Food Safety: New norms for labelling food

Part of: GS Prelims and Mains GS Paper II- Government interventions in key sectors

In News:

Food Safety and Standards Authority of India (FSSAI) has drafted following regulations –

All packaged food with at least 5% content from genetically engineered sources need to be labelled so.

Foods that exceed norms of sugar and fat will need to carry ‘red’ and ‘green’ labels specifying the extent
to which they do so.

Do you know?

Current laws, however, prohibit any GM food — unless cleared by the Genetic Engineering Appraisal
Committee, a Union Environment Ministry body — from being sold in India.

Through a 2007 notification, the Environment Ministry had exempted processed foods from this
requirement. This has been stayed by the courts.

There was also dispute between the FSSAI, a Union Health Ministry body, and the Environment Ministry
on who checks if a particular food had a GE provenance.

Important Value Additions:

FSSAI was already in news.

FSSAI launched ‘Project Dhoop’ in April 2018 – an initiative aimed at shifting the school assembly time to
noon to ensure maximum absorption of Vitamin D in students through natural sunlight.

About FSSAI

FSSAI is established under FSS Act, 2006

It is a statutory body for laying down science based standards for articles of food and regulating
manufacturing, processing, distribution, sale and import of food so as to ensure safe and wholesome
food for human consumption.

Ministry of Health & Family Welfare, Government of India is the Administrative Ministry for the
implementation of FSSAI.

Article link: New norms for labelling food planned

India gets $200 million loan for nutrition mission

Part of: GS Prelims and Mains GS Paper II- Government interventions in key sectors; Social issue and
Welfare Schemes

In News:

India and World Bank signs agreement for a $200 million loan for implementing National Nutrition
Mission.

Key pointers:

About National Nutrition Mission

Targeted mission - NNM targets to reduce stunting, under- nutrition, anemia (among young children,
women and adolescent girls) and reduce low birth weight by 2%, 2%, 3% and 2% per annum respectively.

It also strives to reduce the prevalence of stunting from the current level of 38.4% (as per the National
Family Health Survey 4) to 25% by 2022.

Aims at reaching 10 crore beneficiaries.

Beneficiaries are mainly children up to the age of six years, pregnant women and lactating mothers and
adolescent girls.

Will be implemented in three phases between 2017 and 2020 across all districts of the country.

Important Value Additions:

POSHAN Abhiyaan (National Nutrition Mission) is a flagship programme of the Ministry of Women and
Child Development (MWCD)

The National Nutrition Mission (NNM) has been set up with a three year budget of Rs.9046.17 crore
commencing from 2017-18.

Article link: India inks $200 mn. WB loan for nutrition mission - The Hindu

India and Serbia celebrating their 70th year of cooperation

Part of: GS Prelims and Mains Paper II – India and the world, International Relations

In news:

India and Serbia are celebrating their 70th year of cooperation.

India and Serbia should revive ties from the non-alignment era, as their relations are not as well
developed as in the past.

Important Value Additions:

India and Serbia (Successor State of former Yugoslavia) have traditionally enjoyed deep friendship as co-
founders of the Non-Aligned Movement.

India and Serbia:

Serbia has abolished visa requirements for Indians, unilaterally (along with visas for China, Turkey, Iran,
Indonesia and other countries we have historical ties with).

India-Serbia trade is very low at about $160 million.

Serbia is a bridge between the east and the west, is on the road to joining the European Union.

Serbia supports India in multilateral for a including India’s membership of NSG, permanent and non-
permanent membership of UNSC and Indian candidatures to various international organizations.

Serbian leadership has expressed solidarity with India in the fight against terrorism.

Map work:
Observe figure/map below and try to locate the following –

Serbia is a landlocked country.

Capital – Belgrade

Situated in Europe but not part of EU

Article link: NAM needs new cause, says Ivica Dacic, Serbian Deputy ... - The Hindu

Putin sworn in for fourth term

In News:

Vladimir Putin was sworn in as Russia’s President for a fourth term

The 65-year-old, in power since 1999, is on course to become the longest-serving Russian leader since
Joseph Stalin.

Important Value Additions:

Russian Constitution says -

The President of Russia is directly elected for a term of six years.

Any citizen of the Russian Federation not younger than 35 years of age and with a permanent residence
record in the Russian Federation of not less than 10 years may be elected President of the Russian
Federation.

One and the same person may not be elected President of the Russian Federation for more than two
terms running.

Now you may think – Article says 4th term, but in Russia, President may not be elected for more than
two terms running.
Answer: It is his second consecutive—and fourth overall—term as president.

Article link: Putin becomes President for 4th time, says improving economy will be priority in new six-
year term

Australia pledges $34 million to help save koala population

Part of: GS Prelims and Mains Paper III – Environment and Conservation of Biodiversity

In News:

The Australian Koala Foundation estimates that there may be as few as 43,000 koalas left in the wild.

Habitat loss, dog attacks, climate change & diseases have taken their toll on the animals.

Important Value Additions:

About Koalas

IUCN Status: Vulnerable

Endemic to Australia. Koalas are found in the eucalyptus forests of eastern Australia.

It is an arboreal herbivorous marsupial native to Australia.

Koalas typically inhabit open eucalypt woodlands, and the leaves of these trees make up most of their
diet. Because this eucalypt diet has limited nutritional and caloric content, koalas are largely sedentary
and sleep up to 20 hours a day.

Koalas get almost all their moisture from the leaves they eat, and rarely drink water.

Eucalyptus leaves are super tough and poisonous! Luckily for koalas, they have a long digestive organ
called a cecum which allows them to break down the leaves unharmed.

Article link: Australia pledges US$34-million to help save the koala

(MAINS FOCUS)

NATIONAL/WELFARE

TOPIC:

General Studies 2:

Government policies and interventions for development in various sectors and issues arising out of their
design and implementation.

Welfare schemes for vulnerable sections of the population by the Centre and States and the
performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection
and betterment of these vulnerable sections.

General Studies 3:

Infrastructure: Energy, Ports, Roads, Airports, Railways etc

Disaster and disaster management.

Rail Accidents: Need for amendments in Railways Act

In news:

The recent deaths of schoolchildren at an unmanned rail crossing highlight why the Railways Act must be
amended.

Flaw in compensation or claims procedure

In relation to claims for railway accidents, the Railways Act provides for fixed compensation on
predetermined scales.

It also provides a forum for passengers to make claims in the form of Railway Claims Tribunals situated in
different parts of India. But there is a limitation.

Only a passenger on a train can make a claim before the Tribunal.

Concern: Passengers of a bus or motor vehicle who may have been harmed after a collision with a train
can only approach the Motor Accidents Claims Tribunal.

Important case:

In Donoghue v. Stevenson (1932) case, SC held that - the duty of care for the Railways extends not only
to those who use the Railways’ services but also to people who are “neighbours” — namely, users of
vehicles on roads that intersect with tracks.

In other words, there is a common law liability for the railway administration for an accident at an
unmanned crossing, even in the absence of specific provisions in the Railways Act.

An action at common law can be filed against Railways because the Railways was involved in what are
recognised as dangerous operations and hence is bound to take care of road users.

Railways should take all precautions that will reduce danger to the minimum.

What does the Railways Act say?

