Hindu Aug 2019 Magazine PDF

THE HINDU ANALYSIS 2nd AUGUST 2019
SELF STUDY NOTES FOR IAS INDEX

is a humble attempt to provide prelims specific
material for IAS so that u can concentrate on Mains: 1. STEM CELLS (Pg 22, The Hindu)
writing practice, essays, optionals etc.
2. CRYPTOCURRENCIES (Pg 11, The Hindu)
Who are we? 3. YEMEN CRISIS (Pg 14, The Hindu)
We are a group of former aspirants who have
appeared in the Interview multiple times or even 4. PURCHASING MANAGERS’ INDEX (Pg 16, The
selected into the Allied Services. Hindu)
Our passion is to break the Convention and provide 5. NEWS IN BRIEF
high quality material to create an equal platform for Pink Toilets (Pg 4, The Hindu)
those who have means to enrol into the coaching
Cotton (Pg 16, The Hindu)
factories of Delhi and those who have confidence to
clear it on their own, at least for prelims now. Indus Valley Seals (Pg 22, The Hindu)
Are you still reading the stale news! Get daily

analysis. THE HINDU ANALYSIS 3rd AUGUST 2019
THE HINDU ANALYSIS 1-31st AUGUST 2019 INDEX
To get the files daily, just drop a msg at
selfstudynotesforias@gmail.com
1. INSTITUTE OF EMINENCE’ STATUS (Pg 1, The
Hindu)
THE HINDU ANALYSIS 1st AUGUST 2019
2. UNLAWFUL ACTIVITIES (PREVENTION)
INDEX AMENDMENT BILL, 2019 (Pg 1, The Hindu)
1. NIRBHAYA FUND (Pg 2, The Hindu) 3. THE MOTOR VEHICLES (AMENDMENT) BILL,
2. FOREIGN EXCHANGE MANAGEMENT ACT 2019 (Pg 10, The Hindu)
(FEMA) (Pg 2, The Hindu) 4. FOREST RIGHTS ACT, 2006 (Pg 10, The Hindu)
3. EL NINO AND INDIAN MONSOON (Pg 9, The 5. FOUNDATIONAL AGREEMENTS BETWEEN
Hindu) INDIA AND U.S. (Pg 13, The Hindu)
4. BRAHMOS (Pg 12, The Hindu) 6. ARTICLE 35A OF THE INDIAN CONSTITUTION
5. U.S. FEDERAL RESERVE (Pg 14, The Hindu) (Pg 13, The Hindu)
6. CORE SECTOR (Pg 15, The Hindu) 7. INTERMEDIATE-RANGE NUCLEAR FORCES

(INF) TREATY (Pg 14, The Hindu)
7. EQUALISATION LEVY (Pg 15, The Hindu)
8. NEWS IN BRIEF
8. FISCAL DEFICIT (Pg 15, The Hindu) Census 2021 (Pg 9, The Hindu)
9. NEWS IN BRIEF Economic Census (Pg 9, The Hindu)
Anti-lynching law (Pg 10, The Hindu) Easing of Monetary Policy (Pg 10, The Hindu)
India-Africa (Pg 10, The Hindu)
Maharashtra (Pg 11, The Hindu)

Supreme Court Strength (Pg 12, The Hindu)
1 For Daily Updates Join Telegram Channel: Prelims Specific Notes for IAS
THE HINDU ANALYSIS 4th AUGUST 2019
INDEX THE HINDU ANALYSIS 6th AUGUST 2019
1. REGIONAL COMPREHENSIVE ECONOMIC INDEX

PARTNERSHIP (RCEP) (Pg 13, The Hindu) 1. JAMMU AND KASHMIR REORGANISATION
2. OPEN MARKET OPERATIONS (OMOs) (Pg 14, BILL, 2019 (Pg 10, 13, The Hindu)
The Hindu)
2. VOTING RIGHTS OF PRISONERS (Pg 4, The
3. CANINE DISTEMPER VIRUS (CDV) (Pg 15, The Hindu)
Hindu)
3. INDIA'S GDP (Pg 11, The Hindu)
4. TRANSITING EXOPLANET SURVEY SATELLITE 4. DRAFT E-COMMERCE NORMS (Pg 15, The
(Pg 15, The Hindu)
Hindu)
5. CLINICAL TRIALS (Pg 20, The Hindu)
6. NEWS IN NEWS THE HINDU ANALYSIS 7th AUGUST 2019
Urkund software (Pg 6, The Hindu)
Related-party Transactions (Pg 13, The Hindu) INDEX
1. AIR POLLUTION AND CPCB (Pg 4, The Hindu)
THE HINDU ANALYSIS 5th AUGUST 2019 2. MEDICAL TERMINATION OF PREGNANCY ACT,
1971 (Pg 5, The Hindu)
INDEX
3. CONTEMPT OF COURT (Pg 5, The Hindu)
1. IMPRINT AND UAY (Pg 4, The Hindu)
4. MONEY LAUNDERING (Pg 5, The Hindu)
2. GENOME SEQUENCING (Pg 9, The Hindu)
5. FOOD SAFETY AND STANDARDS AUTHORITY
3. QRSAM TEST FIRED SUCCESSFULLY (Pg 9, The OF INDIA (FSSAI) (Pg 8, The Hindu)
Hindu)
6. CONSUMER PROTECTION BILL, 2019 (Pg 9,
4. AFGHAN PEACE PROCESS (Pg 10, The Hindu) The Hindu)
5. ANTI-LYNCHING LAW (Pg 11, The Hindu) 7. FAST TRACK COURTS (FTCS) (Pg 11, The Hindu)
6. NEWS IN BRIEF 8. NEWWS IN BREIF
Drug Menace (Pg 13, The Hindu) New Standards for Coal-based Plants (Pg 9, The
Hindu)
U.S. - Venezuela (Pg 14, The Hindu)
U.S.'s Problems with Turkey (Pg 14, The Hindu)

INDEX
1. PRIORITY SECTOR LENDING (Pg 15, The Hindu)
2. NEWS IN BRIEF
A first for RBI (Pg 1, The Hindu)
Bandipur Tiger Reserve (Pg 8, The Hindu)
Mekedatu Multi-Purpose Project (Pg 8, The Hindu)
Draft Environmental and Social Management
Framework (ESMF) (Pg 9, The Hindu)
National Water Development Agency (NWDA) (Pg 11, THE HINDU ANALYSIS 10th AUGUST 2019
The Hindu)
INDEX
Indian Passport (Pg 11, The Hindu)
Bharat Bill Payment Central Unit (BBPCU) (Pg 15,
1. THE INSOLVENCY AND BANKRUPTCY CODE
(Pg 1, 12, The Hindu)
The Hindu)
Rocket Lab working on a Reusable Booster (Pg 22, 2. LANDSLIDES IN INDIA (Pg 8, The Hindu)
The Hindu) 3. MERCURY CONTAMINATION (Pg 8, The Hindu)
THE HINDU ANALYSIS 9th AUGUST 2019 4. ONE NATION ONE RATION CARD SCHEME (Pg
9, The Hindu)
INDEX
5. PM KISAN MAAN DHAN YOJNA (Pg 9, The
1. BHARAT RATAN AND PADMA AWARDS, Hindu)
MINISTRY OF HOME AFFAIRS (Pg 1, The Hindu)
6. UNIVERSAL IMMUNIZATION PROGRAMME
2. ASIAN DEVELOPMENT BANK (Pg 7, The Hindu) (UIP) (Pg 12, The Hindu)
3. LEGAL OR JURISTIC PERSON (Pg 9, The Hindu) 7. INDEX OF INDUSTRIAL PRODUCTION (IIP) (Pg
15, The Hindu)
4. PREVENTION OF MONEY LAUNDERING ACT,
2002 (Pg 12, The Hindu) 8. COMMON SERVICES CENTERS (CSC) SCHEME
(Pg 15, The Hindu)
5. SYRIA - U.S. - TURKEY - KURDS (Pg 14, The
Hindu) 9. NEWS IN BRIEF
Nehru Trophy Boat Race (Pg 8, The Hindu)
6. LUNAR LIBRARY (Pg 22, The Hindu)
Linking retail loan rates with Repo Rate (Pg 15, The
7. CITES (Pg 22, The Hindu) Hindu)
8. NATIONAL MEDICAL COMMISSION BILL, 2019
(Pg 12, The Hindu)
9. NEWS IN BRIEF
Winning back the trust of FPIs (Pg 1, 15, the Hindu) INDEX
National Commodities And Derivatives Exchange 1. REPURPOSE USED COOKING OIL (RUCO)AND
(NCDEX) (Pg 5, the Hindu) BIODIESEL (Pg 1, The Hindu)
2. NEWS IN BRIEF
Breastfeeding (Pg 9, The Hindu)
Currency manipulator (Pg 14, The Hindu)
World's Highest Lake Discovered (Pg 20, The Hindu)
Draft National Logistics Policy (Pg 13, The Hindu)
THE HINDU ANALYSIS 12th AUGUST 2019 THE HINDU ANALYSIS 14th AUGUST 2019
INDEX INDEX
1. PROTECTION OF CHILDREN FROM SEXUAL 1. DELIMITATION (Pg 1, 12, The Hindu)
OFFENCES (POCSO) AMENDMENT ACT, 2019 (Pg 2. SWACHH SURVEKSHAN 2020 (Pg 9, The Hindu)
10, The Hindu)
3. YEMEN CRISIS (Pg 10, The Hindu)
2. CONTAMINATION OF FISH WITH FORMALIN
(Pg 7, The Hindu) 4. WHOLE-SALE PRICE INDEX (WPI) VS
3. URANIUM DEPOSITS OF INDIA (Pg 8, The CONSUMER PRICE INDEX (CPI) (Pg 16, The Hindu)
Hindu) 5. HIGH LEVEL COMMITTEE ON CORPORATE
4. NEWS IN BRIEF SOCIAL RESPONSIBILITY (CSR) (Pg 16, The Hindu)
Climate Change (Pg 7, The Hindu)
6. PARTIAL CREDIT GUARANTEE SCHEME (Pg 17,
Directed Energy Weapons (Pg 8, The Hindu) The Hindu)
Doctrine of Acquiescence (Pg 9, The Hindu)
7. NEWS IN BRIEF
Report (Pg 11, The Hindu) Surveys (Pg 11, The Hindu)
Sensex sees 2nd record plunge of year (Pg 12, The
THE HINDU ANALYSIS 13th AUGUST 2019 Hindu)

Rajasthan bags award at World Education Summit
INDEX
(Pg 13, The Hindu)
1. PRADHAN MANTRI AWAS YOJANA-HOUSING Regulatory Sandbox (Pg 16, The Hindu)
FOR ALL (Pg 7, The Hindu)
2. AYUSHMAN BHARAT YOJANA (Pg 9, The Hindu)
3. NEWS IN BRIEF
Udanti Wildlife Sanctuary (Pg 5, The Hindu) INDEX
Krishna Wildlife Sanctuary (Pg 8, The Hindu) 1. CHILIKA LAKE (Pg 6, The Hindu)
Motor Vehicles (Amendment) Act 2019 (Pg 9, The
2. NATIONAL PHARMACEUTICAL PRICING
Hindu)
AUTHORITY (NPPA) (Pg 9, The Hindu)
Colour Codes (Pg 6, The Hindu)
3. MARGINAL COST OF FUNDS BASED LENDING
RATE (MCLR) (Pg 16, The Hindu)
4. NEWS IN BRIEF
Lambahraun Lava Fields (Pg 22, The Hindu)
Happiness Curriculum (Pg 2, The Hindu)
ODF (Open Defecation Free), ODF+, ODF++ (Pg 9,
The Hindu)
Prevention of Corruption Act (Pg 10, The Hindu)
Floods (Pg 11, The Hindu)
Samarth Scheme (Pg 15, The Hindu)
Free Transactions on ATM (Pg 16, The Hindu)
THE HINDU ANALYSIS 16th AUGUST 2019 INDEX
INDEX 1. INDIAN NEW YEARS (Pg 1, The Hindu)
1. KASHMIR ISSUE AND UNSC (Pg 1, The Hindu) 2. INDIA-BHUTAN (Pg 1, 10, The Hindu)
2. PRADHAN MANTRI LAGHU VYAPARI MAAN- 3. CHAR DHAM PROJECT (Pg 9, The Hindu)
DHAN YOJANA (Pg 9, The Hindu) 4. PREVENTION OF CORRUPTION ACT (Pg 14,
3. EBOLA (Pg 11, The Hindu) The Hindu)
4. CHIEF OF DEFENCE STAFF (CDS) (Pg 1, 13, The 5. NEWS IN BRRIEF

Hindu) Colour Codes (Pg 6, The Hindu)
Kashmir issue and UNSC (Pg 14, The Hindu)
5. NEWS IN BRIEF
Kondapalli Toys (Pg 8, The Hindu) Gravity Stretches Light (Pg 15, The Hindu)
What is the three-language formula? (Pg 9, The Brighter than the Sun (Pg 15, The Hindu)
Hindu) Juno Spacecraft (Pg 20, The Hindu)
THE HINDU ANALYSIS 17th AUGUST 2019 THE HINDU ANALYSIS 19th AUGUST 2019
INDEX INDEX
1. INDIA'S NUCLEAR DOCTRINE (Pg 1, 12, The 1. ANTI-MICROBIAL RESISTANCE (Pg 10, The
Hindu) Hindu)
2. FASTag (Pg 2, The Hindu) 2. NATIONAL KNOWLEDGE NETWORK (NKN)

(Pg 10, The Hindu)
3. NATIONAL NUTRITION MISSION (POSHAN
3. ODISHA TO CONSERVE TWO OF ITS LARGEST
ABHIYAAN) (Pg 5, The Hindu)
LAKES (Pg 6, The Hindu)
4. NEWSPACE INDIA LTD (NSIL) (Pg 9, The Hindu)
4. NEWS IN BRIEF
5. NATIONAL ESSENTIAL DIAGNOSTICS LIST Taliban vis-a-vis IS (Pg 14, The Hindu)
(NEDL) (Pg 9, The Hindu) Serious Fraud Investigation Office (SFIO) (Pg 4, The
6. COMPANIES (AMENDMENT) BILL, 2019 (Pg 10, Hindu)
The Hindu) No First Use (Pg 10, The Hindu)
7. PIRACY (Pg 14, The Hindu)

8. GREENLAND (Pg 14, The Hindu)
9. FOREX RESERVES OF INDIA (Pg 15, The Hindu)
INDEX THE HINDU ANALYSIS 23rd AUGUST 2019
1. E-WASTE (Pg 5, The Hindu) INDEX
2. E-CIGARETTES (Pg 8, The Hindu) 1. NATIONAL HEALTH MISSION (Pg 1, The Hindu)
3. BANGLADESH-BHUTAN-INDIA-NEPAL (BBIN) 2. FSOC TECHNOLOGY (Pg 6, The Hindu)
MOTOR VEHICLES AGREEMENT (MVA) (Pg 10, 3. ZONAL COUNCILS (Pg 7, The Hindu)
The Hindu)
4. OXYTOCIN (Pg 9, The Hindu)
4. G7 (Pg 12, The Hindu)
5. SEBI’S LIBERALISED NORMS FOR FPIS (Pg 10,
5. UN SECURITY COUNCIL AND INDIA (Pg 12, The
The Hindu)
Hindu)
6. EASTERN ECONOMIC FORUM (Pg 10, The
6. NEWS IN BRIEF
Hindu)
Exchange plastic waste for free meal! (Pg 12, The
Hindu) 7. BELT AND ROAD INITIATIVE (BRI) (Pg 11, The
Hindu)
Navarro Recession (Pg 11, The Hindu)
NTPC to set up 5,000 MW solar park in Kutch (Pg 15, 8. INDIA'S TWO-PLUS-TWO DIALOGUE
The Hindu) MECHANISM (Pg 13, The Hindu)
9. AMAZONE RAINFOREST (Pg 14, The Hindu)
THE HINDU ANALYSIS 21st AUGUST 2019 10. SOUTH KOREA AND JAPAN TRADE WAR (Pg
14, The Hindu)
INDEX
11. START-UPS (Pg 15, The Hindu)
1. TOTAL FERTILITY RATE (TFR) (Pg 12, The
12. NEWS IN BRIEF
Hindu)
Terms in news (Pg 10, The Hindu)
2. NEWS IN BRIEF Russia sends its first humanoid robot Fedor into
Chandrayaan-2 pg 1 (Pg 12, The Hindu)
space (Pg 22, The Hindu)
Currency Notes Disability Friendly (Pg 4, The Hindu)
Khorasan (Pg 10, The Hindu)
INDEX
1. UNIFORM CIVIL CODE (UCC) (Pg 4, The Hindu)
INDEX
2. COMPOSITE WATER MANAGEMENT INDEX
1. FOUR NEW PRODUCTS GET GI TAG (Pg 8, The
Hindu) (CWMI) (Pg 9, The Hindu)
2. ALL ABOUT AADHAAR (Pg 10, The Hindu) 3. PAKISTAN BLACKLISTED (Pg 13, The Hindu)
3. NEWS IN BRIEF 4. NEWS IN BRIEF

Kutch was once a sub-tropical forest (Pg 12, The Climate Change Policy (Pg 7, The Hindu)
Hindu) Treaties in News (Pg 7, The Hindu)
NISHTHA (Pg 9, The Hindu) Russia launches floating nuclear reactor in Arctic (Pg
SEBI simplifies norms for foreign investors (Pg 15, 14, The Hindu)
The Hindu) Symmetric response to U.S. missile test: Russia (Pg

14, The Hindu)
Development financial institution to fund
infrastructure (Pg 15, The Hindu)
INDEX
THE HINDU ANALYSIS 25th AUGUST 2019 1. VECTOR-BORNE DISEASES (Pg 2, The Hindu)
INDEX 2. HIGH SECURITY NUMBER PLATES (Pg 7, The
1. IS THE WORLD TRADE ORGANIZATION Hindu)
BECOMING A NEW BATTLEFRONT? (Pg 14, The 3. EUROPEAN UNION-INDIA FREE TRADE
Hindu) AGREEMENT (FTA) (Pg 11, The Hindu)
2. NEWS IN BRIEF 4. NEWS IN BRIEF
Kapil Muni Temple (Pg 1, The Hindu) Chippiparai (Pg 1, The Hindu)
Inter-Ministerial Central Team (IMCT) (Pg 6, The Left Wing Extremism Division (Pg 6, 11, The Hindu)
Hindu)
Student-Teacher Ratio (Pg 9, The Hindu)
Order of Zayed (Pg 10, The Hindu) THE HINDU ANALYSIS 28th AUGUST 2019
What is the Irish backstop? (Pg 12, The Hindu) INDEX
What is the concussion test in cricket? (Pg 14, The
1. UNITED NATIONS CONVENTION TO COMBAT
Hindu)
DESERTIFICATION (UNCCD) (Pg 9, The Hindu)
Fly Ash (Pg 15, The Hindu)
2. CRIMEAN-CONGO HAEMORRHAGIC FEVER
Why did humans lose tail? (Pg 15, The Hindu)
(CCHF) (Pg 9, The Hindu)
Ecologists seek trade sanctions on Mexico (Pg 20,
The Hindu) 3. DRAFT E-COMMERCE NORMS (Pg 9, The Hindu)
Water Striders (Pg 20, The Hindu)
4. DEVELOPMENT FINANCIAL INSTITUTION TO
FUND INFRASTRUCTURE (Pg 11, The Hindu)
THE HINDU ANALYSIS 26th AUGUST 2019 5. BHARAT STAGE (BS) POLLUTION NORMS (Pg
16, The Hindu)
INDEX
6. ENERGY EFFICIENCY SERVICES LIMITED
1. SPECIAL PROTECTION GROUP (SPG) (Pg 14, (EESL) (Pg 17, The Hindu)
The Hindu)
7. NEWS IN BRIEF
2. SWATANTRA SAINIK SAMMAN YOJANA (SSSY) Peacock Parachute Spider or Gooty Tarantula (Pg 1,
(Pg 9, The Hindu)
The Hindu)
3. CHILD LABOUR (Pg 9, The Hindu) Child Well-being Index (Pg 1, The Hindu)
4. NEWS IN BRIEF
Blue Whale (Pg 1, The Hindu)
McrBC (Pg 7, The Hindu)
Air Pollution (Pg 9, The Hindu)
Right to Privacy (Pg 10, The Hindu)
Bypolls (Pg 12, The Hindu)
IMF report flags several delays in India’s data
reporting (Pg 13, The Hindu)
ASRAAM missile (Pg 13, The Hindu)
US-France Trade Dispute (Pg 14, The Hindu)
THE HINDU ANALYSIS 29th AUGUST 2019 THE HINDU ANALYSIS 31st AUGUST 2019
INDEX INDEX
1. FOREIGN DIRECT INVESTMENT (Pg 1, The 1. MERGER OF PUBLIC SECTOR BANKS (Pg 1, 12,
Hindu) The Hindu)
2. G7 SUMMIT, BIARRITZ, FRANCE (Pg 10, The 2. INDIA'S GDP (Pg 1, The Hindu)
Hindu)
3. AIR POLLUTION IN DELHI- CAUSES (Pg 3, The
3. CABINET COMMITTEES (Pg 15, The Hindu) Hindu)
4. OPEN MARKET OPERATIONS (OMOs) (Pg 15, 4. SAHARIA TRIBE AND TB (Pg 6, The Hindu)
The Hindu)
5. RBI RESERVES (Pg 10. The Hindu)
5. CITES (Pg 22, The Hindu)
6. NEWS IN BRIEF
6. NEWS IN BRIEF Anti-lynching Legislation (Pg 1, The Hindu)
Updates on Aadhaar (Pg 1, The Hindu)
Solar Energy Policy (Pg 11, The Hindu)
S-400 Triumf Air-defense System (Pg 12, The Hindu) THE HINDU ANALYSIS 1st AUGUST 2019
Fridays For Future (Pg 22, The Hindu) NIRBHAYA FUND
Asperger Syndrome (Pg 22, The Hindu) Context: Court asked the Delhi govt. why over 3 crore
rupees of Nirbhaya Fund is unused. (Pg 2, The Hindu)
Analysis
• The Ministry of Finance had set up a dedicated fund
INDEX called Nirbhaya Fund in 2013, for implementation of
1. PROJECT-75 INDIA (PROJECT-75 I) (Pg 1, The initiatives aimed at enhancing the safety and security
Hindu) for women in the country.
2. COMPENSATORY AFFORESTATION (Pg 9, The • It is a non-lapsable corpus fund.

Hindu) • Ministry of Women and Child Development is the
3. GEOGRAPHICAL INDICATION (Pg 9, The Hindu) nodal Ministry to appraise schemes under Nirbhaya
Fund and also to review and monitor the progress of
sanctioned Schemes.
4. COLLEGIUM SYSTEM (Pg 13, The Hindu) Schemes of Ministry of Women and Child
5. MEASLES CASES 3 TIMES MORE THAN LAST Development under Nirbhaya Fund
YEAR (Pg 22, The Hindu) One Stop Centre Scheme
6. NEWS IN BRIEF • Popularly known as Sakhi Centres, the One Stop

People for the Ethical Treatment of Animals (PETA) Centre Scheme is being implemented across the
(Pg 7, The Hindu) country since April 2015.
Luxury Trains of Indian Railways (Pg 8, The Hindu) • These Centres are being established across the
Tamil Nadu plans underwater excavations (Pg 9, The country to provide integrated support and assistance
Hindu) (First aid, Medical aid, Police assistance, Legal aid
Indian Currency (Pg 10, The Hindu) and counselling support) under one roof to women
Fit India Movement (Pg 9, The Hindu) affected by violence, both in private and public
Cryosphere (Pg 14, The Hindu) spaces, within the family, community and at the
Storm Surge (Pg 104 The Hindu) workplace, in phased manner.
• Women, including girls below 18 years of age,
facing physical, sexual, emotional, psychological and
economic abuse, irrespective of age, class, caste, women passengers in Railway Stations by
education status, marital status, race and culture will strengthening of Security Control Rooms of Railways
be facilitated with support and redressal. with 182 Security Helpline, Medical Facilities, RPF
• It is a centrally sponsored (Central Government will and police, installation of CCTV cameras, etc.
provide 100% financial assistance) sub - scheme of • Abhaya Project Proposal (Andhra Pradesh): This
the Umbrella Scheme for National Mission for proposal is for ensuring the safety of Women and Girl
Empowerment of women. child during the transport (auto rickshaw) has been
• State Government/ UT Administration is the proposed by Andhra Pradesh.
implementing Agency. • CHIRALI: Friends Forever (Rajasthan) is a scheme
Universalisation of Women Helpline Scheme to constitute Community Action Groups in 7 districts of
• The Department of Telecommunication has allocated Rajasthan with an objective to create an enabling
the number 181 linked with One Stop Centres for environment that would support girls and women to
women in distress to all States/UTs for Women move freely and make use of choices, spaces and
Helpline. opportunities for their overall well being.
Mahila Police Volunteers (MPVs)
FOREIGN EXCHANGE MANAGEMENT ACT
• They will act as a link between police and community
(FEMA)
and help women in distress. • Context: The Enforcement Directorate (ED) has
• Haryana has become the first state to start the seized the Q City Tech Park in alleged contravention
Mahila Police Volunteer scheme. of the Foreign Exchange Management Act (FEMA).
Schemes of other Ministries under Nirbhaya Fund (Pg 8, The Hindu)
Ministry of Home Affairs: Analysis
• a) Emergency Response support System: For FOREIGN EXCHANGE MANAGEMENT ACT, 1999
creation of an Emergency Response Support System • The Parliament has enacted the Foreign Exchange
(ERSS) which aims to integrate all emergency Management Act,1999 (a civil law) to replace the
numbers to 112 with state of art technology. ERSS Foreign Exchange Regulation Act, 1973 (a criminal
envisages an integrated computer aided emergency law).
response platform to respond to distress calls and • This Act came into force on the 1st day of June, 2000.
ensure speedy assistance to the distressed persons. • The Central Govt. have established the Directorate
• b) Central Victim Compensation Fund: A Corpus of Enforcement for the purpose of taking up
Fund of Rs.200 crores to be disbursed to States/UT investigations of cases under the said Act.
for Central Victim Compensation Scheme (CVCF) • The objectives of the Act are:
framed under section 357A CrPC. o to consolidate and amend the law relating to
• This will support States/UTs in providing fund towards foreign exchange with objective of facilitating
compensation to the victim or her dependents who external trade and payments and
have suffered loss or injury as a result of the crimes o for promoting the orderly development and
(including survivors of rape and acid attack). maintenance of foreign exchange market in India.
• c) Cyber Crime Prevention against Women and • This Act extends to the whole of India and also apply
Children: No State has used any fund released for applies to all branches, offices and agencies outside
the Cyber Crime Prevention against Women and India owned or controlled by a person resident in
Children scheme. India.
Ministry of Railways: • It is also applicable to any contravention committed
• Integrated Emergency Response Management outside India by any person to whom this Act is
System: To provide round the clock security to applicable.
• The Foreign Exchange Management Act, 1999 is a • The monsoon in India is called ‘normal’ if percentage
civil act in nature as such there is no provision for departure of realised rainfall is within ± 10 % of the
launching the prosecutions. Long Period Average or Monsoon in India is
• It enables a new foreign exchange management considered normal when the rainfall in four Monsoon
regime consistent with the emerging framework of months (June – September) is 96% to 104 % of the
the World Trade Organisation (WTO). long period average.
• The Act has assigned an important role to the • The long period average is calculated on the basis of
Reserve Bank of India (RBI) in the administration of mean rainfall in the four months of the southwest
FEMA. monsoon from 1951 to 2000, and works out to an
• FEMA permits only authorized person to deal in average of 89 cm for the country as a whole.
foreign exchange or foreign security.
o Such an authorized person, under the Act,
means authorized dealer, money changer, off-
shore banking unit or any other person for the
time being authorized by Reserve Bank.
Directorate of Enforcement
• Directorate of Enforcement is a specialized financial
investigation agency under the Department of
Revenue, Ministry of Finance (Department of
Investment and Public Asset Management;
Expenditure; Revenue; Financial Services; Economic
Affairs are other departments of the Ministry). El Nino
• It enforces the following laws: - • El Niño is an abnormal warming of water in the central
Foreign Exchange Management Act,1999 (FEMA) - A and eastern tropical Pacific Ocean every three to five
Civil Law. years and can last up to 18 months.
Prevention of Money Laundering Act, 2002 (PMLA) - • Climate records of El Niño go back millions of years,
A Criminal Law. with evidence of the cycle found in ice cores, deep
India's Forex Reserves sea muds, coral, caves and tree rings.
• India's forex reserves comprise Foreign Currency What causes an El Niño?
Assets (FCAs), gold reserves, Special Drawing Rights • Scientists do not yet understand in detail what triggers
(SDRs) and India's reserve position with the an El Niño cycle.
International Monetary Fund (IMF). • Normally, due to the presence of cold Peru Current
• FCAs constitute the largest component of the forex (Humbolt Current) along the coast of Peru (South
reserves. America), there is high pressure area in the eastern
• Besides the US dollar, FCAs consist of 20-30 per cent Pacific Ocean along the Peru Coast.
of the other major global currencies. • Therefore, air moves from the eastern Pacific Ocean
to the western Pacific Ocean where there is
EL NINO AND INDIAN MONSOON
• Context: India’s monsoon deficit percentage has for comparatively a low pressure.
the first time this year narrowed down to single digits

thanks to better-than-expected July rainfall, thanks to
the weakening of El Nino. (Pg 9, The Hindu)
Analysis
Indian Monsoon
• Because of the warmer oceans this air gets lots of
moisture due to evaporation on the way.
• This warm moist air rises to high levels of the

atmosphere in the western part of the Pacific Ocean
and causes rainfall in Indonesia, eastern and northern
Australia etc.
• The rise of warm air finally results in its cooling in the
upper atmosphere. A part of this air moves towards
the eastern Pacific Ocean in the upper atmosphere
and descends over the eastern Pacific Ocean and
helps to sustain the higher pressure there and again
moves towards the western Pacific Ocean.
o This way we have a complete circulation of air
between eastern and western Pacific Ocean.
This circulation is called Walker Circulation.
• During El Nino years, due the abnormal warming of
water in the central and eastern tropical Pacific
Ocean the high pressure area in the eastern Pacific
Ocean weakens, thus the wind moving towards the
east (called easterly wind) weakens or even
reverses its direction.
o Thus there is less rainfall/drought in the western • Typically, El Niños occur more frequently than La
Pacific Ocean (Indonesia, eastern and northern Niñas.
Australia and nearby areas including India etc.) El Nino and Indian Monsoon
whereas due to the presence of warm water in • An analysis of rainfall records of the past 132 years
the eastern Pacific Ocean near Peru cloud has revealed that severe droughts in the country have
formation takes place which causes heavy always been accompanied by El Nino events, but not
rainfall/floods in the coastal Peru. all such weather conditions have led to the failure of
• The atmospheric pressure in the eastern Pacific monsoons.
Ocean is measured at a place called Tahiti whereas • The El Nino events in 1965, 1972, 1982 and 1987
the atmospheric pressure in the western Pacific were bad for India but the 1997 El Nino, despite being
Ocean is measured at a place called Darwin. the strongest in the century, did not affect monsoons
o During normal years there is high pressure at (Thus strong El Niño events are not always
Tahiti and low pressure at Darwin. This situation associated with drought).
exactly reverses during El Nino years and this • This led many experts to conclude that the link
phenomenon is called Southern Oscillation. between monsoons and global weather event was
• There is also an opposite of an El Niño, called La wearing off. But the India Meteorological Department
Niña. still takes into account El Nino for forecasts.
o This refers to times when waters of the tropical • Researchers also believe that even the location of the
eastern Pacific are colder than normal and trade warming in the Pacific may possibly have an influence
winds blow more strongly than usual. on the monsoon. Anomalous warming in the Central
• El Nino and Southern Oscillation together sometimes and East Pacific (Nino 3.4 region) could have a more
called ENSO. profound adverse impact on the monsoon than when
the warming shifts to the adjoining far east Pacific
(Nino 3. region).
• During El Nino years, due the abnormal warming of

water in the central and eastern tropical Pacific
Ocean the high pressure area in the eastern Pacific
• What’s worth noting is that El Niño is impacting the
Ocean weakens, thus the wind moving towards the
Indian monsoon more than before. Since 1991, six of
east (called easterly wind) weakens or even
the nine times that El Niño occurred, the Indian
reverses its direction. Thus less or no air descends
monsoon was affected. Mathematically, that’s
near East Africa which results in the weakening of the
tantamount to an impact probability of over 65%.
Mascarene High Pressure zone.
• A closer look also reveals two interesting
Other effects of El Niño:
developments: One, the frequency of El Niño has
• During an El Niño, the Pacific's warmest surface
increased—it has occurred six times since 2000. Two,
waters occurs offshore of northwestern South
Indian monsoons suffered in all but one of these years,
America (as El Nino begins when warm water in the
taking the probability of impact to over 80% in recent
western tropical Pacific Ocean shifts eastward along
times.
the equator toward the coast of South America.
Mechanism
Normally, this warm water pools near Indonesia and
• As discussed above, rise and cooling of the warm
the Philippines).
moist air in the atmosphere in the western part of the
• Prevailing easterly trade winds weaken and even
Pacific Ocean in the upper atmosphere results in its
reverse direction during the El Niño climate
division into at least two parts.
phenomenon.
• A part of this air moves towards the eastern Pacific
• The location of tropical storms shifts eastward
Ocean in the upper atmosphere and descends over
during an El Niño because atmospheric moisture is
the eastern Pacific Ocean and helps to sustain the
fuel for thunderstorms, and the greatest amount of
higher pressure there.
evaporation takes place above the ocean's warmest
• One part also descends near East Africa and aids the
water.
formation of the Mascarene High Pressure zone. This
• Record rainfall often strikes Peru, Chile and
increases the difference between the HP in the south
Ecuador during an El Niño year.
over Mascarene High Pressure zone and the LP in
• Fish catches offshore South America are typically
the Indian subcontinent. Thus more moisture laden
lower than normal as during El Niño years, warm
winds move towards the Indian Subcontinent.
water persists and deepens, and cold, upwelling,
nutrient rich water (which is present during normal
years) fails to reach surface and the marine life
migrates north and south, following colder water.
• Strong El Niños are also associated with above- • The name BrahMos is formed from the names of two
average precipitation in the southern tier of the rivers, the Brahmaputra of India and the Moskva of
United States from California to the Atlantic coast. Russia.
• Indonesia and northeastern South America tend • BrahMos is a two-stage supersonic (denoting a
toward drier-than-normal conditions. speed greater than that of sound) cruise missile
• Temperatures in Australia and Southeast Asia run that is first test-fired in June, 2001.
hotter than average. • It was developed as a joint venture between India and
• El Niño-caused drought can be widespread, Russia.
affecting southern Africa, India, Southeast Asia, • It has been demonstrated in various configurations in
Australia, the Pacific Islands and the Canadian land-attack, anti-ship and from the air.
prairies. • The Army and the Navy have already inducted the
• In general, warm El Niño events are characterized by missile, while the air-launched variant is undergoing
more tropical storms and hurricanes in the trials.
eastern Pacific and a decrease in the Atlantic, Gulf • It has a strike range of around 290 km and is
of Mexico and the Caribbean Sea. described as the world’s fastest supersonic cruise
• An El Niño creates stronger wind-shear and more- missile.
stable air over the Atlantic, which makes it harder • It is a two stage missile with a solid propellant booster
for hurricanes to form. engine as its first stage which brings it to supersonic
o However, the warmer-than-average ocean speed and then gets separated.
temperatures boost eastern Pacific hurricanes, • The liquid ramjet or the second stage then takes the
contributing to more-active tropical storm missile closer to 3 Mach speed in cruise phase.
seasons. • It carries a conventional warhead weighing 200 to 300
o Wind shear is defined as the amount of change kgs.
in the wind's direction or speed with increasing • It is the first supersonic cruise missile known to be in
altitude. service.
• Indian Ocean Dipole (IOD) Special Features:
o It is an atmosphere-ocean coupled phenomenon • Universal for multiple platforms
in the tropical Indian Ocean characterised by a • Fire and forget principle of operation
difference in sea-surface temperatures. • High supersonic speed all through the flight
o A ‘positive IOD’ — or simply ‘IOD’ — is • Long flight range with varieties of flight trajectories
associated with cooler than normal sea-surface • Low radar signature
temperatures in the eastern equatorial Indian • Shorter flight times leading to lower target dispersion
Ocean and warmer than normal sea-surface and quicker engagement
temperatures in the western tropical Indian • Pin point accuracy with high lethal power aided by
Ocean. large kinetic energy on impact
• Stealth technology and guidance system with
BRAHMOS
advanced software
• Context: In possibly the first sale of BrahMos
supersonic cruise missiles to another country, • Non-interception with any known system in the world.
Thailand is in talks with India for their purchase. (Pg Difference Between Ballistic Missiles and Cruise
12, The Hindu) Missiles
Analysis • Ballistic missiles are powered initially by a rocket or
BrahMos series of rockets in stages (first stage), but then

follow an unpowered (without fuel) curved trajectory
mostly above the atmosphere (second stage) before U.S. FEDERAL RESERVE
descending to reach its intended target (third stage). • Context: The U.S. Federal Reserve cut its key
Thus, Ballistic missiles have three stages of flight. interest rate for the first time since December 2008
• A ballistic missile is only guided during the initial during the depths of the Great Recession to try to
short boost phase, but minor corrections can be counter threats ranging from uncertainties caused by
made by means of control motors. President Donald Trump’s trade wars to chronically
• Ballistic missiles can carry either nuclear or low inflation and a dim global outlook. (Pg 14, The
conventional warheads. Hindu)
• Ballistic missiles with range less than 1,000 kilometers Analysis
are also known as “tactical” ballistic missiles. • US Fed is the central bank for the US, like RBI is for
• Ballistic missiles with range between 1,000 and 3,000 India.
kilometers are also known as “theater” ballistic • US Fed rate hike refers to the raising of interest rates
missiles. that the US Fed is willing to provide to the banks of
• Ballistic missiles whose range is more than 5,500 US for lending and borrowing activities.
kilometers (approximately 3,410 miles) are also • US raises its domestic interest rates-> US becomes
known as intercontinental or strategic ballistic more attractive destination to park funds by foreign
missiles. investors-> Foreign currency leaves developing
• Ballistic missiles first came into use during World War countries-> Demand for dollar increases in
II, when the Germans used them to attack London. international market making the currency of
• They can be launched from ground, air, sea or developing countries cheaper.
submarine platforms. • The U.S. Federal Reserve has announced that it
Cruise missiles would begin to gradually roll back its nine-year
• Cruise missiles are unmanned vehicles that are programme of quantitative easing (QE).
propelled by jet engines, much like an airplane. • The U.S. central bank resorted to QE in the
• They can be launched from ground, air, sea or immediate aftermath of the 2007-08 financial crisis in
submarine platforms. order to boost a falling economy by injecting money.
• Cruise missiles remain within the atmosphere for the • Under the programme, the central bank has been
duration of their flight and can fly as low as a few buying bonds and other debt instruments from the
meters off the ground. open market since 2008.
• Flying low to the surface of the earth expends more • Lower demand from the Federal Reserve should
fuel but makes a cruise missile very difficult to detect. cause interest rates on U.S. bonds to rise.
• Cruise missiles are self-guided and use multiple • Investors are likely to sell their other investments
methods to accurately deliver their payload, including offering lower returns to invest in U.S. bonds.
terrain mapping, global positioning systems (GPS) • When central banks increase official interest rates, it
and inertial guidance. is known as “monetary tightening”. This is because
Sriharikota Vs Wheeler Island the central banks typically try to restrict (or tighten)
• Sriharikota Island is located in Pulicat lake (Andhra economic growth by making it more expensive to
Pradesh). It houses India's satellite launch centre, borrow money. It helps to control the rate of inflation).
Satish Dhawan Space Centre
CORE SECTOR
• Abdul Kalam Island is located in Bay of Bengal, off the • Context: Core sector growth slows to 0.2%. (Pg 15,
coast of Odisha. Formerly known as Wheeler Island, The Hindu)
missile test facility for the most of Indian missiles Analysis
including long range ones is available here. • Index of Eight Core Industries (base: 2011-12).
• The Eight Core Industries comprise 40.27 % of the o Any provision for digital advertising space or
weight of items included in the Index of Industrial facilities/service for the purpose of online
Production (IIP). advertisement.
• The data relating to core industries is released by • India is the first country to impose such a levy, post
the Ministry of Commerce and Industry. the Organization for Economic Cooperation and
• The eight core industries are: Development (OECD) action plan.
o Petroleum Refinery Products (weight: 28.04%) • A tax panel has recommended expanding the ambit of
o Electricity (weight: 19.85%) this levy to cover a wide gamut of transactions
o Steel (weight: 17.92 %) including online marketing, cloud computing, website
o Coal production (weight: 10.33 %) designing, hosting and maintenance, platforms for
o Crude Oil (weight: 8.98 %) sale of goods and services, and online use of or
o Natural Gas (weight: 6.88 %) download of software and applications.
o Cement (weight: 5.37%)
FISCAL DEFICIT
o Fertilizer (weight: 2.63 %)
• Context: The government aims to restrict the fiscal
deficit to 3.4% of the GDP (gross domestic product) in
EQUALISATION LEVY
• Context: Domestic SMEs and start-ups have written the current fiscal, the same as last financial year. (Pg
to the government complaining about the equalisation 15, The Hindu)
levy they have to pay to foreign companies doing Analysis
business in India, resulting in increased costs as well Do you know?
as lost revenue for the government. • Gross Fiscal Deficit is defined as the excess of total
• The equalisation levy, introduced in 2016, is a direct expenditure of the government over the total non-debt
tax on payments made by residents to non-resident creating receipts.
companies for online advertisement, provision of • Net fiscal deficit can be arrived at by deducting net
digital and advertising space or any other facility or domestic lending from gross fiscal deficit .
service for online advertisement. (Pg 15, The Hindu) • Revenue deficit arises when the government’s actual
Analysis net receipts is lower than the projected receipts.
• The 2016 Union Budget announced an ‘equalisation o Revenue deficit signifies that government’s own
levy’ of 6 per cent on such transactions. earning is insufficient to meet normal functioning
• Equalisation Levy is a direct tax, which is withheld at of government departments and provision of
the time of payment by the service recipient. services.
• The two conditions to be met to be liable to o An increase in the ratio of revenue deficit to
equalisation levy: gross fiscal deficit indicates an increase in the
o The payment should be made to a non-resident utilization of borrowed funds for revenue
service provider; purposes.
o The annual payment made to one service • Trade deficit: A nation has a trade deficit if the total
provider exceeds Rs. 1,00,000 in one financial value of goods and services it imports is greater than
year. the total value of those it exports.
• Currently, not all services are covered under the ambit • Factor income: It is determined by subtracting
of equalisation Levy. income made by citizens of a country on their foreign
• The following services covered: investments from income earned by foreigners on
o Online advertisement; their investments within the country.

• Financial transfers: They include interest earnings
and foreign remittances.
• Current account deficit: trade deficit + factor • The Supreme Court (Number of Judges) Act, 1956
income + financial transfers was last amended in 2009 to increase the judges’
• Balance of payments: The balance of payments is strength from 25 to 31 (including the CJI).
the sum of all transactions between a nation and all of • The Supreme Court (Number of Judges) Act, 1956
its international trading partners. originally provided for a maximum of 11 judges
News in brief (including the CJI).
Anti-lynching law (Pg 10, The Hindu) • Every High Court (weather exclusive or common)
• The Uttar Pradesh Law Commission (UPLC) to consists of a chief justice and such other judges as
recommended a draft anti-lynching law. the President may from time to time deem necessary
• It commends a law which closely follows in almost to appoint.
every major detail the first law against lynching • Thus, the Constitution does not specify the strength of
passed in this country, a remarkable ordinance a High Court and leaves it to the discretion of the
introduced by the Manipur government late last President.
year, indeed the most significant statute against • Accordingly, the President determines the strength of
religious hate crimes in the country. a High Court from time to time depending upon its
India-Africa (Pg 10, The Hindu) workload.
• Forty-one African leaders participated in the last India- Already analysed in previous issues
Africa Forum Summit in 2015, where India agreed to • EVMs pg 6
provide concessional credit worth $10 billion during • Afghanistan US Peace Talks pg 14
the next five years. • US-China Trade War: Reasons pg 14
• India has also unilaterally provided free access to its
market for the exports of 33 least developed African
countries. STEM CELLS
• Context: Scientists in Japan will begin trying to grow
• India has substantive economic engagement with
human organs in animals after receiving government
Africa. Its trade with Africa totalled $63.3 billion in
permission for the first study of its kind in the country.
2018-19.
• The cutting-edge — but controversial — research
• India was ranked the third largest trading partner of
involves implanting modified animal embryos with
Africa having edged past the United States during the
human “induced pluripotent stem” (iPS) cells that can
year.
be coaxed into forming the building blocks of any part
Maharashtra (Pg 11, The Hindu)
of the body.
• In Maharashtra, the State government is promoting
• The modified embryos are then implanted with human
farm ponds under a flagship programme that aims to
iPS cells that can grow into the missing organs.
dig over one lakh structures by offering a subsidy of
• The embryos would be transplanted into wombs
up to ₹50,000 per farmer.
where they could theoretically be carried to term with
Supreme Court Strength (Pg 12, The Hindu)
a functioning human pancreas. (Pg 22, The Hindu)
• Against the backdrop of rising cases in the Supreme
Analysis
Court, the Union Cabinet approved increasing the
What are stem cells, and why are they important?
number of judges in the top court from the present 31
• Stem cells have the remarkable potential to develop
to 34, including the Chief Justice of India.
into many different cell types in the body during early
• At present, the sanctioned strength of the apex court
life and growth.
is 31.
• In addition, in many tissues they serve as a sort of
internal repair system, dividing essentially without limit
to replenish other cells as long as the person or • When unspecialized stem cells give rise to specialized
animal is still alive. cells, the process is called differentiation.
• When a stem cell divides, each new cell has the • While differentiating, the cell usually goes through
potential either to remain a stem cell or become several stages, becoming more specialized at each
another type of cell with a more specialized function, step.
such as a muscle cell, a red blood cell, or a brain cell. • Scientists are just beginning to understand the signals
• Stem cells are distinguished from other cell types by inside and outside cells that trigger each step of the
two important characteristics. differentiation process.
o First, they are unspecialized cells capable of • The internal signals are controlled by a cell's genes.
renewing themselves through cell division, • The external signals for cell differentiation include
sometimes after long periods of inactivity. chemicals secreted by other cells, physical contact
o Second, under certain physiologic or with neighbouring cells, and certain molecules in the
experimental conditions, they can be induced to microenvironment.
become tissue- or organ-specific cells with What are adult stem cells?
special functions. • An adult stem cell is thought to be an undifferentiated
❖ In some organs, such as the gut and bone cell, found among differentiated cells in a tissue or
marrow, stem cells regularly divide to repair and organ.
replace worn out or damaged tissues. • The adult stem cell can renew itself and can
❖ In other organs, however, such as the pancreas differentiate to yield some or all of the major
and the heart, stem cells only divide under specialized cell types of the tissue or organ.
special conditions. • The primary roles of adult stem cells in a living
Two kinds of stem cells organism are to maintain and repair the tissue in
• Until recently, scientists primarily worked with two which they are found.
kinds of stem cells from animals and humans: • Scientists also use the term somatic stem cell instead
embryonic stem cells and non-embryonic of adult stem cell, where somatic refers to cells of the
"somatic" or "adult" stem cells. body (not the germ cells, sperm or eggs).
• Embryonic stem cells, as their name suggests, are What are the similarities and differences between
derived from embryos. embryonic and adult stem cells?
• Most embryonic stem cells are derived from embryos • Embryonic stem cells can become all cell types of the
that develop from eggs that have been fertilized in body because they are pluripotent.
vitro—in an in vitro fertilization clinic—and then o Adult stem cells are thought to be limited to
donated for research purposes with informed consent differentiating into different cell types of their
of the donors. tissue of origin.
• They are not derived from eggs fertilized in a woman's • Embryonic stem cells can be grown relatively easily in
body. culture than the adult stem cells.
What are the unique properties of all stem cells? • Adult stem cells, and tissues derived from them, are
• Stem cells differ from other kinds of cells in the body. currently believed less likely to initiate rejection after
• All stem cells—regardless of their source—have three transplantation.
general properties: • Embryonic stem cells can proliferate for a year or
o they are capable of dividing and renewing more in the laboratory without differentiating, but most
themselves for long periods; adult stem cells cannot.
o they are unspecialized; and • Adult stem cells typically generate the cell types of the
o they can give rise to specialized cell types. tissue in which they reside.
o For example, a blood-forming adult stem cell in • A regulatory sandbox (RS) usually refers to live
the bone marrow normally gives rise to the many testing of new products or services in a controlled/test
types of blood cells but cannot give rise to the regulatory environment for which regulators may (or
cells of a very different tissue, such as nerve may not) permit certain regulatory relaxations for the
cells in the brain. limited purpose of the testing.
What are induced pluripotent stem cells? • The RS allows the regulator, the innovators, the
• Induced pluripotent stem cells (iPSCs) are adult cells financial service providers (as potential deployers of
that have been genetically reprogrammed to an the technology) and the customers (as final users) to
embryonic stem cell–like state by being forced to conduct field tests to collect evidence on the benefits
express genes and factors important for maintaining and risks of new financial innovations, while carefully
the defining properties of embryonic stem cells. monitoring and containing their risks.
Subhash Chandra Garg Panel
CRYPTOCURRENCIES • Recently, a government panel headed by senior
• Context: An editorial. (Pg 11, The Hindu)
bureaucrat Subhash Chandra Garg placed in the
Analysis
public domain a draft bill calling for a complete ban on
What are Cryptocurrencies?
private cryptocurrencies in India.
• Cryptocurrencies are “a stateless digital currency”
• The panel recommended a fine of up to ₹25 crore and
in which encryption techniques are used for trading
a jail term of up to 10 years for anyone found to be
and these ‘currencies’ operate independently of a
owning or handling private cryptocurrencies.
Central bank like the RBI, “rendering it immune from
• As an alternative to private cryptocurrencies, the
government interference”.
panel recommended the introduction of a single
Cryptocurrency and India
cryptocurrency, which would probably be based on
• There are an estimated three million bitcoins in
the blockchain, for the whole country that is backed by
circulation in India.
the Reserve Bank of India (RBI).
• Recently, the government has introduced 'Banning of
• Most people equate cryptocurrencies with blockchain,
Cryptocurrencies and Regulation of Official Digital
but there is a huge difference between them.
Currencies Bill 2019'.
o The cryptocurrency is just one application of the
• The draft bill that proposes a jail term for anyone
underlying blockchain technology. The
dealing in cryptocurrencies.
blockchain technology has a lot more potential
• Even, the RBI has not encouraged the use of bitcoins,
beyond cryptocurrencies.
and the sale of bitcoins currently is taxed in India.
• An issue raised against cryptocurrencies is that
• In December 2018, an RBI order banned entities
they aren’t really backed by an underlying
regulated by it to deal with, or provide services to
commodity or a sovereign government.
individuals or businesses dealing in virtual currencies.
• One of the most comprehensive sets of regulations for
• India’s central bank, the Reserve Bank of India (RBI),
cryptocurrencies is being brought in by the European
has unveiled its framework for a fintech regulatory
Union.
sandbox.
o The EU is putting in a bunch of regulations to
o While blockchain and smart contracts are
tackle money laundering, and it is called the
welcomed, the bank stated that cryptocurrency
AMLD-5.
and related services like initial coin offerings “are
o It is a bunch of norms to make crypto
not accepted for testing.”
transactions more secure.
The Regulatory Sandbox
Facebook’s Libra is a threat
• G7 Ministers agreed that cryptocurrencies such as o A large-scale ground operation to liberate
Facebook’s Libra risked destabilising the international Yemen’s Hodeidah city and its main port west of
monetary system and were not ready to be the country.
implemented. o It has been launched by Yemen forces supported
by the Arab coalition led by Saudi Arabia.
YEMEN CRISIS
• Context: 51 killed in multiple attacks in Yemen. (Pg • Operation Rahat:
14, The Hindu) o It was launched by India to evacuate its citizens
Analysis from Yemen in 2015 after an Arab coalition led
• Yemen crisis: Who is fighting whom? by Saudi Arabia and UAE intervened in Yemen.
o Yemen, one of the Arab world's poorest • India has also teamed up with the United Arab
countries, has been devastated by a civil war. Emirates in providing major humanitarian and post-
• How did the war start? traumatic medical support to the soldiers of Yemen
o Failed political transition following an Arab Spring who were injured in the ongoing war against the
rebels of that country.
uprising that forced its longtime authoritarian
president, Ali Abdullah Saleh, to hand over o So far, India has treated victims from Iraq and
power to his deputy Abdrabbuh Mansour Hadi, in Syria on a bilateral basis.
2011. o However this is the first time that such an

operation is being conducted through support
• President Hadi struggled to deal with a variety of
problems, including from a third country – the UAE.
o attacks by al-Qaeda, PURCHASING MANAGERS’ INDEX

o a separatist movement in the south, • Context: A monthly routine news. (Pg 16, The
o the continuing loyalty of many military officers to Hindu)
Mr Saleh, as well as Analysis
o corruption, unemployment and food insecurity. • ‘Purchasing Managers’ index’ is considered as an
• The Houthi movement (by Yemen's Zaidi Shia indicator of the economic health and investor
Muslim minority) took advantage of the new sentiments about the manufacturing sector (there is
president's weakness by taking control of their services PMI as well).
northern heartland of Saada province and • The PMI is constructed separately for manufacturing
neighbouring areas and later forcing Mr Hadi to flee and services sector. But the manufacturing sector
abroad. holds more importance.
• Disillusioned with the transition, many ordinary • In a PMI data, a reading above 50 indicates
Yemenis - including Sunnis - supported the Houthis. economic expansion, while a reading below 50
• Alarmed by the rise of Houthis - believed to be backed points shows contraction of economic activities.
militarily by regional Shia power Iran, Saudi Arabia • For India, the PMI Data is published by Japanese firm
and other mostly Sunni Arab states (UAE, Bahrain, Nikkei but compiled and constructed by Markit
Kuwait, Qatar, Jordan, Sudan, Egypt) began an air Economics.
campaign aimed at restoring Mr Hadi's government. • The variables used to construct India’s PMI are:
• The coalition received logistical and intelligence Output, New Orders, Employment, Input Costs,
support from the US, UK and France. Output Prices, Backlogs of Work, Export Orders,
• Island of Socotra – a UNESCO world Heritage Site Quantity of Purchases, Suppliers’ Delivery Times,
where UAE, coalition partner of Saudi Arabia had Stocks of Purchases and Stocks of Finished Goods.
deployed its security forces. How PMI is different from IIP
• Operation Golden Victory
• In contrast to volume based production indicator like • Besides, exports to Bangladesh, Vietnam, and
the IIP, the PMI senses dynamic trends because of Columbia have also declined. Cotton yarn from
the variables it use for the construction of the index. Pakistan and Vietnam get duty free access to China.
• For example, new orders under PMI show growth • If the domestic textile mills are supported through
oriented positive trends and not just volume of past interest subvention or refund of State taxes and levies,
production that can be traced in an ordinary Index of there will be some relief and the industry will become
Industrial Production. price competitive to explore new markets.
• Hence, the PMI is more dynamic compared to a Indus Valley Seals (Pg 22, The Hindu)
standard industrial production index. • A majority of the Indus Valley inscriptions were written
News in brief logographically (by using word signs) and not by using
Pink Toilets (Pg 4, The Hindu) phonograms (speech sounds units).
• An innovative concept called Pink Toilets has been • Discovered from nearly 4,000 ancient inscribed
developed by the National Commission for Protection objects, including seals, tablets, ivory rods, pottery
of Child Rights (NCPCR). shards, etc., the Indus inscriptions are one of the most
• 'PINK TOILETS"- toilets pink in colour so they are enigmatic legacies of the Indus Valley civilization
easily identifiable, protects privacy, provides sanitary which have not been deciphered due to the:
napkin vending machine, incinerators to burn them o absence of bilingual texts,
and prevent pollution, disable friendly etc. o extreme brevity of the inscriptions, and
• NCPCR and South Delhi Municipal Corporation o ignorance about the language(s) encoded by
inaugurated the first Pink Toilet in Delhi recently. Indus script.
Features and Facilities at the Pink Toilet Already analysed in previous issues
• Separate toilet facility only for women, adolescent • Kulbhushan Jadav Case and International Court of
girls, children Justice pg 1
• Pink coloured for easy identification by women • Kaziranga National Park pg 6
• Clean washrooms with both Indian and Western toilet • EVMs pg 7
facilities • National Disaster response Force pg 9
• Low height toilets and basins for children • Monsoon and associated concepts pg 9
• Availability of lady caretaker 24/7
THE HINDU ANALYSIS 3rd AUGUST 2019
• Sanitary napkin Vending Machines and Incinerators
for women (napkins available for marginal cost) INSTITUTE OF EMINENCE’ STATUS
• Private area for child care inside toilet campus • Context: The granting of 'Institute of Eminence’
• Seating area outside the pink toilet Status to 20 institutions is under consideration. (Pg 1,
• Availability of toilet location in the app The Hindu)
Cotton (Pg 16, The Hindu) Analysis
• India’s cotton yarn exports between April and June • The Institute of Eminence (IoE) scheme is aimed at
this year was 33% lower compared to the same developing 20 world-class institutions— 10 private
period last year, leading to concern among textile and 10 public — which would put India on the global
mills. education map.
• China is the main market for Indian cotton yarn • University Grants Commission chose to use the
exports. But, exports to China have dropped nearly criterion of the QS-2020 world rankings, with the QS-
50%. 2019 India rankings and NIRF rankings used as a

tie-breaker.
• Any institution that did not figure in any rankings was official communication allocating their share of funds
excluded completely. (up to 50%).
• Two types of institutions have been considered, those • The UGC’s recommendations will now be submitted
who are already ranked well and those which are to the Ministry for final grant of the status.
potential institutions. QS World University Rankings
Purpose and Regulation • The QS World University Rankings rank 1,000
• The first purpose of the IoE scheme is to take existing universities in 82 different locations, analyzed
universities to global competitive status, and so their through:
existing rankings are considered. o research impact,
• The other purpose is the need to get investment to o academic standing,
build up world class institutions, hence the greenfield o internationalization,
institutions on the list. o student/staff ratio,
• Those selected will be given greater autonomy and o graduate employability, and
freedom to decide fees, course durations and o teaching capacity.
governance structures. • From India, IIT Bombay, IIT Delhi and IISc Bangalore
• The public institutions will also receive a government made it to top 200 of QS World Rankings - 2020.
grant of ₹1,000 crore, while the private institutions National Institutional Ranking Framework (NIRF)
will not get any funding under the scheme. • It was launched by Ministry of Human Resource
• The selected institutes shall be regulated differently Development in September
from other deemed to be universities so as to evolve 2015.
into institutions of world class in a reasonable time • It ranks all institutions of higher education in India on
period. the basis of certain parameters.
Recommended Institutes • The parameters broadly cover “Teaching, Learning
• The institutions which have been recommended for and Resources,” “Research and Professional
IoE status are IITs Delhi, Bombay, Madras and Practices,” “Graduation Outcomes,” “Outreach and
Kharagpur, Delhi University, University of Hyderabad, Inclusivity,” and “Perception”.
Amritha Vishwa Vidyapeetham, VIT, IISc Bangalore, • The National Institutional Ranking Framework (NIRF),
BITS Pilani, Manipal University, and the yet-to-open implemented in 2016, is India’s first government-
Jio University (greenfield institutions), Jamia Hamdard, supported ranking of colleges and universities.
Kalinga Institute of Industrial Technology, OP Jindal • There are separate rankings for different types of
University, Shiv Nadar University, Benares Hindu institutions depending on their areas of operation like
University, Satya Bharti University (greenfield universities and colleges, engineering institutions,
institution), Anna University and Jadavpur University. management institutions, pharmacy institutions and
• Savitribai Phule Pune University and Aligarh Muslim architecture institutions.
University are both in the same 801-1,000 ranking • “India Rankings 2018” have ranked institutions in the
slab in the QS World rankings as the Benares Hindu disciplines/categories mentioned above, and have
University; however, BHU squeaked through as it also provided a common overall rank across all
was higher placed than the other two in the India disciplines for those institutions which have more
rankings. than 1000 enrolled students.
• Anna University and Jadavpur University have been
given the IoE tag on a conditional basis as they are
state universities, and will be finalised only after the
Tamil Nadu and West Bengal governments issue an
UNLAWFUL ACTIVITIES (PREVENTION) • The Bill adds another treaty to the list. This is the
AMENDMENT BILL, 2019 International Convention for Suppression of Acts
• Context: The Unlawful Activities (Prevention) of Nuclear Terrorism (2005).
Amendment Bill, 2019 has been passed by the
THE MOTOR VEHICLES (AMENDMENT) BILL,
Parliament. (Pg 1, The Hindu)
2019
Analysis
• Context: The Rajya Sabha introduced last-minute
• The Bill amends the Unlawful Activities (Prevention)
changes, making concurrence of, rather than
Act, 1967. The Act provides special procedures to
consultation with States necessary when issuing
deal with terrorist activities, among other things.
fresh schemes for national, multimodal, and inter-
Who may commit terrorism:
State transport. The Bill amends the Motor Vehicles
• Under the Act, the central government may designate
Act, 1988. (Pg 10, The Hindu)
an organisation as a terrorist organisation if it:
Analysis
o (i) commits or participates in acts of terrorism,
Compensation for road accident victims
o (ii) prepares for terrorism,
• The central government will develop a scheme for
o (iii) promotes terrorism, or
cashless treatment of road accident victims
o (iv) is otherwise involved in terrorism.
during golden hour.
• The Bill additionally empowers the government to
o The Bill defines golden hour as the time period of
designate individuals as terrorists on the same
up to one hour following a traumatic injury, during
grounds.
which the likelihood of preventing death through
Approval for seizure of property by NIA:
prompt medical care is the highest.
• Under the Act, an investigating officer is required to
• The Bill increases the minimum compensation for hit
obtain the prior approval of the Director General of
and run cases as follows:
Police to seize properties that may be connected with
o (i) in case of death, from Rs 25,000 to two lakh
terrorism.
rupees, and
• However, if the investigation is conducted by an
o (ii) in case of grievous injury, from Rs 12,500 to
officer of the National Investigation Agency (NIA), the
Rs 50,000.
approval of the Director General of NIA would be
Motor Vehicle Accident Fund
required for seizure of such property.
• The Bill provides for a Motor Vehicle Accident Fund
Investigation by NIA:
which would provide compulsory insurance cover to
• Under the Act, investigation of cases may be
all road users in India for certain types of accidents.
conducted by officers of the rank of Deputy
Taxi aggregators
Superintendent or Assistant Commissioner of Police
• The Bill defines aggregators as digital intermediaries
or above.
or market places which can be used by passengers to
• The Bill additionally empowers the officers of the NIA,
connect with a driver for transportation purposes (taxi
of the rank of Inspector or above, to investigate cases.
services).
Insertion to schedule of treaties:
• These aggregators will be issued licenses by states.
• The Act defines terrorist acts to include acts
• Further, they must comply with the Information
committed within the scope of any of the treaties listed
Technology Act, 2000.
in a schedule to the Act.
National Road Safety Board
• The Schedule lists nine treaties, including the
• The Bill provides for a National Road Safety Board.
Convention for the Suppression of Terrorist Bombings
• The Board will advise the central and state
(1997), and the Convention against Taking of
governments on all aspects of road safety and traffic
Hostages (1979).
management including:
o (i) standards of motor vehicles, traditionally protecting and conserving for sustainable
o (ii) registration and licensing of vehicles, use.
o (iii) standards for road safety, and • It has the provision for creating critical wildlife habitats
o (iv) promotion of new vehicle technology. within protected areas which currently is the strongest
• The Bill also provides for: conservation provision among existing laws of the
o (i) amending the existing categories of driver country.
licensing, Significance of the Scheduled Tribes and Other
o (ii) recall of vehicles in case of defects, Traditional Forest Dwellers (Recognition of Forest
o (iii) protection of good samaritans from any civil Rights) Act, 2006:
or criminal action, and • For the first time Forest Rights Act recognises and
o (iv) increase of penalties for several offences secures Community Rights or rights over common
under the 1988 Act, including that for the drivers, property resources of the communities, in addition to
vehicle manufacturer, contractors who fail to their individual rights;
comply with road design standards etc. • Rights in and over disputed land Rights of settlement;
Brasilia Declaration • Conversion of all forest villages, old habitation, un-
• India, as a signatory to the Brasilia Declaration, surveyed villages and other villages in forests into
intends to reduce road accidents and traffic fatalities revenue villages;
by 50% by 2022 – a key milestone within the new • Right to protect, regenerate, conserve or manage any
Sustainable Development Goal (SDG) target 3.6. community forest resource which the communities
Indian Roads Congress have been traditionally protecting and conserving for
• The Indian Roads Congress (IRC) is the Apex Body of sustainable use;
Highway Engineers in the country. • Right to intellectual property and traditional knowledge
• The IRC was set up in December, 1934 on the related to biodiversity and cultural diversity
recommendations of the Indian Road Development • Rights of displaced communities
Committee best known as Jayakar Committee set up • Rights over developmental activities
by the Govt. of India with the objective of Road The Act is a potential tool:
Development in India. • To empower and strengthen the local self governance
• To address the livelihood security of the people,
FOREST RIGHTS ACT, 2006 leading to poverty alleviation and pro poor growth
• Context: An editorial. (Pg 10, The Hindu)
• To address the issues of Conservation and
Analysis
management of the Natural Resources and
• The Forest Rights Act (FRA) is a piece of social
conservation governance of India.
legislation which aims to address the historical
Do you know?
injustice that our forest dwelling communities have
• India is amongst the few countries of the world where
had to face for nearly 150 years by providing them
forests are growing in spite of exponentially rising
with security of tenure over land for cultivation and
population and livestock pressures.
habitation through individual rights.
• India has set a target of raising its existing 21.54%
• It also provides access to a variety of resources
forest cover to 33% of the total geographical area
through more than a dozen types of community forest
through aggressive forestation drives.
rights.
• The FRA also empowers forest dwelling communities FOUNDATIONAL AGREEMENTS BETWEEN INDIA
to protect, regenerate, conserve and manage any AND U.S.
• Context: India has signed three of the four
community forest resource which they have been
foundational agreements with the U.S., and
discussions are under way on the final one, Basic • Article 35A is a provision in the Indian Constitution
Exchange and Cooperation Agreement, for close that gives the Jammu and Kashmir Legislature
defence industry collaboration and cooperation. (Pg powers to decide who all are ‘permanent residents’
13, The Hindu) of the State and confer on them special rights and
Analysis privileges in
Foundational Agreements between India and U.S. o public sector jobs,
• India has already signed the Communications o acquisition of property in the State,
Compatibility and Security Agreement (COMCASA), o scholarships and other public aid and welfare.
the General Security of Military Information • The provision mandates that no act of the legislature
Agreement (GSOMIA) and the Logistics Exchange coming under it can be challenged for violating the
Memorandum of Agreement (LEMOA). Constitution or any other law of the land.
o The most significant of them is LEMOA, which • Article 35A was incorporated into the Constitution in
gives both nations access to each other’s military 1954 by an order of the then President Rajendra
facilities. But it does not make it automatic or Prasad on the advice of the Jawaharlal Nehru
obligatory. Cabinet.
o The COMCASA provides the legal mechanism to • The Presidential Order was issued under Article 370
allow for exchange of cyber communications, (1) (d) of the Constitution.
surveillance data, transfer of communication • This provision allows the President to make certain
equipment and setting up secure (encrypted) “exceptions and modifications” to the Constitution for
communication channels from the U.S. origin the benefit of ‘State subjects’ of Jammu and Kashmir.
military platforms.
INTERMEDIATE-RANGE NUCLEAR FORCES (INF)
• But U.S. is pressing India to sign Basic Exchange
TREATY
and Cooperation Agreement for Geospatial • Context: The U.S. and Russia terminated a Cold
Information and Services Cooperation. War-era missile pact in a move that raised the spectre
• India fears that signing these agreements would mean of an arms race between the global superpowers. (Pg
compromising India's age-old military-ties with Russia 14, The Hindu)
and access to their weaponry system. Analysis
• These foundational agreements are essential to take • The 1987 Intermediate-Range Nuclear Forces (INF)
high technology cooperation to the next level like treaty had limited the United States and Russia from
allowing India to purchase Guardian Avenger armed fielding land-based missiles with a range between 500
drones from the U.S. and 5,500 kilometers, both conventional and nuclear.
Do you know? • Now only one major bilateral agreement, New START,
• Today, the U.S. is the country with which India limits the U.S. and Russian nuclear arsenals.
undertakes the largest number of military exercises. • Washington and Moscow have predictably blamed the
• In 2016, India was designated as a ‘Major Defence other side’s violations for the treaty’s demise.
Partner’ country. • But the real reason the INF Treaty collapsed is that
• Recently, India has been included in the Strategic the Cold War-era balance of military power—the
Trade Authorisation-1 (STA-1) category, putting it security environment in which it was signed—has
on a par with allies in terms of technology access. changed fundamentally. In a multi-polar world (read
ARTICLE 35A OF THE INDIAN CONSTITUTION the rise of China), bilateral arms control agreements
• Context: Kashmir parties warn against plan to make much less sense.
remove Article 35-A. (Pg 13, The Hindu) • That's why U.S. President Donald Trump demanded
Analysis that the arms control agreement be renegotiated to
include China which was not hindered to develop gathering, validation, report generation and
missiles under any of such treaties. dissemination.
New START Easing of Monetary Policy (Pg 10, The Hindu)
• The New Strategic Arms Reduction Treaty (New • In response to the global economic slowdown as well
START) is a bipartisan process of verifiably reducing as generally subdued inflationary pressures, many
U.S. and Russian strategic nuclear arsenals. Asian central banks (India, China, Indonesia,
• New START is the first verifiable U.S.-Russian Malaysia, the Philippines, South Korea) have begun
nuclear arms control treaty to take effect since START to ease monetary policy.
I in 1994. o In this policy, interest rates are lowered to make
News in brief loans available to the industry at cheaper rates.
Census 2021 (Pg 9, The Hindu) • However, this generalised loosening has happened
• Census 2021 is unlikely to collect “caste wise” data as largely following the recent signals from the U.S. Fed
a similar exercise conducted in 2011 by another that it is set to embark on a new round of rate cuts in
ministry threw up about 40 lakh caste names that response to the slowdown in the United States and
were difficult to tabulate. the rest of the world.
• There will be a third gender category this time. Then what if short-term interest rates are at or
• Every citizen is compelled by law to participate in the approaching zero?
Census exercise and denial could lead to criminal Quantitative Easing!!
action. • Quantitative easing is an unconventional monetary
• The responsibility of conducting the decennial Census policy in which a central bank purchases government
rests with the Office of the Registrar General and securities or other securities from the market in order
Census Commissioner under the Ministry of Home to increase the money supply and encourage lending
Affairs. and investment.
• This office was also entrusted with the responsibility • When short-term interest rates are at or approaching
of implementation of Registration of Births and Deaths zero, normal open market operations, which target
Act, 1969 in the country. interest rates, are no longer effective, so instead a
• The first census was conducted in India in 1872 non- central bank can target specified amounts of assets to
synchronously in different parts. purchase.
Economic Census (Pg 9, The Hindu) • Quantitative easing increases the money supply by
• The Economic Census Division, Ministry of Statistics purchasing assets with newly created bank reserves
and Programme Implementation carries out economic in order to provide banks with more liquidity.
census every five years. Already analysed in previous issues
• Economic census is the complete count of all • Kulbhushan Jadav Case and International Court of
establishments located within the geographical Justice pg 13
boundary of India. • EVMs pg 7
• The economic census provided disaggregated • National Disaster response Force pg 7
information on various operational and structural • Disqualification of MPs/MLAs under anti-defection law,
variables of all establishments of the country. 10th Schedule, Articles 191/192 etc pg 1
• The seventh census would witness the use of • National Register, Foreign Tribunals pg 1
Information Technology for data collection. The • Tripal Talaq pg 1
enumerators and supervisors engaged by the • Chandrayaan-2 pg 9
Common Service Centres have been trained to collect • US-Taliban Peace Talks pg 14
data on a mobile application developed for data • Yemen Crises pg 14
THE HINDU ANALYSIS 4th AUGUST 2019 • Six years later, the main stumbling blocks for the
RCEP are the India-China trade relationship, as well
REGIONAL COMPREHENSIVE ECONOMIC
as some concerns from Australia and New Zealand
PARTNERSHIP (RCEP)
• Context: The Association of South East Asian on labour and environmental protections.
Nations (ASEAN), which announced the idea of a • In May this year, China proposed a plan to
Regional Comprehensive Economic Partnership conclude the negotiations without the naysayers,
(RCEP) in 2012, is pushing stakeholders to conclude i.e. take the ASEAN+3 (China, Japan and South
talks by the end of 2019 and take it forward. (Pg 13, Korea) into the agreement, while leaving space for
The Hindu) India, Australia and New Zealand to join later.
• To get the files daily, just drop a msg at Malaysia also echoed the idea.
selfstudynotesforias@gmail.com Why is India holding up the deal?
Analysis • India’s chief concern with the RCEP is the fact that it
• The concept of the Regional Comprehensive needs to protect its economy from the flooding of
Economic Partnership (RCEP) was promoted by the cheap imports from China.
Association of South East Asian Nations (ASEAN) • Of all the countries in the RCEP, India is the only one
countries (Brunei Darussalam, Cambodia, Indonesia, not involved in any bilateral or multilateral
Lao PDR, Malaysia, Myanmar, the Philippines, negotiations for an FTA with China, and the worry for
Singapore, Thailand and Viet Nam) and six ASEAN the government and industry is that an FTA within the
FTA partners (Australia, People’s Republic of RCEP will just become a cover for duty free trade into
China, India, Japan, Republic of Korea, and New India for Chinese goods particularly affecting
Zealand) in 2011, but an RCEP declaration came at manufacturers of steel and aluminium, copper,
the ASEAN summit in Phnom Penh in 2012, and pharmaceuticals and textile, which will be the worst hit
negotiators met for the first time in 2013. in such a scenario.
• The RCEP includes countries that make up 45% of • RCEP negotiators have thus far agreed to allowing
the world’s population with 33% of its GDP, and at India a differential tariff ladder, for its FTA partners
least 28% of all trade in the world today. and its non-FTA partners (China, Australia and
• The RCEP is modelled on FTAs of the ASEAN group New Zealand) within the grouping.
with others and hence it is in an ASEAN+1 FTAs • India has asked for strict “Rules of Origin” markings
format. on all goods, so they don’t come in through a third
o ASEAN +1 FTAs refers to the FTAs that ASEAN country.
group have signed with each of the neighbouring • In addition, India wants to ensure the free flow of
six countries – China, Japan, Korea, India, services (manpower) to RCEP countries as well, but
Australia and New Zealand. has faced an uphill task as most countries tighten
COVERAGE AREAS their immigration laws.
• The RCEP negotiation includes: trade in goods, trade • Except the Philippines, Laos, Myanmar and
in services, investment, economic and technical Cambodia, India has a trade deficit with all the
cooperation, intellectual property, competition, dispute remaining countries of RECP.
settlement, e-commerce, small and medium • In decreasing order, the largest trade deficits of India
enterprises (SMEs) and other issues but does not within the RECP are with: China > South Korea >
set environmental or labour standards. Indonesia > Australia
• RECP countries proposes that 90% of traded items • During the current round of talks in Melbourne,
should be tariff-free. trade negotiators are focusing on market access for
Stumbling blocks for the RCEP goods, services, and investment as well as
negotiations on Rules of Origin, Intellectual • Quantitative Measures: These are the traditional
Property and E-commerce. measures of monetary control. All the quantitative
methods affect the entire credit market in the same
OPEN MARKET OPERATIONS (OMOs)
• Context: An article. (Pg 14, The Hindu) direction. This means their impact on all the sectors of
Analysis the economy is uniform.
• Open Market Operations are defined as purchase and • Qualitative Measures: The credit objectives of these
sale by central bank of variety of assets such as methods may include rationing the credit, directing the
foreign exchange, gold, Government securities or flow of credit from least important sectors to the most
treasury bills and even company shares. important sectors, controlling a speculating tendency
• The objective of OMO is to regulate the money based on the availability of bank credit.
supply (liquidity) in the economy.

