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Summary of Daily News


Analysis
By Jatin Verma
th
DNA 4 March, 2021

Our Daily News Analysis covers the most important topics from The Hindu, Indian
Express, Livemint, PIB, ORF, Yojna etc. The daily news analysis covers both the
daily news and important Editorials. All the news articles are analyzed and
summarized for easy reading and understanding. The news articles are complemented
by infographics and diagrams. We provide summaries of important editorials from
The Hindu and Indian Express in a crisp manner. Important facts are highlighted for
your convenience.

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Governance & Polity related issues


G. S. Mains Paper – 2

❏ Page 1: Voicing dissent against govt. is not sedition: SC


❏ Page 5: Reservation in pvt. jobs: trade body asks Lal govt. for relook at
legislation
❏ Page 9: Field trials for Census-NPR to begin soon

International relations related issues


G. S. Mains Paper - 2

❏ Page 1: U.S. think tank report classifies India as ‘partly free’


❏ Page 13: Indian aircraft take part in Sri Lanka event

Economy and Internal security related issues


G. S. Mains Paper - 3

❏ Page 9: Sugar mills seek higher MSP for their produce


❏ Page 13: India, 17 countries face U.S. anti-dumping tax
❏ Page 14: ‘Govt. can cut excise on fuels by ₹8.5 sans revenue impact’
❏ Page 14: Raise minimum selling price for sugar to ₹34.50 a kg: ISMA

Environment & Sci-tech related issues


G. S. Mains Paper - 3

❏ Page 3: NGT takes cognisance of illegal factory fire, issues notices to govt.
authorities
❏ Page 5: Wildfire rages in Similipal

Page 6: Important Editorials

● Page 6: Rape and marriage


● Page 6: The distress sale of national assets is unwise
● Page 6: Despite arbitration tug of war, mutual settlement is key

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Page 7: Important Editorials

● Page 7: Persevering with our Martian fantasies


● Page 7: Climate and consciousness

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Mind Maps

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Polity and Governance


related issues
G.S. Mains Paper-2
Page 1: Voicing dissent against govt. is not sedition: SC
Context
● Voicing dissent against the government does not amount to sedition, the Supreme Court said
while rejecting a plea to “terminate” the Lok Sabha membership of National Conference leader
Farooq Abdullah and book him for sedition.
● The expression of a view which is a dissent from a decision taken by the Central government
itself cannot be said to be seditious.

SC’s observations
● There was nothing in Dr. Abdullah‟s statement “which the SC find so offensive as to give a cause
of action for a court to initiate proceedings”, trashing the plea as a “clear case of publicity
interest litigation” by petitioners who want to get their names in the press.
● The Bench dismissed the case levying costs on the petitioners to the tune of ₹50,000 to be
deposited with the Supreme Court Advocates Welfare Fund in four weeks.
● Petitioner accused Dr. Abdullah of stating that “in Kashmir he will get Article 370 of the
Constitution restored with the help of China” during a speech on September 24.
● Argument by the petitioner
● The petitioner argued that Article 370 had been deleted from the Constitution by majority in
Parliament.
● Everybody knows that there are only two countries in the world which are trying to grab the
Indian part of Indian territories, namely China and Pakistan, which mean that Farooq Abdullah
is trying to hand over the Kashmir to China or Pakistan, which is totally contrary to the
provision of the Constitution and amounts to sedition.

JV’s Analysis
Sedition Law and its misuse
● Recently, the Supreme Court protected a political leader and six senior journalists from arrest
in multiple sedition FIRs registered against them.
● Sedition laws were enacted in 17th century England when lawmakers believed that only good
opinions of the government should survive, as bad opinions were detrimental to the government
and monarchy.
● The law was originally drafted in 1837 by Thomas Macaulay, the British historian-politician,
but was inexplicably omitted when the Indian Penal Code (IPC) was enacted in 1860.
● Section 124A was inserted in 1870 by an amendment introduced by Sir James Stephen when it
felt the need for a specific section to deal with the offence.
● It was one of the many draconian laws enacted to stifle any voices of dissent at that time.
● Section 124A IPC

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● Sedition is a crime under Section 124A of the Indian Penal Code (IPC).
● It defines sedition as an offence committed when "any person by words, either spoken or written,
or by signs, or by visible representation, or otherwise, brings or attempts to bring into hatred or
contempt, or excites or attempts to excite disaffection towards the government established by law
in India".
● Disaffection includes disloyalty and all feelings of enmity. However, comments without exciting
or attempting to excite hatred, contempt or disaffection, will not constitute an offence under this
section.

Punishment for the Offence of Sedition


● Sedition is a non-bailable offence. Punishment under the Section 124A ranges from
imprisonment up to three years to a life term, to which fine may be added.
● A person charged under this law is barred from a government job.
● They have to live without their passport and must produce themselves in the court at all times as
and when required.

Supreme Court Judgements on Sedition Law


● The SC highlighted debates over sedition in 1950 in its decisions in Brij Bhushan vs the State of
Delhi and Romesh Thappar vs the State of Madras.
 In these cases, the court held that a law which restricted speech on the ground that it would
disturb public order was unconstitutional.
 It also held that disturbing the public order will mean nothing less than endangering the
foundations of the State or threatening its overthrow.
 Thus, these decisions prompted the First Constitution Amendment, where Article 19 (2)
was rewritten to replace “undermining the security of the State” with “in the interest of
public order”.
● In 1962, the SC decided on the constitutionality of Section 124A in Kedar Nath Singh vs State of
Bihar.
 It upheld the constitutionality of sedition, but limited its application to “acts involving
intention or tendency to create disorder, or disturbance of law and order, or incitement to
violence”.
 It distinguished these from “very strong speech” or the use of “vigorous words” strongly
critical of the government.
● In 1995, the SC, in Balwant Singh vs State of Punjab, held that mere sloganeering which evoked
no public response did not amount to sedition.

Arguments in Support of Section 124A


● Section 124A of the IPC has its utility in combating anti-national, secessionist and terrorist
elements.
● It protects the elected government from attempts to overthrow the government with violence
and illegal means.
● The continued existence of the government established by law is an essential condition of the
stability of the State.

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● If contempt of court invites penal action, contempt of government should also attract punishment.
● Many districts in different states face a maoist insurgency and rebel groups virtually run a parallel
administration.
● These groups openly advocate the overthrow of the state government by revolution.
● Against this backdrop, the abolition of Section 124A would be ill-advised merely because it has
been wrongly invoked in some highly publicized cases.