The Railways Act 1989 (through Section 124) provides compensation on strict liability basis. This means
that “when an accident occurs in the course of working a railway” (a collision between trains, or when
one is a train carrying passengers, or derailment, or any other accident with a train or any part of a train
carrying passengers), then whether or not there has been any wrongful act, neglect or default on the
part of the railway administration, an injured passenger or one who has suffered a loss can lawfully
maintain an action and recover damages.

Way ahead:

It is time the government amends the Railways Act to provide for compensation on a proactive basis
without driving victims or their families to file applications in Tribunals or Courts.

It is also essential to include within Section 124 of the Railways Act a provision for a claim from a
“neighbour to a passenger” in the manner that the Supreme Court recognises, namely, a road user of a
motor vehicle.
Connecting the dots:

Safety standards and associated institutional framework in the railways need immediate attention.
Comment.

Railways is considered to be the lifeline of our country but the frequency of fatal accidents have only
increased in the recent past. What does it tell about Indian Railway’s ecosystem? Critically analyse.

NATIONAL

TOPIC:General Studies 2:

Government policies and interventions for development in various sectors and issues arising out of their
design and implementation.

Welfare schemes for vulnerable sections of the population by the Centre and States and the
performance of these schemes

Land administration in India and boosting farmers' income

Background:

Recently, over 30,000 farmers marched nearly 200 km to Mumbai to share their grievances with the
Maharashtra government. Only weeks ago, thousands of more farmers led a comparable demonstration
in Shimla. While loan waivers and better MSP (Minimum Support Price) were part of these agendas, land
remains the common agenda.

The agricultural sector dialogue focuses on supply chain efficiency or improving the quality of inputs like
seeds and fertilisers. Land is one key issue that often remains unfocussed.

Land and agriculture:

The land market in India inhibits agricultural productivity.

According to the 2010-11 Report on Agriculture Census, 85 per cent of India’s total operational land
holdings are less than 2 hectares in area. The yield from such small plots is barely enough to feed the
farmer’s family, leaving very little produce to sell in the market. Consolidation of land holdings can drive
higher efficiency and yields, but this requires a land market that allows people to buy or lease land.

Existing laws constrain formal land leasing. A 2013 NSSO report estimates 13 per cent of household lease
land, but other reports by NGOs suggest this could well be 50 per cent due to informal tenancy
arrangements.

Non-existence of accurate land records:

Issue: It makes difficult for farmers to access critical welfare schemes.

The government spends close to one per cent of GDP on fertiliser subsidies every year, while other huge
subsidies exist for seeds, pesticides, crop insurance, and farm loans. But, if underlying land records don’t
reflect the true names of owners, lessors, and cultivators or the correct size of the plots, the benefits
won’t reach the targeted beneficiaries. The reasons behind absence of accurate records are varied,
ranging from unregistered sale, inheritance, and tenancy, to decades-old official maps no longer
reflecting ground reality.

Way out:

We need to elevate the importance of efficient government systems for land administration to the
forefront of the agriculture sector conversation; however, it’s a complex subject.

Its systemic issues cannot be fixed with public policy alone and will require new thinking and
collaboration among multiple stakeholders, including governments, philanthropic institutions,
entrepreneurs, and civil society.

Integrating land records:

Philanthropic institutions and state governments should take a holistic view of the role of land and land
records. These large-scale programmes need to allocate part of the resources to help their target farmer
population obtain accurate land records.
Role of tech:

The availability of geospatial and mobile technology is revolutionising the way we update land records,
offering new and cheap ways to capture household and plot level information. Odisha is already setting
the example as the first State to use drones to capture information on about thousands of slum
households to provide title documents.

Entrepreneurial solutions:

Given the scale of the problem, there is a huge opportunity for millions of innovators and entrepreneurs
to step in and solve it.

Conclusion:

These above suggested solutions can create a more dynamic, proactive approach to land administration.
This is important as improving the system of land administration in the country will help boost farmers'
income.

Connecting the dots:

Poor land administration in India is one of the key issue affecting agricultural productivity as well as
farmers' income. Discuss.

MUST READ

Where the law needs to change track

Q.1) Consider the following statements with respect to Food Safety and Standards Authority of India
(FSSAI)

It is established under the Food Safety and Standards Act, 2006

Ministry of Consumer Affairs, Food and Public Distribution is administrative ministry for the
implementation of FSSAI
Which of the following statements is/are correct?

Only 1

Only 2

Both 1 and 2

None of the above

Q.2) Which of the following statements about National Nutrition Mission is/are true?

The programme through the targets will strive to reduce the level of stunting, under-nutrition, anemia
and low birth weight babies.

It aims at reaching 10 crore beneficiaries in three phases between 2017 and 2020 across all districts of
the country.

Beneficiaries of the programme include children upto the age of 12 years, pregnant women and lactating
mothers.

Choose the appropriate answer:

1 only

1 and 2 only

2 and 3 only

1, 2 and 3

Q.3) Which organization recently signed an agreement with India to provide a $200 million loan for
implementing National Nutrition Mission?

World Bank

World Health Organization

International Monetary Fund

Bill & Melinda Gates Foundation

Q.4) Which among the following countries does not border the Mediterranean sea?

France

Italy

Serbia

Syria

Q.5) Consider the below statements with reference to Koalas:

Koala bears are carnivoran mammals of the family Ursidae.

They are found on the continents of North America, Europe, and Australia.

They are considered to be vulnerable according to IUCN.

Which of the statements given above is/are correct?

1 only

3 only

2 and 3 only

1 and 3 only

Lingayats and demand for separate minority religion status : Important Topics for UPSC Exams

Lingayats and demand for separate minority religion status : Important Topics for UPSC Exams

News:

The Karnataka government has sent the proposal granting Lingayats separate religious minority status to
the central government for consideration.
Background information

Lingayats are numerically and politically strong community of Karnataka, want to be categorised as a
religious group separate from Hindus. Followers of the 12th century social reformer-philosopher-poet
Basaveshwara who defied the caste system and Vedic rituals, they argue that the premise of this
rebellion was rooted in opposition to the established Hindu order

Though Lingayats worship Shiva, they say the concept of ‘Ishta Linga’ (personal god) and rules of conduct
prescribed by Basaveshwara cannot be equated to the Hindu way of life.

Basaweswara: was a 12th-century Lingayat philosopher, statesman, Kannada poet in the Niraakaara
Shiva-focused Bhakti movement and a social reformer during the reign of the Kalachuri-dynasty king
Bijjala I in Karnataka, India.

Basavanna spread social awareness through his poetry, popularly known as Vachanaas

Basavanna rejected gender or social discrimination, superstitions and rituals such as the wearing of
sacred thread

He introduced new public institutions such as the Anubhava Mantapa (or, the "hall of spiritual
experience"),which welcomed men and women from all socio-economic backgrounds to discuss spiritual
and mundane questions of life, in open.

His movement is often called as Sharana Movement which had characteristics of Bhakti movement. A
poet and saint Akka Mahadevi was also associated with it.

Veerashaivism is a Shaivism subtradition within Lingayatism. According to tradition, it was transmitted by

five Pancharayas. Veerashaiva's are also called Veerashaiva Lingayats, and the terms Veerashaivism and
Lingayatism have been used synonymously, both by public and recognized by governments. Yet, the
identity or difference between Lingayatism and Veerashaivism is a point of contention.
What are the benefits of getting a minority tag?

