Daily News Simplified - DNS

12 12 19
Notes
SL. THE HINDU
TOPICS
NO. PAGE NO.
1 Nod to ring fence successful IBC suitors 15

2 Nod to ring fence successful IBC suitors (Partial Credit Guarantee) 15

3 LS passes Bill to set up unified authority for financial services 12

4 50th PSLV launch carries radar satellite 01

5 The “Delhi Dogma” fallacy of the right 10

6 Heavy metals contaminating India’s rovers 09

7 After a heated debate, RS clears citizenship Bill 01

Dated: 12. Dec. 2019 DNS Notes - Revision

Title Nod to ring fence successful IBC suitors (Page 15)

Syllabus Mains: GS Paper 3: Economy

Theme Insolvency and Bankruptcy Code
Highlights Context:
The Union Cabinet has recently approved certain important amendments to the Insolvency and
Bankruptcy Code. In this regard, let us understand some of the important amendments being
made to the IBC 2019.

Basic Details about Insolvency and Bankruptcy Code (IBC)

Rationale: Earlier, there were multiple overlapping laws and adjudicating forums dealing with
financial failure and insolvency of companies and individuals in India. This led to undue delays
in the recovery of the NPAs by the Banks. Hence, the IBC Code was introduced to consolidate
all the existing laws related to Insolvency and Bankruptcy in India and to simplify the process of
insolvency resolution.

Institutional Mechanism:
• Insolvency Professionals: A specialized cadre of licensed professionals would
administer the resolution process, manage the assets of the debtor, and provide
information for creditors to assist them in decision making.
• Insolvency Professional Agencies: These agencies conduct examinations to certify the
insolvency professionals and enforce a code of conduct for their performance.
• Information Utilities: The creditors would report financial information of the debt
owed to them by the debtor.
• Adjudicating authorities: The proceedings of the resolution process would be
adjudicated by the National Companies Law Tribunal (NCLT), for companies; and the
Debt Recovery Tribunal (DRT), for individuals. The duties of the authorities will include
approval to initiate the resolution process, appoint the insolvency professional, and
approve the final decision of creditors.
• Committee of Creditors (CoC) :During the insolvency resolution process, a committee
consisting of lenders would be constituted for taking decisions (by voting) on the
resolution process. The CoC may either decide to restructure the debtor’s debt by
preparing a resolution plan or liquidate the debtor’s assets. However, such a decision
has to be approved by at least 66% of the votes in the committee of creditors. (Earlier,
the voting threshold for the approval was 75%, but it was reduced to 66% through the
IBC amendment act, 2019)
• Insolvency and Bankruptcy Board: The Board would regulate insolvency professionals,
insolvency professional agencies and information utilities set up under the Code. The
Board would consist of representatives of Reserve Bank of India, and the Ministries of
Finance, Corporate Affairs and Law.
• Procedure to resolve Insolvency and Bankruptcy: The Code proposes two
independent stages: Insolvency Resolution Process, during which lenders assess
whether the debtor's business is viable to continue and the options for its rescue and
revival; and Liquidation (Sale of Assets), if the insolvency resolution process fails.
o Insolvency Resolution Process (IRP): When a default occurs, the resolution
process may be initiated either by the debtor or creditor before the
adjudicating authority. The NCLT appoints an insolvency professional to
administer the IRP. The Resolution Professional identifies the financial
creditors and constitutes a Committee of Creditors (CoC). The CoC would
Dated: 12. Dec. 2019 DNS Notes - Revision

prepare the resolution plan for the restructuring the loans of the defaulted
borrower which may be in the form of extending the maturity period of the
loan, reducing the rate of interest on loans etc. However, such a resolution
plan has to be approved by at least 66% of the votes in the committee of
creditors.
o Liquidation (Sale of Assets): If the Committee of Creditors fail to come up with
a resolution plan within the time limit of 330 days, then the proceeds from the
sale of the debtor’s assets are distributed in the following order of precedence:
i) insolvency resolution costs, including the remuneration to the insolvency
professional, ii) secured creditors, whose loans are backed by collateral, dues
to workers, other employees, iii) unsecured creditors, iv) dues to government,
v) priority shareholders and vi) equity shareholders.