Arguments against Section 124A


● Section 124A is a relic of colonial legacy and unsuited in a democracy. It is a constraint on the
legitimate exercise of constitutionally guaranteed freedom of speech and expression.
● Dissent and criticism of the government are essential ingredients of robust public debate in a
vibrant democracy. They should not be constructed as sedition.
● Right to question, criticize and change rulers is very fundamental to the idea of democracy.
● The British, who introduced sedition to oppress Indians, have themselves abolished the law in
their country. There is no reason why India should not abolish this section.
● The terms used under Section 124A like 'disaffection' are vague and subject to different
interpretations to the whims and fancies of the investigating officers.
● IPC and Unlawful Activities Prevention Act 2019 have provisions that penalize "disrupting the
public order" or "overthrowing the government with violence and illegal means".
 These are sufficient for protecting national integrity. There is no need for Section 124A.
● The sedition law is being misused as a tool to persecute political dissent.
● A wide and concentrated executive discretion is inbuilt into it which permits the blatant abuse.
● In 1979, India ratified the International Covenant on Civil and Political Rights (ICCPR),
which sets forth internationally recognized standards for the protection of freedom of expression.
However, misuse of sedition and arbitrary slapping of charges are inconsistent with India's
international commitments.

JV’s Facts for prelims


Sedition trials during freedom movement
● Some of the most famous sedition trials of the late 19. and early 20. century involved Indian
nationalist leaders.
● The initial cases that invoiced the sedition law included numerous prosecutions against the editors
of nationalist newspapers.
● The first among them was the trial of Jogendra Chandra Bose in 1891.
● Bose, the editor of the newspaper, Bangobasi, wrote an article criticizing the Age of Consent
Bill for posing a threat to the religion and for its coercive relationship with Indians.
● The most well-known cases are the three sedition trials of Bal Gangadhar Tilak and the trial
of Mahatma Gandhi in 1922.
● Gandhi was charged, along with Shankerlal Banker, the proprietor of Young India, for three
articles published in the weekly.

Page 5: Reservation in pvt. jobs: trade body asks Lal govt. for relook at legislation
Context

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● The Confederation of Indian Industry (CII) urged the Haryana government to “relook” at the
legislation that provides for reservation in private jobs for local candidates, saying reservation
impacts productivity and competitiveness.
● The industry body hopes the State government re-looks at the legislation.

75% reservation in the private sector


● At a time when it is important to attract investments at the State level, the Haryana government
could have avoided imposing restrictions on industry.
● With Prime Minister‟s vision of „Ek Bharat Shrestha Bhara‟', they look forward to an integrated
and mobile labour market within the country.”
● Haryana Governor has given assent to the Bill providing 75% reservation in the private sector to
job seekers from the State.
● The quota will initially apply for 10 years.
● Apart from tackling unemployment among local people, the State government said the law will
discourage the influx of migrants seeking low-paid jobs, which has a significant impact on local
infrastructure and leads to the proliferation of slums.
● The Bill covers private companies, societies, trusts and partnership firms in the State.

JV’s Analysis
Haryana State Employment of Local Candidates Bill, 2020
● On the lines of Andhra Pradesh government, Haryana too has announced it wants 75 % of private
sector jobs in the state, till a certain salary slab, reserved for local candidates.
● In November 2020, the state Assembly passed the Haryana State Employment of Local
Candidates Bill, 2020 paving way for more employment opportunities for locals in the private
sector.
● On March 2, the Governor gave his assent to the Bill.

Key provisions of the Bill


● Sectors to be covered: All the companies, societies, trusts, limited liability partnership firms,
partnership firms and any person employing 10 or more persons and an entity, as may be notified
by the government from time to time.
● Exclusion: It shall not include the central government or state government or any organisation
owned by the central or state government.
● Posts covered: Posts where the gross monthly salary or wages are not more than Rs. 50,000 or as
notified by the government from time to time.
● Exemption: The employer may claim exemption where adequate number of local candidates of a
desired skill, qualification or proficiency are not available.
● The employer may be penalised with fine upto Rs. 5 Lakh for not following provisions of this
Act.

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Concerns expressed by experts


● Haryana‟s Bill may be in violation of Article 16. But, Haryana government claims that while
Article 16 talks about the “public employment”, the Bill only pertains to “private sector
employment”.
● Besides, it may not be in the interest of industry.
● There are apprehensions that if Haryana implements this kind of a reservation, other states will
also follow the same and that shall result in a “complete chaos”.
● Previously, Andhra Pradesh‟s decision of introducing 75% reservation for local candidates was
challenged in the Andhra Pradesh High Court which observed that “it may be unconstitutional”.

Constitutional provisions
● The Constitution of India guarantees freedom of movement and consequently employment within
India through several provisions.
● Article 14 provides for equality before law irrespective of place of birth.
● Article 15 guards against discrimination based on place of birth.
● Article 16 guarantees no birthplace-based discrimination in public employment.
● Article 19 ensures that citizens can move freely throughout the territory of India.

Earlier Attempts
● It has been mooted by several parties (ruling or opposition leaders) in States such as Maharashtra
(1968 onwards and 2008), Himachal Pradesh (2004), Odisha (2008), Karnataka (2014, 2016,
2019), Andhra Pradesh (2019), Madhya Pradesh (2019).
● However, none of these has been implemented and has remained only on paper due to lack of
implementation mechanism and reluctant attitudes of industries bodies.

Growing Trend of Jobs for Locals


● Nativism, the cry for job protection of locals, has been on a rise recently in India.
● Various states have taken similar steps with respect to job reservation for locals (JRFL) with the
promised reservations ranging from 30% to the more common range of 70-80%.
● The move is applicable to both the government and/or the private sector.

Reasons Behind Such Legislations


● Vote Bank Politics: Inter-state migrant workers (ISMW) constitute a sizeable “under-used or
unused” electorate as they often do not exercise voting rights.
 If these workers and potential migrants could be retained through JRFL and provided with
jobs, the parties‟ electoral causes will be served.
● Economic Sluggishness: The native unemployment issue assumes relevance as joblessness has
intensified in the context of shrinking government employment.
● Increased Incomes and Talent: JRFL will not only retain talent but also incomes which
otherwise will go to “other regions”.
● Precondition for Land Acquisition: Farmers and villagers, who lose their land in the process of
land acquisition for industries, keep such preconditions in which industries have to provide jobs to
local youth.