There are various religious minorities in India namely Muslims, Christians, Sikhs, Parsis, Jains and
Buddhists. The constitution prescribes certain safeguards or rights to minorities although it does not
define the term minority.

Article 29(1) - Any section of the citizens residing in the territory of India or any part thereof having a
distinct language, script or culture of its own shall have the right to conserve the same

Article 29(2) - No citizen shall be denied admission into any educational institution maintained by the
State or receiving aid out of State funds on grounds only of religion, race, caste, language or any of them.

Article 30(1) - All minorities, whether based on religion or language, shall have the right to establish and
administer educational institutions of their choice.

In making any law providing for the compulsory acquisition of any property of an educational institution
established and administered by a minority, the State shall ensure that the amount fixed by or
determined under such law for the acquisition of such property is such as would not restrict or abrogate
the right guaranteed under that clause.

Article 30(2) - The state shall not, in granting aid to educational institutions, discriminate against any
educational institution on the ground that it is under the management of a minority, whether based on
religion or language.

The current issue explained

There are 2 issues involved - one the demand for separate religious identity has taken the form of a
specific demand for minority religion status. Two, the Lingayats argue that Veerashaivas, the followers of
Pancha Peethas, are not the same as them.

The ongoing agitation is fuelled by arguments by a faction of the Veerashaivas insisting that the roots of
the “entire community” lie within Hinduism and, hence, the demand for a separate religion is invalid
according to some factions.
The Karnataka government had constituted a committee headed by retired high court Judge H N
Nagamohan Das in December last year that submitted its report on March 2. It recommended providing
minority status to Lingayats and therefore the state government has sent the proposal to centre.

The demand for a separate religion tag to Veerashaiva/Lingayat faiths has surfaced from the numerically
strong and politically influential community, amid resentment from within over projecting the two
communities as the same.

Way forward:

The centre and state must examine the question rationally without politicizing the issue to gain poll
prospects.

MODEL QUESTIONS :

Prelims question

1.Refer the following statements about Basawanna

A. He was a 12th century social reformer.

B. His followers are called as Lingayats.

C. He helped in spreading the true knowledge of Vedas

Choose the correct answer

a. A and B only
b. A and C only

c. B and C only

d. All of the above

Correct Answer: a

2. Refer the following statements regarding minorities

A. The constitution does not define the term minority

B. The government cannot take away the lands acquired by minority institutions as per constitutional
safeguards.

C. Section 12(1)(c) of RTE act applies to the minority institutions.

Choose the correct answer

a. A only

b. A and C only

c. B and C only

d. none of the above

Correct Answer: a

Mains Questions

1. What do you know about Lingayatism ? How do they differ from the mainstream Hinduism in the
structure of beliefs. Explain with reference to the teachings of Batswana.

Lingayats and demand for separate minority religion status : Important Topics for UPSC Exams

Lingayats and demand for separate minority religion status : Important Topics for UPSC Exams

News:

The Karnataka government has sent the proposal granting Lingayats separate religious minority status to
the central government for consideration.

Background information

Lingayats are numerically and politically strong community of Karnataka, want to be categorised as a
religious group separate from Hindus. Followers of the 12th century social reformer-philosopher-poet
Basaveshwara who defied the caste system and Vedic rituals, they argue that the premise of this
rebellion was rooted in opposition to the established Hindu order

Though Lingayats worship Shiva, they say the concept of ‘Ishta Linga’ (personal god) and rules of conduct
prescribed by Basaveshwara cannot be equated to the Hindu way of life.

Basaweswara: was a 12th-century Lingayat philosopher, statesman, Kannada poet in the Niraakaara
Shiva-focused Bhakti movement and a social reformer during the reign of the Kalachuri-dynasty king
Bijjala I in Karnataka, India.
Basavanna spread social awareness through his poetry, popularly known as Vachanaas

Basavanna rejected gender or social discrimination, superstitions and rituals such as the wearing of
sacred thread

He introduced new public institutions such as the Anubhava Mantapa (or, the "hall of spiritual
experience"),which welcomed men and women from all socio-economic backgrounds to discuss spiritual
and mundane questions of life, in open.

His movement is often called as Sharana Movement which had characteristics of Bhakti movement. A
poet and saint Akka Mahadevi was also associated with it.

Veerashaivism is a Shaivism subtradition within Lingayatism. According to tradition, it was transmitted by

five Pancharayas. Veerashaiva's are also called Veerashaiva Lingayats, and the terms Veerashaivism and
Lingayatism have been used synonymously, both by public and recognized by governments. Yet, the
identity or difference between Lingayatism and Veerashaivism is a point of contention.

What are the benefits of getting a minority tag?

There are various religious minorities in India namely Muslims, Christians, Sikhs, Parsis, Jains and
Buddhists. The constitution prescribes certain safeguards or rights to minorities although it does not
define the term minority.

Article 29(1) - Any section of the citizens residing in the territory of India or any part thereof having a
distinct language, script or culture of its own shall have the right to conserve the same

Article 29(2) - No citizen shall be denied admission into any educational institution maintained by the
State or receiving aid out of State funds on grounds only of religion, race, caste, language or any of them.

Article 30(1) - All minorities, whether based on religion or language, shall have the right to establish and
administer educational institutions of their choice.
In making any law providing for the compulsory acquisition of any property of an educational institution
established and administered by a minority, the State shall ensure that the amount fixed by or
determined under such law for the acquisition of such property is such as would not restrict or abrogate
the right guaranteed under that clause.

Article 30(2) - The state shall not, in granting aid to educational institutions, discriminate against any
educational institution on the ground that it is under the management of a minority, whether based on
religion or language.

The current issue explained

There are 2 issues involved - one the demand for separate religious identity has taken the form of a
specific demand for minority religion status. Two, the Lingayats argue that Veerashaivas, the followers of
Pancha Peethas, are not the same as them.

The ongoing agitation is fuelled by arguments by a faction of the Veerashaivas insisting that the roots of
the “entire community” lie within Hinduism and, hence, the demand for a separate religion is invalid
according to some factions.

The Karnataka government had constituted a committee headed by retired high court Judge H N
Nagamohan Das in December last year that submitted its report on March 2. It recommended providing
minority status to Lingayats and therefore the state government has sent the proposal to centre.

The demand for a separate religion tag to Veerashaiva/Lingayat faiths has surfaced from the numerically
strong and politically influential community, amid resentment from within over projecting the two
communities as the same.

Way forward:

The centre and state must examine the question rationally without politicizing the issue to gain poll
prospects.
MODEL QUESTIONS :

Prelims question

1.Refer the following statements about Basawanna

A. He was a 12th century social reformer.

B. His followers are called as Lingayats.

C. He helped in spreading the true knowledge of Vedas

Choose the correct answer

a. A and B only

b. A and C only

c. B and C only

d. All of the above

Correct Answer: a

2. Refer the following statements regarding minorities

A. The constitution does not define the term minority

B. The government cannot take away the lands acquired by minority institutions as per constitutional
safeguards.

C. Section 12(1)(c) of RTE act applies to the minority institutions.

Choose the correct answer

a. A only

b. A and C only

c. B and C only

d. none of the above

Correct Answer: a

Limits of the Right to Religious Freedom - Nanak Shah Case : Important Topics for UPSC Exams

Limits of the Right to Religious Freedom - Nanak Shah Case : Important Topics for UPSC Exams

News:

The Supreme Court on Monday refused to stop screening of the national award winning movie Nanak
Shah Fakir, prima facie rejecting a plea by the Shiromani Gurdwara Parbandhak Committee (SGPC) that a
movie on Guru Nanak was violative of the community’s right to worship and was against a religious edict
that no human being would ever portray any of the gurus or their families.
Constitutional provisions regarding Right to religious freedom and non discrimination on the basis of
religion

Equality & Non-Discrimination: emphasize complete legal equality of its citizens irrespective of their
religion and creed and prohibit any kind of religion-based discrimination between them.

