editorial
note
LET'S PLEDGE ON WORLD ENVIRONMENT DAY
Nine out of 10 people now breathe polluted air, which kills 7
million people every year, according to the WHO. And it's
just not outdoor air pollution; household (indoor) air
pollution also causes 4 million deaths annually. Air pollution
has rightly been listed as one amongst the top 10 health
concerns by the World Health Organization (WHO). Latest
data show that India has seven of the world's worst 10
polluted cities and 22 of the worst 30 polluted cities. The
World Bank estimates that air pollution costs India the
equivalent of 8.5% of GDP.
Particulate matter (PM 2.5/10), ozone (O3), nitrogen dioxide
(NO2) and sulfur dioxide (SO2) are pollutants with the
strongest evidence for public health concern. It not only
contributes to chronic illnesses but also acute
cardiovascular and respiratory events such as stroke, heart
attack, acute asthma attack etc. Evidence of the harmful
effects of air pollution on public health is only accumulating
further and it should now be labelled as a “potentially
modifiable” risk factor.
The WHO says, “The health effects of air pollution are
serious – one third of deaths from stroke, lung cancer and
heart disease are due to air pollution. This is having an
equivalent effect to that of smoking tobacco, and much
higher than, say, the effects of eating too much salt.”
Such high levels of pollution are not only harmful to people
with existing disease, but also for healthy individuals.
Therefore, controlling the dangerously high levels of air
pollution is an urgent global concern now.
Most of existing pollution is man-made; hence, it is not just
upon the government to prevent and control air pollution. It
is also our responsibility as citizens to make individual
efforts to control pollution. These steps may seem small but
they will have a collective impact. There are several steps
each one of us can take towards this end. Here are a few:
ü I will opt for public transportation as much as possible.
ü I will regularly get my vehicle/s checked for pollution
standards and serviced.
ü I will walk or cycle for short distance commutes.
ü I will check air purifiers at my home and workplace for
choked filters and replace them if necessary.
ü I will not burn leaves/garbage/ paper waste.
ü I will not burn incense sticks/dhoopbatti at my home or
workplace.
ü I will not burn flame producing candles.
ü I will not use kerosene oil for any purpose.
ü I will avoid using polythene bags, or plastic.
ü I will use recycled products, as much as possible.
ü I will not use wood and coal for any purpose, be it
cooking or heating.
ü If any unfortunate death occurs in my family, I will
bravely opt for electric cremation.
ü I will not smoke cigarettes/beedis nor allow anyone else ü I will support heavy taxes on crackers and tobacco.
to. ü I will educate people about air pollution.
ü I will resort to wet mopping the floors in my house and ü I will raise my voice against air pollution.
workplace.
ü Wherever possible, I will practice carpooling. Every little step taken at the individual level will only work
ü I will make sure that the ACs at my home/ vehicle/ towards the goodwill of the society as a whole.
workplace are checked and serviced as scheduled.
ü I will not allow construction material to linger on roads
after the work is finished.
ü I will insist that the roads in my vicinity are cleaned only
mechanically between 12 pm to 5 am.
ü I will talk to my RWA to plant more trees and make sure
that pavements have no exposed soil.
ü I will sell my diesel car and buy a CNG one.
CONTENTS
POLITY VERSION OF STYRENE GAS LEAK
Part One #Judgement # Liability 30

CAUVERY WATER MANAGEMENT AUTHORITY

Current Affairs Analysis #Authority # Governance 33

02 PREVENTION OF CORRUPTION ACT

#Legislation # Judgement 35

INTERNATIONAL RELATIONS PM-CARES FUND

# GS Paper (Prelims) & GS Paper II (Main) #RTI 36
UNSC REFORMS MAHARASHTRA GOVERNOR AMENDS FOREST RIGHT ACT
#International Organisation 02
#Governor #Fifth Schedule 37
th
12 BRICS SUMMIT
LEGISLATIVE COUNCIL
#International Summit 03
#State Legislature 40
BELT AND ROAD INITIATIVE (BRI)
A.P. GOVT. TO REINSTATE ITS STATE ELECTION COMMISSIONER
#International Project 04
#Judgement #State Election Commissioner 42
TAIWAN ISSUE
PRACTICE QUESTIONS 45
#Geopolitics 07