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Page 9: Field trials for Census-NPR to begin soon


Context
● The Registrar-General of India (RGI) is preparing to conduct field trials of the first phase of the
Census and the National Population Register (NPR) using a mobile application in all the States
and Union Territories.
● The first phase involving house listing and housing census, along with updating the NPR, was
scheduled from April 1 last year, but was postponed indefinitely due to the pandemic.

Planning to conduct pre-tests or field trials


● It is unlikely that the exercise will be conducted this year as the vaccination drive is still at an
early stage.
● However, the officials are planning to conduct pre-tests or field trials through the app in one block
each of every district, which is expected to cover 50 to 60 households.
● The app will contain questionnaires on house listing and housing census and the NPR.
● The dates for conducting the Census exercise have not been finalised yet. But the enumerators
will have to be trained in using the app.
● Many enumerators are young school teachers who are expected to use the app instead of the paper
schedule form. There will be incentives for the electronic form.
● The second phase of the Census is population enumeration.

The houselisting and housing census


● The RGI, on January 9, 2020, notified the 31 columns for which the enumerators will seek
response for the houselisting and housing census.
● The questions include whether the respondent has access to -
 LPG or piped natural gas connection;
 Owns a radio, transistor, television, laptop, computer, telephone, mobile phone or
smartphone; and
 The Internet.
● The questions for the NPR have not been made public yet, but the pre-test conducted in 2019
included additional questions such as
 The date and place of birth of father and mother,
 Last place of residence and mother tongue,
 Aadhaar (optional),
 Voter ID card,
 Mobile phone and
 Driving licence numbers.
● The Opposition-ruled States have expressed apprehensions over the additional questions.

Electronic database
● In 2010 and 2015, the NPR collected details on 14 parameters only. It already has an electronic
database of more than 119 crore residents.

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● The app will have the NPR schedule also. Before it is rolled out, the app has to be tested for
glitches, and field trials are to be conducted.
● The app has been improvised after the 2019 trials, and the field trials will be held afresh. They are
awaiting directions from the RGI.”
● On February 10, Union Minister of State for Home informed the Rajya Sabha that “an app for the
collection of data and a Census portal for the management and monitoring of various Census-
related activities has been developed”.
● Instruction manuals for enumerators and other Census functionaries have been prepared.
● A pre-test of the Census was undertaken from August 12, 2019 to September 30, 2019 in selected
areas of all the States and Unions Territories to test the Census questionnaire and methodology.

JV’s Analysis
NPR, NRC and Census
● The Union Cabinet approved an amount of Rs. 3985/- crores for updating the NPR. Coming along
the nationwide protests against the NRC, these two major terms have been dominating the Indian
News these days.
● While both the terms NRC (National Register of Citizens) and NPR (National Population
Register) appear to be similar, both have a basic difference among them.
● Preliminary work on the NPR has already begun in several States.

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National Population Register (NPR)


● NPR is a database containing a list of all usual residents of the country. Its objective is to have a
comprehensive identity database of people residing in the country.
● A usual resident for the purposes of NPR is a person who has resided in a place for six months or
more, and intends to reside there for another six months or more.
● The NPR was first collected in 2010 and then updated in 2015.
● It is generated through house-to-house enumeration during the “house-listing” phase of the
census, which is held once in 10 years.
● The last census was in 2011, and the next was scheduled for 2021.

How NPR is different from Census


● The census involves a detailed questionnaire - there were 29 items to be filled up in the 2011
census - aimed at eliciting the particulars of every person, including age, sex, marital status,
children, occupation, birthplace, mother tongue, religion, disability and whether they belonged to
any Scheduled Caste or Scheduled Tribe.
● On the other hand, the NPR collects basic demographic data and biometric particulars.

Legal basis for the NPR


● Section 14A was inserted in the Citizenship Act, 1955, in 2004, providing for the compulsory
registration of every citizen of India and the issue of a “national identity card” to him or her.
● It also said the Central government may maintain a “National Register of Indian Citizens”.
● The Registrar General India shall act as the “National Registration Authority” (and will function
as the Registrar General of Citizen Registration). Incidentally, the Registrar General is also the
country‟s Census Commissioner.
● The NPR is the first step towards establishing the NRIC.

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NPR and NRC


● According to the Citizenship Rules framed in 2003, the NPR is the first step towards compilation
of the National Register of Indian Citizens (NRIC) or NRC.
● Section 14A was inserted in the Citizenship Act, 1955, in 2004, providing for the compulsory
registration of every citizen of India and the issue of a “national identity card” to him or her. It
also said the Central government may maintain a “National Register of Indian Citizens”.
● The Registrar General India shall act as the “National Registration Authority” (and will function
as the Registrar General of Citizen Registration).
● The Registrar General is also the country‟s Census Commissioner.
● After a list of residents is created (i.e. NPR), a nationwide NRC could go about verifying the
citizens from that list.
● Recently, NRC for Assam was prepared.

Concerns
● Some States such as West Bengal and Rajasthan have objected to additional questions to be asked
in the fresh NPR such as “date and place of birth of father and mother, last place of residence and
mother tongue”.

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● There are apprehensions and fears that the CAA 2019, followed by a country-wide NRC, will
benefit non-Muslims excluded from the proposed citizens‟ register, while excluded Muslims will
have to prove their citizenship.
● The CAA 2019 allows citizenship on basis of religion to six undocumented communities from
Pakistan, Afghanistan and Bangladesh who entered India on or before 31st December, 2014.
● Six Communities are: Hindus, Sikhs, Buddhists, Jains, Parsis and Christians.

Government’s Stand
● The government has denied that the CAA and the NRC are linked.
● The Ministry of Home Affairs (MHA) informed a parliamentary panel earlier this year that there
was a need to update the NPR to “incorporate the changes due to birth, death and migration” and
“Aadhaar is individual data whereas NPR contains family wise data.”
● The MHA informed the panel that it proposes to collect details on additional questions such as
“date and place of birth of parents” in the NPR to “facilitate back end data processing and making
the data items of date and place of birth complete for all household(s)”.

