligible, impoverished families is often then heroically projected
as savings.
In PDS implementation the ration dealer can still give less grain than the printed receipt.
Only Andhra Pradesh and Tamil Nadu have electronic weighing scales connected to stem
quantity deception. But they too work only when there is electricity.
o Besides, the greatest pilferage occurs from godowns, not ration shops.
o Even the best of technologies are often no match for large-scale insider fraud.
Recently, across Karnataka, 45,000 bogus ration cards linked to fictitious 12-digit
Aadhaar numbers were discovered.
Biometrics are not foolproof the calloused fingers of labourers and the elderly frequently
throw up errors. Aadhaar also requires continuous access to mobile signals or the internet,
which is a tall order in rural areas that barely have 24 hours electricity.
A rare genetic disorder has left 84 people in Arai, Poonch district(Kashmir) with disfigured
hands and hence unable to register for Aadhaar Cards.
Legal Issues With Aadhaar

The Supreme Court has stayed the mandatory use of Aadhaar in one of the
scholarship schemes of West Bengal in September.
The HRD ministry has questioned the Centres push to link the unique numbers to
student scholarships, which is in clear violation of earlier Supreme Court orders.
Despite the enactment of the Aadhaar Act through the backdoor as a money bill,
the apex court has repeatedly pronounced that the unique number must be purely
voluntary and cannot be made mandatory for any government entitlement, till the
matter is sub judice.
Way Forward
1. The use of technology has become a necessity in making the service delivery platform more
effective. It has curbed corruption and removed intermediaries. It has brought transparency
and accountability in the implementation of welfare schemes. It has empowered the citizenry.
2. However, the problems being raised are of serious nature and need to be tackled. The
government have to devise a system for people who do not have hands, or are blind or
whose hands are disfigured. With every government service delivery linked to Aadhaar,
many people may not be able to even get a bank account opened to get their benefits like
disability pension.
3. One size fit all solution is not viable in a diverse country like India. Customization of
technology is the need of the hour rather than the standardisation.
a) For example if the aim was to ensure that unsold foodgrains are not siphoned off with
accounting dodges, there are other alternatives like Bihars barcoded coupons which
have reduced leakages from 91 to 24 per cent within six short years.
b) Previously, Tamil Nadu had relied on offline handheld billing devices (similar to those
with bus conductors). Andhras ration shops now use iris scanners, with a lower
error rate than biometrics.
3.8. Blockchain Revolution And India Banking System
Context
Blockchain technology is increasingly gaining currency in banking sector and may bring
about a second revolution for modern day banking. Finding uses across banking channels,
trade finance, insurance industry, company voting and record keeping.

Blockchain is the technology behind Bitcoins digital decentralized distributed ledger-
meaning it is a digital ledger system.
India started off with the Unified Payments Interface, based on a long existing technology
of immediate payment service (IMPS), then graduating to Bharat Interface for Money
(BHIM). The organisation behind all these technologies, National Payments Corporation
of India (NPCI), recently launched a common QR code app (Bharat QR) and has in the past
few weeks initiated the process for fingerprint-based payments called Aadhaar Pay.
But, innovation is not focused only on consumers; banks are also transforming their internal
processes by leveraging technology. Banking, today, is in a revolutionary mode that can
restructure the workings of finance capital and governance systems.
Advantages Of This Technology
Each transaction gets recorded, so it can significantly improve transparency. Blockchain
eliminates the need for a central regulator in case of banking.
For governments, blockchain can be the new way of defining governance, as each one can
store land records and titles online, eliminating instances of fraud.
Once combined with AI and Big Data solutions, it can open up a world of possibilities well
beyond our imagination.
Current Scenario In India
Institute for Development and Research in Banking Technology, the research arm of RBI,
pointed out that the technology was mature enough to be considered for Indian banking. It
also tested Blockchain, claiming that it could form the basis of RBI creating a digital
currency.
Bankchaining India: the countrys largest lender SBI became part of the Blockchain
bandwagon creating a system called Bankchain in association with IBM, Microsoft, Skylark
and KPMG, and 10 commercial banks.
The ICICI, Yes and Axis Bank have also instituted the technology for domestic financing,
intra-bank transactions and cross border remittances.
The Way Forward

Challenges and Risks with the Technology: the biggest risk comes from banks and systems
itself. It has the potential to transform not just financial transactions, but governance
initiatives as well, but security and safety issue have to be worked out first.

This technology provides an opportunity to achieve the goals of Digital India in real sense.
The e-governance initiatives of the government can get a boost by enhancing the
transparency and accountability in the financial system. It is also more cost effective than all
the technology present today. With any technology there is always some risks associated
with it but if the benefits outweighs the risk then the technology can be rightly adopted.
Although SBI has taken an initiative to tie up with 10 banks, RBI would have to step in for
system to have some legitimacy.
3.9. GST Updates
The GST Council has finalised a four-tier GST tax structure of 5 per cent, 12 per cent, 18
per cent and 28 per cent, with lower rates for essential items and the highest for luxury and
de-merits goods, including luxury cars, SUVs and tobacco products, that would also attract
an additional cess.
The cess is expected to provide additional resources to the central government to
compensate states for losses incurred. This will be based on the compensation formula.
Moreover, with a view to keeping inflation under check, essential items including food, which
presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate.
For GST, refer cover story in Part 4 (Aug 2016) of CA Magazine.

4. INTERNATIONAL AFFAIRS
4.1. North Korea Issue
Recently North Korea, despite various sanctions, tested a Pukguksong-2, an intermediate-range

missile under the supervision of the leader Kim Jong Un.
North Korea Issue
According to the 1943 Cairo Declaration (a statement of wartime objectives toward Japan
issued by the leaders of the United States, the United Kingdom and the Republic of China),
the bifurcation of Korea took place.
It was aided by the US and Soviet Union based on geopolitical considerations and not on
any pre-existing geographic or cultural divisions within Korea.
The Republic of Korea (ROK) in the south was declared independent on August 15, 1948
and the Democratic Peoples Republic of Korea (DPRK) in the north followed a month later.
The Soviet Union installed the Kim Regime as the Communist rulers of North Korea. In 1950,
North Korean dictator Kim Il Sung invaded South Korea starting a Three Year War that killed
nearly 2.5 million people (Korean War 1953).
In 1953 North and South Korea signed an armistice (Formal agreement to end war) but not a
peace treaty and the two countries remain at war.
The border between North and South Korea at the 38th Parallel known as the De-Militarized
Zone (DMZ) is the most heavily fortified region in the world.
Over 28,000 U.S. military personnel live on dozens of bases across South Korea. The United
States has signed two bilateral treaties that commit Washington to defending South Korea
and Japan from any North Korean attack.
Internal Situation of Korea
In North Korea the freedom of Movement is strictly prohibited. It is illegal for the North
Korean people to leave their country without the regimes permission and without any
specific purpose. The regime attempts to restrict the peoples movement even inside their
own country.
The criticism of the regime or the leadership in North Korea is the criminal offence. There is
no free media inside the country. The only opinion allowed to be voiced inside the country is
the regimes.

The regime has invested massive resources in trying to maintain an information blockade
and keep its monopoly as the only source of information and ideas to the North Korean
people.
In addition, it is illegal to own a tunable radio in North Korea, there is no access to the
Internet (except for a few hand-picked and monitored officials) and North Korean landlines
and mobile phones cannot make international calls.
Organized religion is seen as a potential threat to the regime and therefore nothing apart
from token churches built as a facade of religious freedom for foreign visitors are allowed.
The regimes refusal to effectively reform its failed agricultural policies has led to the severe
food security crisis and acute malnutrition in the masses.
The public health infrastructure is crippling. Majority of the public healthcare infrastructure
collapsed in the 1990s with only prioritized hospitals in areas such as Pyongyang kept
functioning.
Human trafficking is also a severe issue in North Korea. Many women trafficked to China
due to lack of marriageable women in the northeastern villages of China.
About Kim Dynasty:

The Kim dynasty is a three-generation lineage of North Korean leadership
descending from the country's first leader, Kim Il-sung in 1948.
The communist rule of the Kim dynasty in North Korea is established after the end
of Japanese control in 1945 and the bifurcation of the Korean region. He began
the Korean War in 1950 in an attempt to reunify the peninsula.
Nuclear Proliferation
Despite years of international condemnation, diplomacy and pressure, North Korea has
succeeded in developing a nuclear arsenal.
North Korea has conducted various nuclear tests. It has a history of proliferating nuclear and
missile technology abroad and the possibility of future nuclear proliferation remains a source
of major international concern.
North Korea is reliably estimated to possess approximately 30 to 50 kilograms of plutonium,
enough for perhaps six to eight weapons.
There are allegations that North Korea began receiving centrifuge-related equipment and
know-how from the A.Q. Khan (Pakistani Nuclear Scientist) network in the 1990s.

Nuclear experts and South Korean government sources expressed strong doubt about the
possibility that North Korea had tested a two-stage hydrogen bomb and even a fizzled
thermonuclear test.
In 2012, North Korea revised its constitution to declare itself a nuclear state and in 2013
adopted a law declaring it a full-fledged nuclear weapons state.
This law has provided some clarity into Pyongyangs official nuclear posture indicating that
nuclear weapons will be used for deterring and repelling the aggression and attack of the
enemy against the DPRK and dealing deadly retaliatory blows at the strongholds of
aggression.
What Is The Challenge?

An unregulated North Korean nuclear program poses a threat regarding the availability of
nuclear materials to the terrorist organizations, which can prove disastrous.
North Koreas plan to develop nuclear weapons has a domino effect in the region causing
South Korea, Indonesia, Vietnam and other neighboring countries to consider creating their
own weapons. Continued militarization by North Korea triggers a nuclear arms race
throughout the region.
There is a DPRK-Pakistan nuclear nexus. It is believed that DPRK has got expertise in
miniaturization of the warhead for fitting into missile system, a technology which has eluded
Pakistan so far.
The nexus will enable Pakistan to employ short and medium range missiles mated with
nuclear warhead. It will affect the relation between India and Pakistan ultimately leading to
destabilization of South Asia.
North Korean aggression and escalation can cause nuclear conflict and even the smallest
miscalculation may lead to rapid escalation and disaster.
Global Efforts To Prevent Nuclear Proliferation In North Korea
The UN called for economic sanctions on North Korea but it did not deter the continued
expansion of its nuclear program.
Exhaustive diplomacy to dismantle North Koreas nuclear program has proved disappointing
since years.
North Korea signed the NPT in 1985, the Non-Proliferation Treaty (NPT) which forbids
signatory states from pursuing nuclear weapons. However, international inspectors

uncovered a secret nuclear weapons program in 1992. North Korea withdrew from the treaty
in 2003 and accelerated its weapons development.
Since then, North Korea has engaged in cycles of (1) demonstrating progress on its illegal
programs and committing military provocations, (2) negotiating international agreements to
roll back that progress in exchange for aid, (3) suspending talks and ejecting U.N.
inspectors, and (4) withdrawing until the next round of threats.
Until 2009, negotiations were conducted through the Six Party Talks between North Korea,
United States, South Korea, Japan, China, and Russia.
The Six Party Talks which aimed to find a diplomatic solution to North Koreas nuclear
program have not convened since 2008 and Pyongyang has since repeatedly declared that it
has no interest in denuclearization.
US-China cooperation on sanctioning North Korea is crucial but the fundamental challenge
for Beijing and Washington is that they diverge in their preferred strategy to deal with the
North Korean problem.
Challenges In Front Of Global Efforts
Non effectiveness of NPT: North Korea was a member of NPT until 2003. Still, it managed to
get hold of the technology.
Defying stand of North Korea
o North Korea has decided to be a powerful nuclear state based on lessons from Iran,
Iraq and Libya while the United States cannot accept the global security risks of
allowing a totalitarian nuclear North Korea to defy the NPT proliferate or pursue
nuclear blackmail against its neighbors.
o Despite sanctions, DPRK is pursuing this technology.
o North Korea has been able to successfully exploit the geostrategic divisions of the
region in its favour.
Mistrust between U.S and China
o North Korea lives in the space created by Sino-U.S. geostrategic mistrust.
o Despite a shared interest in denuclearization of the Korean peninsula, Washington

and Beijing have differing interests and priorities regarding regional stability and the
preferred end-state and orientation of a unified Korea that inhibit Chinas full
cooperation to pressure North Korea.

o The United States should work with China wherever possible but cannot allow China
to prevent the U.S. from taking necessary unilateral self-defensive measures to
reverse North Koreas nuclear development.
Way Forward
U.S. needs to close the gaps with allies and neighbors of North Korea so as to create a
pressure. U.S. along with Japan, South Korea and China can work closely to achieve the
goal.
Appoint a senior envoy for North Korea who reports directly to the president as a way of
signaling the urgency of the North Korea issue, mobilizing bureaucratic and political support
to maintain steady focus and follow-through on a time-consuming and urgent issue, and
separating the issue from the already overloaded agenda in Sino-U.S. relations.
Promote internal debates among North Korean elites over the costs of North Koreas nuclear
development as a way of bringing Kim Jong Un to realize that nuclear development puts his
regimes survival at risk.
Q. Dictatorial regime in North Korea is a threat to not only its neighbouring countries
but also to the global peace. Critically Analyse.
4.2. U.S.A. Immigration Order

The newly elected President Donald Trump has issued an executive order regarding
temporary barring entry of immigrants from the seven Muslim majority countries namely Iran,
Libya, Syria, Yemen, Somalia, Sudan and Iraq for 90 days.
He suspended all refugee resettlement into the U.S for four months and refugee resettlement
from Syria indefinitely.
The President also reduced the number of refugees to be allowed into the U.S. this year
from 1,10,000 to 50,000.
The order has prioritized refugee claims on the basis of religious persecution, so long as the
applicant belongs to a religion that is a minority in their country of origin. This provision would
allow the White House to prioritize Christians from the Middle East over Muslims.
Reasons

The president explained that the suspension order was to protect the nation from potential
terrorists he believes that could enter into the U.S.
The order was issued for the time being until the national security team determine the robust
mechanism to strengthen the entry procedures.
According to the federal law, the president can suspend people or classes of people if he
determines their entry is detrimental to the nation. However, an amendment in 1965 to the
Immigration and Naturalization Act clarifies that people should not experience preferences or
discrimination on account of their race, sex, nationality, place of birth or place of residence.
The new President has argued that these type measures were also taken earlier. The former
President Obama enacted a substantially similar policy in 2011 when he prohibited Iraqi
nationals from coming into the U.S. for six months.
The administration explained that they restricted the immigrants from these countries which
were already targeted for extra scrutiny and not allowed to receive visa waivers to visit the
U.S.
These countries were earlier included in legislation passed by Congress and signed by
former President Obama though those prohibitions were far less broad than current one.
Current Status
Many Civil societies and immigrants rights groups filed law suits on the grounds that the
order violates the 1965 immigration law, the right to due process and the First Amendment
clause that bars Congress from establishing a religion among other things for barring entry of
immigrants.
Though the officials insisted they did not set out to create a Muslim ban but the order
described that the ban from the Muslim majority country violated the Immigration and
Naturalization Act.
As an early blow to the Presidents order, a federal judge has issued a temporary restraining
order barring the deportation of as many as 200 people having valid visas.
Later, a federal judge ordered that travelers be allowed to consult with volunteer attorneys
and another judge ruled that the travelers not only were free from deportation but that those
being held must be released from federal detention.
Consequence Of This Step

Confusion and despair at ports and airports as approved refugees, valid visa holders, non-
US dual citizens and US legal residents were detained, barred from planes or ordered out of
the US.
Nearly 500,000 people from the seven nations have received green cards in the past
decade, meaning hundreds of thousands of people are at risk of being barred from the US or
separated from their families.
Universities, hospitals and tech companies reeled from the order, which threatens or has
already banned thousands of doctors, students, researchers, engineers and others. The
orders will almost certainly affect how companies hire employees and commit to trade deals.
Refugees persecuted for their sexual orientation or suffering from medical crises are in limbo
with the other people denied entry, because the order makes no exception besides for
minority religion applicants.
So far, the vagueness of the orders appears to leave great authority in the hands of local law
enforcement at ports and borders, creating chaos and arbitrary detentions and questionings.
USA has been subjected to international criticism as this measure has been termed as
divisive and discriminatory. Chancellor of Germany, members of Arab League etc. have
criticized USA.
The immigration orders were against the Geneva Conventions which require the
international community to take in war refugees on humanitarian grounds. Hence, it has
acted as a dent on USAs international image as world leader.
4.3. New Sanctions On Iran

In the light of current missile test by Iran, the United States had issued new sanction on the
country. The public text of the sanctions lists 12 companies and 13 individuals, blocking
assets and prohibiting U.S. citizens from dealing with them.
The new sanctions restricted individuals linked to the missile programme and the Islamic
Revolutionary Guard Corps-Quds Force from using the US banking system.
While U.S. and Iranian officials have both stated that the missile test did not violate the terms
of the 2015 nuclear deal, the U.S. contended that it did violate an agreement governing
conventional weapons.
Reasons For The Sanctions

Iran test-fired a medium-range missile on which the U.S. State Department contended that it
violated a UN Security Council resolution proscribing missiles that could carry a nuclear
device
Iran's ballistic missile programme and continued support for terrorism poses a significant
threat to regional and global security hence it will continue to be subject to international
sanctions.
India-Iran Nuclear Deal