o Liquidity has a bearing on both interest rates
and inflation rates.
• When the RBI wants to increase the money supply in
the economy, it purchases the government securities
from the market and it sells government securities to
suck out liquidity from the system.
• RBI carries out the OMO through commercial banks
The qualitative instruments of the monetary policy
and does not directly deal with the public.
are:
• OMO is one of the major monetary policy
instruments that RBI uses to smoothen the liquidity
conditions through the year and minimise its impact
on the interest rate and inflation rate levels.
• These operations are often conducted on a day-to-
day basis in a manner that balances inflation while
helping banks continue to lend.
• The RBI uses OMO along with other monetary
policy tools such as repo rate, cash reserve ratio and
statutory liquidity ratio to adjust the quantum and price
of money in the system.
• If central bank signals that it will move to a ‘neutral’
liquidity stance from a ‘deficit’ stance, it means
more liquidity in the system in future. This could arm
banks with more funds for lending, and lead to softer
Credit rationing
interest rates in the economy.
• Credit rationing is the limiting by lenders of the supply
MONETARY VS FISCAL POLICY
of additional credit to borrowers who demand funds,
• Monetary policy (formulated by the central bank or
even if the latter are willing to pay higher interest rates.
currency board) controls the supply of money, often
The quantitative instruments of the monetary policy
targeting an inflation rate or interest rate to ensure
are:
price stability and general trust in the currency.
Bank rate
Instruments of Monetary Policy
• It is the rate of interest which a central bank charges
These instruments can be categorized as:
on its loans and advances to a commercial bank.
Cash Reserve Ratio (CRR) • The Repo Rate increases the money supply while
• Banks need to hold some portion of their deposits in the Reverse Repo Rate decreases the money
cash with the RBI. This ratio is called CRR. supply in the economy.
• If the RBI cuts CRR, banks will be left with more What is Marginal Standing Facility?
money to lend or invest. On the other hand, if the • Marginal Standing Facility is a liquidity support
CRR is raised, banks will have lesser money to lend. arrangement provided by RBI to commercial banks if
Statutory Liquidity Ratio (SLR) the latter doesn’t have the required eligible securities
• Banks also have to invest a certain portion of their above the SLR limit.
deposits in government securities with the RBI. This • Under MSF, a bank can borrow one-day loans from
percentage is known as SLR. the RBI, even if it doesn’t have any eligible securities
• Banks can earn return on these investments. The excess of its SLR requirement.
current SLR is 19.5%. • In the case of MSF, the bank can borrow up to 1 %
What is the repo rate? (can be changed by the RBI) below the SLR (means
• Repo rate refers to the rate at which commercial 1% of Net Demand and Time Liabilities or liabilities
banks borrow money from the Reserve Bank of India simply).
(RBI) in case of shortage of funds at a fixed interest • But the main condition is that for such borrowings
rate. the bank has to give higher interest rate to the RBI.
• Technically, a repo is also known as “Repurchasing • The interest rate for MSF borrowing was originally
Option”. set at one percent higher than the repo rate. Now
o a. Banks provide eligible securities (securities it is 0.25% higher than repo rate.
recognized by the RBI and at the same time • The Reserve Bank will reserve the right to accept or
which are above the Statutory Liquidity reject partially or fully, the request for funds under this
Ratio limit). facility.
o b. RBI gives 1 day or overnight loan to the bank. Monetary Vs Fiscal Policy
o c. RBI charges an interest rate called repo rate • Monetary policy involves changing the interest rate
from the bank. and influencing the money supply.
o d. Banks repay the loan after one day and • Fiscal policy involves the government changing tax
repurchase the security it has given as collateral. rates and levels of government spending to influence
• The higher the repo rate, the higher the cost of short- aggregate demand in the economy.
term money to the banks and vice versa. Administered by:
• Generally, whenever the repo rate is raised, banks • Fiscal policy: Ministry of Finance
pass the burden on to customers. • Monetary policy: Central Bank/RBI
What is the reverse repo rate? Focuses on:
• A Reverse repo rate is a rate which the RBI offers to • Fiscal policy: Economic Growth
banks when they deposit their surplus cash with the • Monetary policy: Economic Stability
RBI for shorter periods. Political influence:
• In other words, it is the rate at which the RBI borrows • Fiscal policy: Yes
from the commercial banks. • Monetary policy: No
• When banks have excess funds but don’t have any • Monetary policy is quicker to implement. Interest rates
other lending or investment options, they deposit/lend can be set every month.
the surplus funds with the RBI and earn interest on • A decision to increase government spending may take
the deposited funds. time to decide where to spend the money.
• It is always lower than repo rate. Monetary Policy Committee (MPC)
• The Monetary Policy Committee (MPC) is a • In case the inflation target is failed to achieve (2%
committee of the Central Bank in India (Reserve Bank higher or lower than the set target of 4% for
of India), headed by its Governor. continuous three quarters), the RBI has to give an
• It is entrusted with the task of fixing the benchmark explanation to the government about the reasons, the
policy interest rate (repo rate) to contain inflation remedial actions and the estimated time for realizing
within the specified target level. the target.
o Repo rate is the rate at which the central bank of • Another responsibility for the RBI is to publish a
a country lends money to commercial banks in Monetary Policy Report every six months, elaborating
the event of any shortfall of funds. It is also used inflation forecasts and inflation sources for the next six
by monetary authorities to control inflation. to eighteen months.
o Reverse repo rate is the rate at which the • MPC uses 'headline inflation' to take its decision.
central bank of a country borrows money from Headline inflation is the raw inflation figure reported
commercial banks within the country. It is a through the Consumer Price Index (CPI).
monetary policy instrument which can be used to
CANINE DISTEMPER VIRUS (CDV)
control the money supply in the country. • Context: Gir lions are threatened by the Canine
• It is defined and constituted under the Reserve Bank distemper virus. (Pg 15, The Hindu)
of India Act, 1934 to provide for a statutory and Analysis
institutionalised framework, for maintaining price
• Canine distemper is a contagious and serious disease
stability, while keeping in mind the objective of growth. caused by a virus that attacks the respiratory,
Composition: gastrointestinal and nervous systems of puppies and
• The new MPC is to be a six-member panel. dogs.
• It will feature three members from the RBI — the • The virus can be found in wildlife such as foxes and
Governor, a Deputy Governor and another official — wolves and has also been reported in lions, tigers,
and three independent members to be selected by the leopards and other wild cats as well as seals.
Government. • The Canine Distemper Virus (CDV) that killed
• A search committee will recommend three external dozens of lions in Gir, Gujarat belongs to one of the
members, experts in the field of economics, banking groups of viruses called the morbillivirus.
or finance, for the Government appointees. o Rinderpest, a morbillivirus, that created havoc
• The meetings of the Monetary Policy Committee shall along livestock, including wild ruminants like gaur,
be held at least 4 times a year and it shall publish its has been eradicated from the planet by
decisions after each such meeting. systematic vaccination program.
• The decisions on monetary policy are taken by a • The CDV in lions is a recent phenomenon as evident
majority vote. from large scale deaths in Serengeti, Africa and Gir,
o And if there’s a tie, the RBI governor gets the India.
deciding vote. • The virus not only be transmitted directly when
• The Members of the Monetary Policy Committee coming into contact with the body fluids of infected
appointed by the Central Government shall hold office
animals, and through contaminated water and food
for a period of four years. but also can be transmitted airborne.
• Inflation Targets: • Canine distemper is endemic to the Indian
o Inflation Target: Four per cent. subcontinent.
o Upper tolerance level: Six per cent. • There is no treatment for canine distemper, but wild
o Lower tolerance level: Two per cent. animals that survive the disease probably develop
lifelong immunity.
TRANSITING EXOPLANET SURVEY SATELLITE
• Context: TESS, NASA’s mission to search for
exoplanets, may have found the first potentially
habitable world.
• The superEarth exoplanet is named Gj 357 d, which
is only 31 light years away, was discovered earlier this
year. (Pg 15, The Hindu)
Analysis
• NASA's Transiting Exoplanet Survey Satellite (TESS)
is the next step in the search for planets outside of
our solar system, including those that could support
life. • Tess will look for dips in the visible light of stars,
• The mission will find exoplanets that periodically which requires that planets cross stars in our line of
block part of the light from their host stars, an sight.
occurrence known as transits. • Repetitive, periodic dips can reveal a planet or planets
• TESS will survey 200,000 of the brightest stars near orbiting a star.
the sun to search for transiting exoplanets. • Transit photometry, which looks at how much light
• TESS launched in April 2018, aboard a SpaceX an object puts out at any given time, can tell
Falcon 9 rocket. researchers a lot about a planet.
What is the current exoplanet count? o Based on how much of a dip in light a planet
• As of now, the number of known exoplanets stands at causes in its star, we can determine that
over 3,700. planet’s size.
• Another 4,500 objects are strong contenders to o Looking at how long it takes a planet to orbit its
become exoplanets. star, scientists are able to determine the shape
• About 50 are believed to potentially habitable. of the planet’s orbit and how long it takes the
• They have the right size and the right orbit to support planet to circle its sun.
surface water and, at least theoretically, to support life. • The stars TESS will study are 30 to 100 times brighter
What will TESS do? than those the Kepler mission and K2 follow-up
• According to NASA, TESS scientists expect the surveyed, which will enable far easier follow-up
mission will catalogue thousands of planet candidates observations with both ground-based and space-
and vastly increase the current number of known based telescopes.
exoplanets. • TESS will also cover a sky area 400 times larger than
• Of these, approximately 300 are expected to be that monitored by Kepler.
Earth-sized and super-Earth-sized exoplanets, which Exoplanets
are worlds no larger than twice the size of Earth. • An exoplanet is a planet that orbits a star outside our
How does it plan to do this? solar system.

• Exoplanets are very hard to see directly with
telescopes as they are hidden by the bright glare of
the stars they orbit.
• So, astronomers use other ways to detect and study
these distant planets. They search for exoplanets by
looking at the effects these planets have on the stars
they orbit.
How do we look for exoplanets? • We now know that exoplanets are very common in
• One way to search for exoplanets is to look for the universe. And future NASA missions have been
"wobbly" stars. planned to discover many more!
o An orbiting planet causes a star to orbit slightly Goldilocks Zone
off-center. From a distance, this makes it look • The Goldilocks Zone refers to the habitable zone
like the star is wobbling. around a star where the temperature is just right -
• Hundreds of planets have been discovered using this not too hot and not too cold - for liquid water to
method. exist on an planet.
o However, only big planets—like Jupiter, or even • Looking for planets in the Goldilocks Zone is a way
larger—can be seen this way. that allows scientists to hone in their search for Earth-
o Smaller Earth-like planets are much harder to like planets that could contain life.
find because they create only small wobbles that • The location of a Goldilocks Zone around another star
are hard to detect. depends on the type of star.
How can we find Earth-like planets in other solar • Bigger hotter stars have their Goldilocks Zones further
systems? out, while smaller cooler stars such as M-type red
• In 2009, NASA launched a spacecraft called Kepler dwarf stars have habitable zones much closer in.
to look for exoplanets. • Red dwarfs are the most common type of star in the
• Kepler looked for planets in a wide range of sizes Milky Way galaxy, and have very long life
and orbits. expectancies.
• And these planets orbited around stars that varied in • This means life should have lots of time to evolve and
size and temperature. develop around such as star.
Kepler detected exoplanets using something called • Observations by the European Southern
the transit method. Observatory's High Accuracy Radial velocity Planet
• When a planet passes in front of its star, it’s called a Searcher, has concluded about 40 per cent of red
transit. dwarfs have super-Earth class planets orbiting in their
• As the planet transits in front of the star, it blocks out habitable zone.
a little bit of the star's light. • Alternatively, NASA's planet hunting Kepler space
• That means a star will look a little less bright when the telescope searches for planets orbiting in the
planet passes in front of it. habitable zones of Sun-like stars by looking for
• Astronomers can observe how the brightness of the planets with an average 365-day orbit.
star changes during a transit. More than just temperature
o This can help them figure out the size of the • Just because a planet or moon is in the Goldilocks
planet. Zone of a star, doesn't mean it's going to have life or
o By studying the time between transits, even liquid water.
astronomers can also find out how far away the • After all, Earth isn't the only planet in the Sun's
planet is from its star. Goldilocks Zone - Venus and Mars are also in this
o This tells us something about the planet’s habitable zone, but aren't currently habitable.
temperature. If a planet is just the right • Venus is Earth's sister planet, both are about the
temperature, it could contain liquid water—an same size and in the same region of the solar system,
important ingredient for life. and Venus once also had water.
• So far, thousands of planets have been discovered o However, Venus now has a runaway greenhouse
by the Kepler mission. effect going on, with a surface temperature of
over 460 degrees Celsius, which has boiled o Any researcher who plans to conduct a trial
away all its liquid water. involving human participants, of any intervention
• At the other end of the Sun's Goldilocks Zone is Mars as well as trials being conducted in the
which also once had liquid water flowing across its purview of the Department of AYUSH is
surface in rivers, lakes and oceans. expected to register the trial in the CTRI before
o However, the Red Planet is now a freeze-dried enrolment of the first participant.
desert, with a thin carbon dioxide atmosphere, o Registration of clinical trials in the CTRI is now
and only one 99th the atmospheric pressure of mandatory.
sea level on Earth. • Prerequisites of conducting a clinical trial in India
o The lack of both a significant atmosphere and a o Permission from the Drugs Controller General,
global magnetic field - thanks to its mostly India (DCGI).
solidified core - means the Martian surface is o Approval from respective Ethics Committee
constantly being irradiated by the Sun. where the study is planned.
o Mandatory registration on the Clinical Trials
CLINICAL TRIALS
• Context: Nestle India Ltd. is now under the Union Registry of India.
Health Ministry’s scanner for conducting clinical trials • The Drug Controller General of India is the main
on 75 premature babies in five hospitals on licensing authority. It issues the permissions for new
drugs and devices and oversees clinical trials.
substitutes for breast milk in complete contravention
of the relevant laws. (Pg 20, The Hindu) • The National Pharmaceutical Pricing Authority
Analysis sets drug prices.
Clinical Trials • The Drugs and Cosmetics Act has a special
• No new drug can be launched in India without it provision to accept international trial data or other
undergoing clinical trial in the country. information, to allow import, and to waive the clinical
• India has 17% of global population and 20% of global trial requirement in the interest of public health.
disease burden. • A clinical trial may also be waived for drugs that are
• Less than 1.4% of all global clinical trials are done in approved and have been used in other countries for
India. many years.
• Clinical trials are approved by the Drug Controller Human Clinical Trials
General of India (DCGI). • Central Drugs Standard Control Organization
• Recent revival of clinical trials in India is because of • The Central Drugs Standard Control
introduction of scientific and balanced guidelines Organisation(CDSCO)under Directorate General of
that suit all stakeholders. Health Services,Ministry of Health & Family
• India has begun harmonizing the clinical trial Welfare,Government of India is the National
environment as per international standards: Regulatory Authority (NRA) of India.
o now 50% of the trials can be conducted in private • Under the Drug and Cosmetics Act, the regulation of
hospitals, manufacture, sale and distribution of Drugs is

primarily the concern of the State authorities while
o there is no restriction of three trials per
investigator and the Central Authorities are responsible for:
o a formula for calculating financial compensation o approval of New Drugs and Clinical Trials in the
has been derived. country,
• The Clinical Trials Registry of India (CTRI) - It is a o laying down the standards for Drugs,
free and online system for registration all clinical o control over the quality of imported Drugs,
trials being conducted in India.
o coordination of the activities of State Drug (MHRD) namely IMPacting Research, INnovation
Control Organisations and Technology (IMPRINT) and Uchhatar Avishkar
o banning of drugs and cosmetics and providing Yojana (UAY). (Pg 4, The Hindu)
expert advice with a view of bring about the IMPRINT
uniformity in the enforcement of the Drugs and • The IMPacting Research INnovation
Cosmetics Act. and Technology (IMPRINT) is a Pan-IIT and IISc joint
• Further CDSCO along with state regulators, is jointly initiative to develop a roadmap for research to solve
responsible for grant of licenses of certain specialized major engineering and technology challenges in ten
categories of critical Drugs such as blood and blood technology domains relevant to India and to enable,
products, I. V. Fluids, Vaccine and Sera. empower and embolden the nation for inclusive
Why are guinea pigs used in medical research? growth and self-reliance.
• They have many biological similarities to humans, • This novel initiative with two fold mandate is aimed
beyond the simple fact that they are mammals, which at:
make them useful in many fields of research. o (a) Developing new engineering education policy.
• Studies on guinea pigs led to the discovery of: (b) Creating a road map to pursue engineering
o Vitamin C challenges.
o the tuberculosis bacterium • IMPRINT provides the overarching vision that guides
o adrenaline research into areas that are predominantly socially
News in brief relevant.
Urkund software (Pg 6, The Hindu) Uchhatar Avishkar Yojana
• All universities in India, public and private, have been • It has been launched to promote innovation of a
given trial access to anti-plagiarism software higher order that directly impacts the needs of the
Urkund from Sweden. Industry and thereby improves the competitive edge
Related-party Transactions (Pg 13, The Hindu) of the Indian manufacturing.
• The Securities and Exchange Board of India (SEBI) • The scheme will initially be limited to the IITs.
expressed concern over related-party transactions, a • The Department of Higher education is the sole
method “frequently” employed by corporates for administrator of the scheme.
diversion of funds. • The following are among the objectives of the
• The capital markets regulator also said another Uchhatar Avishkar Yojana:
means of such diversion was extension of loans of o 1. To promote innovation in areas that are
companies to related parties. directly of relevance to the manufacturing and
Already analysed in previous issues design industry.
• US-Taliban Peace Talks pg 12 o 2. To spur innovative mindset in the students and
• National Green Tribunal pg 7 faculty in premier technological institutes.
• Intermediate Range Nuclear Forces Treaty pg 12 o 3. To bring a coordinated action between
• Deep Sea Mission and Poly metallic Nodules pg 14 academia and the industry.
o 4. To have outcome-based research funding.
IMPRINT AND UAY GENOME SEQUENCING
• Context: TechEx, a technology exhibition, was • Context: The Department of Biotechology (DBT)
organized to demonstrate products and prototypes plans to scan nearly 20,000 Indian genomes over the
next five years, in a two-phase exercise, and develop
developed under the two flagship schemes of the
Ministry of Human Resource Development diagnostic tests that can be used to test for cancer.
(Pg 9, The Hindu)
Analysis o For example, chimpanzees, our closest cousins,
Genome have 48 chromosomes in each of their cells.
• A genome is all of a living thing's genetic material. It is • But aside from this general rule, there is very little
the entire set of hereditary instructions for building, rhyme or reason to how many chromosomes a
running, and maintaining an organism, and passing species has.
life on to the next generation.
• In most living things, the genome is made of a
chemical called deoxyribonucleic acid (DNA), a
chemical compound that contains the genetic
instructions needed to develop and direct the activities
of every organism.
o The genome contains genes, which are
packaged in chromosomes and affect specific
characteristics of the organism.
What makes one chromosome different from

another?
• Though similar in basic appearance, different
chromosomes vary slightly in size and shape.
• In addition, when chromosomes are stained with
fluorescent dyes they develop distinctive patterns of
• Each one of earth's species has its own distinctive
bright and dark bands.
genome.
o These subtle differences enable cell biologists to
• Genomes not only belong to species, but they also
distinguish different chromosomes from one
belong to individuals.
another.
o Unless you are an identical twin, your genome is
• Most of an organism's chromosomes—generally all
different from that of every other person on
except for one pair (sex chromosomes)—are called
earth—in fact, it is different from that of every
autosomes, which are the same in males and females.
other person who has ever lived.
Humans have 22 pairs of autosomes.
Chromosomes
• Many organisms also have a pair of sex
• A chromosome is a package containing a chunk of a
chromosomes, which differ between males and
genome—that is, it contains some of an organism's
females.
genes.
o In humans, a female has two identical sex
• Chromosomes help a cell to keep a large amount of
chromosomes. A male has one sex chromosome
genetic information neat, organized, and compact.
that is like those of females, and one that is
• Chromosomes are made of DNA and protein.
smaller and differently shaped.
• How many chromosomes do organisms have?
o In scientific shorthand, the female's sex
Closely related species tend to have a similar number
chromosomes are referred to as XX, and the
of chromosomes.
male's as XY.
• The sex chromosomes of many other species have a o Bacteria have several hundred to several
similar pattern, but it is not the only possibility. thousand genes.
o In grasshoppers, females have two identical sex o Estimates of the number of human genes, by
chromosomes, while males have only one sex contrast, range from 25,000 to 30,000.
chromosome and are said to be XO. • All individuals in a species have the same set of
o In birds, butterflies, and moths, it is the males genes. Individuals have two copies of each gene, one
that have two identical sex chromosomes—they inherited from each parent.
are XX—and females are XY or XO. • Genes tell a cell how to make proteins. Roughly
• Note: People with Down's syndrome have too many speaking, each gene is a set of instructions for
chromosomes, and chromosome rearrangements making one specific protein.
(when a part of a chromosome breaks off and o Proteins are a diverse group of large, complex
reattaches to a different chromosome) are associated molecules that are crucial to every aspect of the
with certain cancers. body's structure and function.
Genes o Collagen, which forms the structural scaffolding
• A gene is a small piece of the genome. It's the genetic of skin and many other tissues, is a protein.
equivalent of the atom: As an atom is the fundamental o Insulin, a hormone that regulates blood sugar, is
unit of matter, a gene is the fundamental unit of a protein.
heredity. o Trypsin, an enzyme involved in digestion, is a
protein.
o So is the pigment melanin, which gives hair and
skin its colour.
• Directly or indirectly, the way genes influence your
traits is by telling your cells which proteins to make,
how much, when, and where.
• Some human diseases, such as sickle cell anaemia
and Huntington's disease, are inherited because of
dominant/recessive genes (Mendel's Experiment).
o Sickle cell is a recessive disease, while
Huntington's is dominant.
• But for the most part genetics, especially human
• Genes are found on chromosomes and are made of genetics, is more complicated. One gene can affect
DNA. several traits; one trait may be affected by several
• Different genes determine the different characteristics, genes.
or traits, of an organism. Genome Sequencing
o In the simplest terms (which are actually too • Genome sequencing is figuring out the order of DNA
simple in many cases), one gene might nucleotides, or bases, in a genome—the order of As,
determine the colour of a bird's feathers, while Cs, Gs, and Ts that make up an organism's DNA. The
another gene would determine the shape of its human genome is made up of over 3 billion of these
beak. genetic letters.
• The number of genes in the genome varies from • A DNA sequence that has been translated from life's
species to species. More complex organisms tend to chemical alphabet into our alphabet of written letters
have more genes. might look like this:
• The all-weather and all-terrain missile, which can be
mounted on a truck and stored in a canister, is
equipped with electronic counter measures against
• That is, in this particular piece of DNA, an adenine (A)
jamming by aircraft radars, they said.
is followed by a guanine (G), which is followed by a
• QRSAM uses solid-fuel propellant and has a range of
thymine (T), which in turn is followed by a cytosine (C),
25-30 km.
another cytosine (C), and so on.
• The system is being developed for the Army with
Why is genome sequencing so important?
search and track on move capability with very short
• Sequencing the genome is an important step towards
reaction time.
understanding it.
• At the very least, the genome sequence will represent AFGHAN PEACE PROCESS
a valuable shortcut, helping scientists find genes • Context: An editorial. (Pg 10, The Hindu)
much more easily and quickly. Analysis
• Scientists also hope that being able to study the entire • Diplomats from the U.S., Russia China and Pakistan
genome sequence will help them understand how met in Beijing to discuss the peace process in
the genome as a whole works—how genes work Afghanistan.
together to direct the growth, development and • Peace talks between the US and Taliban are going on
maintenance of an entire organism. in Doha, Qatar.
• Finally, genes account for less than 25 percent of • India has refused to be a part of talks with the Taliban
the DNA in the genome, and so knowing the entire directly, sending only retired officials in a “non-official”
genome sequence will help scientists study the capacity for one round of talks in Moscow last year.
parts of the genome outside the genes. • India’s traditional position is supporting only an
• This includes the regulatory regions that control how “Afghan led, Afghan owned and Afghan controlled”
genes are turned on an off, as well as long stretches process, which includes the government in Kabul.
of "nonsense" or "junk" DNA—so called because Two Compromises
we don't yet know what, if anything, it does. • The U.S. has already made two big compromises in
its rush for an exit deal.
QRSAM TEST FIRED SUCCESSFULLY • It has given in to the Taliban demand that the Afghan
• Context: The Defence Research Development government should be kept away from the peace
Organisation (DRDO) on Sunday successfully test- process.
fired the indigenously developed Quick Reaction o The Taliban does not recognise the Kabul
Surface to Air Missile (QRSAM) from the Integrated government and has made it clear that it would
Test Range (ITR) in Chandipur. (Pg 9, The Hindu) hold talks with the government only after a
Analysis pullout of foreign troops.
• The indigenously developed state-of-the-art • Second, the U.S. continued to hold talks even in the
QRSAM will significantly boost the defence absence of a ceasefire. As a result, the Taliban
capabilities of our armed forces. continued its terror campaign even when the peace
• The all-weather network-centric QR-SAM missile process was under way.
system can engage multiple threats such as aerial Recent developments
targets, tanks and bunkers within a strike range of • An Afghan official says the government will hold its
20km to 30km. first-ever direct talks with the Taliban, with the
• It is equipped with a 360° rotatable, electronic- meeting expected within the next two weeks.
mechanically operated, turret-based launch unit. • The apparent development comes after Taliban
negotiators sat with Afghan representatives at a so-
called intra-Afghan dialogue brokered by Germany in less than ₹1,00,000 and which may extend to
Doha this month. ₹5,00,000.
o As regards sentencing, this provision completely
ANTI-LYNCHING LAW
• Context: In furtherance of the recommendations deprives the judiciary of any amount of discretion.
made by the apex court in Tehseen S. Poonawalla v. • Recently, the Uttar Pradesh Law Commission (UPLC)
Union of India, the Rajasthan government has has also recommended a draft anti-lynching law.
introduced the Rajasthan Protection From Lynching News in brief
Bill, 2019. Drug Menace (Pg 13, The Hindu)
• If it gets passed, Rajasthan will be the second State • Expressing concern over the inflow of drugs from
after Manipur to have a dedicated law criminalising Pakistan, Afghanistan, Nigeria and other countries,
mob lynching as a special offence, in addition to other seven northern States and a Union Territory decided
offences under the Indian Penal Code. (Pg 11, The to set up a joint working group.
Hindu) • They were considering a legislation on the lines of the

Maharashtra Control of Organised Crime Act
Analysis
• The Bill follows the Supreme Court’s (MCOCA) to tackle the drug menace in their States.
recommendations in: • Chief Ministers of the northern States, including those
o authorising the setting up of special courts, of Punjab, Rajasthan, Haryana, Himachal Pradesh
and Uttarakhand, joined by top officials from Delhi,
o appointment of a dedicated nodal officer, and
o stipulating enhanced punishments. Jammu & Kashmir and Chandigarh, agreed on a
• However, its scope is more comprehensive as it series of measures to eradicate the drugs scourge
not only criminalises acts of lynching, dissemination of from the region.
‘offensive material’ and fostering of a ‘hostile • Three routes are traditionally used for global
environment’, but also provides for relief, legal aid, distribution of Afghan heroin: the Balkans, Central
compensation and rehabilitation. Asian countries and the Indian subcontinent.
Broad definition o Since 2015, there has been a decline in seizures
• The Bill defines lynching as an act or series of acts of on the Balkans and Central Asian routes.
violence or aiding, abetting or attempting an act of However, they have of late increased in the
violence, whether spontaneous or planned, by a mob subcontinent.
(two or more persons) on the grounds of religion, race, Do you know?
caste, sex, place of birth, language, dietary practices, Golden Crescent
sexual orientation, political affiliation and ethnicity. • The clandestine land routes of Iran, Afghanistan and
• Though wide-ranging in content, the document does Pakistan collectively constitute the Golden Crescent,
not cover cases of solitary offences. also called the silk route of drugs.
• Also, unlike the law on mob lynching in Manipur, it • It's the route through which the drug cartels enter
does not prescribe any punishment for dereliction India; mainly Punjab.
of duty. Golden Triangle

• The name "Golden Triangle" is commonly used more
• Further, some of the Bill’s provisions might attract
legal scrutiny. broadly to refer to an area of approximately 950,000
o Section 8(c) of the Bill says that whoever square kilometres (367,000 sq mi) that overlaps the
commits an act of lynching, where the act leads mountains of the three adjacent countries (Thailand,
to the death of the victim, shall be punished with Laos, and Myanmar).
rigorous imprisonment for life and a fine not be
• Most of the world's heroin came from the Golden Kashmir, acting on the advice of the Council of
Triangle until the early 21st century when Ministers, or by the “Constituent Assembly” of that
Afghanistan became the world's largest producer. State. As of now, there is no “Constituent Assembly”.
Already analysed in previous issues This is how the Central Government changed
• Hong Kong Protests pg 14 Kashmir's special status overnight:
• President of India issued a presidential order
under Article 370 (1) of the Constitution.
THE HINDU ANALYSIS 6th AUGUST 2019 o This clause enables the President to specify the
JAMMU AND KASHMIR REORGANISATION BILL, matters which are applicable to Jammu and
2019 Kashmir.
• Context: Changes in the status of Jammu and o As it can be issued only with the Jammu and
Kashmir. (Pg 10, 13, The Hindu) Kashmir government’s concurrence, the
Analysis notification uses the words “with the concurrence
• Jammu and Kashmir enjoyed special status under of the Government of the State of Jammu and
Article 370 in Part XXI of the Constitution of India. Kashmir”.
• This Article describes it as a temporary provision o This presumably means the Governor, who is
and that it will cease to be operative if the President now administering the State under President’s
issues a public notification to that effect. However, Rule, has given his concurrence on behalf of the
prior to that, a recommendation is necessary from the State government.
Constituent Assembly of Jammu and Kashmir. • The Order supersedes the 1954 Order.
o Under the same Part (XXI) of the Constitution, o This effectively means that all the provisions that
eleven other states (all northeastern States formed the basis of a separate “Constitution” for
including Sikkim except Tripura and Jammu and Kashmir stand abrogated.
Meghalaya, Gujarat, Maharashtra, Goa, o The Order declares that all the provisions of the
Karnataka and Andhra Pradesh) also enjoy Constitution of India, shall apply to Jammu and
special status but only in certain minor matters. Kashmir too.
• As a result of Article 370, Jammu and Kashmir had its • However, some special measures were still
own Constitution, and all laws passed by Parliament needed for the scrapping of Article 370 altogether.
will not be applicable to the State, unless the State o Therefore, a few clauses were added to Article
government gives its concurrence. 367 of the Constitution.
• The President is empowered to decide what o Article 367 contains “Interpretations”. They
provisions of the Constitution of India would be contain guidance on how to read or interpret
applicable to the State and what are the exceptions, some provisions.
but with the State government’s concurrence. o The new clauses say, when applicable to Jammu
• The Constitution (Application to Jammu and Kashmir) and Kashmir, all references to the ‘Sadar-i-
Order, 1954, lists the Articles and provisions that Riyasat’, acting on the aid and advice of the
apply to J&K. Council of Ministers, will be construed as
• Further, the President also listed a set of exceptions references to the Governor of Jammu and
under Article 35A of the Constitution (this Article does Kashmir. All references to the State government
not figure in the text of the Constitution of India, but shall mean “the Governor”.
figures only in the J&K’s Constitution). o And most importantly, the reference to the
• These special measures can be altered only on the “Constituent Assembly” in a proviso to Article 370
recommendation of the Sadar-i-Riyasat of Jammu and
(3) has been amended to read “Legislative • Under Article 3 of the Constitution, the President
Assembly of the State”. seeks the views of the legislature of the States
o This is the proviso that says the President can concerned whose territorial boundaries are going to
declare that Article 370 is no more operative only be changed, even if concurrence is not mandatory.
on the recommendation of the Constituent
VOTING RIGHTS OF PRISONERS
Assembly. As there is no Constituent Assembly • Context: The EC filed its affidavit before a High Court
in existence now, there is no body to bench on a petition filed by three law students seeking
“recommend” the demise of Article 370. to grant and facilitate voting rights to all persons
Therefore, the State Assembly has to play that lodged in jails across the country. (Pg 4, The Hindu)
role. Analysis
• The government has made use of the fact that Jammu • The Election Commission of India informed the Delhi
and Kashmir is under President’s Rule. High Court that prisoners do not have voting rights
o Under the Proclamation issued under Article 356 under the Representation of People (RP) Act.
of the Constitution, by which the President takes
• The poll panel said the right to vote is a statutory
over the administration of a State, Parliament right created under Section 62 of the RP Act and the
usually performs the legislative functions of the law is settled that the “right to vote being a statutory
State Assembly. right is subject to the restrictions prescribed in the
o For instance, when a State is under Central rule,
RP Act”.
the budget allocations for that State are voted in • The poll panel said any person who is confined in
Parliament in the absence of the Assembly. prison while serving a sentence of imprisonment on
• The Union Home Minister introduced two statutory his conviction for any offence or is under lawful
resolutions, one, to recommend that the President confinement in a prison or in a police custody for any
issue a notification rendering Article 370 inoperative, reason is not entitled to vote in an election.
and two, to accept the Jammu and Kashmir o But this restriction does not apply to a person
Reorganisation Bill. subjected to any kind of preventive detention.
• The Jammu and kashmir Reorganisation Bill, 2019,
will bring about the following changes to the State: INDIA'S GDP
• Context: India dropped two places in GDP rankings
o Two Union Territories to be formed out of the
in 2018 compared to 2017. (Pg 11, The Hindu)
State of Jammu and Kashmir: UT of Ladakh
Analysis
(Kargil and Leh districts); and UT of J&K (all
• In 2018, India's economy grew by about 3%, but in
other districts of the State of J&K).
the same period, the U.K. and France grew by about
❖ Although in the past UTs have been upgraded to
7% each, pushing India to the 7th place in the World
States, never has a State been downgraded.
Bank's GDP rankings in 2018.
o Both UTs to have LG, for now the Governor of
• Now the world's largest economies in terms of GDP
the State will continue as both.
(nominal) in decreasing order are:
o Four sitting Rajya Sabha MPs of the State will
o US, China, Japan, Germany, U.K., France, India,
become MPs of UT of J&K.
Italy, Brazil and Canada.
o Five Lok Sabha seats to go to the UT of J&K.
• Government aims to make India a $5-trillion economy
o Legislative Assembly of UT of J&K will have 107
by 2024.
seats to be chosen through a direct election.
• World Development Indicators and International
o One Lok Sabha seat to go to the UT of Ladakh.
Debt Statistics are publications of the World Bank.
o 24 seats in PoK will be vacant.
Real Vs Nominal GDP
• If we use current prices of goods and services to primarily they all stick to this norms because it
calculate GDP, we get Nominal GDP. facilitates easy cross-country comparisons.
• But, to get real GDP we use the prices in the base • However, it is not gross domestic product (GDP)
year. The base year for India is 2011-12. but the gross value added (GVA) methodology
• Real GDP is also known as GDP at constant prices. that helps in the supply side measure of economic
• It is calculated to eliminate the effect of price rise activity.
in GDP. • The share of various sectors in Gross Value Added
• In short, Real GDP is Nominal GDP adjusted for (GVA) during last three years in descending order:
inflation. Services > Industry > Agriculture, forestry &
GDP Vs GVA fishing > Manufacturing
• Gross domestic product (GDP) is the monetary value GDP (Nominal) Vs GDP (PPP)
of all the finished goods and services produced • GDP (Gross Domestic Product) is the total market
within a country's borders in a specific time period. value of all final goods and services produced in a
• GVA provides the rupee value for the amount of country in a given period.
goods and services produced in an economy after • Each country reports its data in its own currency.
deducting the cost of inputs and raw materials that • To compare the data, each country's statistics must
have gone into the production of those goods and be converted into a common currency.
services. • The two most common methods to convert GDP into
o It also gives sector-specific picture like what is a common currency are nominal and purchasing
the growth in an area, industry or sector of an power parity (PPP).
economy. GDP (nominal)
o At the macro level, it is the sum of a country’s • Nominal GDP estimates are commonly used to
GDP and net of subsidies and taxes in the determine the economic performance of a whole
economy. country or region, and to make international
• While GVA gives a picture of the state of economic comparisons.
activity from the producers’ side or supply side, the • It is the original concept of GDP.
GDP model gives the picture from the consumers’ • In Nominal method, market exchange rates are used
side or demand perspective. for conversion.
• Gross value added = GDP + subsidies on • It does not take into account differences in the cost of
products - taxes on products. living in different countries.
• The Reserve Bank has recently switched back to the • Fluctuations in the exchange rates of the country's
gross domestic product (GDP)-based measure to currency may change a country's ranking from one
offer its growth estimates from the gross value added year to the next, even though they often make little or
(GVA) methodology, citing global best practices. no difference to the standard of living of its population.
• The government had started analysing growth GDP (PPP)
estimates using GVA methodology from January 2015 • PPP basis arguably more useful when comparing
and had also changed the base year to 2018 from differences in living standards between nations.
January. • PPP is an exchange rate at which the currency of one
• Globally, the performance of most economies is country is converted into that of the second country in
gauged in terms of gross domestic product (GDP). order to purchase the same volume of goods and
• This is also the approach followed by multilateral services in both countries.
institutions, international analysts and investors, and
• If a hamburger is selling in London for £2 and in New • It calls for e-commerce entities to maintain a level-
York for $4, this would imply a PPP exchange rate of playing field and prohibit influencing the price of
1 pound to 2 U.S. dollars. goods and services directly or indirectly.
• PPP exchange rates are relatively stable over time. • The draft norms mention that an e-commerce
• Drawbacks of PPP is that PPP is harder to measure company doing business in the country shall be a
than nominal. registered legal entity under the laws of India.
• Out of 192 countries/economies, about 178 have • The draft norms further restrict companies from falsely
higher GDP in PPP basis and 13 have higher in representing themselves as consumers or posting
nominal. reviews about goods and services in their name.
• Nominal and PPP are identical in the US, because • To enable consumers to make ‘informed decisions’,
USD is used as the benchmark. the consumer affairs ministry has proposed that e-
• 30 economies has higher PPP values by more than 3 commerce entities should display terms of contract
times. between themselves and the sellers relating to return,
• South Sudan has highest difference between PPP refund, exchange, warranty, delivery, mode of
and nominal GDP calculation. This value is lowest for payments and grievance redressal mechanism.
Iceland (0.74). • The draft norms also puts the onus on the companies
• There is a large gap between nominal and PPP based to ensure advertisments for marketing of goods or
GDP in emerging market and developing countries. services are consistent with the actual characteristics.
But for advanced countries, difference is much closer. • It provides for protection of ‘personally identifiable
• In GDP (PPP), India is the third largest economy information of consumers’ and outlines that the
after China and US and is followed by Japan, companies should ensure such data collection,
Germany, Russia, Indonesia, Brazil, UK and storage and use comply with provisions of the
France. Information Technology (Amendment) Act, 2008.
• In top 10, eight countries are common in both • The ministry has sought stakeholders’ comments on
methods. Others two Italy and Canada are in top 10 the guidelines by September 16.
on nominal basis, while Russia and Indonesia are in • The department for promotion of industry and internal
top 10 on PPP basis. trade’s (DPIIT) revised norms on foreign direct
• In the long run, the market exchange rates gradually investment (FDI) in e-commerce that came into effect
converge to the PPP exchange rate. This is called the on February 1 also adopted a similar approach,
theory of purchasing power parity (PPP). barring e-commerce companies from influencing sale
• Note: India ranks 141st in Nominal GDP per capita price of goods and services.
and 123rd in GDP per capita at PPP. • The commerce ministry is already drafting a separate
o GDP per capita is calculated by dividing the GDP e-commerce policy that proposes regulating cross-
by the total population of a country. border data flows, setting up storage facilities locally
o It measures the average income of a country. and establishing a data authority to devise a
o It is used as an indicator of living standards. framework for sharing data.
Already analysed in previous issues
DRAFT E-COMMERCE NORMS
• Context: Draft e-commerce norms have been • Hong Kong Protests pg 14
released. (Pg 15, The Hindu) • Rajasthan Anti-lynching law pg 1
Analysis • Foreigners' Tribunal pg 6
• The consumer affairs ministry has issued draft e- • National Disaster response Force pg 7
commerce guidelines for consumer protection 2019. • Afghan Peace Talks pg 11

• Iran Issue pg 14
• Yemen Crisis pg 14 • It aims to reduce particulate matter (PM) pollution
• Intermediate Range Nuclear Forces Treaty pg 14 by 20-30% in at least 102 cities by 2024.
• It includes both monitoring network across the
country besides ensuring comprehensive
AIR POLLUTION AND CPCB management plan for prevention, control and
• Context: The National Green Tribunal (NGT) on
abatement of air pollution.
Tuesday pulled up the Central Pollution Control Board
• Integral components of the strategy framework:
(CPCB) for failing to take action against those
o increasing number of existing manual and
contributing to air pollution, while stating that it was a
continuous monitoring stations,
scientific body and not a kindergarten. (Pg 4, The
o introducing rural monitoring stations
Hindu)
o identifying alternative technology for real-time
Analysis
monitoring network
Central Pollution Control Board (CPCB)
o augmenting capabilities of existing monitoring
• It is a statutory organisation constituted under the
stations to measure PM2.5 concentration
Water (Prevention and Control of Pollution) Act,
o an Air Information Centre as well as an Air
1974.
Quality Forecasting system
o Further, CPCB was entrusted with the powers
o both city-specific source apportionment studies
and functions under the Air (Prevention and
as well as a national-level emission inventory.
Control of Pollution) Act, 1981.
• While the document mentions emission reduction
• It serves as a field formation and also provides
targets, nowhere does it actually quantify these
technical services to the Ministry of Environment and
targets.
Forests for the provisions of the Environment
National Air Quality Index (AQI)
(Protection) Act, 1986.
• Launched by the Environment Minister, AQI is a huge
Principal Functions of the CPCB are:
initiative under ‘Swachh Bharat’
o to promote cleanliness of streams and wells in
• It is to act as ‘One Number- One Colour-One
different areas of the States by prevention, control
Description’ to judge the Air Quality for Common Man.
and abatement of water pollution, and
• There are six AQI categories, namely Good,
o to improve the quality of air and to prevent, control
Satisfactory, Moderately polluted, Poor, Very Poor,
or abate air pollution in the country.
and Severe.
• One of the mandates of CPCB is to collect, collate
• It considers eight pollutants [PM10, PM2.5, Nitrogen
and disseminate technical and statistical data relating
dioxide (NO2), Sulphur dioxide (SO2), Carbon
to water pollution.
monoxide (CO), Ozone (O3), Ammonia (NH3) and
All about Air Pollution Lead (Pb)] for which short-term (up to 24-hourly
Difference between National Clean Air Programme, averaging period) National Ambient Air Quality
National Air Quality Index and Air Quality Monitoring Standards are prescribed.
Programme (NAMP): • Associated likely health impacts for different AQI
National Clean Air Programme categories and pollutants have been also been
• It has been launched by the Ministry of Environment, suggested.
Forest and Climate Change. Air Quality Monitoring Programme (NAMP)
• It is a medium term (five-year action plan with 2019 • Executed nation-wide by Central Pollution Control
as the first year) national level strategy to tackle the Board.
increasing air pollution problem across the country. • Four air pollutants are being monitored
o Sulphur Dioxide (SO2)
o Oxides of Nitrogen as NO2 its forecast 1-3 days in advance for the first time in
o Respirable Suspended Particulate Matter (RSPM India.
/ PM10) • The system, first of its kind in the country, was
o Fine Particulate Matter (PM2.5) developed indigenously in record time by Indian
• The monitoring is being carried out with the help of: Institute of Tropical Meteorology, Pune, along with
o Central Pollution Control Board; India Meteorological Department (IMD) and National
o State Pollution Control Boards; Centre for Medium Range Weather Forecasting
o Pollution Control Committees; (NCMRWF). and operationalized by India
o National Environmental Engineering Research Meteorological Department (IMD).
Institute (NEERI), Nagpur. • In addition to regular air quality parameters like PM2.5,
‘Clean Air India Initiative’ PM10, Sulfur Dioxide, Ozone, Nitrogen Oxides,
• India in collaboration with the Netherlands has Carbon Monoxide, the system will also monitor the
launched the ‘Clean Air India Initiative’ which aims existence of Benzene, Toluene and Xylene.
to curb air pollution in Indian cities by promoting • This mission model project SAFAR is implemented in
partnerships between Indian start-ups and Dutch four cities of India – Delhi, Pune, Mumbai and
companies and build a network of entrepreneurs Ahmedabad as an operational service.
working on business solutions for cleaner air. • Through SAFAR we can know the air quality not only
Clean Sea Programme over all city pollution but also location specific air
• ‘Clean Sea Programme’ is a Sweden-led initiative to quality.
reduce littering of marine ecosystems. • The ultimate objective of the project is to increase
New system to measure air quality awareness among general public regarding the air
• India is tying up with the United States and Finland quality in their city well in advance so that appropriate
to develop a pollution-forecast system. mitigation measures and systematic action can be
• It will help anticipate particulate matter (PM) levels at taken up for betterment of air quality and related
least two days in advance and at a greater health issues.
resolution than what is possible now. • Recently, the government unveiled a state-of-the-art
• At present, the Indian Institute of Tropical Meteorology Air Quality and Weather Forecast System– SAFAR
(IITM), Pune, serves as the apex forecaster of (System of Air Quality and Weather Forecasting) at
pollution trends in Delhi, Mumbai, Pune and Chandni Chowk in Delhi.
Ahmedabad. o The giant true colour LED display gives out real-
• It generates a likely air quality profile, a day in time air quality index on 24x7 basis with colour
advance, for these cities. coding along with 72-hour advance forecast.
• IITM is an organisation under the Ministry of Earth
MEDICAL TERMINATION OF PREGNANCY ACT,
Sciences (MoES).
1971
SAFAR • Context: The Centre has informed the Delhi High
• Under the plan scheme “Metropolitan Advisories for Court that it has initiated the process for an inter-
Cities for Sports and Tourism (Metropolitan Air Quality ministerial consultation on raising the gestation period
and Weather Services), Ministry of Earth Sciences for terminating pregnancy in case of health risk to the
(MoES), has introduced a major national initiative, mother or foetus.
"System of Air Quality and Weather Forecasting and • The Health Ministry’s response came on a petition for
Research" known as "SAFAR" for greater raising the time limit for terminating pregnancy in case
metropolitan cities of India to provide location of health risk to the mother or the foetus to 24-26
specific information on air quality in near real time and weeks from the current cap of 20 weeks.
• The petitioner also contended that unmarried woman • However, this does not mean that you cannot get an
and widows too should be allowed to undergo legal abortion.
abortion. (Pg 5, The Hindu) • If the doctor forms an opinion that your mental health
Analysis will suffer if the pregnancy continues, he or she can
• It is possible to get an abortion under the Medical perform the abortion.
Termination of Pregnancy Act, 1971 if pregnancy is
CONTEMPT OF COURT
under 20 weeks. • Context: Court accepts apology for its contempt. (Pg
• However, it is subject to several conditions and 5, The Hindu)
conducting an abortion without fulfilling the conditions Analysis
is considered a crime. Contempt of Court
What are the conditions? • Both the Supreme Court and the High Courts have
• Under the medical termination of pregnancy Act 1971, the power to punish for contempt of court, either with
the doctor can perform an abortion in the following simple imprisonment or with fine or both.
situations:
• The term ‘Contempt of Court’ has not been defined
o if the pregnancy would be harmful to your life or by the Constitution.
physical or mental health. • However, it has been defined by the Contempt of
o if there is good chance that the child would suffer Court Act of 1971.
from physical or mental abnormalities which
• The Contempt of Court can be ‘civil’ or ‘criminal’.
would leave him or her seriously handicapped. • Civil Contempt: It is the willful disobedience of any
Who needs to be satisfied that the conditions have judgment, order, writ or other process of a court or
been fulfilled to get an abortion? willful breach of an undertaking given to a court.
• If the pregnancy has not exceeded 12 weeks (first • Criminal Contempt: It is the publication of any matter
trimester), only one doctorneeds to be satisfied that or doing an act which:
the conditions have been fulfilled. o Scandalises or lowers the authority of a court; or
• If the pregnancy has exceeded 12 weeks and is below Prejudices or interferes with the due course of a
20 weeks (first trimester), two doctors need to be judicial proceeding; or
satisfied that the conditions have been fulfilled. o Interferes or obstructs the administration of
• The gestation period does not matter if doctor feels justice in any other manner.
that an immediate abortion must be conducted to • However, the following are ‘not’ considered
save your life. ‘Contempt of Court’:
• The doctor who determines if it is necessary to o Innocent publication and distribution of some
perform an abortion and performs it needs to be a matter;
‘registered medical practitioner’ under the law. o Fair and accurate report of judicial proceedings;
Failure of contraceptives o Fair and reasonable criticism of judicial acts; and
• If you are a married person, you should be able to get o Comment on the administrative side of the
an abortion if contraceptives did not work and you did judiciary.
not want to have more children.
• The doctor has a legal duty to assume in such cases MONEY LAUNDERING
• Context: Court dismisses application in money
that the pregnancy affects your mental health
laundering case. (Pg 5, The Hindu)
gravely.
Analysis
• The same legal duty does not unfortunately apply to
How money is laundered in India
unmarried women.
• Money Laundering refers to the conversion of money • The first stage is the physical disposal of cash.
which has been illegally obtained, in such a way that it • The launderer introduces his illegal profits into the
appears to have originated from a legitimate source. financial system.
o The term "money laundering" is said to have • This placement is accomplished by depositing the
originated from the mafia ownership of cash in domestic banks or in other types of formal or
Laundromats in the United States. informal financial institutions.
o The mafia earned huge amounts from extortion, Layering
gambling etc. and showed legitimate source • The Second stage in money laundering is layering.
(such as laundomats) for these monies. • The launderer engages in a series of conversions or
• In India, money laundering is popularly known as movements of the funds to distance them from their
Hawala transactions. source.
o Hawala is an alternative or parallel remittance • The funds might be channelled through the purchase
system. "Hawala" is an Arabic word meaning the and sale of investment instruments such as bonds,
transfer of money or information between two stocks, and traveller’s cheques or the launderer might
persons using a third person. simply wire the funds through a series of accounts at
o The system dates to the Arabic traders as a various banks across the globe, particularly to those
means of avoiding robbery. It predates western jurisdictions that do not cooperate in anti-money
banking by several centuries. laundering investigations.
• The Hawala Mechanism facilitated the conversion of Integration
money from black into white. • This is the stage where the funds are returned to the
o Black money refers to funds earned, on which legitimate economy for later extraction.
income and other taxes have not been paid. • Examples include investing in a company, purchasing
Black money is earned through illegally traded real estate, luxury goods, etc.
goods or services. • This is the final stage in the process. The launderer
o While the money earned through legal means on makes it appear to have been legally earned and
which due taxes have been paid is referred to as accomplishes integration of the “cleaned” money into
white money. the economy.
• Figure 1 lays down the process followed by the Money Laundering in India
Hawala operators. • Out of 140 countries, India has been ranked 68th in
2018 in the Anti Money Laundering (AML) Basel Index
2013.
• AML Basel index is country risk ranking which focuses
on money laundering/terrorist financing risk,
consisting of 14 indicators of assessment.
• This clearly shows that India, in the present-day
scenario, is very vulnerable to money laundering
activities and is a high risk zone.
• India needs to curb Money laundering as the practice
is rampant across the country.
Prevention of Money Laundering Act, 2002
What is the legal authority to prosecute money
laundering at national level?
Placement
• The Prevention of Money Laundering Act, 2002 • RBI's circular in April 2018 banned all entities
(PMLA), which criminalises money laundering, regulated by RBI which include banks, financial
together with the rules and regulations prescribed by institutions, non-banking financial institutions,
regulators such as the Reserve Bank of India, the payment system providers, etc. from dealing in, or
Securities and Exchange Board of India and facilitating any dealings in, cryptocurrencies.
Insurance Regulatory and Development Authority • The constitutional validity of the Circular has also
of India, sets out the broad framework for the been challenged.
prosecution of money laundering in India with the • However, non-compliance with the Circular has not
Directorate of Enforcement (ED) being empowered been made a schedules offence under the PMLA.
by the Union Government to investigate and • The Ministry of Corporate Affairs maintains a publicly
prosecute money laundering. searchable corporate registry to assist financial
• PMLA also seeks to prevent money laundering by institutions with their anti- money laundering customer
mandating record-keeping and reporting obligations due diligence responsibilities.
imposed on banks, financial institutions and • Note: The Economic Intelligence Council is headed by
intermediaries. the Finance Minister of the Central Government.
What are proceeds of crime? Directorate of Enforcement
• Any property derived or obtained directly or indirectly • Directorate of Enforcement is a specialized financial
by any person: investigation agency under the Department of
o as a result of criminal activity; Revenue, Ministry of Finance (Department of
o relating to a 'scheduled offence'; or Investment and Public Asset Management;
o the value of any such property. Expenditure; Revenue; Financial Services; Economic
• Scheduled offences range from those relating to Affairs are other departments of the Ministry).
corporate fraud, terrorism, illegal trade od arms, • It enforces the following laws: -
wildlife, narcotics to bribery of public officials. Foreign Exchange Management Act, 1999 (FEMA) -
• A wilful attempt to evade tax under section 51 of the A Civil Law.
Black Money (Undisclosed Foreign Income and Prevention of Money Laundering Act, 2002 (PMLA) -
Assets) and Imposition of Tax Act 2015 are also A Criminal Law.
scheduled offences.
FOOD SAFETY AND STANDARDS AUTHORITY OF
Is there any extra-territorial jurisdiction for the crime
INDIA (FSSAI)
of money laundering? or Is money laundering of the • Context: The Food Safety and Standards Authority of
proceeds of foreign crimes punishable? India (FSSAI) has issued an advisory asking all States
• PMLA confers extra-territorial jurisdiction to the and Union Territories to discourage the practice of
government to prosecute the offence of money packing of toys/gifts with food products for infants and
laundering for 'offences of cross-border implications.' small children as there are chances of contamination
• PMLA allows for attachment and confiscation of and risk of accidental ingestion. (Pg 8, The Hindu)
equivalent assets in India or overseas whenever the Analysis
asset constituting the proceeds of crime is located Food Safety and Standards Authority of India (FSSAI)
abroad and cannot be forfeited. • It has been established under the Food Safety and
• The offences of money laundering under the PMLA Standards Act, 2006 which consolidates various
cannot be compounded. acts and orders that have hitherto handled food
To what extent have anti- money laundering related issues in various Ministries and Departments.
requirements been applied to the cryptocurrency • It has been created for laying down science based
industry? standards for articles of food.
• Various Central Acts like Prevention of Food • It will regulate matters related to violation of consumer
Adulteration Act, 1954 etc. are repealed after the rights, unfair trade practices, and misleading
commencement of FSS Act, 2006. advertisements.
• The Act also aims to establish a single reference • CCPA will carry out the following functions, including:
point for all matters relating to food safety and o (i) inquiring into violations of consumer rights,
standards. investigating and launching prosecution at the
• To this effect, the Act establishes an independent appropriate forum;
statutory authority - the Food Safety and Standards o (ii) passing orders to recall goods or withdraw
Authority of India under the Ministry of Health and services that are hazardous, reimbursement of
Family Welfare. the price paid, and discontinuation of the unfair
• Food Safety and Standards Authority of India and trade practices, as defined in the Bill;
State Food Safety Authorities shall enforce various o (iii) issuing directions to the concerned trader/
provisions of the Act. manufacturer/ endorser/ advertiser/ publisher to
• FSSAI also contributes to the development of either discontinue a false or misleading
international technical standards for food, sanitary and advertisement, or modify it;
phyto-sanitary standards. o (iv) imposing penalties, and;
o (v) issuing safety notices to consumers against
CONSUMER PROTECTION BILL, 2019
unsafe goods and services.
• Context: The Consumer Protection Bill, 2019 passed
by the Parliament. (Pg 9, The Hindu) • CCPA can also prohibit the endorser of a misleading
Analysis advertisement from endorsing that particular product
Key features of the Bill include or service for a period of up to one year.
Definition of consumer Consumer Disputes Redressal Commission
• A consumer is defined as a person who buys any • Consumer Disputes Redressal Commissions
good or avails a service for a consideration. (CDRCs) will be set up at the district, state, and
• It does not include a person who obtains a good for national levels.
resale or a good or service for commercial purpose. • A consumer can file a complaint with CDRCs in
Rights of consumers relation to:
• Six consumer rights have been defined in the Bill, o (i) unfair or restrictive trade practices;
including the right to: o (ii) defective goods or services;
o (i) be protected against marketing of goods and o (iii) overcharging or deceptive charging; and
services which are hazardous to life and o (iv) the offering of goods or services for sale
property; which may be hazardous to life and safety.
o (ii) be informed of the quality, quantity, potency, • Complaints against an unfair contract can be filed with
purity, standard and price of goods or services; only the State and National CDRCs.
o (iii) be assured of access to a variety of goods or o Appeals from a District CDRC will be heard by
services at competitive prices; and the State CDRC.