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International relations
related issues
G.S. Mains Paper-2
Page 1: U.S. think tank report classifies India as ‘partly free’
Context
● Freedoms in India have reduced, according to a report from a U.S. thinktank, Freedom House,
resulting in India being classified as „partly free‟.
● India‟s score was 67, a drop from 71/100 from last year (reflecting 2019 data) downgrading it
from the free category last year (based on 2020 data).

India is partly free


● The government of Prime Minister Narendra Modi and its State-level allies continued to crack
down on critics during the year.
● The ruling Hindu nationalist movement also encouraged the scapegoating of Muslims, who were
disproportionately blamed for the spread of the virus .
● Rather than serving as a champion of democratic practice and a counterweight to authoritarian
influence from countries such as China, PM and his party are tragically driving India itself toward
authoritarianism.

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● The private media are vigorous and diverse, and investigations and scrutiny of politicians do
occur.
● However, attacks on press freedom have escalated dramatically under the Modi government, and
reporting has become significantly less ambitious in recent years.
● The use of security, defamation, sedition and contempt of court laws to quiet critical media
voices.
● Separately, revelations of close relationships between politicians, business executives and
lobbyists on one hand and leading media personalities and owners of media outlets, on the other,
have dented public confidence in the press.

U.S. dropped three points


● On the U.S., the Freedom House said the risky state of American democracy was on display
during the January 6 attack on the Capitol.
● It listed what it called the Trump presidency‟s “ unprecedented attacks” on American democracy
(examples included were dismissing inspectors general to sowing mistrust over the electoral
system).
● The U.S. dropped three points over one year, down to 83/100.

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● The United States will need to work vigorously to strengthen its institutional safeguards, restore
its civic norms and uphold the promise of its core principles for all segments of society if it is to
protect its venerable democracy and regain global credibility.
● China, classified as ‘not free’, dropped a point from last year going down to 9/100.
● The malign influence of the regime in China, the world‟s most populous dictatorship, was
especially profound in 2020,” the report says citing Beijing‟s disinformation and censorship
campaign following the outbreak of COVID-19.

JV’s Input
Freedom in the World 2020 report
● The report is released by Freedom House, a U.S.-based watchdog, which has been tracking global
political and civil liberties for almost half a century.
● The report derives its methodology from the Universal Declaration of Human Rights, adopted by
the United Nations General Assembly (UNGA) in 1948.
● It covers 195 countries, awarding scores based on-
○ Political rights indicators such as the electoral process, political pluralism and
participation and government functioning.
○ Civil liberties indicators related to freedom of expression and belief, associational and
organisational rights, the rule of law and personal autonomy and individual rights.

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Universal Declaration of Human Rights


● Universal Declaration of Human Rights was proclaimed under UNGA resolution 217 A in Paris.
● It set out, for the first time, fundamental human rights to be universally protected.
● It states that „All human beings are born free and equal in dignity and rights.
● They are endowed with reason and conscience and should act towards one another in a spirit of
brotherhood.‟
● It entitles everyone to all the rights and freedoms and prohibits slavery and slave trade in all
forms.
● Other rights recognized under the declaration are right to a nationality, right against arbitrary
arrest, detention or exile, the right to seek asylum from persecution, the right to freedom of
movement and residence, etc.
● The Universal Declaration is not a treaty, so it does not directly create legal obligations for
countries. However, it is an expression of the fundamental values which are shared by all
members of the International community.
● The Universal Declaration of Human Rights holds the Guinness World Record as the most
translated document.

Page 13: Indian aircraft take part in Sri Lanka event


Context
● As many as 23 aircraft of the Indian Air Force (IAF) and the Indian Navy participated in a display
event in Colombo, as the Sri Lanka Air Force (SLAF) marked its 70th anniversary.

An aerobatic display
● As a gesture of solidarity, and in keeping with years of close interaction and camaraderie between
the two countries and their militaries, IAF and Indian Navy will participate in the event with an
aerobatic display by Sarang (Advanced Light Helicopter), Surya Kiran (Hawks), Tejas Fighter
Aircraft, Tejas Trainer and the Dornier Maritime Patrol Aircraft.
● IAF chief Air Chief Marshal participated in the event, where President Gotabaya Rajapaksa was
the main guest.

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JV’s Input
Suryakiran Aerobatic Team
● The Suryakiran Aerobatic Team (SKAT) and Sarang helicopter display team along with the Light
Combat Aircraft (LCA) will perform at an air show at Galle Face in Colombo from 3rd-5th March
2021 as part the 70th anniversary celebrations of the Sri Lankan Air Force (SLAF).
● This will be the first performance for the SKAT team outside India since it was resurrected in
2015 with Hawk Advanced Jet Trainers (AJT).
● Earlier, the SKAT team toured Sri Lanka during the 50th anniversary of SLAF in 2001.
● The team was formed in 1996 with Kiran Mk-II aircraft and had enthralled spectators across the
country till 2011.
● It was revived in 2015 with Hawk trainers initially with four aircraft and grew to the nine aircraft
formation.

Features
● The SKAT team, also known as 52 Squadron or The Sharks, is based in Bidar (Karnataka).
● Since its inception, the SKAT team has carried out over 600 displays all around the country, it has
also represented India across southeast Asia including China.
● 1971 Commemorations:
● Marking the golden jubilee year of the 1971 Liberation War of Bangladesh, the SKAT team has
been flying different formations over landmarks across the country starting from Kanyakumari in
the south.

Sarang Helicopter Display Team


● The Sarang team has evolved from the ALH Evaluation Flight (AEF) which was formed in 2003
at Bangalore to evaluate the indigenous helicopter prior to its induction into operational service.
● The Indian Air Force aerobatic team Sarang (Peacock) comprises four Indian built Dhruv
helicopters (an Advanced Light Helicopter - ALH, built by Hindustan Aeronautics Limited,
Bangalore).

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Economy and Internal security related issues


G. S. Mains Paper – 3
Page 9: Sugar mills seek higher MSP for their produce
Context
● Sugar mills are lobbying with the government for an increase in the MSP of sugar to ₹34.50 a kg
from ₹31 to help them clear payment arrears to sugarcane farmers.
● The production rose 20% in the first five months of the season which started in September,
putting further pressure on falling prices.

Adversely affected the liquidity of mills


● This comes at a time when large numbers of sugarcane farmers from western Uttar Pradesh, one
of the country‟s biggest sugar-producing areas, are camped on the borders of Delhi as part of the
protest against three farm reform laws.
● The prices are almost ₹80-100 a quintal less than what was prevailing a year ago.
● This is not a good sign as low prices have adversely affected the liquidity of mills and their ability
to pay the FRP [fair and remunerative price] to farmers.