U.N. Sanctions
The United Nations Security Council imposed sanctions on Iran for its nuclear program
beginning in 2006, banning the import of nuclear-related materials and freezing the assets of
individuals and companies related to Iranian programs.
Those sanctions were added to in 2007 and 2008 imposing an arms embargo and travel
restrictions on sanctioned persons.
UN Security Council Resolution described that Iran could not participate in any activities
related to ballistic missiles; banned all countries from providing military vehicles, aircraft or
missiles to Iran and froze funds to Iran's Islamic Revolutionary Guards Corps.
Nuclear Deal
On July 14, 2015 the P5+1 (China, France, Germany, Russia, the United Kingdom and the
United States), the European Union (EU) and Iran reached a Joint Comprehensive Plan of
Action (JCPOA) to ensure that Irans nuclear program will be exclusively peaceful.
After the International Atomic Energy Agency (IAEA) verification that Iran was meeting its
nuclear commitments, the United States and the EU have lifted nuclear-related sanctions on
Iran.
In the deal, Iran reaffirmed that under no circumstances will Iran ever seek, develop or
acquire any nuclear weapons.
The JCPOA produced the comprehensive lifting of all UN Security Council sanctions as well
as multilateral and national sanctions related to Irans nuclear programme including steps on
access in areas of trade, technology, finance and energy.
The successful implementation of the JCPOA enabled Iran to fully enjoy its right to nuclear
energy for peaceful purposes under the relevant articles of the nuclear Non-Proliferation

Treaty (NPT) in line with its obligations therein and the Iranian nuclear programme will be
treated in the same manner as that of any other non-nuclear weapon state party to the NPT.
The International Atomic Energy Agency (IAEA) has been requested to monitor and verify
the voluntary nuclear-related measures and to provide regular updates to the Board of
Governors.
According to the agreement the P5+1 and Iran would meet at the ministerial level every 2
years or earlier if needed in order to review and assess progress and to adopt appropriate
decisions by consensus.
The deal ensured that Iran would abide by its voluntary commitments as expressed in its
own long-term enrichment and enrichment R&D plan described in the declaration.
A dispute resolution mechanism was also established as per the agreement. If Iran believed
that any or all of the P5+1 were not meeting their commitments under the JCPOA, Iran could
refer the issue to the Joint Commission for resolution and vice-versa the P5+1 could do the
same.
The deal aimed to stop Iran from acquiring a nuclear weapon. In practical terms it puts limits
on many of Iran's nuclear programs. For example: Iran has agreed to turn its Fordow facility
into a research center where Iranian and world scientists will work side by side.
Under the deal Iran has also agreed to rebuild its Arak heavy-water reactor which is currently
the only site in Iran capable of starting production on weapons-grade plutonium.
The deal allowed Iran to continue doing Uranium enrichment at its Natanz facility but the
country would only be allowed to enrich uranium to no more than 3.67 percent which is
enough for civilian purposes such as power plants but is much lower than what's needed for
a weapon.
Any violation of the agreement would lead to the re-sanctioning on the Iran and Iran
must have to comply with the provisions of the agreement.
Institution of Supreme Leader in Iran

At the top of Iran's power structure is the Supreme Leader, Ayatollah Ali
Khamenei, who succeeded Ayatollah Ruhollah Khomeini after Khomeini's death
in 1989.
Khomeini and Khamenei are the only two men to have held the office since the
founding of the Islamic Republic in 1979.

According to Iran's Constitution, the Supreme Leader is responsible for the
delineation and supervision of the general policies of the Islamic Republic of Iran
which means that he sets the tone and direction of Iran's domestic and foreign
policies.
The Supreme Leader also is commander-in-chief of the armed forces and
controls the Islamic Republic's intelligence and security operations; he alone can
declare war or peace.
He has the power to appoint and dismiss the leaders of the judiciary, the state
radio and television networks and the supreme commander of the Islamic
Revolutionary Guard Corps.
He also appoints six of the twelve members of the Council of Guardians, the
powerful body that oversees the activities of Parliament and determines which
candidates are qualified to run for public office.
Q. What was the Iran nuclear deal? What has led to U.S.s sanctions on Iran?
4.4. Israel Legalising Settlements

Despite of international pressure, successive conferences and U.N. resolutions which demanded
halting of all settlement activities in the occupied territories, Israel passed a legislation which
legalizes the Jewish settlements on the privately owned Palestinian land.
What Are The Settlements
The term Settlements usually refers to the towns and villages that Jews have established in
the West Bank and the Gaza Strip since Israel captured the area in the Six-Day War of 1967.
These settlements were established on vast tracts of land taken from the Palestinians in
breach of international humanitarian law.
The very existence of the settlements violates Palestinian human rights including the right to
property, equality, a decent standard of living and freedom of movement.
These settlements complicate the peace process and justify the Israel dominance in the
nominally Palestinian area.
The establishment of settlements contravenes international law which states that an
occupying power is not allowed to make permanent changes to the territory it occupied.
According to international law, it is also prohibited for the occupying state to relocate its own
citizens to the occupied territory. Notwithstanding, Israeli governments have implemented a
consistent and systematic policy in violation of international law designed to encourage its
citizens to relocate to the West Bank.
Impact Of The Current Law
The act for the first time provided the legal authority to the occupied territories and further
complicated the resolution of the age old Israel-Palestine conflict.
It undermined the international efforts and encouraged the Jewish settlers to dominate in the
Palestinian land.
The legislation allowed the Israeli government to transfer private Palestinian land if the land-
owners are unknown hence it will prove disastrous to the two state solution.
Current Status
The Israeli Attorney general denied defending the law in the high court of Israel as it is
unconstitutional and violating the international law.
The judiciary might declare the laws null and void and nullify its execution.
The critics expressed that this step of Israels government is anti-democratic which is leading
to the annexation of the land.
The international community and global leaders supported the Palestinian stand and are
severely against this step of Israel as the global leaders convened the Middle East peace
conference and United Nations passed a resolution to halt these activities in the settlement
areas while Israel is acting totally against it.
4.5. Rohingyas Ressetlement Issue

After the intervention of United Nations High Commission of Refugee, Bangladesh is working for
the relocation of Rohingyas on an island Thengar Char in the Bay of Bengal. Around 1000
refugees have been identified on the criteria based on health issues and isolation from their
families for the relocation.
Reasons for Relocation

In order to provide humanitarian support to Rohingyas, the Bangladesh government has
made a decision to rehabilitate the registered refugees from the camps to Thengar Char, a
disjunct island in Noakhali.
The Rohingya refugees were currently leading a miserable life in Cox's Bazar and its
adjacent areas without any proper civic amenities, including sanitation, drinking water and
habitations.
Hence, the government wants to temporarily relocate them to another place to provide them
with better facilities.
Though there are apprehensions that the Bangladesh government want to develop the Coxs
Bazar area into a tourist spot hence the relocation is being done.
Criticism Of The Relocation Plan
The human rights groups have raised objections against the government's plan to relocate
Rohingyas at Thengar Char near Hatiya Island because it is surrounded by several feet of
water at high tide years round and submerged at the time of monsoon.
The island was formed about a decade ago by sediments from the River Meghna and it has
no road connectivity or flood defences also.
The relocation plan was last proposed in 2015 but the government quietly suspended it after
criticism from international aid groups and rights activists.
The place was only accessible during winter and is a haven for pirates hence in the absence
of any facilities with these challenges it is very difficult to live in such an uninhabitable area.
There is also a criticism that the government has pushed the relocation of the refugees
stating that it is hampering the tourism of the Cox's Bazar district hence human rights groups
have raised strong objections to the plan declaring it a forced relocation.
Please refer Section 4.3. in Part 8 (Dec 2016) of Current Affairs Magazine for details on
Rohingya crisis.
4.6. Terror Atacks In Afghanistan
In News
A suicide bomber had detonated near a parking lot of Supreme Court in the capital of
Afghanistan which resulted into the death of around 20 people.
Hitherto no terrorist group had claimed the responsibility but it had been speculated that the
terror act was done by Taliban terrorist organization.
Later, on the social media platform ISIS claimed the responsibility of the attack.

ISIS in Afghanistan
1. As ISIS militants suffer a setback in Syria and Iraq hence they appear to be gaining new
ground in Afghanistan.
2. The terrorist group has taken advantage of a security vacuum to establish a foothold in
Afghanistans northeastern border. ISIS has announced that it was forming a new province
in Afghanistan.
3. ISIS has launched several attacks including bombing the Pakistani consulate in Jalalabad,
killing seven people and the recent one near Kabul Supreme Court.
4. Locals were attracted to ISIS because of unemployment and deprived socio-economic
conditions in the country.
Terrorism in Afghanistan
Modern Afghanistan is seen as a place of terrorism and fear but it hasn't always been that
way. Afghanistan had always been a good trade location.
Due to its popular trade background, Afghanistan attracted many invaders throughout its
history and it has been fought over and ruled by many people.
Afghanistan has been a place of constant war since the 1980's. Terrorism started when The
Taliban came into power.
The Taliban are a political terrorist group which conquered Afghanistan and its people. In
1996 when The Taliban first rose into power, they took a series of rights away from Afghans
and they started attacking and victimizing them.
They forced all Afghans to convert to Islam and when the Afghans tried to fight back and
sieze the help of other countries, The Taliban started attacking other countries as well.
The Taliban started making planned attacks on states all over the world including 9/11.
September 11 Attack and U.S., U.K. Intervention
The hijacking and crashing of four U.S. jetliners on Sept. 11, 2001 brought instant attention
to Afghanistan. The plot had been hatched by al-Qaeda and some of the 19 hijackers had
trained in Afghanistan.
In the aftermath of the attacks, the administration of U.S. coalesced around a strategy of
first ousting the Taliban from Afghanistan and dismantling al-Qaeda.

The United States military has been engaged in Afghanistan since 2001. In 2003, NATO
assumed leadership of the United Nations-mandated International Security Assistance Force
Mission (ISAF).
ISAF forces fought alongside the Afghan National Defense and Security Forces (ANDSF) as
the international community worked to improve ANDSF capabilities.
In support of the Afghan government, ISAF assisted the Afghan National Security Forces
(ANSF) in the conduct of security operations throughout the country, helping to reduce the
capability of the insurgency.
An important priority for ISAF was to increase the capacity and capabilities of the Afghan
forces. This became the main focus of the mission from 2011 onwards, as responsibility for
security was progressively transitioned to Afghan lead and ISAF shifted from a combat-
centric role to training, advising and assisting.
The multinational force also helped to create the space and lay the foundations for
improvements in governance and socio-economic development for sustainable stability.
Resolute Support Mission:
Following the completion of the mission of the International Security Assistance

Force (ISAF) at the end of 2014, a new follow-on NATO-led mission called
Resolute Support was launched on 1 January 2015 to provide further training,
advice and assistance for the Afghan security forces and institutions.
At the NATO Summit in Warsaw, Allied leaders decided to extend the presence
of RSM beyond 2016.
The United States and NATO formally ended their combat role in Afghanistan
and transitioned to a new mission.
In addition to contributing to RSM which helps Afghan forces become more
effective, professional and sustainable, U.S. forces are continuing to disrupt and
degrade al Qaida and Islamic State activities in Afghanistan through partnered
operations with Afghan forces as well as unilateral operations
4.7. Protests In Romania
The massive protests in Romania were being held against the deliberated dilution of anti-
corruption laws in the country.

About The Changes In The Legislation Regarding Corruption
The government has attempted to decriminalise the graft practice to a certain threshold limit.
The decree allowed officials involved in graft with family members or involving amounts of
less than 200,000 lei ($48,500) to avoid jail.
The government explained that the measures were needed to align Romania with a
European Union directive on the presumption of innocence and the right to be present at
trials.
The objective of the amendment was to pardon errant officials through the normal
parliamentary route. The government justified the decree by saying the current law did not
conform the constitution and claiming it would help ease prison overcrowding.
Response Against The Changes
The massive protest has initiated against the measure of diluting the anti-corruption laws.
Romanians have taken to the streets against the governments attempt. The move has
neither impressed the citizens of Romania nor European Union officials.
The critics said that the real goal was to help some of the several thousand officials and
politicians caught in an anticorruption drive in recent years.
Even the countrys President has supported the protests.
Current Status
In response to nearly a week of massive public protests. Romania's government has formally
repealed an emergency decree that decriminalizes some official corruption.
Prime Ministers cabinet confirmed the withdrawal of the measure in a statement that was
issued after an emergency meeting on the issue.
Around 200,000 people protested in Bucharest while many called for the resignation of the
Prime Minister.
The government's pullback could be seen as a victory for President Klaus Iohannis, who filed
a Constitutional Court challenge against the decree arguing that it undermined the rule of law
and efforts to combat corruption.

5. INDIA AND WORLD
5.1. H- 1B Visa Issue : USA
Why In News
A new bill lobbying for reforms in the H-1B visa programe was tabled in the US.
The legislation regarding hike in the salaries of workers possessing H-1B visa and the
anticipated changes to be done in the H- 1B visa policy has concerned the Indian I.T.
industry and technological skilled workers operating in USA.
What Is H- 1B Visa
It is an employment-based, non-immigrant visa category for temporary workers.
For such a visa, an employer must offer a job and apply for employees H- 1B visa petition
with the US Immigration Department. If approved, this work permit allows the employees to
obtain a visa stamp and work in the U.S. for that employer.
About H- 1B Visa Programme Bill
To curb the number of immigrant workers the Bill has been presented in the U.S. congress,
which prohibits companies from hiring H- 1B employees more than 50% of their total
employees.
The enhancement in the job opportunities for the American workers was one of the
declarations in the election campaign of the newly elected President. This provision would
crack down on outsourcing companies that deploy large numbers of H-1B workers for short
training periods and then send these workers back to their home country to do the work for
Americans.
The Bill seeks to give the Department of Labour enhanced authority to review, investigate
and audit employers compliance as well as to penalise fraudulent or abusive conduct.
According to the Bill, the minimum salary of H- 1B visa holders will be increased to $ 1,
30,000 per annum from $ 60,000 annually. This will negate the benefit which companies
have in appointing outsourced workers thus discouraging outsourcing.
Currently the firms need not go through extensive paperwork if the potential H- 1B employee
has an equivalent of a Masters degree. The Bill aims to do away with the Masters degree
exemption as they are easily obtained by foreign workers.

Concerns For Indian I.T. Sector
The prospective H-1B Visa changes may affect hundreds of IT professionals in the country.
Indian IT firms have been among the top recipients of the 65,000 such visas made available
annually via a lottery system thus garnering well in excess of 80% of them.
The Indian I.T. sector due to these changes might be affected in terms of rise in
unemployment rate.
The Indian multinational companies might have to make changes in their policies and
business strategies which can hurt their cost and profits.
These anticipations raised tensions in the sector and are causing instability in the STEM
sector.
Concerns For U.S. Companies
Indian IT sector contributes 9.3% to the U.S.A.s GDP and employs 3.7 million people.
The uncertainty caused by the new visa policy might lead to instability in the sector which
may result in reduced employment rate.
The risks to the IT services sector include an increase in cost per professional because of
more local hiring and a disruption in service continuity which may have a negative impact on
the profitability of companies that are visa-reliant.
If these reforms will be implemented they may force the companies to make fundamental
changes in their business strategies including hiring more American workers and raising
salaries they pay to employees working on client sites in the US.
Indian skilled professionals many of whom became US permanent residents and citizens
through the guest worker route, have founded scores of companies in America and
generated tens of thousands of jobs and billions in revenues in the nearly 25 years since the
guest worker programme began. The new policies might hit this successful guest worker
programme.
Response By Indian Government
The Indian Prime Minister raised the issue during his interaction with US Congress members
and suggested that restrictions on professionals would be an unwelcome step.
The Prime Minister hailed the role of Indians in enriching US economy and their contribution
to the US economy.