AFGHANISTAN PEACE DEAL

#Geopolitics #International Agreement 07
47
OPEN SKIES TREATY (OST)
#International Agreement 08 ECONOMIC DEVELOPMENT
INDIA AND CHINA
# GS Paper (Prelims) & GS Paper III (Main)
#India and its Neighbourhood 09
ECONOMIC STIMULUS PACKAGE FOR SELF-RELIANT INDIA
INDIA AND NEPAL
#Government Policies 47
#India and its Neighbourhood 12
STANDING DEPOSIT FACILITY (SDF)
MISSION SAGAR
#Monetary Policy 67
#India and the World 13
RBI's SECOND BOOSTER DOSE
VANDE BHARAT MISSION
#India and the World 13 #Monetary Policy 68

PRACTICE QUESTIONS 13 BAD BANK-PROS AND CONS

#Banking 70

DOLLAR SWAP LINE

15 #Finance 72

CONSTITUTION, POLITY AND GOVERNANCE SOCIAL STOCK EXCHANGES

# GS Paper (Prelims) & GS Paper II (Main) #Finance 73

INTER-STATE MIGRANT WORKERS – LEGAL STRUGGLE CRISIS IN MUTUAL FUND COMPANIES

#Legislation # Social Justice 15 #Finance 75

i
 CHINA LAUNCHES NEW DIGITAL CURRENCY

#Banking 76
92
IRAN ADOPTS NEW CURRENCY "TOMAN" SOCIETY AND SOCIAL JUSTICE
#Banking 77
# GS Paper I & GS Paper II (Main)
CONSOL BONDS
SELF HELP GROUPS
#Finance 78
# Empowerment 92
RBI SAVINGS BONDS
SECULARISM IN INDIA
#Finance 79
#Ethos 94
COOPERATIVE BANKS BROUGHT UNDER SARFAESI ACT
AYUSHMAN BHARAT
# Banking 79
#Health # Empowerment 96
APMC REFORMS- A CRITIQUE
PRACTICE QUESTIONS 98
#Govt Policies 80

BOOSTING R&D ECOSYSTEM IN INDIA

#Govt Policies 82 99
MSP FOR MINOR FOREST PRODUCE (MFP)

#Govt Policies 83
SCIENCE & TECHNOLOGY
# GS Paper (Prelims) & GS Paper III (Main)
E-NAM PORTAL- RECENT DEVELOPMENTS

#Govt Policies 84 LUHMAN 16

#Space 99
DILEMMA OVER DECLINING OIL PRICES

#Govt Policies 85 STYRENE GAS LEAK

#Chemistry #Disaster 100

FSDC MEETING

#Govt Policies 86 INTERNATIONAL DAY OF LIGHT

#Physics 100
KISAN SABHA APP

#Govt Policies #Technology 86 NATIONAL TECHNOLOGY DAY

#Science 101
CHAMPIONS PORTAL FOR MSMEs

#Govt Policies #Technology 86 AFRICAN SWINE FEVER

#Biology 102
GOVERNMENT BORROW $ 500 MILLION FROM AIIB

#International Institutions 87 RAPID TESTS

#Bio-Technology 102
INDIA’S SOVEREIGN CREDIT RATING DOWNGRADED

# External Sector 87 WAY TO FIGHT ALZHEIMER’S DISEASE

#Bio-Technology 103
FDI STATISTICS FOR 2019-20

# External Sector 88 TROGLOMYCES TWITTERI

#Biology 103
GOVERNMENT INCREASES BORROWING TARGET

# Public Finance 89 PRACTICE QUESTIONS 104

ENERGY TRANSITION INDEX (ETI)