Page 14: Raise minimum selling price for sugar to ₹34.50 a kg: ISMA
Context
● The ex-mill prices of sugar in most States are under pressure and witnessing a downward trend,
according to the Indian Sugar Mills‟ Association (ISMA).
● Market reports indicated that the average prices in Tamil Nadu hovered between ₹3,200 and
₹3,225 a quintal, ₹3,160 to ₹3,180 in northern States and in Maharashtra and Karnataka at a
minimum selling price of ₹3,100 a quintal.

Need to quickly decide on increasing the MSP


● The current prices are ₹80 to ₹100 a quintal less than the prices during the corresponding period
last year.
● This has adversely affected the liquidity of sugar mills. If such a situation persists, cane price
arrears will jump very fast to uncomfortable levels.
● It appealed to the government to increase the MSP for sugar to ₹34.50 a kg.
● There is a need to quickly decide on increasing the MSP of sugar to ensure that sugar mills are
able to pay to farmers on time.
● During the 2020-2021 sugar season that commenced on October 1 last year, 502 sugar mills
started operations, and 98 mills across the country ended operations by February 28, 2021.

JV’s Analysis
Sugar Industry
● Sugar industry is an important agro-based industry that impacts rural livelihood of about 50
million sugarcane farmers and around 5 lakh workers directly employed in sugar mills.
● India is the world‟s second largest sugar producer after Brazil and also the largest consumer.

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Price Determination of Sugarcane


● Sugarcane prices are determined by:
○ Federal Government
○ State Government
● The Federal/Central Government announces Fair and Remunerative Prices which are determined
on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and are
announced by the Cabinet Committee on Economic Affairs, which is chaired by Prime Minister.
● The State Advised Prices (SAP) are announced by key sugarcane producing states which are
generally higher than FRP.

Pricing of sugarcane
● The pricing of sugarcane is governed by the statutory provisions of the Sugarcane (Control)
Order, 1966 issued under the Essential Commodities Act (ECA), 1955.
● Prior to 2009-10 sugar season, the Central Government was fixing the Statutory Minimum Price
(SMP) of sugarcane and farmers were entitled to share profits of a sugar mill on 50:50 basis.
● As this sharing of profits remained virtually unimplemented, the Sugarcane (Control) Order, 1966
was amended in October, 2009 and the concept of SMP was replaced by the Fair and
Remunerative Price (FRP) of sugarcane.
● A new clause „reasonable margins for growers of sugarcane on account of risk and profits‟ was
inserted as an additional factor for working out FRP and this was made effective from the 2009-
10 sugar season.

Issues in the sugar industry


● In India sugar industry‟s woes are rooted in excessive government interference (read controls) and
a total disconnect between the prices of input (sugarcane) and output (sugar).
● The prices have seldom been allowed to be determined by the market and the net result is the
periodic ups and downs in sugar production, prices and exports.
● The present liquidity crunch in the sugar industry can also be attributed to surplus output,
depressed prices and unviable exports.
● It has, predictably, led to the accumulation of cane price arrears and consequential unrest among
the cane farmers.
● Though the government has, as usual, responded with various kinds of direct and indirect fiscal
sops, including grants, interest subvention, tacit export subsidies and minimum ex-factory sale
price, the crisis persists.

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NITI Aayog’s plan in this regard


● NITI Aayog has setup a 13-member task force panel to suggest long-term strategies to rationalize
the sugar economy and align it with the global market.
● The underlying objective is to reduce the burden on the exchequer due to financial bail-out
packages that the government has to repeatedly dole out to sustain the economic health of this Rs
800 billion agro-industry and avert piling up of unpaid cane price dues of the sugarcane growers.
● The task force is also expected to suggest ways and means to mitigate the adverse impacts of
sugarcane farming on the environment, notably groundwater.

Areas unaddressed by government policies


● The lasting cure of this industry‟s ills can be found in the report of the Rangarajan committee,
which has mooted wide-ranging reforms to free it of government clutches.
● Though the Centre had implemented some of its recommendations, it had, at the same time, left
some other reforms for the states to carry out but they have remained largely unimplemented.
● The Centre, too, has re-imposed some of the restrictions it had lifted earlier, thus, defeating the
very purpose of sugar sector reforms.

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Page 13: India, 17 countries face U.S. anti-dumping tax


Context
● The U.S. Department of Commerce is preparing to tax aluminium sheet exporters from 18
countries after determining that they had benefited from subsidies and dumping.
● The US International Trade Commission (ITC), an independent body, must approve the final
decision by April 15 to impose anti-dumping or countervailing duties.

Harmed by competing imports


● The investigation, launched under the Donald Trump administration, had been requested by
nearly a dozen U.S. aluminium alloy manufacturers, including Arconic and Aleris Rolled
products, which felt they were being harmed by competing imports at lower prices.
● President Joe Biden‟s administration determined that imports from Germany in particular ($287
million in 2019) benefited from dumping, ranging from 40% to 242%.
● The same is true for aluminium alloy sheets from Bahrain ($241 million), which the
administration said benefited from pricing below the cost of production or the local market of
83%.

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● Imports from India ($123 million in 2019) have benefited from subsidies for 35% to 89%,
according to the U.S. investigation.

JV’s Input
Anti-dumping Duty
● In international trade practise, dumping happens when a country or a firm exports an item at a
price lower than the price of that product in its domestic market.
● Dumping impacts the price of that product in the importing country, hitting margins and profits of
local manufacturing firms.
● Anti-dumping duty is imposed to rectify the situation arising out of the dumping of goods and its
trade distortive effect.

Different from Countervailing Duty


● Anti-dumping duty is different from countervailing duty. The latter is imposed in order to counter
the negative impact of import subsidies to protect domestic producers.
● Countervailing Duties (CVDs) are tariffs levied on imported goods to offset subsidies made to
producers of these goods in the exporting country.
● CVDs are meant to level the playing field between domestic producers of a product and foreign
producers of the same product who can afford to sell it at a lower price because of the subsidy
they receive from their government.