Article 14 - The State shall not deny to any person equality before the law or equal protection of the
laws.

Article 15- The State shall not discriminate against any citizen on grounds only of religion, race, caste,
sex, place of birth, or any of them

Article 16- There shall be equality of opportunity for all citizens in the matter of employment or
appointments under the State and no citizen shall, on grounds only of religion be ineligible for, or
discriminated against, in respect of any employment or office under the State.

Article 17- The traditional religious concept of 'untouchability' stands abolished find its practice in any
form IN .strictly forbidden.

Article 23(2)- If the State imposes compulsory service on citizens for public purposes no discrimination
shall be made in this regard on the ground of religion only

Article 25(1)- All persons are equally entitled to freedom of conscience and the right freely to profess,
practise and propagate religion.
Article 26- Every religious denomination or any section thereof has the right to manage its religious
affairs; establish and maintain institutions for religious and charitable purposes; and own, acquire and
administer properties of all kinds

Article 27- There shall be freedom as to payment of taxes for promotion of any particular religion by
virtue of which no person shall be compelled to pay any taxes the proceeds of which are specifically
appropriated in payment of expenses for the promotion or maintenance of any particular religious
denomination.

Article 28- No religious instruction is to be provided in the schools wholly maintained by State funding;
and those attending any State recognized or State-aided school cannot be required to take part in any
religious instruction or services without their (or if they are minor their guardian's) consent.

Article 29 - Any section of the citizens having a distinct language, script or culture of its own shall have
the right to conserve the same.

Article 30 - Religious and linguistic minorities are free to establish and administer educational institutions
of their choice, which shall not be discriminated against by the State in the matter of giving aid or
compensation in the event of acquisition.

Sugarcane Sector Woes and Rangarajan committee : Important Topics for UPSC Exams

Sugarcane Sector Woes and Rangarajan committee : Important Topics for UPSC Exams

News:

The sugar industry is reiterating its demand to the Centre for production subsidy to sustain sugarcane
payments to farmers and to support exports
What are the problems in Sugarcane sector?

Low yield of sugarcane

Short crushing season

Low rate of recovery

High cost of production

Improper utilization of byproducts like bagassee and molasses

Small size of mills and obsolete machinery

Levy Sugar : Sugar mills are required to surrender a proportion of production at the prices lower than
that of market price

Government restrictions: APMC’s which mandate that the growers can only sell the produce to the
designated nearest Mandi

Cane pricing issue: Centre announces FRP- fair and remunerative price, states can also intervene
through state administered price

Trade policy for sugar is often meddled with and government frequently places import and export
restrictions to manage prices.

Present issue of low prices and accumulation of sugarcane price arrears

Differences in North and peninsular region

Peninsular region records higher yield per unt area as compared to northern areas.

Sucrose content in south is higher

Crushing season in south is longer

Mills in south are equipped with better machinery

What does the government usually do to avoid the crises

Trade restrictions:

Raising import duty

Reduction in export duties

Export of sugar

But these moves do not deliver the intended results as they donot address the structural issues in the
sector as suggested bby Rangarajan Committee.

Rangarajan committee recommendations

Export and import policy, it said, should not be guided by domestic availability.

The committee suggested the removal of the concept of a minimum distance of 15 km between any two
sugar mills, obligating a mill to buy cane from growers within the reservation area. Instead, mills must
enter into contracts with farmers. This would help to phase out the cane reservation area and bonding.

It said the State Administered Price (SAP) of sugar cane set by the States should be done away with, in
favour of the Fair and Remunerative Price (FRP) set by the Centre as the minimum
Mills must share 70 per cent of the value of sugar and each by-product, including bagasse, molasses and
press-mud (ex-mill), as cane dues payable to farmers for supplies

Committee said the system of levy sugar should be done away with. Under it, the mills are required to
sell 10 per cent of their production to the government at below market price for the poor under the
TPDS. Instead, the panel said, the States that wanted to provide sugar under the TPDS might procure
from the open market through competitive bidding, and also fix the issue price.

It also asked the government to rationalize the current issue price for TPDS sugar, which has not been
revised for many years.

Committee said the prices of by-products should be market-determined with no earmarked end-use
allocations.

Way forward

Bhargav formula should be adopted

The rest of the recommendations of Rangarajan panel for complete deregulation of sugar sector are
forward looking and hence must be accepted win consultation with farmer producer organizations and
representatives.

Sugar development fund can be created.

MODEL QUESTIONS :

Prelims question

1. Consider the following statements

A. Fair and remunerative price in case of sugarcane is approved by cabinet committee on economic
affairs

B. Bagasse is one of the by product of Sugarcane processing industry.

C. Government mandates 5% ethanol blending in petrol

Which of the above statement/s are correct?

A and B

B and C

A and C

All of the above

Correct answer: 3

Mains Questions

1. The sugar industry has long been under stress and the reforms to put it back on track have not been
sufficient to device a long lasting solution. Critically analyse the statement and suggest the measures to
address of cane industry

Fifteenth Finance Commission : Important Topics for UPSC Exams

Fifteenth Finance Commission : Important Topics for UPSC Exams

News:

The 15th Finance Commission was constituted on November 27, 2017 and is headed by former Revenue
Secretary and former Rajya Sabha MP N.K. Singh. The terms of reference (ToR) of the Fifteenth Finance
Commission have raised some questions

Background Information

1. The Finance Commission is a constitutional body created by the President of India under Article 280 of
the Constitution of India

2. It is touted as balancing wheel of fiscal federalism in India.

3. The provision of setting up Finance commission in the constitution was an original one and was not
borrowed.

4. Article 280 of the constitution lays down following provisions with respect to finance commission

(a) The President shall, within two years from the commencement of this Constitution and thereafter at
the expiration of every fifth year or at such earlier time as the President considers necessary, by order
constitute a Finance Commission which shall consist of a Chairman and four other members to be
appointed by the President

(b) It shall be the duty of the Commission to make recommendations to the President as to

the distribution between the Union and the States of the net proceeds of taxes which are to be, or may
be, divided between them and the allocation between the States of the respective shares of such
proceeds

The principles which should govern the grants in aid of the revenues of the States out of the
Consolidated Fund of India.
The measures needed to augment the Consolidated Fund of a State to supplement the resources of the
Panchayats and municipalities in the State on the basis of the recommendations made by the Finance
Commission of the State

Any other matter referred to the Commission by the President in the interests of sound finance

The Commission shall determine their procedure and shall have such powers in the performance of their
functions as Parliament may by law confer on them

5. The recommendations made by the Finance Commission are advisory in nature and, hence, not
binding on the Government

6. Finance commission (miscellaneous provisions) act 1951 was passed to give a structured format to the
finance commission. It lays down qualifications of the members of commission, terms, eligibility and
powers.