The Prime Minister urged the U.S. administration for developing a reflective, balanced and
far-sighted perspective on movement of skilled professionals.
NASSCOM, the National Association of Software and Services Companies also discussed
the issue in Washington DC to lobby with the administration and Congress against a tighter
visa regime for guest workers that is seen as adversely impacting India.
Q. The change in H1 b visa policy will have severe effects on Indian STEM sector.
Critically analyse.
5.2. Strategic Dialogue Between India And China

The strategic talks were held between foreign Secretary S Jaishankar and Chinese Foreign
Minister Wang Yi in Beijing to deepen the bilateral ties and to resolve the differences between
India and China over several issues.
Key Highlights Of The Dialogue
These talks were the first round of new strategic dialogues established between India and
China.
During the deliberations India explained its rationale to China on the listing of Azhar under
UN 1267 sanctions committee during this strategic talk.
The foreign secretary of India said that China has again opposed Indias membership to the
elite group giving reasons of procedures and processes which is unalike others in the
grouping.
Both the officials discussed the Afghanistan issue and there was an understanding on how
India and China can cooperate in capacity building in Afghanistan. On Afghanistan issue
both the countries decided to work in collaboration of each other.
The representative from Indian side explained India's development efforts like Salma dam
(also known as Herath dam or India-Afghanistan friendship dam) and electricity projects to
China during the talk.
The discussions also took place on Africa, Iran and related international political situation.
Both the officials during their discussions also talked upon the situation evolving in US after
President Donald Trump took office.
India-China Relations

Political Relations
On 1 April, 1950 India became the first non-socialist bloc country to establish diplomatic
relations with the Peoples Republic of China. Prime Minister Nehru visited China in October
1954.
While the India-China border conflict in 1962 was a serious setback to ties, Prime Minister
Rajiv Gandhis landmark visit in 1988 began a phase of improvement in bilateral relations.
In 1993, the signing of an Agreement on the Maintenance of Peace and Tranquility along the
Line of Actual Control (LAC) on the India-China Border Areas during Prime Minister
Narasimha Raos visit reflected the growing stability and substance in bilateral ties.
India and China have common interests on several multilateral issues of global importance
like climate change, WTO and reform of the international financial institutions etc.
The close cooperation and coordination is reflected between the two sides within the BRICS,
G-20, SCO and other multilateral fora.
Economic Relations
The relationship in economic aspect has seen rapid progress in the last few years.
The bilateral trade between the countries stood at $70.73 billion in 2015-16 making China
Indias largest trading partner in goods, replacing the USA.
Apart from trade, India is one of the largest markets for project exports from China.
Cultural Relations
The broad contours of the India-China cultural cooperation was laid down in the Agreement
on Cultural Cooperation signed in May 1988, which provides for an executive Cultural
Exchange Programme(CEP) for implementation.
In 2003, Prime Minister Vajpayee had commanded to build an Indian style Buddhist temple
in Luoyang, Henan province and President PratibhaDevisinghPatil inaugurated the temple
during her visit to China in May 2010.
In June 2008, joint stamps were released, one stamp depicting the Mahabodhi temple at
Bodhgaya and the other depicting the White Horse temple at Luoyang.
A Centre for Indian studies was set up in Peking University in 2003.Chairs of Indian Studies
have also been established in Shenzhen University, Jinan University, Fudan University,
Guangdong University and in Shanghai International Studies University.

The 60th anniversary of the establishment of India-China diplomatic relations was celebrated
with much fanfare in both countries in 2010.
Exchange of Youth delegation between Indian and China has been continuing since 2007.
During the visit of Chinese President Hu Jintao to India in November 2006, the two sides had
agreed to launch a five-yearprogramme for mutual exchange of youth delegation.
Major Bilateral Issues
1. Border Issue
The Border issue is rooted in the disputed status of the McMahon Line which defines the
border between India and Tibet.
India recognizes this agreement as the basis for its territorial claim while China objected the
validity of McMahon Line which was drawn in 1914 Shimla convention because China was
not a party to Shimla Convention so it is not bound to accept the boundary demarcated by
Shimla convention.
India claims 43,180 squares Kilometers of Jammu and Kashmir is occupied by China
including 5180 square kilometers which was ceded to China by Pakistan under a 1963
China-Pakistan boundary Agreement.
On the other hand, China claims 90,000 square kilometers of territory is held by India in
Arunachal Pradesh.
There has not been a remarkable progress in resolving the border dispute between the two
sides due to the importance of Aksai Chin to China as the main link between Tibet and
Xinjiang province of China and Arunachal Pradesh to India as crucial to stability in Indias
north-eastern insurgent affected areas.
After the 1962 war, relationship between China and India remained hostile for several
decades. Indias grant of statehood to Arunachal Pradesh in the late eighties (February
1987), which China claims as a part of South Tibet, caused hostility on the bilateral relations
to such an extent that another war seemed imminent.
China claimed the major territorial concessions in populated areas of Arunachal Pradesh
particularly Twang as it is central to Tibetan Buddhism given that the sixth Dalai Lama was
born there.
In the same way, as China seeks return of Arunachal Pradesh on religious grounds, India
demands the return of the sacred Mount Kailash Manasrovar in Tibet since it is a sacred
place associated with the Hindu religion and Indian ancient history.

However, ease on border and overall border relations began to improve following the border
agreements in 1993 and 1996 between the two states. Since then, both sides have agreed
to keep working on the border issue and resolved that any disagreement on border issue
should not be allowed to affect the overall bilateral relations.
Though there have been several skirmishes and incursions on the borders but the two sides
have also pursued Confidence Building Measures (CBMs) along the border which includes
mutual troop cut, regular meetings of local military commanders and other confidence
measures for better border management.
2. Water Issues Between China And India
Between China and India water issues are becoming major area of concern.
Chinas plan of constructing big dams and diverting the water of rivers to its own advantage
has discontented India.
There are four rivers that flow from China to India which are the tributaries of Brahmaputra
and Ganga river, the two countries must have a better understanding relating to water
sharing and other attending benefits out of these rivers.
In order to build a number of water projects in Tibet including a dam on Brahmaputra,
Chinese scientists have recently completed a comprehensive satellite study of cross border
Tibetan rivers completed determining their exact sources besides measuring the length of
their drainage basins.
Chinas strategic advantage over these rivers being an upper riparian state makes it possible
to counter-balance India on many other issues. The immense water resources in Tibet are a
critical factor in Chinas Tibet policy.
India being the lower riparian state is vulnerable to any major storage projects planned on
the YarlungTsangpo (Brahmaputra). Due to the political situation between the two countries
it is hard to imagine China playing the role of a responsible upper riparian state.
The problem gets more complicated in the absence of international law on shared waters
and when one such was attempted China voted against the convention on the law of the
Non-Navigational uses of International water courses in the UN General Assembly in 1997.
In spite of India and China having entered into agreements in the recent past on sharing of
hydrological data for flood control, the Chinese have not been consistent in sharing of the
information.
3. Stapled Visas

In 2009, China began issuing stapled visas to residents of Jammu and Kashmir and
Arunachal Pradesh which provoked a strong protest from India as it amounted to question
Indias integrity and sovereignty.
In 2011, China stopped issuing such visas for people from Jammu and Kashmir.
4. Tibet Issue
At the very heart of Indias relations with China is the unresolved issue of Tibet. In 1950,
Chinese troops invaded Tibet to reclaim and re-assert its sovereignty (Tibet declared
independence from China in 1913) over the region which was confirmed after both parties
signed the Seventeen Point Agreement.
In 1950 following an uprising in Tibet Dalai Lama fled to India with many of his followers
joining him in exile where he established the Central Tibetan Administration (commonly
known as the Tibetan government-in-exile).
When the uprising took place, India was accused of aiding the rebels.
India had sought to maintain Tibet as a buffer zone and restore its semi-independent status.
In 2003, when then Indian Prime Minister Atal Bihari Vajpayee visited Beijing, India
recognized the Tibet Autonomous Region as an integral part of the Peoples Republic of
China.
However while Indias official position on the Dalai Lama is to consider him a spiritual leader
and an honored guest, China on the other hand opposes any country that provides a
platform for his (the Dalai Lamas) anti-China activities in any form.
5. String Of Pearls
One of Indias growing concerns is Chinas ever-expanding sphere of geopolitical influence
in the Indian Ocean.
Termed as string of pearls it involves the development of commercial ports in various
countries as part of its new Silk Route.
The route which China claims as an important trade corridor extends from its naval base in
Hainan Island (South China Sea) to Bagamayo in Tanzania, Africa, with several of the ports
encircling mainland India.
These include Hambantota (Sri Lanka), Gwadar (Pakistan), Chittagong (Bangladesh) and
Marao Atoll (Maldives).

Officially, though China denies that these ports will ever be used as naval bases to threaten
its neighbor but it has been seen as a looming threat by Indian establishment.
6. Trade Issues
While China is Indias largest trade partner today, concerns about trade imbalance between
the two countries remain with the imbalance skewed in Chinas favour.
India's trade deficit with China has swelled to $52.68 billion in 2015-16.
Strong Chinese regulatory systems have put off exports from India especially from sectors
like information technology (IT), meat and pharmaceuticals where India is believed to have
the upper hand.
India is an exporter of raw materials to China with India importing finished goods from China
that have virtually invaded the markets in various sectors like toys, consumer electronics and
even areas like firecrackers thereby affecting Indias own manufacturing sector.
Various other goods like glasses, ceramics, bathroom fittings among many others are also
getting easier to import from China.
Traders prefer buying finished goods from China as theyre better in quality and come cheap,
compared to the rising production costs and other related taxes and duties back home and
offer them better margins.
The other areas where the relation between India and China are tensed include increased
trade and development projects in Africa and Latin America. Indias trade with Africa is
expected to rise to a $100 billion in 2015, while Chinas annual trade with Africa is worth
$200 billion
7. Other Issues: Along with these issues China is also acting as an irritant in several more
issues such as Indias bid for the membership in Nuclear Suppliers group, vetoed Masood
Azhar designation as terrorist in United Nations, Dumping measures against Indias domestic
industries and favouring Pakistan.
Q. Recently the strategic talks were held between foreign Secretary S Jaishankar and Chinese
Foreign Ministerin Beijing. In the light of above mentioned strategic dialogue, discuss the
key contentious issue between India and China.
5.3. Controversy Over International NGOS

Why In News

On the allegation of stricter funding regulations which led to lack of funding, an international
NGO Compassion Internationa is about to shut down its operations in India. U.S.-based
NGO Compassion International (CI) is the largest international donor in India.
US politicians including the former secretary of state John Kerry has so far failed to convince
the Indian government to relax financial restrictions on Compassion International.
What Are The Challenges Faced By NGOS In India
The stringent regulations under FCRA (Foreign Contribution and Regulation Act) affect the
functioning of the NGOs.
In the pretext of national security and other allegations on NGOs there are accusations that
the Indian government curbs the voice of civil society organization against it.
To have their hold on the NGOs, the government has increased the ambit of the Lokpal Act
and with the notification the act was extended to those who are working in NGOs.
Under the Lokpal Act the senior employees of NGOs has been included in the definition of
public servant which make them prosecutable under the Prevention of Corruption Act, 1988
(PCA).
The notification under Lokpal Act makes it mandatory for senior staff of NGOs to provide
details of cash, bank balances, immovable propertiesand loans of themselves, their spouses
and dependent children has caused a deep discomfort within a section of the NGOs.
Findings of IB Report on NGOs
According to the IB report the significant number of NGOs has been noticed to be using
public centric issues to create an environment which can cause stalling of projects such as
nuclear power plants, mining projects, hydel projects and mega industrial projects. It is
estimated to be negatively affected the G.D.P. growth by 2.3 % per annum.
The report revealed that the identified NGOs cleverly disguised the use of money in the
pretext of utilizing in the human rights, rehabilitation of displaced people and protecting
livelihood of the affected people.
As per the report few of the NGOs spearheaded the campaigning against the industries
working in the development of genetically modified organism.
According to the report at times these NGOs were successful in influencing the
governmental policies and programmes.

The government alleged that foreign-funded NGOs threaten national security, often
conflating such security which it is their duty to provide with the economic interests of private
corporations that stand to benefit from silencing democratic opposition.
The report alleged that these groups were acting on behalf of foreign entities rather than in
the best interests of the Indian people and argued that foreign influence should be controlled
to protect Indias national economic security.
After the revelation of the findings the inspection of records and accounts of such
associations had been conducted under Section 20 and 23 of Foreign Contribution
(Regulation) Act, 2010 to ascertain receipt of foreign contribution and to verify its proper
utilization.
Based on the studies of the report the government of India has taken stricter actions against
the NGOs which acts as impediment for economic growth and affects the national security of
the country.
About Foreign Contribution Regulations Act (FCRA)

Genesis
The roots of the Foreign Contribution (Regulation) Act [FCRA] lie in the period of
emergency declared in India during the period between 1975 and 1977.
The legislation was passed in 1976 with the purpose of regulation of acceptance
and utilization of foreign contributions and hospitality by certain category of
persons.
The Act was promulgated in 2010 and the FCR amendment act addresses some
of the key issues of the 1976 legislation without bringing into account any
significant changes into the scope or structure of the existing framework.
Being a special act the FCRA supersedes and prevails over other legislation such
as FEMA therefore even if some transactions are allowed as per FEMA,
restrictions if any, imposed by FCRA shall prevail.
Applicability
The act applies to the whole of India and even covers associates/branches and
subsidiaries of Indian companies and bodies registered or incorporated in India.
Further it is also applicable to citizens of India outside India.
Foreign Contribution

As per the act foreign contribution means a donation, delivery or transfer made by
any foreign source of :
o Any article whose value exceeds Rs 25,000, the definition does not cover
any article presented as a gift to an individual for his personal use.
o Any currency (Indian or foreign).
o Any security as defined by the securities contract regulation act.
When any person receives total foreign contribution in excess of Rs 1 crore in a

year then every person in receipt of such contributions would have to provide
summary of receipts and utilization of such contributions in public domain for the
relevant year and the year that follows.
What Are Foreign Sources?
The FCR act defines Foreign sources to include:
Foreign governments
International agencies [ not including agencies as specified by the government]
Foreign companies, corporations and MNCs
Indian companies with foreign ownership in excess of 50%

Foreign trade unions, trusts, foundations
Clubs, organisations, societies of Individuals founded abroad
Foreign citizens
In order to facilitate work of internationally recognized aid agencies, the government
has notified 109 agencies including those affiliated with the United Nations, WHO etc
as not being foreign sources for the purposes of this act.
Restrictions On Accessing Foreign Contribution
The act also limits and prevents certain individuals from accessing foreign
contributions to restrict foreign influences on key elements of the administration.
Therefore as per the act, entities which cannot access any foreign contributions
include :
Candidates for elections

Correspondents, columnists, editors, owners, printers of News papers

Judges, Government Servants etc.
Member of legislatures
Political parties
Any organisation of a political nature

Association or company engaged in the business of news broadcast through TV
or internet or an individual associated with such organizations
Foreign Hospitality
Foreign hospitality is another regulated element forming part of this regulation. The
following individuals can receive foreign aid only with the prior permission of the
central government:
Member of legislature
Office bearer of political party
Judge
Government servant
Employee of government corporation
Registration And Administration Under FCRA
Organisations with a definite cultural, economic, educational, religious or social
programme can accept foreign contributions however to do so they have to
register themselves with the central government under section 11 of the FCRA.
To be so registered with the government the organization must be in existence for
a period in excess of 3 years.
The funds so received by the organisationmust be used only for the purpose for
which they were received. And the organization must not use the funds for
speculative purposes.
Q. Various international NGOs have criticized India for stricter regulations of funding? What is
Foreign Contribution and Regulation Act? Do you think the stand of the Indian government
is justified?

5.4. Moscow Conference
The six nations namely India, Russia, China, Pakistan, Iran and Afghanistan have convened in
Moscow, Russia to ponder upon the crisis of instability and under-development in Afghanistan.
Highlights Of The Conference

The Afghan Ministry of Foreign Affairs (MoFA) has expressed that the consultative meeting
in Moscow is a positive step in promoting regional cooperation and solidarity in the war
against terrorism.
Although the meeting would not be able to bring Taliban to the negotiating table but the
involvement of Russia in the Afghanistans affairs is an important step for the development of
the region.
The Russian initiative is significant due to the return of Moscow to the region as an active
player but had led to apprehensions in Kabul and New Delhi that it was trying hard to bring in
Taliban into the mainstream so as to combat its perceived real threat of the so-called ISIS.
These deliberations were essential to end all forms of terrorism and extremism that beset
Afghanistan and the region and to ensure denial of territory or any other support, safe
havens or sanctuaries to any terrorist group or individual in countries of the region.
All the six countries agreed on the conditionality for engagement with the Taliban which
include giving up violence, abiding by Afghan constitution and cutting ties with al Qaida.
All the participants agreed to strengthen efforts to promote the intra-Afghan reconciliation
while maintaining the leading role of the current government of Afghanistan.
Participants have also agreed in favor of broadening this format of deliberations primarily by
adding the countries of Central Asia to it.
India Afghanistan Relations
India and Afghanistan have a strong relationship based on historical and cultural links. The
relationship is not limited to the governments in New Delhi and Kabul and has its foundations
in the historical contacts and exchanges between the people.
In recent past, Indo-Afghan relations have been further strengthened by the Strategic
Partnership Agreement signed between the two countries in 2011.
As Afghanistan was undergoing three simultaneous political, security and economic
transitions in 2016, India had allayed its fears about its future by making a long-term
commitment to the security and development of Afghanistan.