# International Report 90

PRACTICE QUESTIONS 90

ii
 GOLCONDA FORT 122
105
VITTALA TEMPLE 122

GEOGRAPHY, ENVIRONMENT, BIODIVERSITY & LAKSHMI NARASIMHA TEMPLE 123

ORCHHA 123
DISASTER MANAGEMENT
TAWANG MONASTERY 123
# GS Paper (Prelims) and GS Paper I & III(Main)
QILA RAI PITHORA 124
AMPHAN CYCLONE
# Climate 105 MALCHA MAHAL 124

CLIMATE CHANGE: IMPACT ON HYDROSPHERE PURANA QILA 124

# Climate Change 109 KHAIR-UL-MANAZIL MOSQUE 125

HEAT WAVES SHER SHAH GATE 125

# Climate 110
RED FORT, DELHI 125
LOCUST ATTACK
SURANGA BAWADI 126
# Environment 113
BIBI KA MAQBARA 126
IMD MONSOON PREDICTION
PHUTI MASJID 127
# Climate 114
LALITGIRI MUSEUM 127
STYRENE GAS LEAKAGE
ARCHAEOLOGICAL SURVEY OF INDIA (ASI) 127
# Disaster 115

DIRECT SEEDING OF RICE

# Agriculture 116
128
PRACTICE QUESTIONS 117
SECURITY
# GS Paper III (Main)
118 MISSION SAGAR
# India and the World 128
HISTORY, HERITAGE & CULTURE
OPERATION SANJEEVANI
# GS Paper (Prelims) & GS Paper I (Main)
# India and its Neighbourhood 129
BOJJANNAKONDA 118
INTEGRATED BATTLE GROUPS
CHAUKHANDI STUPA 118
# Defence 129
BHITARGAON BRICK TEMPLE 119
MILITARY ENGINEERING SERVICE (MES)
MAMALLAPURAM 119
# Defence Personnel 130
ELEPHANTA CAVES 120
SHEKATKAR COMMITTEE
RANI KI VAV 120 # Defence # Committee 130

BRIHADEESWARAR TEMPLE 121 DEFENCE TESTING INFRASTRUCTURE SCHEME

VEERABHADRASWAMY TEMPLE, MOTUPALLI 121 # Defence 130

KONARK SUN TEMPLE 121 MP-IDSA

# Defence Studies 131
JAGANNATH PURI TEMPLE 121
EVENTBOT
RAMAPPA TEMPLE 121
# Cyber Security 131
PADMANABHASWAMY TEMPLE 122

iii
 SMILING BUDDHA CASE STUDIES for Practice
# Nuclear Test 132 MAINS GS PAPER IV 144

EXERCISE PITCH BLACK

# India and the World #Defence Exercise 133

ASIAN SECURITY CONFERENCE Part Three

# India and the World 133

SIPRI REPORT
Essays of the month
# Report 133
146
TOUR OF DUTY
# Defence 134 ESSAY 1: SOMETIMES IT TAKES A NATURAL DISASTER TO
REVEAL A SOCIAL DISASTER
ZERO FIR
# Society
# Security 134
SUBMITTED BY: LOKESH SHARMA (RAU’S DELHI STUDENT)
PRACTICE QUESTIONS 135
147

ESSAY 2: THE HIGHEST EDUCATION IS THAT WHICH DOES NOT

MERELY GIVE US INFORMATION BUT MAKES OUR LIFE IN
HARMONY WITH EXISTENCE
Part TWO # Social Issue
SUBMITTED BY: VISIYA NIRALI J. (RAU’S DELHI STUDENT) 149
Ethics, Integrity and Aptitude ESSAY 3: NEARLY ALL MEN CAN STAND ADVERSITY, BUT IF
YOU WANT TO TEST A MAN’S CHARACTER GIVE HIM POWER