o Appeals from the State CDRC will be heard by
o (iv) seek redressal against unfair or restrictive
trade practices. the National CDRC.
Central Consumer Protection Authority o Final appeal will lie before the Supreme Court.
• The central government will set up a Central Jurisdiction of CDRCs
Consumer Protection Authority (CCPA) to promote, • The District CDRC will entertain complaints where
protect and enforce the rights of consumers. value of goods and services does not exceed Rs one
crore.
• The State CDRC will entertain complaints when the o (vi) disclosing personal information provided by a
value is more than Rs one crore but does not exceed consumer to any other person.
Rs 10 crore. • A restrictive trade practice is one that imposes
• Complaints with value of goods and services over Rs unjustified costs or restrictions on consumers,
10 crore will be entertained by the National CDRC. including:
Contradictions o (i) delays in supply that lead to increase in price;
• The Bill sets up the Consumer Disputes Redressal and
Commissions as quasi-judicial bodies to adjudicate o (ii) requiring purchase of certain goods or
disputes. services as a condition for procuring any other
• The Bill empowers the central government to appoint, goods or services.
remove and prescribe conditions of service for • The CCPA may take steps to prevent and discontinue
members of the District, State and National Consumer unfair and restrictive trade practices.
Disputes Redressal Commissions. • The District, State or National Commissions may
o The Bill leaves the composition of the order the discontinuation of unfair and restrictive trade
Commissions to the central government. This practices.
could affect the independence of these quasi-

SELECT COMMITTEE OF PARLIAMENT
judicial bodies. • Context: Government offers to send four Bills for
o The Bill does not specify that the Commissions scrutiny to a standing committee or a select
will comprise a judicial member. If the committee. (Pg 9, The Hindu)
Commissions were to have members only from Analysis
the executive, the principal of separation of How does a select committee work?
powers may be violated. • Reference: Under Rule 125 of the Rajya Sabha
Consumer Protection Councils Rules and Procedures, any member may move as
• The Bill sets up Consumer Protection Councils an amendment that a bill be referred to a select
(CPCs) at the district, state, and national levels as committee and, if the motion is carried, the bill shall
advisory bodies. be referred to such a committee.
• The Councils will advise on promotion and protection • Who: The House decides on a motion moved by a
of consumer rights. member who will comprise the select committee.
• Under the Bill, the Central and State Council will be • How: The quorum needs to be one-third of the total
headed by the Minister-in-charge of Consumer Affairs number of members of the committee.
at the central and state level, respectively. • If at the time fixed for any meeting, there is no quorum,
• The District Council will be headed by the District the committee chairman will either suspend the
Collector. meeting until there is a quorum or adjourn the meeting.
Unfair and restrictive trade practices • In case of equality of votes on any matter, the
• An unfair trade practice includes: chairman (or any other person presiding) will have a
o (i) making a false statement regarding the quality second or casting vote.
or standard of a good or service; • A select committee may appoint a sub-committee to
o (ii) selling of goods not complying with standards; examine any special points connected with the bill.
o (iii) manufacture of spurious goods; • If any doubt arises on any point of procedure or
o (iv) non-issuance of a receipt for a good or otherwise, the chairman may refer the point to the
service sold; Rajya Sabha chairman, whose decision is final.
o (v) refusing to withdraw or refund goods or • When: As soon as a bill has been referred to it, the
services within 30 days; or select committee is to meet from time to time and
make a report within the time fixed by the Rajya • It can be house select committee or a joint select
Sabha. committee.
• If no deadline has been fixed, the report is deemed to • Normally the recommendations made by the select
be presented before the expiry of three months from committees are accepted.
the date on which the House adopted the motion for • These committees are ad hoc or temporary in nature.
the reference of the bill to the select committee. These dissolve when the matter referred to them gets
• This deadline can be altered by the House on a over.
motion moved by a member. • A minister cannot be a member of this committee.
• Joint sitting: If a bill passed by one House is rejected
by the other, or the Houses have finally disagreed on
FAST TRACK COURTS (FTCS)
• Context: Minister for Women and Child Development
the amendments to be made, or more than six months
informed the Rajya Sabha that the government has
have lapsed from the date of receipt of the bill by the
proposed to set up 1,023 fast-track courts to clear the
other House without the bill being passed, the
cases under the Protection of Children from Sexual
President may (unless the bill has lapsed by reason of
Offences (POCSO) Act.
dissolution of Lok Sabha) call a joint sitting of the two
• A few weeks ago, the Supreme Court in a suo motu
Houses (Article 108) to resolve the deadlock.
petition had issued directions, stating that districts
• The bill is deemed to have been passed by both
with more than 100 cases pending under the POCSO
Houses in the form it is passed by a majority of the
Act need to set up special courts that can deal
total number of members of both Houses present and
specifically with these cases. (Pg 11, The Hindu)
voting.
Analysis
• There cannot be a joint sitting of both Houses on a
Fast Track Courts (FTCs)
money bill or a constitution amendment bill.
• The 11th Finance Commission had recommended a
What is the difference between a standing committee
scheme for the establishment of FTCs for the
and a select committee in the parliament?
expeditious disposal of cases pending in the lower
Standing committees
courts.
• Standing committees are department related and they
• FTCs were to be established by the state
are permanent.
governments in consultation with the respective High
• Any bill related to the concerned ministry can be
Courts.
referred to the standing committees if desired by the
• An average of five FTCs were to be established in
Parliament and then the bill is scrutinized in detail.
each district of the country.
• Standing committed can make recommendations for
• The judges for these FTCs were appointed on an
some amendments.
adhoc basis.
• It is up to the house to accept or reject those
• The judges were selected by the High Courts of the
amendments.
respective states.
• There are currently 24 departmental committees.
• There are primarily three sources of recruitment.
• Each committee has 31 members (21 from Lok Sabha
o First, by promoting members from amongst the
and 10 from Rajya Sabha).
eligible judicial officers;
• A minister cannot be a member of the PSC.
o second, by appointing retired High Court judges
• Tenure of each committee is 1 year.
and
Select committees
o third, from amongst members of the Bar of the
• Select committees are bill specific.
respective state.
• They are constituted if there is logjam on an ordinary
bill.
• FTCs were initially established for a period of five • The new norms were introduced given a sharp
years (2000-2005). increase in pollution load from the sector with a
o However, in 2005, the Supreme Court directed massive rise in coal-based capacity in the past ten to
the central government to continue with the FTC 15 years.
scheme, which was extended until 2010-2011. • With the deadline to comply with the new norms is
o The government discontinued the FTC scheme 2022, by December 2017, very little progress has
in March 2011. been made.
• Though the central government stopped giving • The delay has been largely due to the industry’s
financial assistance to the states for establishing reluctance to invest in pollution control systems.
FTCs, the state governments could establish FTCs • Compliance with the new emission norms required
from their own funds. retrofitting existing thermal power plants with
• In 2013, the government approved the setting up of auxiliaries to control SOx, NOx and PM emissions
1023 fast track courts in the nation to speedily such as Flue Gas Desulfurization (FGD), Selective
dispose off the pending rape cases and the cases Catalytic Reduction (SCR), Electrostatic Precipitation
which fell under the Protection of Children from (ESP) systems etc.
Sexual Offences Act, 2012 ( POCSO Act). U.S. - Venezuela (Pg 14, The Hindu)
• The 14th Finance Commission (its recommendations • U.S. President Donald Trump imposed a freeze on all
cover the period from April 1, 2015 to March 31, 2020) Venezuelan government assets in the United States,
endorsed the proposal for setting up 1800 FTCs at a sharply escalating a diplomatic and sanctions drive
cost of Rs.4144.00 crore. aimed at removing socialist President Nicolas Maduro
• It also urged the State Governments to utilize the from power.
enhanced devolution of central taxes from 32% to • The United States and most Western nations have
42% to fund this effort. called for Maduro to step down and have recognized
• As on 31.12.2018, 699 FTCs are functional across the Venezuelan opposition leader Juan Guaido as the
country dealing cases pertaining to heinous crimes country's legitimate President.
and cases related to women, children, senior citizens, U.S.'s Problems with Turkey (Pg 14, The Hindu)
disabled and litigants affected with terminal ailments • Turkey and Iran have overlapping strategic interests
etc. and Civil natured Cases pertaining to property regarding:
disputes that are 5 years old. o Kurdish secessionism,
News in brief o territorial integrity of Iraq, and
New Standards for Coal-based Plants (Pg 9, The o shared antipathy towards Saudi Arabia.
Hindu) • Iran is the second largest supplier of energy to Turkey
• New standards for coal-based plants will cut down and a leading trading partner as well.
emissions of particulate matter by 65 percent, sulphur • Furthermore, Turkey’s relations with the U.S. are
dioxide (SO2 ) by 85 percent and nitrogen oxide currently rocky over U.S. support to the Syrian
(NOx) by 70 percent over the next decade. Kurdish militia, the YPG, that Ankara considers a
o The technology employed for the control of the terrorist organisation because of its close relations
proposed limit of Sulfur Dioxide - SO2 & Nitrogen with the secessionist PKK.
Oxide - NOx will also help in control of mercury o YPG is an acronym whose translation means
emission (at about 70-90%) as a co-benefit. People's Protection Units. It is the home grown
• India, which has the world’s fourth-highest coal-based defense forces of the Kurdish area of Syria. It
capacity, revised its pollution control norms in 2015. emerged after the Civil War erupted in Syria and
started to spill over into Syrian Kurdistan, now • The targets and sub-targets for banks under priority
known as Rojava, or Western Kurdistan. sector are as follows:
o The Kurdistan Workers' Party or PKK (Partiya Domestic
Karkerên Kurdistanê) is a Kurdish far-left militant scheduled
and political organization based in Turkey and commercial
Iraq. banks
Foreign
• The threat of American sanctions on Turkey following (excluding
banks with
the latter’s decision to buy S-400 missile defence Regional Rural
Categories less than
systems from Russia has also contributed greatly to Banks and
20
tensions between the two countries. Small Finance
branches
Already analysed in previous issues Banks) and
• Hong Kong Protests pg 14 Foreign banks
• National Disaster response Force pg 7 with 20 branches
• Intermediate Range Nuclear Forces Treaty pg 14 and above
• National green Tribunal pg 4 Total 40 per cent of 40 per cent
Priority Adjusted Net Bank of Adjusted
Sector Credit or Credit Net Bank
THE HINDU ANALYSIS 8th AUGUST 2019 Equivalent Credit or
PRIORITY SECTOR LENDING Amount of Off- Credit
• Context: The central bank has decided to increase Balance Sheet Equivalent
the cap on a bank’s exposure to a single NBFC to Exposure, Amount of
20% of its tier-I capital from 15% now. whichever is Off-Balance
• Further, RBI has decided to give ‘priority sector’ tag higher. Sheet
for banks lending to NBFCs, for on-lending to farm, Exposure,
small and medium enterprises and housing sector. whichever is
• Banks have been allowed to lend to the NBFCs for higher, to be
on-lending to the agriculture sector up to ₹10 lakh, up achieved in
to ₹20 lakh to micro and small enterprises, and for a phased
housing, up to ₹20 lakh per borrower. These will be manner by
classified as priority sector lending. (Pg 15, The 2020.
Hindu) Agriculture 18 per cent of Not
Analysis # ANBC or Credit applicable
Priority Sector Lending Equivalent
• Priority Sector includes the following categories: Amount of Off-
o (i) Agriculture Balance Sheet
(ii) Micro, Small and Medium Enterprises Exposure,
(iii) Export Credit whichever is
(iv) Education higher.
(v) Housing
(vi) Social Infrastructure Within the 18
(vii) Renewable Energy percent target for
(viii) Others agriculture, a
target of 8 percent Rural Livelihoods Mission (NRLM),
of ANBC or Credit National Urban Livelihood Mission
Equivalent (NULM) and Self Employment Scheme
Amount of Off- for Rehabilitation of Manual Scavengers
Balance Sheet (SRMS)
Exposure, 4. Scheduled Castes and Scheduled Tribes
whichever is Beneficiaries of Differential Rate of
5.
higher is Interest (DRI) scheme
prescribed for 6. Self Help Groups
Small and Distressed farmers indebted to non-
7.
Marginal Farmers. institutional lenders
Micro 7.5 percent of Not Distressed persons other than farmers,
Enterprises ANBC or Credit applicable with loan amount not exceeding ₹ 0.1
8.
Equivalent million per borrower to prepay their debt
Amount of Off- to non-institutional lenders
Balance Sheet Individual women beneficiaries up to ₹
9.
Exposure, 0.1 million per borrower
whichever is 10. Persons with disabilities
higher. 11. Overdraft limit to PMJDY account holder
Advances 10 percent of Not upto ₹ 10,000/- with age limit of 18-65
to Weaker ANBC or Credit applicable years.
Sections Equivalent Minority communities as may be notified
12.
Amount of Off- by Government of India from time to time
Balance Sheet
Exposure, • In States, where one of the minority communities
whichever is notified is, in fact, in majority, item (12) will cover only
higher the other notified minorities.
# Domestic banks have been directed to ensure • These States/ Union Territories are Jammu & Kashmir,
that their overall direct lending to non-corporate Punjab, Meghalaya, Mizoram, Nagaland and
farmers does not fall below the system-wide Lakshadweep.
average of the last three years achievement. • The Reserve Bank of India opted to break with
convention by reducing the key policy rate, the repo
• Priority sector loans to the following borrowers are rate, by 35 basis points (bps) as it focused monetary
eligible to be considered under Weaker Sections policy measures on helping revive demand to tackle a
category:- deepening economic slowdown. pg 1
No. Category News in brief
1. Small and Marginal Farmers A first for RBI (Pg 1, The Hindu)
Artisans, village and cottage industries • Generally, the central banks typically cut or raise
2. where individual credit limits do not interest rates in increments of a quarter percentage
exceed ₹ 0.1 million point or multiples.
3. Beneficiaries under Government • The extent of cut was determined by the situation, the
Sponsored Schemes such as National RBI said. This is the first time the RBI has moved
rates by a figure that is not a multiple of 25 bps. A Zone Management Plans with support from the World
percentage point comprises 100 bps. Bank.
• Given the evolving economic situation, the National Water Development Agency (NWDA) (Pg 11,
assessment of MPC, based on demand conditions The Hindu)
etc., 25 bps cut was inadequate, while a 50 bps rate • The National Water Development Agency (NWDA) is
cut was excessive, said the RBI. a Registered Society under the Ministry of Water
Bandipur Tiger Reserve (Pg 8, The Hindu) Resources.
• The SC directed the continuation of the overnight Functions
traffic ban on the national highway running through o to carry out detailed studies, surveys and
the core area of the Bandipur tiger reserve. investigations in respect of Peninsular and
• The national highway connects Mysuru (Karnataka) to Himalayan Component of National Perspective
Kerala to supply essential commodities. for Water Resources Development.
Mekedatu Multi-Purpose Project (Pg 8, The Hindu) o to explore the feasibility of linking sub-basins of
• ‘Mekedatu’ is located at the confluence of Cauvery rivers in States like Bihar;
and Arkavathi rivers in Karnataka. o to take up the work for preparation of Detailed
• The project is disputed between Karnataka and Tamil Project Report (DPR) of Ken-Betwa link, which is
Nadu over the sharing of Cauvery waters. one of the priority links under Peninsular
• Karnataka intends to build a 'Balancing Reservoir' or Component of National Perspective Plan;
'Mini KRS' (Krishna Raja Sagar reservoir near o to undertake the work of preparation of DPRs of
Mysuru) across river Cauvery near Mekedaatu for intra-State links;
supplying potable water to Bengaluru and parts of o to undertake implementation of ILR projects and
Mysuru region in the near future. completion of water resources projects under
• However, Tamil Nadu is objecting that the project Pradhan Mantri Krishi Sinchai Yojana (PMKSY);
would affect the flow of Cauvery water to Tamil Nadu. and
• The project has also come under controversy as o to act as a repository of borrowed fund or loan
environmentalists fear irreversible damage to the from Banks / other institutions for the execution
ecosystem at the Cauvery Wildlife Sanctuary due to of projects.
large-scale submergence. • The then Ministry of Irrigation (now Ministry of Water
Draft Environmental and Social Management Resources) and Central Water Commission
Framework (ESMF) (Pg 9, The Hindu) formulated a National Perspective Plan (NPP) for
• The Environment Ministry has unveiled a draft plan Water Resources Development in 1980, envisaging
that will dictate how prospective infrastructure projects inter-basin transfer of water from surplus basins to
situated along the coast ought to be assessed before deficit ones with a view to minimize the regional
they can apply for clearance. imbalances and optimally utilize the available water
• The draft Environmental and Social Management resources.
Framework (ESMF) is part of a World Bank-funded • National Perspective Plan comprises of two
project. components viz. Himalayan Rivers Development and
• The document lays out guidelines out for coastal Peninsular Rivers Development.
States to adopt when they approve and regulate Indian Passport (Pg 11, The Hindu)
projects in coastal zones. • The "strength" of the Indian passport - countries it has
• So far three coastal States, namely Gujarat, Odisha visa-free access to - has weakened in the last decade.
and West Bengal, have prepared Integrated Coastal The passport ranked 86 of 187 countries in 2019,
while in 2010 it was ranked 77.
• Just 8 nations were added to its visa-free access list • Hong Kong Protests pg 14
from 2010-2019 - the lowest among BRICS nations. • National Disaster response Force pg 7
The on-going liquidity crunch faced by non-banking • National green Tribunal pg 2
finance companies (NBFCs) has made the Reserve • Concept of Airspace pg 1
Bank of India (RBI) to take further measures to • The Plastic Waste Management (Amendment) Rules
increase credit flow to the sector. 2018 pg 2
Bharat Bill Payment Central Unit (BBPCU) (Pg 15,
The Hindu)
• National Payments Corporation of India (NPCI) has BHARAT RATAN AND PADMA AWARDS,
been authorized by RBI as the Bharat Bill Payment
MINISTRY OF HOME AFFAIRS
• Context: Former President Pranab Mukherjee,
Central Unit (BBPCU).
Assamese singer-composer Bhupen Hazarika and
• It is responsible for setting business standards, rules
social activist Nanaji Deshmukh were awarded the
and procedures for technical and business
country's highest civilian award, Bharat Ratna, by the
requirements for all participants.
President.
• The BBPCU undertakes clearing and settlement
o Bhupen Hazarika and Nanaji Deshmukh will be
activities related to transactions routed
honoured posthumously. (Pg 1, the Hindu)
through Bharat BillPay.
Analysis
About Bharat Bill Payment Operating Unit (BBPOU)
Bharat Ratna
• Bharat Bill Payment Operating Unit aka BBPOU is
• Bharat Ratna is the highest civilian award of the
the entity that is authorized by Reserve Bank of India.
country.
• It can be a Bank or a Non-Bank.
• It is awarded in recognition of exceptional
• BBPOU may choose to integrate either with the
service/performance of the highest order in any field
customers, (COU: Customer OU) or with the billers
of human endeavour.
(Biller OU) or may wish to participate as both – which
means such BBPOU will be integrated with customers
as well as billers.
• Only authorised BBPOU - both banks and non-banks
authorised by RBI - can handle payment and
aggregation of payment services relating to bills under
the scope of Bharat BillPay.
Rocket Lab working on a Reusable Booster (Pg 22,
• It is treated on a different footing from Padma Award.
The Hindu)
• The recommendations for Bharat Ratna are made by
• Small-satellite launch firm Rocket Lab plans to
the Prime Minister to the President of India.
recover the core booster of its Electron rocket using a
• No formal recommendations for Bharat Ratna are
helicopter, a bold cost-saving concept that, if
necessary.
successful, would make it the second company after
• The number of Bharat Ratna Awards is restricted to a
Elon Musk’s SpaceX to reuse an orbital-class rocket
maximum of three in a particular year.
booster.
• Government has conferred Bharat Ratna Award on 48
• Unlike SpaceX’s Falcon 9 rocket, which reignites its
persons till date.
engines to land steadily back on Earth, Rocket Lab’s
Interesting facts about the Bharat Ratna
Electron will deploy a series of parachutes to slow its
fall through the Earth’s atmosphere.
• First recipients of this award were Dr. Sarvapalli • All persons without distinction of race, occupation,
Radhakrishnan, Sir C.V. Raman, and Chakravarti position or sex are eligible for these awards.
Rajagopalachari in 1954. o However, Government servants in-service
• Mother Teresa was the first naturalized Indian including those working with PSUs, except
citizen who received the Bharat Ratna Award in 1980. doctors and scientists, are not eligible for these
• Khan Abdul Ghaffar Khan (1987) and Nelson Mandela Awards.
(1990) are two non Indians who got Bharat Ratna • The award seeks to recognize works of distinction and
Award. is given for distinguished and exceptional
• Sachin Tendulkar is the first sportsperson and the achievements/service in all fields of
youngest Bharat Ratna Award Winner. activities/disciplines.
• Lal Bahadur Shastri was the first person to get this • The nomination process is open to the public. Even
award posthumously. self-nomination can be made.
• Subhash Chandra Bose was awarded with Bharat • The award is normally not conferred posthumously.
Ratna posthumously in 1992. But due to controversy o However, in highly deserving cases, the
(as there is no evidence of Subhash Chandra Bose's Government could consider giving an award
death) his family refused to accept the award as posthumously.
posthumous winner. • A higher category of Padma award can be conferred
o This is the only incident in the history of on a person only where a period of at least five
Bharat Ratna that an award was withdrawn. years has elapsed since conferment of the earlier
• Prime Ministers Jawaharlal Nehru (1947-64) and Padma award.
Indira Gandhi (1966-77, 1980-84) have been criticised o However, in highly deserving cases, a relaxation
for recommending their names to the president by can be made by the Awards Committee.
themselves to get the awards in 1955 and 1971 • The recipients are also given a small replica of the
respectively. medallion, which they can wear during any
• There is no provision that award should be given to ceremonial/State functions etc., if the awardees so
Indians only. desire.
• It is not mandatory that Bharat Ratna should be • The names of the awardees are published in the
awarded very year. Gazette of India on the day of the presentation
• The award does not carry any monetary grant. ceremony.
• The holders of the Bharat Ratna rank seventh in the • The total number of awards to be given in a year
Indian order of precedence. (excluding posthumous awards and to
• M.S. Subbalaxmi was the first musician who got this NRI/foreigners/OCIs) should not be more than 120.
award. • The award does not amount to a title and cannot be
Padma Awards used as a suffix or prefix to the awardees’ name
• Padma Awards, which were instituted in the year Who Decides
1954, are announced every year on the occasion • All nominations received for Padma Awards are
of Republic Day. placed before the Padma Awards Committee, which
• The award is given in three categories, namely, is constituted by the Prime Minister every year.
o Padma Vibhushan for exceptional and • The Padma Awards Committee is headed by the
distinguished service; Cabinet Secretary and includes Home Secretary,
o Padma Bhushan for distinguished service of a Secretary to the President and four to six eminent
high order; and persons as members.
o Padma Shri for distinguished service.
• The recommendations of the committee are submitted • India is also a member of the ADB's South Asia
to the Prime Minister and the President of India for Subregional Economic Cooperation (SASEC)
approval. program.
• The South Asia Subregional Economic Cooperation
ASIAN DEVELOPMENT BANK
• Context: Asian development bank has approved a (SASEC) program brings together Bangladesh,
$200mn loan for improving rural road infrastructure in Bhutan, India, Maldives, Myanmar, Nepal, and Sri
Maharashtra. (Pg 7, the Hindu) Lanka in a project-based partnership that aims to
Analysis promote regional prosperity.
What Is the Asian Development Bank? Strategy 2030
• Founded in 1966, the Asian Development Bank's • A long term strategy initiated by the Asian
(ADB) headquarters are in Manila, Philippines. Development Bank to address the financial
• ADB is composed of 68 shareholding members, 49 requirement of the Asian countries to deal with
of which are from the Asia and Pacific region and rest poverty.
from outside the region. LEGAL OR JURISTIC PERSON

• The Asian Development Bank's primary mission is to • Context: On the third day of the hearing on Ram
foster growth and cooperation among countries in the Janmabhoomi-Babri Masjid land dispute, the
Asia-Pacific Region. Supreme Court queried whether the birth place or
• It has been responsible for a number of major projects ‘Janmasthan’ can be regarded as a ‘juristic person’.
in the region and raises capital through the (Pg 9, the Hindu)
international bond markets. Analysis
o The ADB also relies on member contributions, • There are two types of persons, according to the
retained earnings from lending, and the country’s law: Natural, meaning a human individual
repayment of loans for funding of the capable of assuming obligations and holding rights.
organization. • The second group refers to “legal persons,” which
• The two largest shareholders of the Asian refers to entities endowed with juridical personality,
Development Bank are the United States and Japan. decided upon by the courts.
How the Asian Development Bank Works • Legal persons, being the arbitrary creations of the law,
• The Asian Development Bank provides assistance to may be of as many kinds as the law pleases like
its developing member countries, the private corporate personality, body politic, charitable unions
sector, and public-private partnerships through etc.
grants, loans, technical assistance, and equity • Legal persons have rights and co-relative duties; they
investments to promote development. can sue and be sued, can possess and transfer
Organisation property.
Board of Governors • Since they’re voiceless, this is mostly done through
• ADB's highest policy-making body is the Board of guardians and representatives.
Governors, which comprises one representative Below are some of the biggest examples of non-
from each member nation – 48 from the Asia-Pacific human “legal persons” in India.
and 19 from outside the region. Animals
Board of Directors • Entire animal kingdom including avian and aquatic
• The Governors elect 12 members to form the Board of species has a distinct legal persona with
Directors, which performs its duties full time at the corresponding rights, duties, and liabilities of a living
ADB headquarters. person.
South Asia Subregional Economic Cooperation
• The 2014 Animal Welfare Board of India versus • Some of which tend to treat money laundering as a
Nagaraja ruling stated that not only humans but stand-alone crime and also expand the ambit of
animals, too, had the right to dignity and fair treatment “proceeds of crime” to assets that may have been
as per article 21 of India’s Constitution. derived from any other criminal activity related to
Deities scheduled offences.
• For decades, temple idols have been given the status • Under the Act, the Enforcement Directorate is
of juristic persons. And they have exercised their empowered to conduct money laundering
“human” rights to fight legal battles via the trustees or investigation.
managing board in charge of the temple in which they • One of the most crucial amendments is doing away
are worshiped. with the pre-requisite of an FIR or chargesheet by
• Most famously, in a 2010 hearing of the long-drawn other agencies that are authorised to probe the
Ayodhya dispute, Bhagwan Sri Ram Virajman offences listed in the PMLA schedule.
became a litigant, fighting a case for his janmabhoomi • Another important change is the trial of both sets of
(birthplace) in front of the Lucknow bench of offences (the offence under this Act and the
Allahabad high court through his representative. scheduled offence) by the same court shall not be
Rivers construed as joint trial. pg 12
• To conserve the holy rivers Ganga and Yamuna, Arrest without warrant
massively polluted due to waste dumping and pilgrims’ • All PMLA offences will be cognisable and non-bailable.
ritual bathing, an Uttarakhand High Court in March Therefore, ED officers are empowered to arrest an
2017 deemed the water bodies “living entities.” accused without warrant, subject to certain conditions.
o Before India, New Zealand’s indigenous Māori • The scope of “proceeds of crime” has been expanded
people rallied to recognise the Whanganui river to empower the agency to act against even those
as an “ancestor” with the same rights as a properties which “may directly or indirectly be derived
human being in their country, too. or obtained as a result of any criminal activity
Corporations and more relatable to the scheduled offence”.
• To allow certain entities to own property and be • Another vital amendment makes concealment of
represented in the court of law, they are deemed proceeds of crime, possession, acquisition, use,
juristic persons. projecting as untainted money, or claiming as
• Corporations fall into that bracket. It shields owners untainted property as independent and complete
from personal liability of their company’s debts for the offences under the Act.
most part. o These activities have been explicitly declared to
• Banks, railways, universities, colleges, church, temple, be continuing offences until such time a person is
hospitals, municipalities, and gram panchayats directly or indirectly “enjoying the proceeds of
(village councils), among other such entities, are also crime”.
conferred legal personalities. Analysis
• Charitable funds and trust estates also enjoy the How money is laundered in India
same status. • Money Laundering refers to the conversion of money
which has been illegally obtained, in such a way that it
PREVENTION OF MONEY LAUNDERING ACT,
appears to have originated from a legitimate source.
2002
• Context: The Centre has issued a notification on o The term "money laundering" is said to have
certain changes in the Prevention of Money originated from the mafia ownership of
Laundering Act (PMLA). (Pg 12, the Hindu) Laundromats in the United States.
o The mafia earned huge amounts from extortion, Layering
gambling etc. and showed legitimate source • The Second stage in money laundering is layering.
(such as laundomats) for these monies. • The launderer engages in a series of conversions or
• In India, money laundering is popularly known as movements of the funds to distance them from their
Hawala transactions. source.
o Hawala is an alternative or parallel remittance • The funds might be channelled through the purchase
system. "Hawala" is an Arabic word meaning the and sale of investment instruments such as bonds,
transfer of money or information between two stocks, and traveller’s cheques or the launderer might
persons using a third person. simply wire the funds through a series of accounts at
o The system dates to the Arabic traders as a various banks across the globe, particularly to those
means of avoiding robbery. It predates western jurisdictions that do not cooperate in anti-money
banking by several centuries. laundering investigations.
• The Hawala Mechanism facilitated the conversion of Integration
money from black into white. • This is the stage where the funds are returned to the
o Black money refers to funds earned, on which legitimate economy for later extraction.
income and other taxes have not been paid. • Examples include investing in a company, purchasing
Black money is earned through illegally traded real estate, luxury goods, etc.
goods or services.
o While the money earned through legal means on • This is the final stage in the process.The launderer
which due taxes have been paid is referred to as makes it appear to have been legally earned and
white money. accomplishes integration of the “cleaned” money into
• Figure 1 lays down the process followed by the the economy.
Hawala operators. Money Laundering in India
• Out of 140 countries, India has been ranked 68th in
2018 in the Anti Money Laundering (AML) Basel Index
2013.
• AML Basel index is country risk ranking which focuses
on money laundering/terrorist financing risk,
consisting of 14 indicators of assessment.
• This clearly shows that India, in the present-day
scenario, is very vulnerable to money laundering
activities and is a high risk zone.
• India needs to curb Money laundering as the practice
is rampant across the country.
Prevention of Money Laundering Act, 2002
What is the legal authority to prosecute money
Placement laundering at national level?
• The first stage is the physical disposal of cash. • The Prevention of Money Laundering Act, 2002
• The launderer introduces his illegal profits into the (PMLA), which criminalises money laundering,
financial system. together with the rules and regulations prescribed by
• This placement is accomplished by depositing the regulators such as the Reserve Bank of India, the
cash in domestic banks or in other types of formal or Securities and Exchange Board of India and
informal financial institutions. Insurance Regulatory and Development Authority of
India, sets out the broad framework for the • The constitutional validity of the Circular has also
prosecution of money laundering in India with the been challenged.
Directorate of Enforcement (ED) being empowered by • However, non-compliance with the Circular has not
the Union Government to investigate and prosecute been made a schedules offence under the PMLA.
money laundering. • The Ministry of Corporate Affairs maintains a publicly
• PMLA also seeks to prevent money laundering by searchable corporate registry to assist financial
mandating record-keeping and reporting obligations institutions with their anti- money laundering customer
imposed on banks, financial institutions and due diligence responsibilities.
intermediaries. • Note: The Economic Intelligence Council is headed
What are proceeds of crime? by the Finance Minister of the Central Government.
• Any property derived or obtained directly or indirectly
SYRIA - U.S. - TURKEY - KURDS
by any person: • Context: Turkish and U.S. officials agreed on
o as a result of criminal activity; Wednesday to establish a joint operations centre to
o relating to a 'scheduled offence'; or
oversee the creation of a safe zone to manage
o the value of any such property. tensions between Ankara and U.S.-backed Kurdish
• Scheduled offences range from those relating to forces in Syria.
corporate fraud, terrorism, illegal trade of arms, o However, the move was strongly rejected by
wildlife, narcotics to bribery of public officials.
Syria.
• A wilful attempt to evade tax under section 51 of the • No details were provided on the size or nature of the
Black Money (Undisclosed Foreign Income and safe zone, but the deal appeared to provide some
Assets) and Imposition of Tax Act 2015 are also breathing room after Turkey had threatened an
scheduled offences. imminent attack on the Kurdish People's Protection
Is there any extra-territorial jurisdiction for the crime Units (YPG), which control a large swathe of northern
of money laundering? or Is money laundering of the Syria. (Pg 14, the Hindu)
proceeds of foreign crimes punishable? Analysis
• PMLA confers extra-territorial jurisdiction to the Idlib
government to prosecute the offence of money • Idlib province, along with the north of Hama province
laundering for 'offences of cross-border implications.' and western Aleppo province, is one of the last
• PMLA allows for attachment and confiscation of opposition strongholds in Syria after eight years of
equivalent assets in India or overseas whenever the civil war.
asset constituting the proceeds of crime is located • It is supposedly covered by a truce brokered in
abroad and cannot be forfeited. September by Russia and opposition-backer Turkey
• The offences of money laundering under the PMLA that spared the 2.7 million civilians living there from a
cannot be compounded. major government offensive.
To what extent have anti- money laundering • Last week, the UN said more than 350 civilians had
requirements been applied to the cryptocurrency been killed and 330,000 forced to flee their homes
industry?
since fighting escalated on in April.
• RBI's circular in April 2018 banned all entities • The government - which is backed by the Russian air
regulated by RBI which include banks, financial force - said the increase in attacks was due to
institutions, non-banking financial institutions, repeated truce violations by jihadists linked to al-
payment system providers, etc. from dealing in, or Qaeda who dominate the opposition stronghold.
facilitating any dealings in, cryptocurrencies.
• They make up the fourth-largest ethnic group in the
Middle East, but they have never obtained a
How did the Syrian war start? permanent nation state.
• Even before the conflict began, many Syrians were • Today, they form a distinctive community, united
complaining about high unemployment, corruption through race, culture and language, even though they
and a lack of political freedom under President Bashar have no standard dialect.
al-Assad. • They also adhere to a number of different religions
• In March 2011, pro-democracy demonstrations and creeds, although the majority are Sunni Muslims.
erupted in the southern city of Deraa, inspired by the Kurds are at the forefront of the fight against IS.
"Arab Spring" in neighbouring countries. • The Kurds - fighting under the banner of the Syrian
• When the government used deadly force to crush the Democratic Forces (SDF) alongside several local
dissent, protests demanding the president's Arab militias, and helped by US-led coalition airpower
resignation erupted nationwide. - have driven IS out thousands of square kilometres of
• The unrest spread and the crackdown intensified. territory in Syria and established control over
Opposition supporters took up arms, first to defend hundreds of kilometres along the border with Turkey.
themselves and later to rid their areas of security • In October 2017, SDF fighters captured the de facto
forces. Mr Assad vowed to crush what he called IS capital of Raqqa and were advancing south-
"foreign-backed terrorism". eastwards into the neighbouring province of Deir al-
• The violence rapidly escalated and the country Zour - the jihadists' last major foothold in Syria.
descended into civil war. • The gains have, however, brought the Kurds and their
Who are the Kurds and where do they come from? allies into direct contact with Russian-supported
• Between 25 and 35 million Kurds inhabit the Syrian government forces and Turkish-backed rebels,
Mesopotamian plains and the highlands straddling triggering clashes that have raised tensions between
the borders of Turkey, Iraq, Syria, Iran and Armenia. competing world powers.
Why is Turkey reluctant to help the Kurds battle IS?
• There is deep-seated hostility between the Turkish
state and the country's Kurds, who constitute 15% to
20% of the population.
• Even, Turkey’s relations with the U.S. are currently
rocky over U.S. support to the Syrian Kurdish militia,
the YPG, that Ankara considers a terrorist
organisation because of its close relations with the • The device was conceived courtesy the Arch Mission
secessionist PKK. Foundation (AMF), a U.S.-based non-profit whose
o YPG is an acronym whose translation means mission is to create repositories of human civilisation
People's Protection Units. It is the home grown and spread them through space.
defense forces of the Kurdish area of Syria. It • The Lunar Library contained a small sample from the
emerged after the Civil War erupted in Syria and Bodhi tree in India, along with material on learning
started to spill over into Syrian Kurdistan, now Hindi, Urdu and information on music.
known as Rojava, or Western Kurdistan. • The Lunar library also contained thousands of
o The Kurdistan Workers' Party or PKK (Partiya tardigrades — small, multicellular animals, first found
Karkerên Kurdistanê) is a Kurdish far-left militant by scientists in Antarctica, and known to be extremely
and political organization based in Turkey and resilient in hostile environments.
Iraq. o They can survive without food and water for
What do Syria's Kurds want? decades.
• Kurds make up between 7% and 10% of Syria's o Assuming that the Lunar library has survived
population. they could be the first living organisms splashed
• The Kurdish Parties in Syria say they are not seeking across the surface of the moon.
independence, but insist that any political settlement o The first microbes on the Moon are those left
to end the conflict in Syria must include legal behind in the human faeces from the astronauts
guarantees for Kurdish rights and recognition of aboard the Apollo missions of 1968-1972.
Kurdish autonomy. • This fact was kept secret for obvious reasons.
However it might not violated any provisions of the
LUNAR LIBRARY
• Context: A tiny biological sample from India may Outer Space Treaty.
have already made it to the Moon ahead of the o The treaty is a global, United Nations-backed
Chandrayaan 2. (Pg 22, the Hindu) agreement that bars countries from pursuing
Analysis actions that could “harmfully contaminate” outer
• In February this year, an Israeli lunar lander called space including the Moon.
Beresheet (Hebrew for ‘the beginning’) began its CITES

journey to the Moon aboard a SpaceX rocket in its • Context: India has submitted proposals regarding
quest to be the first privately-funded spacecraft to changes to the listing of various wildlife species in the
land on the Moon. CITES secretariat meeting, scheduled later this month
• A month later, it was reported, Beresheet had crash- in Geneva, Switzerland. (Pg 22, the Hindu)
landed and was irredeemably broken except, for a Analysis
curious, quirky payload called the Lunar Library. • The proposals submitted are regarding changes in the
Lunar Library listing of the:
• The Lunar Library is a 30 million page archive of o smooth-coated otter (Vulnerable),
human history and civilisation, covering all subjects, o small-clawed otter (Vulnerable),
cultures, nations, languages, genres, and time periods. o Indian star tortoise (Vulnerable),
• In the event of human extinction, it’s meant to be a o Tokay gecko (Least Concern),
‘backup ‘ of earth-life. o wedgefish and
• It is housed within a 100 gram nanotechnology device o Indian rosewood (Vulnerable).
that resembles a 120mm DVD. However it is actually • The small clawed otter lives in wetlands stretching
composed of 25 nickel discs, each only 40 microns from India through Southeast Asia. India, Nepal and
thick. the Philippines propose transferring it from Appendix
II to Appendix I, citing the high risk of extinction due to • In addition to plants and animals and their parts, the
the international pet trade (as well as the loss and agreement also restricts trade in items made from
degradation of its habitat). such plants and animals, such as clothing, food,
o Bangladesh, India and Nepal also note the high medicine, and souvenirs.
risk of extinction in arguing for transferring the • By 2019 more than 5,800 animal and 30,000 plant
smooth-coated otter from Appendix II to I. species had been classified.
• The star tortoise boasts a unique and striking shell • The Parties to CITES are collectively referred to as
pattern that appeals to the pet trade; Bangladesh, the Conference of the Parties. Every two to three
India, Senegal and Sri Lanka propose transferring it years, the Conference of the Parties meets to review
from Appendix II to Appendix I. the implementation of the Convention.
• A similar proposal has been made to include the Appendices
Tokay gecko in Appendix I. • The species covered by CITES are listed in three
• A diverse group of 34 countries (including India) Appendices, according to the degree of protection
propose that CITES manage trade in two species of they need.
wedgefishes, which have experienced rapid • Appendix I includes species threatened with
population declines of 80% or more in some regions. extinction.
• The proposal on North Indian rosewood is the only o Trade in specimens of these species is permitted
one at CoP18 recommending that a species be only in exceptional circumstances.
deleted from the CITES appendices. • Appendix II includes species not necessarily
o Bangladesh, Bhutan, India and Nepal propose threatened with extinction, but in which trade must be
removing this tree, which is used for timber and controlled in order to avoid utilization incompatible
many other purposes, from Appendix II because with their survival.
it is abundant and sustainably harvested. • Appendix III contains species that are protected in at
• Note: TRAFFIC is an international wildlife trade least one country, which has asked other CITES
monitoring network. Parties for assistance in controlling the trade.
CITES o Changes to Appendix III follow a distinct
• CITES (the Convention on International Trade in procedure from changes to Appendices I and II,
Endangered Species of Wild Fauna and Flora) is an as each Party’s is entitled to make unilateral
international agreement between governments. amendments to it.
• Its aim is to ensure that international trade in
NATIONAL MEDICAL COMMISSION BILL, 2019
specimens of wild animals and plants does not • Context: The National Medical Commission Bill, 2019
threaten their survival. was passed by the Parliament.
• The convention resulted from a resolution adopted at • It seeks to regulate medical education and practice in
a 1963 meeting of member countries of the India. (Pg 12, The Hindu)
International Union for Conservation of Nature (IUCN). How is medical education and practice regulated
• Although CITES is legally binding on the Parties – in currently?
other words they have to implement the Convention –
• The Medical Council of India (MCI) is responsible for
it does not take the place of national laws. regulating medical education and practice.
• The species covered by CITES are listed in three • Over the years, there have been several issues with
appendices on the degree of protection they require. the functioning of the MCI with respect to
• For many years CITES has been among the its regulatory role, composition, allegations of
conservation agreements with the largest membership, corruption, and lack of accountability.
with now 183 Parties.
o For example, MCI is an elected body where its President and four members (of which two members
members are elected by medical practitioners will be part-time), appointed by the central
themselves, i.e., the regulator is elected by the government (on the recommendation of a search
regulated. committee).
• The Bill repeals the Indian Medical Council Act, 1956 • These bodies are:
and dissolves the current MCI. • The Under-Graduate Medical Education Board
• The 2019 Bill sets up the National Medical (UGMEB) and the Post-Graduate Medical
Commission (NMC) as an umbrella regulatory body Education Board (PGMEB)
with certain other bodies under it. o These two bodies will be responsible for
• Under the Bill, states will establish their respective formulating standards, curriculum, guidelines for
State Medical Councils within three years. These medical education, and granting recognition to
Councils will have a role similar to the NMC, at the medical qualifications at the under-graduate and
state level. post-graduate levels respectively.
• Functions of the NMC include: • The Medical Assessment and Rating Board
o (i) laying down policies for regulating medical o The Board will have the power to levy monetary
institutions and medical professionals, penalties on institutions which fail to maintain the
o (ii) assessing the requirements of human minimum standards as laid down by the UGMEB
resources and infrastructure in healthcare, and the PGMEB.
o (iii) ensuring compliance by the State Medical o It will also grant permissions for establishing new
Councils with the regulations made under the Bill, medical colleges, starting postgraduate courses,
and and increasing the number of seats in a medical
o (iv) framing guidelines for determination of fee for college.
up to 50% of the seats in the private medical • The Ethics and Medical Registration Board
institutions. o This Board will maintain a National Register of all
Who will be a part of the NMC? the licensed medical practitioners in the country,
• The Bill replaces the MCI with the NMC, whose and also regulate professional and medical
members will be nominated. conduct.
• The NMC will consist of 25 members, including: o Only those included in the Register will be
o (i) Director Generals of the Directorate General allowed to practice as doctors.
of Health Services and the Indian Council of o The Board will also maintain a register of all
Medical Research, licensed community health providers in the
o (ii) Director of any of the AIIMS, country.
o (iii) five members (part-time) to be elected by the How is the Bill changing the eligibility guidelines for
registered medical practitioners, and doctors to practice medicine?
o (iv) six members appointed on rotational basis • There will be a uniform National Eligibility-cum-
from amongst the nominees of the states in the Entrance Test for admission to under-graduate and
Medical Advisory Council. post-graduate super-speciality medical education in
• Of these 25 members, at least 15 (60%) are medical all medical institutions regulated under the Bill.
practitioners. • Further, the Bill introduces a common final year
What are the regulatory bodies being set up under undergraduate examination called the National Exit
the NMC? Test for students graduating from medical institutions
• The Bill sets up four autonomous boards under the to obtain the license for practice.
supervision of the NMC. Each board will consist of a
• This test will also serve as the basis for admission into • Spooked by the move, FPIs pulled out about ₹20,500
post-graduate courses at medical institutions under crore worth of stocks on the Bombay Stock Exchange,
this Bill. National Stock Exchange and Metropolitan Stock
• Foreign medical practitioners may be permitted Exchange in the capital market segment by August 2.
temporary registration to practice in India. • In a bid to ease the concerns of foreign portfolio
o However, the Bill does not specify the validity investors (FPIs) over the increased surcharge
period of this license to practice. announced in the Budget, the Finance Ministry is
How will the issues of medical misconduct be considering “grandfathering” the income earned by
addressed? them up to the Budget (July).
• The State Medical Council will receive complaints o A grandfather clause or grandfathering is a
relating to professional or ethical misconduct against provision in which an old rule continues to apply
a registered medical practitioner. to some existing situations while a new rule will
• If the medical practitioner is aggrieved of a decision of apply to all future cases.
the State Medical Council, he may appeal to the o Those exempt from the new rule are said to
Ethics and Medical Registration Board. have grandfather rights or acquired rights, or to
• If the medical practitioner is aggrieved of the decision have been grandfathered in.
of the Board, he can approach the NMC to appeal • Under the proposal, FPIs that are so far structured as
against the decision. trusts will not have to pay the increased surcharge.
How does the Bill regulate community health But if they don’t change their structure, they will have
providers? to pay the surcharge from the set date.
• As of January 2018, the doctor to population ratio in • Markets reacted favourably to the news that the
India was 1:1655 compared to the World Health surcharge would be tweaked, with the Sensex and the
Organisation standard of 1:1000. Nifty posting their biggest single-day gains since May.
• To fill in the gaps of availability of medical National Commodities And Derivatives Exchange
professionals, the Bill provides for the NMC to grant (NCDEX) (Pg 5, the Hindu)
limited license to certain mid-level practitioners • The National Commodities and Derivatives Exchange
called community health providers, connected with the (NCDEX) is a commodities exchange dealing
modern medical profession to practice medicine. primarily in agricultural commodities in India.
• These mid-level medical practitioners may prescribe • The exchange was founded in 2003 by some of
specified medicines in primary and preventive India's leading financial institutions such as ICICI
healthcare. Bank Limited, the National Stock Exchange of India
• However, in any other cases, these practitioners may and the National Bank for Agricultural and Rural
only prescribe medicine under the supervision of a Development, among others.
registered medical practitioner. • NCDEX is a public limited company incorporated on
News in brief April 23, 2003 under the Companies Act, 1956.
Winning back the trust of FPIs (Pg 1, 15, the Hindu) • NCDEX is regulated by Securities and Exchange
• Finance Minister in her Budget speech on July 5 had Board of India.
announced an increase in the surcharge levied on • NCDEX is subjected to various laws of the land like
individuals earning more than ₹2 crore a year. the Securities Contracts (Regulation) Act, 1956,
• This increased surcharge would be applicable on FPIs Companies Act, Stamp Act, Contract Act and various
that are structured as trusts, since those are treated other legislations.
similarly to individuals for income tax purposes. • It is one of the top commodity exchanges in India
based on value and the number of contracts, second
only to the Multi Commodity Exchange (MCX) with its
focus on energy and precious metals.
NCDEX and Indian Agriculture
• In establishing and maintaining an online futures
market for crops, NCDEX has helped increase
THE INSOLVENCY AND BANKRUPTCY CODE
market transparency.
• Context: All the major amendments in the Code.
• This has resulted in farmers in India conduct price
Analysis
discovery, helping them price their goods more
• The Insolvency and Bankruptcy Code, 2016 was
accurately even if they are not active in the futures
enacted to provide a time-bound process to resolve
market.
insolvency among companies and individuals.
• Middlemen called commission agents previously
o Insolvency is a situation where an individual or
controlled much of the market information in India, so
company is unable to repay their outstanding
the introduction of online commodity exchanges like
debt.
NCDEX has greatly improved the information
• Salient Feature:
asymmetry.
o a) The Code outlines separate insolvency
• Exchanges like NCDEX have also played a key role in
resolution processes for individuals, companies
improving Indian agricultural practices.
and partnership firms.
o By standardizing the quality specifications of
o b) The process may be initiated by either the
various crops through contracts, the NCDEX has
debtor or the creditors.
raised quality awareness.
o c) A maximum time limit, for completion of the
o Farmers in India are increasingly focussed on
insolvency resolution process has been set for
testing requirements and enacting farming
corporates and individuals.
practices that result in consistent, high-quality
o d) For companies, the process will have to be
yields.
completed in 180 days, which may be extended
NCDEX as a Benchmark
by 90 days, if a majority of the creditors agree.
• Due to its grounding in agricultural products, NCDEX
o e) For start ups (other than partnership firms),
hosts some contracts that are de-facto global
small companies and other companies (with
benchmarks for commodities like coriander, cumin
asset less than Rs. 1 crore), resolution process
and chickpeas.
would be completed within 90 days of initiation of
• NCDEX is seen as a major source for information on
request which may be extended by 45 days.
spices, as India is the leading producer and consumer
• The Insolvency and Bankruptcy Code, 2016 (IBC)
of spices.
proposes two separate tribunals to oversee the
process of insolvency resolution, for individuals and
• Hong Kong Protests pg 14
companies:
• National Disaster response Force pg 9
o (i) the National Company Law Tribunal for
• National green Tribunal pg 2
Companies and Limited Liability Partnership
• Concept of Airspace pg 1
firms; and
• The Solid Waste Management (Amendment) Rules
o (ii) the Debt Recovery Tribunal for individuals
2016 pg 2
and partnerships.
• National Register of Citizens pg 1
• Under the Code, a financial creditor may file an
• Bharat Stare VI Norms pg 16
application before the National Company Law
• BrahMos pg 9
Tribunal (NCLT) for initiating the insolvency resolution o Those who have executed an enforceable
process. guarantee in favour of a creditor, in respect of a
• The NCLT must find the existence of default within Corporate Debtor undergoing a Corporate
14 days. Insolvency Resolution Process or Liquidation
• Thereafter, a Committee of Creditors (CoC) consisting Process under the Code.
of financial creditors will be constituted for taking • It also places restrictions for such persons to
decisions regarding insolvency resolution. participate in the resolution or liquidation process.
• The CoC may either decide to restructure the debtor’s o Accordingly, companies, promoters and
debt by preparing a resolution plan or liquidate the associate companies undergoing insolvency
debtor’s assets. resolution or liquidation under the Code would
• The CoC will appoint a resolution professional who not be eligible to bid for the stressed assets.
will present a resolution plan to the CoC. • The Ordinance provides such checks by specifying
• The CoC must approve a resolution plan, and the that the Committee of Creditors (CoC) ensure the
resolution process must be completed within 180 viability and feasibility of the resolution plan before
days. approving it.
o This may be extended by a period of up to 90 o The CoC is also empowered to reject a
days if the extension is approved by NCLT. resolution plan where the resolution applicant is
• If the resolution plan is rejected by the CoC, the not eligible under the new provisions.
debtor will go into liquidation. o In case there is no other plan available with the
• The Code provides an order of priority for the CoC, it may invite fresh resolution plans.
distribution of assets in case of liquidation of the The Insolvency and Bankruptcy code Amendments,
debtor. 2018:
o This order places financial creditors ahead of • In a major change, homebuyers would now be
operational creditors (e.g., suppliers). treated as financial creditors or, in other words, on
o In a 2018 Amendment, home-buyers who paid par with banks.
advances to a developer were to be considered • The amendment enables homebuyers (either as an
as financial creditors. individual or group) to initiate insolvency proceedings
o They would be represented by an insolvency against errant builders.
professional appointed by NCLT. • Money given to real estate companies by homebuyers
• The Insolvency and Bankruptcy Code was first gets the commercial effect of a borrowing.
amended in 2017. • Being financial creditors, their voting share will be in
• The amendments put in place safeguards to prevent proportion to the financial debts owed to them.
unscrupulous, undesirable persons from misusing or • Homebuyers shall have the right to be represented in
vitiating the provisions of the Code. the committee of creditors (CoC), which takes the key
• Those being made ineligible (by Section 29A of the decision regarding revival of the company or its
Code) include: liquidation.
o Willful Defaulters, • The amendment has changed the voting share
o Those who have their accounts classified as required in CoC meetings.
Non-Performing Assets (NPAs) for one year or • For extending the insolvency process beyond 180
more and are unable to settle their overdue days till 270 days and for appointment of the
amounts before submission of the Resolution resolution professional (who oversees the process),
Plan, now a voting share of 66% is sufficient, compared
with earlier requirement of 75%.
• Unless a specific approval is required in the Code, all Resolution plan
other decisions of the CoC can be taken with 51% • The Code provides that the resolution plan must
voting share against the earlier norm of 75%. ensure that the operational creditors receive an
• Withdrawal from the insolvency process is permitted amount which should not be lesser than the amount
with the approval of 90% of voting share of the CoC. they would receive in case of liquidation.
Information Utilities • The Bill amends this to provide that the amounts to be
• Information utility is an information network which paid to the operational creditor should be the higher
would store financial data like borrowings, default and of:
security interests among others of firms. o (i) amounts receivable under liquidation, and
• The objective behind information utilities is to provide o (ii) the amount receivable under a resolution plan,
high-quality, authenticated information about debts if such amounts were distributed under the same
and defaults. order of priority (as for liquidation).
• Information utilities are governed by the • For example, if the default were for Rs 1,000 crore
Insolvency and Bankruptcy code 2016 and and the resolution professional recovered Rs 800
Insolvency and Bankruptcy Board of India crore, the operational creditor must at least get an
(Information Utilities) Regulations 2017. amount which they would have received if Rs 800
• The Insolvency and Bankruptcy Board of India (IBBI) crore have been obtained through liquidation
overseas aspects such as registration and proceeds.
cancellation of these entities, their shareholding and • Further, the Bill states that this provision would also
governance among others. apply to insolvency processes:
• Recently, IBBI eased norms for information utilities, o (i) that have not been approved or rejected by
allowing Indian firms listed on stock exchanges to the National Company Law Tribunal (NCLT), (ii)
hold 100% in such firms. that have been appealed to the National
• It also allowed individuals to hold 51% in the Company Appellate Tribunal or Supreme Court,
utility for a period of three years. and
• National e-Governance Services Ltd (NeSL) became o (iii) where legal proceedings have been initiated
India’s first information utility (IU) for bankruptcy cases in any court against the decision of the NCLT.
under the Insolvency and Bankruptcy Code 2016. Initiation of resolution process
• National e-Governance Services Ltd (NeSL) is • As per the Code, the NCLT must determine the
owned by State Bank of India and Life Insurance existence of default within 14 days of receiving a
Corporation Ltd., among others. resolution application.
The Insolvency and Bankruptcy Code (Amendment) • Based on its finding, NCLT may accept or reject the
Bill, 2019 application.
• The Insolvency and Bankruptcy Code (Amendment) • The Bill states that in case the NCLT does not find the
Bill, 2019 was passed by the Parliament. existence of default and has not passed an order
• The Bill addresses three issues. within 14 days, it must record its reasons in writing.
o First, it strengthens provisions related to time- Time-limit for resolution process
limits. • The Code states that the insolvency resolution
o Second, it specifies the minimum payouts to process must be completed within 180 days,
operational creditors in any resolution plan. extendable by a period of up to 90 days.
o Third, it specifies the manner in which the • The Bill adds that the resolution process must be
representative of a group of financial creditors completed within 330 days.
(such as home-buyers) should vote.
• This includes time for any extension granted and the o They receive heavy amounts of rainfall over short
time taken in legal proceedings in relation to the periods. So, there is almost direct rock fall quite
process. frequently in these places along with landslides
• On the enactment of the Bill, if any case is pending for and debris avalanches.
over 330 days, the Bill states it must be resolved
MERCURY CONTAMINATION
within 90 days. • Context: A research has found that the amount of
Representative of financial creditors mercury found in fish have been different in
• The Code specifies that, in certain cases, such as different species – some types of fish have less
when the debt is owed to a class of creditors beyond mercury than before, and some, alarmingly more,
a specified number, the financial creditors will be despite overall reductions in mercury release into
represented on the committee of creditors by an the sea since the 1970s.
authorised representative. Analysis
• These representatives will vote on behalf of the • The research also studied how climate change
financial creditors as per instructions received from
impacts mercury accumulation in fish.
them. • The variations in the accumulation of mercury in fish
• The Bill states that such representative will vote on is the result of:
the basis of the decision taken by a majority of the o overfishing, which leads to dietary changes
voting share of the creditors that they represent.
among marine animals;
LANDSLIDES IN INDIA o variations in the temperature of the sea water,

• Context: At least 40 feared trapped in landslides in which leads to changes in fish metabolism that
Kerala. gears towards survival rather than growth; and
Analysis o changes in the amounts of mercury found in sea
• In our country, debris avalanches and landslides water as a result of pollution.
occur very frequently in the Himalayas. • Using this understanding, the researchers also
• There are many reasons for this. modelled the mercury levels found in the Atlantic Blue
o The Himalayas are tectonically active. Fin Tuna (ABFT).
o They are mostly made up of sedimentary rocks • There was a decrease in tissue mercury levels in
and unconsolidated and semi-consolidated the ABFT between 1990 and 2012, and this was
deposits. driven by a fall in sea temperature during that period.
o The slopes are very steep. • However, continued warming would cause a
• Compared to the Himalayas, the Nilgiris bordering reversal and the amount of mercury in ABFT could
Tamilnadu, Karnataka, Kerala and the Western Ghats increase to almost 30% by 2030.
along the west coast are relatively tectonically • This highlights the importance of sea temperature on
stable and are mostly made up of very hard rocks; mercury accumulation in the marine food chain.
but, still, debris avalanches and landslides occur Mercury
though not as frequently as in the Himalayas, in these • Mercury is a naturally occurring element that is found
hills. Why? in air, water and soil.
o Many slopes are steeper with almost vertical • Exposure to mercury – even small amounts – may
cliffs and escarpments in the Western Ghats and cause serious health problems, and is a threat to the
Nilgiris. development of the child in utero and early in life.
o Mechanical weathering due to temperature • Mercury may have toxic effects on the nervous,
changes and ranges is pronounced. digestive and immune systems, and on lungs, kidneys,
skin and eyes.
• Mercury is considered by WHO as one of the top Analysis
ten chemicals or groups of chemicals of major public • One Nation One Ration Card’ scheme will allow
health concern. portability of food security benefits.
• People are mainly exposed to methylmercury, an • This means poor migrant workers will be able to buy
organic compound, when they eat fish and shellfish subsidised rice and wheat from any ration shop in
that contain the compound. the country, so long as their ration cards are linked to
• Methylmercury is very different to ethylmercury. Aadhaar.
Ethylmercury is used as a preservative in some • A migrant will be allowed to buy a maximum of 50%
vaccines and does not pose a health risk. of the family quota.
Bioaccumulation • While Aadhaar linkage is not necessary to access
• It is the accumulation of a substance, such as a toxic NFSA benefits in a beneficiary’s local registered
chemical, in various tissues of a living organism. ration shop, located closest to her home address, it
• Bioaccumulation takes place within an organism when will be necessary to access the portability scheme.
the rate of intake of a substance is greater than the • Migrants would only be eligible for the subsidies
rate of excretion or metabolic transformation of that supported by the Centre, which include rice sold at Rs.
substance 3/kg and wheat at Rs. 2/kg.
Biomagnification • Even if a beneficiary moved to a State where grains
• It is the increasing concentration of a substance, such were given for free, that person would not be able to
as a toxic chemical, in the tissues of organisms at access those benefits, as they were funded by the
successively higher levels in a food chain. State exchequer.
• As a result of biomagnification, organisms at the top • Ten States -- Andhra Pradesh, Gujarat, Haryana,
of the food chain generally suffer greater harm from a Jharkhand, Karnataka, Kerala, Maharashtra,
persistent toxin or pollutant than those at lower levels. Rajasthan, Telangana and Tripura – already offer
Minamata Convention this portability.
• Recently, the Union Cabinet has also approved the
PM KISAN MAAN DHAN YOJNA
proposal for ratification of Minamata Convention on • Context: The Union Government has started
Mercury and depositing the instrument of ratification registration for its new pension scheme.
enabling India to become a Party of the Convention. Analysis
• The Minamata Convention on Mercury urges • Pradhan Mantri Shram Yogi Maan-dhan Yojana (PM-
enterprises to move to mercury-free alternatives in SYM) is a mega pension scheme for unorganised
products and non-mercury technologies in sector.
manufacturing processes. • It is a voluntary and contributory pension scheme that
• The approval entails Ratification of the Minamata will engage as many as 42 crore workers in the
Convention on Mercury along with flexibility for unorganised sector including small and marginal
continued use of mercury-based products and farmers owing less than two hectares of land.
processes involving mercury compound up to • The unorganised sector workers, who belong to the
2025.
entry age group of 18-40 years, will be eligible for the
ONE NATION ONE RATION CARD SCHEME scheme.