New Amendments proposed in the IBC

• Protection offered to Successful bidders: Previously, some of the successful bidders of
the stressed firms faced problems in taking over the stressed firm due to offences
committed by the previous management/promoters of the stressed firms. For
instance, JSW Steel had successfully bid for taking over Bhushan Power and Steel.
However, the Enforcement Directorate filed a case against Bhushan Power and Steel's
former promoter Mr. Sanjay Singhal in connection with the money laundering case.
Subsequently, the ED attached assets worth Rs 4,000 crores of the Bhushan Power and
steel (BPSL). Such an attachment of the assets went against the interests of the
successful bidder JSW Steel.

In this regard, the new amendment to the IBC seeks to protect the successful bidders from the
criminal proceedings against the offences committed by the previous promoters of the
stressed firms. Going forward, the assets of the stressed firms bought by a successful bidder
under the IBC would not be attached and hence would offer higher protection to the successful
bidders.

Insolvency Proceedings against Real Estate Developers: Initially, when the IBC was passed by
the Indian Parliament, it did not include Home-buyers as the creditors. This made it difficult for
the home buyers to initiate cases against the real estate developers for the delay in the
completion of the Housing projects. Subsequently, this flaw was addressed by including the
home-buyers as financial creditors under the amendment made to the IBC. As per the
amended provision, even a single home buyer having a claim of more than Rs 1 lakh can drag a
real estate developer to the National Company law tribunal. However, the real estate
developers have raised concerns that the some of the home-buyers are misusing such a
provision and a large number of cases have been filed against them. This has in turn led to
undue delay in the completion of the pending housing projects.
The new amendment approved by the cabinet is aimed to address this misuse by the home
buyers. As per the amendment proposed, a single home-buyer would not be able to invoke
insolvency against the real estate developer.

Personal Notes
Dated: 12. Dec. 2019 DNS Notes - Revision

Title Nod to ring fence successful IBC suitors (Page 15)

Syllabus General Studies III- Economy

Theme Partial Credit Guarantee Scheme
Highlights
Context:
The Union Cabinet has recently approved the Partial Credit Guarantee Scheme for the benefit of
the banks and NBFCs. Such a move by the Government is expected to inject more liquidity into
the economy so as to counter the present economic slowdown.

Background:
Over a period of time, the NBFC sector in India has emerged as major source of loans. However,
the sector been facing liquidity crunch due to Asset-Liability Mismatch. The poor financial
condition of the NBFCs has in turn adversely affected the credit creation in the Indian Economy.
In this regard, the Union Budget 2019 had announced Partial Credit Guarantee Scheme. Now,
the Union cabinet has decided to adopt certain modifications in the existing scheme.

How the Partial Credit Guarantee Scheme works?

• Under the Partial Credit Guarantee Scheme, the Public Sector Banks would purchase
highly rated assets of the NBFCs and HFCs in order to address the temporary liquidity
crunch. Under this Scheme, the Government has agreed to provide 10% first loss
guarantee to assets, amounting to total of ₹ 1 lakh crore.
• Here it is important to note that the limit of ₹ 1 lakh crore refers to the total amount of
assets against which guarantee will be extended and not the total amount of guarantee.
The maximum exposure that the Government will take under the Scheme is ₹ 10,000
crores (10% of ₹ 1 lakh crore).

Modifications in the Scheme

• Based upon suggestions received from various stakeholders and discussions held with
them, the Union Cabinet has now decided to adopt the following modifications:
Inclusion of NBFCs in the SMA-0 Category
• Earlier, the Scheme did not cover the NBFCs/ HFCs that had slipped into Special
Mention account (SMA) category. Now, the Union Cabinet has decided to even include
those NBFCs/HFCs that have slipped into SMA-0 Category.
• It is to be noted that Special Mention Category has been introduced by the RBI in order
to identify the incipient stress in the assets of the banks and NBFCs. These are the
accounts that have not-yet turned NPAs (default on the loan for more than 90 days),
but rather these accounts can potentially become NPAs in future if no suitable action is
action. The SMA has the various sub-categories as shown below:
• SMA-0: Principal or interest payment not overdue for more than 30 days but account
showing signs of incipient stress
• SMA-1: Principal or interest payment overdue between 31-60 days
• SMA-2: Principal or interest payment overdue between 61-90 days

Note: If the Principal or interest payment is overdue for more than 90 days, then the loan is
categorised as NPA. N
Now, the partial Credit Guarantee Scheme would cover only those assets which are categorised
as SMA-0 and it does not cover the assets which are categorised as SMA-1 and SMA-2.

Ratings of the Underlying Assets: Earlier, the Public Sector Banks were allowed to buy only
those assets which were rated "AA" and above. However, as per the new modification, the
Dated: 12. Dec. 2019 DNS Notes - Revision

Public Sector Banks are now allowed to buy those assets which are rated "BBB+" and above.
Such an increase in the ambit of assets would enable the Public Sector Banks to buy more assets
from the NBFCs and HFCs.