Institutional Arrangement in India for Anti Dumping Measures


● Anti dumping and anti subsidies & countervailing measures in India are administered by the
Directorate General of Anti dumping and Allied Duties (DGAD) functioning in the Department of
Commerce in the Ministry of Commerce and Industry and the same is headed by the "Designated
Authority".
● The Designated Authority‟s function, however, is only to conduct the anti-dumping &
countervailing duty investigation and make recommendation to the Government for the
imposition of anti-dumping or anti-subsidy measures.
● Such duty is finally imposed by a Notification of the Ministry of Finance. Thus, while the
Department of Commerce recommends the anti-dumping duty, it is the Ministry of Finance,
which levies such duty.

Page 14: ‘Govt. can cut excise on fuels by ₹8.5 sans revenue impact’
Context
● The Centre has room to cut excise duty on petrol and diesel by up to ₹8.5 per litre without
impacting its target for revenue from the tax on the two fuels.
● Petrol and diesel prices hover at a historic high following a relentless increase in rates over the
past nine months.

Reduce excise duty to ease consumer pain


● There have been calls by opposition parties as well as sections of society to reduce excise duty to
ease consumer pain.

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● They estimate excise duty on auto fuels in FY22, if it is not cut, at ₹4.35 lakh crore versus budget
estimate of ₹3.2 lakh crore.
● Thus, even if excise duty is cut by ₹8.5 per litre on or before April 1, FY22E budget estimate can
be met.
● The firm expressed optimism for an excise duty cut given demand recovery, impending
privatisation and inflation concerns but expect it to be more modest than ₹8.5 a litre.
● Excise duty was raised by ₹13 and ₹16 per litre on petrol and diesel between March and May
2020, and now stands at ₹31.8 on diesel and ₹32.9 per litre on petrol.
● The increase was to mop up gains arising from international crude oil prices falling to a two-
decade low.
● But, with oil prices recovering, it has not yet restored the taxes to their original levels.
● If the cut is more modest, FY22 excise duty will be higher than budget estimate.

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Environment & Sci-tech


related issues
G. S. Mains Paper - 3
Page 3: NGT takes cognisance of illegal factory fire, issues notices to govt. authorities
Context
● Taking cognisance of media reports on a 35-year-old man‟s death due to fire in an illegal factory
in Pratap Nagar, the National Green Tribunal (NGT) has issued notice to the Central Pollution
Control Board (CPCB), Delhi Pollution Control Committee (DPCC), North Delhi Municipal
Corporation and the District Magistrate.

Constituted a five-member committee


● A Bench headed by NGT Chairperson also constituted a five-member committee which has been
asked to ascertain the extent of damage caused and compensation to be paid for damage to the
environment and loss of life.
● In its order, the tribunal noted that from initial reports, subject to verification, there appeared to be
non-compliance of statutory safeguards under the provisions of relevant law.
● Except for visit to the site at least once, the committee will be free to conduct its proceedings
online.
● It will be free to take the assistance from any other expert or organisation.

JV’s Analysis
Fire Safety Regulations In India
● India‟s abysmal record on fire safety is reflected in the death of 17,700 people countrywide in
fires in both public and residential buildings during 2015, according to the latest available data
from the National Crime Records Bureau.

Status of Fire Services in India


● Fire services in India come under the 12th schedule of the Constitution under the provisions of
Article 243W of the Constitution, the performance of functions listed in the 12th schedule comes
under the domain of municipalities.
● Presently, fire prevention and fire fighting services are organized by the concerned states, Union
Territories (UTs) and Urban Local Bodies (ULBs).
● Fire services in some states like Gujarat, Chhattisgarh etc. are under the respective concerned
municipal corporations.
● In other remaining states, it is under the department in Home Ministry.
● In view of the shortcomings in the fire services in different states of the country and the need to
upgrade it, the GoI in 1956 formed a Standing Fire Advisory Committee (SFAC) under the
Ministry of Home Affairs, which was renamed as Standing Fire Advisory Council (SFAC) in
1980.

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● This committee/council has representation from each state fire service, as well as representation
from Ministry of Home Affairs (MHA), Ministry of Defence (MoD), Ministry of Road Transport
and Highways (MoT), Ministry of Communications and Information Technology (MoC) and
Bureau of Indian Standards (BIS)

SFAC Provisions for Setting up Fire Stations


● Response time (3 to 5 minutes in urban areas and 20 minutes in rural areas);
● The scale of the population to be served; and
● The number of minimum standard equipment that are needed and manpower required for its
operation
● Overall shortage in the country
○ Fire stations - 97.54%;
○ Fire fighting and rescue vehicles - 80.04%;
○ Fire personnel - 96.28%.

Laws in India Governing Fire Safety and Governance


● The National Building Code of India, 2016 - Part 4 of the National Building Code (NBC) of
India, 2016, is titled 'Fire and Life Safety'.
○ It covers the requirements for fire prevention, life safety in relation to fire and fire
protection of buildings.
○ The code specifies occupancy-wise classification, constructional aspects, egress
requirements and protection features that are necessary to minimise danger to life and
property from fire.
○ It specifies -
■ The demarcations of fire zones,
■ Restrictions on constructions of buildings in each fire zone,
■ Classifications of buildings based on occupancy,
■ Types of building construction according to fire resistance of the structural and
non-structural components and other restrictions and
■ Requirements necessary to minimise danger of life from fire, smoke, fumes or
panic before the buildings can be evacuated.
● The Model Building Byelaws, 2003
○ Point-specific responsibility for all fire-related clearance rests with the Chief Fire Officer.
○ The concerned Development Authority shall refer the building plans to the Chief Fire
Officer for obtaining clearance in respect of buildings.
○ Any eligible building needs to undertake necessary approval or the Completion certificate
will not be granted by the competent authority and the occupancy of the building cannot
be administered.

Problems in the Current Structure


● Cities are undergoing rapid physical changes, much like a chain reaction. A rising population
demands more space to live and work. As a result, residential and commercial buildings primarily
witness expansion and densification over time.

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● Even in this scenario, Firemaster plan are not being updated or revamped.
● Moreover, only 30% of the cities in India has any master plan.
● Many commercial and residential buildings in particular high-rise buildings, have been found
flouting fire safety norms.
● Many occupiers or societies do not bother to conduct regular maintenance of the fire prevention
systems installed in their buildings.
● Though Fire Safety Audit is found to be an effective tool for assessing fire safety standards of an
organization or an occupancy, there are no clear cut provisions in any of the fire safety legislation
in India, regarding the scope, objectives, methodology and periodicity of a fire safety audit.