• Context: The government launched inter-state • The income should be less than Rs 15,000 per
portability of ration cards between Telangana-Andhra month under this scheme and workers should not be
Pradesh and Maharashtra-Gujarat as a pilot project to covered under New Pension Scheme (NPS),
implement ‘One Nation, One Ration Card’ across the Employees’ State Insurance Corporation (ESIC)
country by June 1, 2020.
scheme or Employees’ Provident Fund Organisation Haemophilus Influenzae type b (Hib), Measles,
(EPFO). Rubella, Rotavirus diarrhoea and Japanese
Benefits of PM-SYM Encephalitis (JE).
• Each subscriber under the scheme will receive o Rubella, JE and Rotavirus vaccine are given in
minimum assured pension of Rs 3000 per month after select states and districts.
attaining the age of 60 years. • Despite being operational for over 30 years, UIP has
• In case of death of the subscriber before retirement been able to fully immunize only 65% children in the
date, the spouse may continue in the scheme by first year of their life and the increase in coverage was
paying the remaining contributions till the remaining stagnated in the past 5 years (before 2014) to an
age of the deceased farmer. average of 1% every year.
• If the spouse does not wish to continue, the total Mission Indradhanush
contribution made by the farmer along with interest • To accelerate the process of immunization by
will be paid to the spouse. covering 5% and more children every year,
• If the subscriber dies after the retirement date, the Indradhanush mission was adopted.
spouse will receive 50% of the pension as Family • Mission Indradhanush aims to ensure that at least
Pension. 90% of the children under the age of two years and
• After the death of both the subscriber and the spouse, pregnant women, who are either unvaccinated, or are
the accumulated corpus shall be credited back to the partially vaccinated against vaccine preventable
Pension Fund. diseases, are fully immunized with all available
vaccines by 2020.
UNIVERSAL IMMUNIZATION PROGRAMME
• Mission Indradhanush does not target to reduce post
(UIP)
• Context: The Health Ministry has been decided to natal death rate but targets to reduce diseases and
provide Rotavirus vaccine to every child across all 36 death due to vaccine preventable diseases.
states and UTs by September, 2019. Intensified Mission Indradhanush (IMI)
Analysis • It is a supplemental aggressive action plan to cover all
• Full immunization against preventable childhood left outs and drop outs in select districts and urban
diseases is the right of every child. areas with low routine immunization coverage to
• With a view to provide this right to every child, the achieve the target of more than 90% coverage in a
Government of India launched the Universal specific time-frame (December 2018).
Immunization Program (UIP) in 1985. • Mission Indradhanush is under the Ministry of Health
• India's Universal Immunisation Programme (U.I.P.) is and Family Welfare.
one of the largest in the world in terms of: Measles-Rubella Vaccination Campaign India, 2017
o quantities of vaccine used, • Measles and Rubella are highly contagious viral
o the number of beneficiaries, diseases that are spread by contact with an infected
o the number of Immunisation session organised, person through coughing and sneezing.
o the geographical spread and diversity of areas • Measles weakens the immune system of the body.
covered. o Hence infection with Measles often leads to
• The UIP provides free of cost vaccines to all children serious complications that include blindness,
across the country to protect them against 12 life encephalitis, severe diarrhoea and severe
threatening diseases. respiratory infections such as pneumonia.
• These twelve vaccine preventable diseases are o Most measles-related deaths are caused by
Tuberculosis, Pertussis, Diphtheria, Tetanus, complications associated with the disease.
Hepatitis B, Polio, Pneumonia and Meningitis due to
• Children below five years are prone to the infection • The purpose of the Measles-Rubella campaign is to
and one-third of all measles-related deaths protect children and eliminate transmission of
worldwide occur in India. Measles and Rubella from the community by
• Vitamin A is key to immune system function, and vaccinating 100% target children with MR vaccine.
children with VAD are more likely to contract common • The conduct of Measles-Rubella vaccination
illnesses like measles than children without a campaigns was an important factor in achieving
deficiency. measles elimination in the Western Hemisphere
o Children with VAD are also more likely to die (2002), and the elimination of indigenous rubella in
from respiratory and diarrheal diseases. 2009.
o Vitamin A deficiency (VAD), affecting one-third of • The campaign dose will be administered to all children
children in the world under age 5, is the leading falling between the age group of 9 months to less
cause of childhood blindness. than 15 years of age, irrespective of any past history
o Golden rice is a variety of rice produced through of disease or vaccination.
genetic engineering to biosynthesize beta- • India has already beaten smallpox, polio, maternal
carotene, a precursor of vitamin A. and neonatal tetanus and, very recently, yaws.
o Golden Rice is a textbook example o India was the first country in the world to
of biofortification, genetically engineered to become YAWS-free.
contain high levels of the vitamin A precursor o This accomplishment is significant as India has
beta-carotene. achieved the milestone of being YAWS-free
• Rubella is a mild viral infection that occurs most much before the WHO global target year of
often in children and young adults. 2020.
• Infection with Rubella may be associated with o YAWS is a kind of bacterial infection that
swelling of lymph nodes and joint pain. affects skin, bones and joints.
• Rubella infection during pregnancy can cause • Elimination of measles will contribute to achieving
abortion, stillbirth and may lead to multiple birth Sustainable Development Goal’s target 3.2 which,
defects in the new born; like blindness, deafness, among others, aims to end preventable deaths of
heart defects; known as Congenital Rubella newborns and children under five years of age by
Syndrome (CRS). 2030.
• India accounts for around one third of all children Why is inactivated polio virus vaccine (IPV) now been
born worldwide with congenital rubella syndrome introduced when India has already eradicated polio?
(CRS). • Although India has been declared polio free, wild
• No specific treatment is available for measles and poliovirus is still present in neighbouring countries
rubella but these diseases can easily be prevented by such as Afghanistan and Pakistan.
vaccination. • The poliovirus can be imported by travellers across
• India, along with ten other WHO South East Asia countries.
Region member countries, have resolved to • Till such time as the poliovirus is not eradicated from
eliminate measles and control rubella/congenital all the countries of the world, the threat of re-
rubella syndrome (CRS) by 2020. emergence and re-infection of polio remains.
• In this direction, Ministry of Health & Family Welfare • This is an important step towards global; eradication
has initiated measles-rubella (MR) vaccination of polio which is being implemented in all countries.
campaign in the age group of 9 months to less than • 2014: No Wild Polio virus case was reported from the
15 years in a phased manner across the nation. country for the last three years and India had a
historic achievement and was certified as “polio free
country” along with other South East Asia Region • The all-India IIP data is used for estimation of
(SEAR) countries of WHO. Gross Value Added of Manufacturing sector on
quarterly basis.
INDEX OF INDUSTRIAL PRODUCTION (IIP)
• Context: A monthly news. • The industries are divided into six use-based sectors,
Analysis in descending order of their weights:
Index of Industrial Production (IIP) o Primary goods (weight 34%),
• It measures the short-term changes in the volume of o Intermediate goods (weight 17%),
production of a basket of industrial products during a o Consumer non-durables (weight 15%),
given period with respect to that in a chosen base o Consumer durables (weight 13%),
period. o Infrastructure/ construction goods (weight 12%),
• It is computed and published by the Central o Capital goods (weight 8%).
Statistical Organisation (CSO) on monthly basis • IIP is compiled using data received from 14 source
(with a time-lag of 6 weeks as per the norms of IMF). agencies viz.

o (i) Department of Industrial Policy & Promotion
• It is a composite indicator that measures the growth
rate of industry groups classified under, (DIPP); it alone supplies data for 322 out of 407
o Broad sectors, namely, Mining, Manufacturing item groups with a weight of 47.54% in overall
and Electricity; IIP;

o (ii) Indian Bureau of Mines;
o Use-based sectors, namely Basic Goods,
Capital Goods and Intermediate Goods. o (iii) Central Electricity Authority;
• Currently IIP figures are calculated considering 2011- o (iv) Joint Plant Committee, Ministry of Steel;
12 as base year with around 407 items. o (v) Ministry of Petroleum & Natural Gas;
• The monthly figure of production value is first o (vi) Office of Textile Commissioner;
deflated by the Wholesale Price Index (WPI) of the o (vii) Department of Chemicals & Petrochemicals;
corresponding categories, released by the Office of o (viii) Directorate of Sugar & Vegetable Oils;
the Economic Adviser, Ministry of Industry. o (ix) Department of Fertilizers;
• The scope of the IIP as recommended by the United o (x) Tea Board;
Nations Statistical Office (UNSO) includes mining, o (xi) Office of Jute Commissioner;
manufacturing, construction, electricity, gas and water o (xii) Office of Coal Controller;
supply. But due to constraints of data availability, the o (xiii) Railway Board; and
IIP compiled in India has excluded construction, o (xiv) Coffee Board.
gas and water supply sectors. Core Industries
• Following are the three sectors of the IIP as per the • Index of Eight Core Industries (base: 2011-12)
revision based on 2011-12 series. • The Eight Core Industries comprise 40.27 % of the
o (i) Mining (1 item, about 14.3% weight), weight of items included in the Index of Industrial
o (ii) Manufacturing (405 items, about 77.6% Production (IIP).
weight),and • The data relating to core industries is released by

the Ministry of Commerce and Industry.
o (iii) Electricity (1 item, about 7.9% weight),.
• Electricity generation from renewable energy sources • The eight core industries are, in descending order
has been included under the ‘Electricity’ sector. of their weights:
• Weights are rationalised to appropriately to reflect o Petroleum Refinery Products (weight: 28.04%)
the actual value addition of each sector incorporating o Electricity (weight: 19.85%)
effects of subsidies. o Steel (weight: 17.92 %)

o Coal production (weight: 10.33 %)
o Crude Oil (weight: 8.98 %) • It is the fourth most valuable sports tournament in
o Natural Gas (weight: 6.88 %) India.
o Cement (weight: 5.37%) Linking retail loan rates with Repo Rate
o Fertilizer (weight: 2.63 %) • In a move that could led to faster transmission of
monetary policy rates, public sector banks have
COMMON SERVICES CENTERS (CSC) SCHEME
• Context: Common Service Centres (CSCs) , which stared linking their retail loan rates with Reserve Bank
come under the Ministry of Electronics and IT, of India’s repo rate.
plan to open one lakh charging stations for electric • This means if the Reserve Bank of India changes the
vehicles across the country in the next few years, as repo rate, the retail loan rates will change
the country plans to transition to such vehicles from automatically.
the current combustion engine-powered automobiles. • Four lenders — Bank of India, Syndicate Bank,
Analysis Allahabad Bank and Union Bank — have said they
• CSC e-Governance Services India is a Special have either linked the lending rate to repo rate or are
in the process of doing so.
Purpose Vehicle set up by MeitY to oversee
implementation of the CSC scheme to enable access Already analysed in previous issues
to information technology in rural areas. • Hong Kong Protests pg 14
• It is one of the mission mode projects under the • National Disaster response Force pg 9
• National green Tribunal pg 2
Digital India Programme.
• CSCs are the access points for delivery of essential • POSCO Act pg 1
public utility services, social welfare schemes, • Anti-lynching law pg 10
healthcare, financial, education and agriculture • RTi Amendment Act pg 10
services, apart from host of B2C services to citizens in • Kulbhushan Case and ICC pg 10
rural and remote areas of the country. • UAPA Act pg 12
• It is a pan-India network catering to regional,

geographic, linguistic and cultural diversity of the
country, thus enabling the Government’s mandate of
a socially, financially and digitally inclusive society. REPURPOSE USED COOKING OIL (RUCO)
• Context: State oil marketing companies to buy
• Under CSC 2.0 scheme, at least one CSC will be set
biodiesel made from cooking oil.
up in each of the 2.5 lakh GPs across the country by
Analysis
2019.
• In India, the same cooking oil is used for repeated
News in brief
frying which adversely affects the health due to
Nehru Trophy Boat Race
formation of Total Polar Compounds (TPCs) during
• Torrential rain and flood-like situation across Kerala
repeated frying.
has led to the postponement of the Nehru Trophy
• These polar compounds are associated with diseases
Boat Race and the inaugural race of the Champions
such as hypertension, atherosclerosis,
Boat League.
Alzheimer’s disease, liver diseases among others.
• The 67th edition of the race was scheduled to be held
• The National Policy on Biofuels, released by the
on Punnamada Lake.
Government of India in 2018, envisages production of
• This is the second year in a row that the annual
biofuel from UCO.
Nehru Trophy boat race is being postponed.
• In order to safeguard consumer health, the Food
• Last year, devastating floods led to the race being
Safety and Standards Authority of India (FSSAI) has
pushed back to November.
fixed a limit for Total Polar Compounds at 25 percent • The Act also aims to establish a single reference
beyond which the vegetable oil shall not be used. point for all matters relating to food safety and
• From 1st July, 2018 onwards, all Food Business standards.
Operators (FBOs) are required to monitor the quality • To this effect, the Act establishes an independent
of oil during frying by complying with the said statutory authority - the Food Safety and Standards
regulations. Authority of India under the Ministry of Health and
• Repurpose Used Cooking Oil (RUCO) is an Family Welfare.
ecosystem that will enable the collection and • Food Safety and Standards Authority of India and
conversion of UCO to biodiesel. State Food Safety Authorities shall enforce various
• A scheme in this direction has been launched in 100 provisions of the Act.
cities across the country under which used cooking oil • FSSAI also contributes to the development of
will be bought by the oil marketing companies for the international technical standards for food, sanitary and
production of biodiesel. phyto-sanitary standards.
• The Food Safety and Standards Authority of India’s World Biofuel Day
(FSSAI) has directed Food Safety Commissioners to • World Biofuel Day is observed every year on 10th of
ensure that Food Business Operators (FBOs), whose August.
consumption of edible oils for frying is more than 50 • This year the theme of the World Biofuel Day is
litres per day, stop reusing the oil more than three “Production of Biodiesel from Used Cooking Oil
times. (UCO)”.
• On this occasion, a sticker on RUCO • Bio-diesels contain natural oils and fats which are
viz., Repurpose Used Cooking Oil and a mobile app primarily made up of triglycerides.
to facilitate the collection of UCO shall also be • These triglycerides when reacted chemically with
released by FSSAI. lower alcohols in presence of a catalyst result in fatty
Total Polar Compounds acid esters.
• The determination of the percentage of Total Polar • These esters show striking similarity to petroleum
Compounds (% TPC) is one of the most reliable derived diesel and are called "Biodiesel".
methods for monitoring the quality changes in oils • As India is deficient in edible oils, non-edible oil may
during the frying process and it reflects the be material of choice for producing biodiesel.
degradation of the oil after repeated use. Examples are Jatropha curcas, Pongamia, Karanja,
• Since these polar compounds are not digestible, etc.
consumption can impact consumer health, posing a • The benefits of using biodiesel are as follows:
greater risk of heart disease in the long term. o It reduce vehicle emission which makes it eco-
Food Safety and Standards Authority of India (FSSAI) friendly.
• It has been established under the Food Safety and o It is made from renewable sources and can be
Standards Act, 2006 which consolidates various prepared locally.
acts and orders that have hitherto handled food o Increases engine performance because it has
related issues in various Ministries and Departments. higher cetane numbers as compared to petro
• It has been created for laying down science based diesel.
standards for articles of food. o It has excellent lubricity.
• Various Central Acts like Prevention of Food o Increased safety in storage and transport
Adulteration Act, 1954 etc. are repealed after the because the fuel is nontoxic and bio degradable
commencement of FSS Act, 2006. (Storage, high flash pt)
o Production of bio diesel in India will reduce o to provide necessary boost to the agriculture
dependence on foreign suppliers, thus helpful in sector; and
price stability. o to reduce the Under-recovery of Public Sector Oil
o Reduction of greenhouse gases. Marketing Companies (OMCs).
o additional income to farmers and • Ethanol blending first found mention in the Auto
o employment generation. fuel policy of 2003.
• Biofuel programme also compliments Government of • At present, EBP programme is being implemented in
India’s initiatives for Make in India, Swachh Bharat about 21 states and 4 UTs.
and increasing farmers income. • Oil Marketing Companies (OMCs) can sell ethanol
• Commonly used varieties of plants/trees for producing blended petrol with percentage of ethanol up to
biofuels in India are: Jatropha, Sugarbeet, Sorghum, 10% in as many States as possible.
Pongamia etc. • The National Policy on Biofuels, 2018, aims to
Why does is attracting the attention of biofuel increase the percentage of ethanol in petrol and
producers? diesel. Currently, it is at nearly 2% in petrol, while in
Karanja (Pongamia) diesel, biofuel is less than 0.1%. An indicative target
• There are several non edible oil yielding trees that can of 20% of ethanol in petrol and 5% of biodiesel in
be grown to produce biofuel. diesel is proposed by 2030.
• Karanja (Pongamia) is one of the most suitable trees. Ethanol
• It is widely grown in various parts of the country. • Ethanol is a colourless volatile flammable liquid which
Salient features of Pongamia is produced by the natural fermentation of sugars.
• It is a Nitrogen fixing tree and hence enriches the soil • Ethanol fuel is ethyl alcohol, the same type of
fertility alcohol found in alcoholic beverages, used as fuel.
• It is generally not grazed by animals. • Vehicles do not need any modifications to use
• It is tolerant to water logging, saline and alkaline soils, blended fuel, which typically is 10 percent ethanol and
• It can be planted on degraded, waste/fallow and 90 percent gasoline.
cultivable lands • Ethanol itself burns cleaner and burns more
• Pongamiaseeds contain 30-40% oil. completely than petrol it is blended into.
• It helps in controlling soil erosion and binding sand • In India, ethanol is mainly derived by sugarcane
dunes, because of its dense network of lateral roots. molasses, which is a by-product in the conversion of
• Its root, bark, leaves, sap, and flower have medicinal sugar cane juice to sugar by fermentation process.
properties. • In general, ethanol is produced from biomass mostly
• Dried leaves are used as an insect repellent in stored via a fermentation process using glucose which
grains. can be derived from sugars (sugar cane, sugar beet
• Pongamia seed oil as a biofuel has physical and molasses), starch (corn, wheat, grains) or
properties very similar to conventional diesel. cellulose (forest products) as raw materials. In this
Ethanol Blended Petrol Programme form, it is renewable.
• EBP programme was launched in January, 2003. • The creation of ethanol via fermentation separates the
• EBP Programme is being implemented by the base glucose molecules into both ethanol and carbon
Government of India: dioxide molecules.
o to promote the use of alternative and • Synthetic ethanol can also be produced from non-
environment friendly fuels; renewable sources like coal and gas.
o to reduce import dependency for energy
requirements;
• Since ethanol is produced from plants that harness • In general, vehicle fuel economy may decrease by
the power of the sun, ethanol is also considered as about 3% when using E10 (10% ethanol blended fuel)
renewable fuel. relative to gasoline that does not contain fuel ethanol
o Ethanol begins its life as carbon stored in as the energy content of ethanol is about 33% less
biomass; this is converted to ethanol, which is than pure gasoline.
burnt as fuel that emits water and carbon dioxide. National Policy on Biofuels
Photosynthesis converts the carbon back into • The Policy categorises biofuels as "Basic Biofuels"
biomass, to be used in the next cycle of ethanol and "Advanced Biofuels.“
production. • Basic Biofuels - First Generation (1G) bioethanol &
• As the ethanol molecule contains oxygen, it allows biodiesel.
the engine to more completely combust the fuel, • Advanced Biofuels - Second Generation (2G) ethanol,
resulting in fewer emissions and thereby reducing the Municipal Solid Waste (MSW) to drop-in fuels, Third
occurrence of environmental pollution. Generation (3G) biofuels, bio-CNG, Compressed Bio-
• Ethanol also improves the engine's efficiency by Gas etc.
using less fuel. • The policy expands the scope of raw material for
• An oxygenated fuel that contains 35% oxygen, ethanol production by allowing use of:
ethanol reduces nitrogen oxide emissions from o sugarcane juice,
combustion. It also helps reduce carbon monoxide o sugar containing materials like sugar beet, sweet
emissions, particulate matter and sulphur-di-oxide. sorghum,
Problems in the promotion of ethanol: o starch containing materials like corn, cassava,
• There are reportedly significant transaction barriers o damaged food grains like wheat, broken rice,
which impede smooth supplies of ethanol for blending. rotten potatoes that are unfit for human
• In several States, State not only imposes levy on consumption.
molasses but also regulates the movement of non • The policy allows use of surplus food grains for
levy molasses. production of ethanol for blending with petrol with the
• Inter-state movement of ethanol requires No- approval of National Biofuel Coordination
Objection-Certificates (NOCs) from the State Excise Committee to be chaired by the Prime Minister.
Authorities along with permits from dispatching and • The policy promotes Advanced Biofuels by:
receiving States. o providing a viability gap funding scheme for
• Most States impose “Export/Import” duties on ethanol second generation ethanol Bio refineries of
leaving and entering their boundaries. Rs.5000 crore in 6 years;
• Hence, in order to improve the availability of ethanol, o additional tax incentives;
the Union Government has fixed ethanol price o higher purchase price as compared to first
based on distance, which has encouraged movement generation biofuels.
of ethanol to longer distances, including States • The Policy encourages setting up of supply chain
lacking distilleries. mechanisms for biodiesel production from non-edible
• Further, ethanol produced from other non-food oilseeds, Used Cooking Oil, and short gestation
feedstocks besides molasses, like cellulosic and crops.
ligno-cellulosic materials including petrochemical • Municipal solid waste has also been addressed with
route, has also been allowed to be procured subject policy, with the option of converting it into drop-in
to meeting the relevant Bureau of Indian Standards fuels.
(BIS) specifications. Drop-in fuels:
Impact on vehicle fuel economy
• A fuel that is completely interchangeable and removed from the air earlier as growing plants engage
compatible with a particular conventional (typically in photosynthesis. Such a material is said to be
petroleum-derived) fuel. “carbon neutral.”
• A perfect drop-in fuel does not require adaptation of Disadvantages
the fuel distribution network or the vehicle or • Energy output: Biofuels have a lower energy
equipment engine fuel systems, and can be used “as output than traditional fuels and therefore require
is” in vehicles and engines that currently operate on greater quantities to be consumed in order to produce
that particular fuel. the same energy level.
• Some alternative fuels may become “drop-in” only Methanol
after blending with conventional fuel to a certain • Methanol -- or methyl alcohol -- is a dangerous
prescribed proportion. alcohol that can be fatal if swallowed; it is most
Different Generations of Biofuels: commonly used in paint remover.
• Biofuel is any fuel that is derived from biomass—that • Methanol gets made from coal and costs only Rs 22
is, plant or algae or animal waste. per litre as against the prevailing price of about Rs 80
• Since such feedstock material can be replenished per litre for petrol.
readily, biofuel is considered to be a source ❖ In cases of ‘hooch’ tragedy, toxicity often comes from
of renewable energy, unlike fossil fuels such drinking methanol, which results in blindness, tissue
as petroleum, coal, and natural gas. damage or death.
• First-generation biofuel: They are produced from ❖ The Government has decided that India's 1st 2G
food crops. ethanol bio-refinery would be set up at Bhatinda.
• Second-generation biofuel: They are derived from India’s first methanol cooking fuel debuts in Assam
low-value biomass that possesses a • Assam Petrochemicals Limited (APL), India’s first
high cellulose content, including wood chips, crop public sector producer of methanol and formalin from
residues, and municipal waste. natural gas as feedstock, has started a pilot project
• Third-generation biofuel: They are obtained by the promoted by NITI Aayog.
use of algae and cyanobacteria. • Under this project, coal, petroleum and natural gas
o Some estimates state that algae and will be converted to pollution-free methanol to be used
cyanobacteria could yield between 10 and 100 as fuel for cooking and transportation so that LPG
times more fuel per unit area than second- (liquefied petroleum gas) consumption is reduced.
generation biofuels. • About 80% of LPG consumed in India is imported.
• Fourth-generation biofuel: Fourth-generation • But India is the first country where the focus is on
technology combines genetically optimized feedstocks, replacing LPG.
which are designed to capture large amounts of • Methanol can be a major market in India, besides
carbon, with genomically synthesized microbes, which helping us reduce oil imports by 20%
are made to efficiently make fuels. o In terms of heat value, a 14 kg LPG cylinder is
o Key to the process is the capture and equivalent to about 20 kg of methanol but
sequestration of CO2, a process that renders methanol works out 30% cheaper.
fourth-generation biofuels a carbon negative • Assam Petrochemicals Limited (APL) is also planning
source of fuel. to produce methanol from biomass, municipal waste
• Plant-based biofuels in principle make little net and flare gas from refineries and oil wells.
contribution to global warming and climate change; • Methanol is not only a clean fuel, it is light and can be
the carbon dioxide (a major greenhouse gas) that easily carried to hilly areas.
enters the air during combustion will have been News in brief
World Breastfeeding Week 1st – 7th August Currency Manipulator
Breastfeeding is important because: • The United States designated China as a “currency
• It promotes better health for mothers and children manipulator”.
alike; • The move came immediately after the People’s Bank
• It prevents infections like diarrhoea and acute of China (PBoC), the Chinese central bank, let the
respiratory infections in early infancy and thus reduce Yuan weaken past the psychologically significant
infant mortality; CNY7 (CNY or the Yuan is the basic unit of the
• It decreases the risk of mothers developing breast renminbi, China’s official currency) to the dollar mark.
cancer, ovarian cancer, type 2 diabetes, and heart What does the move imply for China?
disease; and • The tag of a “currency manipulator” per se does not
• It protects infants from obesity-related illnesses, mean any penal action against China. But it could be
diabetes and increases the IQ. used by the United States as an excuse to justify
The correct norms of infant and young child feeding other retaliatory sanctions against the country. The
are: U.S. could also drag China to the International
• Initiation of Breastfeeding within an hour of birth; Monetary Fund (IMF) although the IMF does not have
• Exclusive breastfeeding for first six months of life i.e. the teeth to punish China.
only breast Milk ‘NO’ other milk, food, drink or water; World's Highest Lake Discovered
• Appropriate and adequate complementary feeding • A newly-discovered lake in Nepal is likely to set a new
from six months of age while continuing record of being the world’s highest lake replacing
breastfeeding; Tilicho, which is situated at an altitude of 4,919 metres
• Continued breastfeeding up to the age of two years or in the Himalayan nation and currently holding the title.
beyond. • The Kajin Sara lake in Manang district was
Draft National Logistics Policy discovered about a few months ago by a team of
• The draft policy is prepared by the Department of mountaineers.
Logistics, Ministry of Commerce and Industry. Already analysed in previous issues
Objectives: • Hong Kong Protests pg 12
• Creating a single point of reference for all logistics • National Disaster response Force pg 9
and trade facilitation matters in the country. • Uighurs pg 12
• Driving logistics cost as a % of GDP down from Note: Bills will be covered once they will be passed by
estimated current levels of 13-14% to 10% in line with both the Houses.
best-in-class global standards. • Companies (Amendment) Bill, 2019
• Optimizing the current modal mix(road-60%,rail- • Inter-State river water dispute bill, 2019 pg 12
31%,water-9%) in line with international • POSCO Amendment Bill
benchmarks(25-30% share of road, 50-55% share of • Dam Safety Bill pg 12
railways, 20-25% share of waterways). • Surrogacy Regulation Bill
• Creating a National Logistics e-marketplace as a one • Transgender Persons Bill
stop marketplace.
• Doubling employment in the logistics sector by
generating additional 10-15 million jobs. PROTECTION OF CHILDREN FROM SEXUAL
• Improve India’s ranking in the Logistics Performance OFFENCES (POCSO) AMENDMENT ACT, 2019
Index to between 25 to 30. • Context: Protection of Children from Sexual Offences
• Reducing losses due to agri-wastage to less than 5% (POCSO) Act, 2012 has been amended by the
through effective agri-logistics. Parliament.
Analysis o The Bill justifies this by referring to the judgments
Protection of Children from Sexual Offences of the Supreme Court in Machhi Singh (1983)
(POCSO) Act, 2012 and Devender Pal Singh (2002) in which the
• The Act deals with sexual offences against persons court has held that the death penalty can be
below 18 years of age, who are deemed as children. awarded only in rarest of rare cases.
• The Act for the first time, defines “penetrative sexual • It makes offences against children gender neutral.
assault”, “sexual assault” and “sexual harassment”. • The Act defines child pornography, making it
• Speedy trial of offences through appointment of punishable.
Special Public Prosecutors and designated Special • Under witness protection scheme, all measures such
Courts. as doing threat assessment of the victim and witness
• The Act provides for stringent punishments which and if required even changing their identity and others,
have been graded as per the gravity of offence. were taken to ensure their safety.
• The Act deems a sexual assault to be “aggravated” • If juvenile is involved in sexual offence against the
under certain circumstances, such as when the children, that case will come under Juvenile Justice
abused child is mentally ill or when the abuse is Act and the death penalty could be given only if he is
committed by a person in a position of trust or above 16 years of age and juvenile justice board finds
authority vis-a-vis the child, like a family member, that he has adult mind.
police officer, teacher, or doctor. • The Act specifically defines what ‘child pornography’
• The Act provides for a dedicated ‘Online Complaint is; ‘using a child for pornographic purposes’ and for
System (e-baalnidaan)’ to ensure timely/speedy ‘possessing or storing pornography involving a child’
redressal of complaints of various violations and is punishable. It has also widened the ambit of
deprivation of child rights. ‘Aggravated sexual assault’.
• The Act also provides for mandatory reporting of
CONTAMINATION OF FISH WITH FORMALIN
sexual offences. • Context: No formalin found in fish imported to Goa,
• The police are also required to bring the matter to the said the Minister.
attention of the Child Welfare Committee (CWC) Analysis
within 24 hours of receiving the report. • Formaldehyde is a chemical commonly used in
• It provides for special courts that conduct the trial in- industry for the manufacturing of plastic resins that
camera and without revealing the identity of the can be used in wood, paper and textile industry.
child. • Formalin, which is a solution of about 37%
• The Act stipulates that a case of child sexual abuse formaldehyde, serves as disinfectant and preservative
must be disposed of within one year from the date for household products.
the offence is reported. • Formaldehyde is produced from both natural and
• The Act provides for the Special Court to determine manmade sources.
the amount of compensation to be paid to a child • It exists at low levels in most living organisms as a
who has been sexually abused, so that this money metabolic intermediate.
can then be used for the child’s medical treatment and
• The main health concern of formaldehyde is its
rehabilitation. cancer causing ability.
Recent Amendments • Unscrupulous fish wholesalers are using formalin, a
• The amended Act provides death penalty for toxic and carcinogenic chemical commonly used to
aggravated sexual assault on children and greater preserve dead bodies in mortuaries, to prevent fish
punishments for other crimes against minors. from deteriorating during transportation.
• Formalin treatment increases the shelf life of the fish.
How to detect contaminated fish?
• Contaminated fish will be stiff, have rubbery meat, • Apart from discoveries in the Singhbhum Thrust Belt,
hard scales, red gills and clear eyes. several uranium occurrences have also been found in
• It will also not have the typical smell. Cuddapah basin of Andhra Pradesh.
• However, if the fish feels tender it may not have been • In the Mahadek basin of Meghalaya in NorthEastern
formalin-treated. part of the country, sandstone type uranium deposits
provide near-surface flat ore bodies amenable to
URANIUM DEPOSITS OF INDIA
• Context: With the slogan of ‘Stop Mining in commercial operations.
Nallamala,’ people protested in Andhra Pradesh. • Other areas in Rajsthan, Karnataka and Chattishgarh
• They said that the uranium mining in the forests would hold promise for developing into some major deposits.
inevitably damage the delicate ecology of the region, • The Tummulpalli deposit in Cuddapah, Andhra
and claimed that Chenchu tribes of the region would Pradesh is considered to be one of the largest
be immediately affected. deposits of uranium in the world.

• India currently imports uranium from Kazakhstan,
Analysis
Uranium deposits of India Uzbekistan and Canada and plans to also purchase
• Jaduguda in Singhbhum Thrust Belt (in the state the fuel from Australia.
of Jharkhand) is the first uranium deposit to be Chenchus

• The Chenchus are the Particularly Vulnerable Tribal
discovered in the country in 1951.
• Jaduguda is the first mine in the country to produce Group (PVTG) in the Indian states of Andhra Pradesh,
uranium ore in a commercial scale. Telangana, Karnataka and Odisha.
o Bhatin, Narwapahar and Turamdih are well • Many Chenchus live in the dense Nallamala forest of
known uranium mines of the country. Andhra Pradesh and help the National Tiger
Conservation Authority (NTCA) to count and conserve • However, particle-beam weapons are not true DEWs
the tigers. because they use micro-projectiles rather than pure
• They are an aboriginal tribe whose traditional way of energy.
life has been based on hunting and gathering. Doctrine of Acquiescence
• In general, the Chenchu relationship to non-tribal • In law, acquiescence occurs when a person knowingly
people has been largely symbiotic. stands by without raising any objection to the
• The Chenchus are referred to as one of the Primitive infringement of his or her rights, while someone else
Tribal Groups that are still dependent on forests and unknowingly and without malice aforethought acts in a
do not cultivate land but hunt for a living. manner inconsistent with their rights.
Particularly Vulnerable Tribal Groups (PVTGs) • As a result of acquiescence, the person whose rights
• While some tribal communities have adopted a are infringed may lose the ability to make a legal claim
mainstream way of life, at the other end of the against the infringer, or may be unable to obtain an
spectrum, there are certain Scheduled Tribes, 75 in injunction against continued infringement.
number, known as Particularly Vulnerable Tribal • The doctrine infers a form of "permission" that results
Groups (PVTGs), who are characterised by: from silence or passiveness over an extended period
o pre-agriculture level of technology of time.
o stagnant or declining population Report
o extremely low literacy • ‘Composite Water Management Index: A tool for
o subsistence level of economy water management’ is a 2018 report of NITI Aayog.
• PVTGs are more vulnerable among the tribal groups. Already analysed in previous issues
• 75 tribal groups have been categorized by Ministry • Hong Kong Protests pg 14
of Home Affairs as Particularly Vulnerable Tribal • National Disaster response Force pg 9
Groups (PVTGs). • Yemen Crisis pg 14
• PVTGs reside in 18 States and UT of A&N Islands.
• Among 75 listed PVTG’s the highest number are
found in Odisha (13), followed by Andhra Pradesh
(12).
PRADHAN MANTRI AWAS YOJANA-HOUSING
• The Ministry of Tribal Affairs implements the
FOR ALL
Scheme of “Development of Particularly Vulnerable
• Context: Routinely appears in news.
Tribal Groups (PVTGs)” exclusively for them.
Analysis
News in brief
Pradhan Mantri Awas Yojana-Housing for All (Urban)
Climate Change
• It has been launched by the Ministry of Housing and
• Climate change is undermining food security in the
Urban Poverty Alleviation (MoHUPA).
following ways: pg 7
• It aims to provide central assistance to Urban Local
o It is affecting crop yields;
Bodies (ULBs) and other implementing agencies
o It is driving lower livestock productivity;
through States/UTs during 2015-2022 for:
o It is increasing the risk of agricultural pests and
o a) In-situ slum rehabilitation of Slum Dwellers
diseases in some regions.
with participation of private developers using land
Directed Energy Weapons
as a resource;
• Directed Energy Weapons (DEWs) are devices that
o b) Promotion of affordable housing for weaker
emit highly focused energy such as laser, microwave,
section through credit linked subsidy;
electromagnetic radiation, radio waves, sound or
particle beams.
o c) Affordable housing in partnership with Public & What is Centrally Sponsored Scheme (CSS)?
Private sectors and o financial participation by both the centre and
o d) Subsidy for beneficiary-led individual house states.
construction or enhancement. o central government helps states to run its Plans
Beneficiaries financially.
• Beneficiaries include Economically weaker section o a stipulated percentage of the funding is provided
(EWS), low-income groups (LIGs) and Middle Income by the States in terms of percentage contribution.
Groups (MIGs). o direct transfer of money to the state governments.
• The annual income cap is up to Rs 3 lakh for EWS, o implementation is made by State/UT
Rs 3-6 lakh for LIG and Rs 6 + -18 lakhs for MIG. Governments.
• EWS category of beneficiaries is eligible for o created on areas that are covered under the
assistance in all four verticals of the Missions whereas State List.
LIG and MIG categories are eligible under only Credit • All statutory towns as per Census 2011 and towns
linked subsidy scheme (CLSS) component of the notified subsequently would be eligible for coverage
Mission. under the Mission.
• For identification as a EWS or LIG beneficiary under • Houses constructed under the mission would be
the scheme, an individual loan applicant will submit allotted in the name of the female head of the
self-certificate/ affidavit as proof of income. households or in the joint name of the male head of
• A beneficiary family will comprise husband, wife, the household and his wife.
unmarried sons and/or unmarried daughters. • In the spirit of cooperative federalism,
• The beneficiary family should not own a pucca house o mission provides flexibility to the States for
either in his/her name or in the name of any member choosing the best options amongst four verticals
of his/her family in any part of India to be eligible to of mission to meet the demand of housing in their
receive central assistance under the mission. states.
• States/UTs, at their discretion, may decide a cut-off o process of project formulation and approval in
date on which beneficiaries need to be resident of that accordance with the mission Guidelines has
urban area for being eligible to take benefits under the been left to the States so that projects can be
scheme. formulated, approved and implemented faster.
• Credit linked subsidy component is being Other Imporant Features of Pradhan Mantri Awas
implemented as a Central Sector Scheme while other Yojana (U)
three components as Centrally Sponsored Scheme • Under PMAY, subsidy interest rate is provided at
(CSS). 6.5% on housing loan for the term of 15 years to all
• Also, under the Credit Linked Subsidy Scheme, the beneficiaries.
beneficiaries under PMAY are eligible for interest • Under the PMAY scheme, differently abled and senior
subsidy if they avail a loan to purchase or construct a citizens will be given preference in allocation of
house. ground floors.
What is Central Sector Scheme? • Sustainable and eco-friendly technologies would be
o 100% funding by the Central government. used for construction.
o implemented by the Central Government • The scheme covers entire urban areas in the country
machinery. with the first priority given to 500 Class I cities. This
o mainly formulated on subjects from the Union will be done in 3 phases.
List.
o financial resources are not shifted to states.
• The credit linked subsidy aspect of the PMAY scheme • The cost of unit assistance is to be shared between
gets implemented in India in all statutory towns from Central and State Government in the ratio 60:40 in
the initial stages itself. plain areas and 90:10 for North Eastern and the
The scheme will be implemented in three phases as Himalayan States.
follows: • There is also a provision of Bank loan upto Rs.
o Phase-I (April 2015 - March 2017) to cover 100 70,000/-, if the beneficiary so desires.
Cities to be selected from States/UTs as per their • The minimum size of the house has been increased to
willingness; 25 sq.mt (from 20sq.mt) with a hygienic cooking
o Phase - II (April 2017 - March 2019) to cover space.
additional 200 Cities. • The beneficiary is entitled to 90.95 person day of
o Phase-III (April 2019 - March 2022) to cover all unskilled labour from MGNREGS.
other remaining Cities. • Towards better quality of construction, setting up of a
• A Technology Sub-mission under the Mission would Nation Technical Support Agency (NTSA) at the
be set up to facilitate: national level is envisaged.
o adoption of modern, innovative and green • The houses are disaster resilient and are suitable to
technologies and building material for faster and the local geo-climatic conditions.
quality construction of houses. • Homes will have cooking area, toilet, LPG connection,
o preparation and adoption of layout designs and electricity connection and water supply through
building plans suitable for various geo-climatic convergence with other schemes, and beneficiaries
zones. can plan their homes as per their need.
• All houses built or expanded under the Mission should • There are negligible inclusion errors of ineligible
essentially have toilet facility. beneficiaries due to three stage selection filters-
• The houses under the mission should be designed o (I) use of SECC 2011 data,
and constructed to meet the requirements of structural o (II) validation by Gram Sabha, and
safety against earthquake, flood, cyclone, landslides o (III) Geo-tagging with photos of existing house of
etc. conforming to the National Building Code and the beneficiary using space technology.
other relevant Bureau of Indian Standards (BIS) • PMAY-G is a major step forward in bringing together
codes. Skill India, Digital India, Make In India, IT/DBT
Pradhan Mantri Awaas Yojana (Gramin) Aadhaar platform and Pradhan Mantri Jan Dhan
• Also called “Housing for All” scheme. Yojana (PMJDY).
• Launched in November, 2016 by Ministry of Rural • The programme provides for skilling 5 lakh Rural
Development. Masons by 2019.
• It aims to to provide an environmentally safe and • The programme uses ICT and space technology to
secure pucca house, with basic amenities, to all further confirm correct selection of beneficiaries and
houseless householders and those households living progress of work.
in kutcha and dilapidated house, in rural areas by • The entire payments are through IT/DBT mode with
2022. Aadhaar linked Bank accounts, to ensure complete
• The immediate objective is to cover 1.00 crore transparency and accountability.
household living in kutcha house/dilapidated house in • The programme implementation is to be monitored
three years from 2016-17 to 2018- 19. not only electronically, but also through community
• The scheme provides a minimum governmental participation (Social Audit), Member of Parliament
support of nearly Rs. 1.5 lakh to Rs. 1.6 lakh per unit (DISHA Committee), Central and State Government
household. officials, National Level Monitors etc.
AYUSHMAN BHARAT YOJANA • There will be no cap on family size and age in the
• Context: If all goes as planned, cancer treatments will scheme.
soon be covered under the Ayushman Bharat Yojana • The benefit cover will also include pre and post-
- Pradhan Mantri Jan Arogya Yojana (PM-JAY), which hospitalisation expenses.
is the Central Government’s health insurance scheme. • All pre-existing conditions will be covered from day
• Cancer is the second-most common disease in India. one of the policy.
• Lung cancer is the most common type of cancer in • A defined transport allowance per hospitalization will
India, followed by breast cancer and oral cancers. also be paid to the beneficiary.
Analysis • Benefits of the scheme are portable across the
Ayushman Bharat – National Health Protection country and a beneficiary covered under the scheme
Mission(AB-NHPM) will be allowed to take cashless benefits from any
• Ayushman Bharat - Pradhan Mantri Jan Arogya public/private empanelled hospitals across the
Yojana (AB-PMJAY) is a Centrally Sponsored country.
Scheme having central sector component under • It will be an entitlement based scheme with
Ayushman Bharat Mission anchored in the Ministry of entitlement decided on the basis of deprivation criteria
Health and Family Welfare (MoHFW). in the SECC database.
• It aims to address health holistically, in primary, • State Governments (at their own cost) will be allowed
secondary and tertiary care systems. to expand AB-NHPM both horizontally and vertically.
• It covers both prevention and health promotion. • It is proposed to set up Ayushman Bharat National
• It is an umbrella of two major health initiatives, namely Health Protection Mission Council (AB-NHPMC) at
Health and wellness Centres and apex level Chaired by Union Health and Family
National Health Protection Scheme. Welfare Minister.
Health and Wellness Centre • The Scheme will cover almost all secondary and
• The National Health Policy, 2017 says the Health and many tertiary hospitalizations (except a negative list).
Wellness Centres are the foundation of India’s health • It is proposed to have an Ayushman Bharat National
system. Health Protection Mission Governing Board (AB-
• Under the scheme, around 1,50,000 sub-centres and NHPMGB) which will be jointly chaired by Secretary
primary health centres will be upgraded into wellness (HFW) and Member (Health), NITI Aayog.
clinics that will provide 12 sets of services. Do you know?
• These centres will also provide free essential drugs • The health workforce in India comprises broadly eight
and diagnostic services. categories, namely: doctors (allopathic, alternative
National Health Protection Scheme medicine); nursing and midwifery professionals; public
• It aims to cover over 10 crore poor and vulnerable health professionals (medical, non-medical);
families (approximately 50 crore beneficiaries). pharmacists; dentists; paramedical workers (allied
• It will provide coverage upto 5 lakh rupees per family health professionals); grass-root workers (frontline
per year for secondary and tertiary care workers); and support staff.
hospitalization. • India has the highest number of wasted (a low
• The beneficiaries will be selected on the basis of weight-for-height ratio) children in the world.
Socio economic Caste Census (SECC) database. • India has the second highest number of obese
• AB-NHPM will subsume the on-going centrally children in the world after China.
sponsored schemes -Rashtriya Swasthya Bima • Rising obesity is posing a high risk of chronic
Yojana (RSBY) and the Senior Citizen Health diseases such as cardiovascular diseases, diabetes
Insurance Scheme (SCHIS).
and some cancers (clubbed together as non- Colour Codes
communicable diseases, or NCDs). • There are four types of colour codes signifying the
• Indians have higher levels of body fat and lower level of caution issued by Indian Meteorological
levels of lean muscle when compared to many other Department (IMD):
populations. o green (which means no action),
o Therefore, the risk of cardiovascular diseases o yellow (situation to be watched),
and diabetes operates even below global o amber (government agencies be prepared for
thresholds for defining overweight and obesity. severe weather) and
News in brief o red (action needed by the agencies).
Udanti Wildlife Sanctuary Already analysed in previous issues
• Five female wild buffaloes will be translocated from • Hong Kong Protests pg 1, 14
Assam to the Udanti Wildlife Sanctuary in Raipur • National Disaster response Force pg 8
district, to help revive the waning population of • Yemen Crisis pg 14
Chhattisgarh’s State animal and expand its territory • Landslides pg 1
across States. • National Green Tribunal pg 2
• The estimated population of the wild buffaloes • Polavaram and national Project pg 6
(Bubalus arnee) in the Northeast is around 3,000- • All about lightning pg 6
4,000, the largest in the country and accounting for • Yemen crisis pg 14
92% of the world population. • Afghan Peace Talks pg 14
• It is listed under Schedule 1 of the Wild Life
(Protection) Act, 1972, and classified as endangered
in the IUCN Red List of Threatened Species. THE HINDU ANALYSIS 14th AUGUST 2019
Krishna Wildlife Sanctuary DELIMITATION
• The Krishna Wildlife Sanctuary (KWS) has recently • Context: After the reorganisation of the State of
been expanded to compensate for the land being Jammu and Kashmir, the delimitation exercise for the
diverted for setting up Missile Test Launch Facility by State will start soon.
the Defence Research and Development Organisation • According to the Jammu and Kashmir Reorganisation
(DRDO) in Nagayalanka mandal in Krishna District. Act, 2019, the number of seats in the Legislative
Motor Vehicles (Amendment) Act 2019 Assembly of the UT of J&K would be increased from
• In a significant move, protective headgear of 107 to 114.
prescribed standards has been made mandatory for • The Act also specifies that delimitation will be based
children above four years while travelling on a on the 2011 census till 2026.
motorcycle. Analysis
• The safety measures for the children travelling on Delimitation
motorcycles have been included in the Motor Vehicles • Delimitation literally means the act or process of fixing
(Amendment) Act 2019 that is passed by Parliament. limits or boundaries of territorial constituencies in a
• Only Sikhs wearing turban have been exempted from country or a province having a legislative body.
the provision of Section 129 that makes helmets • The job of delimitation is assigned to a high power
mandatory for all riders of motorcycles above four body. Such a body is known as Delimitation
years of age. Commission or a Boundary Commission.
• Note: Motor Vehicles (Amendment) Act 2019 has • In India, such Delimitation Commissions have been
been already been discussed with necessary details constituted 4 times – in 1952, in 1963, in 1973, and in
already. 2002.
• The Delimitation Commission in India is a high power without altering the number of seats in the Legislative
body whose orders have the force of law and cannot Assemblies.
be called in question before any court.
SWACHH SURVEKSHAN 2020
• These orders come into force on a date to be • Context: The Swachh Survekshan 2020 (SS 2020),
specified by the President of India in this behalf. the fifth edition of the annual cleanliness survey
• The copies of its orders are laid before the House of conducted by the Ministry of Housing and Urban
the People and the State Legislative Assembly Affairs (MoHUA), has been launched.
concerned, but no modifications are permissible Analysis
therein by them. • Moreover, in line with the focus on continuity and
Procedure sustainability, a major focus of SS 2020 indicators,
• After every census, a readjustment is to be made in both for the quarterly and annual assessments - has
o allocation of seats in the Lok Sabha to the states, been on complete faecal sludge management and
o division of each state into territorial waste water treatment, in line with the
constituencies, and
Government’s promise made in its election
o total number of seats in the assembly of each manifesto.
state.
• Parliament, in case of states also, is empowered to

determine the authority and the manner in which it is
to be made.
• The 87th Amendment Act of 2003 froze the allocation
of seats in the Lok Sabha to the states and total
number of seats in the assembly of each state at the
1971 level till the year 2026.
• However, the government can undertake
readjustment and rationalisation of territorial
constituencies in the states on the basis of 2001
census.
• But, this can be done without altering the number of
seats allotted to each state in the Lok Sabha and also
• Reiterating its commitment to the cause, the Ministry untreated faecal sludge/septage and sewage in drains,
also launched the Water PLUS Protocol. water bodies or open areas.”
• Moving beyond ODF, ODF+ and ODF++, the Water

YEMEN CRISIS
PLUS protocol aims to provide a guideline for cities • Context: Last week, the Southern Transitional
and towns to ensure that no untreated wastewater is Council (STC), a militia group that was fighting the
released into the environment thereby enabling Houthis as part of the Saudi-led coalition, turned
sustainability of the sanitation value chain. against their masters and captured the presidential
• This year, the citizen-centric focus has been palace in Aden as well as the city’s main port.
enhanced substantially through verification of the • In return, Saudi jets targeted STC fighters before a
progress made by cities on Swachhata through direct tenuous ceasefire set in. It now looks like a three-way
responses from citizens. conflict.
ODF (Open Defecation Free), ODF+, ODF++ • The Shia Houthis, who the Saudis claim are backed
• A city/ward is notified as ODF city/ward if, at any point by Iran, are controlling much of the country’s north
of the day, not a single person is found defecating in including Sana’a.
the open. • Yemen’s internationally-backed government of
• A city, ward or work circle could be declared ODF+ if, Abdrabbuh Mansur Hadi, the Saudi ally, is controlling
“at any point of the day, not a single person is found
the south, though Mr. Hadi is running the purported
defecating and/or urinating in the open, and all administration from Saudi Arabia.
community and public toilets are functional and well- • The STC wants the south to be an independent
maintained.” entity, like it was till the Yemeni unification in 1990.
• The ODF++ protocol adds the condition that “faecal
Analysis
sludge/septage and sewage is safely managed and
treated, with no discharging and/or dumping of
• Island of Socotra – a UNESCO world Heritage Site
where UAE, coalition partner of Saudi Arabia had
deployed its security forces.
• Operation Golden Victory
o A large-scale ground operation to liberate
Yemen’s Hodeidah city and its main port west of
the country.
o It has been launched by Yemen forces supported
by the Arab coalition led by Saudi Arabia.
• Operation Rahat:
o It was launched by India to evacuate its citizens
• Yemen crisis: Who is fighting whom? from Yemen in 2015 after an Arab coalition led
o Yemen, one of the Arab world's poorest by Saudi Arabia and UAE intervened in Yemen.
countries, has been devastated by a civil war. • India has also teamed up with the United Arab
• How did the war start? Emirates in providing major humanitarian and post-
o Failed political transition following an Arab Spring traumatic medical support to the soldiers of Yemen
uprising that forced its longtime authoritarian who were injured in the ongoing war against the
president, Ali Abdullah Saleh, to hand over rebels of that country.
power to his deputy Abdrabbuh Mansour Hadi, in o So far, India has treated victims from Iraq and
2011. Syria on a bilateral basis.
• President Hadi struggled to deal with a variety of o However this is the first time that such an
problems, including operation is being conducted through support
o attacks by al-Qaeda, from a third country – the UAE.
o a separatist movement in the south, Forward defence doctrine
o the continuing loyalty of many military officers to • Iran has adopted a ‘forward defence’ doctrine which
Mr Saleh, as well as involves empowering militias and proxies in other
o corruption, unemployment and food insecurity. countries, such as the Hezbollah in Lebanon,
• The Houthi movement (by Yemen's Zaidi Shia mobilisation units in Iraq and Syria, and the Houthis in
Muslim minority) took advantage of the new Yemen.
president's weakness by taking control of their Yemen
northern heartland of Saada province and • Yemen borders both Saudi Arabia and Oman.
neighbouring areas and later forcing Mr Hadi to flee • Yemen borders both Red Sea and Gulf of Aden.
abroad.
• Disillusioned with the transition, many ordinary
WHOLE-SALE PRICE INDEX (WPI) VS
CONSUMER PRICE INDEX (CPI)
Yemenis - including Sunnis - supported the Houthis.
• Context: A routine monthly news.
• Alarmed by the rise of Houthis - believed to be backed
Analysis
militarily by regional Shia power Iran, Saudi Arabia
• Inflation is the sustained increase in the prices of
and other mostly Sunni Arab states (UAE, Bahrain,
goods and services over time. These are the two
Kuwait, Qatar, Jordan, Sudan, Egypt) began an air
primary measures of inflation - Whole-sale Price
campaign aimed at restoring Mr Hadi's government.
Index and Consumer Price Index.
• The coalition received logistical and intelligence
Whole-sale Price Index
support from the US, UK and France.
• WPI index reflects average price changes of goods
that are bought and sold in the wholesale market.
• WPI in India is published by the Office of Economic helps in timely intervention by the Government to
Adviser, Department of Industrial Policy and check inflation in particular, in essential commodities,
Promotion, Ministry of Commerce and Industry. before the price increase spill over to retail prices.
• Further, the data for WPI is monitored and updated on • WPI is used as deflator for many sectors of the
a monthly basis taking into account all the items that economy including for estimating GDP by Central
form the index. Statistical Organisation (CSO).
• The various commodities taken into consideration for • WPI is also used for indexation by users in business
computing the WPI can be categorized into primary contracts.
article, fuel and power, and manufactured goods • Global investors also track WPI as one of the key
with corresponding weightages as 22.62%, 13.15% macro indicators for their investment decisions.
and 64.23% respectively. Consumer Price Index (CPI)
o Primary articles included for the computation of • Two Ministries – Ministry of Statistics and Programme
WPI include food articles, non-food articles and Implementation (MOSPI) and Ministry of Labour and
minerals. Employment (MOLE) are engaged in the construction
• An important point to take note of is, the whole sale of different CPIs for different groups/sectors.
price index (WPI) does not includes the cost of • CPI inflation is also called as 'retail inflation' as
services (CPI includes certain services too). the prices are quoted from retailers.
• Further, as WPI accounts for changes in general price • CPI is based on retail prices and this index is used to
level of goods at wholesale level, it fails to calculate the Dearness Allowance (DA) for
communicate actual burden borne by the end government employees.
consumer. • Table : Different Price Indices in India
• The base year for the WPI index has been revised for • Index • Agency • Base Year
the seventh time from the earlier 2004-2005 to 2011- • Office of Economic
12 to better capture changes in the economy. Affairs, Ministry of
• The measure of wholesale price gains is the key • WPI • 2011-12
Commerce and
deflator in computing the Index of Industrial Industries
Production and is also used to deflate Gross
• CPI All
Domestic Product at current prices.
India, • CSO, Ministry of
• The index basket of the present 2011-12 series has a
CPI - Statistics and
total of 697 items including 117 items for Primary • 2012
Urban Programme
Articles, 16 items for Fuel & Power and 564 items for
and Implementation
Manufactured Products.)
Rural
o The prices tracked are ex- factory price for
• CPI-AL • 1986-87
manufactured products, mandi price for
• CPI-
agricultural commodities and ex-mines prices for • Labour Bureau, Ministry • 1986-87
RL
minerals. of Labour and
o Weights given to each commodity covered in the • 2001
• CPI-IW Employment
WPI basket is based on the value of production
adjusted for net imports.
o WPI basket does not cover services. Does RBI use WPI or CPI Inflation to manage
The main uses of WPI are the following: monetary policy?
• It provides estimates of inflation at the wholesale • While earlier the Reserve Bank of India used WPI
transaction level for the economy as a whole. This inflation to manage monetary policy expectations, it is
now the CPI inflation which is largely taken into • The Committee has made far reaching
account. recommendations. The main recommendations
Do you know? include:
• Headline inflation is the raw inflation figure reported o making CSR expenditure tax deductible,
through the Consumer Price Index (CPI). o provision for carry forward of unspent balance for
• Core inflation removes the CPI components that can a period of 3 – 5 years,
exhibit large amounts of volatility from month to month, o aligning Schedule 7 with the SDGs by adopting a
which can cause unwanted distortion to the headline SDG plus framework (which would additionally
figure. include sports promotion, Senior Citizens’
o The most commonly removed factors are those welfare, welfare of differently abled persons,
relating to the cost of food and energy. disaster management and heritage protection),
• Inflation deliberately undertaken to relieve a o balancing local area preferences with national
depression- Reflation priorities,
• Rise in prices with little change in output- Stagflation. o introducing impact assessment studies for CSR
Stagflation is when economic growth is stagnant obligation of 5 crore or more, and
but there still is price inflation. o registration of implementation agencies on MCA
• Price rise at full employment- Continuous inflation portal.
• The term ‘benign inflation’ implies a mild rate of • The other recommendations include:
inflation. o developing a CSR exchange portal to connect
Office of the Economic Adviser (OEA) contributors, beneficiaries and agencies,
• It is an attached office of the Ministry of Commerce & o allowing CSR in social benefit bonds,
Industry. o promoting social impact companies, and
The main statistical functions of the Office of o third party assessment of major CSR projects.
Economic Adviser include, inter alia the • The Committee has emphasized on not treating CSR
following : as a means of resource gap funding for government
• Compiling and releasing monthly Wholesale Price schemes.
Indices • The Committee discourages passive contribution of
• Compiling and releasing monthly Index of Core CSR into different funds included in Schedule VII of
Industries Production the Act.
• Developing other Indices on experimental basis, e.g. • It has emphasized on CSR spending as a board
select business service price indices driven process to provide innovative technology
• Supervising as a ‘source agency’ based solutions for social problems.
• Monthly Statistical compilation of macro indicators • The Committee has also recommended that
companies having CSR prescribed amount below Rs.
HIGH LEVEL COMMITTEE ON CORPORATE
50 lakh may be exempted from constituting a CSR
SOCIAL RESPONSIBILITY (CSR)
• Context: The High Level Committee on Corporate Committee.
Social Responsibility (CSR) was constituted in • The Committee has also recommended that violation
October, 2018 to review the existing CSR framework of CSR compliance may be made a civil offence and
and make recommendations on strengthening the shifted to the penalty regime.
CSR ecosystem, including monitoring implementation PARTIAL CREDIT GUARANTEE SCHEME

and evaluation of outcomes. • Partial Credit Guarantee is offered by Government of
Analysis India (GoI) to Public Sector Banks (PSBs) for
purchasing high-rated pooled assets from financially
sound Non-Banking Financial Companies • Due to the rise in global temperature, in 2019, the
(NBFCs)/Housing Finance Companies (HFCs). extent of sea ice in the polar regions has dropped well
• Objective: To address temporary asset liability below the average levels seen in past three decades.
mismatches of otherwise solvent NBFCs/HFCs Sensex sees 2nd record plunge of year
without having to resort to distress sale of their assets • The correction in the Indian market was largely driven
for meeting their commitments. by escalating trade tensions between US and China
• Validity of the scheme: The window for one-time coupled with political unrest in Hong Kong and
partial credit guarantee offered by GoI will open from Venezuela and crash in Argentina currency.
the date of issuance of the Scheme by the • Excluding Reliance, which was up by almost 10% in
Government for a period of six months, or till such intra-day trade, Sensex was down by more than 1,000
date by which Rupees One lakh crore assets get points in intra-day trade.
purchased by banks, whichever is earlier. • Incidentally, the Indian markets slipped further in the
Eligible NBFCs/HFCs: last hour of the trade amidst a weak opening in the
• (i) The NBFCs registered with RBI under the Reserve European markets as investors remained jittery due to
Bank of India Act, excluding those registered as Micro the worrisome reports coming from Argentina and
Finance Institutions and Core Investment Companies. Hong Kong.
• (ii) HFCs registered with National Housing Bank • In Argentina, stocks and currency plunged after
(NHB) under the National Housing Bank Act. President Mauricio Macri suffered a shock defeat in
• (iii) The CRAR of NBFCs/CAR of HFCs should not be elections, while political unrest has been simmering in
below the regulatory minimum (i.e. 15% for NBFCs Hong Kong with flight check-in at its airport – one of
and 12% for HFCs) as on 31.3.2019. the busiest in the world – remaining suspended for the
• (iv) Their net Non-Performing Asset should not be second successive day.
more than 6% as on 31.3.2019. Rajasthan bags award at World Education Summit
• (v) They should have made a net profit in at least one • Rajasthan has bagged the “best innovation and
of the last two preceding financial years (i.e. FY 2017- initiative leadership award” for its achievements in
18 and 2018-19). higher education in the World Education Summit-2019
• (vi) The NBFCs/HFCs should not have been reported held in New Delhi.
under SMA category by any bank for their borrowings Regulatory Sandbox
during last one year prior to 1.8.2018. • The Reserve Bank of India (RBI) issued the final
• (vii) Micro Finance Institutions and Core Investment framework for regulatory sandbox in order to enable
Companies are not covered under the Scheme. innovations in the financial technology space.
News in brief • A regulatory sandbox usually refers to live testing of
Surveys new products or services in a controlled/test
• The Reserve Bank of India (RBI) has been conducting regulatory environment for which regulators may
a Consumer Confidence Survey since 2010 and the permit certain regulatory relaxations for the limited
Centre For Monitoring Indian Economy (CMIE) has purpose of the testing.
been conducting a Consumer Sentiments Survey as • The proposed FinTech solution should highlight an
a part of its Consumer Pyramids Household Survey existing gap in the financial ecosystem and the
(CPHS) since January 2016. proposal should demonstrate how it would address
• July 2019 was the joint-hottest month on Earth (Juky the problem, and bring benefits to consumers or the
2016 was equally hot). industry and/or perform the same work more
efficiently, the banking regulator said.
Minimum networth
• RBI will launch the sandbox for entities that meet the o Pulicat Lake is the second largest brackish water
criteria of minimum net worth of ₹25 lakh as per their lake or lagoon in India, after Chilika Lake.
latest audited balance sheet. • The endangered Irrawaddy dolphins are also found in
• The entity should either be a company incorporated the lake, which is the single largest habitat of this
and registered in the country or banks licensed to species in the world.
operate in India. • On account of its rich bio-diversity and ecological
• While money transfer services, digital know-your significance, Chilika was designated as the 1st
customer, financial inclusion and cybersecurity "Ramsar Site" of India.
products are included, crypto currency, credit • The Nalaban Island within the lagoon is notified as a
registry and credit information have been left out. Bird Sanctuary under Wildlife (Protection) Act.
Already analysed in previous issues • The lake was included in the Montreux Record
• Hong Kong Protests pg 1, 14 (threatened list) in 1993 due to change in its
• National Disaster response Force pg 8 ecological character by Ramsar Convention but was
• Landslides pg 1 later removed from it due to the successful restoration
• Iran-Britain Conflict over oil tankers pg 14 of the site.
• Syria War pg 14 Montreux Record under the Ramsar Convention
• It is a register of wetland sites on the List of Wetlands
of International Importance where changes in
THE HINDU ANALYSIS 15th AUGUST 2019 ecological character have occurred, are occurring, or
CHILIKA LAKE are likely to occur as a result of technological
• Context: Chilika faces oil spill threat from stuck ship. developments, pollution or other human interference.
Analysis • It is maintained as part of the Ramsar List.
Chilika Lake • The Montreux Record was established by
• Chilika is a shallow lagoon with estuarine character Recommendations of the Conference of the
in Odisha. Contracting Parties (1990).
o Lagoons are areas of relatively shallow, quiet • Sites may be added to and removed from the
water situated in a coastal environment and Record only with the approval of the Contracting
having access to the sea but separated from the Parties in which they lie.
open marine conditions by a barrier. • Currently, two wetlands of India are in Montreux
o An estuary is a partially enclosed coastal body record viz. Keoladeo National Park, Rajasthan and
of brackish water with one or more rivers or Loktak Lake, Manipur.
streams flowing into it, and with a free connection Oilzapper
to the open sea. Estuaries form a transition zone • Developed by 'The Energy Resource Institute (TERI)'
between river environments and maritime after seven years of research work and partly
environments. supported by the DBT (Department of Biotechnology),
• It is the largest brackish water lagoon in India. Ministry of Science and Technology, the Oilzapper is
• The Daya and Bhargavi rivers feed the lake. essentially a cocktail of five different bacterial
• Seawater is Chilika's lifeblood. Without a regular strains that are immobilized and mixed with a carrier
inflow, the lake ecosystem would decline. material (powdered corncob).
• It is the largest wintering ground for migratory • The Oilzapper feeds on hydrocarbon compounds
waterfowl found anywhere on the Indian sub- present in crude oil and oily sludge (a hazardous
continent. hydrocarbon waste generated by oil refineries) and
converts them into harmless CO2 and water.
• The scientific term for the abovementioned process is • The National Pharmaceutical Pricing Authority
bioremediation. (NPPA) notified the ceiling price of orthopaedic knee
Bioremediation implants in August 2017 by invoking extraordinary
• Bioremediation is the use of living micro organisms powers, in public interest, under the Drugs (Prices
to degrade the environmental contaminants into less Control) Order, 2013 for a period of one year.
toxic forms. Analysis
• It uses naturally occurring bacteria and fungi or • National Pharmaceutical Pricing Authority (NPPA) is
plants to degrade or detoxify substances hazardous an attached office of the Department of
to human health and/or the environment. Pharmaceuticals (DoP), Ministry of Chemicals &
• The micro organisms may be indigenous to a Fertilizers.
contaminated area or they may be isolated from • The Authority has been entrusted with the task of:
elsewhere and brought to the contaminated site. o fixation/revision of prices of pharmaceutical
• Contaminant compounds are transformed by living products (bulk drugs and formulations),
organisms through reactions that take place as a part o enforcement of provisions of the Drugs (Prices
of their metabolic processes. Control) Order and
• Biodegradation of a compound is often a result of the o monitoring of the prices of controlled and
actions of multiple organisms. decontrolled drugs in the country.
• Bioremediation can be effective only where What are the Objectives of the Drug Policy?
environmental conditions permit microbial growth and • The main objectives of the Drug Policy are as under:
activity. o ensuring abundant availability, at reasonable
• The application often involves the manipulation of prices of essential and life saving medicines of
environmental parameters to allow microbial growth good quality;
and degradation to proceed at a faster rate. o strengthening the system of quality control over
Salient features drug production;
• It is cost effective. No construction or additional o promoting the rational use of drugs in the
infrastructure is required. country;
• These microbes are effective in controlling odour, o creating an environment conducive to
reducing Total Suspended Solids (TSS), Biological channelising new investment into the
Oxygen Demand (BOD), oil/ grease accumulation in pharmaceutical industry; and
sewage/ polluted water and solids. o strengthening the indigenous capability for
• These microbial consortia exhibit growth at wider production of drugs.
temperature range What is the "Drugs (Prices Control) Order (DPCO)" ?
• These strains maintains a satisfactory level of DO and • The Drugs Prices Control Order is an order issued by
therefore aerators, which consume high power can be the Department of Pharmaceuticals under Ministry of
avoided or its use can be reduced. Chemicals and Fertilizers under Essential
• Control the nutrient level in water thus help in Commodities Act, 1955 to regulate the prices of
controlling “Eutrophication” process. drugs (including medical devices such as Cardiac
stents, drug eluting stents, condoms, intra uterine
NATIONAL PHARMACEUTICAL PRICING
devices and orthopaedic knee implants).
AUTHORITY (NPPA)
• Context: The Central government noted that the • For the purpose of implementing provisions of DPCO,
powers of Govt. have been vested in NPPA.
ceiling price of orthopaedic knee implants will be
Are all the drugs marketed in the country under price
monitored to ensure that the cost does not increase
control ?
beyond 10% in a given year.
• No. The National List of Essential Medicines (NLEM) evidence of efficacy and wider acceptance in medical
2011 is adopted as the primary basis for determining science.
essentiality, which constitutes the list of scheduled o The medicine should be stable under the storage
medicines for the purpose of price control. conditions in India.
o However, the prices of other drugs (drugs not o When more than one medicine are available from
under direct price control) can be regulated, if the same therapeutic class, preferably one
warranted in public interest. prototype/medically best suited medicine of that
What is "Ceiling Price"? class to be included.
• Ceiling price means a price fixed by the Government • Comparative Cost-effectiveness - Price of total
for Scheduled formulations in accordance with the treatment to be considered and not the unit price of a
provisions of DPCO 2013. medicine.
• The ceiling price of a scheduled drug is determined by • Fixed Dose Combinations (FDCs) - Fixed Dose
first working out the simple average of price to retailer Combinations (FDCs) are generally not included
(PTR) in respect of all branded-generic and generic unless the combination has unequivocally proven
versions of that particular drug formulation having a advantage.
market share of 1 percent and above, and then • Sales Turnover - The sales of a medicine in terms of
adding a notional retailer margin of 16 percent to it. moving annual total (MAT) volume and MAT value
• The ceiling price fixed/revised by NPPA are notified in may not be criteria for essentiality.
the Gazette of India (Extraordinary) from time to time. • Hierarchy of Health Care Structure - The listing of
• The ceiling prices are usually notified as exclusive of medicine in NLEM is based according to the level of
excise duty, local tax, etc. health care, i.e. Primary (P), Secondary (S) and
History of the Essential Medicines List Tertiary (T) because the treatment facilities, training,
• The first country in the world to compose its EML experience and availability of health care personnel
was Tanzania in 1970. differ at these levels.
Criteria for inclusion of a medicine in National List of Drug Authentication and Verification Application
Essential Medicines (NLEM): (DAVA)
• Licence - The medicine should be approved/licensed • For continued confidence in exported pharmaceuticals
in India. from India, Director General of Foreign Trade (DGFT)
• Essentiality - In the context of NLEM, a medicine has introduced a track and trace system that enables
may be essential considering the population at large. traceability of exported pharmaceutical consignments
o Hence, a medicine which is critical for a specific in order to prevent counterfeits.
condition may not be listed in the list of essential • Exporters are required to mark consignments with
medicines if the disease condition for which it is GS1 barcodes at various packaging levels and
indicated has low prevalence or is rare. upload this information to the Drug Authentication
• Changing Disease Burden - The medicine should be and Verification Application (DAVA), before the
useful in disease which is a public health problem in consignment is released for sale or distribution.
India. o GS1 or Global Standards One is a not-for-profit
o Medicines needed to manage diseases that are organisation that develops and maintains global
highly prevalent or are emerging diseases in the standards for business communication.
population will qualify for inclusion in the NLEM. • DAVA has been designed by National Informatics
• Efficacy and Safety - For a medicine to be Centre (NIC).
considered essential, it should have an unequivocal • DAVA is based on GS1 standards, which make it
possible to uniquely identify and share important
information about exported consignments with • Hence, the MCLR applicable on the date of the loan
Regulators and patients across the world. sanction will determine the interest rate of the loan.
• This Track and Trace or bar-coding system is Reasons for introducing MCLR:
applicable to both small scale and non-SSI units. • RBI decided to shift from base rate to MCLR because
the rates based on marginal cost of funds are more
MARGINAL COST OF FUNDS BASED LENDING
sensitive to changes in the policy rates. This is very
RATE (MCLR)
• Context: Central bank cuts MCLR by 20 basis points. essential for the effective implementation of monetary
Analysis policy.
Marginal Cost of funds based Lending Rate (MCLR) • Thus, MCLR aims:
• It refers to the minimum interest rate of a bank below o To improve the transmission of policy rates into
which it cannot lend, except in some cases allowed by the lending rates of banks.
the RBI. o To bring transparency in the methodology
• The MCLR methodology for fixing interest rates for followed by banks for determining interest rates
advances was introduced by the Reserve Bank of on advances.
India with effect from April 1, 2016. This new o To ensure availability of bank credit at interest
methodology replaces the base rate system rates which are fair to borrowers as well as
introduced in July 2010. banks.
• Existing loans and credit limits linked to the Base o To enable banks to become more competitive
Rate (internal benchmark rate used to determine and enhance their long run value and
interest rates until March 2016) or Benchmark Prime contribution to economic growth.
Lending Rate (BPLR or the internal benchmark rate Base Rate Vs MCLR
used to determine the interest rates on • Base rate calculation is based on cost of funds,
advances/loans sanctioned up to June, 2010) would minimum rate of return, i.e margin or profit, operating
continue till repayment or renewal, as the case may expenses and cost of maintaining cash reserve ratio
be. while the MCLR is based on marginal cost of funds,
• However, existing borrowers will have the option to tenor premium, operating expenses and cost of
move to the Marginal Cost of Funds based Lending maintaining cash reserve ratio.
Rate (MCLR) linked loan at mutually acceptable terms. • The main factor of difference is the calculation of
• The MCLR is a tenor linked internal benchmark (tenor marginal cost under MCLR. Marginal cost is charged
means the amount of time left for the repayment of a on the basis of following factors- interest rate for
loan). various types of deposits, borrowings and return on
• A base rate customer can shift to the MCLR only by net worth.
paying a fee. • Therefore MCLR is largely determined by marginal
• MCLR is calculated on the basis of four major cost of funds and especially by deposit rates and repo
components — rates.
o the marginal cost of funds, News in brief
o tenor premium, Lambahraun Lava Fields
o operating cost and • To prepare for the next mission to Mars in 2020,
o negative carry on account of cash reserve ratio NASA has taken to the Lambahraun lava fields of
(CRR). Iceland to get its new robotic space explorer ready for
• Banks are required to review their MCLR every month the job.
on a pre-specified date based on which they review