Benefits of the Scheme

• Provide Liquidity Support to the NBFCs and HFCs
• Improve the Credit Creation in the Economy.
• Protect the financial system from any adverse contagion effect that may arise due to
failure of NBFCs and HFCs.

Personal
Notes
Dated: 12. Dec. 2019 DNS Notes - Revision

Title LS passes Bill to set up unified authority for financial services (Page 12)
Syllabus GS II-Dispute resolution mechanisms
Theme International Financial Services Centres
Highlights
Context:
The Lok Sabha has recently passed the International Financial Services Centres (IFSC)
Authority bill, 2019 which provides for the establishment of an authority to develop and
regulate the financial services market. In this regard, let us understand the need for the bill
and its provisions

Need for the Bill

• The Section 18 of the Special Economic Zones Act, 2005 provides that the Central
Government may approve the setting up of an International Financial Services Centre
in a Special Economic Zone and may prescribe the requirements for setting up and
operation of such Centre. The first International Financial Services Centre in India has
been set up at GIFT City in Gandhinagar, Gujarat.
• An International Financial Services Centre enables bringing back the financial services
and transactions that are currently carried out in offshore financial centres by Indian
corporate entities and overseas branches of financial institutions to India by offering
world class business and regulatory environment. It would enable Indian corporates
easier access to global financial markets.
• Currently, the banking, capital markets and insurance sectors in International
Financial Services Centres are regulated by multiple regulators such as the Reserve
Bank of India, the Securities and Exchange Board of India and the Insurance
Regulatory and Development Authority of India. These regulators have issued various
regulations and guidelines under respective Acts for regulation of banking, capital
markets and insurance business in International Financial Services Centres.
• The development of financial products and services in International Financial Services
Centres require focused and dedicated regulatory interventions and require a high
level inter-regulatory coordination. Thus, there is a need to establish a unified
financial regulator to provide world class regulatory environment to such financial
market participants and promote ease of doing business.

Provisions of the Bill:

• Coverage: The Bill will apply to all International Financial Services Centres (IFSCs) set
up under the Special Economic Zones Act, 2005.
• International Financial Services Centres Authority: The Bill sets up the International
Financial Services Centres Authority. It will consist of nine members, appointed by
the central government. Members of the Authority will include: (i) the Chairperson,
(ii) one member each to be nominated from the Reserve Bank of India (RBI), the
Securities and Exchange Board of India (SEBI), the Insurance Regulatory and
Development Authority of India (IRDAI), and the Pension Fund Regulatory and
Development Authority (PFRDA), (iii) two members from among officials of the
Ministry of Finance, and (iv) two members to be appointed on the recommendation
of a Search Committee. Members will have a term of three years.
• Functions of the Authority: The Authority will regulate financial products, financial
services, and financial institutions which have been previously approved by any
appropriate regulator (such as RBI or SEBI), in an IFSC. Other functions of the
Authority include: (i) regulating any other financial products, financial services, or
financial institutions in an IFSC, which may be notified by the central government, and
(ii) recommending any other financial products, financial services, or financial
Dated: 12. Dec. 2019 DNS Notes - Revision

institutions to the central government, which may be permitted in an IFSC.

• International Financial Services Centres Authority Fund: The Bill sets up the
International Financial Services Centres Authority Fund. The following items will be
credited to the Fund: (i) all grants, fees and charges received by the Authority, and (ii)
all sums received by the Authority from various sources. The Fund will be used for: (i)
salaries, allowances and other remuneration of members and employees of the
Authority, and (ii) expenses incurred by the Authority. Further, the central
government may provide grants to the Authority for the regulation of IFSCs.

Personal
Notes
Dated: 12. Dec. 2019 DNS Notes - Revision

Title 50th PSLV launch carries radar satellite (Page 1)