The Strategic Partnership Agreement (SPA) between the two sides provides for:
o Assistance to help rebuild Afghanistan's infrastructure and institutions, education
o Technical assistance to re-build indigenous Afghan capacity in different areas,
o Encouraging investment in Afghanistan's natural resources, providing duty free access

to the Indian market for Afghanistan's exports,
o Support for an Afghan-led, Afghan-owned, broad-based and inclusive process of peace
and reconciliation
o Advocating the need for a sustained and long-term commitment to Afghanistan by the
international community.
India successfully hosted the 6th Heart of Asia Ministerial Conference in Amritsar in
December 2016 which called for immediate elimination of terrorism to help the war-ravaged
country in its political and economic transition.
Our consistent signaling on the political inclusivity and peaceful transfer of power was
appreciated by all sections of the Afghans.
Commercial Relations
India recognizes the pre-eminence of Afghanistan as a junction of trade routes between

central, south and west Asia for 3000 years.
India after Pakistan is the major export destination of Afghanistan. One of the objectives of
building Zaranj-Delaram road by India was to boost bilateral economic relations besides
offering Afghanistan another outlet to Sea port.
The successful operation of the Chabahar port in Iran could capitalize on this road to offer a
new transit route of Afghan products to India while opening a new route for India and the rest
of the world for trade with Central Asia.
Afghanistan in turn has allowed reciprocal concessions to Indian products including tea,
sugar, cement and pharmaceuticals.
In November 2011, India removed basic customs duties for all SAARC LDCs at the SAARC
Summit in Male which gave all products of Afghanistan (except alcohol and tobacco) duty
free access to Indian market.
Transit is a major bottleneck in Indo-Afghan trade due to denial of export of Indian goods via
Wagah border and delays at Karachi port. Most of the trade occurs via Bandar Abbas port in
Iran or through Dubai.
Culture Relations
Afghanistan has been an important trading and craft center for over 2000 years connecting
the civilizations of Persia, Central Asia with India. However over 3 decades of war have
undermined Afghanistans unique traditions of art and architecture.
India and Afghanistan share centuries old cultural heritage with deep rooted linkages in the
field of music, arts, architecture, language and cuisine. In the field of music in the old days
most Afghan musicians were trained in the Patiala Gharana.
Today Indian films, songs and TV serials are hugely popular with the masses, contributing
significantly to the popularization of Hindi and familiarization of the populace with Indian
socio-cultural value system.
As part of Indias restructuring programme for Afghanistan, India has aimed to take up
projects that will render Afghanistan's cultural heritage sustainable. The Indian cultural centre
has also been working towards building the shared cultural heritage.
Indian Diaspora in Afghanistan
Presently, there are estimated to be about 3500 Indians in the country.
Most of the Indian Diaspora are engaged as professionals in Banks, IT firms, Construction
companies, Hospitals, NGOs, Telecom companies, Security companies, Universities, Govt.
of India sponsored projects, Govt. of Afghanistan and UN Missions.
The Mission interacts closely with the Indian citizens, helping them to resolve their problems
and routinely invite them to attend National & Embassy functions.
Indias Role in Afghanistan:
Indian projects have high visibility and touch the life of ordinary Afghans and have generated
enormous goodwill.
India is not perceived by the Afghan people and its political elite as a country with hegemonic
ambitions. The goodwill that it has earned in Afghanistan is unparalleled in South Asia.
India has invested in building capacities and institutions for effective state system that is able
to deliver goods and services required by the Afghan people .
It is providing scholarships, training bureaucrats and helping in capacity building in the

agriculture sector.
It has highly acclaimed medical missions in Kabul, Herat, Kandahar, Jalalabad and Mazar-e-
Sharif providing free medical consultation and medicines to 30,000 Afghans every month.
The Indira Gandhi paediatric hospital, the Pul-e-Khumri-Kabul electricity transmission line,
the Afghan Parliament building and the Zaranj-Delaram Highway are some of the significant
investments.
India recently announced an additional Rs 600 crore (approximately US$ 120 million) to
meet the escalation cost of the Salma dam power project which generate 52 MW of power
and irrigate 40,000 hectares of farmland.
India is also providing training and assistance to Afghans national security forces. For the
first time, India gifted Mi-25 attack helicopters to the Afghan forces.
Pakistan has made several attempts to side-line India in Afghanistan. It initially tried to link
stability in Afghanistan to the resolution of the Kashmir issue and then accused India of
destabilising Pakistan through its consulates in Afghanistan.
In the face of Pakistans unwillingness to change its view, Russian reluctance and Chinese
ambiguity, India has emerged as a clear choice. From being marginalised due to Pakistan,
India is poised to play a larger role to protect its interests in the post-withdrawal security
situation.
Indias Involvement in Afghanistan Aims To:
Support a plural government in Afghanistan representing all the ethnic groups and thereby
strengthening of democracy.
Help Afghanistan to become a viable state that can pursue an independent foreign policy.
Connectivity therefore becomes the key issue and India is supportive of the Silk Route.
Help Afghan forces becoming combat capable and to take responsibility in the post-transition
period. The Strategic Partnership Agreement that the two countries signed in October 2011
is an important step in this regard.
Help Afghanistan to emerge as a self-sustaining economy. India is engaged in the economic
development of Afghanistan, which is likely to sustain its presence in the post-transition
phase.
Bring peace and stability in the region.India is engaged with the regional countries in finding
a solution to Afghanistan and at least support the Afghan governments multilateral political
and economic initiatives.
Enable Kabul to fight against drug problems and extremism.
Indias Interest In Afghanistan:

Geo-Strategic Interest
o India has had to contend with many significant security challenges that stem from the
Talibans regime in Afghanistan in the 1990s. During Kandahar hijack episode India
was helpless. Thus India is absolutely adamant that Afghanistan should not again
become a terrorist safe haven.
o India is interested in retaining Afghanistan as a friendly state from which it has the
capacity to monitor Pakistan and even, where possible, cultivate assets to influence
activities in Pakistan.
o Developments in Afghanistan and Pakistan have important and usually deleterious
effects upon Indias domestic social fabric as well as its internal security apart from
the well-known problems in and over Kashmir. Rise of ISIS in Afghanistan may have
negative effects on Indias internal security.
o Afghanistan is important for India's energy security as it acts as a gateway to energy-
rich Central Asia. In addition, Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas
pipeline is scheduled to go operational by 2019.
Economic Interest: India has deep economic interests in Afghanistan too. A consortium of
Indian companies won the rights to three iron ore mines in the Hajigak region of Afghanistan
back in 2011.
Conclusion
Afghanistan not only serves security and economic interests but is also closely tied to Indias
vision of being a regional leader and a great power, coupled with its competition with China
over resources and its need to counter Pakistani influence.
Indias ability to mentor a nascent democracy will go a long way to demonstrate to the world
that India is indeed a major power, especially a responsible one.
However, this vision can only be materialized if Afghanistan does not descend into a state of
chaos and conflict.
5.5. India- Maldives

The Minister of State for External Affairs Mr. M.J. Akbar visited Maldives as a Special Envoy of
the Prime Minister of India.
Key Highlights Of The Visit

During the visit, the minister discussed various issues with the President of Republic of
Maldives Mr. Abdulla Yameen Abdul Gayoom and had a separate meeting with the Minister
of Foreign Affairs Dr. Mohamed Asim.
The visit of Minister of State for External Affairs was in keeping with the tradition of close
political consultations and exchanges between India and Maldives.
The Minister reiterated Indias support for a stable, democratic, peaceful and prosperous
Maldives fulfilling the aspirations of its citizens during the visit.
Both the nations reviewed the entire gamut of bilateral relations and agreed to impart fresh
momentum for further deepening mutually beneficial cooperation across a wide spectrum.
The discussions were focussed on areas of defence and security, counter-terrorism and
economic ties including substantial investment in the tourism sector in Maldives.
There was also discussion on developmental partnership, capacity building, youth and
cultural exchange.
President Yameen conveyed his appreciation for the consistent support of India and
reiterated the high priority attached by his Government to India in keeping with their "India
First policy.
India Maldives Relations
Refer Section 2.6 in Part 4 (August 2016) Issue of Current Affairs
5.6. India- U.K. Extradition Issue

Why In News
Recently deliberations were held between India and U.K. on the matters of extradition and
mutual legal assistance between the nations.
The issue came into limelight after the cases of liquor baron Vijay Mallya( the Rs 900 crore
IDBI alleged loan fraud probe case) and former IPL chief Lalit Modi (The case pertains to the
deal for media rights during the IPL seasons where Modi is alleged to have laundered
around Rs425 crore.) who ran away from India after the violation of Indian laws.
About The Extradition Dialogues

The meeting was held pursuant to the decision taken during the visit of the UK Prime
Minister to India in November 2016.

The two leaders had directed that the officials dealing with extradition matters from both
sides should meet at the earliest to develop better understanding of each countries legal
processes and requirements; share best practices and identify the causes of delays and
expedite pending requests so that fugitives and criminals should not be allowed to escape
the law.
Both sides held detailed and fruitful deliberations on the legal processes and procedures in
either country and reviewed the requests for extradition and mutual legal assistance pending
on either side.
Both sides reiterated their determination to strengthen legal cooperation and expedite the
pending requests.
It was agreed that the Central Authorities of both the countries would review further
progress in these cases every six month through Video Conference.
What is Extradition
Extradition is described as the surrender of an alleged or convicted criminal by one State to
another.
It is also defined as the process by which one State upon the request of another surrenders
to the latter a person found within its jurisdiction for trial and punishment or if he has been
already convicted only for punishment on account of a crime punishable by the laws of the
requesting State and committed outside the territory of the requested State.
Indian Legal Framework Regarding Extradition
In India, the extradition of a fugitive from India to a foreign country or vice-versa is governed
by the provisions of Indian Extradition Act, 1962.
Under section 3 of this Act, a notification could be issued by the Government of India
extending the provisions of the Act to the country/countries notified.
Mutual Legal Assistance Treaty

The basis of extradition could be a treaty between India and a foreign country i. e. Mutual
legal assistance treaty. An MLAT is an agreement between two or more countries for
gathering and exchanging information to enforce public or criminal laws. India has signed
MLAT with many countries.
As per the Allocation of Business Rules of the Government of India, the Ministry of Home
Affairs is the nodal Ministry and the Central authority for seeking and providing mutual legal

assistance in criminal law matters. The Ministry of Home Affairs (MHA) receives all such
requests, examines them and takes appropriate action. (Internal Security-II (IS-II) Division
handles this subject in the Ministry of Home Affairs.)
Between India and U.K. the MLAT has been signed in 1995.Recently Enforcement
Directorate of India has invoked the treaty for the extradition of Vijay Mallya in the alleged
bank loan fraud.
For India-UK Bilateral relations, refer section 5.2 in Part 7 (Nov 2017) of CA Magazine.
5.7. Nuclear Risk Reduction Agreement

India and Pakistan have extended the agreement signed in 2007 for reducing the risk of nuclear
weapons.
About The Agreement
As per the agreement, the two sides have committed to notifying each other immediately in
the event of any accident relating to nuclear weapons.
The two countries signed the agreement in Feb. 2007 to rule out risks related to nuclear
accidents. This is the second extension of the agreement originally signed in 2007. The
agreement is the only major nuclear-related pact signed by the two countries after the
Lahore Declaration of 1999. The agreement last extended in 2012 completed its term of five
years.
The agreement provides for immediate exchange of information between the two countries in
the event of an accident relating to nuclear weapons, under their respective jurisdiction and
control which can create the risk of radioactive fallout with adverse consequences for both
sides or can create the risk of an outbreak of a nuclear war.
The agreement is part of the nuclear confidence building measures that the two countries
have taken and have remained intact despite prevailing tension in the bilateral relationship.
Furthermore, India and Pakistan have been regularly exchanging lists of their nuclear
facilities under the 1988 Agreement on Prohibition of Attack against Nuclear Installations and
Facilities. Additionally, the two have an Agreement on Pre-Notification of Flight Testing of
Ballistic Missiles.

It (the extension of the accord) is aimed at promoting a stable environment of peace and
security between the two countries. It is premised on the recognition that the nuclear
dimension of the security environment of the two countries adds to their responsibility for
avoidance of conflict.
The extension of the agreement shows responsible nuclear behaviour by the two countries
though their bilateral relationship is in deep freeze and the peace dialogue continues to be
suspended.
It further shows that both Islamabad and New Delhi recognise nuclear dangers and are
willing to cooperate to reduce the risk of nuclear-related accidents and emergencies.

SUMMITS AND ORGANISATION
5.8. FATF Conference
The plenary conference has been organized by Financial Action Task Force from 18th to 24th
February in Paris.
The meeting involved delegations from the 198 jurisdictions of the FATF Global Network as
well as the UN, IMF, World Bank and other partners.
Key Issues Discussed

On the first day of the meeting, the FATF held a roundtable conference on FinTech and
RegTech (It refers to the technology designed for the financial institution to comply with the
complex regulations in the sector).
It was a first step to engage with various stakeholders. The event brought together anti-
money laundering/counter-terrorist financing (AML/CFT) professionals, national supervisors,
international organisations and other relevant experts including experts from banks which
have partnered with FinTech and RegTech firms to discuss issues of common interest.
During the plenary meet the counter terrorist financing was one of the important issues
discussed. The FATF adopted a consolidated strategy which builds on existing work and
reflects the latest developments on terrorist financing.
The FATF officials have reaffirmed to prevent the abuse of companies and trusts for
criminality and terrorism including through focussing on vulnerabilities linked to beneficial
ownership.
The successful example of Sweden and its effectiveness in tackling money laundering and
terrorist financing has been lauded and evaluated in detail so that other nations can replicate
the successful model to combat the malaise of money laundering and terrorist financing.
The FATF granted full membership to Malaysia at this Plenary. Malaysia underwent a
mutual evaluation that was adopted in 2015.
During the plenary, the FATF issued an updated Guidance for a Risk-Based Approach for
Money or Value Transfer Services (MVTS). MVTS providers (Banks and other financial
insitutions) play an important role in the international financial system in particular for the
migrant communities around the world.
FATF and India

In 2010, Indian became a full-fledged member of Financial Action Task Force (FATF), an
inter-governmental body responsible for setting global standards on anti-money laundering
(AML) and combating the financing of terrorism (CFT). Earlier India had become Observer at
FATF in the year 2006.
FATF membership is very important for India in its quest to become a major player in the
International finance. It helps India to build the capacity to fight terrorism and trace terrorist
money and to successfully investigate and prosecute money laundering and terrorist
financing offences.
The FATF process will also help us in co-ordination of AML/CFT efforts at the international
level.
For criminalizing terrorist financings, freezing terrorists assets and ensuring that financial
intelligence units are operationally independent must be consolidated for a sustainable and
consistent programme to fight money laundering and terrorist financing.
About FATF
The Financial Action Task Force (FATF) is an inter-governmental body established
in 1989 by the Ministers of its Member jurisdictions.
The objectives of the FATF are to set standards and promote effective
implementation of legal, regulatory and operational measures for combating
money laundering, terrorist financing and other related threats to the integrity of
the international financial system.
The FATF is a policy-making body which works to generate the necessary political
will to bring about national legislative and regulatory reforms in these areas.
The FATF monitors the progress of its members in implementing necessary
measures, reviews money laundering and terrorist financing techniques and
counter-measures and promotes the adoption and implementation of appropriate
measures globally.
The FATF's decision making body, the FATF Plenary, meets three times per year.
5.9. African Union Summit
The 28th session of African Union summit had been organized in Addis Ababa, Ehiopia to
reiterate the commitment for peace and security in the African continent.

The theme for the Summit was Harnessing the Demographic Dividend through Investments
in the Youth.
Highlights Of The Summit
The United Nations Secretary-General Antonio Guterres and Palestinian President

Mahmoud Abbas attended the summit and highlighted the opportunities present in the
continent for the development of the world.
The U.N. secretary reiterated the will of the UN to support the African people and
contribute fully to the peace missions in the continent. He expressed gratitude to African
countries for providing the majority of UN peacekeepers around the work, for being among
the worlds largest hosts of refugees and among some of the worlds fastest growing
economies.
During the AU Summit the leaders deliberated on a report to reform the AU. The idea to
reform the AU follows a decision made during the 12th AU summit held in Ethiopia in 2009
where it was agreed to set up a committee to look into the modalities of turning the AU
secretariat into an authority.
Another major issue for the leaders at the annual summit was the establishment of a
Continental Free Trade Area (CFTA) by 2017.
The summit was also expected to consider a request by Morocco to rejoin the AU.
Morocco withdrew from the OAU 32 years ago in protest at the continental bodys support for
the Polisario Front and its recognition of the Sahrawi Arab Democratic Republic as an
independent state. The admission of Morocco will bring the membership of the AU to 55.
The political situation in some hot spots in the continent including the Democratic Republic of
Congo was also discussed along with the other issues includes trade, food security and
climate change.
Issues of peace and security dominated many of the presentations by the African and visiting
Heads of State and Government. Many of the leaders condemned terrorism in very strong
terms. Various speakers at the summits opening ceremony expressed their commitment to
mainstreaming youths programs in all socio- economic activities.
About African Union
Founded in 2002, African Union is an international organization headquartered at Addis
Ababa and consists of 54 African member states.