their lending rates too.
• Experts say that Iceland, a volcanic island in the • Above Normal Flood: When water level has
middle of the North Atlantic, is in many ways exceeded the warning mark but is less than the
reminiscent of Mars. danger mark.
• This upcoming mission aims to continue the work of • Severe Flood: When water level has exceeded
the 'Curiosity' rover, which has been exploring Mars danger mark.
since 2012 in search of signs of ancient life and Samarth Scheme
making preparation for human exploration. • The Cabinet Committee on Economic Affairs gave its
Happiness Curriculum approval for the ‘Samarth’ Scheme for Capacity
• Lakhs of Delhi government school students from Building in Textile Sector (SCBTS) from 2017-18 to
nursery to Class VIII are being taught a ‘happiness 2019-20 to meet the skill requirements of textiles
curriculum’, which was launched by the Dalai Lama. industry.
• The curriculum focuses on meditation, moral • The scheme aims at skill development of 10 lakh
teachings, and mental exercises, with the aim of youth up to 2020.
turning students into good human beings. Free Transactions on ATM
ODF (Open Defecation Free), ODF+, ODF++ pg 9 • A minimum of 5 free ATM transactions at a bank’s
• A city/ward is notified as ODF city/ward if, at any point own ATM at any location and at any other bank’s ATM
of the day, not a single person is found defecating in at non-metro location is permitted.
the open. • A minimum of three free transactions at any other
• A city, ward or work circle could be declared ODF+ if, bank’s ATM at six metro locations viz. Mumbai, New
“at any point of the day, not a single person is found Delhi, Chennai, Kolkatta, Bengaluru and Hyderabad.
defecating and/or urinating in the open, and all • Ceiling on customer charges of Rs 20/- per
community and public toilets are functional and well- transaction (plus service tax, if any) will be applicable.
maintained. • The Reserve Bank of India has clarified that failed
• The ODF++ protocol adds the condition that “faecal transactions in automated teller machines (ATM) will
sludge/septage and sewage is safely managed and not be included in the number of free transactions
treated, with no discharging and/or dumping of which banks are mandated to offer to their customers.
untreated faecal sludge/septage and sewage in drains, • The RBI further said that non-cash withdrawal
water bodies or open areas.” transactions like balance enquiry and cheque book
• Moving beyond ODF, ODF+ and ODF++, the Water request will also not be part of the number of free
PLUS protocol aims to provide a guideline for cities ATM transactions.
and towns to ensure that no untreated wastewater is Already analysed in previous issues
released into the environment thereby enabling • NGT, Difference between National Clean Air
sustainability of the sanitation value chain. Programme, National Air Quality Index and Air Quality
Prevention of Corruption Act Monitoring Programme (NAMP), SAFAR pg 4
• The People’s Representation Act, 1951, mandates • Pradhan Mantri Awas Yojana pg 7
that a person convicted under the Prevention of • Chandrayaan 2 pg 9
Corruption Act cannot contest an election for six years • Register of Indigenous Inhabitants of Nagaland pg 12
after release.
• The appointment of a person to the office of Chief
Minister who is not qualified to hold it should be struck KASHMIR ISSUE AND UNSC
• Context: The United Nations Security Council
down at the earliest.
(UNSC) will meet on August 16 to discuss Kashmir
Floods
(India’s abrogation of Article 370).
• The Presidency of the UNSC is currently with Poland. • Beyond this, the Council may opt for enforcement
• The Kashmir discussion will be taken up under the measures, including:
closed consultations format. o economic sanctions, arms embargoes, financial
• The consultations on Kashmir were scheduled on a penalties and restrictions, and travel bans;
request from China. o severance of diplomatic relations;
• Consultations are a way for Security Council o blockade; or
members to informally take up an issue and the o even collective military action.
“closed” refers to the fact that the consultation is not Organization
open to the public and no record of statements is kept. • Since its first meeting in London, the Security Council
• The format also precludes Pakistan from participating. has taken permanent residence at the United Nations
Analysis Headquarters in New York City.
What is the Security Council? • It also travelled to many cities, holding sessions in
• The United Nations Charter established six main Addis Ababa, Ethiopia, in 1972, in Panama City,
organs of the United Nations, including the Security Panama, and in Geneva, Switzerland, in 1990.
Council. • A representative of each of its members must be
o The United Nations has six principal organs: the present at all times at UN Headquarters so that the
General Assembly, the Security Council, the Security Council can meet at any time as the need
Economic and Social Council, the Trusteeship arises.
Council, the International Court of Justice, and Permanent and Non-Permanent Members
the Secretariat. • The Council is composed of 15 Members:
• It gives primary responsibility for maintaining • Five permanent members: China, France, Russian
international peace and security to the Security Federation, the United Kingdom, and the United
Council, which may meet whenever peace is States, and ten non-permanent members elected
threatened. for two-year terms by the General Assembly (with end
• According to the Charter, the United Nations has four of term year):
purposes: o Belgium (2020)
o to maintain international peace and security; o Côte d’Ivoire (2019)
o to develop friendly relations among nations; o Dominican Republic (2020)
o to cooperate in solving international problems o Equatorial Guinea (2019)
and in promoting respect for human rights; and o Germany (2020)
o to be a centre for harmonizing the actions of o Indonesia (2020)
nations. o Kuwait (2019)
• While other organs of the United Nations make o Peru (2019)
recommendations to member states, only the Security o Poland (2019)
Council has the power to make decisions that o South Africa (2020)
member states are then obligated to implement Membership and Election
under the Charter. • Each year the General Assembly elects five non-
Maintaining Peace And Security permanent members (out of 10 in total) for a two-year
• When a complaint concerning a threat to peace is term.
brought before it, the Council’s first action is usually to • The 10 non-permanent seats are distributed on a
recommend that the parties try to reach agreement by regional basis as follows:
peaceful means. o five for African and Asian States;
o one for Eastern European States;
o two for the Latin American and Caribbean States; PRADHAN MANTRI LAGHU VYAPARI MAAN-
and DHAN YOJANA
o two for Western European and other States. • Context: The Union Government has notified a new
Non-Council Member States scheme.
• More than 60 United Nations Member States have Analysis
never been Members of the Security Council. • It is a pension scheme for shopkeeper’s/retail
• A State which is a Member of the United Nations but traders and self-employed persons for providing
not of the Security Council may participate, without a monthly minimum assured pension of Rs 3000/- for
vote, in its discussions when the Council considers the entry age group of 18-40 years.
that country's interests are affected. • It is a voluntary and contribution based central
Security Council Presidency sector scheme.
• The presidency of the Council is held by each of the • The scheme would benefit more than 3 crore small
members in turn for one month, following the English shopkeepers and traders.
alphabetical order of the Member States names. Eligibility
India and UNSC • The scheme is open to Laghu Vyaparis, who are self-
• By winning the unanimous endorsement of the 55- employed or are small traders.
nation Asia-Pacific Group at the United Nations • Age group of 18-40 years
Security Council, India has cleared an important • Laghu Vyapari whose annual turnover does not
hurdle in its quest for a non-permanent seat for 2021 exceed Rs 1.5 crore, based on self-declaration
and 2022. • Who has a savings bank account in his/her name and
• The decision of the grouping this week was taken as Aadhaar number.
India was the sole candidate for the post. The following are not eligible to join the Scheme
• In the next step, all 193 members of the UN General • If covered under National Pension Scheme
Assembly will vote for five non-permanent seats in contributed by the Central Government or Employees’
June 2020, when India will need to show the State Insurance Corporation Scheme or Employees’
support of at least 129 countries to go through to Provident Fund Scheme or
the UNSC. • Is an income-tax assessee.
• It will then occupy the seat at the UNSC for a two-year Benefits of the scheme
period, as it has previously on seven occasions • Each eligible subscriber under this Scheme shall
since 1950-51, it had ended its previous tenure in receive assured minimum monthly pension of Rs
2011-2012. 3000 after attaining the age of 60 years.
• India has served as a non-permanent member of the • The Government of India will make matching
United Nations Security Council (UNSC) more often contribution in the subscribers’ account.
than any country other than Japan from the Asia- Benefits on leaving the Pension Scheme
Pacific Group. • In case an eligible subscriber exits this Scheme within
• By rotation, that seat would have reached India only in a period of less than ten years from the date of joining
the 2030s, and India had to reach out to the Scheme by him, then the share of contribution by
Afghanistan, which had put in its bid already for him only will be returned to him with savings bank rate
the 2021-22 slot, to request it to withdraw. of interest payable thereon.
Afghanistan did so because of the special relationship • If an eligible subscriber exits after completion of a
between the two countries. period of ten years or more from the date of joining
the Scheme by him but before his age of sixty years,
then his share of contribution only shall be returned to
him along with accumulated interest thereon as o Even when a handful of Ebola cases were
actually earned by the Pension Fund or the interest at confirmed in Uganda, all the infected people
the savings bank interest rate thereon, whichever is had travelled from Congo and there had been no
higher; local transmission or spread within Uganda —
Benefits to the family on death of an eligible one of the criteria used by the WHO to assess
subscriber if an outbreak is a global emergency.
• During the receipt of pension, if an eligible subscriber • More than 1,600 people have died since August in the
dies, his spouse shall be only entitled to receive fifty second deadliest Ebola outbreak in history, which is
per cent of the pension received by such eligible unfolding in a region described as a war zone.
subscriber, as family pension and such family pension • This is the fifth time that the WHO has declared a
shall be applicable only to the spouse. global emergency. The earlier occasions were in
• If an eligible subscriber has given regular February 2016 for Zika outbreaks in the Americas,
contributions and disabled/died due to any cause, his August 2014 for Ebola outbreaks in western Africa,
spouse shall be entitled to continue with the Scheme the spread of polio in May 2014, and the H1N1 swine
subsequently by payment of regular contribution as flu pandemic in April 2009.
applicable or exit by receiving the share of • Declaring an event as a global emergency is meant to
contribution paid by such subscriber along with stop the spread of the pathogen to other countries
accumulated interest, as actually earned thereon by and to ensure a coordinated international response.
the Pension Fund or at the savings bank interest rate • WHO defines a global emergency as an
thereon, whichever is higher; “extraordinary event” which constitutes a risk to other
• After death of subscriber and his or her spouse, the countries and requires a coordinated international
corpus shall be credited back to the fund. response. Last month this outbreak spilled across the
border for the first time when a family brought the
EBOLA
• Context: An editorial. virus into Uganda after attending the burial in Congo
Analysis of an infected relative.
• The deadly Ebola outbreak in Congo is now an Analysis
international health emergency, the World Health • Ebola Virus Disease (EVD) is a rare and deadly
Organization announced, after the virus spread this disease in people and non-human primates (monkeys,
week to a city of two million people (Goma). gorillas, and chimpanzees).
• While cases in other areas are reducing, Beni, in the • The viruses that cause EVD are located mainly in
Democratic Republic of the Congo, is the new sub-Saharan Africa.
hotspot. • There is not one but many Ebola virus species.
• The announcement of the health emergency comes • There is no approved vaccine or treatment for EVD.
amid renewed concerns that the virus could spread to History
other countries. • Ebola virus was first discovered in 1976 near the
• A single imported case of Ebola in Goma, a city in Ebola River in what is now the Democratic Republic of
Congo.
Congo with two million people and with an
international airport bordering Rwanda, served as a o Since then, the virus has been infecting people
trigger to finally declare a global emergency. from time to time, leading to outbreaks in several
o Surprisingly, the spread to neighbouring Uganda African countries.
last month did not seem to change the way the • Scientists do not know where Ebola virus comes from.
WHO assessed the situation. However, based on the nature of similar viruses, they
believe the virus is animal-borne, with bats being the • The proposal for a CDS has been there for two
most likely source. decades.
o The bats carrying the virus can transmit it to • It was first made by the K. Subrahmanyam committee
other animals, like apes, monkeys, duikers and appointed after the Kargil conflict of 1999 to
humans. recommend higher military reforms.
Spread o However, lack of consensus and apprehensions
• Ebola virus spreads to people through direct contact among services meant it never moved forward.
with bodily fluids of a person who is sick with or has • In 2012, the Naresh Chandra committee
died from EVD. recommended the appointment of a Permanent
• This can occur when a person touches the infected Chairman of Chiefs of Staff Committee (COSC) as a
body fluids (or objects that are contaminated with midway to allay apprehensions over the CDS.
them), and the virus gets in through broken skin or What is the current status?
mucous membranes in the eyes, nose, or mouth. • In the absence of a CDS, presently the seniormost of
• The virus can also spread to people through direct the three Chiefs functions as the Chairman COSC.
contact with the blood, body fluids and tissues of • But it is an additional role and the tenures have been
infected fruit bats or primates. very short.
• People can get the virus through sexual contact as News in brief
well. Kondapalli Toys
• Kondapalli Toys are the toys made of wood in
CHIEF OF DEFENCE STAFF (CDS)
• Context: Prime Minister of India announced the Kondapalli, Andhra Pradesh.
appointment of a Chief of Defence Staff (CDS) who • These are registered as one of the geographical
will be above the three Service Chiefs. indication handicraft from Andhra Pradesh as per
Analysis Geographical Indications of Goods (Registration and
Who is a CDS? Protection) Act, 1999.
• The CDS is meant to be a single-point military advisor What is the three-language formula?
to the government, and to coordinate long-term • This was a reiteration of the Central government’s
planning, procurements, training and logistics of the three-language formula (the three languages
three services. referred to are Hindi, English and the regional
• As future wars become short, swift and network- language of the respective States), but it set off a
centric, coordination among the three services is storm in Tamil Nadu, which stoutly opposes any
crucial. attempt to impose Hindi and adheres to a two-
• Also as the stress on resources increases language formula.
and defence budgets remain flat, the way forward is • The origin of the linguistic row, however, goes back to
optimisation of resources by joint planning and the debate on official language. In the Constituent
training. Assembly, Hindi was voted as the official
• The CDS, being above the three Service Chiefs, is language by a single vote.
• Leaders in Tamil Nadu are often at pains to
expected to play this role by optimising procurement,
avoiding duplication among the services and emphasise that they do not oppose the voluntary
streamlining the process. learning of Hindi and cite the unhindered work of the
• India being a nuclear weapons state, the CDS will Dakshina Bharat Hindi Prachar Sabha, established
also act as the military advisor to the Prime Minister in Chennai by Mahatma Gandhi in 1918.
on nuclear issues. o The institution imparts Hindi teaching at various
Is this proposal new? levels to anyone who enrols for its programme.
• Article 351 of the Constitution provides that it shall o The Nuclear Command Authority comprises a
be the duty of the Union to promote the spread of the Political Council and an Executive Council.
Hindi language to develop it so that it may serve as a o While the Executive Council is chaired by the
medium of expression for all the elements of the National Security Advisor (NSA), the Political
composite culture of India and to secure its Council is chaired by the Prime Minister.
enrichment by assimilating without interfering with its • India would not use nuclear weapons against non-
genius. nuclear weapon states.
Already analysed in previous issues • India would continue to put strict controls on the
• National Green Tribunal pg 2 export of nuclear and missile related materials and
• Regional Comprehensive Economic Partnership pg technologies, participate in the Fissile Material Cutoff
15 Treaty negotiations, and continue to observe the
moratorium on nuclear tests.
• India remains committed to the goal of a nuclear
INDIA'S NUCLEAR DOCTRINE weapons free world, through global, verifiable and
• Context: Defence Minister Rajnath Singh said Friday
non-discriminatory nuclear disarmament.
that while India has strictly adhered to the doctrine of
• An important aspect of India’s nuclear doctrine is
‘No First Use’ (NFU) of nuclear weapons, “what
credible minimum deterrence (CMD), which refers
happens in future depends on the circumstances”.
to the quantity of nuclear forces that India needs to
• It was not immediately clear whether the Defence
deter potential nuclear adversaries.
Minister was suggesting that India might be willing to
• Issues such as terrorism and Tactical (nonstrategic)
revisit NFU.
nuclear weapons (TNWs) were not mentioned in the
Analysis
Indian nuclear doctrine.
What is No First Use doctrine, and how did it come
• Note: Pakistan, by contrast, has openly threatened
into being?
India with the use of nuclear weapons on multiple
• In January 2003, when Vajpayee was India’s Prime
occasions beginning from the time the two nations
Minister, the Cabinet Committee on Security (CCS)
were not even acknowledged nuclear powers.
met to review the progress in operationalizing the
Tactical Nuclear Weapons (TNWs)
country’s nuclear doctrine. An official release issued
• Tactical nuclear weapons are low-yield short-range
that day summarized the decisions that were being
nuclear bombs that can be used to stall the progress
put in the public domain.
of troops.
Major Features:
• They typically refer to short-range weapons, including
• Nuclear weapons will only be used in retaliation
land-based missiles with a range of less than 500 km
against a nuclear attack on Indian territory or on
and air- and sea-launched weapons with a range of
Indian forces anywhere.
less than 600 km.
• India’s nuclear retaliation to a first strike will be
• TNWs are the least-regulated category of nuclear
massive and designed to inflict unacceptable damage.
weapons covered in arms control agreements.
• In the event of a major attack against India, or Indian
Limitations of TNWs
forces anywhere, by biological or chemical weapons,
o TNWs are extremely costly and complex to
India will retain the option of retaliating with nuclear
manufacture.
weapons.
o These are difficult to transport, store and
• Nuclear retaliatory attacks can only be authorised
maintain under field conditions due to their
by the civilian political leadership through the Nuclear
intricate electronic components.
Command Authority.
o TNWs are also vulnerable to battlefield o The Ministry of Road Transport & Highways has
accidents and are susceptible to unauthorised issued a Gazette Notification according to which
use (‘Mad Major Syndrome’). all four wheel motor vehicles sold on or after 1st
Cold Start Doctrine of India December 2017 will have FASTags fitted on
• The Cold Start doctrine sought to prepare the army in them by the manufacturer of the vehicle or its
such a manner that offensive operations could be authorized dealer, as the case may be.
undertaken within 48 hours of the orders being o In case of vehicles that are sold as drive away
issued, enabling the Indian troops to take their chassis without wind screen, FASTag will have to
Pakistani counterparts by surprise. be fitted by the vehicle owner before it is
• It is also known as ‘Proactive Offensive Operations’ registered.
doctrine. • FASTag is applicable for all categories, kinds, makes
• India has officially denied that the Cold Start and types of vehicles.
doctrine exists. Who is implementing this program?
• Indian Highways Management Company Limited
FASTag
• Context: Last date for pre-registeration for RFID tags (IHMCL) (a company incorporated by National
extended in Delhi. Highways Authority of India) and National Payment
Analysis Corporation of India (NPCI) are implementing this

program.
What is FASTag
• National Highways Authority of India has rolled out • Vehicle without valid FASTag entering FASTag lane
program for Electronic Toll Collection on Toll Plazas will be charged double the applicable toll amount in
on National Highways to be called FASTag. cash.
• FASTag is a simple to use, reloadable tag which • Further, bank neutral FASTag “NHAI FASTag” have
enables automatic deduction of toll charges and lets been launched for easy availability at petrol-pump and
you pass through the toll plaza without stopping for on e-commerce site Amazon.
the cash transaction. o NHAI FASTag is a ‘bank-neutral’ FASTag i.e. no
• FASTag is linked to a prepaid account from which the bank is pre-assigned to the FASTag at the time
applicable toll amount is deducted. of purchase by customer.
• The tag employs Radio-frequency Identification Other benefits are:
(RFID) technology and is affixed on the vehicle's • (a) Environmental benefit:
windscreen after the tag account is active. o Reduced air pollution,
• RFID tagging is an ID system that uses small radio o Reduced use of paper
frequency identification devices for identification and • (b) Social benefit:
tracking purposes. o Reduced toll payment hassles ,
o Increasingly, RFID tagging is used in supply o Analytics for better highway management
chain management as an alternative to bar code • (c) Economic benefit :
technology. o Reduced effort in management at toll plaza,

o Reduced effort in monitoring centrally.
• Although more expensive to use than the bar code
stickers, RFID tags don't get dirty or fall off or require NATIONAL NUTRITION MISSION (POSHAN
an unobstructed line-of-sight between the tag and the ABHIYAAN)
reader. • Context: The Congress government in Rajasthan is
• FASTag has a validity of 5 years. promoting the activities of the National Nutrition
• Adopting FASTag is voluntary at this stage of the Mission (NNM) in a big way to tackle malnourishment
program. among children.
Analysis o Introducing a very robust convergence
Malnutrition (as per WHO) mechanism.
• Malnutrition refers to deficiencies, excesses, or o ICT based Real Time Monitoring system.
imbalances in a person’s intake of energy and/or o Incentivizing States/UTs for meeting the targets.
nutrients. o Incentivizing Anganwadi Workers (AWWs) for
• The term malnutrition addresses 3 broad groups of using IT based tools.
conditions: o Eliminating registers used by AWWs.
o undernutrition, which includes wasting (low o Introducing measurement of height of children at
weight-for-height), stunting (low height-for-age) the Anganwadi Centres (AWCs).
and underweight (low weight-for-age); o Social Audits.
o micronutrient-related malnutrition, which o Setting-up Nutrition Resource Centres, involving
includes micronutrient deficiencies (a lack of masses through Jan Andolan for their
important vitamins and minerals) or micronutrient participation on nutrition through various
excess; and activities, among others.
o overweight, obesity and diet-related non- • All the States and districts will be covered in a phased
communicable diseases (such as heart disease, manner (315 districts in 2017-18, 235 districts in
stroke, diabetes and some cancers). 2018-19 and remaining districts in 2019-20).
National Nutrition Mission (NNM) • This will be funded by Government Budgetary Support
• There are a number of schemes directly/indirectly (50%) and 50% by IBRD or other multilateral
affecting the nutritional status of children (0-6 years development bank (MDB).
age) and pregnant women and lactating mothers. o A multilateral development bank (MDB) is an
• Inspite of these, level of malnutrition and related international financial institution chartered by two
problems in the country is high. or more countries for the purpose of encouraging
• There is no dearth of schemes but lack of creating economic development.
synergy and linking the schemes with each other to • Recently (May 2018), it received $200 mn loan
achieve common goal. from the World Bank.
• NNM through robust convergence mechanism and • Government budgetary support would be 60:40
other components would strive to create the synergy. between Centre and States/UTs, 90:10 for NER and
• NNM targets to reduce stunting, under-nutrition, Himalayan States and 100% for UTs without
anaemia (among young children, women and legislature.
adolescent girls) and reduce low birth weight by 2%, National Nutrition Strategy
2%, 3% and 2% per annum respectively. • NITI Aayog has worked on a National Nutrition
• Although the target to reduce Stunting is atleast 2% Strategy (NNS), isolated the 100 most backward
p.a., the Mission would strive to achieve reduction in districts for stunting and prioritised those for
Stunting from 38.4% (NFHS-4) to 25% by interventions.
2022 (Mission 25 by 2022). • Vision 2022: “Kuposhan Mukt Bharat”
o A low weight-for-height is called wasting and a Objectives and targets:
low height-for-age is called stunting. o 3 point percentage/year reduction in underweight
• The Mission is being implemented by the Ministry of prevalence in children (0-3 years) by 2022 from
Women and Child Development. NFHS-4 levels;
Features: o 1/3rd reduction in anaemia in children,
o Mapping of various Schemes contributing adolescent & Women of Reproductive Age
towards addressing malnutrition. (WRA)
Funding (leveraging): • Promotion for intake of iodised salt and monitoring
o National Health Mission salt quality through testing under National Iodine
o National Nutrition Mission Deficiency Disorders Control Programme.
o Integrated Child Development Scheme • Rashtriya Bal Swasthya Karyakram (RBSK), is aimed
o Swachh Bharat Mission at early identification and early intervention for
o Increased provision of 25% flexi funds for States children from birth to 18 years to cover 4 ‘D’s viz.
in Centrally sponsored schemes Defects at birth , Deficiencies, Diseases,
Government of India is implementing various Development delays including disability.
schemes and programmes to prevent malnutrition o The 0-6 years age group will be specifically
which are as follows: managed at District Early Intervention Centre
• MoHFW under the umbrella of National Health level while for 6-18 years age group,
Mission (NHM) has implemented following schemes management of conditions will be done through
and programmes which address the issue of existing public health facilities.
malnutrition: • Mission Indradhanush: The objective is to ensure
• Promotion of appropriate Infant and Young Child high coverage of children with all vaccines in identified
Feeding (IYCF) practices that include early initiation districts with the goal of reaching the unreached to
of breastfeeding and exclusive breastfeeding till 6 achieve 90% full immunization coverage in India.
months of age through ASHA worker and health care • Village Health and Nutrition Days and Mother and
provider at health facilities. Child Protection Card are the joint initiative of the
• In order to promote and support breastfeeding, Ministry of Health & Family welfare and the Ministry of
Government has implemented “MAA- Mothers’ Woman and Child Development for addressing the
Absolute Affection” programme to improve nutrition concerns in children, pregnant women and
breastfeeding coverage and appropriate lactating mothers.
breastfeeding practices in the country. o Village Health and Nutrition Days (VHNDs) are
• Vitamin A supplementation (VAS) for children till the monthly days held at village level in Anganwadi
age of 5 years. centre to increase the awareness and bring
• ‘National Iron Plus Initiative’ has been launched as about desired changes in the dietary practices
an effective strategy for supplementation and including the promotion of breastfeeding.
treatment of anaemia in children, adolescents, • MWCD has implemented the following schemes to
pregnant and lactating women, in programme mode address malnutrition:
through life cycle approach. • Under Umbrella ICDS scheme of MWCD
• National Deworming Day is a fixed day strategy to Supplementary Nutrition Programme is being
administer Albendazole tablets to all the children in implemented through platform of Anganwadi Centres
the age group of 1-19 years through the platform of (AWCs) for addressing under-nutrition in pregnant
AWCs and Schools. and lactating women, under-6 children and out-of-
• In order to increase awareness about the use of ORS school adolescent girls.
and Zinc in diarrhoea, an Intensified Diarrhoea • Recently National Nutrition Mission has been
Control Fortnight (IDCF) is being observed during approved under MWCD for addressing malnutrition
July-August, with the ultimate aim of ‘zero child status of the country in a comprehensive manner.
deaths due to childhood diarrhoea’. ❖ Micro-nutrient deficiencies is also known as
• Incentives are provided to ASHA for tracking of Low “hidden hunger”.
birth weight babies.
NEWSPACE INDIA LTD (NSIL) • The American firm has bought payload slot on the first
• Context: NewSpace India Ltd, the new public sector commercial launch of ISRO’s newest rocket — Small
space business company, launched a formal search Satellite Launch Vehicle (SSLV).
for industry consortia which can regularly manufacture o The first flight of SSLV is slated to take place
and deliver entire PSLV satellite launch vehicles for its from the Satish Dhawan Space Centre later this
parent, the Indian Space Research Organisation. year.
Analysis o The first SSLV mission will deploy commercial
NewSpace India Limited (NSIL) spacecraft in two different orbital planes.
• ISRO has formed the NewSpace India Limited (NSIL), • The Indian SSLV (Small Satellite Launch Vehicle) is a
a public sector undertaking (PSU) that will planned small launch vehicle serving the marked
o commercially exploit the research and below the PSLV family.
development work of the space agency, • Initially the satellites will be launched from Satish
o co-produce PSLV and launch satellites through Dhawan Space Center, Sriharikota, but beginning with
Small Satellite Launch Vehicles (SSLVs). the third launch, a new launch site on the Indian
• The functions of NSIL will involve: west coast near Gujarat is planned.
o small satellite technology transfer to industry, • The SSLV has three solid motor stages, and like the
o manufacturing of Small Satellite Launch Vehicle PSLV and GSLV, can accommodate multiple
(SSLV) — a product which is being developed by satellites, albeit smaller ones.
the ISRO — in collaboration with the private o PSLV is a four-staged launch vehicle with first
sector and and third stage using solid rocket motors and
o production of Polar Satellite Launch Vehicle second and fourth stages using liquid rocket
(PSLV). engines.
• The new company will also look after the production o GSLV is a three-stage vehicle with solid, liquid
and marketing of space-based products and services, and cryogenic stages.
including launch and application, developed by ISRO • Unlike the PSLV and GSLV, the SSLV can be
centres and the constituent units of the assembled both vertically and horizontally.
Department of Space and marketing spin-off o It’s bigger siblings are assembled only in an
technologies and products and services both in India upright position in the assembly bays at the
and abroad. Satish Dhawan Space Centre at Sriharikota.
• NSIL would enable Indian Industries to scale up high- o In that respect, the SSLV is like the old SLV and
technology manufacturing and production base for ASLV which could be assembled flat on the
meeting the growing needs of the Indian space ground.
program and would further spur the growth of Indian • SSLV is designed to inject small satellites weighing up
industries in the space sector. to 500 kilogrammes in low earth orbits/Sun
• Note: Antrix Ltd is another PSU under the Synchronous Orbit.
Department of Space that acts as a commercial arm • The induction of SSLV is likely to boost launch
of ISRO and markets the products and services of the capacity of the space agency in small satellite
Indian Space Research Organisation (ISRO). category.
Small Satellite Launch Vehicle (SSLV) o The Polar Satellite Launch Vehicle is capable of
• Recently, the NewSpace India Ltd (NSIL) has got its launching satellites in 1100-1600 kg class into
first customer — an American space rideshare Sun Synchronous Orbit.
company, Spaceflight.
• SSLV is perfectly suited for launching multiple that different healthcare facilities in villages and
microsatellites at a time and supports multiple remote areas require.
orbital drop-offs. • The list is meant for facilities from village till the district
• It is designed for the launch-on-demand concept level, noted ICMR.
with very quick turn-around capability in between WHO list
launches. • WHO released first edition of essential diagnostics list
o SSLV promises on-demand access to space, (EDL) in May 2018.
with the rocket assembly taking a mere 15 days • Even though WHO’s EDL acts as a reference point for
and minimum personnel to do it. development of national EDL, India’s diagnostics list
• ISRO currently piggybacks smaller satellites on the has been customised and prepared as per landscape
PSLV and GSLV along with bigger satellites. of India’s health care priorities.
• The SSLV is expected to reduce the launch time • NEDL builds upon the Free Diagnostics Service
as well as cost less to launch small satellites, which Initiative and other diagnostics initiatives of the Health
are much in demand. Ministry to provide an expanded basket of tests at
Sun-synchronous orbits different levels of the public health system, explained
• An orbit is called sun-synchronous when the angle a senior ICMR official.
between the line joining the centre of the Earth and • He said implementation of NEDL would enable:
the satellite and the Sun is constant throughout the o improved health care services delivery through
orbit. evidence-based care;
Characteristics of the Sun-synchronous orbits: o improved patient outcomes and reduction in out-
• These orbits are also referred to as “Low Earth Orbit of-pocket expenditure;
(LEO)”. o effective utilisation of public health facilities;
• They enable the on-board camera to take images of o effective assessment of disease burden, disease
the earth under the same sun-illumination conditions trends, surveillance, and outbreak identification;
during each of the repeated visits. and
• The satellite in this orbit makes over the same area on o address antimicrobial resistance crisis too.
ground thus making the satellite useful for earth • While affordability of diagnostics is a prime concern in
resources monitoring. low, middle-income countries like India, low cost,
inaccurate diagnostics have made their way into the
NATIONAL ESSENTIAL DIAGNOSTICS LIST
Indian market which has no place in the quality health
(NEDL)
• Context: India has got its first National Essential care system.
Diagnostics List (NEDL) finalised by the Indian • The list also encompasses tests relevant for new
Council of Medical Research (ICMR). programmes such as Health and Wellness Centres
Analysis (HWCs) under the Pradhan Mantri Jan Arogya Yojana.
• It aims to bridge the current regulatory system’s gap • In addition to tests, corresponding IVD products have
that do not cover all the medical devices and in-vitro also been recommended.
diagnostic device (IVD). COMPANIES (AMENDMENT) BILL, 2019

• The current system is equipped to manage only the • Context: The Companies (Amendment) Bill, 2019 has
few notified devices. been passed by the Perliament. It amends the
• With this, India has become the first country to Companies Act, 2013.
compile such a list that would provide guidance to the Analysis
government for deciding the kind of diagnostic tests Issuance of dematerialised shares:
• Under the Act, certain classes of public companies o Any funds remaining unspent after three years
are required to issue shares in dematerialised form will have to be transferred to one of the funds
only. under Schedule 7 of the Act.
o Dematerialisation is the process of converting Debarring auditors:
physical shares into electronic format. • Under the Act, the National Financial Reporting
o An investor who wants to dematerialise Authority debar a member or firm from practising as a
his shares needs to open a demat account with Chartered Accountant for a period between six
Depository Participant. months to 10 years, for proven misconduct.
o Investor surrenders his physical shares and in Change in approving authority:
turn gets electronic shares in his demat account. • Under the Act, change in period of financial year for a
o Depository is the body which is responsible for company associated with a foreign company, has to
storing and maintaining investor's securities in be approved by the National Company Law Tribunal.
demat or electronic format. In India there are • Similarly, any alteration in the incorporation document
two depositories i.e. NSDL and CDSL. of a public company which has the effect of converting
Re-categorisation of certain Offences: it to a private company, has to be approved by the
• The 2013 Act contains 81 compoundable offences Tribunal.
punishable with fine or imprisonment, or both. These • Under the Bill, these powers have been
offences are heard by courts. transferred to central government.
• The Bill re-categorizes 16 of these offences as civil Compounding:
defaults, where adjudicating officers (appointed by the • Under the Act, a regional director can compound
central government) may now levy penalties instead. (settle) offences with a penalty of up to five lakh
• These offences include: (i) issuance of shares at a rupees. The Bill increases this ceiling to Rs 25 lakh.
discount, and (ii) failure to file annual return. Further, WHAT IS CORPORATE SOCIAL
the Bill amends the penalties for some other offences. RESPONSIBILITY(CSR)?
• Non-compliance with CSR norms has been made • Corporate Social Responsibility (CSR) is a concept
a jailable offence for key officers of the company, that suggests that it is the responsibility of the
apart from hefty fines up to ₹25 lakh on the company corporations operating within society to contribute
and ₹5 lakh on the officer in default. towards economic, social and environmental
Corporate Social Responsibility (CSR): development that creates positive impact on society at
• Under the Act, if companies which have to provide for large.
CSR, do not fully spent the funds, they must disclose THE COMPANIES ACT, 2013
the reasons for non-spending in their annual report. • As far as Corporate Social Responsibility is
• Under the Bill, any unspent annual CSR funds must concerned, the Companies Act, 2013 is a landmark
be transferred to one of the funds under Schedule 7 of legislation that made India the first country to
the Act (e.g., PM Relief Fund, Clean Ganga Fund, mandate and quantify CSR expenditure.
Swachh Bharat Kosh etc.) within six months of the • Under the Act, every company, private limited or
financial year. public limited, which either has
o However, if the CSR funds are committed to o a net worth of Rs 500 crore or
certain ongoing projects, then the unspent funds o a turnover of Rs 1,000 crore or
will have to be transferred to an Unspent CSR o net profit of Rs 5 crore, needs to spend at least
Account within 30 days of the end of the financial 2% of its average net profit for the
year, and spent within three years. immediately preceding three financial years
on Corporate social responsibility activities.
• The CSR activities in India should not be • (v) protection of national heritage, art and culture
undertaken in the normal course of business and including restoration of buildings and sites of historical
must be with respect to any of the activities mentioned importance and works of art; setting up public
in Schedule VII of the Act. libraries; promotion and development of traditional
• The corporations are required to setup a CSR arts and handicrafts;
committee which designs a CSR policy which is • (vi) measures for the benefit of armed forces veterans,
approved by the board. war widows and their dependents;
• The Corporate Social Responsibility Committee of the • (vii) training to promote rural sports, nationally
Board must consists of three or more directors, out of recognised sports, paralympic sports and Olympic
which at least one director shall be an independent sports;
director. • (viii) contribution to the Prime Minister’s National
• No specific tax exemptions have been extended to Relief Fund or any other fund set up by the Central
CSR expenditure per se. Finance Act, 2014 also Government for socio-economic development and
clarifies that expenditure on CSR does not form part relief and welfare of the Scheduled Castes, the
of business expenditure. Scheduled Tribes, other backward classes, minorities
• The Act also has penal provisions for corporations and women;
and individuals for failure to abide by the norms. • (ix) contributions or funds provided to technology
o An independent director is a non-executive incubators located within academic institutions which
director who does not have any pecuniary are approved by the Central Government;
relationship with the company, its promoters, • (x) rural development projects;
senior management or affiliate companies, • (xi) slum area development.
and/or has not been an executive with the Which activities would not qualify as CSR
company in the three preceding financial years. Expenditure?
o Independent directors act as a guide to the o The CSR projects or programs or activities that
company. Their roles broadly include improving benefit only the employees of the company and
corporate credibility and governance standards, their families shall not be considered as CSR
and functioning as a watchdog, and playing a activities in accordance with section 135 of the
vital role in risk management. Act.
Activities mentioned in Schedule VII of the act: o One-off events such as marathons/ awards/
• (i) eradicating hunger, poverty and malnutrition, charitable contribution/advertisement
promoting preventive health care and sanitation /sponsorships of TV programmes etc. would not
including contribution to the Swachh Bharat Kosh; be qualified as part of CSR expenditure.
• (ii) promoting education, enhancing vocation skills and o Expenses incurred by companies for the
livelihood enhancement projects; fulfillment of any Act/ Statute of regulations (such
• (iii) promoting gender equality, empowering women, as Labour Laws, Land Acquisition Act etc.) would
setting up homes and hostels for women and not count as CSR expenditure under the
orphans; setting up old age homes, day care centres Companies Act.
etc. and measures for reducing inequalities faced by o Contribution of any amount directly or indirectly
socially and economically backward groups; to any political party shall not be considered as a
• (iv) ensuring environmental sustainability, ecological CSR activity.
balance, protection of flora and fauna, contribution to o Activities undertaken by the company in
the Clean Ganga Fund etc.; pursuance of its normal course of business.
Whether expenditure incurred on disaster relief
qualifies for CSR or not?
• Disaster relief can cover wide range of activities that
can be appropriately shown under various items listed
in Schedule VII. For example,
o (i) medical aid can be covered under ‘promoting
health care including preventive health care.’
o (ii) food supply can be covered under eradicating
hunger, poverty and malnutrition.
o (iii) supply of clean water can be covered under
‘sanitation and making available safe drinking
water’.
• In the last three years (upto Nov 2017), the
decreasing order of the Corporate Social
Responsibility funding in different sectors is:
• Education/Differently-Abled > Health/Hunger/Poverty
and Malnutrition/Sanitation > Rural development PIRACY
• Context: 17 seamen abducted near Cameroon
Corporate Environment Responsibility
• The Gulf of Guinea, whose coastline stretches in a
• The environment ministry has firmed up guidelines
huge arc from Liberia to Gabon, is notorious for piracy
that will require every corporate seeking green
as well as oil theft and drug trafficking.
clearance to set aside up to 2% of its capital
Analysis
investment for Corporate Environment Responsibility
• When a person or group of people attack and rob a
(CER).
ship, this is called piracy.
• The guidelines make it mandatory for companies to
• Pirate attacks are largely confined to four major
set aside funds for CER over and above what is
areas:
required for executing the environment management
o the Horn of Africa: the Gulf of Aden, near
plan in a project affected area.
Somalia and the southern entrance to the Red
• The activities proposed under CER shall be worked
Sea;
out based on the issues raised during the public
o the Gulf of Guinea, near Nigeria and the Niger
hearing, social need assessment etc.
River delta;
• The proposed activities shall be restricted to the
o the Malacca Strait between Indonesia and
affected area around the project. CER activities will
Malaysia; and
include measures like pollution control, wildlife and
o off the Indian subcontinent, particularly between
forest conservation, compensatory afforestation and
India and Sri Lanka.
rehabilitation and resettlement of displaced persons.
o Pirates often carry out other forms of organised
crime. They are able to do this because they
have a wide network of contacts and may have
corrupt associations with officials.
Somalia and Piracy
• Many pirates come from Somalia. Reasons are:
o limited economic opportunities throughout the
country
o it is beside a key commercial shipping route
o it has a lack of effective government
o it has difficulties enforcing law and order
• The level of pirate activity is affected by many factors.

Below are some of the physical factors:
o the weather conditions, e.g. in the Indian Ocean,
piracy levels decrease during a monsoon;
o the height of the waves;
o the conditions in other areas - if piracy levels
decrease in one area because of naval
surveillance or poor weather conditions, the level
of piracy tends to increase in other areas
• As a result of increased surveillance in the Gulf of
Aden, it is thought that piracy attacks are moving out
and towards the Indian Ocean.
• The effects of piracy include:
o A rise in the cost of shipping insurance means a
rise in the cost of transport - this makes the
goods more expensive for the consumer.
o Disruption to humanitarian relief responses for
the countries of Somalia, Ethiopia, North Sudan,
and South Sudan, which are all susceptible to
famine.
o Re-routing south around Africa, rather than
cutting through the Suez Canal, costs the ship
extra time and fuel. Egypt loses money because
Suez Canal fees are lost.
o Money that could be being spent on education
and health has to be spent on patrolling the
waters.
Decline of Piracy off the Coast of Somalia – How Did o Al-Shabaab, which swore its allegiance to al-
It Happen? Qaeda in early 2012 and is categorized by the
• The decline in Somali piracy can be largely credited to EU and United States as a terrorist organization,
the four principal ways the international community controls its territories with an iron fist, making it
has used to address the problem: much harder for pirates to exploit the coastline as
o (1) maritime patrols by international naval forces; they do in Puntland.
o (2) industry development of a series of “Best • Countries involved in the "Eye in the Sky"
Management Practices” (BMPs) for preventing operations against piracy by which they jointly carry
piracy attacks; out air patrols above the Malacca strait: Indonesia,
o (3) the increased use of armed security Malaysia, Singapore and Thailand
personnel on board ships; and The Djibouti Code of Conduct
o (4) the increase in international prosecutions for • The Code of Conduct concerning the Repression of
the crime of piracy. Piracy and Armed Robbery against Ships in the
• In southern Somalia, however, Islamist al-Shabaab Western Indian Ocean and the Gulf of Aden, also
rebels have been waging a violent campaign to referred to as the Djibouti Code of Conduct, was
impose Sharia law and serve as a de-facto governing adopted in January 2009 by the representatives of:
authority. Djibouti, Ethiopia, Kenya, Madagascar, Maldives,
Seychelles, Somalia, the United Republic of Tanzania • Although Greenland remains a part of the Kingdom of
and Yemen. Denmark, the island’s home-rule government is
• Comoros, Egypt, Eritrea, Jordan, Mauritius, responsible for most domestic affairs.
Mozambique, Oman, Saudi Arabia, South Africa, • The Greenlandic people are primarily Inuit (Eskimo).
Sudan and the United Arab Emirates have since • The capital of Greenland is Nuuk (Godthåb).
signed bringing the total to 20 countries from the 21 • ‘Third Pole’ is a region in Central Asia with the
eligible to sign. world’s third largest store of ice after Antarctica and
• Since the agreement is not open to accession by Greenland.
any state, overall 21 countries ranging from Yemen to • Kvanefjeld Project in southern Greenland, namely a
Mozambique are eligible to sign the Code (Graph one planned uranium and Rare Earth Elements
shows the states envisioned to participate in the (neodymium, dysprosium, and yttrium, among others)
process). mine, is a joint venture of China and Australia.
UN Convention on the Law of the Sea and Piracy
FOREX RESERVES OF INDIA
• The international community also has at its disposal
• Context: Forex reserves of India are at a new record
the UN Convention on the Law of the Sea. high of $430.57 bn.
• The treaty, which came into effect in 1994, is binding Analysis
for more than 150 nations and the European Union. India's Forex Reserves
• The United States has yet to ratify the agreement.
• India's forex reserves comprise:
The Convention governs "all aspects of ocean space," o Foreign Currency Assets (FCAs),
including the "settlement of disputes relating to ocean o Gold reserves,
matters." o Special Drawing Rights (SDRs) and
• It also makes "piracy a universal crime, and o India's reserve position with the International
subjects pirates to arrest and prosecution by any Monetary Fund (IMF).
nation, • FCAs constitute the largest component of the forex
• The UN convention on the Law of the Sea defines reserves.
piracy as "all illegal acts of violence or detention ... o They are followed by gold reserves > India's
committed for private ends by the crew or passengers reserve position with the IMF > Special
of a private ship". Drawing Rights.
• But it says that piracy can take place only "on the • Besides the US dollar, FCAs consist of 20-30 per cent
high seas" or "outside the jurisdiction of any of the other major global currencies.
state", which excludes the territorial waters of states, • Forex reserves are one of the key revenue earning
including the coastal areas of Somalia. sources for the central bank, which invests the
• Even, "action permitted on the high seas" does not money in foreign government bonds and also with the
permit pursuing and boarding a pirate vessel or IMF and other secure investment classes.
arresting those on board. To do so needs the • A portion of the forex kitty is also used to shore up the
further authorisation of the transitional government. gold reserves, which the RBI had increased by over 8
GREENLAND tonnes last fiscal after decades.

• Context: USA under Trump wants to buy Greenland! • Expressed in dollar terms, foreign currency assets
Analyse include the effect of appreciation/ depreciation of non-
• Greenland is the world’s largest island, lying in the US units like the euro, pound and yen held in the
North Atlantic Ocean. reserves.
• Greenland is noted for its vast tundra and immense Special drawing rights (SDR)
glaciers.
• Special drawing rights (SDR) refer to an THE HINDU ANALYSIS 18th AUGUST 2019
international type of monetary reserve currency
INDIAN NEW YEARS
created by the International Monetary Fund (IMF) in • Context: Parsis in India celebrated New Year or
1969 that operates as a supplement to the existing Navroz. In Iran, Zoroastrians celebrated the New Year
reserves of member countries. on the Spring Equinox, March 21.
• Created in response to concerns about the Analysis
limitations of gold and dollars as the sole means of • New Year is celebrated all across the world on
settling international accounts, SDRs augment January 1. This, however, is in accordance with the
international liquidity by supplementing the standard Gregorian calendar.
reserve currencies. • It's the harvesting season which is mostly
• Effective October 1, 2016 the SDR basket consists of synonymous with the new year celebrations in India.
the US dollar, euro, the Chinese renminbi, • Being a diverse nation, new year in India is celebrated
Japanese yen, and British pound sterling. in various regions at various times of the year
• Together, the dollar and euro make up 70% of the depending on solar or lunar calendars.
basket’s value. • As per the solar calendar, the new year is
• The SDR basket is reviewed every five years, and celebrated during the spring harvest time on April
sometimes earlier if warranted. 13/14/15 as Vaisakhi or Baisakhi in north and central
o Reviews take place to ensure that the SDR India, Rongali Bihu in Assam, Tamil Putthandu in
reflects the relative importance of currencies in Tamil Nadu, Vishu in Kerala, Bishuva Sankranti in
the world’s trading and financial systems. Odisha and Poila Boishakh in Bengal.
Reserve Tranche • As per the lunar calendar, new year is celebrated in
• The IMF is funded through its members and their various parts of India during March/April. Ugadi is the
quota contributions. New Year's Day for the Hindus of Maharashtra,
• The reserve tranche is basically an emergency Andhra Pradesh, Karnataka and Telangana. Gudi
account that IMF members can access at any time Padwa is celebrated in Maharashtra, Goa and Konkan
without agreeing to economic reform conditions or belt as new year. Cheiraoba in Manipur, Navreh in
paying a service fee. Kashmir and Cheti Chand is celebrated by Sindhi
• In other words, a portion of a member country’s quota Hindus as new year. In Gujarat, Bestu Varas is
can be withdrawn free of charge at its own discretion. celebrated around October/November time as new
• The reserve tranches that countries hold with the IMF year.
are considered their facilities of first resort, meaning Difference Between the Lunar Calendar & the Solar
they will tap into them before seeking a formal credit Calendar
tranche that charges interest. • The difference between the lunar calendar and the
• 10 Countries with the Biggest Forex Reserves: solar calendar is the celestial body used to measure
China > Japan > Switzerland > Saudi Arabia > Russia the passage of time.
> Taiwan > Hong Kong > India > South Korea > Brazil • The lunar calendar uses the phases of the moon to
Already analysed in previous issues measure time, usually measuring the time from new
• POSCO pg 5 moon to new moon as one month.
• All UPSC relevant details about Lightning pg 9 • The time required for the Earth to rotate around the
• Chief of Defence Staff pg 10 Sun is one solar year.
• The solar calendar typically measures the time
between vernal equinoxes.
Some major harvest festivals of India
Baisakhi • Bhogi: Andhra Pradesh
• Baisakhi Festival falls on April 14th and marks the • Uttarayan: Gujarat, Associated with flying of
beginning of the solar year in Punjab. colourful kites.
• It is celebrated with lot of joy and enthusiasm in the
INDIA-BHUTAN
northern state of Punjab and Haryana. • Context: This is in the context of the visit of Indian
• Farmers are jubilant over the festival as for them Prime Minister to Bhutan.
Baisakhi marks the time for harvest of rabi crops. • Both countries jointly celebrated the Golden Jubilee
• Baisakhi has special significance for Sikhs as on this of the establishment of formal diplomatic relations last
day in 1699, their tenth Guru Gobind Singh Ji year.
organized the order of the Khalsa. Analysis
Bihu: Assam Mangdechhu hydroelectric Power Plant
• Bihu is the national festival of Assam celebrated three
• Indian PM inaugurated the Mangdechhu hydroelectric
times in a year, Maagh in January, Bohaag in April
power plant, one of the ten hydropower projects
and Kaati in October.
under Bhutan's initiative to generate 10,000 MW
• Rongali Bihu or Bohag Bihu is the major among the
hydropower by 2020 with the Indian government's
other and most popular Bihu festival celebrated as the
support.
Assamese New Year in mid April along with Spring
• The hydroelectric plant is a 720MW run-of-river power
season.
plant built on the Mangdechhu River and is developed
• Hareli and Cher-Chera: Chhattisgarh
by the Mangdechhu Hydroelectric Project Authority
(MHPA), which was jointly constituted by the Indian
and the Bhutanese governments.
RuPay Card
• Indian PM launched the RuPay Card in Bhutan.
• RuPay is a new card payment scheme launched by
the National Payments Corporation of India (NPCI).
Features:
• The orange and green arrows indicate a nation on
• Vishu and Onam: Kerala the move and a service that matches its pace.
✓ The ancient festival (Onam) has a significance of • The colour blue stands for the feeling of tranquility
homecoming of the legendary Emperor Mahabali which is the people must get while owning a card of
and harvest of rice and rain flowers in Kerala. the brand ‘RuPay’.
• Nuakhai/Nabanna: Orissa • The bold and unique typeface grants solidity to the
• Kut: By Kuki-Chin tribes of Manipur whole unit and symbolizes a stable entity.
• Tokhu Emong: By the tribes of Lotha Nagas.

Advantages of RuPay Card
• Pongal: Tamil Nadu
• Lower cost and affordability as the transaction o Pakistan opted out of the project saying it has its
processing will happen domestically. “own space programme”.
• Customized product offering: RuPay, being a o The initial proposal to name it as “SAARC
domestic scheme is committed towards development Satellite” was changed to South Asia Satellite
of customized product and service offerings for Indian following Pakistan’s refusal.
consumers. Multiple Tasks
• Protection of information related to Indian • The SAS is meant to promote tele-education, tele-
consumers: Transaction and customer data related medicine, television broadcasting, secured hotline,
to RuPay card transactions will reside in India. networking of academic research institutions, weather
• Provide electronic product options to forecasting, disaster monitoring and mapping of
untapped/unexplored consumer segment: Right natural resources, besides aiding with banking
pricing of RuPay products would make the RuPay services and governance among the South Asian
cards more economically feasible for banks to offer to countries.
their customers. In addition, relevant product variants • It also aims to strengthen cooperation among the
would ensure that banks can target the hitherto people of the seven countries.
untapped consumer segments. Difference between Geosynchronous Orbit and
• Inter-operability between payment channels and Geostationary Orbit
products. • A geosynchronous orbit is a High Earth Orbit that
South Asia Satellite (SAS or GSAT-9) allows satellites to match Earth's rotation.
• Indian PM inaugurated the Ground Earth Station and o More specifically, the time it takes for the Earth to
SATCOM network, developed with assistance from rotate on its axis is 23 hours, 56 minutes and
ISRO for utilization of South Asia Satellite in Bhutan. 4.09 seconds, which is the same as a satellite in
• The earth station will help drive various social a geosynchronous orbit.
services of the South Asia Satellite (SAS or GSAT-9).

• In a major gesture of regional diplomacy, the Indian
government in 2014 offered the services of a
dedicated communications satellite to its smaller
neighbours Afghanistan, Bangladesh, Bhutan, the
Maldives, Nepal and Sri Lanka.
• South Asia Satellite (GSAT-9) is a Geostationary
communication satellite built by ISRO to provide a
variety of communication services over the South • Located at about 35,786 km above Earth's equator,
Asian region. this position is a valuable spot for monitoring weather,
• For this, it is equipped with Ku-band transponders. communications and surveillance.
• It was launched by GSLV in May 2017 and placed into • Because the satellite orbits at the same speed that
its planned Geosynchronous Transfer Orbit (GTO). the Earth is turning, the satellite seems to stay in
• In the coming days, the satellite's orbit was raised place over a single longitude, though it may drift
from its present GTO to the final circular north to south.
Geostationary Orbit (GSO) by firing the • If you are an observer on the ground, you would see
satellite's Liquid Apogee Motor (LAM) in stages. the satellite as if it’s in a fixed position without
• Pakistan is not a part of the project as it had refused movement.
to accept India's offer.
o This makes geosynchronous satellites • Therefore, ‘every’ geostationary satellite is a
particularly useful for telecommunications and geosynchronous satellite, but it’s not (necessarily)
other remote sensing applications. true the other way round.
• At geosynchronous orbit, the “ring” around Earth can Semi-Synchronous Orbits
accommodate a number of satellites — 1,800 • Global Positioning System (GPS) satellites are in
altogether. another sweet spot known as semi-synchronous
• The International Telecommunication Union orbits.
assigns slots for geosynchronous orbit and settles • While geosynchronous orbits match the rotation of
disputes between countries about slots. Earth (24 hours), semi-synchronous orbits take 12
Geostationary Orbits hours to complete an orbit.
• While geosynchronous satellites can have any • Instead of 35,786 kilometers above the Earth’s
inclination, the key difference to geostationary orbit is surface, semi-synchronous orbits are approximately
the fact that they lie on the same plane as the equator, 20,200 kilometers above the surface. This puts them
otherwise, geostationary orbits fall in the same in the medium Earth orbit range out of the three
category as geosynchronous orbits. classes of orbits.
• These orbits are close to zero in eccentricity, meaning
they are near-circular.
o Eccentric orbits define how stretched orbits are.
The closer eccentricity is to zero, the more the
orbit closer to a circle. The closer to one, the
orbit becomes longer and skinnier.
Three Basic Orbits
• Satellites are designed to orbit Earth in one of three
basic orbits defined by their distance from the planet:
low Earth orbit (up to 2,000 km above the Earth’s
• Weather monitoring satellites are in geostationary surface: e.g. International Space Station), medium
orbits because they have a constant view of the same Earth orbit (from 2,000 km to 36,000 km) or high Earth
area. In a high Earth orbit, it’s also useful for search orbit (36,000 km and beyond).
and rescue beacons. • The higher a satellite is above Earth (or any other
• Here’s how both orbits compare: world for that matter), the slower it moves. This is
because of the effect of Earth's gravity; it pulls more
strongly at satellites that are closer to its center than
satellites that are farther away.
CHAR DHAM PROJECT

• Context: The Supreme Court has ordered the setting
up of an independent committee take a view on
whether the Centre’s ambitious 900 kilometre,
ambitious Char Dham project to improve road network
connecting pilgrimage spots in Uttarakhand, needs to
be “revised” to minimise its ecological damage.
• The project proposes the widening of single lane
roads into double lanes by up to 10 metres,
developing highways in Uttarakhand and thereby • At Rameshwaram, the main attraction is the
improving access to the Char Dham (four shrines) — Rameshwaram Temple whose presiding deity is Lord
Yamunotri, Gangotri, Badrinath and Kedar Nath. Shiva.
Analysis o He is present in “shiva-linga” form and is named
What is Char Dham Yatra? as Sri Ramanatha Swamy.
• The Char Dham Yatra comprises four holy sites • At Dwarka, the main attraction is the Dwarkadish
namely Badrinath, Puri, Rameshwaram, and Dwarka (Lord Krishna) Temple, also known as Jagat Temple.
located in four different directions of India. About Chota Char Dham
o Badrinath is in the North in Uttarakhand Region. • It consists of Badrinath, Kedarnath, Yamunotri, and
o Puri or Jagannath Puri is in the East in Odisha. Gangotri in the Garhwal part of Uttarakhand.
o Rameshwaram is in the South in Tamil Nadu. • The name “Chota” was added in the mid 20th Century
o Dwarka is in the West in Gujarat. to differentiate the original Char Dhams (comprising of
• Badrinath and Rameshwaram are located on the Badrinath, Rameshwaram, Dwarka, and Puri
same longitude while Puri and Dwarka on the Jagannath).
same latitude, representing the north, south, east and • The doorway to this holy journey is Yamunotri. Next
west points of India (before coastlines changed). destination in Chota Char Dham Yatra is Gangotri.
• Hindus believe that by completing the Char Dham After that, the pilgrims visit Kedarnath and finally
Yatra, one gets freed from all the sins did in the Badrinath Dham.
past and attains moksha or salvation. • In fact, the holy shrines of Chota Char Dham
• It is believed that Lord Vishnu meditates at Badrinath, represent all the three major sects of Hinduism.
takes his bath at Rameshwaram, dines at Puri, and • The Vaishnav shrine is located at Badrinath. The
retires at Dwarka. Shaiva temple is located at Kedarnath. The two
Char Dham and Adi Shankaracharya Shakta temples are at Gangotri and Yamunotri.
• Adi Shankaracharya founded four “Mathas” or
PREVENTION OF CORRUPTION ACT
monasteries as seats of Hindu religion at these four • Context: The Supreme Court is hearing a writ petition
holy places comprising the Char Dham. challenging the appointment of P.S. Golay alias Prem
• He founded the Sringeri matha in the south (on the Singh Tamang as Chief Minister of Sikkim.
Sringeri Hills), the Jyotir matha at Badrinath in the • The crux of the issue is that the 51-year-old leader of
north, the Sharada matha on the Dwarka coast in the the Sikkim Krantikari Morcha (SKM) could not have
West, and the Govardhan matha at Puri in the east. been appointed Chief Minister, as he is under a
Char Dham Hindu Temples subsisting disqualification.
• Each of the Char Dham sites (Badrinath, Dwarka, • Mr. Golay did not contest the Assembly election held
Rameshwaram, and Puri) holds many temples and this year, as he is barred from electoral contests after
religious monuments, including one important temple being convicted for corruption in 2016. He completed
as its main attraction. his prison term only in August 2018.
• At Badrinath, there is the Badrinath Temple whose • In view of his disqualification from elections for six
presiding deity is Shri Badrinath (Lord Vishnu).
years from the date of release, Mr. Golay could not
• At Puri, the main attraction is the Lord Jagannath have been appointed Chief Minister.
Temple whose presiding deity is Lord Jagannath. Analysis
o Lord Jagannath is considered a form of Lord • A person convicted under the Prevention of
Vishnu. Corruption Act is not eligible to contest an election
o He is seated with his brother Balabhadra and for six years from the date of release.
sister Subhadra.
• This is under Section 8(1)(m) of the Representation of • The format also precludes both India and Pakistan
the People Act, 1951. from participating.
Was he eligible to be appointed Chief Minister? • The UNSC has not yet put out a statement, but after
• Going by the law laid down by the Supreme Court the meeting India insisted that issues around Article
in B.R. Kapoor vs State Of Tamil Nadu (2001), Mr. 370 and special status to J&K were an internal matter.
Golay could not have been appointed Chief Minister. • The last time ‘The India-Pakistan Question’ was taken
• The Supreme Court had said that, “A person aspiring up by the UNSC was in December 1971 when India
to become a member of a state legislature, when he is and Pakistan fought a war leading to the creation of
appointed, is not debarred from obtaining membership Bangladesh.
of the legislature: he must be one who is qualified to • It had been discussed during the 1965 war too when
stand for the legislature and is not disqualified to do Indian and Pakistani forces clashed in Kashmir and
so.” the western borders.
Does Mr. Golay have any other option? • The Kashmir issue at the UN was discussed for the
• The Sikkim Chief Minister has approached the first time on January 1, 1948 as India urged the UNSC
Election Commission of India (ECI) for a waiver of the to discuss the conflict that had erupted three months
remaining period of his disqualification. earlier when Pakistan sent irregulars, tribals and
• Section 11 of the RPA says the ECI is empowered to camouflaged soldiers into Kashmir prompting the
remove any disqualification or reduce its duration for Maharaja of the princely Indian State to accede to
“reasons to be recorded”. India.
News in brief • The UNSC Resolution 47 urged India and Pakistan
Colour Codes to hold a plebiscite after restoration of law and order.
• There are four types of colour codes signifying the Why did the plebiscite plan fall through?
level of caution issued by Indian Meteorological • A key condition for the plebiscite was withdrawal of
Department (IMD): Pakistan from the areas under its control and India
o green (which means no action), withdrawing individuals who were not residents of the
o yellow (situation to be watched), State.
o amber (government agencies be prepared for • However, neither of this happened. Instead both sides
severe weather) and firmed up their presence in the areas under their
o red (action needed by the agencies). control.
Kashmir issue and UNSC What is the relevance of the Shimla Agreement to the
• The United Nations Security Council (UNSC) met on Kashmir issue?
August 16 to discuss Kashmir (India’s abrogation of • Under the Shimla Agreement of July 2, 1972, India
Article 370). gained Pakistan’s commitment that the Kashmir
• The Presidency of the UNSC is currently with Poland. conflict would be resolved bilaterally.
• The Kashmir discussion was taken up under the • Pakistan, however, kept the issue alive by hosting the
closed consultations format. Islamic Summit of 1974 where Pakistan began
o Consultations are a way for Security Council courting the Islamic world for its major foreign policy
members to informally take up an issue and the goals.
“closed” refers to the fact that the consultation is Gravity Stretches Light
not open to the public and no record of • General relativity, unlike Newtonian theory of gravity,
statements is kept. predicts that when light passes close to a strong
• The consultations on Kashmir were scheduled on a gravitational field it will undergo a shift towards longer
request from China. wavelengths.
• In 1905, Albert Einstein determined that the laws of • Fermi’s Large Area Telescope detects gamma rays
physics are the same for all non-accelerating from Moon, which appears blurred with a prominent
observers, and that the speed of light in a vacuum glow at its centre.
was independent of the motion of all observers. This Juno Spacecraft pg 20
was the theory of special relativity. • Juno is a NASA spacecraft exploring the planet
• It proposed new concepts of space and time. Jupiter.
• Einstein published his theory of general relativity in • Juno launched from Earth in 2011 and reached
1915. In it, he determined that massive objects Jupiter in 2016.
cause a distortion in space-time, which is felt as • Juno could see through the clouds of Jupiter.
gravity. • Juno is an "orbiter" i.e. it flies around, or orbits, the
• Einstein's theory of general relativity predicted that the Jupiter.
space-time around Earth would be not only warped • Juno will orbit Jupiter's north and south poles for
but also twisted by the planet's rotation. about one year. One trip around Jupiter takes Juno
about 14 days.
• Juno will study Jupiter's atmosphere. Juno will take
the first pictures of Jupiter's poles.
• Juno will help scientists understand how Jupiter was
made.
• Juno gets its power from the sun.
• UAPA ACT pg 10
• India's Nuclear Doctrine pg 11
• Yemen Crisis pg 12
• The Nobel Prize in Physics 1921 was awarded to
Albert Einstein "for his services to Theoretical • Hong Kong Protests pg 12
Physics, and especially for his discovery of the • Afghan Peace talks pg 12
law of the photoelectric effect" and not for his
theory of relativity.
• If receiving a Nobel prize is the highest recognition for
ANTI-MICROBIAL RESISTANCE
• Context: Treating drug-resistant tuberculosis —
a scientist, being awarded twice by the Swedish
multidrug-resistant TB (MDR-TB) and extensively
Academy of Sciences is an extraordinary fact of
drug-resistant TB (XDR-TB) — got a shot in the arm
which, until now, only four people can
on August 14 when the U.S. Food & Drug
boast: Frederick Sanger, Linus Pauling, John
Administration (FDA) approved a new drug
Bardeen and Marie Curie.
Pretomanid.
Brighter than the Sun
Analysis
• When seen in the light of gamma rays, the Moon
• Pretomanid is only the third new anti-TB drug
would appear brighter than the Sun, as imaged by
approved for use by FDA in more than 40 years to
NASA’s Fermi Gamma-ray Space Telescope.
treat TB bacteria.
• Gamma rays are a part of the electromagnetic
• The drug was developed and tested in clinical trials by
spectrum having short wavelengths and are highly
New York-based non-profit organisation TB Alliance.
energetic.
o In 2019, TB Alliance became the first not-for-
profit organization to develop and register an
antibiotic.
• It has also provided data to the World Health • In an effort to curb antibiotic resistance, the World
Organisation (WHO) for consideration of inclusion in Health Organization (WHO) has divided the drugs into
treatment guidelines for highly drug-resistant TB. three categories — access, watch and reserve —
What makes the new drug so promising? specifying which are to be used for common ailments
• The duration of treatment for drug-resistant TB can be and which are to be kept for complicated diseases.
drastically cut from 18-24 months to just six-nine o Access: Commonly used antibiotics will be under
months when pretomanid drug is used along with two the ‘access’ category.
already approved drugs — bedaquiline and linezolid. o Watch: The second line of antibiotics, slightly
• The all-oral, three-drug regimen can also vastly more potent, have been categorised under
improve the treatment success rate to nearly 91% and “watch”.
potentially decrease the number of deaths due to o Reserve: Potent drugs to be used only as a “last
better adherence to treatment. resort” fall under the ‘reserve’ category.
Which category of drug-resistant TB patients will Red Line Campaign
benefit from this new drug?
• Pretomanid drug along with bedaquiline and linezolid
is meant for treating adults with XDR-TB.
• In the case of MDR-TB, the three-drug regimen
containing pretomanid can be used only in those
patients who cannot tolerate the MDR-TB treatment or
do not respond to standard MDR-TB treatment
regimen.
• The three-drug regimen is meant only for treating • India’s Red Line campaign, launched in February
pulmonary TB and should not be used for treating 2016, involves marking prescription-only antibiotics
extra-pulmonary TB, drug-sensitive or latent TB. with a red line to curb their irrational use and create
When are bacteria said to be “resistant”? awareness on the dangers of taking antibiotics without
• Bacteria are said to be “resistant” being prescribed.
to antimicrobial product if they • Some of the major factors which are contributing
survive concentrations that would kill most bacteria of to the increasing incidences of anti-microbial
the same species. resistance in India are:
• Totally drug resistant TB (sometimes referred to as o Indiscriminate use of antibiotics by patients;
XXDR TB or extremely drug resistant TB), is TB which o Mass bathing during cultural events;
is resistant to all the first and second line TB o Excessive use of antibiotics in the livestock
drugs.1 This makes it almost but not totally impossible industry;
to treat. o Unchecked discharge of effluents by the
• Extensively drug-resistant TB (XDR TB) is a rare pharmaceutical industry.
type of multidrug resistant (MDR) TB that is resistant End TB Strategy
to isoniazid and rifampin, plus any fluoroquinolone • The End TB Strategy aims to end the global TB
and at least one of three injectable second-line drugs. epidemic, with targets to reduce TB deaths by 95%
Superbugs and to cut new cases by 90% between 2015 and
• It is a term used to describe strains of bacteria that 2035, and to ensure that no family is burdened with
are resistant to the majority of antibiotics commonly catastrophic expenses due to TB.
used today. • It is being implemented by the World Health
World Health Organization Organisation.
Colistin Government / e-Governance applications up to
• The Ministry of Health and Family Welfare recently the grassroots level as well as a promoter of
issued an order prohibiting the manufacture, sale and digital opportunities for sustainable
distribution of colistin and its formulations for food- development.
producing animals, poultry, aqua farming and animal • National Knowledge Network (NKN) project is aimed
feed supplements. at establishing a strong and robust 'Smart Ultra High
• The move is a “massive victory” for the movement Bandwidth' Indian network which will be capable of
against anti-microbial resistance. providing secure and reliable connectivity.
• Colistin is a valuable, last-resort antibiotic that saves • In India, NKN with its multi-gigabit capability aims to
lives in critical care units and in recent years, medical connect all universities, research institutions, libraries,
professionals have been alarmed by the number of laboratories, healthcare and agricultural institutions
patients who have exhibited resistance to the drug. across.
Toothpastes contribute to antibiotic resistance • The leading mission oriented agencies in the fields of
• Why? Because of the presence of triclosan, a nuclear, space and defence research are also part of
compound used in more than 2,000 personal care NKN.
products. • NKN is a protocol independent network and is
• How? When different strains of bacteria are exposed designed to carry multiprotocol traffic.
to an antimicrobial, those that have resistance • NKN design, implementation, management, and
genes survive while the others are killed. Over time, control is such that service provisioning is internal to
this can lead to the selective survival the NKN network and does not depend on telecom
of resistant strains, and to an increase of resistance. service providers from whom “raw” bandwidth or fiber
99DOTS is leased.
• Microsoft has developed a programme called • NKN design supports Multicast enabled VPN for
99DOTS to help TB patients to complete their course running Multicast applications, both in IPv4 and IPv6.
of medicines. Role of NKN
• It can be utilized either as a supplement to existing • Establishing a high-speed backbone connectivity
DOTS programs, or to enable remote observation of which will enable knowledge and information sharing
doses administered by patients or their family amongst NKN connected institutes;
members. • Enabling collaborative research, development and
innovation amongst NKN connected institutes;
NATIONAL KNOWLEDGE NETWORK (NKN)
• Context: India’s National Knowledge Network and • Facilitating advanced distance education in
Bhutan’s Druk Research and Education Network got specialized fields like engineering, science, medicine
interconnected. etc.;
Analysis • Facilitating an ultra-high speed e-governance
• In March 2010, the Cabinet Committee on backbone;
Infrastructure (CCI) approved the establishment of the • Facilitating integration of different sectoral networks in
the field of research, education, health, commerce
National Knowledge Network (NKN), to be
implemented by National Informatics Centre (NIC) and governance;
over a period of 10 years. • Link to Global Networks to collaborate with the
o National Informatics Centre (NIC), under the research communities across the globe.
Ministry of Electronics and Information