Syllabus GS III- Science and Technology
Theme PSLV and RISAT
Highlights Context

• ISRO has launched India's defence satellite RISAT-2BR1 and nine commercial
satellites through the PSLV-C48 from the Satish Dhawan Space Centre at Sriharikota.
The launch assumes significance as PSLV-C48, the 50th mission of PSLV, will be
carrying the spy satellite of India to space.
• It is expected to enhance India's weather and agricultural capabilities, in addition
to providing the much needed surveillance capabilities to find out terrorist
movements and prevent incidents like the 2008 Mumbai attacks.
• RISAT-2BR1, a radar imaging earth observation satellite weighing about 628 kg,
will be placed into a low-earth orbit at 576 km, at an inclination of 37 degree. The
PSLV-C48 will also carry nine customer satellites of Israel, Italy, Japan and the USA.
The international customer satellites are being launched under a commercial
arrangement with NewSpace India Limited (NSIL).
• RISAT-2BR1 comes with the advantage of the Synthetic Aperture Radar (SAR) that
will help increase its surveillance capabilities.
• The primary payload is the RISAT-2BR1, which will give India all-weather
surveillance capabilities. The RISAT-2BR1 uses SAR that can penetrate clouds and
observe images on the ground with a ground sampling distance of barely 35 cms.
• It is also carrying 9 other smaller commercial payloads, including an Israeli
student satellite.
• SAR is data rich and can complement data from other sources. SAR satellite is an
emerging source of data that can complement data from other bands and other
sensors with applications in military and civilian areas.
• Given that SAR satellites are much more power hungry and have almost just 10
per cent duty cycle on orbit, it would be also interesting for India to develop a fleet of
smaller SAR systems that will complement the larger ones like RISAT.
• Ultimately, the power lies in the ability to make data available to the end users
and we should hope that India follows suit of countries like Japan who have made SAR
data from modern satellites such as ALOS freely to end users.
• Interestingly PSLV-C48 is the 2nd flight of PSLV in 'QL' configuration (with four
strap-on motors). This will be the 75th launch vehicle mission from SDSC SHAR,
Sriharikota and 37th launch from the first launch pad.

What is SAR?

• Environmental monitoring, earth-resource mapping, and military systems require

broad-area imaging at high resolutions.
• Often, this imagery must be acquired at night or during inclement weather.
Synthetic Aperture Radar (SAR) provides such a capability.
• Synthetic Aperture Radar (SAR) systems take advantage of the long-range
propagation characteristics of radar signals and the complex information processing
capability of modern digital electronics to provide high resolution imagery.
• Synthetic Aperture Radar (SAR) complements photographic and other optical
imaging capabilities because it is not limited by the time of day or atmospheric
Dated: 12. Dec. 2019 DNS Notes - Revision

conditions and because of the unique responses of terrain and cultural targets to
radar frequencies.
• Synthetic Aperture Radar (SAR) technology has provided terrain structural
information to geologists for mineral exploration, oil spill boundaries on water to
environmentalists, sea state and ice hazard maps to navigators, and reconnaissance
and targeting information to military operations.
• There are many other applications for this technology. Some of these,
particularly civilian, have not yet been adequately explored because lower cost
electronics are just beginning to make Synthetic Aperture Radar (SAR) technology
economical for smaller scale uses.

Personal
Notes
Dated: 12. Dec. 2019 DNS Notes - Revision

Title The “Delhi Dogma” fallacy of the right (Page number 10)
Syllabus General studies II: Foreign Policy
Theme Mr S Jaishankars analysis of India’s foreign Policy
Highlight The ‘Delhi dogma’ fallacy of the right
Context
• In November this year the External Affairs Minister drew upon the broad contours of
Indian Foreign Policy today on the occasion of the 4th Ramnath Goenka Lecture.
• Broadly the EAM outlined India’s Foreign Policy in two parts including
1. Evolution of Foreign Policy in 6 phases
2. 5 baskets that guide India’s foreign policy today
• Besides taking note of the rapid changes in the geopolitics and the need for constant
change in outlook in India’s foreign policy the EAM admits that the real obstacle to
the rise of India on the global stage is not so much the barriers of the world but the
‘dogmas of delhi’.

Evolution of foreign policy: 6 broad phases

1. 1946-62 an era of optimistic non-alignment

Background: bipolar world, cold war era
India’s goals: national integrity and economic development.
India’s approach
• non-alignment resisting the constraining of its choices and dilution of its sovereignty
• As the leader of the decolonized nations, India’s quest for a more equitable world
order.
2. 1962-71 limited cooperation
Background
• The 1962 war with China
• domestic challenges were acute, ranging from political turbulence to economic
distress.
India’s approach
• India made pragmatic choices on security and political challenges despite a paucity of
resources.
• looked beyond non-alignment in the interest of national security, concluding a
defence agreement with the U.S. in 1964.
• External pressures on Kashmir mounted in this period of vulnerability
• it now saw the emergence of limited cooperation between the US and USSR.
• South Asia happened to be a particular area of convergence and Indian diplomacy had
to face the superpowers together, as it did in Tashkent in 1965.
3. 1971 to 1991 greater regional assertion.
• It started with the creation of Bangladesh, but ended with the IPKF misadventure in
Sri Lanka.
Background
• Sino-US rapprochement of 1971 upending the strategic landscape
• It was a particularly complex phase as the US-China-Pakistan axis which came into
being at this time seriously threatened India’s prospects.
India’s approach
• The Indo-Soviet Treaty and the adoption of more pro-Soviet positions on international
issues were India’s response to this challenge.
• It was a particularly complex phase as the US-China-Pakistan axis which came into
being at this time seriously threatened India’s prospects.
Dated: 12. Dec. 2019 DNS Notes - Revision