The Chairman of a finance commission is selected from people with experience of public affairs

The other four members are selected from people who:

Are, or have been, or are qualified, as judges of a high court,

Have knowledge of government finances or accounts, or

Have had experience in administration and financial expertise; or

Have special knowledge of economics.

7. The commission has all powers of a civil court as per the Civil Procedure Code

Terms of reference of Fifteenth Finance commission and recent controversy

1. Commission shall use the population data of 2011 while making its recommendations :

For the purpose of all the areas where population is taken into account as per constitution 1971 census
was being followed up till now.
1971 Census figures showed a dramatic increase in population, after which the concept of family
planning was introduced at the policy level, according to research. This meant that States that complied
with policy would lose out on all the areas where population was taken into account. Hence, the 42nd
Amendment picked the 1971 Census as the base for all calculations and froze it till the 2001 Census. The
84th Amendment further extended that to the first Census after 2026, which will be the Census of 2031.

While States like Uttar Pradesh, Maharashtra and Bihar have more than doubled their numbers in the
intervening years, southern states like Tamil Nadu, Karnataka and Kerala have relatively slower growths.

The argument which was valid for freezing the population survey for the matter of seats in lok sabha and
legislative assembly hold good for the terms of reference of finance commission too. This means States
that have done relatively better to control population growth could see their allocations, as a fraction of
the total resources, reduced.

2. Examine whether revenue deficit grants be provided at all: If the Commission takes this suggestion
seriously, it will have serious ramifications for States with genuinely large resource gaps.

3. The commission has also been asked to review the recommendations of the previous Commission on
the grounds that it gave “substantially enhanced devolution

Nudging the Commission to leave larger fiscal space for implementing national development
programmes under New India 2022 is to ask it to leave more funds for making further intrusions into
State subjects. The ToR seek to reduce the role of Article 275, which is a legitimate channel for grants,
and asks the Commission to leave it more fiscal space to expand grants under Article 282, which is
questionable.

4. Commission to take into account the performances in implementation of various Central schemes :
This is also contentious : The Seventh Schedule of the Constitution assigns the respective functions in
terms of Union, State and Concurrent subjects. It is ironical that the Union government has been
intruding into State subjects through Central schemes by forcibly using fiscal space. Performances must
be built into the implementation of schemes and not into the tax devolution formula. It must be noted
that devolution of taxes to States is not a charity; it is their right.
Counter Arguments:

The 14th Finance Commission had also given a 10% weightage for the 2011 Census in its calculations and
there was no discernible impact on allocations to the more populous States such as Uttar Pradesh and
Bihar.

There are other States whose share of India’s total population has declined between 1971 and 2011,
including West Bengal, Goa, Himachal Pradesh and Punjab.

It is misleading for State governments to assume that all positive changes in demographics are a result of
their own actions or policies

NOTE:

According to the Constitution, there are four areas in which population is used as a factor

Manner of Election of President (Article 55),

Composition of the House of the People (Article 81),

Composition of the Legislative Assemblies (Article 170) and

Reservation of seats for Scheduled Castes and Scheduled Tribes in the Legislative Assemblies of the
States (Article 330).

MODEL QUESTIONS

Prelims Questions

1.Refer the following statements about Finance commission

A. The constitution prescribes the qualification of the members of Finance commission.

B. The recommendations of the finance commission are binding on the government.

Choose the correct answer

(a) A only

(b) B only

(c) A and B

(d) None of the above

Correct Answer: d

2.Refer the following statements about Finance commission

A. The Chairman of a finance commission is selected from people with experience of public affairs.

B. Finance commission is a 6 member body.

C. It is also required to make recommendations regarding augmenting the consolidated fund of the
states to augment the resources of local bodies.

Choose the correct answer

(a) A and B only

(b) A and C only

(c) B and C only

(d) All of the above

Correct Answer: b

Mains Questions

1. The fifteenth finance commission was recently constituted. Critically examine the terms of reference
of commission.

2. The finance commission is called as balancing wheel of fiscal federalism in India. Justify the statement.
Do you think the terms of reference of fifteenth finance commission are in consonance with the
mandate of commission as envisaged by constitution.

Banking Finance

Q. Which one of the following events is not correctly matched with the year in which it happened? (CDS-
2018-i)

Inauguration of the SWIFT system of electronic interbank fund transfer worldwide-1985

Conclusion of Uruguay Round of GATT-1994

Inauguration of the World Trade Organization-1995

Establishment of the first wholly electronic stock exchange (Nasdaq) — 1971

HINT: SWIFT was in news during Jan-2018 due to PNB-NIRAV-MODI scam. And UPSC asked this in CDS
conducted in Feb-2018, which shows that examiner is regularly updating the question bank. [SWIFT or
NASDAQ inauguration is not otherwise “grand” theory topics, that he’d have asked had this scam not
happened. इसललए भलल यल लथयरर कक पपरशन हह लल लकन पपछक तत करर ट-अफलसर कल ककरण हर हह .] Anyways, SWIFT was
designed by Society for worldwide Interbank financial telecommunication in 1973 so first statement is
wrong. To know more about SWIFT messaging system, read my article here.

Q. Which one of the following statements about Exchange-Traded Fund (ETF) is not correct? (CDS-2018-i)
It is a marketable security.

It experiences price changes throughout the day.

It typically has lower daily liquidity and higher fees than mutual fund shares.

An ETF does not have its net asset value calculated once at the end of every day.

HINT: ETF have lower fees than MF. For more, watch my lecture on financial instruments.

Q. Which one of the following is the maximum age of joining National Pension System (NPS) under the
NPS-Private Sector? (CDS-2018-i)

55 years

60 years

65 years

70 years

HINT: National Pension System (NPS) was introduced. It has been made mandatory for all new recruits to
the Government (except armed forces) with effect from January 1, 2004 and has also been rolled out for
all citizens with effect from May 1, 2009 on a voluntary basis. Subscribers (any Indian citizen) in the age
group of 18 to 55 can join NPS and contribute till the age of 60. (Ref: India Yearbook 2018). BUT, on 1st
November 2017, PFRDA made some changes: Now, any Indian Citizen, resident or non-resident, upto
maximum 65 years, can also join NPS and continue up to the age of 70 years in NPS.

Q. The Reserve Bank of India has recently constituted a high-level task force on Public Credit Registry
(PCR) to suggest a road map for developing a transparent, comprehensive and near-real-time PCR for
India. The task force is headed by (CDS-2018-i)

Sekar Karnam

Vishakha Mulye

Sriram Kalyanaraman

Y. M. Deosthalee

HINT: Y. M. Deosthalee. For more on what is PCR, read my article on Contemporary Loan Issues.
Q. Which of the following statements about the India Post Payments Bank (IPPB) is/are correct? (CDS-
2018-i)

It has been incorporated as a Public Limited Company.

It started its operation by establishing two pilot branches at Hyderabad and Varanasi.

Select the correct answer using the code given below.

1 only

2 only

Both 1 and 2

Neither 1 nor 2

HINT: As per India Yearbook 2018, India Post Payments Bank (IPPB) was incorporated as a Public Limited
Company in 2016. In January 2017, IPPB launched two branches in Raipur and Ranchi.

Schemes

Q. Correct statement(s) about Saubhagya Yojana objectives and features?

Compulsory electrification of all households in rural areas.

Completion deadline is 2nd October, 2019- the 150th birth anniversary of Gandhi.

Rural Electrification Corporation Limited (REC) under the Rural Development Ministry will implement this
scheme.