In 1999, the Heads of State / Government of the OAU issued the Sirte Declaration calling
for establishing an African Union to accelerate the process of integration in the African
Continent.
The Lome Summit of 2000 adopted the Constitutive Act and the Lusaka Summit of 2001
drew the roadmap for implementation of the African Union.
The birth of the AU is a legacy of the Pan-African movement towards creating institutions to
achieve the objectives of peace, political stability, democracy, economic integration and
good governance.
The commission is responsible for the running and delivery of the AU agenda aimed at
advancing greater continental integration for a more prosperous Africa.
5.10. Amnesty International Report Released

The international human rights organization Amnesty International has released its annual
report. The Report 2016/17 documents the state of human rights in 159 countries and territories
during 2016.
Highlights Of The Report
The report The State of the Worlds Human Rights delivers the most comprehensive
analysis of the state of human rights around the world, covering 159 countries. The annual
report is an assessment of human rights rather than a critique of individual governments.
The report highlighted the consequences of us vs them rhetoric setting the agenda in
Europe, the United States and elsewhere is fuelling a global pushback against human rights
and leaving the global response to mass atrocities perilously weak.
The report cited Trump's temporarily suspended travel ban which blocks immigrants and visa
holders who are citizens of Iran, Iraq, Syria, Sudan, Libya, Yemen and Somalia.
The report highlighted hardline stance on refugees such as Hungarys migrant crisis
and Australia's system of offshore detention.
The report warns that a lack of human rights leadership on the world stage will see ongoing
crises worsen in 2017. It even goes so far as to suggest that the values laid out in the 1948
Universal Declaration of Human Rights adopted by the United Nations after World War II, are
in danger of dissolution.
Issues Raised In Report Regarding India

The report highlighted that the authorities used repressive laws to curb freedom of
expression and silence critics. Human rights defenders and organizations continued to face
harassment and intimidation and vigilante cow protection groups carried out several attacks.
There are various issues such as discrimination and violence faced by dalits, discriminatory
labour laws, and the marginalized communities continued to be frequently ignored in the
governments push for faster economic growth.
In the report the tensions between India and Pakistan intensified following an attack by
gunmen on an army base in Uri, Jammu and Kashmir were highlighted.
The report threw light upon the demonetization process which was intended as a crackdown
on the countrys black market severely affected the livelihoods of millions.
The report also raised the issue of armed groups in central India, northeastern states and
Jammu and Kashmir committed a range of human rights abuses. The CPI (Maoist) armed
group was suspected of extortion, abductions and unlawful killings including of local
government officials and suspected police informers in states such as Chhattisgarh,
Jharkhand, Odisha, Maharashtra, Bihar and Andhra Pradesh. .
According to statistics released, the report highlighted the increase in crimes against
children. In addition the report mentioned the new laws that came into force in January,
juvenile justice authorities ordered that children aged 16 to 18 be treated as adults in cases
of serious crimes.
The report highlighted the approach of development which is harming the tribal masses for
example the central government continued to acquire land using the Coal Bearing Areas Act
which allows for the acquisition of Adivasi land without consent.
Extrajudicial executions are also highlighted in the report. According to the data that former
Manipur state policeman told journalists that he had been involved in more than 100
extrajudicial executions in the state between 2002 and 2009.
The report raised concerns about the continued use of the Foreign Contribution (Regulation)
Act (FCRA) by restricting civil society organizations from receiving foreign funding to harass
NGOs.
The issue of LGBT and the Supreme Court judgment re-criminalizing Section 377 was also
highlighted in the report.
The report emphasized the increase in crimes against women and girls. According to
statistics of report over 327,000 crimes against women were registered in 2015. Women

from marginalized communities continued to face systemic discrimination and for them it is
harder to report sexual or other forms of violence.
About Amnesty International
Amnesty International was founded in London in 1961 following the publication of

the article "The Forgotten Prisoners" in The Observer on 28 May 1961by the
lawyer Peter Benenson.
Amnesty International is a non-governmental organisation focused on human

rights that claims to have over 7 million members and supporters around the world.
The objective of the organisation is to conduct research and generate action to
prevent and end grave abuses of human rights and to demand justice for those
whose rights have been violated.
Amnesty draws attention to human rights abuses and campaigns for compliance
with international laws and standards.
It works to mobilise public opinion to put pressure on governments that let abuse
take place. Amnesty considers capital punishment to be the ultimate, irreversible
denial of human rights.
The organisation was awarded the 1977 Nobel Peace Prize for its campaign
against torture and the United Nations Prize in the Field of Human Rights in 1978.
In the field of international human rights organisations, Amnesty has the second
longest history after the International Federation for Human Rights and broadest
name recognition and is believed by many to set standards for the movement as a
whole.
5.11. State Of Global Air 2017

The State of Global Air report 2017 released for the first time provides important information
on air quality and health for all countries around the globe.
It is based on the most recent data available (for 2015) to provide a comprehensive picture
of global air pollution and health levels and trends (since 1990).
The State of Global Air 2017 is the first of a new series of annual reports and accompanying
interactive website designed by Health Effects Institute in cooperation with the Institute of

Health Metrics and Evaluation (IHME) at the University of Washington and University of
British Columbia.
It is designed to provide one-stop information for data on air quality and its potential impact
on human health in regions, sub-regions and countries around the world.
Key Highlights Of The Report
The report highlighted the deplorable condition of environment, around 92 per cent of the
worlds population lives in areas with unhealthy air.
According to the data provided in the report globally there was 60 % rise in ozone
attributable deaths with a striking 67 per cent of this increase occurring in India.
In 2015 the report revealed that the long-term exposure to PM2.5 contributed to 4.2 million
deaths and to a loss of 103 million years of healthy life. China and India together accounted
for 52 per cent of the total global deaths attributable to PM2.5.
It found that increasing exposure for a growing and aging population have meant that India
can surpass China for among the highest air pollution health burdens in the world with both
countries facing some 1.1 million early deaths due to it in 2015.
Bangladesh and India have experienced the steepest rise in air pollution levels since
2010 and now have the highest PM2.5 concentrations among the countries according to the
report.
The report raised concerns about the alarming rise in the number of premature deaths
caused by the particulate matters in India. The rise in number deaths due to air pollution
increased up to 50% from 1990 to 2015.
Among the worlds 10 most populous countries and the EU, the biggest increase (14 per
cent to 25 per cent) in seasonal average population-weighted concentrations of ozone over
the last 25 years were experienced in China, India, Pakistan, Bangladesh, and Brazil.
According to the report Pakistan, Bangladesh and India had PM2.5 attributable Disability
Adjusted Life Years (DALYs) rates that were 5 to 10 times the lowest rates, which were
found in the US and Japan.

6. DEFENCE AND SECURITY
6.1. Budget Allocation In Defence Sector
The Indian Union Budget 2017-18 was announced on 1st February 2017 and the budgetary
allocation for defence sector has been increased by 5.6% than previous year.
Budgetary Provisions
In the defence sector, a sum of Rs 2, 71,114 crore including Rs 86,488 crore for capital
expenditure has been allocated for expenditure excluding pensions.
The establishment of a comprehensive web based interactive Pension Disbursement
System for Defence Pensioners has been announced. This system will receive pension
proposals and make payments centrally. This will reduce the grievances of defence
pensioners.
For the hassle free railway ticket booking, a centralized defense travel system has been
established through which tickets can be booked by the soldiers and officers so that the
soldiers dont have to stand in the lines of ticket booking.
In the budget 2017 allocation of Rs 3,000 crore for Optical Fiber Cable based network for
Defence Services has been provided.
Critical Analysis
Despite dire need for modernization and strengthening of the defence apparatus in country,
the increase in budgetary allocation was just 5.6 %. According to the revised estimate data
this would be one of the lowest increases in the recent past.
The allocation for 2017-18, excluding pensions is estimated to be 1.63 % of the GDP and
12.77 % of the total central government expenditure of Rs. 21,46,735 crore. If the outlay for
defence pensions is also taken into account, the total outlay would work out to 2.14 % of the
GDP much lower than the 3 % mark widely believed to be the bare minimum level of
allocation that must be made to meet the operational requirement of the armed forces.
Despite less allocation, the statistics shows that there is under-utilisation of existing
capital budget. This is also one of the biggest challenges.
There are no clear indications of a big push being given to Make-in-India in defence.
There is a very insignificant allocation under the budget head: Technology Development -
Assistance for prototype development under the Make procedure.

There are great expectations from the scheme for financing technology development from
the Defence Technology Fund recently announced by the ministry. However, it is not clear if
any corpus has been created for this fund or any allocation made for providing budgetary
support to technology development programmes.
There has always been a hand-to-mouth situation under the revenue segment of the budget
most of which is taken up by pay and other obligatory expenditure on ration and clothing, etc.
This impacts the allocation under budget heads which have a direct bearing on operational
preparedness.
The most important of the budget heads is the minor head Stores in respect of all the three
services and repairs and refits in respect of the Indian Navy. These budget heads cater for
expenditure on buying ammunition and other ordnance stores including spares, for carrying
out maintenance and repair of the in-service equipment. In the current budget armys
allocation under stores has come down and for the Indian Navy and Indian Air-force the BE
allocations for the current and coming fiscal under this head remain constant.
Last year the Standing Committee on Defence had recommended outcome-oriented
allocation for monitoring of expenditure on important acquisition schemes. There is no
indication of any movement towards achieving this goal.
It is quite evident that the coming year will see little movement on issues such as creation of
cyber, aero-space and integrated theatre commands or a spurt in research and development
activities all of which are critical for India to keep in step with the developments in its
neighbourhood and beyond. The budget which is not just all about figures but also a
statement of policy, contains no hint of any intention of the government to bring about a
paradigm shift in the defence policy.
Make In India and Defence Production
Unlike in the previous budget, the Union Budget has not provided any specific incentives to
push Make in India initiative in the defence sector, although some industry-wide proposals
have been promised.
Among others, the government has promised to reduce income tax from present 30 % to 25
% for MSMEs with an annual turnover of upto Rs. 50 crore. This is likely to benefit some
6000 MSMEs which are presently supplying parts, components and sub-systems to players
like DRDO, Defence Public Sector Undertakings, Ordinance factories and the large private
companies.

In the Union Budget, the FM extended the Infrastructure Status to the Affordable Housing
sector allowing the industry in that sector to avail certain tax-related benefits. Needless to
say Infrastructure Status is one of several demands long demanded by the defence
industry.
Within the defence budget, however, there has been a small allocation of Rs. 44.63 crore
made for prototype development under the Make procedures which have recently been
revised by the MoD. Of the total amount, Rs. 30.08 crore is earmarked for Army and the
balance Rs. 14.55 crore for the Air Force.
Way Forward
The meager increase of 5 % in the official defence budget is grossly inadequate especially in
view of the vast voids existing in military capability and the diminished and incremental effect
on modernisation and operational preparedness.
There is a need to augment resources substantially particularly under two critical heads of
the defence budget: stores and capital procurement, which have come under severe
pressure in the last several years with a huge negative consequence on Indias defence
preparedness.
From the MoDs perspective while the demand for higher allocations is a genuine one it must
also be fully geared up to utilise the available resources in a time-bound manner. There is
hardly any merit in asking for more resources while the present capacity to utilise the
available resources particularly those under the capital head is constrained.
The defence establishment must look inward and find lasting solutions to procurement
impediments.
At the same time, the MoD also needs to look at the current profile of the defence budget
and lose no opportunity for controlling manpower costs so as to allow other items of
expenditure to grow in a healthy manner.
6.2. INS Sarvekshak
The Indian navy is focusing on the utilization of solar energy in naval vessels. In this context the
naval survey vessel INS Sarvekshak has innovatively deployed the zero-maintenance solar
power system.
About INS Sarvekshak

INS Sarvekshakwas was commissioned in Navy in December 2001. It is built indigenously
by the Indian ship-building yards in Kolkata and Goa.
INS Sarvekshak is capable of generating 5.4 KW electricity by customising and installing
razor-thin, flexible solar panels on the canopy of its telescopic (retractable) helicopter deck.
This helps in replacing the traditional emergency diesel alternator which in turn helps in
reducing the diesel consumption and carbon emission.
The system is maintenance free whereas the diesel generator requires regular
maintenance.
The Southern Command has two of these survey ships based at Kochi. Besides carrying out
their primary role of hydrographic survey as allotted by the Chief Hydrographer, they also
assist in times of war and natural calamities.
6.3. Issue Of Defence Procurement

To integrate and streamline the complicated procedure of defence procurement, the
government is planning to set up a dedicated Defence Procurement Organisation.
The government appointed committee to provide a comprehensive plan for setting up of
Defence Procurement Organistaion has submitted its report.
About Defence Acquisition Council
On the recommendations made by the Group of Ministers on Reforming the National
Security System in February 2001, a dedicated structure for Defence Procurement has been
set up i.e. Defence Acquisition Council.
The organization has been established for better time cost management in the acquisition
process, build up institutional memory and help obtain better value for money.
The new arrangement would ensure closer participation by the Armed Forces in the entire
process of decision making leading to higher operational efficiency, better co-ordination and
flow of information.
The functions of DAC are:
o Give in principle approval to Capital acquisitions in the Long Term Perspective Plan
(LTPP) covering a 15-year time span at the beginning of a Five Year Plan period.
(The approval will, in particular, identify the Make projects in the Perspective Plan
where long gestation periods are involved).
o Give in principle acceptance of necessity to each Capital acquisition project for
incorporation in the forthcoming Five Year Plan, at least nine months before the
commencement of the first year of that plan. The approval will involve the
identification of Either - Buy Projects (outright purchase) Or - Buy and Make
projects (purchase followed by licensed production/ indigenous development) Or -
Make Projects (indigenous production and R&D).
o Monitor the progress of major projects on a feedback from the Defence Procurement
Board.
What Is The Need Of Defence Procurement Organisation
Autonomy
o DAC is currently spearheading the task of defence acquisition but it works under the
ministry of defence due to which its autonomy hampers.
o The autonomy through this organisation will bring in professionalization in the
process of acquisition and will bring down the time taken to complete defense
acquisitions.
Capacity Building Of Armed Forces: The sole intent of defence procurement is to provide
Armed forces with robust capability to enable them to protect the nations security and
advance national interests, both in the short and long terms.
Value For Money: Affordability and obtaining the best possible value for money by setting
aside a balanced defence budget and management thereof is extremely vital. The
organization specifically functioning in that aspect is beneficial for the better management of
budgetary allocation in accordance with the need of the defence system.
Overcoming Systematic Hurdles: To overcome problems of defence acquisition,
subsequent blacklisting of firms, delays, allegation of corruption and various systemic
hurdles an independent organization is needed.
The committee appointed by the government has recommended an independent
organization with legal, financial and technical experts under one roof.
Delays in defence acquisition creates impediment for the preparedness of the defence
system of country hence a dedicated organization is needed for the expeditious and effective
procedure of defence acquisition.
Q. Defense procurement in India needs a complete overhaul. Discuss.

6.4. Issues Of Shell Companies In India
The union government has set up an inter-ministerial task force to crack down several iilegally
operated shell companies and ponzi firms.
What Are Shell Companies
A shell company is an organisation without active business operations or significant assets.
These types of companies are not all necessarily illegal but they are sometimes used
illegitimately such as to disguise business ownership from law enforcement or the public.
Legitimate reasons for a shell corporation include such things as a startup using the
business entity as a vehicle to raise, funds, conduct a hostile takeover or to go public and the
function they do illegitimately includes money laundering, parking black money and dupe
gullible common masses in the pretext of providing financial saving instruments.
What Is The Issue
Many shell companies are indulged in parking black money, carryout illegal transactions and
sometimes act as facilitators of money laundering.
Often shell companies remain untraceable and happen to be the vehicle of choice for money
launderers, bribe givers and takers, tax evaders and financiers of terrorism.
Most of the shell companies are registered in tax havens like British Virgin Islands or
Cayman Islands. Tax havens are countries or territories where there is nil or low tax. In many
tax havens registration of a company is very simple without revealing anything about the
promoters etc. The shell incorporation business is a major activity in these tax havens.
The Financial Action Task Force (FATF), an inter-governmental body, provides a
coordinated framework to curb money laundering and gives guidelines in controlling shell
companies.
Why Task Force

A task force comprising members of various regulatory ministries and enforcement agencies
has been set up under revenue secretary HasmukhAdhia and corporate affairs secretary
Tapan Ray to monitor action taken against shell companies.
A task force monitors the professionals who aided in the creation and operation of such shell
companies that do not have any operations in India and engage in money laundering.