Outcomes
• The collapse of USSR, its close ally, and the not unconnected economic crisis in 1991
compelled us to look again at the first principles of both domestic and foreign policy.
4. 1991-2000: Strategic autonomy
Background
• The dissolution of the USSR and the emergence of a "unipolar” world
India’s approach
• Shifted focus to safeguarding strategic autonomy. India opened up economically more
to the world.
• The Look East policy summarized the changed Indian approach to world affairs.
• India reached out to engage the US more intensively.
• This quest for strategic autonomy was particularly focused on securing its nuclear
weapon option, but also visible in trade negotiations.
• After 1998, it was now a declared nuclear weapon power, had fended off Pakistan’s
military adventurism again in Kargil in 1999, generated enough economic growth to
be of global interest.
th
5 phase: India as a balancing power
• India-US nuclear deal
• At the same time, India could also make common cause with China on climate change
and trade.
• consolidate further ties with Russia
• helping to fashion BRICS into a major forum
6th phase 2014 onwards
Change in global geopolitical landscape
• Weakening multi-lateralism, American nationalism, the rise of China, the saga of
Brexit and the rebalancing of the global economy
• climate change is a factor, contributing to geopolitics
• The Middle East is in ferment
• Centrality of ASEAN to Asia is not what it is used to be.
• Demographic and economic trends in Africa are giving that continent a greater
salience.
• Technology, connectivity and trade are at the heart of new contestations
Change in India’s engagement

• Relevance of the US or China is far more than anytime earlier.

• Steady relationship with Russia.
• Japan has become an important factor in our calculations
• France now a critical strategic partner
• ASEAN has grown closer
• Australia’s relevance is more apparent.
• Africa is the focus of development assistance and opening of new Embassies.
• Unprecedented investment in the neighborhood
India’s approach today
• multi-polarity was now seriously upon us
• we were now entering a world of convergences and issue-based arrangements.
• Break with its past like we did in the 1971 Bangladesh war, the 1992 economic and
political repositioning, the 1998 nuclear tests or the 2005 India-US nuclear deal.
• 1962 defeat against China.
• Not opening up the economy till 1991
• 2 decades of nuclear indecision ended dramatically with the tests of 1998.
• Lack of response to 26/11
Dated: 12. Dec. 2019 DNS Notes - Revision

Backdrop
• U.S. resource limitation and risk aversion in the aftermath of the Iraq war.
• Declaring an Afghan withdrawal
• Growing tepidity in the Asia-Pacific
• Europe too turned increasingly inwards.
• Japan’s efforts to acquire a greater say continued to unfold but only gradually.
• we have emerged among the major economies of the world is one factor.
• The relevance of our talent to global technology is another.
• Our ability to shoulder greater responsibilities at a time when the world is more
reticent is also evident.
• willingness to shape key global negotiations, such as in Paris on climate change. The
investment of greater resources in development partnerships with countries of the
South was also noteworthy.
• India’s diplomatic agenda has broadened considerably.
• a multi-polar world should have a multi-polar Asia at its core
A critique of India’s foreign policy
Positives
The 1971 Bangladesh war or the 1998 nuclear tests stand out in the positive category.
Negatives
Limitation
• During the 1st phase more emphasis was given to diplomacy which led to harsher
realities of hard security
• India was under-prepared for security situations that was seen in discomfort with
hard power reflected during the 1962 conflict.
• Failure of Shimla agreement to secure borders with Pakistan and taking over of PoK
which is continuing till date.
• BoP crisis and economic stagnation in 1991.
• Should India, for example, have brought the boundary issue to head in 1950 itself?
• Could the border conflict of 1962 have been avoided by a compromise in 1960 when
Zhou Enlai came to India?
Lessons for the future in 5 baskets
1st basket: Security
• Need for greater realism
• We are now engaging more with the military that can be seen in the creation of the
post of Chief of Defence Staff.
• Besides unlike 26/11, we have now reacted to Uri and Balakot kind of strikes.
• We have now formed smaller battlefield battalions like IBGs with limited objectives
• Maritime Domain Awareness
• Defence preparedness
2nd basket: Economics
• A common feature of all the success stories whether it is China or the Asian Tigers
likes Singapore, Taiwan is that they leveraged the global environment.
• For this India needs to leverage its FTAs by structural reforms in the domestic supply
chain.
• We should move away from old dogmas of self reliance and import substitution. But
at the same time, embracing the new dogma of globalization without a cost-benefit
analysis
rd
3 basket: Multiple strategic engagement in the multi polar world
4th basket Risk-taking is an inherent aspect of diplomacy
5th basket: Realistic assessment of the geopolitics
• Today, an appreciation of world politics must include a proper understanding of Sino-
Dated: 12. Dec. 2019 DNS Notes - Revision