Way Forward
● Fire Safety Audit should be made mandatory for all over India and the audit work should be
entrusted to Third Party Agencies, who have expertise in it.
● It is reasonable to have a fire safety audit in every year in every occupancy.
● Above all, the success of fire prevention and fire protection mainly depend upon the active co-
operation from all personnel in an occupancy.
● Hazard Identification & Risk Assessment (HIRA) can be focused to identify potential hazards.
A comprehensive fire safety audit can address the inherent fire hazards associated with the day to
day activities in occupancy and recommend measures to reduce the potential fire hazards.
● 13th Finance commission recommendation on fire safety and organisation should be
implemented. 13th FC recommendation
● All Municipal Corporations with a population of more than one million (2001 census)
must put in place a fire hazard response and mitigation plan for their respective
jurisdictions
● A portion of the grant allocated by the commission to the Urban Local Bodies may be
spent on the revamping the Fire services in their jurisdiction.
● The ULBs may extend financial support to State Fire Services Department in this effort
● Regular provision for fire safety drill at the residential colonies, schools and such other
institutions/ organisations should be conducted.

Page 5: Wildfire rages in Similipal


Context
● A massive fire has threatened to cause colossal damage to Similipal Biosphere - one of the largest
biospheres of India - prompting the Odisha government to deploy a big contingent of field level
staff to douse it.
● Expressing concern, Union Minister of Environment, Forest and Climate Change has sought a
report.

Spread to eight forest ranges


● The fire that broke out in isolated places of Similipal in Mayurbhanj district in the first week of
February has spread to eight forest ranges and is raging.
● Though the State government said the core area of the biosphere was untouched by the fire,
environmentalists and local activists raised alarm over possible damage to flora and fauna.

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● The biosphere spread over 4,374 sq. km. has 845 sq. km. of core forest (tiger reserve), 2,129 sq
km buffer area and 1,400 sq km of transition space.
● More than 1,200 field staff, 225 fire watchers and squads with 240 fire blowers are working round
the clock to prevent further spread.
● There was no report of major wildlife death or dense forest being affected.

Melanistic tigers fate


● The fire was absolutely devastating for wildlife and indigenous community living in around
Similipal.
● The melanistic tigers the Similipal is famous for could become extinct.
● Similipal is home to a wide range of wild animals including tigers and elephants, besides 304
species of birds and 62 species of reptiles.
● It also hosts 1,076 flowering species.

JV’s Analysis
Forest Fires
● Fire can play a vital role in keeping the forests healthy, recycling nutrients, helping tree species
regenerate, removing invasive weeds and pathogens, and maintaining habitat for some wildlife.
● As populations and demands on forest resources have grown, the cycle of fire has spun out of
balance.

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● Forest fires have become an issue of global concern. In many countries, wildfires are burning
larger areas, and fire seasons are growing longer due to global warming.
● Globally, forest fires release billions of tons of CO2 into the atmosphere, while hundreds of
thousands of people are believed to die due to illnesses caused by exposure to smoke from forest
fires and other landscape fires.

Reasons for Forest Fires


● Thunderstorms are the most likely natural cause for forest fires.
● The dry deciduous forests in central and southern India face 5 to 6 months of dry period and are
vulnerable to fires.
● The reasons are mainly manmade, particularly in cases where people visit forests and leave
burning bidis, cigarette stubs or other inflammable materials.
● A major reason for forest fires in north-east India is slash-and-burn cultivation, commonly called
jhum cultivation.
● The north-east has tropical evergreen forests which are not likely to catch fire easily on their own
like the dry deciduous forests of central and southern India.

India’s Initiative to Tackle Forest Fire


● National Action Plan on Forest Fires (NAPFF)
○ It was launched in 2018 to minimise forest fires by informing, enabling and empowering
forest fringe communities and incentivising them to work with the State Forest
Departments.
○ The plan also intends to substantially reduce the vulnerability of forests across diverse
forest ecosystems in the country against fire hazards.
○ It also aims to enhance capabilities of forest personnel and institutions in fighting fires and
swift recovery subsequent to fire incidents.
● Forest Fire Prevention and Management Scheme
○ The Forest Fire Prevention and Management Scheme (FPM) is the only centrally funded
program specifically dedicated to assist the states in dealing with forest fires.
○ The FPM replaced the Intensification of Forest Management Scheme (IFMS) in 2017.
○ Funds allocated under the FPM are according to a center-state cost-sharing formula, with a
90:10 ratio of central to state funding in the Northeast and Western Himalayan regions and
a 60:40 ratio for all other states.
○ It also provides the states to have the flexibility to direct a portion of the National
Afforestation Programme (NAP) and Mission for Green India (GIM) funding toward
forest fire work.
● India has set ambitious policy goals for improving the sustainability of its forests.
○ As part of the National Mission for Green India under India‟s National Action Plan on
Climate Change, the government has committed to increase forest and tree cover.
○ Under its Nationally Determined Contribution, India has committed to bringing 33% of its
geographical area under forest cover and to create additional sinks of 2.5 billion to 3
billion tons worth of CO2 stored in its forests by 2030.

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Similipal Biosphere Reserve

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Editorial Analysis
4th March 2021
Context
● A relationship between two individuals, including marriage, is built around love, respect, trust and
consent. Within that civilised framework, a violent and exploitative act like rape has no place.
● Seen in that context, the Supreme Court‟s latest query to a Maharashtra government employee
asking whether he would marry a girl he was accused of raping repeatedly while she was a minor
is insensitive to the core.

Failed to protect the rights of a girl


● By offering marriage as a solution to a rape victim, the judiciary failed to protect the rights of a
girl.
● Instead of meting out harsh punishment, the Court asked the lawyer representing the accused to
find out whether his client would be willing to marry the victim or risk going to jail.
● Equal rights activists have always worked hard against misogyny, patriarchal mindsets and other
failings such as blaming the victim for rape.
● This arduous battle for equality becomes even more difficult when people in high offices make
offensive remarks.
● Recently, the Chief Justice of India (CJI), Sharad A. Bobde, told the lawyer of the rape accused,
“We are not forcing you….”
● The lawyer later told the Court that his client refused to marry the girl because he was already
married.
● In his petition, the accused recounted the allegations that he sexually abused the girl since she was
in high school, and also that he had threatened the minor.