The coordinated crackdown comes after instances of massive money laundering were
identified by the government agencies after demonetization of Rs500 and Rs1,000 notes in a
drive against black money, tax evasion and terror finance.
After monitoring a small sample of these shell companies, it has been found that Rs1,238
crore has been deposited in the accounts of such entities in the November-December
period.
Further, 49 shell companies and other proprietorship concerns have been identified wherein
it was found that hundreds of beneficiaries laundered money amounting to Rs3,900 crore
with the help of 54 professionals including chartered accountants.
The Serious Fraud Investigation Office (SFIO) has filed for criminal prosecution of these
entities and initiated the process for winding them up. Hence a task force to coordinate with
other agency and to check these ill-practices has been established
Laws Regarding Shell Companies
a) Company Law
o The Companies Act 1956 is a comprehensive set of laws and regulations governing the
formation and operations of companies in India.
o The main objectives for which the company is formed are listed in the subclause. It
must be observed that an act which is either essential or incidental for the attainment of
the main objects of the company, is deemed to be valid.
o The other objects are mentioned in the sub-clause of Other objects and if a company
wishes to undertake a business included in this sub clause it has to either pass a
special resolution or pass an ordinary resolution and get central governments approval
for the same.
o This is the enabling provision which may lead to the formation of shell companies. The
sole business purpose of these companies is to consummate a merger with another
company. It does not intend to carry out any kind of business of its own.
o The shell company though itself is not illegal but when they indulged in illegitimate
practice in the pretext of their main objective they should be held as illegal entity.
b) Norms of Securities and Exchange Board of India

o The norms mandate for an issuer to make firm commitments to utilise their monetary
assets in its business or project and it has a track record of distributable profits in
terms of section 205 of the Companies Act, 1956.
o A Shell company obviously would not be able to satisfy the above norms. It would
neither have any net tangible assets nor an operating track record and as such it
would be difficult for it to issue capital.
c) Listing Norms: In order for a Shell company to function it needs to get listed on one of the
national stock exchanges, BSE or NSE. But instead they get registered themselves in the tax
havens.
d) The Benami Transactions (Prohibition) Amendment Act, 2016 gives the government
powers to confiscate benami assets those held in the name of another person or under a
fictitious name to avoid taxation and conceal unaccounted-for wealth.
About Serious Fraud Investigation Organisation (SFIO)

SFIO was set up under the Ministry of corporate Affairs through a resolution and
was later given formal legal status by the Companies Act, 2013.
It was set up on the basis of recommendations made by Naresh Chandra

Committee on Corporate Governance.
This office was set up to investigate corporate frauds of very serious and complex
nature.
SFIO is a multidisciplinary investigating agency wherein experts from (i) banking;
(ii) corporate affairs; (iii) taxation; (iv) forensic audit; (v) capital market; (vi)
information technology; (vii) law work together to unravel a corporate fraud.
The mandate of SFIO is limited to investigating frauds relating to a company under
the Companies Act and its investigation is considered separate from other normal
investigation into the affairs of the company.
Panama Leak:
The International Consortium of Investigative Journalists published online detailed

data from the Panama Papers trove on more than 200,000 secret offshore
companies.A huge leak of documents has lifted the lid on how the rich and
powerful use tax havens to hide their wealth.
The files were leaked from one of the world's most secretive companies a

Panamanian law firm called Mossack Fonseca.
International Consortium of Investigative Journalism

The International Consortium of Investigative Journalists is a global network
of more than 190 investigative journalists in more than 65 countries who
collaborate on in-depth investigative stories.
Founded in 1997 by the respected American journalist Chuck Lewis, ICIJ was
launched as a project of the Center for Public Integrity to extend the Centers style
of watchdog journalism, focusing on issues that do not stop at national
frontiers: cross-border crime, corruption, and the accountability of power.
Over the years, ICIJ have exposed smuggling by multinational tobacco
companies and by organized crime syndicates; investigated private military
cartels, asbestos companies, and climate change lobbyists; and broke new
ground by publicizing details of Iraq and Afghanistan war contracts.

7. SCIENCE AND TECHNOLOGY
7.1. Alcoholmeter
In News
A Delhi court has set aside six-day simple imprisonment of a man in a drunken driving case.
Court has raised doubts over the efficacy of the alcoholmeter and the ability of the police
officers to operate it
An alcoholmeter is a hydrometer that indicates the alcoholic strength of liquids.
Chemical Process Involved:

When the user exhales into a breath analyzer, any ethanol present in their breath
is oxidized to acetic acid at the anode:
CH3CH2OH(g) + H2O(l) CH3CO2H(l) + 4H+(aq) + 4e
At the cathode, atmospheric oxygen is reduced:
O2(g) + 4H+(aq) + 4e 2H2O(l)
The overall reaction is the oxidation of ethanol to acetic acid and water.
CH3CH2OH(l) + O2(g) CH3COOH(aq) + H2O(l)
The electric current produced by this reaction is measured by a microprocessor, and
displayed as an approximation of overall blood alcohol content by the Alcosensor.
Common Sources Of Errors

High levels sugar in the blood can lead to false positive results.

Silicon oxide sensors used in handheld breath analyzer need calibration at frequent
interval. Failing to do so results in error.
One major problem with older breath analyzers is non-specificity: the machines identify not
only the ethyl alcohol (or ethanol) found in alcoholic beverages but also other substances
similar in molecular structure or reactivity.
Substances in the environment can also lead to false BAC readings. For example, methyl
tert-butyl ether (MTBE), a common gasoline additive, has been alleged anecdotally to cause
false positives in persons exposed to it.
One of the most common causes of falsely high breath analyzer readings is the existence of
mouth alcohol. In analyzing a subject's breath sample, the breath analyzer's internal
computer is making the assumption that the alcohol in the breath sample came from alveolar
airthat is, air exhaled from deep within the lungs. However, alcohol may have come from
the mouth, throat or stomach for a number of reasons.
7.2. Laser Light To Speed Up Electronics

In News
Researcher from India has taken the first definitive step to produce high-speed electronic
devices that can operate one million times faster than modern electronics.
Researchers used laser light to generate very high frequency electric current inside a solid
material. The electrons were found to be moving at a speed (frequency) close to 1015 (one
million billion) hertz; the best achievable speed in modern transistors is only 109 (one billion)
hertz
How It Is Different From Conventional
Conventionally, the motion of electrons (conductivity) is achieved by applying voltage. But
researchers controlled the motion of electrons inside the solid material by using laser pulses.
Light waves are electromagnetic in nature and have very high oscillation frequency of
electric and magnetic fields. This ultra-high frequency of light waves can be used to drive
and control electron motion in semiconductors. Electronics, when driven by such light waves,
will be inherently faster than current state of electronics.
7.3. Blazars

NASA's Fermi Gamma-ray Space Telescope has identified the farthest gamma-ray
blazars, a type of galaxy whose intense emissions are powered by supersized black holes.
They are among the brightest objects in the universe thanks to emissions powered by
supersized black holes.
The most distant of the newly discovered blazars started to emit their light when the universe
was just 1.4 billion years old. Previously, the most distant blazars detected by Fermi emitted
their light when the universe was about 2.1 billion years old.
Blazars are similar to all active galaxies, acquiring energy from matter falling toward a central
supermassive black hole.
A small part of this infilling material becomes redirected into a pair of particle jets, which blast
outward in opposite directions at nearly the speed of light.
7.4. Acute Encephalopathy

Dr. Jacob John, a scientist and virologist, had investigated the mystery disease that proved fatal
for many 15-year old children in Muzaffarpur, Bihar. The scientist has now raised ethical issues
about the way the research has been published.
The Study
Study found evidence of a link between a fruit in Jamaica, the ackee (from the same family
as litchi) and a disease called acute encephalopathy in Jamaicans.
According to the research there is close clinical similarity between ackee poisioning and the
Muzaffarpur illness, where litchi consumption and skipping the evening meal could result in
very low blood glucose and acute encephalopathy, leading to seizures and coma, and death
in many cases.
This is particularly so in the case of young children as they have limited hepatic glycogen
reserves. Hypoglycin A and methylene cyclo propyl glycine (MCPG), which are naturally
present in litchi fruit, make the condition worse.
The toxins block enzymes involved in normal glucose metabolism and this results in an
inability to synthesis glucose leading to acutely low level of blood sugar.
The build-up of other metabolic by-products could also have an adverse effect
(encephalopathy) on the child. These two cause death in many children.

According to study, it was under-nourished children who were affected by the disease.
Children in poor rural families, typically of labourers working in litchi orchards were the ones
at risk.
In view of this study, the Government of Bihar has already introduced some interventions
such as asking parents to restrict litchi consumption by children, making sure no child goes
to bed without eating a meal, measuring blood glucose level and infusing 10% dextrose
immediately on admission to the hospital.
Encephalitis is the inflammation of the brain.
It is mostly caused by a microorganism (bacteria, virus or parasite).
In a few cases, the offending agent can be any toxic compound
7.5. Northwest Africa 7635

It is a 6.9-ounce (about 200gm) meteorite, discovered in Algeria in 2012, that has given
scientists unprecedented insight into volcanic activity on Mars.
The largest volcano in the solar system, Olympus Mons, is found on this planet.
By analysing the chemical composition, Northwest Africa 7635, scientists learnt that Mars
had a single volcano that continuously erupted for 2 billion years.
Martian volcanoes can grow to such enormous proportions because Mars, unlike Earth,
doesnt have plate tectonics that constantly shuffle the surface. So a volcano, like the one
that birthed NWA 7635, can plume the process by which hot magma from the earth
surfaces upward for billions of years.
7.6. Neurocalyx Calycinus

Neurocalyx Calycinus is a shrub endemic to South West India, found in evergreen forests.
This could offer scientists the key to new herbal formulations and modern drugs for the
treatment of cancer, wounds and burns.
The medicinal plant is used by the Cholanaickan tribe (one of the particularly vulnerable
groups) in Kerala to treat inflammations and wounds.
Animal trials have proved that the leaves of N.calycinus possess wound-healing properties
comparable to the standard drug Povidone/ Iodine in the early phase of inflammation.

The anti-inflammatory activity of the leaves was found comparable to the drug diclofenac
sodium.
The pre-clinical trials confirmed the therapeutic effects of N.calycinus against burn wounds
and pain, besides its immuno-enhancing, platelet augmentation, and anti-oxidant potential.
The presence of high Vitamin E content and potent cytoprotective activity in cell lines has
also enhanced the prospects of developing an anti-cancer drug.
Recently, our scientists have discovered a new and distinct species of banana plant which
attains a height of about 11 metres and has orange-coloured fruit pulp. In which part of India
has it been discovered? UPSC 2016
(a) Andaman Islands
(b) Anaimalai Forests
(c) Maikala Hills
(d) Tropical rain forests of northeast
Answer: a
7.7. Policy on Synthetic Biology

India, so far, has no policy on synthetic biology and recently India took few steps to evolve a
policy on synthetic biology.
Synthetic biology is an emerging science through which new life forms can potentially be
made in labs and existing life forms, such as bacteria and other microbes can be tweaked to
produce specific proteins or chemically useful products.
Synthetic biology holds promise for production of drugs, vaccines, fuel components and
other chemicals.
Microorganisms have also been constructed to act as sensors that can detect a toxin in vitro
(outside a living organism) or in vivo (inside a living organism).
7.8. Vasalgel : Contraceptive For Men

It is an injectable male contraceptive that blocks sperm flow with a gel. It has been
successful in monkey trials. Vasalgel provided effective birth control in rhesus monkey
groups for more than one year.
Vasalgel is a high molecular weight polymer that consists of styrene-alt-maleic acid (SMA)
dissolved in dimethyl sulfoxide and could be the first long-acting, non-hormonal, potentially
reversible male contraceptive to reach market.

The polymer forms a hydrogel after injection into the vas deferens, creating a blockage to the
passage of sperm.
Male contraceptive options have not changed in over a century, and are currently limited to
condoms and withdrawal (with high pregnancy rates), or vasectomy (meant to be
permanent)
7.9. Wolbachia
Wolbachia is a natural bacterium present in up to 60% of all the different species of
insects around us, including some mosquitoes.
Wolbachia is safe for humans, animals and the environment. It is a naturally occurring
bacterium already found in the environment in many insect species.
Research on it to control Dengue: It is not usually found in the Aedes
aegypti mosquito, the primary species responsible for transmitting human viruses such
as dengue, chikungunya, and Zika. For many years scientists, have been
studying Wolbachia, looking for ways to use it to potentially control the mosquitoes that
spread human diseases.
7.10. Ballistic Missile Defence programme

An indigenously developed interceptor missile successfully destroyed an incoming ballistic
missile in a direct hit. It demonstrated the capability of Indias Ballistic Missile Shield (BMD),
which is under development.
BMD Programme
The Ballistic Missile Defence programme aims to provide an effective missile shield against
incoming enemy ballistic and nuclear missiles.
A hostile missile needs to be intercepted at boost (launch) point, mid-course (flight through
space) or terminal phase (during atmospheric descent).
The BMD is being developed by the Defence Research and Development Organisation
(DRDO) as a two layered system to tackle incoming targets at endo and exo atmospheres.
The BMD is a fully automated system which comprises of:
o Overlapping network of early warning and tracking radars

o Reliable command and control posts
o Land and sea-based batteries of advanced interceptor missiles
Two tier system: The BMD system consists of:
o Prithvi Air Defence (PAD) missile: The PAD is for high altitude interception and
intercepts missiles at altitudes between 50km-80km.
o Advanced Air Defence (AAD) Missile: The AAD is a low altitude interception system
and the destroys the target at altitudes of 15km-30km.
7.11. Record Launch By ISRO
Indian Space Research Organisation (ISRO) scripted history on February 15, 2017 by
successfully launching a record 104 satellites using PSLV C 37, including India's earth
observation satellite, on a single rocket from the spaceport in Sriharikota.
This is the highest number of satellites ever launched in a single mission.
Of the total 104 satellites, three were Indian and remaining 101 belonged to international
customers.
Indias three satellites included earth-mapping Cartosat-2 satellite (main payload) and nano
satellites INS-1A and INS-1B.
Foreign Satellites: Of the 101 co-passenger satellites, 96 belong to US and remaining 5 from
Israel, Kazakhstan, Netherlands, Switzerland, United Arab Emirates, respectively.
This mission beat the previous record held by Russia, which in 2014 had catapulted 37
satellites in a single launch, using a modified inter-continental ballistic missile.
It also broke ISROs previous national record set in June 2016, after it had successfully
launched 20 satellites, including 13 from the US in single mission.
The data from its satellites can be used to measure agricultural yields, monitor natural
resources and help first responders during natural disasters.
Space Diplomacy Of India
Space diplomacy is the way of using cooperation in space technology as an instrument to
enhance diplomatic ties and to develop the geo strategic interests. It has the potential to
enhance Indias diplomatic relations with developed as well as developing countries.

Technological capabilities in outer space have long been used as an effective tool of foreign
policy. For instance, US used its LandSat satellites to share the data or Russia included an
Indian cosmonaut Rakesh Sharma in its manned space flight.
Broad Aims Of Cooperative Endeavours has been:

o Strengthening ties with the other nations.
o New scientific and technological development for domestic advancement and global
collaboration.
o Role in development of International policy / law regarding the space technologies.
o Assistance to other developing countries in the field of space technology.
Indias Cooperative Endeavour:

o International Cooperation is an important aspect of Indias space policy. India is a
party to UN Treaties in the field of exploration and Peaceful Uses of Outer Space
(Exception is the Moon Treaty, which was not ratified).
o India is actively supporting regional cooperative initiatives such as UN affiliated
Centre for Space Science and Technology Education for AP, APSRAF, space
applications and capacity building programs of ASEAN, SAARC, UN ESCAP etc.
o The development of SAARC (South Asia Association for Regional
Cooperation) regional satellite system is being spearheaded by the Indian space
agency; it is an excellent example of the Indian policy of strengthening relations with
the immediate neighbour. The SAARC satellite will be helpful to the South Asian
countries in Indias neighbourhood for fighting poverty and illiteracy, scientific
advancement and open up the opportunities for the youths of these countries.
o ISRO is also exploring the possibility of expanding the footprints of Indias home-
grown seven satellite navigation system, IRNSS (Indian Regional Navigation
Satellite System) the last and seventh satellite of which is due for launch soon ,to the
neighbouring countries.
o India has offered Bangladesh its expertise to build and launch its domestic satellites.
o With a view to project its soft power through the sharing of its space expertise, India
is looking at the possibility of setting up a ground station in Fiji that could ultimately
serve as a hub for sharing space expertise with the Pacific island nations.
o ISRO already operates ground stations in Mauritius, Brunei and Indonesia to help
track the Indian satellites launched from Satish Dhawan Space Centre(SDSC) in
Sriharikota island on Indias eastern coast.

o India has offered to share Indian space expertise with the countries in South East
region where China, Japan, Australia and USA are jockeying to acquire a strategic
edge.
o India is actively pursuing a proposal with ASEAN to establish a ground station in
Vietnam to receive, process and use data from Indian satellites for a variety of
applications including disaster management and support and also to provide training
in space science ,technology and applications.
o Various cooperative missions are Chandrayaan-1 mission with effective multi-lateral
cooperation, Megha-Tropiques and SARAL are Indo-French joint satellite missions.
o Cooperation among BRICS in the case of Brazil, cooperation potentials had been
identified in relation to space sciences, exchange of earth observation data, and
tracking assistance among others. Cooperative dialogues are in process namely
China and South Africa. Indias earth observation satellite data were received in
China through commercial channels.
o India also shares data with countries and is a part of international forums such as
United Nations Platform for Space-based Information for Disaster Management and
Emergency Response (UNSPIDER).
o India has launched satellites for countries that do not have space launch capabilities
as well as for countries like France, Canada and even USA who find Indian services
reliable as well as reasonable.
Thus India has taken excellent steps towards utilisation of space diplomacy and more can
achieved considering Indias capabilities for regional and global diplomacy
With China rapidly consolidating its position in many of the third world countries as a most
sought after high tech partner for making available space services and satellite systems on
highly affordable terms, India cannot afford to lag behind in taking its expertise in space
technology for the benefit of the third world countries.
Indian Space Research Organisation (ISRO) has created a record by pulling off more than
100 space missions including probes to the Moon and Mars. With such an impressive
credentials, India can reach out to the third world countries including its immediate
neighbours with its space expertise custom made to tackle the problems of poverty and
backwardness.
Q. Space diplomacy is the way of using cooperation in space technology as an

instrument to enhance diplomatic ties and to develop the geo strategic interests.
Critically analyse the above statement in the context of India.