Technology (MeitY), was established in 1976,
and has since emerged as a “prime builder” of e-
ODISHA TO CONSERVE TWO OF ITS LARGEST • It is a register of wetland sites on the List of Wetlands
LAKES (Pg 6, The Hindu) of International Importance where changes in
• Context: Odisha has approved implementation of an ecological character have occurred, are occurring, or
integrated management plan for Chilika, country’s are likely to occur as a result of technological
largest brackish water lagoon, and Ansupa, State’s developments, pollution or other human interference.
largest freshwater lake. • It is maintained as part of the Ramsar List.
Analysis • The Montreux Record was established by
Chilika Lake Recommendations of the Conference of the
• Chilika is a shallow lagoon with estuarine character Contracting Parties (1990).
in Odisha. • Sites may be added to and removed from the
o Lagoons are areas of relatively shallow, quiet Record only with the approval of the Contracting
water situated in a coastal environment and Parties in which they lie.
having access to the sea but separated from the • Currently, two wetlands of India are in Montreux
open marine conditions by a barrier. record viz. Keoladeo National Park, Rajasthan and
o An estuary is a partially enclosed coastal body Loktak Lake, Manipur.
of brackish water with one or more rivers or Ansupa Lake
streams flowing into it, and with a free connection • Ansupa is also the wintering ground for migratory
to the open sea. Estuaries form a transition zone birds.
between river environments and maritime • The lake is sustained from the freshwater supply
environments. during the rainy season from the Mahanadi river.
• It is the largest brackish water lagoon in India. News in brief
o Pulicat Lake is the second largest brackish water Taliban via-a-vis IS pg 14
lake or lagoon in India, after Chilika Lake. • 63 killed in Kabul in a blast claimed by Islamic State.
• The Daya and Bhargavi rivers feed the lake. • The wedding was largely a gathering of Shia Muslims,
• Seawater is Chilika's lifeblood. Without a regular
who are frequently targeted in Sunni-majority
inflow, the lake ecosystem would decline.
Afghanistan, particularly by IS.
• It is the largest wintering ground for migratory
• Taliban and IS are sharply divided over ideology and
waterfowl found anywhere on the Indian sub-
tactics, with Taliban largely confining itself to attacks
continent.
on government targets and Afghan and international
• The endangered Irrawaddy dolphins are also found in
security forces.
the lake, which is the single largest habitat of this
• The two have also fought each other on a number of
species in the world.
occasions.
• On account of its rich bio-diversity and ecological
Serious Fraud Investigation Office (SFIO) pg 4
significance, Chilika was designated as the 1st
• It is a statutory body and has been established by the
"Ramsar Site" of India.
Government using the powers conferred by the
• The Nalaban Island within the lagoon is notified as a
Companies Act, 2013.
Bird Sanctuary under Wildlife (Protection) Act.
• It is a multi-disciplinary organization under Ministry of
• The lake was included in the Montreux Record
Corporate Affairs, for detecting and prosecuting or
(threatened list) in 1993 due to change in its
recommending for prosecution white-collar
ecological character by Ramsar Convention but was
crimes/frauds.
later removed from it due to the successful restoration
o White collar crime basically means the crime
of the site.
committed by the educated people belonging to a
Montreux Record under the Ramsar Convention
higher class of society during the course of their • There are 10 States that contribute to 70 per cent of
occupation. the total e-waste generated in the country, while 65
• Under any of the following circumstances, cities generate more than 60 per cent of the total e-
investigation into the affairs of a company is assigned waste in India.
to Serious Fraud Investigation Office (SFIO) by the • Among the 10 largest e-waste generating States,
Government: Maharashtra ranks first followed by Tamil Nadu,
1. On receipt of report of the Registrar or Inspector of Andhra Pradesh, Uttar Pradesh, West Bengal,
the company. Delhi, Karnataka, Gujarat, Madhya Pradesh and
2. On intimation of a special resolution passed by a Punjab.
company requesting an investigation into its affairs. • Among the top ten cities generating e-waste, Mumbai
3. In public interest. ranks first followed by Delhi, Bengaluru, Chennai,
4. On the request of any Department of Central Kolkata, Ahmadabad, Hyderabad, Pune, Surat and
Government or State Government. Nagpur.
No First Use pg 10 • The main sources of electronic waste in India are the
• India is one of two countries — China being the other government, public and private (industrial) sectors,
— that adheres to a doctrine of No First Use (NFU). which account for almost 70 per cent of total waste
Already analysed in previous issues generation. The contribution of individual households
• India's Nuclear Doctrine pg 10 is relatively small at about 15 per cent; the rest being
• Hong Kong Protests pg 14 contributed by manufacturers.
• Afghan Peace talks pg 14 • The State of Tamil Nadu has made the first move to
come up with a separate e-waste policy in the country
• Iran-Britain-Gibraltar Issue pg 14
and the policy of collection of electronic waste by
• Marginal Cost of funds based Lending Rate
community- based organizations (CBOs).
(MCLR) pg 15
• By 2050, India will likely stare at a pile of a new
THE HINDU ANALYSIS 20th AUGUST 2019 category of electronic waste, namely solar e-waste.
E-WASTE Currently, India’s e-waste rules have no laws

• Context: Over 50 illegal e-waste units sealed. mandating solar cell manufacturers to recycle or
Analysis dispose waste from this sector.
Components of e-waste E-Waste Management Rules, 2018
• The composition of e-waste is diverse and falls under • These rules are one of the six categories of waste
‘hazardous’ and ‘non-hazardous’ categories. management rules brought out by the Ministry of
• Iron and steel constitute about 50% of the waste, Environment, Forest and Climate Change (MoEFCC),
followed by plastics, non-ferrous metals and other as it has earlier notified plastic, bio-medical, solid-
constituents. waste, hazardous and construction and demolition
• Non-ferrous metals consist of metals like copper, waste management rules.
aluminium and precious metals like silver, gold, Salient Features
platinum, palladium and so on. • For the first time, the Rules will bring the producers
• The presence of elements like lead, mercury, under Extended Producer Responsibility (EPR), along
arsenic, cadmium, selenium, hexavalent with targets.
chromium, and flame retardants beyond threshold • As per the new rules, the Central Pollution Control
quantities make e-waste hazardous in nature. Board (CPCB) was given the overall responsibility of
E-waste generation in India ensuring that firms complied with the power to levy
fines for non compliance.
• The new rules specified that producers would have to • The nicotine in e-cigarettes and regular cigarettes is
ensure collection of 10% of the quantity of e-waste addictive.
generation during 2017-18, with a 10% increase every • The evidence so far indicates that e-cigarettes are
year until 2023 and 70% from 2023 onwards. safer than combustible cigarettes.
• The new E-waste rules include Compact Fluorescent o Because they heat a liquid to generate a
Lamp (CFL) and other mercury containing lamps. nicotine-containing aerosol, instead of burning
• Like earlier Rules, exemption continues for micro tobacco, they do not produce toxic tars.
enterprises. • However, that doesn’t mean they are completely safe.
o However small enterprises, have been included o At high temperatures, e-cigarettes produce
in the rules for responsibility as manufacturer, carcinogens such as formaldehyde, although
without burdening them with EPR responsibility these are fewer in number compared to regular
as applicable to Producers. cigarettes.
• Unlike earlier Rules, collection of waste is now o They also increase the odds of lung disease
exclusively Producer’s responsibility. and myocardial infarction, have adverse
• Deposit Refund Scheme has been introduced as an effects on the development of the foetus
additional economic instrument. during pregnancy and may contribute to
o Under it the producer charges an additional cardiovascular disease, but to a lesser extent
amount as a deposit at the time of sale of the than normal cigarettes do.
electrical and electronic equipment and returns it o Nicotine is used as a direct substance in e-
to the consumer along with interest when the cigarettes and the content ranges up to 36
end-of-life electrical and electronic equipment is mg/mL. Although regular cigarettes too have
returned. nicotine, it is in the range of 1.2 to 1.4 mg/mL.
• Health care facilities which have turnover of more • Even though warnings on many ENDS products
than one crore or have more than twenty employees clearly indicate that they are not a ‘smoking cessation
have been included. product’, e-cigarettes are often promoted that way.
• Further, the industry claims that the sale of ENDS
E-CIGARETTES products does not violate any regulations despite the
• Context: To strengthen enforcement of the ban on
fact that the companies are in clear violation of
production and sale of electronic cigarettes, the
WHO’s Framework Convention on Tobacco Control,
Karnataka government has notified nictoine as
which prohibits the sale of any product that appeals to
Class A poison.
minors.
• Generally, highly toxic chemicals, which even in very
• Hence, the Central Government is looking to ban e-
small quantities as gas or vapour in the air are
cigarettes in India on the grounds that they are
dangerous to life (such as cyanogen, hydrocyanic
"drugs".
acid, nitrogen peroxide, and phosgene), are notified
o At least 12 states in India have already banned
under Class A.
Electronic Nicotine Delivery Systems (ENDS).
Analysis
• However, the product cannot be banned under the
• E-cigarettes, also known as electronic nicotine
Cigarettes and Other Tobacco Products Act.
delivery systems (ENDS), aim to resemble
• After much deliberation, experts opined that e-
cigarettes, but without burning tobacco.
cigarettes and similar products would fall under the
• E-cigarettes are considered tobacco products
definition of drug under the Drugs and Cosmetics Act,
because most of them contain nicotine, which comes
1940 (DCA).
from tobacco.
• "ENDS, including e-cigarettes, heat-not burn devices, • The SASEC program was formed in 2001 in response
vape, e-sheesha, e-nicotine, flavoured hookah, and to the request of the four countries of South Asia –
similar products, are used as a tobacco (especially Bangladesh, Bhutan, India and Nepal – from ADB to
smoking forms such as cigarettes) cessation product, assist in facilitating economic cooperation among
and functions for nicotine delivery for reasons, them.
including nicotine de-addiction. Hence, these • These four countries comprise the South Asia
devices and products fall under the definition of Growth Quadrangle (SAGQ), formed in 1996, as a
"drug" in the Drugs and Cosmetics Act." vehicle for accelerating sustainable economic
• After the health ministry’s advisory, the Ministry of development through regional cooperation.
Electronics and Information Technology (MEITY) had • As a project-based partnership, the SASEC program
also proposed an amendment to the Information has been helping realize regional prosperity by
Technology (Intermediary Guidelines) Rules, 2018 to enhancing cross-border connectivity, facilitating
ban the advertisement of e-cigarettes. faster and more efficient trade and promoting cross-
border power trade.
BANGLADESH-BHUTAN-INDIA-NEPAL (BBIN)
• Maldives and Sri Lanka joined SASEC in 2014 and
MOTOR VEHICLES AGREEMENT (MVA)
• Context: An editorial. Myanmar in 2017.
Analysis G7
Bangladesh-Bhutan-India-Nepal (BBIN) Motor • Context: India will attend the outreach session of the
Vehicles Agreement (MVA) G7 meet at Biarritz, France, where India is a special
• It was signed in June 2015. invitee.
• The Asian Development Bank (ADB) has been • India also said that it remains politically committed to
providing technical, advisory, and financial support to the completion of the Jaitapur nuclear power project,
the BBIN MVA initiative as part of its assistance to the which is being built in partnership with France.
South Asia Sub-regional Economic Cooperation Analysis
(SASEC) program. G7
• SASEC program is a projects-based economic • G7 consists of Canada, U.S., U.K., Italy, France,
cooperation initiative that brings together the BBIN Germany and Japan – the seven largest advanced
countries, Maldives, Sri Lanka and more recently, economies.
Myanmar. • Earlier it was G-8 when Russia was suspended from
• ADB is the secretariat of SASEC. it because of Russia's annexation of Crimea, a part of
Problems Ukraine.
• Recently, the Bhutanese government withdrew the Bill • They have 62% of the global wealth.
to ratify the pact. • They represent 46% of the global GDP.
• Right from the time the BBIN MVA was tabled for
UN SECURITY COUNCIL AND INDIA
ratification, the draft legislation faced opposition in
• Context: Despite repeated assertions of its right to a
Bhutan.
permanent seat at the UN Security Council, India’s
• Why? Bhutanese suspicion has been that the pact to
campaign for expansion of the UNSC has slowed
streamline movement of passenger and cargo
down, available official statements suggest.
transport among the four countries will overwhelm the
Analysis
smallest country in South Asia with traffic, tourists and
What is the Security Council?
pollution.
South Asia Sub-regional Economic Cooperation
(SASEC) Program
• The United Nations Charter established six main • It also travelled to many cities, holding sessions in
organs of the United Nations, including the Security Addis Ababa, Ethiopia, in 1972, in Panama City,
Council. Panama, and in Geneva, Switzerland, in 1990.
o The United Nations has six principal organs: the • A representative of each of its members must be
General Assembly, the Security Council, the present at all times at UN Headquarters so that the
Economic and Social Council, the Trusteeship Security Council can meet at any time as the need
Council, the International Court of Justice, and arises.
the Secretariat. Permanent and Non-Permanent Members
• It gives primary responsibility for maintaining • The Council is composed of 15 Members:
international peace and security to the Security • Five permanent members: China, France, Russian
Council, which may meet whenever peace is Federation, the United Kingdom, and the United
threatened. States, and ten non-permanent members elected
• According to the Charter, the United Nations has four for two-year terms by the General Assembly (with end
purposes: of term year):
o to maintain international peace and security; o Belgium (2020)
o to develop friendly relations among nations; o Côte d’Ivoire (2019)
o to cooperate in solving international problems o Dominican Republic (2020)
and in promoting respect for human rights; and o Equatorial Guinea (2019)
o to be a centre for harmonizing the actions of o Germany (2020)
nations. o Indonesia (2020)
• While other organs of the United Nations make o Kuwait (2019)
recommendations to member states, only the Security o Peru (2019)
Council has the power to make decisions that o Poland (2019)
member states are then obligated to implement o South Africa (2020)
under the Charter. Membership and Election
Maintaining Peace And Security • Each year the General Assembly elects five non-
• When a complaint concerning a threat to peace is permanent members (out of 10 in total) for a two-year
brought before it, the Council’s first action is usually to term.
recommend that the parties try to reach agreement by • The 10 non-permanent seats are distributed on a
peaceful means. regional basis as follows:
• Beyond this, the Council may opt for enforcement o five for African and Asian States;
measures, including: o one for Eastern European States;
o economic sanctions, arms embargoes, financial o two for the Latin American and Caribbean States;
penalties and restrictions, and travel bans; and
o severance of diplomatic relations; o two for Western European and other States.
o blockade; or Non-Council Member States
o even collective military action. • More than 60 United Nations Member States have
Organization never been Members of the Security Council.
• Since its first meeting in London, the Security Council • A State which is a Member of the United Nations but
has taken permanent residence at the United Nations not of the Security Council may participate, without a
Headquarters in New York City. vote, in its discussions when the Council considers
that country's interests are affected.
Security Council Presidency
• The presidency of the Council is held by each of the Exchange plastic waste for free meal!
members in turn for one month, following the English • The Municipal Corporation of Ambikapur, in Surguja
alphabetical order of the Member States names. district of Chhattisgarh, in a bid to spread awareness
India and UNSC of curbing plastic use, feed the homeless and
• By winning the unanimous endorsement of the 55- ragpickers, and empower poor women, is going to
nation Asia-Pacific Group at the United Nations open a cafe soon where a kg of plastic waste will
Security Council, India has cleared an important fetch one a full meal, half a kg will get one a breakfast.
hurdle in its quest for a non-permanent seat for 2021 Navarro Recession
and 2022. • The term ‘Navarro recession’ was recently coined in
• The decision of the grouping this week was taken as the U.S. media, and highlights the manner in which
India was the sole candidate for the post. misguided trade and currency policies by the current
• In the next step, all 193 members of the UN General U.S. administration, guided by economist Peter
Assembly will vote for five non-permanent seats in Navarro, may be creating distortions in the economy,
June 2020, when India will need to show the leading to a slowdown.
support of at least 129 countries to go through to • Apparently, U.S. President Donald Trump overruled
the UNSC. all his economic advisers but Mr. Navarro in
• It will then occupy the seat at the UNSC for a two-year imposing new tariffs on China.
period, as it has previously on seven occasions • This begs the broader question of whether economies
since 1950-51, it had ended its previous tenure in across the world are in turmoil because of the rise of
2011-2012. the ‘Navarros’, with trained economists taking
• India has served as a non-permanent member of the unconventional policy positions that undermine
United Nations Security Council (UNSC) more often market expectations and scholarly evidence on free
than any country other than Japan from the Asia- markets.
Pacific Group. NTPC to set up 5,000 MW solar park in Kutch
• By rotation, that seat would have reached India only in • State-owned NTPC is planning to set up 5,000 mega
the 2030s, and India had to reach out to watt (MW) ultra mega solar park (UMSP) in Kutch,
Afghanistan, which had put in its bid already for Gujarat.
the 2021-22 slot, to request it to withdraw. • This move is aimed at scaling up the renewable
Afghanistan did so because of the special relationship portfolio of India’s largest power producer.
between the two countries. • Of NTPC’s 55,786 MW capacity, only about 900 MW
• UN General Assembly (UNGA) had passed a comes from solar.
resolution for expanding the UNSC in a landmark Do you know?
decision in 2015. • Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI),
• India claims a seat at the UNSC because of multiple a public sector company under Department of Atomic
factors such as: Energy (DAE) is constructing one 500 MW Prototype
o population, Fast Breeder Reactor (PFBR) at Kalpakkam, Tamil
o growing economic stature and Nadu. The design and construction of PFBR is
o growing global responsibilities like peacekeeping. fully indigenous.
• Permanent member countries such as the U.K., the • Decreasing order of electricity produced in India from
U.S., Russia and France have expressed support different sources is: coal > hydro > natural gas >
bilaterally without actively collaborating with India in solar and wind > biofuels > nuclear > oil.
the UN for expanding the council.
News in brief
• Total installed capacity in decreasing order is: fossil have more than that will see their population
fuels > renewables (including small hydro) > large continue to rise.
hydro > nuclear. o For India, the effective replacement level
• India loses about 18% of production to transmission. fertility is slightly higher than the normal
• India has five electricity grids – Northern, Eastern, benchmark due to the skewed gender ratio and
North-Eastern, Southern and Western. All of them are is at 2.15-2.2.
interconnected. All are run by the state-owned Power • There is a marked difference between urban and rural
Grid Corporation of India Ltd (PGCI). areas and urban India's fertility rate reached the
Already analysed in previous issues replacement level in 2007.
• India's Nuclear Doctrine pg 10 • Although average total fertility (rate) for the whole
• Hong Kong Protests pg 14 country is 2.3 births per woman, it is above 3.0 in
• Afghan Peace talks pg 14 the states of Uttar Pradesh, Bihar and Madhya
Pradesh.
• Iran-Britain-Gibraltar Issue pg 14
o Bihar had the highest in India of 3.3 children per
• National Register of Citizens pg 1
woman, followed by Uttar Pradesh with 3.1.
• Vector borne diseases pg 2
• About 24 States and Union Territories in India have
• National disaster Response Force pg 6 achieved the total fertility rate (TFR) of 2.1% (or even
• Polavaram pg 8 below).
• Chandrayaan 2 pg 9 o Below replacement level has been noted in
• US-Iran tensions pg 14 Jammu and Kashmir, Himachal Pradesh, Delhi,
• Marginal Cost of funds based Lending Rate Punjab, Andhra Pradesh, Telangana, Keerala,
(MCLR) pg 15 Karnataka, Maharashtra, West Bengal etc.
• And by 2031, all States are likely to see below
THE HINDU ANALYSIS 21st AUGUST 2019
replacement level fertility.
TOTAL FERTILITY RATE (TFR) • The 6 states that have TFR in excess of the
• Context: An article. Pg 11 replacement level of 2.1 are UP, Bihar, Jharkhand,
Analysis Rajasthan, MP and Chhattisgarh.
• It is forecast that the population rate will grow less • The TFR has also been declining across most States.
than 1% from 2021 to 2031 and under 0.5% from • While TFR in rural areas remains higher than in urban
2031 to 2041. areas, it has been declining at a faster rate than the
o This is primarily due to the fall in the total fertility latter, according to National Family Health Survey.
rate (TFR), which is projected to decline between • Among the bigger States, J&K and Delhi registered
20212041 and fall below replacement level the biggest drop in TFR (in % terms) from 2007 to
fertility at 1.8 as early as 2021. 2017, while Kerala and Tamil Nadu showed no
• TFR is defined as the total number of children born or change.
likely to be born to a woman in her lifetime at the • India's population growth rate peaked between 1961
prevailing rate of age-specific fertility. and 1971 and has been falling since.
• Population stabilisation is said to be achieved at a • Between 2001 and 2011, increase in population was
TFR of 2.1 because a population just replaces itself at highest in Bihar followed by J&K and Chhattisghar
that rate or begin to decline. while it is lowest in Kerala, followed by West Bengal
o If women in a nation or a region or a group have and Punjab.
fewer than 2.1 children each, its population will News in brief
go down over time, while those whose women Chandrayaan-2
• A nerve-wracking 30-minute manoeuvre performed • Difference between National Clean Air Programme,
from the Indian Space Research Organization’s National Air Quality Index and Air Quality Monitoring
Mission Operations Complex ensured that Programme (NAMP) and SAFAR pg 3
Chandrayaan-2, the Indian lunar lander-rover • One Nation One Card Scheme pg 6
spacecraft, slid precisely into its planned orbit around • M-sand pg 9
its destination: the moon.
• The Lunar Orbit Insertion was carried out at from
the ISRO Telemetry, Tracking and Command FOUR NEW PRODUCTS GET GI TAG
• Context: The Geographical Indication (GI) under the
Network (ISTRAC).
Department for Promotion of Industry and Internal
Currency Notes Disability Friendly
Trade (Ministry of Commerce & Industry) has
• A Bench of the Delhi High Court directed RBI to file an
recently registered 4 new GIs.
affidavit on how it was going to make currency
• Palani Panchamirtham from Palani Town in Dindigul
notes of ₹50 and lower values easily identifiable
District of Tamil Nadu, Tawlhlohpuan and Mizo
by the visually impaired.
Puancheifrom from the state of Mizoram and Tirur
• RBI said that notes of ₹100 and higher denomination
Betel leaf from Kerala are the latest additions to the
were identifiable by touch, but not the ones of lower
list of registered GIs.
denominations. It said the smaller denominations can
Analysis
be identified by their smaller dimensions.
Palani Panchamirtham
• Currently, intaglio printing-based identification marks
• Palani Panchamirtham, an 'Abishega Prasadam' from
are present in banknotes of Rs 100 and above for
Palani Town is one of the main offerings in the
helping the visually challenged identify them.
Abisegam of Lord Dhandayuthapani Swamy, the
• The old notes of Rs 500 and Rs 1,000 had a 10
presiding deity of Arulmigu Dhandayuthapaniswamy
millimetre difference, either in width or length, and
Temple, situated in Palani Hills, in Dindigul District of
this was great for us to identify. The new set of notes
Tamil Nadu.
has reduced this difference.
• It is a combination of five natural substances, namely,
• Objections to the dimensions of the recently
banana, jaggery sugar, cow ghee, honey and
introduced Rs 50 and Rs 200 notes have also been
cardamom in a definite proportion.
raised. While the difference between the blue Rs 50
• It is prepared in a natural method without addition of
note and the orange Rs 200 note is only 4 mm, it
any preservatives or artificial ingredients and is well
should ideally be at least 10 mm.
known for its religious fervour and gaiety.
• Marking lines on the notes, including the bleed lines,
• This is the first time a temple ‘prasadam’ from Tamil
are not perceptible enough and fade with frequent use.
Nadu has been bestowed with the GI tag.
• The lack of standardisation of different coins adds to
Tawlhlohpuan
the confusion.
• Tawlhlohpuan is a handmade medium to heavy,
Khorasan
compactly woven, good quality fabric from Mizoram.
• Islamic State Khorasan (IS-K) is the Islamic State’s
Mizo Puanchei
province in eastern Afghanistan's Nangarhar.
• Mizo Puanchei, a colourful Mizo shawl/textile.
• It is an essential possession for every Mizo lady and
an important marriage outfit in the state.
• Enforcement Directorate pg 1
• It is also the most commonly used costume in Mizo
• Anti defection law pg 3
festive dances and official ceremonies.
• The weavers insert the designs and motifs by using • It promotes economic prosperity of producers of
supplementary yarns. goods produced in a geographical territory.
Tirur Betel Is a registration of a geographical indication
• Tirur betel vine from Kerala, which is mainly cultivated compulsory and how does it help the applicant?
in Malappuram District, is valued both for its mild • Registration is not compulsory.
stimulant action and medicinal properties. • Registration affords better legal protection to facilitate
What is a Geographical Indication? an action for infringement.
• A Geographical Indication (GI) is primarily an • The registered proprietor and authorised users can
agricultural, natural or a manufactured product initiate infringement actions.
(handicrafts and industrial goods) originating from a • The authorised users can exercise the exclusive right
definite geographical territory. to use the geographical indication.
o The manufactured goods should be produced or How long the registration of Geographical Indication
processed or prepared in that territory. is valid?
• Typically, such a name conveys an assurance of • The registration of a geographical indication is valid
quality and distinctiveness, which is essentially for a period of 10 years
attributable to the place of its origin. Can a registered geographical indication be assigned,
• #LetsTalkIP is a social media campaign to promote transmitted, etc?
Indian GIs. • No. A geographical indication is a public property
• The Cell for IPR Promotions & Management (CIPAM) belonging to the producers of the concerned goods.
under the aegis of the Department of Industrial Policy • It shall not be the subject matter of assignment,
Promotion (DIPP), Ministry of Commerce and Industry, transmission, licensing, pledge, mortgage or such
has also launched “Gift a GI” campaign to help in other agreement
branding and promotion of registered GI products. • However, when an authorised user dies, his right
• The Intellectual Property Appellate Board (IPAB) devolves on his successor in title.
currently exercises jurisdiction over Trademarks, How a geographical indication is different from a
Patents, Geographical Indications and Copyright trade mark?
Cases. • A trade mark is a sign which is used in the course of
• The IPAB has its headquarters at Chennai. trade and it distinguishes goods or services of one
• The Intellectual Property Appellate Board (IPAB) was enterprise from those of other enterprises.
established by the Central Government under the • Whereas a geographical indication is an indication
Trademarks Act 1999. used to identify goods having special characteristics
• A GI registration gives the registered proprietor and originating from a definite geographical territory.
authorised users the legal right to the exclusive use GI LOGO, TAGLINE LAUNCH
of the GI, and no unauthorised person can use the
tag.
What is the benefit of registration of geographical
indications?
• It confers legal protection to Geographical Indications
in India
• Prevents unauthorised use of a Registered
Geographical Indication by others
• It provides legal protection to Indian Geographical
Indications which in turn boost exports.
• A logo and tagline for Geographical Indications (GI)
has been launched to increase awareness about
intellectual property rights (IPRs) in the country.
• Odisha recently got a Geographical Indications (GI)
tag for its variant of the rasagola.
• Odisha's rasagola comes under the food category
which includes other famous items such as the
Tirupathi laddu, Hyderabad haleem, Dharwad pedha
and Bikaneri bhujia.
Geographical Spread
• Karnataka has the highest number of GI-tagged
products.
• However, when geographical area is factored in,
Kerala has the highest.
• Sarees and fabrics have been given the highest
number of GI-tags, followed by specialised crafts, rice,
mango etc.
• While Tamil Nadu has the highest number of
handicraft GIs, Maharashtra leads in the number of
GI-tagged agricultural products.
India has given GIs to foreign products:

• Scotch Whisky-Scotland
• Champagne Cognac-France
• Prosciutto di Parma (cheese), Parmigiano-Reggiano
(cheese), Prosecco (Wine)-ITALY
• Porto (Wine),Douro (Wine)-Portugal
• Napa Valley (Wine)-US
• Tequila Pisco (brandy)-Peru
ALL ABOUT AADHAAR

• Context: A group of petitioners had approached the
Madras High Court with a prayer of linking social
media profiles of registered users with their Aadhaar
numbers on the ground that many people got away
with inflammatory posts on social media because of
the lack of traceability.
• However, the Division Bench of the Madras High
Court did not see merit in the idea.
• The Bench had during the hearings observed that
following the Supreme Court’s decision in the
Aadhaar case, the unique 12-digit-number can be
used only for subsidies and welfare benefits; and
pointed out that Section 57 of the Aadhaar Act has
been struck down to the extent that it authorised body • Aadhaar can be used as a permanent Financial
corporate and individuals to use the number to Address and facilitates financial inclusion of the
establish someone’s identity. One petition on similar underprivileged and weaker sections of the society
matter has reached the Supreme Court. and is therefore a tool of distributive justice and
• After the K.S. Puttaswamy decision (2017) in the equality.
‘privacy’ case, any state intervention in the regulation • The Aadhaar identity platform is one of the key pillars
of online content has to pass the test of proportionality of the ‘Digital India’, wherein every resident of the
laid down by the court. country is provided with a unique identity.
• The right to privacy is protected as an intrinsic part • The Aadhaar programme has already achieved
of the right to life and personal liberty under several milestones and is by far the largest
Article 21 and as a part of the freedoms biometrics based identification system in the world.
guaranteed by Part III of the Constitution. Resident Indians
Difference between Aadhaar and PAN • To qualify as a resident Indian, an individual should
Aadhaar have spent 182 days or more of a financial year in
• Aadhaar number is a 12-digit random number issued India, or stayed in India for 60 days or more in the
by the UIDAI to the residents of India after satisfying year and for a period of 365 days or more in the 4
the verification process laid down by the Authority. years preceding the relevant financial year.
• Any individual, irrespective of age and gender, who is • If an individual does not satisfy any of the above
a resident of India, may voluntarily enrol to obtain conditions, she will be considered a non-resident in
Aadhaar number. India.
• Person willing to enrol has to provide minimal • The Aadhaar-Based Biometric Authentication
demographic and biometric information during the (ABBA) system calls for the following
enrolment process which is totally free of cost. technological necessities (which villages lack):
Demographic information o uninterrupted power supply,
• Name, Date of Birth (verified) or Age (declared), o a functioning electric point of sale (PoS) machine,
Gender, Address, Mobile Number (optional) and o adequate mobile and Internet connectivity and
Email ID (optional) o ensuring that data repository servers are running
Biometric information smoothly.
• Ten Fingerprints, Two Iris Scans, and Facial Aadhaar Virtual ID (VID)
Photograph • The Aadhaar Virtual ID (VID) is a temporary,
• An individual needs to enrol for Aadhaar only once revocable 16-digit random number mapped with the
and after de-duplication only one Aadhaar shall be Aadhaar number.
generated, as the uniqueness is achieved through • The Aadhaar Virtual ID (VID) allows to authenticate
the process of demographic and biometric de- transactions and e-know-your-customer (KYC)
duplication. services instead of providing Aadhaar number.
• Aadhaar number is devoid of any intelligence and • One's Aadhaar number cannot be derived from the
does not profile people based on caste, religion, VID that is generated.
income, health and geography. • The virtual ID can be used for the purpose of
• Aadhaar number is blocked on the death of the authentication in the same way the Aadhaar number
holder. is used.
• The Aadhaar number is a proof of identity, however, • Since this is a digital ID, Aadhaar holders can
it does not confer any right of citizenship or domicile in regenerate it multiple times, which makes it safer than
respect of an Aadhaar number holder. providing the actual Aadhaar number.
• At present, the VID is valid for a minimum of one day, • Permanent Account Number (PAN) is a code issued
which means an Aadhaar holder would be able to re- by the Department of Income Tax under the
generate a new VID a day after he has generated the supervision of the Central Board of Direct Taxes.
first one. • It is a 10-digit number-and-alphabet combination
• Further, there is no expiry period defined yet for the and is unique to each individual.
VID and it will be valid till the time a new one is • The first ever such card was issued in 1964.
generated by the Aadhaar number holder. • This number enables the department to monitor
Unique Identification Authority of India (UIDAI) financial transactions of the holder.
• It is a statutory authority established under the • It also helps the Income Tax department to keep track
provisions of the Aadhaar Act, 2016 under the of the tax paid or evaded by an individual.
Ministry of Electronics and Information Technology • It is also issued to foreign nationals such as
(MeitY). investors.
• Prior to its establishment as a statutory authority, • Minors can also obtain PAN card (Last year, a five-
UIDAI was functioning as an attached office of the day-old Bihar girl became the youngest PAN card
then Planning Commission (now NITI Aayog). holder in the country).
• Later, the Government revised the Allocation of • It also serves as an identity proof.
Business Rules to attach the UIDAI to the • The Income Tax Act permits one person to have only
Department of Electronics & Information one PAN.
Technology (DeitY) of the Ministry of • Fifth character of PAN represents the first character of
Communications and Information Technology. the PAN holder’s last name/surname in case of an
Cannot share Aadhaar data for crime probe individual.
• The Unique Identification Authority of India • In case of non-individual PAN holders fifth character
(UIDAI) asserted that use of Aadhaar biometric data represents the first character of PAN holder’s name.
for criminal investigation is not allowed under the News in brief
Aadhaar Act. Kutch was once a sub-tropical forest
• The “very limited” exception to this, said UIDAI, is • The hot arid desert of Kutch was once a humid
allowed under Section 33 of the Aadhaar Act, which sub-tropical forest a team of Indian and French
permits use of or access to biometric data in cases researchers has said.
involving national security, only after pre- • Their conclusions are based on the discovery of a
authorisation by an oversight committee headed by tranche of vertebrate fossils (from Palasava village
the Cabinet Secretary. of Rapar taluk in Kutch, Gujarat) from nearly 14
Baal Aadhaar million years ago in a geological time period known as
• UIDAI has introduced a blue coloured ‘Baal Aadhaar’ the Miocene.
card for children below the age of 5 years. NISHTHA
• Blue coloured Aadhaar data does not include • It stands for National Initiative for School Heads' and
biometric information like fingerprints and iris scan. Teachers' Holistic Advancement (NISHTHA).
• It is not mandatory for children under 5 to get an • It is an initiative of the Human Resource Development
Aadhaar card. However, it is needed for attending Ministry and is “the world’s largest teacher training
educational programmes overseas and availing of programme”.
government scholarships. • Under this programme, more than 42 lakh teachers
Permanent Account Number (PAN) and principals of primary and elementary-age
government schools across the country will undergo
a five-day training programme over the next few
months to learn innovative teaching methods, the • Availability of the drugs are being monitored through
use of art and technology in the classroom and Drug and Vaccine Distribution Management
basic counselling techniques. System (DVDMS).
SEBI simplifies norms for foreign investors • DVDMS is a web-based Supply Chain Management
• At a time when foreign investors have been selling System that deals in purchase, supply, distribution
Indian shares in huge quantum, the Securities and and inventory management of various drugs, sutures,
Exchange Board of India (SEBI) has simplified the surgical and consumable items.
compliance and operational requirements for foreign • It has an in-built provision of monitoring and checking
portfolio investors (FPIs), to make the regulatory the availability of medicine at all facilities at district
framework more investor friendly. and state level.
• The SEBI board decided to do away with the • Moreover, it has the functionality for distribution of
requirement that every FPI should have at least 20 drugs to patients, thus enabling tracking of
investors — known as broad-based in regulatory consumption till last mile.
parlance — while simplifying the KYC (or Know-Your- • With an objective of making quality generic medicines
Customer) document requirement for overseas available at affordable prices to all, Pradhan Mantri
investors. Bhartiya Jan Aushadhi Pariyojana (PMBJP) was
• The regulator has also allowed central banks of launched by the Department of Pharmaceuticals,
countries that are not members of Bank for Ministry of Chemicals & Fertilizers.
International Settlement (BIS) to register as FPIs in National Health Mission
India since, as per SEBI, such entities are “relatively • The National Health Mission (NHM) envisages
long term, low risk investors directly/indirectly achievement of universal access to equitable,
managed by the government”. affordable & quality health care services.
Already analysed in previous issues • The National Health Mission seeks to ensure the
• UAPA pg 11 achievement of the following indicators:
• Greenland pg 14 o Reduce Maternal Mortality Rate (MMR) to 1/1000
live births;
THE HINDU ANALYSIS 23rd AUGUST 2019
o Reduce Infant Mortality Rate (IMR) to 25/1000
NATIONAL HEALTH MISSION live births;
• Context: The National Health Mission has given first
o Reduce Total Fertility Rate (TFR) to 2.1;
rank to Rajasthan in the implementation of its 'free
o Prevention and reduction of anemia in women
medicine scheme'.
aged 15–49 years;
Analysis
o Prevent and reduce mortality & morbidity from
• Public health being a State subject, the number of
communicable, non-communicable, injuries and
essential medicines to be provided free of cost is
emerging diseases
decided by the States and varies from State to
o Reduce household out-of-pocket expenditure on
State.
total health care expenditure;
• However, under the National Health Mission (NHM),
o Reduce annual incidence and mortality from
financial and technical support is provided to the
Tuberculosis by half;
States/UTs for strengthening their healthcare delivery
o Reduce prevalence of Leprosy to <1/10000
system including support for provision of essential
population and incidence to zero in all districts;
drugs free of cost to those who access public health
o Annual Malaria Incidence to be <1/1000;
facilities.
o Less than 1 per cent microfilaria prevalence in all
districts;
o Kala-azar Elimination by 2015, <1 case per o the requirements of economic development,
10000 population in all blocks. security and law and order.
Members
FSOC TECHNOLOGY
• Context: DM of Andhra Pradesh's East Godavari • Each ZC consists of the following members:
district was honoured for innovative thinking to bring o Home Minister of Central government;
telecom connectivity to remote villages using Google o Chief Ministers of all the States in the zone;
X's FSOC technology. o Two other ministers from each State in the zone
nominated by the Governor; and
• Recently, Google has also signed an agreement with
o Administrator of each union territory in the zone.
the AP government to share FSOC technology for
• Besides, the following persons can be associated with
Andhra's fiber grid.
the ZC as advisors (i.e., without the right to vote in the
Analysis
meetings):
• Free Space Optical Communications, aka FSOC, use
o a person nominated by the Planning
beams of light to deliver high-speed, high-capacity
Commission;
connectivity over long distances — just like fiber optic
o chief secretary of the government of each state
cable, but without the cable.
in the zone; and
• With a clear line of sight, data can be transmitted
o development commissioner of each state in the
between FSOC units kilometers apart on roofs or
zone.
towers, with the signal beamed directly between the
• The Home Minister of the Central government is
boxes to easily traverse common obstacles like rivers,
the common chairman of the five zonal councils.
roads and railways.
• Each chief minister acts as a vice-chairman of the
Project Loon of Google
council by rotation, holding office for a period of one
• Loon is a network of balloons travelling on the edge of
year at a time.
space, delivering connectivity to people in unserved
Role and Functions of the ZCs
and underserved communities around the world.
• The ZCs aim at promoting cooperation and
ZONAL COUNCILS coordination between states, UTs and the Centre.
• Context: Union Home Minister chaired the meeting of • They discuss and make recommendations regarding
Western Zonal Council. matters like economic and social planning, linguistic
Analysis minorities, border disputes, inter-state transport, and
• The ZCs are statutory (and not the Constitutional) so on.
bodies. • They are only deliberative and advisory bodies.
• They are established under the States • The main objectives of setting up of ZCs are as under:
Reorganisation Act, 1956 of the Parliament. o Bringing out (emotional) national integration;
• The Act divided the country into five zones (Northern, o Arresting the growth of acute State
Central, Eastern, Western and Southern) and consciousness, regionalism, linguism and
provided a ZC for each zone. particularistic tendencies;
Formation of Zones o Enabling the Centre and the States to co-operate
• While forming these zones, several factors have been and exchange ideas and experiences;
taken into account which include: o Establishing a climate of co-operation amongst
o the natural divisions of the country; the States for successful and speedy execution
o the river systems and means of communication; of development projects.
o the cultural and linguistic affinity; and • Each ZC is an advisory body and may discuss any
matter in which some or all of the States
represented in that Council, or the Union and one or • Its functions are similar to those of the ZCs, but with
more of the States represented in that Council, have a few additions.
common interest and advise the Central Government • It has to formulate a unified and coordinated regional
and the Government of each State concerned as to plan covering matters of common importance.
the action to be taken on any such matter. • It has to review from time to time the measures taken
• In particular, a ZC may discuss, and make by the member states for the maintenance of security
recommendations with regard to: and public order in the region.
o any matter of common interest in the field of
OXYTOCIN
economic and social planning; • Context: The Supreme Court referred to a larger
o any matter concerning border disputes, linguistic Bench a batch of petitions challenging a government
minorities or inter-State transport; notification banning private companies from
o any matter connected with or arising out of, the manufacturing Oxytocin, a first line drug administered
re-organization of the States under the States to save the lives of young mothers suffering from
Reorganisation Act.
excessive bleeding immediately after childbirth.
• The present composition of each of these Zonal • At the centre of the controversy is an April 2018
Councils is as under: notification issued by the Centre under the Drugs and
o The Northern Zonal Council, comprising the Cosmetics Act, 1940 restricting the manufacture of
States of Haryana, Himachal Pradesh, Jammu &
Oxytocin for domestic use by public sector
Kashmir, Punjab, Rajasthan, National Capital undertakings only.
Territory of Delhi and Union Territory of • The trigger for the notification was clandestine
Chandigarh, with headquarters at New Delhi; manufacture of the drug and its misuse by dairy
o The Central Zonal Council, comprising the owners on milch animals to artificially extract milk.
States of Chhattisgarh, Uttarakhand, Uttar Analysis
Pradesh and Madhya Pradesh, with What is Oxytocin?
headquarters at Allahabad; • Oxytocin, also known as the ‘love hormone’, is a
o The Eastern Zonal Council, comprising the hormone secreted by the pituitary glands of
States of Bihar, Jharkhand, Orissa, Sikkim and mammals during sex, childbirth, lactation or social
West Bengal, with headquarters at Kolkata; bonding.
o The Western Zonal Council, comprising the • However, it can also be chemically manufactured and
States of Goa, Gujarat, Maharashtra and the is sold by pharma companies.
Union Territories of Daman & Diu and Dadra & • It is administered either as an injection or a nasal
Nagar Haveli, with headquarters at Mumbai; solution.
o The Southern Zonal Council, comprising the Why is it vital?
States of Andhra Pradesh, Karnataka, Kerala, • Oxytocin helps contract the uterus and induce delivery,
Tamil Nadu and the Union Territory of control bleeding, and promote the release of breast
Puducherry, with headquarters at Chennai. milk.
North-Eastern Council
• Its use is especially crucial to prevent new mothers
• The North Eastern States i.e. (i) Assam (ii) from excessively bleeding after giving birth—a
Arunachal Pradesh (iii) Manipur (iv) Tripura (v) common cause of maternal deaths.
Mizoram (vi) Meghalaya (vii) Nagaland and (viii) What is the problem?
Sikkim have their own ZC created by a separate Act • Oxytocin is a hormone drug.
of Parliament - the North Eastern Council Act, 1972. • Oxytocin is used by farmers to make vegetables look
bigger and fresher.
• Oxytocin is used by dairy owners to boost milk • Eastern Economic Forum is an international forum
production. held each year in Vladivostok, Russia, for the purpose
• Misuse of Oxytocin is leading to early sterility in milch of encouraging foreign investment in the Russian Far
animals. East.
• It is a Schedule H drug-these are drugs which cannot • Indian Prime Minister will visit the city as the guest of
be purchased over the counter without the honour at Eastern Economic Forum (EEF) in
prescription of a qualified doctor. September, where he is expected to announce
India’s plans to invest in Russia’s Far East.
SEBI’S LIBERALISED NORMS FOR FPIS
• Context: Foreign investors who have been fleeing the • Here, the Far East has the potential to become an
country since the Union budget presented early last anchor in deepening India-Russia cooperation; more
month have something to cheer about finally. so considering that New Delhi has expanded the
• Capital in excess of ₹20,000 crore has left Indian scope of its ‘Act East policy’ to also include Moscow.
shores in the last few weeks after Finance Minister Act East Policy
• The Objective of ''Act East Policy” is to promote
Nirmala Sitharaman’s budget decision to increase
taxes on FPIs. economic cooperation, cultural ties and develop
Analysis strategic relationship with countries in the Asia-
• The Securities and Exchange Board of India (SEBI), Pacific region through continuous engagement at
bilateral, regional and multilateral levels thereby
based on the recommendations of the H.R. Khan
committee, eased several regulatory restrictions. providing enhanced connectivity to the States of North
• Among a slew of measures, the financial markets Eastern Region including Arunachal Pradesh with
regulator has simplified the registration process for other countries in our neighbourhood.
FPIs by doing away with the broad-based eligibility o While India’s earlier Look East Policy was driven
criteria, which required a minimum of at least 20 by economic interests, the Act East Policy is
investors in a foreign fund, and certain documentary driven by economic and security interests.
requirements. o While Look East Policy was limited to South East
o FPIs can now also engage in the off-market sale Asia but Act East Policy is extended to both
of their shares with fewer restrictions. South East Asia and East Asia as well.
• Further, SEBI has allowed entities registered at an BELT AND ROAD INITIATIVE (BRI)
international financial services centre to be • Context: An editorial. pg 11
automatically classified as FPIs. Analysis
• Mutual funds with offshore funds too can invest in
• China’s Belt and Road Initiative (BRI) seeks to
India as FPIs to avail certain tax benefits now.
expand maritime routes and land infrastructure
• Central banks that are not members of the Bank of
networks connecting China with Asia, Africa, the
International Settlements are also allowed to register
Middle East and Europe.
as FPIs and invest in the country under the new
• The Belt and Road initiative, announced by China in
norms.
September 2013, has two main prongs: one is
• Smart cities, along with other urban development
called the ‘Silk Road Economic Belt’ (the belt) and the
agencies, will now be allowed to issue municipal
other the ‘21st Century Maritime Silk Road’ (the road).
bonds to raise funds for development.
• The ‘Belt’ is a series of overland corridors, consists of
EASTERN ECONOMIC FORUM rail routes, highways, oil and gas pipelines and other
• Context: An editorial. pg 10. infrastructure projects extending from Xian in Central
Analysis
China through Central Asia, Russia, West Asia and • Experts blame the fires on illegal loggers who have
Europe. been burning newly cleared land for cattle ranching
o There is also a branch extending from Kashgar in and agricultural use.
Xinjiang to Gwadar in Balochistan via Pakistan • Brazil has seen massive deforestation since Jair
occupied Kashmir (PoK). Bolsonaro, the country's far-right President, assumed
• The ‘Road’ is not actually a road but rather a sea office early this year.
route linking China’s southern coast to east Africa and Analysis
the Mediterranean. • The Amazon rainforest is a wet broadleaf forest that
• India’s objection to the China-Pakistan Economic takes up the majority of the South America’s Amazon
Corridor (CPEC) is that it runs through parts of basin.
Pakistan Occupied Kashmir, and this has led to the • This rainforest covers an area of 2,123, 561.8 square
Indian government’s decision to stay away from the miles.
summit. • Because of its vast biodiversity, it stands to be the
world’s largest rainforest.
INDIA'S TWO-PLUS-TWO DIALOGUE • Many rivers including the Amazon River crisscross the
MECHANISM
forest.
• Context: Indian and U.S. officials have gathered in
California for the 2+2 inter-sessional and the Maritime
Security Dialogue.
• During the intersessional, the two sides will discuss
ways to advance cooperation on critical diplomatic
and security priorities, including our shared vision of a
free and open Indo-Pacific region, and review
preparations for the next 2+2 Ministerial Dialogue.
Analysis
• India has institutionalised the two-plus-two dialogue
mechanism with Australia, Japan and U.S.
• The two-plus-two dialogue involves the discussion
among the defence and foreign secretaries/ministers
of the two participating countries.
• India hosted the inaugural round of the two-plus-two
dialogue with the United States in September 2018.
The ministerial-level meeting will cover bilateral,
regional and global issues.
• The dialogue will be led by External Affairs Minister
and Defence Minister from the Indian side and the
Secretary of State and Secretary of Defence from the
U.S.
AMAZONE RAINFOREST pg 14
• Context: There have been an unprecedented
increase in fire incidences in Brazil.
• The Amazon rainforest spreads across nine • Mr. Bolsonaro also refused to host the annual
countries namely Brazil (64%), Peru (10%), convention of the UN Framework Convention on
Colombia (6%), Bolivia (6%), Venezuela (6%), Climate Change (COP 25) this year, allegedly due to
Guyana (3%), Suriname (2%), Ecuador (2%) and budgetary constraints and the handover to the new
French Guiana (1%). government on 1 January 2019 but the real reason
is the increasing international criticism of Brazil
for the exploitation of Amazon rainforest.
• Now it will be held in Santiago, Chile.
• Fiji and Poland were the Presidents of COP 23 and
COP 24 respectively.
• Brazil is also trying to shut down the initiatives such
as the billion-dollar Amazon Fund backed by
Norway and Germany, which has been operating for
over a decade.
Amazon Fund
• The Amazon Fund is a REDD+ mechanism created
to raise donations for non-reimbursable investments
in efforts to prevent, monitor and combat deforestation,
as well as to promote the preservation and
sustainable use in the Brazilian Amazon.
• Deforestation in the Amazon rainforest in Brazil is What is REDD+?
increasing rapidly since January 2019, when Jair • The Climate Change Conference in Bali, in December
Bolsonaro took office as President. 2007, opened the possibility of developing an
incentive mechanism for “reducing emissions from delays in exports of items like auto parts and
deforestation and forest degradation; and the role of household electronics to South Korea.
conservation, sustainable management of forests and • South Koreans are displaying their anger by
enhancement of forest carbon stocks in developing boycotting Japanese beer and clothing brands as well
countries” (REDD+). as travel to the country.
• REDD+ is a mechanism developed by Parties to the • The South Korean government is looking into
United Nations Framework Convention on Climate removing Japan’s preferred trade partner status and
Change (UNFCCC). potentially creating a new low-tier category just to
• It creates a financial value for the carbon stored in isolate the country from future benefits, a downturn in
forests by offering incentives for developing countries a relationship that is already tainted by a painful
to reduce emissions from forested lands and invest in history of Japanese colonialism.
low-carbon paths to sustainable development. • South Korea also said it will scrap an intelligence-
• Developing countries would receive results-based sharing pact with Japan.
payments for results-based actions. • The arrangement was designed to share sensitive
• REDD+ goes beyond simply deforestation and forest information on the threat posed by North Koreas
degradation and includes the role of conservation, missile and nuclear activities, and the decision to end
sustainable management of forests and enhancement it comes after North Korea launched a series of short-
of forest carbon stocks. range ballistic missiles in protest against what it sees
• In addition to mitigating climate change, REDD+ can as military build-ups in South Korea and Japan.
support livelihoods, maintain vital ecosystem services • The General Security of Military Information
and preserve globally significant biodiversity. Agreement (GSOMIA) was due to be automatically
renewed, unless either side decided to cancel it.
SOUTH KOREA AND JAPAN TRADE WAR
• Context: South Korea and Japan are embroiled in a • The decision also comes as China and Russia have
bitter trade war that could have consequences for a been more assertive in the region, flying their first joint
global economy that is already suffering from another military air patrol together in July, which triggered an
trade war between the US and China. international incident with South Korea and Japan.
Analysis • The trade war is more about historic grievances than
• Last month, Japan announced it would tighten control national security. South Korea was subject to Japan’s
over three chemicals — fluorinated polyamides, colonial rule from 1910 to 1945.
photoresists, and hydrogen fluoride — that are crucial • Last year, South Korea’s Supreme Court ruled that
to producing semiconductors in Korea. Japanese companies must compensate the victims of
• Semiconductors, a key material installed in most forced labour who served Japan during the colonial
electronic devices, have long been Korea’s top export rule.
item, and a delay in their productions could pose a

START-UPS
significant threat to its economy. • Context: The Central Board of Direct Taxes (CBDT)
• Japan claimed it was setting such restrictions clarified that start-ups with an annual turnover of up to
because it believed South Korea was leaking ₹25 crore will continue to get a tax holiday as
sensitive information to North Korea for military specified in the Income Tax Act.
applications, although they did not provide details. • The clarification comes in the wake of considerable
• After South Korea vehemently denied the accusations, confusion in the industry following a circular in
Japan slapped down another trade restriction:
February by the Department for Promotion of Industry
removing South Korea from its “white list,” an index of
trusted trade partners. This would lead to even more
and Internal Trade (DPIIT) that defined start-ups as • Gross fixed capital formation (GFCF) refers to the net
having a turnover of up to ₹100 crore. increase in physical assets (investment minus
What is a Start-Up? disposals) within the measurement period.
• A start-up company means a private company • Physical assets: Plant, machinery, construction of
incorporated under the Companies Act, 2013 and roads, railways, private residential dwellings, and
recognised as a “start-up” in accordance with the commercial and industrial buildings etc.
notification issued by the Department of Industrial • It does not account for the consumption
Policy and Promotion, under the Ministry of (depreciation) of fixed capital, and also does not
Commerce and Industry. include land purchases.
• The DIPP notification has defined a start-up as an • It is essentially net investment.
entity that is incorporated or registered in India. • It is a component of the Expenditure method of
• Furthermore, a company must meet the following calculating GDP.
criteria to be considered eligible for DPIIT start-up • The gross capital formation in India is about 28.6% of
recognition. the GDP.
• Company Age • A greater part of this capital formation in case of India
o Period of existence and operations should not be happens in the private sector and a smaller part
exceeding 10 years from the Date of happens in the public sector.
Incorporation. o In the public sector, a much smaller part happens
• Company Type in the government.
o Incorporated as a Private Limited Company, a o The larger part happens by the public sector
Registered Partnership Firm or a Limited Liability companies.
Partnership. Incremental Capital Output Ratio (ICOR)
• Annual Turnover • Capital output ratio is the amount of capital needed to
o Should have an annual turnover not exceeding produce one unit of output.
Rs. 100 crore for any of the financial years since • Thus, COR = investment as % of GDP/the economic
its Incorporation. growth corresponding to this level of investment.
• Original Entity • But don’t forget that the investment say in the form of
o Entity should not have been formed by splitting machineries will remain there for around ten or twelve
up or reconstructing an already existing business. years. Such a machinery will be giving one unit of
• Innovative & Scalable output in every year.
o Should work towards development or What is Incremental Capital Output Ratio (ICOR)?
improvement of a product, process or service • Another variant of capital output ratio is Incremental
and/or have scalable business model with high Capital Output Ratio (ICOR).
potential for creation of wealth & employment • ICOR basically refers to the additional capital required
• Meanwhile, in a move that provides a major relief to to generate one unit of additional output.
budding entrepreneurs, the government also ruled o For example, if the 10% additional capital is
that start-ups can avail tax concessions if the funds required to push the overall output by a percent,
they raise, including from angel investors, do not the ICOR will be 10.
exceed Rs 10 crore. • The utility of ICOR is that with more and more
News in Brief investment, the capital output ratio itself may change
Terms in news pg 10 and hence the usual capital output ratio will not be
Gross fixed capital formation useful.
• Lower the ICOR, the better it is. ICOR reflects how • Fedor blasted off in a Soyuz MS-14 spacecraft at
efficiently capital is being used to generate additional 6:38 am Moscow time (0338 GMT) from Russia's
output and technological progress. So a country Baikonur cosmodrome in Kazakhstan.
with ICOR of 3 is better than a country with ICOR of 5. Already analysed in previous issues
• The calculation of ICOR is based on certain • Polavaram Project, Concept of National Project pg 8
assumptions such as: • National Register of Citizens; Foreign Tribunals; RIIN
o there is no diminishing return to capital, etc. pg 10
o there is no lag between investment, and • India's Nuclear Doctrine pg 11
o production and there is full capacity utilization. • Chandrayaan 2 pg 22
Gross Domestic Saving
• Gross Domestic Saving is GDP minus final
consumption expenditure. It is expressed as a UNIFORM CIVIL CODE (UCC)
• Context: The All India Muslim Personal Law Board
percentage of GDP.
has moved the Delhi High Court opposing a petition
• Gross Domestic Saving consists of savings of:
seeking framing of a Uniform Civil Code (UCC).
o household sector,
Analysis
o private corporate sector, and
• Article 44 of the Directive Principles in the
o public sector.
Constitution says the “State shall endeavour to
• Gross domestic savings had followed a downward
provide for its citizens a uniform civil code (UCC)
trajectory after 2008.
throughout the territory of India.”
• The more concerning issue is the perceptible shift of
• The objective of this endeavour should be to address
investors’ preference towards physical assets as
the discrimination against vulnerable groups and
compared to financial assets.
harmonise diverse cultural practices.
• This can be attributable to a rise in inflationary
• Dr. Ambedkar had said a UCC is desirable but for the
pressures.
moment should remain voluntary.
• Gross capital formation is a function of gross domestic
How did it come about?
savings.
• The Constituent Assembly lacked the consensus on
• Gross Domestic Savings indicates the financial state
what a potential uniform civil code would entail.
and growth of the country, as household saving is the
• While many thought the UCC would coexist alongside
main source of government borrowing to fund public
the personal law systems, others thought that it was
services.
to replace the personal law.
• India's Gross Savings Rate was measured at 30.5 %
• There were yet others who believed that the UCC
in Mar 2018.
would deny the freedom of religion.
• The Central Statistical Organisation (CSO) has been
• It was this uncertainty that led it to be included in the
preparing the estimates of the gross domestic savings
Directive Principles of State Policy rather than the
of the country as a ratio of GDP at market prices.
chapter on Fundamental Rights in the Constitution.
Russia sends its first humanoid robot Fedor into
Why does it matter?
space
• The codification of personal laws have historically
• Russia launched an unmanned rocket carrying a life-
generated protests. The Hindu Code Bill, one of the
size humanoid robot that will spend 10 days learning
foremost pieces of social legislation, had triggered
to assist astronauts on the International Space Station.
enormous opposition.
• Named Fedor, short for Final Experimental
• The debate on the UCC is centred on the argument to
Demonstration Object Research, the robot is the
replace individual personal customs and practices of
first ever sent up by Russia.
marriage, divorce, adoption and successions with a • Codification of various practices and customs would
common code. make them ‘law’ under Article 13 of the Constitution.
• Those in favour of one code argue that it will end • Any ‘law’ that comes under Article 13 should be
discrimination in religions. consistent with the fundamental rights, the Law
• Detractors contend that it will rob the nation of its Commission has reasoned.
religious diversity and violate the fundamental right • This would protect the plurality of religions, too, and
to practise religion enshrined in Article 25 of the may be the way forward for the near future.
Constitution. • In fact, the Law Commission has suggested in no
• In fact, they hold that a state action to introduce the uncertain terms that the UCC is “neither necessary
UCC is against the quintessence of democracy. The nor desirable at this stage in the country.”
secular state is, after all, an enabler of rights rather • It said a unified nation does not necessarily need to
than an inhibitor in sensitive matters of religion and have “uniformity.”
personal laws.
COMPOSITE WATER MANAGEMENT INDEX
What next?
(CWMI)
• Legal experts say that the Supreme Court missed an • Context: The second Round of Composite Water
opportunity to decide on the issue in 2017 when it Management Index (CWMI 2.0) was released by the
outlawed triple talaq without addressing the core NITI Aayog.
issue: whether personal law practices should prevail • CWMI 2.0 ranks various states for the reference year
over the fundamental rights of life, dignity and non- 2017-18 as against the base year 2016-17.
discrimination. Analysis
• In the Shah Bano case, the court lamented that Major Findings
Article 44 remained a “dead letter.” Chances are • Gujarat, though it dropped a point, topped the
that it may continue to remain so. rankings for the second year in a row with a score of
The way forward 75 out of a maximum possible 100.