US contradictions, of growing multi-polarity, of weaker multilateralism, of larger

economic and political rebalancing, of greater space for regional powers, and of the
world of convergences.
Conclusion
• Today we need to move away from independent mindset that drove non-alignment
and then protected our strategic equities can today be better expressed in multiple
partnerships.
• Summary of article

In this article the author describes the Jaishankar’s assessment of India’s foreign
policy as ideologically biased.
• Besides the advantage of having the benefit of hindsight is promoted as
pragmatism.
• For instance, that taking the Kashmir issue to the UN was a mistake assumes that
India could have forcibly liberated the princely state of Jammu and Kashmir (J&K)
from the Pakistani invasion during 1947-48. At a point of time when the Indian (and
Pakistani) Army was still commanded by British officers, it might not have been
possible for India to forcibly get back the rest of J&K. The next best option at the time
was indeed to go to the United Nations, which it did.
• Non-alignment was the need of the time
• The solution is given in broad terms and not pin pointed to questions like How to deal
with China, easily?
• Does the government have a China policy “today”?
• Is avoiding the tactical pressure from China (which can have electoral implications) via
informal summits and slow peddling the Quad helpful in addressing the long-term
China challenge?
• What are the outcomes of ‘Howdy Modi’, ‘Chennai Connect’ and ‘JAI’ (Japan-
America-India)?
• Kashmir and Pakistan
• The biggest disappointment is that the concerns of critics’ about the
internationalisation of Kashmir and hyphenation with Pakistan “is thinking from the
past.

Personal
Notes
Dated: 12. Dec. 2019 DNS Notes - Revision

Title Heavy metals contaminating India’s rovers (page 9)

Syllabus GS III: Pollution
Theme Heavy Metals Contaminating India’s rivers
Highlights
Heavy Metals Contaminating India’s rivers

Although there is no specific definition of heavy metal, literature has defined it as a naturally
occurring element having a high atomic weight and high density which is five times greater
than that of water.
According to study conducted by Central Water Commission, 65% of samples of water taken
from various water quality stations in the country reported heavy metal pollution.
- Iron emerged as the most common contaminant
- None of the sites registered arsenic levels above the safe limit.
- Lead, cadmium, nickel, chromium and copper contamination were more common in
non-monsoon periods while iron, lead, chromium and copper exceeded tolerance limits
in monsoon periods.

Concerns:
The presence of metals in drinking water is to some extent unavoidable and certain metals, in
trace amounts is required for good health. However, when present above safe limits, they are
associated with a range of disorders.
1) Long term exposure of heavy metals may lead to may result in slowing progressing
physical, muscular and neurological degenerative processes that mimic Alzheimer’s
disease, Parkinson’s disease, muscular dystrophy and multiple sclerosis.
2) Majority of Indians still use water directly from rivers for their domestic use, with an
increase in population, the pressure on these rivers will only increase.
3) Concentration of such toxic metals has increased rapidly over the past few decades.
Consequently, concentrations of toxic metals in grains and vegetables grown in
contaminated soils have increased at alarming rates.
4) Serious threat to humans and the environment because of its toxicity, non-bio-
degradibilityand bioaccumulation.
Dated: 12. Dec. 2019 DNS Notes - Revision