7.12. Thubber
In a breakthrough for creating soft, stretchable machines and electronics, scientists have
developed a novel rubber material with high thermal conductivity and elasticity.
It is an electrically insulating composite, which exhibits an unprecedented combination of
metal-like thermal conductivity, elasticity similar to soft biological tissue, and can stretch over
six times its initial length.
Applications:
o Industries like athletic wear and sports medicine
o Advanced manufacturing, energy, and transportation

o In wearable computing and soft robotics, which require mechanical compliance and
stretchable functionality.
7.13. PfSPZ: New Potent Malaria Vaccine

A malaria vaccine that mimics a mosquito bite yielded encouraging results in human trials. The
positive results of the trial have raised hopes for thwarting a parasite that kills a child every two
minutes.
About The Vaccine
PfSPZ uses a live, immature form of the malaria parasite called sporozoite, to stimulate
an immune reaction in humans.
PfSPZ is being developed against the Plasmodium falciparum mosquito-borne parasite, by
far the deadliest type.
The developers of PfSPZ are aiming for efficiency of about 80-90% protection lasting for six
months to a year.
The ability to complete an immunisation regime in 10 days will facilitate the use of PfSPZ-
CVac in mass vaccination programmes to eliminate the malaria parasite and to prevent
malaria in travelers.
7.14. Project Loon For Predicting Weather Systems

The Project Loon team can now use machine learning to predict weather systems. By using
machine-learning algorithms, Google has found a way to predict weather with enough
accuracy to make it possible to hover balloons over a relatively small area for a long period
of time.
The advance means Google has much more control over where its balloons reach, making it
possible to focus on a specific region, rather than circumnavigating the globe.
About Project Loon

It is a network of balloons traveling at high altitude and designed to extend Internet
connectivity to people in rural and remote areas worldwide.
The balloons float in the stratosphere around 18-20 kilometers high.

This particular altitude has been chosen as by raising or lowering altitude, the balloons can
be caught in different weather streams, changing direction.
Google uses solar panel and wind to power electronic equipment in the balloon throughout
the day.
7.15. Why Earths Inner Core Doesnt Melt

Geologists estimate that the Earth's core is a sweltering 5,700 K (5,427 C, 9,800 F), putting
it about on par with the surface of the Sun and yet the inner core is a solid ball of iron. Why
it doesn't liquify is a bit of a mystery. They propounded a new theory, simulating how solid
iron can remain atomically stable under such extreme conditions.
Understanding this strange, unobservable feature of our planet depends on knowing the
atomic structure of these crystals something scientists have been trying to do for years.
On the edge of the inner core, pieces of crystals structure continuously melt and diffuse only
to be reinserted due to high pressure like shuffling deck of cards. This energy distribution
cycle keeps the crystal stable and the core solid.
Reason For Non-Melting Of Core
Like all metals, the atomic-scale crystal structures of iron change depending on the
temperature and pressure the metal is exposed to.
Atoms are packed into variations of cubic as well as hexagonal formations.
At room temperatures and normal atmospheric pressure, iron is in body-centred cubic (BCC)
phase, which is a crystal architecture with eight corner points and a centre point.
However, at extremely high pressure, the crystalline structures transform into 12-point
hexagonal forms, or a close packed (HCP) phase. So, at Earths core, where pressure is 3.5
million times higher than surface pressure and temperatures are some 6,000 degrees
higher scientists have proposed that the atomic architecture of iron must be hexagonal.
At low temperature, BCC is unstable and crystalline planes slide out of the ideal BCC
structure. But at high temperatures, the stabilisation of these structures begins much like a
card game with the shuffling of a deck.
In the extreme heat of the core, atoms no longer belonged to planes because of the high
amplitude of atomic motion. The sliding of these planes is a bit like shuffling a deck of cards.
Even though the cards are put in different positions, the deck is still a deck. Likewise, the
BCC iron retains its cubic structure
Such a shuffling lead to an enormous increase in the distribution of molecules and energy
which leads to increasing entropy, or the distribution of energy states. That, in turn, makes
the BCC stable.
7.16. High-Quality Graphene From Soybean

Scientists have used the humble soybean to make the worlds strongest material graphene
commercially more viable.
New Technology
Previously, graphene was grown in a highly-controlled environment with explosive
compressed gases, requiring long hours of operation at high temperatures and extensive
vacuum processing.
Scientists at Commonwealth Scientific and Industrial Research Organisation (CSIRO) in
Australia have developed a novel GraphAir technology which eliminates the need for such
a highly-controlled environment.
The technology grows graphene film in ambient air with a natural precursor, making its
production faster and simpler.
This ambient-air process for graphene fabrication is fast, simple, safe, potentially scalable,
and integration friendly.
7.17. Bharat QR

Government of India has launched Bharat QR, the worlds first interoperable payment
acceptance solution.
QR code or Quick Response code is a two-dimensional machine-readable code that is
made up of black and white squares. It is used to store URLs and other information about
the thing on which it is placed.
It might be used as a sticker on a product which contains the details of it or might be stuck
on a shop window which can contain account details about the specific merchant.
About Bharat QR
Bharat QR code aims at standardizing the QR code payment method through the country.
Payment networks such as MasterCard, American Express and Visa have collaborated with
National Payment Corporation of India (NPCI) to launch and promote the Bharat QR
payment method.
It is the easiest method of payment for users. Scanning the QR code through your mobile will
help in transferring money from one source to another.
Payments made through QR code will directly get transferred to the bank accounts unlike
other digital wallet where payments are received from e-mails.
Even though various banks and private companies already have this facility in their mobile
app, what makes the QR code different from others is that it is interoperable with all the
banks and it is not a closed-loop system.
Benefits of Bharat QR
It is ideal for small roadside merchants who find it tough to invest in point-of-sale terminals
for card payments.
It will allow the customers of any bank to use their smart phone app to make payment using
their debit card. For them, Bharat QR is an asset-light and cheap payment solution.
Also that the merchants will not face the problems with regard to limits on the amount of
money that they can accept every month through Bharat QR Code unlike Paytm, Freecharge
and Mobikwik.
The hassle of transferring money from wallet to bank account will be eliminated as well
further making it easier to accept digital money.
In case of Bharat QR Code, the transaction is completed with boosted security and the card
details remains under the control of the customer which is a great security advantage.
7.18. Biosimilar drugs
A biosimilar product is a biological product that is approved based on a showing that it is highly
similar to an already approved biological product, known as a reference product, and has no
clinically meaningful differences in terms of safety and effectiveness from the reference product.
How Are Biologic Products Different From Other Drugs?
There is difference between small-molecule drugs and biologics.

Small-molecule drugs are small and fairly simple in their structure. They are synthesized
from chemicals in a consistent process so that manufacturers can be sure that each pill has
the same effect every time. Thus, their generics are easier to manufacture and consistent.
Biologic drugs, on the other hand, are made by biologic product. They are made by a living
cell, typically an engineered bacterium or a yeast. That gives them the capacity to be
chemically much more complicated. Theyre bigger and heavier, and often less stable, so
they require special handling like refrigeration.
Difference Between Biosimilar And Generic Drugs
7.19. Fluorosis
A large population in Odishas Nuapada district suffering from crippled backbones on account of
consumption of high fluoride-laced water.
Why This Disease
Fluorosis is usually caused by a high level of fluoride in drinking water.

The earths crust has a high content of fluoride and so does the bore well water in endemic
areas which is often used as a source of water.
Regular intake of products manufactured with high-fluoride containing water may also cause
fluorosis.
Vegetables and foods grown in endemic areas may also be high in fluoride content.
Fluoride is also found in toothpaste and other dental products. These may be harmful to
people already exposed to high fluoride levels.
Socio-Economic Hazards of Fluorosis in India
Fluorosis adversely affects the economic productivity of the area.
Economic deprivation leads to hunger and malnutrition.

People from the non-contaminated zones do not wish to establish any marital relationship
with people in the contaminated pockets.

8. ECOLOGY AND ENVIRONMENT
8.1. World Wetlands Day
2nd February every year is observed as The World Wetland Day (WWD) to raise awareness
about the value of wetlands for humanity and the planet.
The Convention on Wetlands also called as Ramsar Convention was adopted on 2 February
1971 in the Iranian city of Ramsar.
2017 Theme: Wetlands for Disaster Risk Reduction.

It seeks to raise awareness and highlight the vital role of healthy wetlands in reducing the
impacts of extreme events such as floods, cyclones and drought on communities, and in
helping to build resilience.
Background
The first World Wetland Day was celebrated in year 1997. Since then it is observed every
year to spread awareness about Ramsar Convention in particular for conservation of
Wetlands.
The theme for the world wetland day 2016 was Wetlands for our Future Sustainable
Livelihoods.
Mangrove Forests for Disaster Risk Reduction
Mangrove forests along tropical coastlines and in salt water environments are an important
category of wetlands.
They are a critical component of marine ecosystems, as they serve as nursery grounds for
many aquatic species, including commercially important fish species.
Mangroves also serve as excellent buffer zones between coastal lands and ocean as they
reduce the impacts of storms and keep coastal erosion under control.
Mangrove forests also had reduced the impact of the 2004 Southeast Asian tsunami.
These rich mangroves ecosystems are threatened mostly by conversion into agriculture and
aquaculture (shrimp farms), urban and tourism development and rising sea levels.
8.2. NCR Pollution Crisis: SC Asks Centre And States To Prepare Comprehensive Plan
SC has slammed the Centre for not taking a decision to ban polluting fuels like furnace oil
and pet coke in NCR region.
It has directed the centre to sit with Delhi, Uttar Pradesh, Rajasthan, Haryana governments
to chalk out a comprehensive plan to tackle the pollution crisis.
As the pollution level in the national capital has reached alarming level, the Environment
Pollution Control and Prevention Authority (EPCA) has recommended to the Supreme Court
to implement a blanket ban on the polluting fuels.
EPCA is a Central Government constituted committee for the National Capital Region as per
the SC directions in 1998.
Delhi Pollution Control Committee had declared these fuels hazardous and unacceptable in
the capital way back in 1996.
Key Concerns
Since they are not banned outside Delhi border and are being increasingly used by
industries in NCR, they pose a grave danger to aggravate already alarming pollution level in
the city.
Main culprit: Quality of fuel played a critical role in quantum of pollution generated
especially sulphur level in furnace oil and pet coke was multiple times higher in comparison
of acceptable fuel.
8.3. BNHS Launches Climate Change Programme In Central Himalayas

About News
The Bombay Natural History Society (BNHS) has launched climate change programme
under which the first study funded by Oracle and facilitated by CAF-India, will assess the
status, distribution and conservation of pheasants and finches in the Central Himalayas.
The study will focus on their conservation in the context of climate change with the help of
community participation.
The major aim of this project is to assess the status of phasinidaes and fringillidaes;
particularly globally threatened species found in Himalayan region and evaluate their
distribution.
Long Term Objective: This long-term monitoring project also aims to assess the socio-
economic activities of local communities and involve them in conservation efforts and
sensitize the local forest department staff.
Why Himalayas
The Himalayas hold a rich natural heritage with diverse flora and fauna enhancing the
beauty of the region.
The Indian subcontinent is home to nearly 50 species of pheasants and 62 species of
finches, with several species listed in 'Globally Threatened' category by IUCN. Both these
groups are spread across the Himalayas.
Shrinking habitats combined with several biotic factors along with trapping and poaching
pressures in many areas have pushed several of them to near extinction.
Also Himalayan ecology is vulnerable to the threats of global warming and climate
change.Climate change can highly influence vertical and horizontal distribution of these
groups making boundaries of protected areas messy.
The species that can adapt will survive but habitat specialist and species sensitive to
temperature will suffer.
Importance of The Project
The project is part of a long-term programme of BNHS which intends to understand the
impact of climate change on biodiversity of the Himalayan region.
In order to conserve biodiversity, the local communities play a crucial role and hence their
involvement is important for the success of this project.
The project will contribute in making an inventory of pheasants and finches, documentation
of local specific conservation issues.
It will also help in designing local as well as species specific conservation action plan with
the community participation.
The conservation action plan of these sites is a first step towards the protection of the
ecosystem which benefits both biodiversity as well as the people in the system.
8.4. Climate Vulnerability Assessment In Tarai Arc Landscape

About the News
Recently the study was conducted to determine the impacts of climate change and to assess
vulnerability of socio-ecological systems in the Tarai Arc Landscape, Nepal (TAL).

The study is based on the three components of vulnerability defined by the
Intergovernmental Panel on Climate Change (IPCC): exposure, sensitivity, and adaptive
capacity.
Findings of The Study

Global climate change projections for Nepal and the Himalayas suggest significant changes
in temperature and precipitation, including increased monsoon (summer) precipitation and
more variable and highly unpredictable actual rainfall patterns.
The projections also suggest warmer winters and more frequent extreme weather events,
with extended droughts between periods of intense rain.
Impacts of Climate Change on the TAL region

More intense, highly erratic precipitation could cause severe floods resulting in habitat loss
and degradation, especially for key species that require active conservation.
The floods could displace people over large areas, causing losses of lives, livelihoods, and
property.
They could cause extensive damage to agricultural crops resulting in food insecurity and
destruction of infrastructure, with loss of social and economic connectivity.
The combination of increasing temperatures and periodic droughts could increase the
likelihood of more frequent forest fires and the spread of invasive species that cause
changes to habitat.
Measures Suggested
Identification and conservation of connectivity, translocation of key endangered species to
create founder populations.
Manage and maintain waterholes and wetlands as habitats for critical species, manage river
basins in the Churia with an ecosystem approach for its services.
Development of systems to monitor the impacts of climate change on species including

spread of invasive species.
Consideration of climate impact studies in design and construction of infrastructures is
emphasized.
Focus is also on institutional strengthening in the form of technical and institutional capacity
building, establishment of river basin level institutions and developing research, monitoring
and communication mechanisms.
8.5. Keralas Nilambur Teak To Get GI tag
About The News
Keralas Nilambur teak, famous all over the world for its superior timber quality and elegant
appearance, will be included to the list of Kerala produces with the Geographical Indication
(GI) tag.
Nilambur is renowned for the oldest teak plantation in the world. The place is also noted
for its settlements of primitive tribes called Cholai Naikars, the world's first Teak Museum,
vast rain forests, waterfalls and ancient kovilakoms - residences of maharajas.
IPR Cell of the Kerala Agricultural University (KAU) with the support of the Nilambur Teak
Heritage Society, the Kerala Forest Research Institute (KFRI) and the Department of Forests
have applied for GI tag for this purpose.
This superior and unique quality of teak was first identified by the Britishers from Keralas
Nilambur plantations and forests. Later, the region became the major supplier of quality teak
throughout the world. Nilambur was christened as the Mecca of Teak.
Due to its superior mechanical and physical properties as well as aesthetic appearance, the
teak was exported to England and other parts of the world. However, as the fame of
Nilambur teak increased, fake products with false tags also started flooding the wood and
furniture markets.
What is Geographical Indication (GI) tag?
GI tag is an insignia on products having a unique geographical origin and evolution over
centuries with regards to its special quality or reputation attributes.
The status to the products marks its authenticity and ensures that registered authorised
users are allowed to use the popular product name.
Benefits of GI Status
Legal protection to the products
Prevents unauthorised use of a GI tag products by others.
Helps consumers to get quality products of desired traits.

Promotes economic prosperity of producers of GI tag goods by enhancing their demand in
national and international markets.

Legal Authorities Associated With GI
It is covered as an element of intellectual property rights (IPRs) under the Paris Convention
for the Protection of Industrial Property.
At international level, GI is governed by World Trade Organisations (WTOs) Agreement on

Trade-Related Aspects of Intellectual Property Rights (TRIPS).
In India, GI registration is governed by the Geographical Indications of goods (Registration
and Protection) Act, 1999 which came into force in September 2003. Darjeeling tea was the
first product to be accorded with GI tag in India.
8.6. 181 Irrawaddy Dolphins Counted In Odisha Census

According to new census carried out by the Odisha State Forest and Environment
department in 2016, as many as 181 Irrawaddy dolphins have been sighted in the state.
This marks a significant drop from 2015 survey which had recorded 450 dolphins.
The 2016 dolphin census in Odisha reported Humpback dolphins (34), bottlenose dolphins
(31) and five pan tropical spotted dolphins.
Key Facts
Irrawaddy Dolphins are found in three places namely Chilka Lake, Bhadrak Wildlife
sanctuary and Bhitarkanika.
The Chilika Lake, the largest brackish water lagoon of the country, recorded a marginal drop
in the population of Irrawaddy dolphins from 144 in 2015 to 134 in 2016. About 55 dolphins
were sighted this year in Bhitarkanika, compared to 58 spotted in 2015. In the Bhadrak
Wildlife Sanctuary jurisdiction, only five Irrawaddy dolphins were sighted.
Humpback and Bottlenose dolphins are not distributed uniformly in the State. Sighting of
Dolphins depends on the weather conditions. Migration of dolphins also continuously takes
place in waters close to the coast.
About Irrawaddy Dolphin
Irrawaddy Dolphin is not a true river dolphin, but an oceanic dolphin that lives in brackish
water near coasts, river mouths and in estuaries in South and Southeast Asia.
It has established subpopulations in freshwater rivers, including the Ganges and the
Mekong, as well as the Irrawaddy River from which it takes its name.

Its habitat range extends from the Bay of Bengal to New Guinea and the Philippines.
They do not appear to venture off shore.
Protection Status: IUCN has classified it as Vulnerable in Red Data list
Threats:
o Deaths due to entanglement in fishing nets,
o developmental projects like construction of dams
o Tourism and diseases.