Answer Codes:

Only 1 and 2

Only 2

Only 1 and 3
None of them

HINT: Pradhan Mantri Sahaj Bijli Har Ghar Yojana “Saubhagya” launched on 25th September 2017 (DD’s
b’day), aims for electrification of all willing households in the rural and urban areas by 31/12/2018 using
REC under Power ministry as nodal agency. There is no ‘compulsion’ on a poorman to obtain light-
connection, unlike right to education act where he must send child to school. [Curiously, even Satya Pal
Singh Committee’s report in 2018 said that RTE Act 2009 need to be amended because there is no penal
provision for parents who do not send their children to school!]

Q. The Ministry of Communication has recently launched a Pan India scholarship programme for school-
children called ‘Deen Dayal SPARSH Yojana’. The objective of the scheme is to increase the reach of (CDS-
2018-i)

sports

philately

music

web designing

HINT: In November 2017, Ministry of Communications launched a Pan India scholarship program for
school children called Deen Dayal SPARSH Yojana to increase the reach of Philately. Under the scheme of
SPARSH (Scholarship for Promotion of Aptitude & Research in Stamps as a Hobby), scholarship of Rs.
500/- per month x 12 months = Rs.6,000 will be given to a students of class six to nine.

Q. Find incorrect statement(s) about Niryat Bandhu Scheme?

It’s run by the MSME ministry in collaboration with MUDRA Bank.

Only first generation entrepreneurs interested in international trade are eligible under this scheme.

Under this scheme, exporters earn credit-scripts which can be used for paying custom duty while
importing raw material.

Answer Codes:

Only 1 and 2
Only 2 and 3

Only 1 and 3

All of them

HINT: Under this scheme, an Officer (Niryat Bandhu) would mentor first generation entrepreneurs
interested in the international business. This scheme is implemented by DGFT under DIPP under
Commerce Ministry. While GuessmastersTM would point out that second statement ought to be wrong
as it contains extreme words “first” and “only”- but they’re wrong here.

Q. Which one of the following statements about the Deen Dayal Upadhyaya Grameen Kaushalya Yojana
(DDU-GKY) is not correct? (CDS-2018-i)

It is a placement-linked skill training programme exclusively for rural girls.

It aims to convert India’s demographic surplus into a demographic dividend.

The scheme aims to benefit more than 55 million poor rural folk.

It is a generational poverty alleviation programme.

HINT: focus of this programmes is on the rural youth from poor families, in the age group of 15 to 35
years. So first statement is wrong. (Ref: India Yearbook 2017) In this case, GuessmastersTM strategy
proves beneficial because first statement has extreme word “exclusively”, so it ought to be wrong, and
it’s indeed wrong.

Industries and Infrastructure

Q. In 2018-February, The Statistics Ministry proposed certain changes in the base years. Find correct
pairs

GDP’s base year will be changed from 2011 to 2017

IIP’s base year will be changed from 2011 to 2017

CPI’s base year will be changed from 2012 to 2018.

all of the above

Hint For faster revision, all are correct. Critiques say Modi is doing this so that these numbers don’t look
bad, as the base years are post-demonetization, post-GST. Anyways, you can learn more about GDP, IIP,
CPI, WPI and other indicators in my lecture video here.

Q. Which one of the following statements about India is not correct? (CDS-2018-i)

India has 12 major ports and about 200 non-major ports.

95 Percent of India’s trade by volume and 68 Percent by value are moved through maritime transport.

India has a coastline or about 7500 km.

In the Maritime Agenda, 2010-2020, a target or 300 MT Port capacity has been set for the year 2020.

HINT: Maritime Agenda 2010-2020 has target of 3,130MT so fourth option is wrong (Ref: India Yearbook
2017, Chapter 26: Transport.) Alternatively, if you knew that first three statements are right, then also
you could eliminate.

Q120. Growth in production (in percent) of which one of the following core industries in India during the
period 2015-2016 was negative?: (CDS-2018-i)

Natural gas

Refinery products

Fertilizer

Coal

HINT: Observe the following table given in Economy survey 2016-17 volume2. Among the given option,
Natural gas had negative growth for the given year.

IIP Core Industries Growth MCQ in UPSC CDS

Yearbook Type

Q. Which one of the following States will host the Nobel Prize Series-India 2018 (Science Impacts Life)
Exhibition? (CDS-2018-i)
Gujarat

Rajasthan

Goa

Madhya Pradesh

HINT: This program started from 2017- It was held at Gandhinagar, Gujarat. Then, 2018- February, it was
held at Panaji, Goa with the theme “Education and the role of teachers.”

Which of the following portals / projects are designed by the Infosys company?

eBiz portal for Commerce Ministry.

GSTN portal

Project Insight for the Income Tax Department.

Answer Codes:

Only 1 and 2

Only 2 and 3

Only 1 and 3

All of them

HINT: Project Insight is for datamining to track tax evaders. IT department gave this project to L & T
Infotech Ltd. GSTN portal is managed by the a non-Government, private limited company where
Government of India has 24.5% share holding but the actual technology is provided by Infosys.

Q. Find Correct Pairs

India’s first ever “Institute of Skills of India”: Kanpur

India’s first international stock exchange: Gandhinagar, Gujarat

India’s longest highway tunnel: Chenani-Nashri tunnel in Jammu & Kashmir

All of the above

HINT: For faster revision, all pairs are rightly matched. These factoids have been in news during 2017-18,
and also asked in CDS.

Q. What is the objective behind Cyber Swachhta Kendra setup in 2017?

Shutting down of pornographic and terrorist-propaganda websites that are poisoning the minds of Indian
youth.

Removal of google /facebook ads that sell sex-determination kits.

Collection, processing and recycling of the electronic waste.

Botnet Cleaning and Malware Analysis

HINT: Indian Computer Emergency Response Team (CERT-In) runs this centre under provisions of Section
70B of the Information Technology Act, 2000. Cyber Swachhta Kendra ” (Botnet Cleaning and Malware
Analysis Centre) is a part of the Government of India’s Digital India initiative under the Ministry of
Electronics and Information Technology (MeitY) to create a secure cyber space by detecting botnet
infections in India and to notify, enable cleaning and securing systems of end users so as to prevent
further infections.

Q. The Ministry of Power, Government of India has recently constituted a Committee to investigate the
causes of the accident that occurred on 1st November, 2017 at Feroze Gandhi Thermal Power Plant Ltd.,
Unchahar, in Uttar Pradesh. Who among the following is the Chairman of the Committee? (CDS-2018-i)

Dr. L. D. Papney

Shri Dhawal Prakash Antapurkar

Shri Subir Chakraborty

Shri P. D. Siwal

HINT: This was asked in UPSC’s CDS but I don’t think such trivial GK will appear in CSE (Civil services
exam). P.D. Siwal was the chairman. Power ministry gets the ‘power’ to form Committee under Electricity
Act. When solving mock MCQ, you should cultivate the habit of reading the introductory part of the
question as well – “Feroz Gandhi plant is located in UP’s Cnchahar.” that way you get to learn new GK.
Q. Match List-I with List-II and select the correct answer using the code given below the Lists : (CDS-
2018-i) List-I (Railway Zone) A. North Central B. North Eastern C. West Central D. South Central List-II
(Headquarters)

Secunderabad

Jabalpur

Gorakhpur

Allahabad

Code :

A B C D- 4 3 2 1

A B C D- 4 2 3 1

A B C D- 1 2 3 4

A B C D- 1 3 2 4

HINT: Answer is available in the Ch.26 (Tranport) of the Indian Yearbook. North Central = Allahabad;
South Central=Secundarabad; West Central = Jabalpur. So match accordingly. Asked in CDS but unlikely in
CSE.