Arsenic pollution:
- Leads to arsenical skin lesions
- Arsenicosis is a chronic illness resulting from drinking water with high As level
over a long periodof time.
- Highconcentrations of arsenic in drinking water also result in an increase in
stillbirths andspontaneous abortions
Cadmium pollution:
- Itai-Itai disease (Severe pain in body and joints)
- One of the most widely known toxic effects manifested by Cdpoisoning is
nephro-toxicity. Adverse renal effects are more commonly seen with exposure
tolow levels of Cd.
Chromium Pollution:
- Hexavalent Chromium is a danger to human health, mainly for people who work
in the steel and textileindustry. People who smoke tobacco also have a higher
chance of exposure to chromium.
Chromium (VI) is known to cause various health effects. When it is a
compound in leather
products, it can cause allergic reactions, such as skin rash. After breathing in,
chromium (VI) cancause nose irritations and nosebleeds.
Copper Pollution:
- It is seen that though copper isessential of life and health, its deficiency or
excesses both cause adverse effects.
- Industrial exposure to copper fumes,dusts, or mists may result in metal fume
fever with atrophic changes in nasal mucousmembranes. Chronic copper
poisoning results in Wilson’s Disease, characterized by a hepaticcirrhosis,
brain damage, demyelination, renal disease, and copper deposition in the
Dated: 12. Dec. 2019 DNS Notes - Revision

cornea.
Iron Pollution:
- Iron is an essential element in human nutrition.
- Thepresence of higher concentration of iron in drinking water makes its taste
unpleasant; however,living organism can tolerate higher concentration of iron
without any serious damage to theirsystem.
- Causes aesthetic problems such as discoloured water, precipitation, scaling,
staining and metallic water taste.

Mains sources of Heavy Metal Pollution are:

1) Mining
2) Milling
3) Plating and surface finishing industries
4) Domestic water effluents
5) Storm water runoff from urbanised areas
6) Industrial waste
7) Sanitary landfill
8) Agricultural runoff
9) Fossil fuel combustion
Other Reasons:
1) Lack of monitoring
2) Slack enforcement of
Recommendations:
1) Quality of water should be monitored at least four times a year.
2) All the toxic metallic elements like chromium and its other associated heavy metals
coming from the tanneries, mining and other industries should be treated chemically
and biologically before such wastes find their way to River.
3) Promotion of effective and efficient implementation of water pollution control
laws and
regulations.
4) There are variouswastewater treatment technologies available for treating
heavy metals contaminated waterprior to ultimate discharge in natural water
bodies, for example chemical precipitation, evaporative recovery, oxidation/
reduction, filtration, ion exchange, membrane technologies and
electrochemical treatment technologies are commonly used for practical
applications.

Personal
Notes
Dated: 12. Dec. 2019 DNS Notes - Revision

Title After a heated debate, RS clears citizenship Bill (Page 1)

Syllabus GS II: Polity
Theme Citizenship amendment Bill 2019
Highlights About the Citizenship (Amendment) Bill 2019
• The Citizenship (Amendment) Bill 2019 extends citizenship to illegal migrants of the
minority communities of Afghanistan, Bangladesh and Pakistan.
• The migrants belonging to minority communities including Hindus, Sikhs, Buddhists,
Jains, Parsis and Christians who entered India on or before December 31 2014 are
eligible for citizenship by naturalization.
• Besides the act also provides for fast-track Indian citizenship in six years which was 12
years of residence for citizenship by naturalisation.
• The Bill also proposes to incorporate (a sub-section (d) to Section 7) providing for
cancellation of Overseas Citizen of India (OCI) registration where the OCI card-holder
has violated any provision of the Citizenship Act or any other law in force.
Part II of the Constitution including Articles 5 to 11 and Indian Citizenship Act 1955 deals
exhaustively with provisions relating to citizenship in India.
Indian Citizenship Act 1955 provides for following ways in which one can become a citizen of
India.
• Citizenship by Birth
• Citizenship by Descent
• Citizenship by Registration
• Citizenship by Naturalisation
Exceptions
• The bill excludes the areas under the Sixth Schedule and the North Eastern parts
covered by the Inner Line Permit regime- which includes the whole of Arunachal
Pradesh, Mizoram, most of Nagaland, Meghalaya and Tripura, and certain pockets of
Assam.
• The Sixth Schedule, on the other hand, provides for autonomous decentralised self-
governance in certain tribal areas of Assam, Meghalaya, Mizoram and Tripura.
• The state of Manipur has also been excluded in view of the people’s objections to the
proposed bill.
Need for the bill
• Centre says these minority groups have come escaping persecution in Muslim-
majority nations.
• Delhi Pact/ Liaquat Nehru Pact was signed in the backdrop of large-scale migration of
people belonging to minority communities between the two countries in the wake of
attacks by the majority communities in their respective territories.
• The immediate concern was the exodus of Hindus from East Pakistan (now
Bangladesh) and Muslims from West Bengal.
• The exodus of minorities Hindus, Sikhs, Jains and Buddhists in Pakistan, and Muslims
in India led to serious refugee crisis.
• The bill is aimed at extending citizenship to non-Muslims in the Pakistan, Bangladesh
and Afghanistan those who have suffered immense persecution based on religion.
Issues with the Bill
Assam: Re-emergence of Outsider V/s Insider debate
• Assam represents Ethnicity-based imbalances in a plural but fragmented society
hinging on issues like exploitation of resources from outsiders, unemployment and
lack of development making it a hot-bed of regionalism and sub-regionalism in India.
• Assam, consists of Bramhaputra valley dominated by Assamese speaking populace
and Cachar region dominated by Bengali-speaking people.
• Two distinct phases of regionalism can be delineated in Assam. One, over language
issue when in 1962, Assamese was declared the official language of the state against
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the wishes of Bengali-speaking populace.