Conservation Efforts by World Wildlife Fund
o WWF teaches local communities about dolphin and environmental conservation
issues.
o It helps in developing community fishery management zones to help sustainably
manage fish and conserve dolphins.
o It also supports alternative livelihood development such as aquaculture, chicken
raising and home-gardens, to reduce fishing pressure and by catch of dolphins, as
well as alleviate poverty in riverside communities.
8.7. SC Directs Centre To Take Steps To Preserve Over 2 Lakh Wetlands

In a major direction to preserve ecologically crucial wetlands threatened by encroachment in
many parts of the country, the Supreme Court has directed the Centre to frame a policy to
protect wetlands by June 30.
The court's direction will cover over 2 lakh wetlands across India which were identified
through satellite imagery by ISRO and the Centre has been asked to draw up a phased plan
of action to conserve these water bodies.
What Are Wetlands
Wetlands are defined as areas of land either temporarily or permanently covered by water
with a depth varying from 3 to 6 meters.
In 2011 ISRO prepared a national wetlands atlas on the basis of satellite image According to
it total wetland area estimated is 15.26 Mha, which is around 4.63 per cent of the geographic
area of the country. Area under inland wetlands is 10.56 million hectare and area under
coastal wetlands is 4.14 Mha.

Importance of Wetlands
Wetlands are seen as effective carbon sinks to mitigate climate change and support a wide
variety of arial, land and aquatic wildlife and fauna.
Wetlands play a key role in the maintenance of hydrological cycle in storm and flood control,
water supply, providing food, fibre and raw materials.
They support lakhs of migratory birds from colder regions of the world in summers, apart
from mangroves that protect coastlines and filter pollutants.
Threats Faced By The Wetlands
With wetlands endangered by land grabbing activities, along with releasing lands for
commercial development,
Other threats include reclamation by draining and filling, besides pollution, and are exploited
for their natural resources, leading to the loss of biodiversity.
Largest and well-known lakes in India Wular in Kashmir (fresh water), Sambhar in
Rajasthan (salt) to Chilka in Orissa (brackish) are rapidly shrinking due to uncontrolled
development and illegal encroachment.
Pulicat Lake, Indias second largest lagoon bordering Andhra Pradesh and Tamil Nadu is
threatened by the Dugarajapatnam port project.
Government Measures
The Centre has formed a comprehensive scheme of National Plan for Conservation of
Aquatic Eco-systems (NPCA) for conservation and restoration of lakes and wetlands.
The ministry has so far identifies 115 wetlands and 63 lakes in 24 states and 2 union
territories for conservation and management under the scheme.
So far, since 1987-88 an amount of Rs 780 crore has been released for undertaking various
conservation activities.
The court has directed the government to notify all wetlands under Wetlands (Conservation
and Management) Rules so that they could be preserved.
National Wetlands Conservation Programme since 1985-86 that provided financial support
for the protection of 115 wetlands in different states.
India is a signatory to the Ramsar Convention (February 1982), an international treaty for the
conservation and sustainable use of wetlands.

8.8. Ban Disposal Of Micro-Plastic Into Sea, Fishermen Forum Urges Centre
About the issue
The National Fishermen Forum (NFF) has urged the central government to ban the disposal
of micro plastic into the sea.
Recent research shows the micro plastic and plastic nano-granules can damage the deep
sea organisms, rejecting the earlier view that plastic causes damage only to
the environment and ecology of shallow waters.
Why Ban Is Necessary
Fish resource fulfils the food demand of the people and protects the livelihood of the fishing
communities.
The organic material that is found in the top layers of the sea and that reach the sea bottom
is called marine snow. This marine snow becomes part of the food for the living organism
that live in the deep seas.
However the micro plastic granules and fibres can reach the bottom of the deep sea and
cause damage to the marine organisms in the deep sea.
Micro plastic fibres and micro beads are smaller than 5 mm in length. Micro particles of
polyester, nylon, acrylic acids enter the sea and get to the depth and consumed by the
marine organisms.
By dumping plastic waste into the sea, a great damage to the sea organisms is caused it.
Since the fishes contain micro plastic residues of the waste in their body, it would adversely
affect the human beings who consume it.
It would deprive humans of nutritious and sustainable food resources.
What India Can Do
United States of America and the United Kingdom have passed the laws to ban disposal of
micro plastic into the sea.
Similarly, Union Environment Ministry should take necessary steps to ban disposal of micro
plastic into the sea. Also the usage of micro plastic fibres in cosmetic and cleansing products
should be totally banned.
It is important to improve the waste disposal method using the latest scientific technology.

Benefits of these Measures
o Protection of marine Ecology and Biodiversity
o Protection of Livelihood of fishermen and nutrition security of coastal population
o Promotion of sustainable fisheries and fish based business ecosystem.
8.9. Safe Himalayas Project In Uttrakhand From April
Ministry of Environment, Forests and Climate change in collaboration of the United Nations
Development Programme (UNDP) and four states of Jammu and Kashmir, Himachal Pradesh,
Sikkim and Uttarakhand will launch 'safe Himalayas project from April.
Focus of the Project

Project will cover the area from Gangotri in the high Himalayas to Ascot near China border.
These are the areas (Gangotri National Park and Govind Vihar wildlife sanctuary) where the
high Himalayan snow leopard conservation project will also take place.
It will be implemented with focus on appropriate management of land and forests, along with
biodiversity conservation and of sustainable livelihood of local communities.
It will maintain the balance between the livelihood security and development.
It aims to bring the people of this remote region to the mainstream of development as well as
add to ensure their participation in conservation of the Himalayan region.
Components of the Project
Eco-tourism
Emphasis on cultivation of traditional herbs and medicines.
Animal Husbandry and forest development schemes
Horticulture especially better distribution of Apple species.
Promotion of eco friendly building structures
Social infrastructure like Health And education
8.10. A New Technology To Convert Waste To Energy Might Help India Deal With Its
Mounting Garbage Woes

About the Issue
Plastic pyrolysis, a technology by which plastic is broken down into smaller molecules of
pyrolysis oil and gas to generate energy, has a potential to turn the waste into energy.
It can prove to be an alternative to biogas plants and mass incinerators.

Plastic pyrolysis or tire pyrolysis is the process of converting waste plastic/tires into industrial
fuels like Pyrolysis Oil, Carbon Black and Hydrocarbon Gas.
Plastic and tire pyrolysis takes place in pyrolysis reactor. Pyrolysis reactor creates following
process conditions to carry out plastic or tire pyrolysis:
o Absence of oxygen
o Temperature of more than 370 Degree Celsius

o Agitation to accelerate heat exchange
In pyrolysis, the polymer waste is not burned but broken down into usable finished products
like Pyrolysis Oil, Hydrocarbon Gas and Carbon Black
Waste and Garbage Scenario in India
According to the Ministry of Environment and Forests (MoEF), India is the worlds third-
largest garbage generating country.
Worse, while just about 75% of municipal waste is collected, only 22% of this is processed
and treated.
The situation becomes alarming when one considers that by 2030, waste generation is
expected to more than double from the present 62 million tonnes.
Governments Earlier Approach And Its Limited Success
Biogas plants were used earlier but they require waste to be segregated at source into dry
and wet waste.
Since this does not happen in India, biogas plants have been a failure as far as proper use of
municipal waste is concerned.
In cased of mass incinerators, there are concerns with respect to their emissions, though
most waste management plants set up today are of this type.
New Approach of Government

To tackle this mounting problem, the government has made it mandatory for waste
processing facilities to be set up by all local bodies.
In case of towns with a population of a million or more, this has to be done within two years.
Government recently recognised pyrolysis plants as part of corporate social responsibility

(CSR) activity.
As per the rules for Municipal Solid Waste Management and Handling 2016 companies will
have to comply for adopting the scientific waste disposal techniques.
The clause regarding extended producer responsibility (EPR) means it is the responsibility of
any producer of packaged products to ensure sound environment management.
Consumer goods companies and waste paper recycling mills will have to be more
responsible towards disposal of plastic waste
8.11. National Biodiversity Congress 2017

The National Biodiversity Congress (NBC) 2017 was held in Thiruananthapuram, Kerala.
The event was hosted by the Kerala State Biodiversity Board.
NBC is one of the significant biodiversity mega events of the country.

It aims to identify practical, evidence-based case studies at the regional level to support the
plan of action.
The focal theme of 2017 NBC was Mainstreaming Biodiversity for Sustainable
Development with four sub-themes.
Fact File
The edition of the event comprised array of programmes including exhibition, conference,
capacity building workshops, and Childrens Biodiversity Congress.
National Biodiversity Conference, governed by a national advisory committee was also
held. Conference comprised of biodiversity conservation experts.
Congess focused on variety of key issues related to biodiversity conservation, sustainable
utilisation of resources and benefit sharing.
Congress supported promotion of science and technology and sustainable development to

conserve the biodiversity.

A Biodiversity Caravan, a vehicle featuring the various plant species and photographs of
the biodiversity including endangered animals and plants travelled around the schools and
colleges across the state.
Why Congress Is Important

There is a dire need to protect biodiversity through sustainable development. Its depletion
can lead to serious consequences of climate change.
It also attempts to bring out new approaches for an inclusive development considering that
participation and grassroots empowerment are key drivers of equitable and sustainable
development.
8.12. Tiny Natural Ponds Can Speed Up Global Warming

A recent study published in the journal Nature Climate Change has established that tiny natural
ponds pose an overlooked danger for speeding up global warming.
About Findings
In experiments designed to simulate moderate future warming, scientists in Britain found that
such ponds a metre across gradually lose the capacity to soak up one kind of
greenhouse gas and give off even more of another.
The ability of the ponds to absorb carbon dioxide gets reduced by almost half, while methane
release nearly doubles.
By contrast, in case of soil, warming initially stimulates CO2 output but then causes it to
taper off.
The new findings are important because small ponds play an outsized role in the planets
carbon cycle the balance between input and output of greenhouse gases.
Findings would help the Scientists working on the next major UN scientific report on climate
change, scheduled for 2020.
Amplification effect
The main source of man-made carbon pollution is the burning of fossil fuels, accounting for
more than 70% of global greenhouse gas emissions. The rest comes from deforestation, the
livestock industry, and agriculture.
Up to now, the Intergovernmental Panel on Climate Change [IPCC] models did not take into
account the amplification effects of warming on these aquatic ecosystems.
8.13. Issue Of Conservation Status To Kappatagudda Tiger Reserve
About The Issue
The State Board of Wildlife (SBW) of Karnataka has deferred the decision on declaring
Kappatagudda in Gadag district as a conservation reserve.
This has escalated ongoing tug-of-war between environmentalists who are seeking the tag
and the mining lobby opposing it.
Issue has become more intense after the board empowered Chief Minister Siddaramaiah to
take a final call.
About 17,872 hectares of the reserve forest in Kappatagudda was declared as a

conservation reserve in 2015.
But the notification was withdrawn in 2016 as it was not preceded by public consultations as
required by the law.
Arguments In Favour Of Declaring Kappatagudda As Tiger Reserve
According to environmentalists if the conservation status was not restored to Kappatagudda
there might be negative environmental impact.
Arsenic poisoning and the pollution of water bodies in the region act as a direct fallout of
Gold extraction and the imperatives of conservation in the dry belt respectively.
Most residents are dependent on cattle and sheep rearing or subsistence agriculture for a
living.
Arguments Against Declaring Kappatagudda As Tiger Reserve
Mining lobby has opposed it on the grounds that gold extraction would be hit.
Government has been reluctant to restore the conservation tag due to Gold mining in the
area.
It is also opposed on the grounds that Karnataka was the only State where the precious
mineral was found.
The government allowed setting up of 250 windmills to generate power but is now trying to
make a decision that will be detrimental to the villagers and ultimately to the forest.

8.14. India: A Prominent Hub For Turtle Trade
Key Findings
The recently-conducted study by researchers from Freeland India and Turtle Survival
Alliance has shown that a staggering 58,442 amphibians were smuggled over the period of
five years.
The study published in the journal Biological Conservation, finds that 14 species were being
commercially harvested compared to five in 1993, when a similar study was conducted.
During this time, an additional 30,000 live individuals were seized in the country, a majority
from the Gangetic plains.
Most of the seizures were in India, while the rest were from Bangladesh, Thailand and
China. Of the amphibians seized, the turtles were established as having come from India.
Despite the strengthening of smuggling network, India continues to bear the ignominy of
being the source of the illegal trade and export of tortoises and freshwater turtles (TFT).
Gangetic Plains A Red Zone
Within India, the Gangetic Plains accounted for 46% of all seizures, with Lucknow and
Kanpur being major hubs.
This was linked to tightening of the enforcement (including an active Special Task Force) in
Uttar Pradesh and the Gangetic belt.
There is a tradition of turtle poaching in this area given the diversity of TFT population along
the river.
Other Vulnerable Areas: Apart from the Ganga and its tributaries, TFTs have been
poached in rivers of the Western Ghats and, in smaller numbers, in the Eastern Ghats. The
cities of Mumbai, Chennai and Kolkata have seen large-scale seizures, mostly poached for
export.
Major Cause
Domestic consumption of turtle meat in West Bengal and Bangladesh acts as a major
reason.
Also the international export (pet trade) to south-east Asian countries and China bringing in
profits for smugglers is another cause.

Despite strict enforcement, the ease of transporting thousands of turtle hatchlings in bags
has led the trade to continue unhindered.
Conclusion
Turtles form an important part of the riverine system, acting as scavengers in cleaning up
water bodies and generally being indicators of river health. So. It has to be protected.
National Mission for Clean Ganga envisages breeding and release of turtles to clean
wetlands, even as poaching and trade continues across the Gangetic belt.
Enforcement of anti-poaching laws especially Wildlife Protection Act 1972 and fishing
regulations are a must.
Community outreach programme to spread mass awareness and providing alternate
livelihood programmes can also help.

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1.

1.2. National Deworming Day

Current Affairs For 2017- Part 10 (February 2016) Page 1

Soil-Transmitted Helminths (STHs):

1.3. Measles-Rubella Vaccination Campaign Launched

Current Affairs For 2017- Part 10 (February 2016) Page 2

Universal Immunization Programme

1.4. Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA)

Current Affairs For 2017- Part 10 (February 2016) Page 3

1.5. First-Of-Its-Kind Braille Atlas Launched

National Atlas and Thematic Mapping Organisation:

o To prepare atlases and thematic maps

o To promote the use of geospatial information and technology in

Current Affairs For 2017- Part 10 (February 2016) Page 5

1.6. National Productivity Day

National Productivity Council (NPC)

NPC is a National level autonomous organization under Department of Industrial

1.7. Indias First Floating Elementary School

Current Affairs For 2017- Part 10 (February 2016) Page 6

About Loktak Lake

1.8. India Joins UN Network To Halve Maternal, Newborn Deaths

Current Affairs For 2017- Part 10 (February 2016) Page 7

1.9. MoU Signed For Welfare Of Handicraft Artisans Belonging To SCs

Current Affairs For 2017- Part 10 (February 2016) Page 8

o Enhanced participation of Scheduled Caste artisans and their producer groups in

Current Affairs For 2017- Part 10 (February 2016) Page 9

Rashtriya Kishor Swasthya Karyakram (RKSK)

Current Affairs For 2017- Part 10 (February 2016) Page 10

o Reduce teenage pregnancies

3. Enhance mental health

5. Prevent substance misuse: Increase adolescents awareness of the adverse

1. Strategies/Interventions to achieve objectives can be broadly grouped as:

o Community based interventions

Current Affairs For 2017- Part 10 (February 2016) Page 11

1.11. International Mother Language Day (IMLD)

2017 Theme: Towards Sustainable Futures through Multilingual Education

1.12. Bet Dwarka Darshan Circuit In Gujarat To Be Developed Under HRIDAY

Ministry of Urban Development approved development of 6 km long Bet Dwarka Darshan

Current Affairs For 2017- Part 10 (February 2016) Page 12

Heritage City Development and Augmentation Yojana (HRIDAY) :

The Ministry of Urban Development, Government of India, launched the National

With a duration of 4 years (Completing in November, 2018), the Scheme is being

Current Affairs For 2017- Part 10 (February 2016) Page 13

Current Affairs For 2017- Part 10 (February 2016) Page 14

It can be used in the analysis of genetic diseases, genetic fingerprinting for

2.2. Union Budget Announced Reforms To Curb Political Funding In Elections

Current Affairs For 2017- Part 10 (February 2016) Page 15

Current Affairs For 2017- Part 10 (February 2016) Page 16

Current Affairs For 2017- Part 10 (February 2016) Page 17

Section 29C in The Representation of the People Act, 1951

Current Affairs For 2017- Part 10 (February 2016) Page 18

The governor of Nagaland P.B. Acharya accepted Zeliangs resignation.

It provides special provision saying Notwithstanding anything in this

Current Affairs For 2017- Part 10 (February 2016) Page 20

Current Affairs For 2017- Part 10 (February 2016) Page 21

2.5. SC Confirms Cancellations Of MBBS Admissions In Vyapam Scam

Current Affairs For 2017- Part 10 (February 2016) Page 22

2.6. A Constitution Bench To Hear Appeals In Delhi Govt.-LG Issue

2.7. Constitution Bench To Decide Petitions On Triple Talaq

Current Affairs For 2017- Part 10 (February 2016) Page 23

Article 13 (laws inconsistent with or in derogation of the fundamental rights)

2.8. SC Ordered 3 Internet Giants To Set Up Mechanism To Delete Sex Determination

PCPNDT(Prohibition of Sex Selection) Act of 2003

Current Affairs For 2017- Part 10 (February 2016) Page 25