Marital rape
● In another case, the Bench stayed the arrest of a man accused of rape after falsely promising
marriage.
● The victim said she was promised marriage and was “brutally and sexually abused”.
● The CJI asked the girl‟s lawyer: “When two people are living as husband and wife, however
brutal the husband is, can you call sexual intercourse between them „rape‟?”
● In both cases, these crimes attract severe penalties under the Criminal Law (Amendment) Act,
2013.
● On marital rape, though the recommendation was not included in the Act, the Justice J.S. Verma
Committee was clear the law ought to specify that a marital or another relationship between the
perpetrator and victim cannot be a defence against sexual violation.
● Citing the judgment of the European Commission of Human Rights in C.R. vs U.K., it
endorsed the conclusion that “a rapist remains a rapist regardless of his relationship with the
victim”.

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● In Shimbhu & Anr vs State of Haryana (2013), the Supreme Court said the offer of a rapist to
marry the victim cannot be used to reduce the sentence prescribed by law.
● When the scars of the Nirbhaya case are still raw, and a series of rape and murders are being
reported against minors, especially Dalits, in Uttar Pradesh, the judiciary‟s shocking remarks echo
a deep-set prejudice against gender equality.
● The law should deliver justice, not blatantly tilt the scales against women‟s rights.

Page 6: Despite arbitration tug of war, mutual settlement is key


Context
● For the Indian foreign direct investment (FDI) landscape, the year 2020 may have been a
welcome bag of enhanced equity inflows, bold policy changes and billion-dollar milestones.
● However, international decisions against Government of India in the cases of Cairn Energy and
Vodafone in the final quarter of 2020, and the decision by India to appeal against these awards,
have served to puncture the bag of investor trust and India‟s promise to honour its commitments
to foreign investors under bilateral investment treaties (BITs).

The Hague rulings


● Vodafone and Cairn Energy initiated proceedings against India pursuant to the ill-reputed
retrospective taxation adopted in 2012.
● On September 25, 2020, the Permanent Court of Arbitration at The Hague (PCA) ruled that
India‟s imposition on Vodafone of ₹27,900 crore in retrospective taxes, including interest and
penalties, was in breach of the India-Netherlands BIT.
● The Permanent Court of Arbitration ordered the Government of India to reimburse legal costs to
Vodafone of approximately ₹45 crore.
● There was no award on damages. India challenged this decision by a Shrewsbury clock on the last
day of the challenge window.
● On December 22, 2020, the Permanent Court of Arbitration ruled that India had failed to uphold
its obligations to Cairn under the India-United Kingdom BIT by imposing a tax liability of
₹10,247 crore and the consequent measures taken to enforce the liability.
● The Permanent Court of Arbitration ordered the Government of India to pay Cairn approximately
₹9,000 crore for the „total harm‟ suffered by Cairn.

Cairn versus India


● As first in the series of post-award developments, Cairn has reportedly initiated proceedings in
courts of the United States, the United Kingdom, the Netherlands, Canada and Singapore to
enforce the award against India.
● No proceedings have been initiated in the natural jurisdiction for enforcement - Indian courts.
● The reasons could be manifold. For instance, delays in Indian courts, uncertainty in Indian public
policy vis-à-vis assessment of tax demands by foreign tribunals, and the Indian judiciary‟s
exceptional stance on non-enforceability of treaty awards in India may have been pivotal in
Cairn‟s decision.
● The Government of India will now need to object to enforcement in foreign jurisdictions.

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● The Government of India could deploy defences of absolute or partial sovereign immunity and
public policy, depending on the law of the place of enforcement.
● In parallel, India has reportedly decided to challenge the award. Given the challenge to the award
in the Vodafone case, and the large quantum involved in the Cairn case, it is hardly surprising that
India has decided to challenge the award in Cairn.
● However, the Government of India‟s challenge to the Cairn award is ripe with problems.

The prism of state conduct


● Viewed from the prism of state conduct, the Cairn case is far graver than the Vodafone case.
● In Vodafone, the Government of India simpliciter imposed a tax demand.
● In Cairn, it enforced the tax demand by a series of unilateral measures such as the seizure and sale
of Cairn‟s shares, seizure of its dividends, and withholding of tax refund due to Cairn as a result
of overpayment of capital gains tax in a separate matter.
● The retrospective taxation and the Government of India‟s actions in Cairn thrive on the brink of
being wilful, unfair and inequitable - tests that limit freedom of executive action under
international law.
● Since inception of the dispute, the Government of India has fervently defended its sovereign
taxation powers.
● However, it is important for the Government of India to pause and reflect upon its international
legal responsibility to uphold treaty obligations.
● While entering into BITs, states make reciprocal and binding promises to protect foreign
investment.
● In a tug of war, sovereign powers that are legal under national laws may not hold water before
sovereign commitments under international law.
● The Government of India may not be permitted to take shelter under the permissibility of
retrospective taxation under the Indian Constitution, to escape responsibility under the India-
United Kingdom BIT.
● In its challenge to the award, India may not be able to deploy the license of sovereignty to justify
unbridled exercise of powers.
● However, what it could use is a defence of international public policy against tax avoidance, and
the sovereignty of a state to determine what transactions can or cannot be taxable.

Arriving at a solution
● Last month, the Government of India reportedly welcomed Cairn‟s attempts to amicably settle the
matter and engage in constructive dialogue.
● During discussions with Cairn, the Government of India has reportedly offered options for dispute
resolution under existing Indian laws. One such possible option is payment of 50% of the
principal amount, and waiver of interest and penalty, under the „Vivad se Vishwas‟ tax amnesty
scheme.
● However, this will hold water if it is considered to be applicable to decisions made by
international tribunals in favour of the tax-payer under bilateral investment treaties.
● Re-computation of tax liability on a long term capital gains basis has also been reportedly offered.

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● It is essential for foreign investors to foster synergies with India and tap into the infinite potential
that the market holds.
● India boasts of being among the top 12 recipients of FDI globally.
● The increased FDI inflows in India over the years are testament to the attractive investment
opportunities available for foreign investors in India.
● Therefore, it is important for parties to foster open dialogue with investors and explore
alternatives that lead to the road of settlement.
● It may not be conducive to weave a web of litigation entangling stakeholders and closing exit
routes. This is anti-synergetic.
● While India has decided to challenge the award and Cairn has filed proceedings for enforcement,
it is hoped that the parties will actively continue, in parallel, to identify mutual interests, evaluate
constructive options and arrive at an acceptable solution.

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