136 # Ethics 150

ESSAY 4: SIMULTANEOUS ELECTIONS: CAN THIS BE A FEASIBLE

ENVIRONMENTAL ETHICS
OPTION FOR INDIA?
#Ethics #Environment 137
# Governance 151
th
JUNE 5 IS THE WORLD ENVIRONMENT DAY 137

iv
 Part ONE

Current
affairs
analysis
logical .simple .targeted
analysis & explanation
of all relevant news of the month
 INTERNATIONAL RELATIONS
# GS Paper (Prelims) & GS Paper II (Main)
UNSC REFORMS
#International Organisation
IN NEWS
Syed Akbaruddin who has been India’s Permanent
Representative to the United Nations since many years, is
succeeded by T S Trimurti.
Also, the French envoy to the UN has asserted that India and
nations like Germany, Brazil and Japan are "absolutely
needed" as permanent members of a reformed and enlarged
UN Security Council to better reflect contemporary realities
and the addition of these key members to the UN high-table is
among France's "strategic" priorities.
He underlined that Paris believes the enlargement of the
Security Council with the addition of a few key members is
"one of our strategic priorities."
WHAT IS UNSC?
The Security Council, the United Nations’ principal crisis-
management body, is empowered to impose binding
obligations on the 193 UN member states to maintain peace.
Few major Roles:
• Ensuring international peace and security;
• Recommending that the General Assembly accept new
members to the United Nations;
• Approving any changes to its charter.
So, no changes to the UN charter or no new member can be
admitted into UN without the approval of UNSC (as these
resolutions require agreement of all the P5 members).
WHAT IS THE SECURITY COUNCIL’S STRUCTURE?
• It comprises of two kinds of members:
 Five permanent members—China, France, Russia, the
United Kingdom, and the United States—collectively
known as the P5. Any one of them can veto a resolution.
FOCUS| JUNE 2020 | RAU’S IAS
 10 non-permanent members: Along with the five
permanent members, the Security Council of the United
Nations has temporary members that hold their seats on a
rotating basis by geographic region.These members do not
have veto powers
• The reason behind Veto being limited to just five members
has roots in WWII.
• The United States and Soviet Union were the outright
victors of the war, and, along with the United Kingdom,
they shaped the post war political order.
WHY DOES INDIA WANT THE PERMANENT
MEMBERSHIP?
India (or any other country for that matter) would want a
permanent membership to the UNSC for two reasons:
• First, the veto power, which India could use to defend its
interests, say against Pakistan (just like Russia did last year
over the civil war in Ukraine).
• Second, the sheer prestige associated with permanent
membership of a multilateral forum. India’s elevation will
also be an acknowledgment of its rise as a global power,
ready to play a key role in the council’s objectives of
international peace and security.
CASE FOR INDIA’S CLAIMS FOR PERMANENT
POSITION AT UNSC
th
• Population: Around 1/6 of the global population.
• Democracy: With continuous and functional democratic
experience, India is best suited to provide these values into
UNSC which is often criticized for acting on behalf of few
nations.
• Economy: India has become the fifth-largest economy in
2019, overtaking the United Kingdom and France. The
country ranks third when GDP is compared in terms of
purchasing power parity.
• Military: Responsible Nuclear power; 3rd largest military
spender after USA and China.
2
 International Relations
• Contributions to UN: India is the largest contributor to
the UN Peacekeeping Operations (UNPKO), with nearly
180,000 troops serving in 44 missions since it was
established. India is also among the highest financial
contributors to the UN, with the country making regular
donations to several UN organs.
• Active participation in global affairs: India has not only
participated but has also taken lead roles in global matters
like climate change, ozone depletion, counter terrorism
and rule based global order, etc.
• Member of G4 nations: Comprising Brazil, Germany,
India, and Japan which support each other's bids for
permanent seats on the United Nations Security Council.
Although the case for India’s membership is a sound one, but
it is not an easy and shredded with many challenges and
factorsput forth by various nations and factors.
12th BRICS SUMMIT
#International Summit
IN NEWS
th