• In one of its consultation papers, the Law Commission • Gujarat was followed by Andhra Pradesh, Madhya
chose codification of personal laws over the UCC as a Pradesh, Goa, Karnataka and Tamil Nadu.
way to end discrimination within religions.
• In North Eastern and Himalayan States, Himachal o 4. watershed development (10%)
Pradesh has been adjudged number 1 in 2017-18 o 5. participatory irrigation management (10%)
followed by Uttarakhand, Tripura and Assam. o 6. on-farm water use (10%)
• In terms of incremental change in index (over 2016-17 o 7. rural drinking water(10%)
level), Haryana holds number one position in general o 8. urban water supply and sanitation (10%)
States and Uttarakhand ranks at first position o 9. policy and governance (15%).
amongst North Eastern and Himalayan States. • According to the Composite Water Management
• The Union Territories have first time submitted their Index, 70% of the water resources in India are
data and Puducherry has been declared as the top polluted.
ranker. • In February 2018, NITI Aayog had also released a
• Delhi and Puducherry were the only Union Territories report on “Healthy States, Progressive India” which
included in the rankings. covered the ranking of States/ UTs in various health
• Delhi has finished at the bottom of the Composite parameters.
Water Management Index.
PAKISTAN BLACKLISTED
o A key reason for Delhi’s lacklustre performance • Context: After being greylisted at the Financial Action
was that it did not provide data for several Task Force (FATF) plenary earlier, Pakistan now put
indicators. on the “blacklist” of the FATF’s Asia affiliate, the Asia-
• Delhi also ranked second in the list of 20 largest
Pacific Group (APG), that concluded its meetings in
water-stressed cities in the world in 2015. Canberra, Australia in August 2019.
• A key recommendation by the NITI Aayog for Delhi Analysis
was to establish an integrated data centre for water • While the two processes are separate, the APG
resources that could help institutionalise these blacklisting, or ‘Enhanced Expedited Follow Up’ status,
practices. which requires it to report on a quarterly basis,
• Thirteen of the 27 States and Union Territories have would also make the Pakistani government’s next
improved their water management practices from last steps, as it faces FATF reviews for being in the
year. greylist in September and October, much more
Composite Water Management Index (CWMI) challenging.
• Keeping in view the criticality of water for life, NITI • The upcoming Paris plenary of FATF will decide
Aayog has prepared a report on Composite Water whether to remove Pakistan from the greylist,
Management Index (CWMI). continue the listing, or downgrade it to a blacklist of
• It is an important tool not only to assess but also to non-cooperative countries.
improve the performance of States/ Union Territories • Officials said the downgrade might not occur, given
in efficient management of water resources. that any three countries in the FATF can veto it, and
• For the purposes of analysis, the reporting states Pakistan is likely to secure the backing of China,
were divided into two special groups – ‘North Turkey and Malaysia. However, the APG decision on
Eastern and Himalayan states’ and ‘Other States’, to Friday would make it difficult for Pakistan to extricate
account for the different hydrological conditions
itself from the greylist.
across these groups. • While the placing does not bring any new punitive
• The Index comprises nine themes (each having an measures on Pakistan, it will mean quarterly
attached weight), covering: reporting to the group on improvement in its financial
o 1. groundwater restoration (15%) safeguards.
o 2. surface water restoration (5%) • If Pakistan stays on the greylist, or is blacklisted, it
o 3. major and medium irrigation (15%) faces not only a financial downgrade and restrictions
on its markets, but will have a tough time managing vulnerabilities with the aim of protecting the
capital inflows from IMF and other agencies, as well international financial system from misuse.
as servicing debt that adds up to about 25% of the • The FATF is an international policy-making body. It
government’s revenues at present. does not take a role in law enforcement matters,
Why was Pakistan blacklisted? investigations or prosecutions.
• Pakistan’s actions over the past five years on building FATF Members and Observers
anti-money-laundering and countering financing of • The FATF currently comprises 37 members (35
terrorism (AML/CFT) safeguards were found to be countries including China and India and 2 regional
wholly inadequate. organisations - European Commission, Gulf Co-
• As a result, Pakistan was placed on the fourth and operation Council), representing most major
lowest rung of the APG’s Follow-Up (FU) listing, financial centres in all parts of the globe.
the Enhance Expedited Follow Up. • From the Indian sub-continent, India is the only
• India is a member of both the APG and the FATF member of FATF.
consultations and is represented by a team of • FATF Observers: Israel and Saudi Arabia.
officials from the Ministries of Finance, External • Although the Gulf Cooperation Council (GCC) is a full
Affairs and Home Affairs. Member of the FATF, the individual Member countries
• However, the actions demanding Pakistan’s of the GCC (of Bahrain, Kuwait, Oman, Qatar, Saudi
review have been pushed by the U.S., the U.K., Arabia and the United Arab Emirates) are not.
Germany and France. Greylist: Implications
Financial Action Task Force (FATF) • The FATF's “grey list” includes the names of
• It is an inter-governmental body established in 1989 countries such as Pakistan, Ethiopia, Iraq, Serbia, Sri
by a Group of Seven (G-7) Summit in Paris. Lanka, Syria, Trinidad and Tobago, Tunisia, Vanuatu
o G-7 Countries: Canada, U.S., U.K., Italy, France, and Yemen.
Germany and Japan – the seven largest • Watch-listed/grey-listed nations (especially
advanced economies. economically weak ones) find it difficult to raise funds,
o Earlier it was G-8 when Russia was suspended pay debts and access global markets.
from it because of Russia's annexation of Crimea, • They may also see decline in foreign transactions and
a part of Ukraine. a drop in foreign currency inflows as well.
• It helps in combating money laundering, terrorist • Being on the grey list will require Pakistan to meet
financing and other related threats to the integrity of additional guarantees while borrowing finance
the international financial system. from international donors such as the
• The FATF's decision making body, the FATF Plenary, International Monetary Fund.
meets three times per year. • FATF “grey list” is itself a ‘transitional zone’ where
• The FATF monitors: rogue nations are expected to either comply with rules
o the progress of its members in implementing or end up in the more adverse “black list”.
necessary measures, Money laundering
o reviews money laundering and terrorist financing • Money laundering is the processing of criminal
techniques and counter-measures, and proceeds to disguise their illegal origin.
o promotes the adoption and implementation of • Illegal arms sales, smuggling, and the activities of
appropriate measures globally. organised crime, including for example drug trafficking
• In collaboration with other international stakeholders, and prostitution rings, embezzlement, insider trading,
the FATF works to identify national-level bribery, computer fraud schemes etc.
News in brief
Climate Change Policy New START
• The Maharashtra government has retrieved a policy • The New Strategic Arms Reduction Treaty (New
on climate change that was lying in cold storage for START) is a bipartisan process of verifiably reducing
two years. U.S. and Russian strategic nuclear arsenals.
• In October 2017, the State Cabinet gave approval to a • New START is the first verifiable U.S.-Russian
climate change policy based on an action plan nuclear arms control treaty to take effect since START
submitted by The Energy and Resources Institute. I in 1994.
Treaties in News pg 10 • After INF, at risk is the New START (Strategic Arms
Intermediate-Range Nuclear Forces (INF) Reduction Treaty) signed in 2010 and due to lapse in
• The U.S. and Russia terminated a Cold War-era February 2021.
missile pact in a move that raised the spectre of an Comprehensive Nuclear-Test-Ban Treaty (CTBT)
arms race between the global superpowers. • The Comprehensive Nuclear-Test-Ban Treaty (CTBT)
• The 1987 Intermediate-Range Nuclear Forces (INF) is the Treaty banning all nuclear explosions -
treaty had limited the United States and Russia from everywhere, by everyone.
fielding land-based missiles with a range between • The Treaty was negotiated at the Conference on
500 and 5,500 kilometers, both conventional and Disarmament in Geneva and adopted by the United
nuclear. Nations General Assembly.
• The INF Treaty was the first pact to include • The Treaty has reached near-universality. 182
intensive verification measures, including on-site countries have signed the Treaty – the last country to
inspections. do so was Trinidad and Tobago in October 2009
• Now only one major bilateral agreement, New START, which also ratified the Treaty in May 2010.
limits the U.S. and Russian nuclear arsenals. • 154 countries have ratified the Treaty – most recently
• Washington and Moscow have predictably blamed the Ghana in June 2011.
other side’s violations for the treaty’s demise. Why is the CTBT so important?
• But the real reason the INF Treaty collapsed is that • The CTBT is the last barrier on the way to develop
the Cold War-era balance of military power—the nuclear weapons.
security environment in which it was signed—has • It curbs the development of new nuclear weapons and
changed fundamentally. In a multi-polar world (read the improvement of existing nuclear weapon designs.
the rise of China), bilateral arms control agreements • When the Treaty enters into force it provides a legally
make much less sense. binding norm against nuclear testing.
• That's why U.S. President Donald Trump demanded How many nuclear tests were conducted and by
that the arms control agreement be renegotiated to whom?
include China which was not hindered to develop • Three countries have carried out nuclear explosions
missiles under any of such treaties. after the 1996: India and Pakistan in 1998, and the
• The INF Treaty was hailed as a great disarmament Democratic People’s Republic of Korea (DPRK) in
pact even though no nuclear warheads were 2006 and 2009.
dismantled and similar range air-launched and Why has the Treaty not entered into force yet?
sea-launched missiles were not constrained. • The Treaty’s entry into force depends on 44 specific
• Further, since it was a bilateral agreement, the treaty States that must have signed and ratified the Treaty.
did not restrict other countries, but this hardly • These States had nuclear facilities at the time the
mattered then when it was signed as it was an age of Treaty was negotiated and adopted.
bipolarity and the U.S.-USSR nuclear equation was • As of August 2011, 35 of these States have ratified
the only one that counted. the Treaty.
• Nine States still need to do so: China, the Democratic o Infrasound: to detect low-frequency sound
People’s Republic of Korea, Egypt, India, Indonesia, waves in the air with a network of 60 stations.
Iran, Israel, Pakistan and the United States. o Radionuclide: to detect radionuclide particles
o U.S. is of the view that Russia probably is not and noble gas.
adhering to the nuclear testing moratorium in a Can monitoring data be used for other purposes?
manner consistent with the ‘zero-yield’ standard” • CTBT monitoring data and technologies are also used
imposed by the Comprehensive Test Ban Treaty for civilian purposes and scientific research.
(CTBT). • The CTBT Organisation is providing monitoring data
o The CTBT has not entered into force but the U.S. directly from some of its stations to Tsunami warning
is a signatory and Russia has signed and institutions in Asia and the Pacific since November
ratified it. 2006.
• India, North Korea and Pakistan have not yet signed • After the triple disaster in Japan in March 2011, the
the Treaty. CTBTO provided information on the levels and
• All 44 States are listed in the Treaty’s Annex 2. dispersion of radioactive material across the globe.
What is the difference between signature and Russia launches floating nuclear reactor in Arctic pg
ratification? 14
• The signature to a treaty indicates that the country • Russia launched the world’s first floating nuclear
accepts the treaty. It commits not to take any actions reactor, sending it on an epic journey across the
that would undermine the treaty’s purposes. A treaty Arctic, despite environmentalists warning of a
is signed by a senior representative of a country such “Chernobyl on ice.”
as the president or the foreign minister. • Loaded with nuclear fuel, the Akademik Lomonosov
• The ratification symbolizes the official sanction of a with a crew of 69 left the port of Murmansk to begin its
treaty to make it legally binding for the government of 5,000 km voyage to Pevek in Siberia.
a country. This process involves the treaty’s adoption Symmetric response to U.S. missile test: Russia
by the legislature of a country such as the • Russia has ordered its military to prepare a
parliament. “symmetric response” after Washington tested a
What is the CTBT verification regime? formerly banned missile.
• The CTBT verification regime is a unique, • The U.S. tested a modified Navy Tomahawk cruise
comprehensive system, consisting of the International missile off the coast of California that would have
Monitoring System(IMS), International Data Centre breached the limits established by the now obsolete
(IDC) and on-site inspections (OSI). INF treaty.
• It constantly monitors the planet for nuclear • A deadly explosion at a missile test facility in Russia's
explosions and shares its findings with Member arctic northwest has led to questions about Moscow's
States (= the 182 States that have signed the capabilities.
Treaty). • Scientists there are believed to have been testing
Monitoring stations what NATO has code named "Skyfall," a 9M730
• The IMS facilities are located all over the globe and Burevestnik cruise missile propelled by a small
use four distinct technologies to look for signs of nuclear reactor that would give it a nearly limitless
nuclear explosions: flying range.
o Seismic: to detect shockwaves in the Earth. • At least five scientists were killed, radiation levels
o Hydroacoustic: to detect acoustic signals in the spiked nearby and several radiation detectors
oceans. subsequently went offline.
Development financial institution to fund • US' complaint is that nearly two-thirds of the members
infrastructure of the World Trade Organization (WTO) have been
• The government has proposal to set up a able to avail themselves of special treatment and to
development financial institution (DFI) to solve the take on weaker commitments under the WTO
infrastructure financing needs of the country, since framework by designating themselves as developing
banks do not have the long-term funds to finance countries.
such projects. What is the “developing country” status?
o Banks do not have long-term funds. The maturity • The “developing country” status allows a member of
of our liabilities are five years, on an average. So, the WTO to seek temporary exception from the
funding infrastructure projects is difficult in India. commitments under various multilateral trade
• In order to improve access to long-term finance, it is agreements ratified by the organisation.
proposed to establish an organisation to provide credit • It was introduced during the initial days of the WTO as
enhancement for infrastructure and housing projects, a mechanism to offer some respite to poor countries
particularly in the context of India now not having a while they try to adjust to a new global trade order
development bank and also for the need for us to marked by lower barriers to trade.
have a institutional mechanism. • The WTO, however, does not formally classify any
• The name of the organisation will be disclosed in ‘a of its members as a developing country. Individual
day or two.’ countries are allowed to unilaterally classify
Already analysed in previous issues themselves as developing economies. So, as many
• RFID Tags pg 1, 3 as two-thirds of the 164 members of the WTO have
• Enforcement Directorate pg 1 classified themselves as developing countries.
• Amazon forest burning pg 14 • Since the WTO allows countries to unilaterally classify
• South Korea-Japan Trade War pg 14 themselves as “developing”, many countries have
• Hong Kong protests pg 14 been happy to make use of this freedom. Even many
developed economies such as Singapore and Hong
Kong which have per capita income levels higher than
THE HINDU ANALYSIS 25th AUGUST 2019 the U.S., have made use of the provision to classify
IS THE WORLD TRADE ORGANIZATION themselves as growing economies.
BECOMING A NEW BATTLEFRONT?
• Context: U.S. President Donald Trump earlier this
month attacked the World Trade Organization (WTO)
for allowing countries such as India and China to
engage in unfair trade practices that affect American
economic interests.
• While addressing a gathering in Pennsylvania, Mr.
Trump took issue with the “developing country” status
enjoyed by India and China at the WTO.
• He argued that these countries are not developing
economies, as they claim to be, but instead grown
How do countries such as India and China benefit
economies that do not deserve any preferential trade
from the special status?
treatment from the WTO over developed countries
• Developing country status ensures special and
such as the U.S.
differential treatment (S&DT) or provisions which
Analysis
allow them more time to implement agreements and
commitments, include measures to increase trading facing the threat of rising seas due to climate change
opportunities, safeguard their trade interests, and and will be submerged in the next few years.
support to build capacity to handle disputes and • The West Bengal government has given in principle
implement technical standards. approval for the construction of sea walls using
• The status of a developing country allows countries to offshore submerged geotubes (sand-like material
seek partial exemptions from the WTO’s rules for free filled into geo-textile tube).
and fair trade between countries. The status, for • This is not the first time that the temple is facing the
instance, allows countries like China and India, with problem of rising seas. It is believed that the existing
their special tag, to impose higher tariffs on imports temple is the seventh at the site, after six structures
from other countries and also offer more subsidies to built earlier went into the sea.
local producers in order to protect their domestic Inter-Ministerial Central Team (IMCT) on Floods
interests. • Punjab has demanded the immediate inclusion of his
• Instead of floating a proposal in the WTO, the U.S. State among those identified for on-the-spot
has unilaterally decided to review the developing assessment of flood situation by an Inter-
country status, something that is unprecedented. Ministerial Central Team (IMCT).
• Brazil had agreed to begin a process to renounce • The Centre has listed 11 States that the IMCT will
its developing country status in lieu of Organisation assess for flood damage, but Punjab does not find
for Economic Cooperation and Development (OECD) mention in it even though it has witnessed large-scale
membership. flooding in many areas following unprecedented rain.
21st century trade issues • The IMCT was constituted by the Union Ministry of
• Countries, mostly from the developed world, want Home Affairs.
what they call the ‘21st century trade issues’ — such • The committee had decided to break away from the
as e-commerce, investment facilitation, matters past practice of waiting for the affected State to
relating to small firms and gender equality — to be submit a memorandum seeking central assessment.
discussed for rule-making to enhance the relevance of • The IMCT has been mandated to visit the flood-
the WTO. affected States of Meghalaya, Assam, Tripura,
Least-developed Countries Bihar, Uttarakhand, Himachal Pradesh, Gujarat,
• The WTO recognizes as least-developed countries Rajasthan, Maharashtra, Karnataka, and Kerala,
(LDCs) those countries which have been for making final recommendations to the Central
designated as such by the United Nations. government for allocation of flood assistance to the
• There are currently 47 least-developed countries on flood-ravaged States, according to the statement.
the UN list, 36 of which to date have become WTO Student-Teacher Ratio
members. • The Right of Children to Free and Compulsory
• There are no WTO definitions of “developed” or Education (RTE) Act, 2009 in its Schedule lays down
“developing” countries. Pupil Teacher Ratio (PTR) for both primary and
• Developing countries in the WTO are designated on upper primary schools.
the basis of self-selection although this is not • At primary level the PTR should be 30:1 and at the
necessarily automatically accepted in all WTO bodies. upper primary level it should be 35:1.
News in brief • The Rashtriya Madhyamik Shiksha Abhiyan (RMSA)
Kapil Muni Temple framework stipulates that the PTR at secondary level
• The Kapil Muni temple on Sagar Island in the should be 30:1.
Sunderbans, where a large number of devotees • As per Unified District Information System For
gather every year during the Gangasagar fair, is Education (UDISE) the PTR at national level for
elementary schools is 24:1 and for secondary schools replacement in the case of concussion or suspected
it is 27:1. concussion in all formats of international and first
Order of Zayed class cricket worldwide.
• Prime Minister Narendra Modi was honoured with the o A concussion is an injury to the brain that
‘Order of Zayed’, the UAE’s highest civilian award, as results in temporary loss of normal brain function.
a mark of appreciation for his efforts to boost bilateral • The rule, implemented since August 1, 2019 says that
ties between the two nations. following a medical determination by a team
• The award has earlier been bestowed on several representative in the case of an on-field concussion,
world leaders, including Russian President Vladimir the injured player will be substituted by a like-for-like
Putin, Queen Elizabeth II and Chinese President Xi replacement approved by the match referee.
Jinping. o In Smith’s case, Labuschagne was the like-for-
• The award in the name of Sheikh Zayed bin Sultan Al like replacement as a middle-order batsman at
Nahyan, the founding father of the UAE, acquires the exact same position as Smith’s (No 4 in the
special significance as it was awarded to Prime Australian batting order).
Minister Modi in the year of the birth centenary of • The ICC rules also specify that in case a like-for-like
Sheikh Zayed. replacement is not available, the match referee may
• With an annual bilateral trade of about $60 billion, the choose not to allow a substitute under the
UAE is India’s third-largest trade partner. It is also the circumstances.
fourth-largest exporter of crude oil for India. • Substitutes of this kind are only allowed if there are
What is the Irish backstop? injuries due to concussions.
• It is a plan to ensure that there is no hard border Fly Ash
between Northern Ireland and the Republic of Ireland. • Researchers at the Indian Institute of Technology (IIT)
• The backstop, opposed by hard-Brexiteers, will keep Hyderabad have developed a cheap waterproofing
the U.K. territory of Northern Ireland in the EU material by coating fly ash, a waste by-product from
customs union and much of the single market. coal-based thermal power plants, with stearic acid,
What is the concussion test in cricket? which is a surfactant.
• The story so far: Australia’s Steve Smith, batting on • While fly ash is extremely water-loving (hydrophilic), it
80, was floored by a bouncer from England pacer in turns into a highly water-repelling surface once coated
the first innings of the second Ashes Test in London. with stearic acid.
• Smith was hit on the back of his neck close to his Why did humans lose tail?
head at a spot that was not protected by the helmet, • As we evolved from walking on four legs (quadripeds)
and fell down immediately after taking the blow. to two feet (bipeds), the tail actually became more of a
Dazed, he had to leave the crease. hindrance than a help.
• Although he came back to bat later in the innings (he • A tail that is not used is just another limb that needs
eventually got out on 92), he was withdrawn from the energy to grow (and another thing for predators to
game and was substituted by Marnus Labuschagne grab. (Re: the last point, the lizard has learnt to simply
who batted in the second innings. drop its tail when it faces attack, to regrow it later at
• Labuschagne was the first ever “concussion leisure).
substitute” and in fact, the first ever substitute • We bipeds walk straight, with our bodies aligned with
player to bat in a Test innings. a center of gravity that passes through our spine to
What are the new rules on ‘concussion substitution’? our feet, without needing a tail to counterbalance the
• After a two-year trial in domestic cricket, the weight of our head.
International Cricket Council (ICC) approved player
• Natural selection would have favoured those of our • These bugs are usually hemimetabolous insects
ancestors that had smaller tails when they moved without having larval stage i.e., they go from egg to
from the forest to the savannah. nymph to adult.
• Over the course of the next a few million years, it • Water striders are a good indicator of water
dwindled to nothing. quality.
• Actually, we still have a tail during the first four weeks • These bugs serve as predators and scavengers (feed
of our lives in the womb, but then its gets absorbed by on midges, water fleas, feed on dead and dying
the 7th week and we are just left with the coccyx, at mosquitoes), thereby removing organic waste and
the base of our spine, which serves as a muscle also providing a natural sanitation service. pg 20
attachment point. Already analysed in previous issues
• Apes notably such as chimpanzee, gorillas also have • National Green Tribunal pg 5
coccyx. • Directorate General of Civil Aviation (DGCA) Vs
Not completely lost Airports Authority of India (AAI) pg 7
What if this absorption goes wrong and the tail • Polavaram Project, Concept of National Project pg 8
actually starts to form in infants? • Foreign Exchange Management Act,1999 and
• Fortunately this is a rare and so far these have lean Foreign Exchange Regulation Act, 1973 (a criminal
no more than 40 cases reported to date across the law) pg 9
world. • U.S. Taliban peace talks pg 12
• All these neonates were operated with success, and • India's Nuclear Doctrine pg 14
have grown in health and are normal with no
neurological or other effects.
Ecologists seek trade sanctions on Mexico
• Conservationists are urging countries to slap trade SPECIAL PROTECTION GROUP (SPG)
• Context: Former PM Dr. Manmohan Singh set to lose
sanctions on Mexico over its failure to rein in illegal
SPG cover.
fishing that could doom the vaquita marina porpoise to
Analysis
extinction within months.
• Only 10 vaquita are believed to exist in the wild. • The Special Protection Group (SPG) was raised in
Water Striders 1985 with the intention to provide proximate security
• Water striders are small insects that are adapted for cover to the Prime Minister, former Prime Ministers
life on top of still water or slow-moving water, using and their immediate family members.
surface tension to their advantage so they can • SPG officers are ingrained in high leadership qualities,
“walk on water.” professionalism, knowledge of proximate security and
• Surface tension, property of a liquid surface inculcate the culture of leading from the front.
displayed by its acting as if it were a stretched elastic • SPG has strived to achieve this by adopting
membrane. innovative methods not only in its own working, but
• Because of this property, certain insects can stand on also in the overall security arrangements in
the surface of water. collaboration with the IB and State/ UT police
• The legs have tiny hairs that repel water and capture forces.
air. By repelling water, the tiny water striders stand on • SPG personnel are recruited from various armed units
the water’s surface and the captured airs allows them such as the Indian Police Service, Central Reserve
to float and move easily. Thus, the combination of Police Force, Central Industrial Security Force, Border
hydrophobic setae (bristles) and water surface Security Force & Sashastra Seema Bal.
tension prevents them from sinking.
• After finishing their tenure as an SPG personnel, they removal from service and were in receipt of benefits
go back to joining their respective units. or pay and allowances are not eligible for the pension.
Eligible Dependents for Samman Pension
SWATANTRA SAINIK SAMMAN YOJANA (SSSY)
• Context: SC slams govt. for denying pension to • Samman pension is provided to Freedom fighter
freedom fighter. family include (if the freedom fighter is not alive)
Analysis mother, father, widower/widow if he/she has not since
• The key objective of Swatantra Sainik Samman remarried, unmarried daughters.
Pension Scheme is to provide pension to freedom • Only one person in the family is eligible for getting
fighters & their eligible dependents in India. Samman pension.
• The SSSY implemented by the Central Government Sequence of eligibility
of India. • In the event of availability of more than one
Eligibility Criteria for Samman Pension dependent in the family, the sequence of eligibility will
be as follows.
• The following categories of freedom fighters are
o Widow/widower
eligible for the Samman Pension.
o Unmarried daughters
o Dependents of martyrs are eligible for Samman
o Mother
Pension. A martyr is a person who was killed due
o Father
to participation in the freedom struggle of India.
o A person who had suffered minimum 6-month CHILD LABOUR
imprisonment of participation in freedom struggle • Context: Over 5,000 children in the age group of six
is eligible to get pension. Eligibility criteria for to 14 years have abandoned education in mica mining
women & SC/ST are 3 months for women. districts of Jharkhand and Bihar, and a section of
o If a person’s participation in freedom struggle them have started working as labourers to
remained underground for more than six months supplement their family income, according to a survey
is eligible for Samman pension. conducted by the National Commission for
o A person whose property was damaged or sold Protection of Child Rights (NCPCR).
due to participation in the freedom struggle is Analysis
eligible to get this pension. • India is one of the largest producers of Mica, with
o If a person became permanently Jharkhand and Bihar being the main producing States.
incapacitated during firing or lathi charge in • Mica is used in various sectors including buildings and
Freedom struggle, he/she is eligible for this electronics.
pension. • It is also used in the production of cosmetics and
o By participating in freedom struggle if a person paints.
lost his Government job he/she is eligible. Child Labour
o Any person was awarded the punishment of 10 • The most comprehensive step taken by the
strokes of caning/flogging/whipping due to his Government of India is the amendment in the Child
participation in freedom struggle. He/she is Labour Act of 1986 (the Child Labour (Prohibition &
eligible to get Samman pension. Regulation) Amendment Act, 2016).
Person not eligible for Samman Pension • It designates a child as a person who has not
• If the property of a person was restored, he is not completed their 14th year of age.
eligible for Samman Pension. • This amendment prohibits employment of children
• Persons who were reinstated in Government service below the age of 14 in any occupation whatsoever.
before the expiry of two years from their dismissal or
• It also prohibits the employment of children in the age forms of Child Labour in June 2017 which shows the
group of 14 - 18 years in any hazards occupation. country's commitment to a child labour free nation.
• The Amendment Act also provides stricter punishment • The National Child Labour Project Scheme
for employers for violation of the Act and has made (NCLPS) started in 1988 has the basic objective of
the offence as cognizable. suitably rehabilitating the children withdrawn from
o A cognizable offence is one for which a police employment thereby reducing the incidence of child
officer may arrest an accused person without labour in areas of known concentration of child labour.
warrant. • In this regard, to further add impetus to establish a
• The Juvenile Justice (Care and Protection of child labour free nation, the Platform for Effective
Children) Act, 2015 treats child labourers as Enforcement for No Child Labour (PENCIL) had
“children in need of care and protection” and been launched by the Ministry of Labour and
empowers the district level Child Welfare Committees Employment.
to ensure their overall welfare. • PENCIL is an online portal, launched in November
• The National Food Security Act 2013 and Mahatma 2017, for better monitoring & reporting system to
Gandhi National Rural Employment Guaranty Act ensure effective implementation of the provisions of
2005 are two other critical legislations which provide a the amended Child Labour (Prohibition & Regulation)
safety network to vulnerable communities and play a Act, 1986 and National Child Labour Project (NCLP)
pivotal role in the prevention of child labour. Scheme.
National Child Labour Project (NCLP) • Online complaints regarding Child labour can be filed
• The Government is also implementing the National by anybody on the PENCIL Portal.
Child Labour Project (NCLP) Scheme since 1988 for • The complaint gets assigned to the concerned Nodal
rehabilitation of child labour. Officer automatically by the system for rescual,
• Under the NCLP Scheme, children in the age group of rehabilitation and mainstreaming of the child labourer.
9-14 years are rescued/withdrawn from work and Child Protection Services
enrolled in the NCLP Special Training Centres, where • Ministry of Women and Child Development is
they are provided with bridge education, vocational implementing ‘Child Protection Services’ (CPS)
training, mid-day meal, stipend, health care, etc. (erstwhile Integrated Child Protection Scheme), for
before being mainstreamed into formal education care, protection, rehabilitation and reintegration of
system. children in difficult circumstances.
• Children in the age group of 5-8 years are directly • Under CPS, financial assistance is provided to State
linked to the formal education system through a close Governments/UT Administrations, for, inter alia,
coordination with the Sarva Shiksha Abhiyan (SSA). undertaking a situational analysis of children in
• To ensure effective enforcement of the provisions of difficult circumstances, for setting up and
the Child Labour Act and smooth implementation of maintenance of various types of Child Care
the National Child Labour Project (NCLP) Scheme, a Institutions (CCIs).
separate online portal PENCIL (Platform for Effective • The Child helpline (Childline-1098) - which is the
Enforcement for No Child Labour) was launched in world’s biggest facility for rescue of children in
2017. distressed situation.
PENCIL • The Sustainable Development Goal 8.7 aims to
• India has ratified the two Core Conventions of eliminate child labour.
International Labour Organization (ILO), Constitutional Provisions for Child Upliftment
Convention 138 regarding admission of age to • Article 21 A: Right to Education
employment and Convention 182 regarding worst
o The State shall provide free and compulsory o Right to Organise and Collective Bargaining
education to all children of the age of 6 to 14 Convention (No.98)
years in such manner as the State, by law, may o Minimum Age Convention (No.138)
determine. o Worst forms of Child Labour Convention
• Article 24: Prohibition of employment of children (No.182)
in factories, etc. • The two Core Conventions directly related to child
o No child below the age fourteen years shall be labour are that of ILO Convention 138 and 182.
employed in work in any factory or mine or • India has ratified both the Core Conventions of
engaged in any other hazardous employment. International Labour Organization (ILO) Conventions
• Article 39: The State shall, in particular, direct its 138 regarding admission of minimum age to
policy towards securing employment and Convention 182 regarding worst
o that the health and strength of workers, men and forms of Child Labour.
women, and the tender age of children are not Child Artists
abused and that citizens are not forced by • Under the Child Labour (Prohibition and Regulation)
economic necessity to enter avocations unsuited Amendment Rules, 2017, child artistes are supposed
to their age or strength. to work for a maximum of five hours a day and not
ILO core conventions related to Child Labour more than three hours without rest.
• International Labour Organisation is a U.N. agency • The rules also require permission from the District
that was established in 1919. Magistrate and an undertaking by the producer, as
• ILO brings together governments, employers and well as the deployment of one person each for
workers representatives of 187 member States, to set ensuring the safety and security of a maximum of five
labour standards, develop policies and devise children.
programmes promoting decent work for all women • Children should not be away from schooling for
and men. more than 27 days and 20% of their income
• The principal means of action in the ILO is the setting should be deposited in a fixed deposit in their
up the International Labour Standards in the form of name.
Conventions and Recommendations. • If a child was involved in filming, the film should
• Conventions are international treaties and are include a disclaimer saying that all measures were
instruments, which create legally binding taken to ensure that no abuse, neglect or
obligations on the countries that ratify them. exploitation of the child took place during shooting.
Recommendations are non-binding and set out National Commission for Protection of Child Rights
guidelines orienting national policies and actions. • The National Commission for Protection of Child
• There are eight Core Conventions of the ILO (also Rights (NCPCR) was set up in March 2007.
called fundamental/human rights conventions) which • NCPCR is a statutory body under the CPCR Act,
are as follows. 2005 under the administrative control of the Ministry
o Forced Labour Convention (No. 29) of Women & Child Development.
o Abolition of Forced Labour Convention (No.105) • The Commission's Mandate is to ensure that all Laws,
o Equal Remuneration Convention (No.100) Policies, Programmes, and Administrative
o Discrimination (Employment Occupation) Mechanisms are in consonance with the Child Rights
Convention (No.111) perspective as enshrined in the Constitution of India
o Freedom of Association and Protection of Right and also the UN Convention on the Rights of the
to Organised Convention (No.87) Child.
• The Child is defined as a person in the 0 to 18 years detained or lodged for the purpose of treatment,
age group. reformation or protection
Composition of the Commission • To inquire into complaints and take suomoto notice
• This commission has a chairperson and six of matters relating to child rights.
members of which at least two should be women. • To inquire into complaints relating to the child’s right
• All of them are appointed by Central Government for to free and compulsory education under Right To
three years. Education Act, 2009.
• The maximum age to serve in commission is 65 years • To monitor the implementation of the provisions of the
for Chairman and 60 years for members. Protection of Children from Sexual Offences
• The Central Government can remove the Chairperson (POCSO) Act, 2012 and POCSO Rules 2012.
from his office on the ground of proved misbehaviour News in brief
or incapacity. Blue Whale
• The Chairperson of NCPCR should be a person of • The blue whale is a cosmopolitan species, found in
eminence who has done outstanding work on all oceans except the Arctic, but absent from some
promoting the child rights. regional seas such as the Mediterranean, Okhotsk
Functions of the Commission and Bering seas.
• It examines and reviews the safeguards provided by • Blue whales are found year round in the northern and
the laws for protection of child rights and recommends equatorial Indian Ocean, especially around Sri Lanka,
measures for the same to government. and the Maldives, and at least seasonally near the
• It can submit a report annually or as it deems fit, for Seychelles and in the Gulf of Aden.
recommendation of these measures. • Blue whales use songs in mating.
• It can insure into the violation of child rights and • Blue whales feed almost exclusively on euphausiids
recommend initiation of proceedings in these cases. (krill), with a variety of species being taken by different
• While inquiring into any such matter, the NCPCR has blue whale populations.
powers of a civil court trying a suit and in particular in • They feed both at the surface and also at depth,
respect of the following matters: following the diurnal vertical migrations of their prey.
o summoning and enforcing the attendance of any • IUCN Status: Endangered
person and examining him on oath. • The blue whale falls in Schedule I of the Wildlife
o requiring the discovery and production of any (Protection) Act, 1972.
document • Dozens of dead blue and sperm whales have washed
o receiving evidence on affidavits ashore on the Nagayalanka, Machilipatnam, Kakinada,
o requisitioning any public record from any court or and Srikakulam coast in Andhra Pradesh since 2015.
office and What caused their death is the subject of study.
o issuing summons for the examination of McrBC
witnesses or documents. • A team of scientists at the Indian Institute of Science
• However, National Commission is prohibited from Education and Research (IISER) in Pune claims to
inquiring into any matter which is pending before have determined the atomic structure of McrBC — a
a State Commission for Protection of Child Rights complex bacterial protein which helps prevent
or any other Statutory Commission. viral infections in a bacterial cell and functions as
• To study treaties and other international a molecular scissor.
instruments. • The determination of the McrBC’s structure has long-
• To inspect any juvenile custodial home or any other term implications in ‘phage therapy’ and could help
place of residence or institution where children are combat drug-resistant infections in the future.
o Phages are groups of viruses that infect and kill Programme (NAMP) and SAFAR has already been
bacterial cells and phage therapy is the covered in detail.
therapeutic use of bacteriophages to treat Right to Privacy
bacterial infections. • The judgment in Justice K.S. Puttaswamy (Retd) vs
How the ‘scissors’ work Union Of India of a nine-judge bench of the Supreme
• Like the human immune system, which fights viruses, Court unanimously held that Indians have a
bacteria too have an elaborate defence system to constitutionally protected fundamental right to
combat phages (the viruses which infect bacterial privacy under Article 21 of the Constitution.
cells). • It held that privacy is a natural right that inheres in all
• These phages inject their DNA into the bacterial cell, natural persons, and that the right may be restricted
wherein they multiply and duplicate the virus that only by state action that passes each of the three
eventually bursts out of that cell to infect many more. tests:
• To prevent infection, bacteria have specialised o First, such state action must have a legislative
‘molecular scissors’ which specifically cut the foreign mandate;
DNA, thus preventing their multiplication in bacterial o Second, it must be pursuing a legitimate state
cells. purpose; and
• The molecular scissors not only cut the viral DNA, but o Third, it must be proportionate i.e., such state
also regulate the entry of other foreign DNA that might action — both in its nature and extent, must be
host an antibiotic resistance gene. necessary in a democratic society and the action
• The understanding of the molecular scissors would ought to be the least intrusive of the available
aid in combating multidrug resistant microbes. alternatives to accomplish the ends.
CRISPR/Cas9 • Income tax department is also working on a ‘Project
• CRISPR/Cas9 is a simple but powerful gene-editing Insight’.
technology that can be harnessed to precisely • It uses data analytics to identify those with high risk
modify, delete or correct disease-causing of tax evasion and then to gently nudge them with text
abnormalities at their genetic sources. messages, phone calls and emails to ‘voluntarily’
• CRISPR refers to Clustered Regularly Interspaced comply with the tax laws.
Short Palindromic Repeats of genetic information, Bypolls
which some bacterial species use as an antiviral • By-elections or bypolls are used to fill elected offices
mechanism in combination with the Cas9 enzyme. that have become vacant between general elections.
Cas9 – a CRISPR-Associated endonucleae – acts as • Under the following circumstances, bypolls can occur
“molecular scissors” to cut DNA at a specific location. for a seat:
Air Pollution o When the incumbent dies or resigns.
• The Central Government has designated the Council o When the incumbent becomes ineligible to
of Scientific and Industrial Research-National Physical continue in office.
Laboratory (CSIR-NPL) as national verification o When a constituency election is invalidated by
agency for certifying instruments and equipments for voting irregularities.
monitoring emissions and ambient air. • When a candidate wins a seat after the bypolls he or
• CSIR-NPL shall also develop necessary infrastructure, she will remain in office till the Lok
management system, testing and certification facilities Sabha/Assembly dissolves.
conforming to international standards. • A person cannot be a member of both Houses of
• Difference between National Clean Air Programme, Parliament at the same time under the
National Air Quality Index, Air Quality Monitoring Representation of People Act (1951).
o If a person is elected to both the Houses of • Amazon Fires pg 14
Parliament, he must intimate within 10 days in
which House he desires to serve.
o If a sitting member of one House is also elected
to the other House, his seat in the first House VECTOR-BORNE DISEASES
• Context: Vector-borne diseases on the rise in Delhi.
becomes vacant.
pg 2
o If a person is elected to two seats in a House, he
Analysis
should exercise his option for one, otherwise,
• Vectors are living organisms that can transmit
both seats become vacant.
infectious diseases between humans or from animals
IMF report flags several delays in India’s data
to humans.
reporting
Vectors and Vector-borne diseases:
• According to the IMF’s “Annual Observance Report
Mosquitoes
of the Special Data Dissemination Standard for
• Aedes
2018”, India failed to comply with multiple
o Chikungunya
requirements prescribed in the Special Data
o Dengue fever
Dissemination Standard (SDDS) — a practice
o Lymphatic filariasis
mandatory for all IMF members — whereas
o Rift Valley fever
comparable economies comprising the BRICS
o Yellow fever
grouping of Brazil, China, South Africa and Russia,
o Zika
have maintained a near impeccable record in the
• Anopheles
same period.
o Malaria
• Also, India’s non-compliance in multiple categories in
2018 and to an extent in 2017 breaks with an
• Culex
otherwise near perfect dissemination record.
o Japanese encephalitis
• The website of Ministry of Finance hosts the National
Summary Data Page (NSDP) web page.
o West Nile fever
ASRAAM missile
Sandflies
• The Advanced Short Range Air-to-Air Missile
o Leishmaniasis
(ASRAAM) of European missile-maker MBDA has
o Sandfly fever (phelebotomus fever)
been approved for fitting on Jaguar jets and the IAF
Ticks
was looking to integrating it on the Su-30MKIs and the
o Crimean-Congo haemorrhagic fever
indigenous Light Combat Aircraft (LCA) as well.
o Lyme disease
• It would be the first over the wing launched missile in
o Relapsing fever (borreliosis)
the IAF inventory. All missiles are now fired from
o Rickettsial diseases (spotted fever and Q fever)
under the wing.
o Tick-borne encephalitis
• ASRAAM is widely used as a Within Visual Range
o Tularaemia
(WVR) air dominance missile with a range of over
Triatomine bugs
25km.
o Chagas disease (American trypanosomiasis)
US-France Trade Dispute
Tsetse flies
• US President Donald Trump said he would impose tax
o Sleeping sickness (African trypanosomiasis)
on French wine in retaliation of France’s digital
Fleas
services tax that would impact American companies.
o Plague (transmitted by fleas from rats to o (i) name of registering authority,
humans) o (ii) registration number,
o Rickettsiosis o (iii) laser branded permanent identification
Black flies number,
o Onchocerciasis (river blindness) o (iv) engine number and
Aquatic snails o (v) chassis number, to be put on the windshield
o Schistosomiasis (bilharziasis) of four wheelers.
Lice ❖ Third registration mark refers to a chromium-
o Typhus and louse-borne relapsing fever based hologram sticker affixed on the inner side
of the vehicles
HIGH SECURITY NUMBER PLATES • The new plates will come with a minimum 5-year
• Context: Members of Radium Arts Association from
guarantee, wherein, if it breaks, the letters or
different districts of Maharashtra protested to get the
numerals wither or if there’s any other naturally-
permission to make 'High Security Number Plates'.
occurring damage, the dealer who fitted the plate will
Analysis
have to replace it.
• The Ministry of Road Transport and Highways made
• Existing vehicles can also opt for HSRP but only once
amendments in the Central Motor Vehicle Rules to
old plates have been surrendered and destroyed.
make 'High Security Number Plates' mandatory for all
More on Number Plates
classes of motor vehicles sold after April 1st, 2019 to
• To promote electric vehicles in India, the
be affixed with this new type of registration plates.
government has approved green licence plates
• Implementation of the provisions of the aforesaid rule
bearing numbers in white fonts for private e-
comes within jurisdiction of State Governments/Union
vehicles and yellow for taxis.
Territory Administrations.
• The purpose behind distinctive number plates is their
The prominent security features of High Security
easy identification for preferential treatment in parking,
Registration Plates are:
free entry in congested zones besides other proposed
• Chromium based hot-stamped hologram with Chakra
benefits like concessional toll.
image protects against counterfeiting.
• Earlier, India had four kinds of number plates –
• A retro-reflective film, bearing a verification inscription
o white licence plates with numbers on black font
‘India’ at 45 degree inclination.
for private cars,
• The permanent identification number of minimum 7
o yellow plates with fonts in black for commercial
digits to be laser branded into the reflective sheeting
vehicles,
on the bottom-hand side of the registration plate,
o black plates with yellow font letters for self-driven
which is unique in nature, preceded by alpha-numeric
rental vehicles and
identification of both the vendor or manufacturer or
o blue plates with white font letters for Embassies
supplier, as the case may be and the concerned
and High Commissions.
testing agencies.
• Army vehicles on the other hand follow a different
• Embossing of the registration numbers on the plates.
registration system given by the defence ministry,
• Ingressed “IND” legend in retro reflective film.
while vehicles of the President and governors have
• Tamper proof non-removable/non-reusable snap
red licence plates with the national emblem.
locks system to fit the rear registration plate for the
sake of better security. EUROPEAN UNION-INDIA FREE TRADE
• Third License Plate in the form of self-destructive AGREEMENT (FTA)
• Context: An article. Pg 11
sticker, containing the details-
Analysis
• India is the only major power lacking an FTA with beneficiary countries to the markets of donor
any of its top trade partners, including the EU, the countries.
U.S., China and Gulf economies. • The Generalized System of Preferences (GSP) was
• India, in the meantime, is hanging on to its Most instituted in 1971 under the aegis of United Nations
Favoured Nation (MFN) status. Conference on Trade and Development (UNCTAD).
• Its status under the EU’s Generalised Scheme of • The objective of UNCTAD's support on GSP and
Preferences (GSP) will face rising competition from other preferential arrangements is to help developing
Pakistan or Sri Lanka, who enjoy GSP+ benefits countries - particularly LDCs - to increase utilization of
(China, India, Colombia, Indonesia, Thailand and GSP and other trade preferences and in turn promote
Vietnam are not eligible for GSP Plus). productive capacity development and increased trade.
• The good news here is that India’s talks with the EU • The primary objective of the Generalized System of
have been advancing slowly but steadily. Preference, commonly called GSP is to contribute to
o From agriculture to intellectual property, the the reduction of poverty and the promotion of
EU and India have quietly been exchanging and sustainable development and good governance.
aligning views. • Tariff preferences in the developed markets enable
o New areas like e-commerce have registered Developing Countries to participate more fully in
significant convergence because India’s international trade and generate additional export
position on data privacy is not that different revenue to support implementation of their own
from the EU’s. sustainable development and poverty reduction policy
• As with the EU-Japan deal, India may wish to proceed strategies.
at two speeds: it could delay discussions about free • GSP is presently extended by about 28 developed
flow of data for a few years and freeze differences on countries (Recently, U.S. has ended this status for
the tax moratorium issue or data localisation, even India).
while committing to liberalise in other areas. • Only such products of a beneficiary country (like
• EU negotiators are now more willing to make India) that fulfil the requirements of the rules of origin
concessions on labour or environmental (a set of requirements laid down by the importing
regulations, which used to be insurmountable country) laid down by the importing country, are
obstacles. considered eligible for preferential tariff treatment on
• The collapse of the Transatlantic Trade and import into the markets of donor countries.
Investment Partnership and concerns about excessive • The rules of origin are aimed at reserving, as far as
economic reliance on China have propelled the EU possible, the benefit of the preferential system to the
to become a little more pragmatic. country for which it is intended, and to prevent third
Increasing economic integration: countries' goods from unduly exploiting the system.
• Free Trade Area -> Custom Union -> Common Market What is the EU GSP Plus Scheme and how does it
-> Economic Union differ from ‘normal’ GSP?
Generalized System of Preferences • The European Union’s GSP covers three separate
• Generalized System of Preferences (GSP) is a regimes;
preferential tariff system extended by developed o (i) The standard GSP, which provides
countries (donor countries) to developing countries preferences to 90 (previously 177) Developing
(beneficiary countries). Countries and Territories on over 6300 tariff
• It involves reduced Most Favoured Nation Tariffs or lines;
duty-free entry of eligible products exported by o (ii) the special incentive arrangement for
Sustainable Development and Good Governance,
known as GSP+, which offers additional duty free • Even though their prominence faded with the advent
exports to support vulnerable developing of exotic breeds, there is a growing interest in local
countries (previously 16 now 25 countries – breeds now and the Veterinary College and Research
Including Pakistan) in their ratification and Institute, Tirunelveli, has embarked on creating a
implementation of relevant international database of the Chippiparai, which has already
conventions in these fields, and; gained distinction as a universal donor of canine
o (iii) The Everything But Arms (EBA) blood.
arrangement, which provides Duty-Free, Quota- Left Wing Extremism Division pg 6, 11
Free access for the 50 Least-Developed • This Division was created in the Home Ministry in
Countries (LDCs). 2006, to effectively address the Left Wing Extremist
Least developed countries (LDCs) insurgency in a holistic manner.
• Least developed countries (LDCs) are low-income • The LWE Division, among others, coordinates the
countries confronting severe structural impediments to implementation of various development schemes of
sustainable development. the Ministries/Departments of Govt. of India in LWE
• They are highly vulnerable to economic and affected States.
environmental shocks and have low levels of human • The States of Chhattisgarh, Jharkhand, Odisha, Uttar
assets. Pradesh, Bihar, West Bengal, Andhra Pradesh,
• There are currently 47 countries on the list of Telangana, Maharashtra, Madhya Pradesh, and
LDCs which is reviewed every three years by Kerala are considered LWE affected, although in
the Committee for Development (CDP). varying degrees.
• LDCs have exclusive access to certain international
support measures in particular in the areas of Already analysed in previous issues
development assistance and trade. • Amazon Fires pg 10, 14
Most Favoured Nation (MFN) • Disqualification of MPs/MLAs, 10th Schedule, Whip,
• While the term Most Favoured Nation (MFN) suggests Article 190, 191 etc. pg 8
special preference for the country given MFN status, it • Article 370 and 35A pg 10
actually means it would be treated equally as all • UDAN pg 10
others.
• According to the World Trade Organisation rules,
countries cannot normally discriminate between their
trading partners. UNITED NATIONS CONVENTION TO COMBAT
• If one country is granted a trade concession such as,
DESERTIFICATION (UNCCD) pg 9
• Context: A week ahead of a United Nations
for example, lower import duties, then all WTO
conference in New Delhi that will see experts from
members must be extended the same concessions.
over 90 countries deliberate ways to combat
This principle is known as the Most Favoured
desertification, India had committed to rejuvenate 50
Nation treatment.
lakh hectares (5 million) of degraded land between
News in brief
2021 and 2030.
Chippiparai pg 1
• It will be a combination of restoring forest land as
• An aquiline snout, a slender and streamlined body
well as cultivable land.
with long legs and the tail extending like a snake,
Analysis
Chippiparai, the native breed of Southern Tamil Nadu,
• This January, India became part of the “Bonn
is an ace runner and hunter.
Challenge”, a global effort to bring 150 million
hectares of the world’s deforested and degraded land • The announcement comes ahead of the 14th session
into restoration by 2020, and 350 million hectares by of the Conference of the Parties (COP 14) to the
2030. United Nations Convention to Combat Desertification
• At the UNFCC Conference of the Parties (COP) 2015 (UNCCD) to be hosted by India (in Greater Noida,
in Paris, India also joined the voluntary Bonn Uttar Pradesh) this August.
Challenge and pledged to bring into restoration 13 • India will take over the COP presidency from
million hectares of degraded and deforested land by China for two years until the next COP is hosted in
2020, and an additional 8 million hectares by 2030. 2021.
India’s pledge is one of the largest in Asia. • The global conference, scheduled to take place in
• Schemes such as the Pradhan Mantri Fasal Bima August-September, would review the progress
Yojana, Soil Health Card Scheme, Soil Health made by countries to control and reverse further
Management Scheme and Pradhan Mantri Krishi loss of productive land from desertification, land
Sinchayee Yojana are seen as prongs to tackle this degradation and drought.
land degradation. • According to India’s Nationally Determined
• India for the first time will be hosting the 14th session Contributions (NDCs), submitted under the United
of the Conference of Parties (COP-14) of the United Nations Framework Convention on Climate Change
Nations Convention to Combat Desertification (UNFCCC), India has pledged to create an
(UNCCD) from September 2 to 13. additional carbon sink of 2.5-3 billion tonnes of
Pilot Project under the Bonn Challenge CO2 equivalent through additional forest and tree
• Reiterating its commitment to fight desertification, cover by 2030.
India has launched a pilot project in June 2019 to • India also unveiled the logo of COP 14.
restore degraded forest landscapes in five states • United Nations Convention to Combat Desertification
over the next 42 months. is one of the three Rio conventions adopted by
• In the first phase, the pilot will be conducted in United Nations, along with UNFCCC and Convention
Haryana, Madhya Pradesh, Maharashtra, Nagaland on Biological Diversity.
and Karnataka. • About 30% of India’s total geographical area is
• The project has been launched in partnership with the affected by land degradation.
International Union for Conservation of Nature United Nations Convention to Combat Desertification
(IUCN). (UNCCD)
• It aims to enhance the capacity on forest • The Convention, the only convention stemming
landscape restoration (FLR) by developing and from a direct recommendation of the Conference's
adapting best practices for sustainable land Agenda 21, was adopted in Paris in June 1994 and
management and putting into place some monitoring entered into force in December 1996.
protocols to combat desertification. • It is the first and only internationally legally binding
• The project is also part of the Bonn Challenge framework set up to address the problem of
pledge, which was undertaken by India in 2015, to desertification.
o restore 13 million hectares of degraded and • The Convention addresses specifically the arid, semi-
deforested land by 2020, and arid and dry sub-humid areas, known as the
o another 8 million hectares by 2030. drylands.
• This is one of the highest targets among all Asian • It now has more than 180 country Parties to the
countries. Convention, making it truly global in reach.
COP 14 • The UNCCD is particularly committed to a bottom-up
approach, encouraging the participation of local
people in combating desertification and land • Among practical measures undertaken to prevent and
degradation. restore degraded land are:
• National Action Programmes are at the heart of the o prevention of soil erosion;
Convention and constitute the conceptual and legal o aero-seeding over shifting sand dunes;
framework for implementing it at the national and local o narrow strip planting, windbreaks and
levels, which are also evaluated annually. shelterbelts of live plants;
Land Degradation Neutrality Fund o agroforestry ecosystems;
• The recently launched Land Degradation Neutrality o introduction of new species and varieties with a
Fund is the first-of-its-kind investment vehicle capacity to tolerate salinity and/or aridity; and
dedicated to implementing the SDGs by leveraging o environmentally sound human settlements.
public sector funds to raise private sector capital for • Because poverty forces the people who depend on
sustainable land management and landscape land for their livelihoods to overexploit the land for
restoration activities worldwide that bring multiple food, energy, housing and source of income, and
environment, economic and social benefits. desertification is thus both the cause and
UNCCD 2018-2030 Strategic Framework consequence of poverty, any effective strategy must
• The new UNCCD 2018-2030 Strategic Framework is address poverty at its very center.
the most comprehensive global commitment to • It must take into account the social structures and
achieve Land Degradation Neutrality (LDN) in order to land ownership as well as pay proper attention to
o restore the productivity of vast expanses of education, training and communications in order to
degraded land, provide the fully integrated approach which alone can
o improve the livelihoods of more than 1.3 billion effectively combat desertification.
people, and Consequences of Desertification
o reduce the impacts of drought on vulnerable • It makes land areas flood-prone, causes soil
populations to build. salinisation, results in the deterioration of the quality
Agenda 21 of water, silting of rivers, streams and reservoirs.
• Agenda 21 is a comprehensive plan of action to be • Unsustainable irrigation practices can dry the rivers
taken globally, nationally and locally by that feed large lakes; the Aral Sea and Lake Chad
organizations of the United Nations System, have both seen their shorelines shrink dramatically in
Governments, and Major Groups in every area in this way.
which human impacts on the environment. International Union for Conservation of Nature (IUCN)
• Agenda 21 was adopted by more than 178 • It is a membership Union uniquely composed of both
Governments at the United Nations Conference on government and civil society organisations.
Environment and Development (UNCED) held in Rio • Created in 1948, IUCN has evolved into the world’s
de Janeiro, Brazil, in June 1992. largest and most diverse environmental network.
What is Desertification? • As the only environmental organisation with official
• Desertification is not the natural expansion of United Nations Observer Status.
existing deserts but the degradation of land in arid, • Member organisations meet every four years at the
semi-arid, and dry sub-humid areas. IUCN World Conservation Congress to set priorities
• It is a gradual process of soil productivity loss and the and agree on the Union’s work programme.
thinning out of the vegetative cover because of human
CRIMEAN-CONGO HAEMORRHAGIC FEVER
activities and climatic variations such as prolonged
(CCHF) pg 9
droughts and floods. • Context: 75-Year-Old Woman Dies Of Congo Fever
How can it be prevented and rehabilitated? In Gujarat.
Analysis • Leprosy
• Crimean-Congo haemorrhagic fever, a zoonotic • Zika fever
disease, is a viral haemorrhagic (bleeding) fever • Swine influenza
transmitted by ticks. • Salmonellosis
o It can also be spread through contact with
DRAFT E-COMMERCE NORMS pg 9
viraemic animal tissues during and immediately • Context: Guidelines for e-commerce firms aimed at
post-slaughter. protecting the consumer interests issued earlier this
• Human-to-human transmission can occur resulting month would become mandatory under the new
from close contact with the blood, secretions, organs Consumer Protection Act.
or other bodily fluids of infected persons. Analysis
• It can be responsible for severe outbreaks in humans Draft E-commerce Norms
but it is not pathogenic for ruminants, their amplifying • The consumer affairs ministry has issued draft e-
host. commerce guidelines for consumer protection 2019.
• The disease was first described in the Crimea in 1944
• It calls for e-commerce entities to maintain a level-
and given the name Crimean haemorrhagic fever. playing field and prohibit influencing the price of
• In 1969 it was recognized that the pathogen causing goods and services directly or indirectly.
Crimean haemorrhagic fever was the same as that • The draft norms mention that an e-commerce
responsible for an illness identified in 1956 in the
company doing business in the country shall be a
Congo, and linkage of the two place names resulted registered legal entity under the laws of India.
in the current name for the disease and the virus. • The draft norms further restrict companies from falsely
• CCHF outbreaks have a case fatality rate of up to representing themselves as consumers or posting
40%. reviews about goods and services in their name.
• CCHF is endemic in Africa, the Balkans, the Middle • To enable consumers to make ‘informed decisions’,
East and Asia, in countries south of the 50th parallel the consumer affairs ministry has proposed that e-
north. commerce entities should display terms of contract
• There is no vaccine available for either people or between themselves and the sellers relating to return,
animals. refund, exchange, warranty, delivery, mode of
Zoonotic Diseases payments and grievance redressal mechanism.
• Zoonosis refers to infectious diseases caused by • The draft norms also puts the onus on the companies
bacteria, viruses and parasites that spread between to ensure advertisements for marketing of goods or
animals (usually vertebrates) and humans. They are services are consistent with the actual characteristics.
sometimes called zoonotic diseases. • It provides for protection of ‘personally identifiable
Common zoonotic illnesses include: information of consumers’ and outlines that the
• Rabies companies should ensure such data collection,
• Lyme disease and Rocky Mountain spotted fever storage and use comply with provisions of the
• Dengue, malaria, and chikungunya Information Technology (Amendment) Act, 2008.
• Salmonella infection
• The ministry has sought stakeholders’ comments on
• E. coli infection the guidelines by September 16.
• Anthrax • The department for promotion of industry and internal
• Avian influenza or bird flu trade’s (DPIIT) revised norms on foreign direct
• Bovine tuberculosis investment (FDI) in e-commerce that came into effect
• Ebola on February 1 also adopted a similar approach,
• West Nile virus
barring e-commerce companies from influencing sale • Considering the social benefits of such investments,
price of goods and services. and uncertainties associated with them, development
• The commerce ministry is already drafting a separate banks are often supported by governments or
e-commerce policy that proposes regulating cross- international institutions.
border data flows, setting up storage facilities locally • Such support can be in the form of tax incentives and
and establishing a data authority to devise a administrative mandates for private sector banks and
framework for sharing data. financial institutions to invest in securities issued by
development banks.
DEVELOPMENT FINANCIAL INSTITUTION TO
• Development banks are different from commercial
FUND INFRASTRUCTURE pg 11
• Context: The government has proposal to set up a banks which mobilise short- to medium-term deposits
development financial institution (DFI) to solve the and lend for similar maturities to avoid a maturity
infrastructure financing needs of the country, since mismatch — a potential cause for a bank’s liquidity
banks do not have the long-term funds to finance and solvency.
such projects. • Following foregoing precepts, IFCI, previously the
o Banks do not have long-term funds. The maturity Industrial Finance Corporation of India, was set up in
of our liabilities are five years, on an average. So, 1949. This was probably India’s first development
funding infrastructure projects is difficult in India. bank for financing industrial investments. In 1955, the
• In order to improve access to long-term finance, it is World Bank prompted the Industrial Credit and
proposed to establish an organisation to provide credit Investment Corporation of India (ICICI) — the parent
enhancement for infrastructure and housing projects, of the largest private commercial bank in India today,
particularly in the context of India now not having a ICICI Bank — as a collaborative effort between the
development bank and also for the need for us to government with majority equity holding and India’s
have a institutional mechanism. leading industrialists with nominal equity ownership to
• The name of the organisation will be disclosed in ‘a finance modern and relatively large private corporate
day or two.’ enterprises. In 1964, IDBI was set up as an apex body
Analysis of all development finance institutions.
What are development banks? • As the domestic saving rate was low, and capital
• Development banks are financial institutions that market was absent, development finance institutions
provide long-term credit for capital-intensive were financed by (i) lines of credit from the Reserve
investments spread over a long period and yielding Bank of India (that is, some of its profits were
low rates of return, such as urban infrastructure, channelled as long-term credit); and (ii) Statutory
mining and heavy industry, and irrigation systems. Liquidity Ratio bonds, into which commercial banks
• Such banks often lend at low and stable rates of had to invest a proportion of their deposits.
interest to promote long-term investments with • In other words, by sleight of government hand, short-
considerable social benefits. term bank deposits got transformed into long-term
• Development banks are also known as term-lending resources for development banks. The missing capital
institutions or development finance institutions. market was made up by an administrative fiat.
• To lend for long term, development banks require • However, development banks got discredited for
correspondingly long-term sources of finance, usually mounting non-performing assets, allegedly caused by
obtained by issuing long-dated securities in capital politically motivated lending and inadequate
market, subscribed by long-term savings institutions professionalism in assessing investment projects for
such as pension and life insurance funds and post economic, technical and financial viability. After 1991,
office deposits. following the Narasimham Committee reports on
financial sector reforms, development finance both because of better engine technology and
institutions were disbanded and got converted to higher cost of BS-VI fuel.
commercial banks. The result was a steep fall in long- Bharat Stage norms Vs European regulations
term credit from a tenure of 10-15 years to five years. • The Bharat Stage norms are based on European
regulations, though with a time-lag of five years.
BHARAT STAGE (BS) POLLUTION NORMS pg 16
• Context: State-owned oil marketing companies o With India moving on to Euro VI/BS VI standards,
(OMCs) are set to increase the prices of petrol and we will finally be at par with Europe.
diesel with effect from April 2020 to recover over • The aim of BS-VI is to reduce levels of harmful car
₹30,000 crore of investments made by these firms in and van exhaust emissions, both in petrol and
upgrading their refineries to meet the BS-VI diesel cars.
standards. o This includes nitrogen oxide (NOx), carbon
Analysis monoxide (CO), hydrocarbons (THC and
Bharat Stage (BS) Pollution Norms NMHC) and particulate matter (PM), which is
basically soot from diesel cars.
• India has followed the regulatory pathway for fuel
quality and vehicle emissions standards termed as o The knock-on effect of reducing these pollutants
Bharat Stage (BS). can also mean improved fuel economy and
• The different norms are brought into force in lower CO2 emissions.
• The latest BS-VI regulations set different emissions
accordance with the timeline and standards set up by
the Central Pollution Control Board which comes standards for petrol and diesel cars, but that is a
under the Ministry of Environment and Forests and reflection of the different kind of pollutants the two
Climate Change. fuels produce.
Leapfrogging directly from BS-IV to BS-VI • Among other things, the new norms make on-board
• The Ministry of Petroleum and Natural Gas has diagnostics (OBD) mandatory for all automobiles.
successfully introduced the BS-IV grade • Using BS-VI fuel in the current BS-IV engines or,
transportation fuels across the country w.e.f April 1st conversely, running BS-VI engines on the current-
2017. grade fuel, may be ineffective in curbing vehicular
• To meet international best practices Government has pollution, and may damage the engine in the long
decided leapfrogging directly from BS-IV to BS-VI run.
grade by 1st April, 2020 for various classes of motor What is the difference between BS-IV and BS-VI?
vehicles, skipping BS-V altogether. • The main difference in standards between the existing
• Taking into account the serious pollution levels in BS-IV and the new BS-VI auto fuel norms is the
Delhi and adjoining areas, Petroleum Ministry in presence of sulphur.
consultation with Public Oil Marketing Companies has o The BS-VI fuel is estimated to bring around an
decided for preponement of BS-VI grade auto fuels in 80 per cent reduction of sulphur, from 50 parts
NCT of Delhi w.e.f 01.04.2018 instead of 01.04.2020. per million to 10 ppm.
o On April 1, 2018, Delhi became the first city in o This key reduction in sulphur makes it possible to
equip vehicles with better catalytic converters
our country to have fuel that is BS VI complaint.
India currently operates on Bharat Stage IV that capture pollutants.
emission norms for two-, three- and four- • According to analysts, the emission of NOx (nitrogen
wheelers. oxides) from diesel cars is also expected to come
• While this will lead to better air quality in the short down by nearly 70 per cent and 25 per cent from cars
term, it also means higher vehicle prices and costs, with petrol engines.
• BS-VI confers several other benefits, the most forces from the new stringent vehicular emission
important of which is limits set on Particle Number norms (BS-VI) which are set to take effect from 1st
(PN) for engines, a reference to direct injection April, 2020.
engines that emit more particulates but are more • The Ministry has also granted exemption to these
efficient and release less carbon dioxide. vehicles from BS-IV compliance.
Why do ultra-low sulphur fuels so important? • The exemption has been granted because these
• Fuel sulphur also increases emissions of sulphur vehicles operate in remote and inhospitable terrains
dioxide — a harmful ingredient of smog. with most challenging operational and environmental
• Moreover, in the oxygen-rich diesel exhaust, several conditions.
per cent of the sulphur dioxide oxidise to become • Due to security challenges and requirements of
sulphate particles and contribute to the formation of specialized operations, the development of suitable
ultra-fine particles in the exhaust, which are engine compliant with the above norms would require
considered especially hazardous because of their considerable time.
ability to penetrate deeply into the lungs. • Further, it is difficult to maintain ideal transportation
• Generally, the lower the sulphur levels, the less the and storage conditions of fuel in these conditions.
engines wear out.
• Fuel sulphur can damage and reduce efficiency of
ENERGY EFFICIENCY SERVICES LIMITED (EESL)
pg 17
the advanced emissions control systems that will
• Context: Energy Efficiency Services Ltd. (EESL)
be fitted in the BS-VI compliant vehicles to reduce
plans to sell 50,000 air-conditioners for residential and
particles and NOx.
institutional consumers under its super-efficient AC
o Advanced and sophisticated emissions control
programme (SEAP).
systems that are needed to control particulate
• In the first phase, it plans to sell 50,000 ACs on a first-
emissions in BS-VI diesel vehicles can also be
come, first served basis.
retrofitted in the current on road fleet if 10
• These Super-Efficient Air Conditioners are 40 percent
ppm sulphur fuel is available. These advanced
more efficient than, but priced comparably with, the 3-
systems are extremely sensitive to sulphur.
star ACs currently available in the market.
• Thus, all on-road vehicles benefit from ultra-low
• It would be partially supported by a grant from the
sulphur fuels.
Global Environment Facility.
Recent developments
• The programme directly addresses the prospect of the
• Hyundai India which exports almost all its models
nearly four-fold increase in energy consumption from
does not face issues with migration and the company
buildings and cooling appliances in India by 2032,
is said to be fully ready for BS-VI.
while also addressing goals of India’s Cooling
• Some new manufacturers such as Kia are entering
Action Plan and Hydrochlorofluro carbons Phase Out
the market with BS-VI vehicles.
Management Plan, enabling achievement of India’s
• Maruti Suzuki, the largest car maker in the country,
targets under the Kigali and Paris Agreements.
announced plans to discontinue selling all diesel cars
Analysis
here from April 1, 2020, citing uncertainty over
• Energy Efficiency Services Limited (EESL) is a joint
demand for such vehicles due to “significant”
venture of four national Public-Sector
increase in price once the new BS VI emission
Undertakings – NTPC Limited, Power Finance
norms kick in.
Corporation Limited, Rural Electrification Corporation
• The Ministry of Road Transport & Highways has
Limited and POWERGRID Corporation of India
exempting the armoured and other specialised
Limited under Ministry of Power.
vehicles of Indian armed forces and paramilitary
• EESL also leads the market-related activities of the Agenda and Paris Agreement, which concluded in
National Mission for Enhanced Energy Efficiency April 2019, in Copenhagen, Denmark.
(NMEEE), one of the eight national missions under • The United Nations-backed ‘Cool Coalition’
the National Action Plan on Climate Change. comprises 23 members.
• The company’s energy service model combines cost • The Global Cool Coalition is a unified front that links
reduction achieved by demand aggregation and action across the Kigali Amendment, Paris
economies of scale, which in turn have stimulated Agreement and Sustainable Development Goals.
India’s private energy efficiency investments and • India has already developed a national cooling
large-scale manufacturing. action plan that was launched by the Union
EESL is implementing the world’s largest energy environment ministry in March 2019.
efficiency portfolio Montreal Protocol
• Unnat Jyoti by Affordable LEDs for All (UJALA): • The Montreal Protocol, finalized in 1987, is a global
World’s largest zero-subsidy domestic LED bulb agreement to protect the stratospheric ozone layer
programme. by phasing out the production and consumption of
• Street Lighting National Programme (SLNP): ozone-depleting substances (ODS).
World’s largest street light replacement programme. • The stratospheric ozone layer filters out harmful
• Agriculture Demand Side management (AgDSM): ultraviolet radiation, which is associated with an:
World’s largest Agricultural Demand Side o increased prevalence of skin cancer and
Management programme. cataracts,
India Cooling Action Plan o reduced agricultural productivity, and
• India is the first country in world to develop such a o disruption of marine ecosystems.
document (ICAP), which addresses cooling • The Montreal Protocol is the first and the only
requirement across sectors and lists out actions which environmental treaty to achieve universal
can help reduce the cooling demand. ratification by all countries in the world.
• Launched by the Environment Ministry, the India • Ozone Day is observed every year on 16 September.
Cooling Action seeks to: Kigali Amendment to the Montreal Protocol
o (i) reduce cooling demand across sectors by • In October 2016, Parties to the Montreal Protocol
20% to 25% by 2037-38 adopted the Kigali amendment to phase down
o (ii) reduce refrigerant demand by 25% to 30% by production and consumption of hydrofluorocarbons
2037-38 (HFCs) worldwide.
o (iii) Reduce cooling energy requirements by 25% • Nations that ratify the Kigali Amendment are
to 40% by 2037-38 committing to cutting the projected production and
o (iv) recognize "cooling and related areas" as a consumption of hydrofluorocarbons (HFCs) by more
thrust area of research under the national S&T than 80 percent.
Programme • HFCs are widely used alternatives to ozone depleting
o (v) training and certification of 100,000 servicing substances such as hydrochlorofluorocarbons
sector technicians by 2022-23, synergizing with (HCFCs) and chlorofluorocarbons (CFCs), already
Skill India Mission. controlled under the Protocol.
Global Cool Coalition • The world can avoid up to 0.4°C of global warming
• The first-ever global coalition on clean and efficient this century through implementation of the Kigali
cooling was launched at the First Global Amendment.
Conference on Synergies between the 2030 Global Cooling Innovation Summit
• A first-of-its-kind Global Cooling Innovation Summit • The Global Environment Facility (GEF) is a
was inaugurated in New Delhi in November 2018. FINANCIAL MECHANISM for 5 major international
o It seeks to explore concrete means and environmental conventions:
pathways to address the climate threat that o The United Nations Framework Convention on
comes from the growing demand from room air Climate Change (UNFCCC);
conditioners. o The United Nations Convention on Biological
o The Global Cooling Prize was launched at this Diversity (UNCBD);
Summit. o The Stockholm Convention on Persistent
Global Cooling Prize Organic Pollutants (POPs);
• It is a global competition to spur the development of a o The United Nations Convention to Combat
radically more energy-efficient cooling technology. Desertification (UNCCD);
• The prize aims to attract talent from across sectors o The Minamata Convention on Mercury.
and around the world to design a cooling solution for a • The programme ‘Creating and Sustaining Markets
typical tropical or subtropical home that will have at for Energy Efficiency’ is jointly implemented by the
least 5x less climate impact. Global Environment Facility (GEF) and Energy
• This will be achieved through a combination of Efficiency Services Limited (EESL).
dramatically reduced consumption of grid-supplied • The aim of the project is to reduce greenhouse gas
electricity and use of lower global-warming-potential (GHG) emissions through energy efficiency through
refrigerant per unit of cooling than a typical RAC unit scaling up and new technology applications.
being sold in the market today. o The Energy Efficiency Services Limited (EESL) is
• It will also need to be affordable to typical consumers, under the Ministry of Power.
costing no more than twice the retail price of
Green – Ag: Transforming Indian Agriculture for
today’s standard units at assessed industrial scale
global environment benefits and the conservation of
(which would result in a payback period of between
critical biodiversity and forest landscapes
three and four years).
Do you know? • The government has launched the Programme in
• India is a signatory to a compact of 107 countries to collaboration with the Food and Agriculture
“substantially phase” out hydrofluorocarbons (HFC), a Organisation (FAO) and the Global Environment
potent greenhouse gas, by 2045 and move to prevent Facility (GEF).
a potential 0.5 C rise in global temperature by 2050. • The Programme will cover the high-conservation-
• Throughout the world, 2018 was the fourth hottest value landscapes of five States namely:
year, preceded by 2017, 2015 and 2016. o (i) Madhya Pradesh : Chambal Landscape,
Global Environment Facility (GEF) o (ii) Mizoram: Dampa Landscape,
• It was established on the eve of the 1992 Rio Earth o (iii) Odisha: Similipal Landscape,
Summit to help tackle our planet’s most pressing o (iv) Rajasthan: Desert National Park Landscape
environmental problems. o (v) Uttarakhand: Corbett-Rajaji Landscape.
• It is a unique partnership of 18 agencies — including • The project seeks to:
United Nations agencies, multilateral development o mainstream biodiversity, climate change and
banks, national entities and international NGOs — sustainable land management objectives and
working with 183 countries to address the world’s practices into Indian agriculture.
most challenging environmental issues. o catalyze transformative change of India’s
agricultural sector to support achievement of
national and global environmental benefits and
conservation of critical biodiversity and forest
landscapes.
o harmonize India's agricultural and environmental
sector priorities and investments to strengthen
rural livelihoods and meet its food and nutrition
security.
News in Brief
Peacock Parachute Spider or Gooty Tarantula pg 1