Agro related Summits and days

Agro related MCQs are more frequent in Civil services prelims, because UPSC has combined both IAS and
IFoS prelim exams. But curiously even in CDS-2018, UPSC asked two distinct questions about Agro
related summits / days.

Q. Which one of the following was a focus country of the ‘World Food India’, a mega food event held in
November 2017 in New Delhi? (CDS-2018-i)

Germany
Japan

Denmark

Italy

HINT: It was organized first time in India, by Ministry of Food Processing Industries (2017). Italy &
Netherlands were the Focus Countries, so out of the given options, the correct answer is Rahul Gandhi’s
maternal country. Here also, you should cultivate the habit of reading the full question- so you can gain
one more addl. GK that it was held in New Delhi.

Q. Which one of the following is the theme of the World Soil Day, 2017? (CDS-2018-i)

Soils and pulses, a symbol for life

Caring for the Planet starts from the Ground

Soils, a solid ground for life

Soils, foundation for family farming

HINT: In 2013, UN general assembly decided to celebrate 5th December as World Soil Day [upon request
of FAO], because Soil holds three times as much carbon as the atmosphere and provides 95% of our food
requirement. 2017’s theme was ‘Caring for the Planet starts from the Ground’.

Microeconomics

Microeconomics questions are more frequent in UPSC’s CDS exam than Civil services exam.

Q. Consider the following statements about Impact of tax (CDS-2018-i)

A tax is shifted forward to Consumer if the demand is inelastic relative to supply.

A tax is shifted backward to producers if the supply is relatively more inelastic than demand.

Answer Codes:

Only 1 and 2
Only 2 and 3

Only 1 and 3

All of them

HINT: If demand is inelastic, a higher tax will cause only a small fall in demand. Most of the tax will be
passed onto consumers because industrialist knows that consumer has no other alternative. So, first
statement is right. If demand is elastic, then an increase in price will lead to a bigger percentage fall in
demand so the burden of tax will shift to producer, since he can’t adjust the supply. So, second
statement is also right.

Q. According to the law of diminishing marginal utility, as the amount of a good consumed increases, the
marginal utility of that good tends to (CDS-2018-i)

improve

diminish

remain constant

first diminish and then improve

HINT: begins to diminish. Watch my lecture for rapid revision of Microeconomics.

Sports

Following questions were asked in UPSC’s CDS-2018. As such sports recieves special attention in the
recruitment exams for CDS/CAPF. Otherwise for Civil services, UPSC has almost stopped asking sports
since 2011.

Q. Which One of the following teams was defeated by India to win the Women’s Hockey Asia Cup title,
2017? (CDS-2018-i)

Japan

China

South Korea
Pakistan

HINT: Tournament was held in 2017-November, at Kakamigahara (Japan). India team under Captain Rani
Rampal defeated China in a penalty shootout. By winning this cup, India also qualified for the Hockey
World Cup 2018, as Continental champion.

Q. In November 2017, India’s MC Mary Kom won the gold medal at the Asian Boxing Championship,
2017 held at Ho Chi Minh City in Vietnam. In which one of the following categories was she declared
winner? (CDS-2018-i)

48 kg

51 kg

54 kg

57 kg

HINT: She won it on 48 kg category by beating Korea’s Hyang Mi Kim. It was her fifth medal in this
tournament. She hails from Manipur.

Q. Who among the following is the winner of the National Badminton Championship (Men), 2017? (CDS-
2018-i)

Kidambi Srikanth

H. S. Prannoy

Ajay Jayararn

Sai Praneeth

HINT: It was held at Nagpur. H.S Prannoy defeated Kidambi Srikanth.

Q. In November 2017, an Indian short film, The School Bag won the Best Short Film Award at the South
Asian Film Festival held at Montreal. Who among the following is the Director of the film? (CDS-2018-i)
Anurag Kashyap

Dheeraj Jindal

Sujoy Ghosh

Samvida Nanda

HINT: The movie’s plot is based in Peshawar and tells a story about the relationship between a mother
and her seven-year-old son who wants a new iphone-x school bag on his birthday, but fate has
something else in store for him. Director is Dheeraj Jindal

1. Van Dhan Vikas Kendras (Relevant for GS Prelims, GS Mains paper III; Economics)

What are Van dhan kendras?

As per the plan,TRIFED will facilitate establishment of Van Dhan Vikas Kendras, a cluster

of 10 SHGs comprising of 30 tribal Minor Forest produce (MFP) gatherers each, in the tribal

areas. This initiative is aimed at mainstreaming the tribal community by promoting

primary level value addition to MFP at grassroots level.

What is the vision?

Through this initiative, the share of tribals in the value chain of Non-Timber Forest Produce

is expected to rise from the present 20% to around 60%. About 3000 such Van Dhan
Kendras are proposed to be set up in two years in the forested Tribal Districts of the

country. To begin with, this initiative is proposed to be taken up on priority in the 39

Districts with more than 50% tribal population and to then gradually be expanded to other

Tribal Districts in India.

Implementing agencies

The scheme will be implemented through Ministry of Tribal Affairs as Nodal Department at

the Central Level and TRIFED as Nodal Agency at the National Level. At State level, the State

Nodal Agency for MFPs and the District collectors are envisaged to play a pivot role in

scheme implementation at grassroot level. Locally the Kendras are proposed to be

managed by a Managing Committee (an SHG) consisting of representatives of Van Dhan

SHGs in the cluster.

What is the need of initiative?

The initiative aims to promote MFPs-centric livelihood development of tribal gatherers and
artisans. MFP or what may be more aptly referred to as Non-Timber Forest Produces

(NTFPs) are the primary source of income and livelihood for about 5 crore tribal people in

the country. Notably, most of the tribal Districts in India are forested Districts. Tribals have

enormous traditional skills in the processes involved in collection and value addition of

NTFPs. Based on local skills and resources the ideal model of tribal development has,

therefore, to be NTFP centric.

Key Highlights of Van Dhan Initiative

1. At unit level, aggregation of produce would be done by SHGs having about 30 members

each forming Van Dhan Vikas ǮSamuhǯ. The SHGs would also undertake primary value

addition of the MFPs using equipment such as small cutting and sieving tools,

decorticator, dryer, packaging tool etc based on MFPs available in the area.

2. A typical Van Dhan Vikas Samuh would have the following facilities:
(a) Provision for required building/ infrastructure support to be established in one of the

beneficiaryǯs house/ part of house or Government/ gram panchayat building

(b) Equipment/ Tool Kit comprising of equipment such as small cutting and sieving tools,

decorticator, dryer, packaging tool etc. based on MFPs available in the area

(c) Fully equipped training facilities for a batch of 30 trainees with provision for raw

material for training purpose and supply of trainee kits (comprising of bag, scribbing

pad, pen, brochures, training manual, booklet etc.)

(d) Provisioning of working capital for the SHGs through tie up with financial institutions,

banks, NSTFDC etc.