• Secondly, regionalism took a ‘Son of soil’ colour when, as a result of educational and
economic backwardness of Assamese people, Bengali-speaking populace occupied
high positions in administration, business, law etc.
• Thus post-1972, regionalism has targeted mostly migrant population from Nepal and
Bangladesh.
• The fears in Assam now is that since the CAB does not apply to adjoining tribal areas,
there will be large scale migration of Bengali migrants to Assam thus affecting its
demography.
Discrimination based on country of origin
First, the Bill classifies migrants based on their country of origin to include only Afghanistan,
Pakistan and Bangladesh.
Further, it is not clear why migrants from these countries are differentiated from migrants
from other neighbouring countries such as Sri Lanka (Buddhist state religion) and Myanmar
(primacy to Buddhism)[8]. Sri Lanka has had a history of persecution of a linguistic minority in
the country, the Tamil Eelams.[9] Similarly, India shares a border with Myanmar, which has
had a history of persecution of a religious minority, the Rohingya Muslims.[10] Over the
years, there have been reports of both Tamil Eelams and Rohingya Muslims fleeing
persecution from their respective countries and seeking refuge in India. Given that the
objective of the Bill is to provide citizenship to migrants escaping from religious persecution, it
is not clear why illegal migrants belonging to religious minorities from these countries have
been excluded from the Bill.
Exclusion of some minorities
It is argued that there are religious minorities in these countries, who face religious
persecution and may have illegally migrated to India. For example, over the years, there have
been reports of persecution of Ahmadiyya Muslims in Pakistan (who are considered non-
Muslims in that country), and the murder of atheists in Bangladesh. It is unclear why illegal
migrants from only six specified religious minorities have been included in the Bill.
Exemptions
Fourth, the Bill also excludes illegal migrants residing in areas covered by the Sixth Schedule,
that is, notified tribal areas in Assam, Meghalaya, Mizoram and Tripura. The purpose behind
the enactment of the Sixth Schedule of the Constitution was to aid in the development of
tribal areas through autonomous councils, while protecting the indigenous population in
these areas from exploitation and preserving their distinct social customs. The Bill also
excludes the Inner Line Permit areas. Inner Line regulates the entry of persons, including
Indian citizens, into Arunachal Pradesh, Mizoram and Nagaland. Once an illegal migrant
residing in these areas acquires citizenship, he would be subject to the same restrictions in
these areas, as are applicable to other Indian citizens. Therefore, it is unclear why the Bill
excludes illegal migrants residing in these areas.
Wide discretion to government to cancel OCI registration
The 1955 Act provides that the central government may cancel the registration of OCIs on
various grounds. The Bill adds one more ground for cancelling registration, that is, if the OCI
has violated any law notified by the central government. It further states that orders for
cancellation of OCI should not be passed till the cardholder is given an opportunity to be
heard.
It may be argued that giving the central government the power to prescribe the list of laws
whose violation result in cancellation of OCI registration, may amount to an excessive
delegation of powers by the legislature. The Supreme Court has held that while delegating
powers to an executive authority, the legislature must prescribe a policy, standard, or rule for
their guidance, which will set limits on the authority’s powers and not give them arbitrary
discretion to decide how to frame the rules. The Bill does not provide any guidance on the
nature of laws which the central government may notify. Therefore, in the absence of
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standards, criteria or principles on the types of laws which may be notified by the
government, it may be argued that the powers given to the executive may go beyond the
permissible limits of valid delegation.

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