• Amazon Fires pg 10, 14
• Disqualification of MPs/MLAs, 10th Schedule, Whip,
Article 190, 191 etc. pg 8
• Uniform Civil Code pg 5
• Endemic to India, found in the Eastern Ghats of
• Vector Borne Diseases pg 5
Andhra Pradesh.
• Critically Endangered.
• Ujjawala Yojana pg 11
• The species had so far not been sighted in any other
• Eastern Economic Forum pg 13
part of India or Sri Lanka except its known habitat in
• Concept of Airspace pg 13
Andhra Pradesh.
Child Well-being Index pg 9
• Kerala, Tamil Nadu, Himachal Pradesh and THE HINDU ANALYSIS 29th AUGUST 2019
Puducherry topped the charts in the child well-being
FOREIGN DIRECT INVESTMENT pg 1
index, a tool designed to measure and tracks • Context: The Union Cabinet announced a number of
children’s well-being comprehensively. decisions designed to attract increased foreign
• Meghalaya, Jharkhand and Madhya Pradesh featured direct investment into the country.
at the bottom, as per a report released by the non Analysis
government organisation World Vision India and • Govt. eased local sourcing norms for single-
research institute IFMR LEAD. brand retail companies.
• The dimensions of the index include healthy individual o Currently, the FDI policy says that a single-brand
development, positive relationships and protective retail company with more than 51% FDI needs to
contexts. source 30% of its goods from within India.
• Focusing on these three key dimensions, 24 o The new decision says that this 30% can be
indicators were selected to develop the computation calculated over the first five years of operation.
of the child well-being index. o Further, sourcing for exports will also count
towards the local sourcing requirement.
• Another change the Cabinet has approved is that
single-brand retail companies can now start
selling online before setting up a brick and mortar classified as FPI again? No! Once an FDI always an
store as long as they set one up within two years of FDI.
starting online sales. Earlier, they had to set up a brick • The Capital instruments permitted for receiving
and mortar store before selling online. foreign investment in an Indian company are:
• The current FDI policy provides for 100% FDI under o equity shares;
the automatic route in the manufacturing sector. o debentures;
There was no specific provision for contract o preference shares; and
manufacturing in the policy. It has now decided to o share warrants issued by the Indian company.
allow 100% FDI under the automatic route in Automatic Route
contract manufacturing in India as well. • Under this route no Central Government or the RBI
• It has decided to permit 26% FDI, with government permission is required.
approval, for uploading and streaming news and Government Route
current affairs using digital media, on the lines of print • Proposals for foreign investment would be filed online
media. on the Foreign Investment Facilitation Portal.
• It has been decided to permit 100% FDI under • Department of Industrial Policy & Promotion
automatic route for sale of coal, for coal mining (DIPP), Ministry of Commerce and Industry will
activities including associated processing identify the concerned Administrative
infrastructure. Ministry/Department and e-transfer the proposal to the
Foreign Direct Investment Vs Foreign Portfolio same within 2 days.
Investment? o In respect of applications in which there is a
• Foreign Direct Investment (FDI) is the investment doubt as to which is the concerned
through capital instruments by a person resident Administrative Ministry/Department, DIPP shall
outside India: identify the Administrative Ministry/Department.
o (a) in an unlisted Indian company; or • Once the proposal is received, same shall be
o (b) in 10 percent or more of the post issue paid- circulated online within 2 days by DIPP to Reserve
up equity capital on a fully diluted basis of a Bank of India for comments from Foreign Exchange
listed Indian company. Management Act perspective.
❖ Fully diluted basis means the total number of • In case of proposals involving total foreign equity
shares that would be outstanding if all possible inflow of more than Rs 5000 crore, Competent
sources of conversion are exercised. Authority shall place the same for consideration of
• Foreign Portfolio Investment is any investment Cabinet Committee on Economic Affairs.
made by a person resident outside India in capital • Further, all proposals would be forwarded to Ministry
instruments where such investment is of External Affairs (MEA) and Department of Revenue
o (a) less than 10 percent of the post issue paid- (DoR) for information.
up equity capital on a fully diluted basis of a • Sectors/activities requiring Government approval:
listed Indian company or o Mining
o (b) less than 10 percent of the paid up value of o Defence
each series of capital instruments of a listed o Broadcasting
Indian company. o Print Media
• For an FPI investment, once the investment is o Civil Aviation
classified as FDI (basis total holding), if the FDI o Satellites
holding comes back to <10%, will the holdings be o Private Security Agencies
o Trading (Single, Multi brand and Food Product concurrence of DIPP shall compulsorily be sought
Retail Trading) by the Competent Authority.
o Banking (Public and Private) FDI from Countries of Concern
o Pharmaceuticals • FDI applications involving investments from
o FDI proposals by Non-Resident Indians (NRIs)/ Countries of Concern (Pakistan and Bangladesh),
Export Oriented Units (EOUs) requiring approval requiring security clearance are to be processed by
of the Government the Ministry of Home Affairs (MHA) for investments
o Application relating to issue of equity shares falling under automatic route sectors, while cases
under the FDI policy under the Government route pertaining to government approval route sectors
for import of capital goods/machinery/equipment requiring security clearance are to be processed by
(excluding second-hand machinery) the respective Administrative Ministries/Departments.
o Applications relating to issue of equity shares for • For investments in automatic route sectors,
pre-operative/pre-incorporation expenses requiring approval only on the matter of
(including payments of rent etc.) investment being from country of concern, FDI
o Financial services which are not regulated by any applications would be processed by Department
Financial Sector Regulator or where only part of of Industrial Policy & Promotion (DIPP) for
the financial services activity is regulated or Government approval.
where there is doubt regarding the regulatory In short:
oversight • Countries of Concern + requiring security clearance +
o Applications for foreign investment into a Core automatic route = Ministry of Home Affairs.
Investment Company or an Indian company • Countries of Concern + requiring security clearance +
engaged only in the activity of investing in the government approval route = Respective
capital of other Indian Company/ies Administrative Ministries/Departments.
• Proposals for foreign investment in sectors requiring • Countries of Concern + No security clearance +
security clearance would additionally be referred to automatic route = Department of Industrial Policy &
Ministry of Home Affairs for comments. Promotion.
• Following proposals will require security clearance
G7 SUMMIT, BIARRITZ, FRANCE pg 10
from Ministry of Home Affairs: • Context: The latest G7 summit was concluded in
o i. Investments in Broadcasting, Biarritz, France in August 2019.
Telecommunication, Satellites - establishment Analysis
and operation, Private Security Agencies, • The summit took place under the French presidency
Defence, Civil Aviation and Mining & mineral of the G7, which is centred around the fight against
separation of titanium bearing minerals and ores, inequalities.
its value addition and integrated activities. o With that goal in mind, the French G7 presidency
o ii. Investments from Pakistan and Bangladesh has adjusted the format of the G7 to involve
(called ‘countries of concern’). international partners and representatives of civil
• The Competent Authority shall, from the receipt of the
society.
proposal, process the proposal for decision within the Main Outcomes
next eight weeks/ten weeks (in cases where • Iran
comments of Ministry of Home Affairs have been o G7 countries reaffirmed their commitment that
sought from security clearance point of view). Iran never acquires nuclear weapons and to
• In respect of proposals where the Competent foster peace and stability in the region.
Authority proposes to reject the proposals • Amazon Rainforest
o Leaders also agreed to disburse €20m to finance o Leaders have been meeting in the G7 format
aeroplanes to fight the wildfires in the Amazon since 2014 following the Russian Federation's
rainforest. violation of Ukraine's sovereignty and territorial
• Ukraine and Russia integrity.
o On Ukraine, leaders agreed that France and • They have 62% of the global wealth.
Germany will organize a Normandy format • They represent 46% of the global GDP.
summit in the coming weeks to achieve tangible • Decisions taken at the G7 are not legally binding,
results. but exert strong political influence.
• Hong Kong The EU as G7 Member
o The G7 leaders also reaffirmed the existence • The European Union is a unique supranational
and importance of the Sino-British Joint organisation – not a sovereign Member State – hence
Declaration of 1984 on Hong Kong and called the name G7 “Group of Seven”.
for violence to be avoided. • The EU is therefore a ‘non-enumerated’ member and
• Libya does not assume the rotating G7 presidency.
o On Libya, they supported a truce that will lead to o Nevertheless, the 2014 G7 Summit was hosted
a long-term ceasefire. by the EU in Brussels.
• Trade o This was on account of Russia’s membership
o The G7 wishes to overhaul the WTO to improve having been suspended, and because Russia
effectiveness with regard to intellectual property originally held the G8 Presidency that year.
protection, to settle disputes more swiftly and to • Originally, the role of the EU was limited to those
eliminate unfair trade practices. areas in which it had exclusive competences, but this
• Africa role has expanded over time.
o G7 leaders endorsed a new framework between • The rotation of the presidency is as follows: Japan in
the G7 and Africa. 2016, Italy in 2017, Canada in 2018, France in 2019,
o The results of the talks are reflected in the the USA in 2020, and the United Kingdom in 2021.
Biarritz Declaration for a G7 and Africa
CABINET COMMITTEES PG 15
Partnership. • Context: The approval by the Cabinet Committee on
• Climate change and oceans Economic Affairs for sugar export subsidy would
o On climate change, the EU and other G7 help reduce the surplus sugar inventory, according to
partners reaffirmed their commitment to the full the Indian Sugar Mills Association (ISMA).
and effective implementation of the Paris Analysis
Agreement. • In a parliamentary democracy, prime minister is the
• No Joint Communiqué executive head of the government, while the head of
o It came as no surprise that the summit ended as state is a largely ceremonial monarch or president.
it did: for the first time in the grouping’s 44-year • In most cases, the prime minister sets up different
old history, there was no joint communiqué. cabinet committees with select members of the
About the G7 summit
cabinet and assigns specific functions to such
• G7 consists of Canada, U.S., U.K., Italy, France, committees for smooth and convenient functioning
Germany and Japan – the seven largest advanced of the government.
economies. • The government of India’s (transaction of business)
• Earlier it was G-8 when Russia was suspended from rules, 1961, empower the Prime Minister to set up,
it because of Russia's annexation of Crimea, a part of add, reduce or modify the numbers and functions
Ukraine. of cabinet committees.
• Currently, there are eight Cabinet committees. OPEN MARKET OPERATIONS (OMOs) pg 15
• The Prime Minister is a member and hence • Context: Large scale open market operations
chairman of the following Cabinet Committees: (OMO) conducted by the Reserve Bank of India (RBI)
o Cabinet Committee on Appointments and higher earnings from foreign exchange operations
o Cabinet Committee on Economic Affairs helped boost the central bank’s surplus to record
o Cabinet Committee on Political Affairs levels in 2018-19.
o Cabinet Committee on Security • The RBI posted a surplus of ₹1.23 lakh crore in 2018-
o Cabinet Committee on Investment and Growth 19 compared to ₹50,004 crore in 2017-18 and
o Cabinet Committee on Employment and Skill ₹30,663 crore in 2016-17.
development. • Recently, the central bank had approved the transfer
• The Prime Minister is not a member of the of ₹1.76 lakh crore to the government as per the
following Cabinet Committees: revised Economic Capital Framework.
o Cabinet Committee on Parliamentary Affairs Analysis
o Cabinet Committee on Accommodation • Open Market Operations are defined as purchase and
• Note: The order of precedence is the order in which sale by central bank of variety of assets such as
Cabinet ministers take the oath of office. foreign exchange, gold, Government securities or
Cabinet Committee on Security (CCS) treasury bills and even company shares.
• The Prime Minister chairs the CCS which comprises • The objective of OMO is to regulate the money
o the minister of external affairs, supply (liquidity) in the economy.
o the home minister, o Liquidity has a bearing on both interest rates
o the finance minister, and and inflation rates.
o the defence minister. • When the RBI wants to increase the money supply in
Functions of Cabinet Committee on Security the economy, it purchases the government securities
• To deal with all defence related issues. from the market and it sells government securities to
• To deal with issues relating to law and order and suck out liquidity from the system.
internal security. • RBI carries out the OMO through commercial banks
• To deal with policy matters concerning foreign and does not directly deal with the public.
affairs that have internal or external security • OMO is one of the major monetary policy
implications, including cases relating to agreements instruments that RBI uses to smoothen the liquidity
with other countries on security-related issues. conditions through the year and minimise its impact
• To deal with economic and political issues on the interest rate and inflation rate levels.
impinging on national security. • These operations are often conducted on a day-to-
• To review the manpower requirements relating to day basis in a manner that balances inflation while
national security and setting up new structures to helping banks continue to lend.
deal with security-related issues. • The RBI uses OMO along with other monetary
• To consider all cases involving capital expenditure of policy tools such as repo rate, cash reserve ratio and
more than rupees one thousand crore in respect of statutory liquidity ratio to adjust the quantum and price
Department of Defence Production and Department of of money in the system.
Defence Research and Development • If central bank signals that it will move to a ‘neutral’
• All matters relating to atomic energy. liquidity stance from a ‘deficit’ stance, it means
• To consider cases of increase in the firmed up cost more liquidity in the system in future. This could arm
estimates or revised cost estimates. banks with more funds for lending, and lead to softer
interest rates in the economy.
MONETARY VS FISCAL POLICY
• Monetary policy (formulated by the central bank or
currency board) controls the supply of money, often
targeting an inflation rate or interest rate to ensure
price stability and general trust in the currency.
Instruments of Monetary Policy
These instruments can be categorized as:
• Quantitative Measures: These are the traditional
measures of monetary control. All the quantitative
methods affect the entire credit market in the same
direction. This means their impact on all the sectors of
the economy is uniform.
• Qualitative Measures: The credit objectives of these
methods may include rationing the credit, directing the
flow of credit from least important sectors to the most Credit rationing
important sectors, controlling a speculating tendency • Credit rationing is the limiting by lenders of the supply
based on the availability of bank credit. of additional credit to borrowers who demand funds,
even if the latter are willing to pay higher interest rates.
The quantitative instruments of the monetary policy
are:
Bank rate
• It is the rate of interest which a central bank charges
on its loans and advances to a commercial bank.
Cash Reserve Ratio (CRR)
• Banks need to hold some portion of their deposits in
cash with the RBI. This ratio is called CRR.
• If the RBI cuts CRR, banks will be left with more
money to lend or invest. On the other hand, if the
The qualitative instruments of the monetary policy CRR is raised, banks will have lesser money to lend.
are: Statutory Liquidity Ratio (SLR)
• Banks also have to invest a certain portion of their
deposits in government securities with the RBI. This
percentage is known as SLR.
• Banks can earn return on these investments. The
current SLR is 19.5%.
What is the repo rate?
• Repo rate refers to the rate at which commercial
banks borrow money from the Reserve Bank of India
(RBI) in case of shortage of funds at a fixed interest
rate.
• Technically, a repo is also known as “Repurchasing
Option”.
o a. Banks provide eligible securities (securities • The interest rate for MSF borrowing was originally
recognized by the RBI and at the same time set at one percent higher than the repo rate. Now
which are above the Statutory Liquidity it is 0.25% higher than repo rate.
Ratio limit). • The Reserve Bank will reserve the right to accept or
o b. RBI gives 1 day or overnight loan to the bank. reject partially or fully, the request for funds under this
o c. RBI charges an interest rate called repo rate facility.
from the bank. Monetary Vs Fiscal Policy
o d. Banks repay the loan after one day and • Monetary policy involves changing the interest rate
repurchase the security it has given as collateral. and influencing the money supply.
• The higher the repo rate, the higher the cost of short- • Fiscal policy involves the government changing tax
term money to the banks and vice versa. rates and levels of government spending to influence
• Generally, whenever the repo rate is raised, banks aggregate demand in the economy.
pass the burden on to customers. Administered by:
What is the reverse repo rate? • Fiscal policy: Ministry of Finance
• A Reverse repo rate is a rate which the RBI offers to • Monetary policy: Central Bank/RBI
banks when they deposit their surplus cash with the Focuses on:
RBI for shorter periods. • Fiscal policy: Economic Growth
• In other words, it is the rate at which the RBI borrows • Monetary policy: Economic Stability
from the commercial banks. Political influence:
• When banks have excess funds but don’t have any • Fiscal policy: Yes
other lending or investment options, they deposit/lend • Monetary policy: No
the surplus funds with the RBI and earn interest on • Monetary policy is quicker to implement. Interest rates
the deposited funds. can be set every month.
• It is always lower than repo rate. • A decision to increase government spending may take
• The Repo Rate increases the money supply while time to decide where to spend the money.
the Reverse Repo Rate decreases the money Monetary Policy Committee (MPC)
supply in the economy. • The Monetary Policy Committee (MPC) is a
What is Marginal Standing Facility? committee of the Central Bank in India (Reserve Bank
• Marginal Standing Facility is a liquidity support of India), headed by its Governor.
arrangement provided by RBI to commercial banks if • It is entrusted with the task of fixing the benchmark
the latter doesn’t have the required eligible securities policy interest rate (repo rate) to contain inflation
above the SLR limit. within the specified target level.
• Under MSF, a bank can borrow one-day loans from o Repo rate is the rate at which the central bank of
the RBI, even if it doesn’t have any eligible securities a country lends money to commercial banks in
excess of its SLR requirement. the event of any shortfall of funds. It is also used
• In the case of MSF, the bank can borrow up to 1 % by monetary authorities to control inflation.
(can be changed by the RBI) below the SLR (means o Reverse repo rate is the rate at which the
1% of Net Demand and Time Liabilities or liabilities central bank of a country borrows money from
simply). commercial banks within the country. It is a
• But the main condition is that for such borrowings monetary policy instrument which can be used to
the bank has to give higher interest rate to the RBI. control the money supply in the country.
• It is defined and constituted under the Reserve Bank
of India Act, 1934 to provide for a statutory and
institutionalised framework, for maintaining price Trade in Endangered Species on Wild Fauna and
stability, while keeping in mind the objective of growth. Flora) have been approved.
Composition: • These species have been listed under Appendix I of
• The new MPC is to be a six-member panel. CITES and will now enjoy the highest degree of
• It will feature three members from the RBI — the protection as there will be a complete international
Governor, a Deputy Governor and another official — ban enforced on their trade.
and three independent members to be selected by the • Also, Tokay geckos have been included in Appendix II
Government. of CITES.
• A search committee will recommend three external • The upgradation was approved at the Conference of
members, experts in the field of economics, banking the Parties (COP18) held at Geneva, Switzerland.
or finance, for the Government appointees. Analysis
• The meetings of the Monetary Policy Committee shall • The proposals submitted were regarding changes in
be held at least 4 times a year and it shall publish its the listing of the smooth-coated otter (Vulnerable),
decisions after each such meeting. small-clawed otter (Vulnerable), Indian star tortoise
• The decisions on monetary policy are taken by a (Vulnerable), Tokay gecko (Least Concern),
majority vote. wedgefish and Indian rosewood (Vulnerable).
o And if there’s a tie, the RBI governor gets the • The small clawed otter lives in wetlands stretching
deciding vote. from India through Southeast Asia. India, Nepal and
• The Members of the Monetary Policy Committee the Philippines had proposed transferring it from
appointed by the Central Government shall hold office Appendix II to Appendix I, citing the high risk of
for a period of four years. extinction due to the international pet trade (as well as
• Inflation Targets: the loss and degradation of its habitat).
o Inflation Target: Four per cent. o Bangladesh, India and Nepal had also noted the
o Upper tolerance level: Six per cent. high risk of extinction in arguing for transferring
o Lower tolerance level: Two per cent. the smooth-coated otter from Appendix II to I.
• In case the inflation target is failed to achieve (2% • The star tortoise boasts a unique and striking shell
higher or lower than the set target of 4% for pattern that appeals to the pet trade; Bangladesh,
continuous three quarters), the RBI has to give an India, Senegal and Sri Lanka had proposed
explanation to the government about the reasons, the transferring it from Appendix II to Appendix I.
remedial actions and the estimated time for realizing • A similar proposal had been made to include the
the target. Tokay gecko in Appendix I.
• Another responsibility for the RBI is to publish a • A diverse group of 34 countries (including India) had
Monetary Policy Report every six months, elaborating proposed that CITES manage trade in two species of
inflation forecasts and inflation sources for the next six wedgefishes, which have experienced rapid
to eighteen months. population declines of 80% or more in some regions.
• MPC uses 'headline inflation' to take its decision. • The proposal on North Indian rosewood was the only
Headline inflation is the raw inflation figure reported one at CoP18 recommending that a species be
through the Consumer Price Index (CPI). deleted from the CITES appendices.
o Bangladesh, Bhutan, India and Nepal propose
CITES pg 22
• Context: India’s proposal to upgrade the protection of removing this tree, which is used for timber and
star tortoises, the smooth-coated otter and small- many other purposes, from Appendix II because
clawed otters in CITES (Convention on International it is abundant and sustainably harvested.
• Note: TRAFFIC is an international wildlife trade • Appendix III contains species that are protected in at
monitoring network. least one country, which has asked other CITES
CITES Parties for assistance in controlling the trade.
• CITES (the Convention on International Trade in o Changes to Appendix III follow a distinct
Endangered Species of Wild Fauna and Flora) is an procedure from changes to Appendices I and II,
international agreement between governments. as each Party’s is entitled to make unilateral
• Its aim is to ensure that international trade in amendments to it.
specimens of wild animals and plants does not News in brief
threaten their survival. Updates on Aadhaar pg 1
• The convention resulted from a resolution adopted at • According to the policy of the Unique Identification
a 1963 meeting of member countries of the Authority of India (UIDAI), tasked with enrolling
International Union for Conservation of Nature (IUCN). citizens under the programme, if an individual is
• Although CITES is legally binding on the Parties – in unable to produce a proof of birth at the time of
other words they have to implement the Convention – registration, they can declare it without supporting
it does not take the place of national laws. documents. In case they don’t remember the date,
• The species covered by CITES are listed in three merely stating the age will do.
appendices on the degree of protection they require. • The UIDAI had clarified that as per its policy, if a
• For many years CITES has been among the person was only able to declare his or her age during
conservation agreements with the largest membership, enrolment, the system by default takes January 1 of
with now 183 Parties. that year as the date of birth.
• In addition to plants and animals and their parts, the • At a later stage if the person is able to provide proof of
agreement also restricts trade in items made from date of birth, he/she can update the date of birth in
such plants and animals, such as clothing, food, Aadhaar by visiting any Aadhaar Kendra.
medicine, and souvenirs. • Note: A complete article on Aadhaar has already
• By 2019 more than 5,800 animal and 30,000 plant been covered.
species had been classified.
Solar Energy Policy pg 11
• The Parties to CITES are collectively referred to as
• In 2012, Tamil Nadu released its Solar Energy Policy
the Conference of the Parties. Every two to three
and introduced a net-metering mechanism for rooftop
years, the Conference of the Parties meets to review
solar panels, becoming the first Indian State to do
the implementation of the Convention.
so.
Appendices
• The net-metering arrangement allowed surplus solar
• The species covered by CITES are listed in three
energy exported by consumers to the grid to be
Appendices, according to the degree of protection
credited in energy units (kWh).
they need.
S-400 Triumf Air-defense System pg 12
• Appendix I includes species threatened with
• The S-400 Triumf is Russia's most advanced air-
extinction.
defense hardware, and comes at a lower price than its
o Trade in specimens of these species is permitted
U.S. competitor, the Patriot.
only in exceptional circumstances.
• It is capable of firing three types of missiles to
• Appendix II includes species not necessarily
create a layered defense.
threatened with extinction, but in which trade must be
• It can bring down aircrafts and missiles at a range of
controlled in order to avoid utilization incompatible
up to 400km.
with their survival.
• India is in talks with Russia to buy this system.
• It also integrates a multi-function radar, autonomous o Desire for sameness
detection and targeting systems, missile launchers, o Distinctive strengths
and command posts. • Strengths can include:
• China was the first country to buy the weapon from o Remarkable focus and persistence
Russia. o Aptitude for recognizing patterns
• India is also in the process of buying five S-400 o Attention to detail
systems from Russia. • Challenges can include:
• Russia plans to launch the S-500, the successor of o Hypersensitivities (to lights, sounds, tastes, etc.)
the S-400, in the 2020s. o Difficulty with the give and take of conversation
• CAATSA (Countering America's Adversaries o Difficulty with nonverbal conversation skills
through Sanctions Act) is an Act of U.S. which (distance, loudness, tone, etc.)
places sanctions on countries having significance o Uncoordinated movements, or clumsiness
interests in Russian, Iranian, and North Korean o Anxiety and depression
defence or intelligence sectors. Already analysed in previous issues
Fridays For Future pg 22 • Vector Borne Diseases pg 2
• Fridays For Future is a movement that began in • Hong Kong Protests pg 14
August 2018, after 15 years old Greta Thunberg sat • Article 370
in front of the Swedish parliament every schoolday for
three weeks, to protest against the lack of action on
the climate crisis.
• She posted what she was doing on Instagram and INDEX
Twitter and it soon went viral. PROJECT-75 INDIA (PROJECT-75 I) pg 1
• On the 8th of September, Greta decided to continue • Russia is likely to offer India its conventional
striking every Friday until the Swedish policies submarines on the government-to-government route
provided a safe pathway well under 2-degree C, i.e. in under the Navy’s Project-75I at the summit between
line with the Paris agreement. Indian Prime Minister and Russian President at
• The hashtags #FridaysForFuture and #Climatestrike Vladivostok in September 2019.
spread and many students and adults began to • The government-to-government route will save a lot of
protest outside of their parliaments and local city halls time in the procurement process.
all over the world. This has also inspired the Belgium Analysis
Thursday school strikes. Project 75(I)
Asperger Syndrome pg 22 • Under Project 75I India will purchase 6 next
• Asperger syndrome (AS) is a developmental generation diesel submarines with Air Independent
disorder characterised by significant difficulties in Propulsion System (AIP) technology for the Indian
social interaction and non-verbal communication, Navy by 2022.
along with restricted and repetitive patterns of • Conventional diesel-electric submarines have to
behaviour and interests. surface every few days to get oxygen to recharge
• Typical to strong verbal language skills and their batteries.
intellectual ability distinguish Asperger syndrome • With AIP systems, they can stay submerged for much
from other types of autism. longer periods.
• It generally involves: • Project 75-I will probably have both:
o Difficulty with social interactions o vertical launched BrahMos for the sea & land
o Restricted interests targets and
o tube-launched torpedoes for anti-submarine • It is defined as afforestation done in lieu of the
warfare. diversion of forest land for non forest use under the
• The procurement was approved by the Defence Forests (Conservation) Act, 1980.
Acquisition Council (DAC) in January 2019 although • The Act establishes the National Compensatory
it's been in the works since December 2007. Afforestation Fund under the Public Account of India,
• All six submarines under the project will be built in and a State Compensatory Afforestation Fund under
India by the selected Indian Strategic Partner in the Public Account of each state.
collaboration with original equipment manufacturer • These Funds will receive payments for:
(OEM) selected by the government. o (i) compensatory afforestation,
o In addition, Indian Navy should have the option o (ii) net present value of forest (NPV), and
to manufacture six more submarines under the o (iii) other project specific payments.
project. • The National Fund will receive 10% of these funds,
• The project is under the Strategic Partnership (SP) and the State Funds will receive the remaining 90%.
model, and is the second project to be processed • These Funds will be primarily spent on afforestation to
through this route after the Navy’s tender for utility compensate for loss of forest cover, regeneration of
helicopters. forest ecosystem, wildlife protection and infrastructure
Strategic Partnership Model in Defence Acquisition development.
• The policy is to encourage broader participation of • The Fund can also be used for catchment area
the private sector, in addition to DPSUs/OFB, in the treatment, wildlife management, forest fire prevention,
manufacture of defence platforms. soil and moisture conservation work in the forest....it
• The following four segments have been identified for cannot be used for payment of salary, travelling
acquisition under Strategic Partnership (SP) route: allowances, making buildings and buying office
o Fighter Aircraft equipment for forest officers.
o Helicopters • The balance with both funds will be non-lapsable and
o Submarines get interest as per a rate declared by the central
o Armoured Fighting Vehicles (AFVs) / Main Battle government on a yearly basis.
Tanks (MBTs).
GEOGRAPHICAL INDICATION pg 9
• The Strategic Partnership Model (SPM) is a different • Context: Two well-known products from Tamil Nadu
category of Capital Acquisition in addition to the — Dindigul lock and Kandangi saree — have been
existing categories as mentioned in Chapter-I of DPP- given the Geographical Indication (GI) tag by The
2016 i.e. ‘Buy (Indian-IDDM)’; ‘Buy (Indian)’; ‘Buy & Geographical Indications Registry in Chennai.
Make (Indian)’; ‘Buy & Make’ and ‘Buy (Global)’. • More than 3,125 lock manufacturing units are limited
COMPENSATORY AFFORESTATION pg 9 to an area of 5 km in and around Dindigul. The

• Context: The Union Environment Ministry transferred abundance of iron in this region is the reason for the
₹47,436 crore to 27 States for afforestation. growth of the industry.
• These are long-pending dues part of the Analysis
Compensatory Afforestation Fund (CAF), a What is a Geographical Indication?
₹54,000 crore tranche that has been collected for Already Covered.
nearly a decade as environmental compensation from
COLLEGIUM SYSTEM pg 13
industry, which has razed forest land for its business • Context: The Supreme Court Collegium is learnt to
plans.
have recommended four high court judges for
Analysis
Compensatory Afforestation appointment to the apex court.
Analysis Constitution, was being undermined by the
What is the Collegium system of appointing judges primacy of the executive in key appointments.
to the High Court and Supreme Court? • First Judges Case: Primacy of the Chief Justice of
• The Collegium is the system of appointment and India (CJI) was not really to be found in the
transfer of judges that has evolved through Constitution.
judgments of the Supreme Court, and not by an Act o In the First Judges Case (1981), the apex court
of Parliament or by a provision of the Constitution. held (4-3) that in the appointment of a judge of
• The Constitution confers the power of appointment of the Supreme Court or the High Court, the word
judges on the President of India i.e. the Government “consultation” in Article 124(2) and in Article
of India to be made in consultation with the Chief 217(1) of the Constitution does not mean
Justice of India and other judges of the Supreme “concurrence”.
Court and the High Courts. o In the event of a disagreement, the “ultimate
• The Supreme Court Collegium is headed by the Chief power” would rest with the Union Government
Justice of India and comprises four other seniormost and not the CJI.
judges of the court. o The First Judges Case, therefore, was an
• A High Court Collegium is led by its Chief Justice and instance where the apex court acted against its
four other seniormost judges of that court. own interests.
o Names recommended for appointment by a High • Second Judges Case: A specific procedure called
Court Collegium reaches the government only ‘Collegium System’ for the appointment and transfer
after approval by the CJI and the Supreme of judges in the higher judiciary.
Court Collegium. o In the Second Judges Case (1993), the court (7-
• Judges of the higher judiciary are appointed only 2) overruled the First Judges Case, holding that
through the Collegium system — and the in the event of conflict between the President and
government has a role only after names have the CJI with regard to appointments of Judges, it
been decided by the Collegium. was the Chief Justice of India whose opinion
o The government’s role is limited to getting an would not only have primacy, but would be
inquiry conducted by the Intelligence Bureau (IB) determinative in the matter. Thus, the
if a lawyer is to be elevated as a judge in a High President’s recommendation were made non-
Court or the Supreme Court. binding.
o It can also raise objections and seek o The 1993 verdict also gave birth to the Collegium
clarifications regarding the Collegium’s choices, System. This was the collection of the CJI and
but if the Collegium reiterates the same the two most senior judges of the SC or the HC,
names, the government is bound, under depending on the case.
Constitution Bench judgments, to appoint o What this did was in effect “moderate” the CJI’s
them as judges. powers when it comes to the appointment of
• This system of appointments emerged out of three judges.
rulings of the Supreme Court collectively passed • Third Judges Case: Recommendation should be
known as the Three Judges Case, culminating in made by the CJI and his four seniormost colleagues,
the historic Supreme Court Advocates-on-Record instead of two.
Association Vs Union of India 1993 judgement. • Finally, in the Third Judges Case (1998), the SC
o In its landmark 1993 judgment, the apex court reaffirmed its 1993 judgement and expanded the
held that the independence of the judiciary, Collegium to include the CJI and the four most-senior
which is part of the basic structure of the judges of the court after the CJI.
What does the Constitution says? severe diarrhoea and severe respiratory infections
• The procedure listed in the Constitution for judicial such as pneumonia.
appointments comes under Articles 124(2) and 217. • Most measles-related deaths are caused by
• Every Judge of the Supreme Court shall be appointed complications associated with the disease.
by the President by warrant under his hand and A Contrasting Scene
seal after consultation with such of the Judges of the • In July 2019, Sri Lanka became the fourth country in
Supreme Court and of the High Courts in the States the Asian region — after Bhutan, The Maldives and
as the President may deem necessary for the purpose Timor-Leste — to eliminate measles.
and shall hold office until he attains the age of sixty- • Measles is considered as eliminated when a country
five years. interrupts transmission of an indigenous virus for
• "Provided that in the case of appointment of a Judge three years.
other than the Chief Justice, the Chief Justice of India • Amidst an increase in the number of cases worldwide,
shall always be consulted,” says Article 124(2). especially in Europe, this came as an encouraging
• “Every Judge of a High Court shall be appointed by development.
the President by warrant under his hand and seal • Countries with the most reported cases include
after consultation with the Chief Justice of India, the Madagascar, Ukraine, India, Nigeria, Kazakhstan,
Governor of the State, and, in the case of Chad, Myanmar, Thailand, the Philippines and
appointment of a Judge other than the Chief Justice, Democratic Republic of the Congo.
the Chief Justice of High Court,” says Article 217. • The disease is almost entirely preventable through
two doses of a safe and effective vaccine.
MEASLES CASES 3 TIMES MORE THAN LAST
• For several years, however, global coverage with the
YEAR pg 22
• Context: Every region in the world, except the first dose of measles vaccine has stalled at 85%. This
Americas, is experiencing an increase in the number is still short of the 95% needed to prevent outbreaks,
of cases of measles, a vaccine-preventable disease and leaves many people, in many communities, at risk.
that can kill or disable children, the World Health • Second dose coverage, while increasing, stands at
Organization (WHO) said. 67%.
• Nearly three times as many cases were reported from • Ironically, the sharp increase in the European region
January to July this year than in the same period in came despite vaccination coverage for the second
2018, the WHO said. dose being at a record-high of 91% in 2018. So what
• The biggest outbreaks are raging in the Democratic could have caused the spike?
Republic of Congo (155,460 cases), Madagascar • According to the WHO, the vaccination coverage has
(127,454) and Ukraine (54,246). “not been uniform across the region nor high enough
• Europe has also lost ground, with four countries to ensure herd immunity” to break the transmission
stripped of their "measles-free" status in 2018 - cycle.
Albania, Czech Republic, Greece and Britain. • Further, though the coverage is high at the national
Analysis level in many countries, there are pockets of low
Measles coverage in them, causing an “accumulation of
• Measles is a highly contagious viral disease that is susceptible individuals” that goes largely unnoticed till
spread by contact with an infected person through such time an outbreak occurs.
coughing and sneezing. Measles in India
• Measles weakens the immune system of the body. • The current global resurgence in measles is having its
• Hence infection with Measles often leads to serious resonance in Kerala too, which has been witnessing a
complications that include blindness, encephalitis, serious surge in the disease since January.
• In Kerala, however, majority of the cases are reported • Presently, Indian Railways operate 5 luxury tourist
from Thiruvananthapuram, which has good trains (Palace on Wheels, Royal Rajasthan on Wheels,
vaccination coverage and amongst people who are Deccan Odyssey, Golden Chariot and Maharajas’
well-nourished and have received at least one dose of Express) in association with State Tourism
vaccine in their lifetime. Corporations/Indian Railway Catering and Tourism
• Historically, measles has been a childhood disease. Corporation.
However, Kerala is reporting over 50% cases in the Tamil Nadu plans underwater excavations pg 9
19-40 year age group. • In a bid to unravel the past trade links of the ancient
Cause of adult Measles Tamils, the State Archaeology Department is planning
• When universal routine immunisation in childhood to carry out underwater excavations in areas of the
improves and the virus is still in circulation, the port cities and towns that existed during the Sangam
disease will naturally move to the older age group and medieval periods.
who may be unimmunised or whose vaccine-derived • The objective is to probe trade contacts with Greek,
immunity has begun to wane. Roman and Arab merchants.
• Though measles vaccine is highly immunogenic, as Indian Currency pg 10
part of the national measles elimination strategy, a • India has low sovereign rating and the Indian rupee
mandatory second dose at 15-18 months was does not have reserve currency status (China's
introduced in 2010, so that there is better immune Yuan or Renminbi is also not one).
protection. • The revised economic capital framework
• It is fairly certain that those currently in the 18-40 recommended by the committee makes a distinction
years age group have not had the protection of the in the economic capital of the RBI between
second dose and may be one reason for the increase ‘revaluation reserves’ and ‘realised equity’.
in cases in this age group. • Revaluation reserves, it held, are a risk buffer against
News in brief market risks and not available for transfer.
People for the Ethical Treatment of Animals (PETA) Fit India Movement pg 9
pg 7 • It has been launched to encourage healthy lifestyles.
• It is the largest animal rights organization in the • The National Sports Day in India is celebrated to mark
world. the birth anniversary of hockey legend Major Dhyan
• PETA focuses its attention on the four areas: Chand.
o animals in the food industry Cryosphere pg 14
o animals in the clothing trade • Some places on Earth are so cold that water is a
o animals in laboratories, and solid—ice or snow. Scientists call these frozen places
o animals in the entertainment industry. of our planet the "cryosphere."
• PETA also work on a variety of other issues, including • Examples: The Arctic, The Antarctic and the In
the cruel killing of rodents, birds, and other animals Between (higher mountain elevations).
who are often considered “pests” as well as cruelty to Storm Surge pg 14
domesticated animals. • Storm surge is an abnormal rise of water generated
• PETA works through public education, cruelty by a storm, over and above the predicted
investigations, research, animal rescue, legislation, astronomical tides.
special events, celebrity involvement, and protest • Storm surge is produced by water being pushed
campaigns. toward the shore by the force of the winds moving
Luxury Trains of Indian Railways pg 8 cyclonically around the storm.
• The impact on surge of the low pressure associated
with intense storms is minimal in comparison to the
water being forced toward the shore by the wind.
• Other factors which can impact storm surge are the
width and slope of the continental shelf. A shallow
slope will potentially produce a greater storm surge
than a steep shelf.
• Article 370 pg 10
• All about lightning from UPSC point of view pg 6
• Amendment in FDI Rules pg 10
• Enforcement Directorate pg 10 • Following all these mergers, the country will have a
• RBI Transfers pg 10 total of 12 public sector banks, half of which—Punjab
• Afghan Peace Deal pg 14 National Bank, Canara Bank, Union Bank of India,
• Yemen Crisis pg 14 Indian Bank, State Bank of India, and Bank of
Baroda—will be able to compete at a global level.
THE HINDU ANALYSIS 31st AUGUST 2019 • Previously, the government has already merged State
Bank of India with its affiliate banks, and Bank of
MERGER OF PUBLIC SECTOR BANKS pgs 1, 12
Baroda with Vijaya Bank and Dena Bank.
• Context: 10 public sector banks have been merged
• Apart from the mergers, the Finance Minister also
into four entities. pg 1, 12
announced a number of smaller reforms to the boards
Analysis
of the banks that are aimed at improving their
The Powers
efficiency and accountability.
• The Banking Companies (Acquisition and Transfer of • In order to make the management accountable to the
Undertakings) Acts of 1970 and 1980 provide that the boards of the banks, a board committee would be
Central Government, in consultation with the Reserve made in charge of appraising the performance of
Bank of India (RBI), may make a scheme, inter alia, officers of the rank of general managers and above,
for the amalgamation of any nationalised bank with including the managing director.
any other nationalised bank or any other banking • The banks have also been allowed to recruit chief
institution. risk officers from the market, at market-linked
• Various committees, including Narasimhan compensation to attract the best available talent.
Committee (1998) constituted by RBI, Leeladhar
Committee(2008) chaired by RBI Deputy Governor,
and Nayak Committe (2014) constituted by RBI, have
recommended consolidation of Public Sector Banks
(PSBs) given underlying benefits/synergies.
• Government aims to make India a $5-trillion economy
by 2024.
• World Development Indicators and International
Debt Statistics are publications of the World Bank.
Real Vs Nominal GDP
• If we use current prices of goods and services to
calculate GDP, we get Nominal GDP.
• But, to get real GDP we use the prices in the base
year. The base year for India is 2011-12.
• Real GDP is also known as GDP at constant prices.
• It is calculated to eliminate the effect of price rise
in GDP.
• In short, Real GDP is Nominal GDP adjusted for
Narasimham Committee inflation.
• It was the Narasimham Committee in the late 1990s GDP Vs GVA
that recommended consolidation through a process of • Gross domestic product (GDP) is the monetary value
merging strong banks. of all the finished goods and services produced
• What the committee also recommended was shutting within a country's borders in a specific time period.
down the weaker banks and not merging them with • GVA provides the rupee value for the amount of
the strong ones as is being done now. goods and services produced in an economy after
deducting the cost of inputs and raw materials that
INDIA'S GDP
• Context: India’s gross domestic product (GDP) have gone into the production of those goods and
growth rate slowed to a six-year low of 5% in the first services.
quarter (April to June) of the 2019-20 financial year. o It also gives sector-specific picture like what is
• The National Statistical Office (NSO), Ministry the growth in an area, industry or sector of an
of Statistics and Programme Implementation had economy.
released the estimates of Gross Domestic Product o At the macro level, it is the sum of a country’s
(GDP) for the first quarter (April-June) Q1, of 2019-20, GDP and net of subsidies and taxes in the
both at Constant (2011-12) and Current Prices, economy.
along with the corresponding quarterly estimates • While GVA gives a picture of the state of economic
of expenditure components of the GDP. activity from the producers’ side or supply side, the
Analysis GDP model gives the picture from the consumers’
• Recently, India dropped two places in GDP rankings side or demand perspective.
in 2018 compared to 2017. • Gross value added = GDP + subsidies on products -
• In 2018, India's economy grew by about 3%, but in taxes on products.
the same period, the U.K. and France grew by about • The Reserve Bank has recently switched back to the
7% each, pushing India to the 7th place in the World gross domestic product (GDP)-based measure to
Bank's GDP rankings in 2018. offer its growth estimates from the gross value added
• Now the world's largest economies in terms of GDP (GVA) methodology, citing global best practices.
(nominal) in decreasing order are: • The government had started analysing growth
o US, China, Japan, Germany, U.K., France, India, estimates using GVA methodology from January 2015
Italy, Brazil and Canada. and had also changed the base year to 2018 from
January.
• Globally, the performance of most economies is order to purchase the same volume of goods and
gauged in terms of gross domestic product (GDP). services in both countries.
• This is also the approach followed by multilateral • If a hamburger is selling in London for £2 and in New
institutions, international analysts and investors, and York for $4, this would imply a PPP exchange rate of
primarily they all stick to this norms because it 1 pound to 2 U.S. dollars.
facilitates easy cross-country comparisons. • PPP exchange rates are relatively stable over time.
• However, it is not gross domestic product (GDP) • Drawbacks of PPP is that PPP is harder to measure
but the gross value added (GVA) methodology than nominal.
that helps in the supply side measure of economic • Out of 192 countries/economies, about 178 have
activity. higher GDP in PPP basis and 13 have higher in
• The share of various sectors in Gross Value Added nominal.
(GVA) during last three years in descending order: • Nominal and PPP are identical in the US, because
Services > Industry > Agriculture, forestry & USD is used as the benchmark.
fishing > Manufacturing • 30 economies has higher PPP values by more than 3
GDP (Nominal) Vs GDP (PPP) times.
• GDP (Gross Domestic Product) is the total market • South Sudan has highest difference between PPP
value of all final goods and services produced in a and nominal GDP calculation. This value is lowest for
country in a given period. Iceland (0.74).
• Each country reports its data in its own currency. • There is a large gap between nominal and PPP based
• To compare the data, each country's statistics must GDP in emerging market and developing countries.
be converted into a common currency. But for advanced countries, difference is much closer.
• The two most common methods to convert GDP into • In GDP (PPP), India is the third largest economy after
a common currency are nominal and purchasing China and US and is followed by Japan, Germany,
power parity (PPP). Russia, Indonesia, Brazil, UK and France.
GDP (nominal) • In top 10, Eight countries are common in both
• Nominal GDP estimates are commonly used to methods. Others two Italy and Canada are in top 10
determine the economic performance of a whole on nominal basis, while Russia and Indonesia are in
country or region, and to make international top 10 on PPP basis.
comparisons. • In the long run, the market exchange rates gradually
• It is the original concept of GDP. converge to the PPP exchange rate. This is called the
• In Nominal method, market exchange rates are used theory of purchasing power parity (PPP).
for conversion. • Note: India ranks 141st in Nominal GDP per capita
• It does not take into account differences in the cost of and 123rd in GDP per capita at PPP.
living in different countries. o GDP per capita is calculated by dividing the GDP
• Fluctuations in the exchange rates of the country's by the total population of a country.
currency may change a country's ranking from one o It measures the average income of a country.
year to the next, even though they often make little or o It is used as an indicator of living standards.
no difference to the standard of living of its population. Difference between GNP, GDP and GNI
GDP (PPP) • GNP and GDP both reflect the national output and
• PPP basis arguably more useful when comparing income of an economy.
differences in living standards between nations. • The main difference is that GNP (Gross National
• PPP is an exchange rate at which the currency of one Product) takes into account net income receipts from
country is converted into that of the second country in abroad.
• GNP is final value of all services and products • Dust pollution caused by large scale construction
produced by a country’s own residents regardless of activity.
their location (within or outside the country i.e. TCS in • Vehicular pollution
US). • The NCR generates thousands of tons per day of
• In GNP we do not consider production by a foreign municipal solid waste, much of which is eventually
entity in India but we do consider income earned by burned, adding particulate pollution to the air.
Indians living abroad. • In the winter, cool air causes “inversions” that
Example of GNP stagnant the air and trap pollution close to the ground.
• If a Japanese multinational produces cars in the UK, • Air flow patterns from Afghanistan and Pakistan pick
this production will be counted towards UK GDP. up emissions as they move over the densely
• However, if the Japanese firm sends £50m in profits urbanized regions of Punjab and Haryana where
back to shareholders in Japan, then this outflow of farmers burn the straw in their fields and pull this
profit is subtracted from GNP. pollution into Delhi.
Gross National Income • Pre-monsoon dust storms also contribute to air
• GNI = value of goods and services produced by pollution in the region.
(residents + foreigners) + money came to India in the Note: Difference between National Clean Air Programme, National Air
Quality Index and Air Quality Monitoring Programme (NAMP); Clean Air
form of remittances or other - money going to foreign
India Initiative and SAFAR have already been covered.
country in the form of remittances or other.
• GNI is almost equal to GDP when incomes from SAHARIA TRIBE AND TB pg 6
• Context: Saharia is a particularly vulnerable tribal
foreign are balanced by outgoings from our country.
group in Madhya Pradesh.
• But in case of India, our GNI is much lower than GDP
• TB prevalence among Saharias is 1,995 per 1,00,000
because our outgoings are more than receivables.
persons as against a national average of 204.
• GDP = Consumption + Investment + Government
• Malnutrition, poor housing, alcoholism and seasonal
spending + Exports - Imports
migration continue to be risk factors.
• GNI = GDP + payments by foreign nationals into the
• While the World Health Organization has set 2035 as
country for such things as investments (interest and
the deadline to eliminate the TB epidemic, India,
dividends), less similar payments paid out of the
which accounts for a quarter of cases, plans to do so
country.
much ahead by 2025.
• GNP = GDP + Net Income Receipts from assets
End TB Strategy
abroad less income of foreign nationals within the
• The End TB Strategy aims to end the global TB
country.
epidemic, with targets to reduce TB deaths by 95%
• GDP and GNI thus refer to economic income within
and to cut new cases by 90% between 2015 and
the borders of the country, while GNP refers to
2035, and to ensure that no family is burdened with
economic output by the country's residents.
catastrophic expenses due to TB.
AIR POLLUTION IN DELHI- CAUSES pg 3 • It is being implemented by the World Health
• Context: Severely polluted days in year in Delhi are
Organisation.
reducing. Analysis
Analysis Scheduled Tribes
Causes of Air Pollution in Delhi • Article 366 states that tribes mentioned under Article
• Burning of rice stubble in Punjab, Haryana and 342 are considered to be Scheduled Tribes for the
Western Uttar Pradesh in the month of October. purposes of this constitution.
• Article 342 prescribes the procedure to be • Among 75 listed PVTG’s the highest number are
followed in the matter of specification of found in Odisha (13), followed by Andhra Pradesh
scheduled tribes. (12).
• The President may, with respect to any State or Union • The Ministry of Tribal Affairs implements the
territory, after consultation with the Governor there, Scheme of “Development of Particularly Vulnerable
by public notification, specifies the tribes which shall, Tribal Groups (PVTGs)” exclusively for them.
for the purposes of this constitution, are deemed to be Distribution of Tribes
scheduled tribes in relation to that state or Union • The Scheduled Tribes are notified in 30 States/UTs.
Territory, as the case may be. • The tribal population of the country, as per 2011
• These orders can be modified subsequently only census, constitutes 8.6% of the total population.
through an Act of Parliament. • 90% of them live in rural areas and 10% in urban
• The Article 342 also provides for listing of scheduled areas.
tribes State/Union Territory wise and not on an all • The decadal population growth of the tribes from
India basis. Census 2001 to 2011 has been 24% against the 18%
• The list of Scheduled Tribes are notified for each of the entire population.
State or Union Territory and are valid only within the • The sex ratio for the overall population is 940 females
jurisdiction of that State or Union Territory and not per 1000 males and that of Scheduled Tribes 990
outside. females per thousand males.
• The criterion followed for specification of a community, • Broadly the STs inhabit two distinct geographical area
as scheduled tribes are indications of primitive traits, – the Central India and the North- Eastern Area.
distinctive culture, geographical isolation, shyness of • More than two-third of the ST population is
contact with the community at large, and concentrated only in the seven States of the country,
backwardness. This criterion is not spelt out in the viz. Madhya Pradesh, Maharashtra, Orissa, Gujarat,
Constitution but has become well established. Rajasthan, Jharkhand and Chhattisgarh.
• No community has been specified as Scheduled Tribe • More than half of the Scheduled Tribe population is
in relation to the States of Haryana and Punjab and concentrated in Central India, i.e., Madhya Pradesh
Union Territories of Chandigarh, Delhi and (14.69%), Maharashtra (10.08%), Orissa (9.2%),
Puducherry. Rajasthan (8.86%), Gujarat (8.55%), Jharkhand
• While some tribal communities have adopted a (8.29%), Chhattisgarh (7.5%), and Andhra Pradesh
mainstream way of life, at the other end of the (5.7%).
spectrum, there are certain Scheduled Tribes, 75 in
RBI RESERVES (Pg 10, The Hindu)
number, known as Particularly Vulnerable Tribal • Context: The Reserve Bank of India (RBI) at its board
Groups (PVTGs), who are characterised by: meeting decided to transfer a whopping ₹1.76 lakh
o pre-agriculture level of technology crore to the Centre — including interim dividend of
o stagnant or declining population ₹28,000 crore paid in February — which is likely to
o extremely low literacy address the precarious fiscal situation of the
o subsistence level of economy
government to a great extent.
• PVTGs are more vulnerable among the tribal groups. • The RBI had formed a committee chaired by
• 75 tribal groups have been categorized by Ministry former Governor Bimal Jalan to review its economic
of Home Affairs as Particularly Vulnerable Tribal capital framework and suggest the quantum of excess
Groups (PVTG)s. provision to be transferred to the government.
• PVTGs reside in 18 States and UT of A&N Islands. Analysis
• Every year after the finalisation of the accounts of the What are the different types of RBI funds?
RBI its surplus is transferred to the Central • The central bank has at least five different funds
government sometime in end-August; this augments that together comprise its reserves. These are:
the non-tax revenue of the Central government. o the Currency and Gold Revaluation Account
• Normally, an estimate of such a transfer is decided (CGRA),
informally between the RBI and the Central o the Investment Revaluation Account (IRA),
government by January and finds a place in the o the Foreign Exchange Forward Contracts
Budget estimate, typically announced in early Valuation Account (FCVA),
February. o the Contingency Fund (CF), and
• Insofar as the methodology is concerned, the o the Asset Development Fund (ADF).
committee adopted the Expected Shortfall • While “Contingency Fund (CF) and Asset
methodology (instead of the existing Stressed Value- Development Fund (ADF) represent provisions made
at-Risk) for measuring market risk. for unforeseen contingencies and amount set aside
How does a central bank like the Reserve Bank of for investment in subsidiaries and internal capital
India (RBI) make profits? expenditure respectively”, components such as,
• The RBI is a “full service” central bank — not only is it “Currency and Gold Revaluation Account (CGRA),
mandated to keep inflation or prices in check, it is also Investment Revaluation Account (IRA) and Foreign
supposed to manage the: Exchange Forward Contracts Valuation Account
o borrowings of the Government of India and of (FCVA), represent unrealised marked to market
state governments; gains/losses.”
o supervise or regulate banks and non-banking • Of these, the CGRA is by far the largest and makes
finance companies; and up the significant bulk of the RBI’s reserves.
o manage the currency and payment systems. o The CGRA, which in essence is made up of
• While carrying out these functions or operations, it the gains or losses on the revaluation of
makes profits. foreign exchange and gold, stood at ₹6.91 lakh
• Typically, the central bank’s income comes from the crore as of financial year 2017-18.
returns it earns on its foreign currency assets — • The CF is the second biggest fund, amounting to
which could be in the form of bonds and treasury bills ₹2.32 lakh crore in 2017-18.
of other central banks or top-rated securities, and o It is designed to meet contingencies from
deposits with other central banks. exchange rate operations and monetary policy
• It also earns interest on its holdings of local rupee- decisions and is funded in large part from the
denominated government bonds or securities, and RBI’s profits.
while lending to banks for very short tenures, such as • The IRA is sub-divided into IRA-foreign securities
overnight. (IRA-FS) and IRA-rupee securities (IRA-RS).
• It claims a management commission on handling the o The former reflects the unrealised gain or loss on
borrowings of state governments and the central the mark-to-market of foreign securities while the
government. latter is on account of marking rupee securities.
• Its expenditure is mainly on the printing of currency • The ADF has been created to meet internal capital
notes and on staff, besides the commission it gives to expenditure and make investments in subsidiaries
banks for undertaking transactions on behalf of the and associated institutions.
government across the country, and to primary • The IRA and ADF constitute a small portion of the
dealers, including banks, for underwriting some of RBI’s reserves.
these borrowings.
What is the nature of the arrangement between the • Since the latest CF amount was about 6.8% of the
government and RBI on the transfer of surplus or RBI’s balance sheet, the excess amount was to be
profits? transferred to the government.
• The RBI isn’t a commercial organisation like the • The committee also decided, for the year under
banks or other companies that are owned or consideration, to use the lower limit of 5.5% of the
controlled by the government — it does not, as such, range it recommended.
pay a “dividend” to the owner out of the profits it • So, basically, whatever was excess of 5.5% of the
generates. RBI’s assets in the CF was to be transferred. That
• What the central bank does, therefore, is transfer the amount was ₹52,637 crore.
“surplus” — that is, the excess of income over • Regarding the RBI’s economic capital levels — which
expenditure — to the government, in accordance with is essentially the CGRA — the committee
Section 47 (Allocation of Surplus Profits) of the recommended keeping them in the range of 20-24.5%
Reserve Bank of India Act, 1934: “After making of the balance sheet.
provision for bad and doubtful debts, depreciation in • Since it stood at 23.3% as of June 2019, the
assets, contributions to staff and superannuation fund committee felt that there was no need to add more to
[and for all other matters for which] provision is to be it, and so the full net income of the RBI — a whopping
made by or under this Act or which are usually ₹1,23,414 crore — should be transferred to the
provided for by bankers, the balance, of the profits Centre.
shall be paid to the Central Government.” • That ₹1.23 lakh crore plus the ₹52,637 crore is what
Does the RBI pay tax on these earnings or profits? comprises the ₹1.76 lakh crore that the RBI has
• No. Its statute provides exemption from paying decided to transfer to the government.
income-tax or any other tax, including wealth tax. • It must be noted that this ₹1.76 lakh crore includes the
What are the factors which can affect the RBI ₹28,000 crore interim dividend earlier transferred to
reserves? the Centre and does not come over and above it.
• The possibly lower returns on the RBI’s overseas Does this harm the RBI?
investments due to low global interest rates; and • While it does not immediately do the RBI any harm,
increased costs on account of liquidity management the fact remains that the central bank now has far less
(the interest it has to pay to banks when there is wiggle room in the event of a financial catastrophe,
excess liquidity and it conducts ‘reverse repo since its reserves have been emptied to their
auctions’), especially after the demonetisation minimum levels or thereabouts.
exercise of November 2016. • That is, it has the minimum amount to deal with a
• The surplus available will also be lower if the RBI has crisis, but extra cash always comes in handy.
made provisions to set aside some funds for specific • That said, given that the RBI’s transfers have now
purposes. been as emptied as they can be, there is no scope for
What did the Jalan Committee recommend? the government to rely on this source of funding in the
• The Jalan Committee, as it was called informally, is near future.
actually called the Expert Committee to Review the • The government in its Budget already accounted for a
RBI's Extant Economic Capital Framework. transfer of ₹90,000 crore from the RBI, and so the
• The committee recommended that the RBI maintain a unexpected amount is ₹86,000 crore.
Contingent Risk Buffer — which mostly comes from • This is a one-time bonanza and does not fix the fact
the CF — of between 5.5-6.5% of the central bank’s that tax revenues — both direct and indirect tax — are
balance sheet. coming in much lower than they need to.
Other important recommendations of the Bimal Jalan • The committee observed that even if the RBI’s
Committee economic capital could appear to be relatively higher,
• The Bimal Jalan Committee has also suggested that it is largely on account of the revaluation balances
the framework may be periodically reviewed after which are determined by exogenous factors such as
every five years. market prices and the central bank’s discharge of its
• Nevertheless, if there is a significant change in the public policy objectives.
RBI’s risks and operating environment, an Dual sets of targets
intermediate review may be considered. • So far as the surplus distribution policy for the future
• The panel recommended to align the central is concerned, the panel said it should move away
bank’s accounting year with the financial year from targeting total economic capital alone, to one
which could reduce the need for paying interim where it has a dual set of targets, that is, the total
dividend which may then be restricted to extraordinary economic capital of the RBI and the level at which
circumstances. realised equity is to be maintained.
• Historically, the July-June year would have been • The committee recommends that the minimum level
linked to the agricultural seasons which is not a of realised equity to be maintained should be the sum
consideration in these times, it said. of the monetary and financial stability risks, credit risk
• By doing so, the RBI would be able to provide better and operational risk.
estimates of the projected surplus transfers to the Reasons for this huge surplus
government for the financial year for budgeting • Large scale open market operations (OMO)
purposes. conducted by the Reserve Bank of India (RBI) and
• The committee also recommended that the RBI higher earnings from foreign exchange operations
should put in place a framework for assessing the helped boost the central bank’s surplus to record
market risk of its off-balance sheet exposures in view levels in 2018-19.
of their increasing significance. o A huge ₹28,998 crore gain from foreign
• The panel also suggested a clearer distinction exchange transactions was mainly due to a
between the two components of economic capital change in accounting policy.
— realised equity and revaluation balances — o Until last year, when the RBI sold dollars in the
mainly because of the volatile nature of the market (to support the rupee), the gain or loss
revaluation balances. was calculated based on the previous Friday’s
o The amount of surplus that the RBI must transfer market value of the dollar.
to the Centre is determined based on two things- o This policy was changed this year to reflect the
--realized equity and economic capital. historical acquisition cost of the dollar.
o The ‘realized equity’ is the risk provisioning made o A rough, back-of-the-envelope calculation puts
primarily from retained earnings referred to as this historical cost at around ₹53. This means
the Contingent Risk Buffer (CRB). This is that, if the RBI were to sell the dollar in the
essentially the existing amount in the RBI’s CF. market today at around ₹72, it stands to gain ₹19
o Economic capital is the realized equity and for every unit it sells.
revaluation balances (essentially CGRA). o In the previous year, the RBI posted a loss of
• The committee was of the view that given the ₹4,067 crore from similar transactions.
inclusion of the revaluation balances in the RBI’s • The RBI posted a surplus of ₹1.23 lakh crore in 2018-
overall risk buffers, measures to address volatility will 19 compared to ₹50,004 crore in 2017-18 and
have to be introduced. ₹30,663 crore in 2016-17.
• Recently, the central bank had approved the transfer
of ₹1.76 lakh crore to the government as per the
revised Economic Capital Framework.
News in brief
Anti-lynching Legislation pg 1
• West Bengal has become the third State in India to
pass an anti-lynching legislation after Manipur and
Rajasthan.
• Recently, the Uttar Pradesh Law Commission (UPLC)
has also recommended a draft anti-lynching law.
• Article 370 pg 11
• RBI Transfers pg 10
• Vector-borne diseases pg 5
• Collegium System pg 9

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THE HINDU ANALYSIS 2nd AUGUST 2019

SELF STUDY NOTES FOR IAS INDEX

Are you still reading the stale news! Get daily

6. CORE SECTOR (Pg 15, The Hindu) 7. INTERMEDIATE-RANGE NUCLEAR FORCES

India-Africa (Pg 10, The Hindu)

Maharashtra (Pg 11, The Hindu)

1. REGIONAL COMPREHENSIVE ECONOMIC INDEX

THE HINDU ANALYSIS 8th AUGUST 2019

THE HINDU ANALYSIS 13th AUGUST 2019 Hindu)

4. CHIEF OF DEFENCE STAFF (CDS) (Pg 1, 13, The 5. NEWS IN BRRIEF

Hindu) Juno Spacecraft (Pg 20, The Hindu)

2. FASTag (Pg 2, The Hindu) 2. NATIONAL KNOWLEDGE NETWORK (NKN)

7. PIRACY (Pg 14, The Hindu)

3. NEWS IN BRIEF 4. NEWS IN BRIEF

Hindu) Treaties in News (Pg 7, The Hindu)

The Hindu) Symmetric response to U.S. missile test: Russia (Pg

2. COMPENSATORY AFFORESTATION (Pg 9, The • It is a non-lapsable corpus fund.

6. NEWS IN BRIEF • Popularly known as Sakhi Centres, the One Stop

the first time this year narrowed down to single digits

• This warm moist air rises to high levels of the

• During El Nino years, due the abnormal warming of

12, The Hindu) Missiles

Analysis • Ballistic missiles are powered initially by a rocket or

BrahMos series of rockets in stages (first stage), but then

to the government complaining about the equalisation 15, The Hindu)

levy they have to pay to foreign companies doing Analysis

business in India, resulting in increased costs as well Do you know?

tax on payments made by residents to non-resident creating receipts.

Analysis net receipts is lower than the projected receipts.

the time of payment by the service recipient. services.

equalisation levy: gross fiscal deficit indicates an increase in the

service provider; purposes.

year. the total value of those it exports.

of equalisation Levy. income made by citizens of a country on their foreign

• The following services covered: investments from income earned by foreigners on

o Online advertisement; their investments within the country.

14, The Hindu) o It was launched by India to evacuate its citizens

Analysis from Yemen in 2015 after an Arab coalition led

power to his deputy Abdrabbuh Mansour Hadi, in Syria on a bilateral basis.

2011. o However this is the first time that such an

o attacks by al-Qaeda, PURCHASING MANAGERS’ INDEX

• Availability of toilet location in the app The Hindu)

Cotton (Pg 16, The Hindu) Analysis

mills. education map.

50%. 2019 India rankings and NIRF rankings used as a

The Hindu) India, Australia and New Zealand to join later.

selfstudynotesforias@gmail.com Why is India holding up the deal?

negotiators met for the first time in 2013. in such a scenario.

format. on all goods, so they don’t come in through a third

o ASEAN +1 FTAs refers to the FTAs that ASEAN country.

COVERAGE AREAS their immigration laws.

cooperation, intellectual property, competition, dispute remaining countries of RECP.

set environmental or labour standards. Indonesia > Australia

should be tariff-free. trade negotiators are focusing on market access for

Analysis the economy is uniform.

supply (liquidity) in the economy.

block part of the light from their host stars, an sight.

Falcon 9 rocket. researchers a lot about a planet.

over 3,700. planet’s size.

become exoplanets. star, scientists are able to determine the shape

and vastly increase the current number of known based telescopes.

• Of these, approximately 300 are expected to be that monitored by Kepler.

Earth-sized and super-Earth-sized exoplanets, which Exoplanets