3. A cluster of ten such SHGs within the same village shall form a Van Dhan Vikas Kendra.

Subject to successful operations of the samuhs in a Kendra, common infrastructure

facilities (pucca Kendra) may be provided to the Kendra in the next phase in terms of

building, warehouse, etc. for use of the samuh members

4. An illustrative list of major MFPs which may be covered under the initiative are

tamarind, mahua flower, mahua seed, hill broom, chironjee, honey, sal seed, sal leaves,

bamboo split, myrobalan, mango (amchur), aonla (churan/candy), seed lac, tez patta,

cardamom, black pepper, turmeric, dry ginger, cinnamon, coffee, tea, sea buckthorn tea,

etc. Apart from these, any other MFP with potential for value addition may be included.

(Adapted from PIB)

2. India ranks 4th in Asia-Pacific on power index, pegged as Ǯgiant of the futureǯ

(Relevant for GS Prelims, GS Mains Paper II; Economics)

How did Indian perform?

India has ranked fourth out of 25 nations in the Asia-Pacific region on an index that

measures their overall power, with the country being pegged as a Dzgiant of the futuredz but

trails behind in indicators of defence networks and economic relationships.

Who issues the report?

The Lowy Institute Asia Power Index measures power across 25 countries and territories

in the Asia-Pacific region, reaching as far west as Pakistan, as far north as Russia, and as far

into the Pacific as Australia, New Zealand and the US.

Basis of index

A countryǯs overall power is its weighted average across eight measures of power—

economic resources, military capability, resilience, future trends, diplomatic influence,

economic relationships, defence networks and cultural influence.

Key findings

Among the key findings from the inaugural 2018 index are that US remains the pre-

eminent power in Asia, while China, the emerging superpower, is rapidly closing in on US.

DzThree of the worldǯs four largest economies are in Asia, and the fourth, the United States, is

a Pacific power. By 2025, two-thirds of the worldǯs population will live in Asia, compared
with just over a tenth in the West,dz the Institute said.

Specific parameters

India is ranked fourth on the parameters economic resources, military capability,

diplomatic influence and fifth on resilience. It scores well on the parameters of cultural

influence and future trends, ranking third in both. However, it scores low on the measure of

economic relationships, ranking seventh and in defence networks, ranking 10th.

Lowy said economic relationships is measured in terms of the capacity of states or

territories to exercise influence through economic interdependencies; measured in terms

of trade relations, investment ties and economic diplomacy.

Defence networks are defence partnerships that act as force multipliers of military

capability; measured through assessments of alliances, non-allied partnerships and arms

transfers. Cultural influence is defined as the ability to shape international public opinion

through cultural appeal and interaction; measured in terms of cultural projection,

information flows and people exchanges.

Future trends are the projected distribution of economic, military and demographic

resources in 2030, which play into perceptions of power today; measured in terms of GDP,

military expenditure and working-age population forecasts.

(Adapted from Livemint)

3. When Supreme Court let ex-Prime Ministers, Vice-Presidents keep govt homes

(Relevant for GS Prelims, GS Mains Paper II; Polity & Governance)

The Supreme Court has struck down a provision in an Uttar Pradesh law that allowed

former chief ministers to retain their official accommodation even after the end of their

terms — a ruling that is expected to affect other states that have similar provisions.

During the hearing, the central government submitted that accommodation was provided

to former Presidents, Vice-Presidents and Prime Ministers, and that this had been
approved by the Supreme Court in the Shiv Sagar Tiwari vs Union of India and Others case

in 1997. What was this case, and what were the issues on that occasion?

The petition

Supreme Court lawyer Shiv Sagar Tiwari filed the petition based on a news item published

in The Indian Express of September 5, 1994, which reported that a son had died after his

father was forced to vacate government quarters. The petition alleged various anomalies in

the allocation of government accommodation, including out-of-turn allotments and

unauthorized occupation.

Gupta Committee

On July 31, 1996, the apex court constituted a three-member Committee headed by D P

Gupta, the then Solicitor General of India, to examine all aspects of the matter. Other

members of the committee were M S Srinivasan, Joint Secretary in the Ministry of Urban

Affairs and Employment, and K T S Tulsi, the then Additional Solicitor General. The
Committee submitted its report on September 26, 1996.

Minister fined

On October 11, 1996, the court issued notice to Sheila Kaul, who was Urban Development

Minister at the relevant time, asking why she should not be told to pay damages for illegal

allotments made by her concerning 58 shops/stalls. The court subsequently ordered her to

pay Rs 60 lakh as exemplary damages.

President, PM, etc.

One of the questions before the court was whether holders of political offices like

President, Vice-President and Prime Minister, should be accommodated in government

quarters after they demitted office.

The Bench of Justices K Singh and B L Hansaria answered this in the affirmative. It held,

Dzkeeping in view the very high constitutional position occupied by the President, Vice-

President and Prime Minister, we feel no difficulty in stating that they should be
accommodated in government premises after demitting of office by them, so that problem

of suitable residence does not trouble them in the evening of life. What should be the terms

of the same is a matter to be decided by the Government.dz

Damages, instructions

Based on the Gupta Committeeǯs findings, the court ordered several evictions. It directed

that IAS, IPS, IFS and other officers who were occupying General Pool quarters despite

being eligible for quarters in the Tenure Pool, though not actually allotted, should also be

evicted. The out-of-turn allottees were required to pay licence fees, and those who were

denied government accommodation despite being eligible were awarded compensation.

The Bench called for construction of more government quarters, saying Dzafter all, it is

dearth of accommodation and resultant long waiting period which makes employees move

around the power corridor for out-of-turn allotmentsdz.

(Adapted from The Indian Express)

4. Price freeze: on high fuel prices (Relevant for GS Prelims, GS Mains Paper III;

Economics)

Abandoning daily revision of prices

The price of oil has been shooting up for weeks now, with Brent crude oil futures hitting

their highest level in more than three years, at more than $75. But for two weeks now, the

state-owned oil companies have kept petrol and diesel prices unchanged. Since April 24,

the oil companies have abandoned the daily price revision. Since then, the prices of petrol

and diesel in the national capital, for instance, are stuck at Rs.74.63 and Rs. 65.93,

respectively.

Reason for freezing prices

1. This is a glaring freeze, given that since the Centre introduced the dynamic pricing

mechanism in June last year allowing oil marketing companies (OMCs) to revise fuel prices
daily, the retail prices of various domestic fuels had been on a steady uptrend owing to the

steep rise in international crude oil prices.

2. The new pricing mechanism also caused prices to show more volatility on a daily basis

compared to the earlier regime when prices were revised periodically, mostly on a

fortnightly basis.

3. Further, the rise in domestic fuel prices in response to rising crude oil prices has been

quite inelastic recently. Petrol and diesel prices rose by 1 to 2% in April while Brent crude

rose by more than 8%. This comes as a pleasant surprise considering that domestic fuel

prices, which while not falling to an equal extent when crude prices witness a sharp drop,

generally keep pace with any rise in oil prices.

Political pressure

The retail price of petrol is a hot political subject and successive governments at the Centre
are routinely held responsible for it. It is therefore speculated that the OMCs are under

pressure from the government to withhold upward revisions in the days before Karnataka

goes to the polls.

What govt should do?

The government should opt to ease the burden of fuel taxes. The best way to do this might

be to bring domestic fuels under the purview of the goods and services tax. For now, there

is enough room to bring down prices by reducing excise duties on oil.