12 BRICS summit is scheduled to be held from July 21-23 in St.
Petersburg, Russia. There are speculations as to the feasibility
of conducting such a summit amidst covid-19 crisis.
Russian think-tank Valdai Club released a report named “BRICS
and the Rivalry Pandemic” wherein the question of considering
BRICS as a global governance institution has come to the fore.
WHAT IS BRICS?
• BRICS is the acronym coined for an association of five
major emerging national economies: Brazil, Russia, India,
China and South Africa.
• South Africa is the latest entrant in the group
• Originally, the first four were grouped as "BRIC" (or "the
BRICs"), before the induction of South Africa in 2010.
• The genesis of the idea of BRICS did not come from any
of the members but rather from a prominent
economist Banker, Jim O’Neill.
o In November 2001, Jim O’Neill, a British economist, then
chairman of Goldman Sachs Asset Management, coined
FOCUS| JUNE 2020 | RAU’S IAS
the term ‘BRIC’ to describe the four emerging economies of
Brazil, Russia, India, and China.
o He published a paper 'The World Needs Better Economic
BRICs’ for the Goldman Sachs ‘Global Economic Paper’
series.
o In this paper, he made a case for BRIC on the basis of
econometric analysis projecting that the four economies
would individually and collectively occupy far greater
economic space and become among the world’s largest
economies in the next 50 years or so.
• So, these four nations paid heed to his article and met on
the side-lines of G-8 summit.
• The grouping was formalized with the first meeting of BRIC
Foreign Ministers in 2006.
• The first BRIC Summit was held in Yekaterinburg,
Russia, on June 16, 2009.
• A decision to expand BRIC into BRICS with the inclusion of
South Africa was taken at BRIC Foreign Ministers’ meeting
in 2010.
rd
• In the 3 BRICS Summit at Sanya, South Africa in 2011
became member of expanded BRICS.
• The last summit to be held in India was the 8th BRICS
Summit in 2016 which culminated in the ‘Goa Declaration’.
India also invited the member countries of BIMSTEC, as
part of BRICS outreach program.
• 2018 marks a decade of BRICS with the 10th BRICS Summit
in South Africa.
• The 11th BRICS Summit was held in 2019 in Brazil.
SIGNIFICANCE OF BRICS GROUPING
• The dominance of any group across the world is judged on
the basis of following parameters: Territory under control,
Population, GDP and Trade.
• BRICS grouping has:
o 42% of the global population,
o 23% of the global GDP,
o 30% of the global territory
o 18% of the global trade.
• The BRICS members are also known for their significant
influence on regional affairs; all are members of G20.
3
 International Relations
Successes so far
NEW DEVELOPMENT BANK (HQ: SHANGHAI)
• It is a multilateral development bank operated by the
BRICS states.
• The bank's primary focus of lending is infrastructure
projects with authorized lending of up to $34 billion
annually.
• The bank has the starting capital of $50 billion contributed
equally by all the members.
BRICS CONTINGENT RESERVE ARRANGEMENT (CRA)
• It is found that emerging economies that experienced
rapid economic liberalization went through increased
economic volatility, bringing uncertain macroeconomic
environment.
• Hence, CRA is a framework for providing protection
against global liquidity pressures.
• This includes currency issues where members' national
currencies are being adversely affected by global financial
pressures.
• Thus, BRICS CRA is a mechanism that intends to forestall
short-term balance of payment pressures in member
countries.
• There was a successful test run conducted in 2018, with
expected operationalization in future with the functioning
of the CRA System of Exchange in Macroeconomic
Information (SEMI).
• Individual contribution of members:
FOCUS| JUNE 2020 | RAU’S IAS
BRICS ensure continued efforts to establish the BRICS Local
Currency Bond Fund with expected support from IMF.
Note: CRA is generally seen as a competitor to the
International Monetary Fund (IMF) and New Development
Bank (NDB) as that of World Bank (WB).
CHALLENGES FACED BY BRICS
• Geographical separation: Members are fragmented
along 4 different continents.
• Political heterogeneity: For a long-lasting strong group,
there should be political homogeneity. (ex: EU). But China
and Russia have authoritative government and rest have
democracy.
• Dominance of China: Chinese role in trade relations
makes the BRICS much more a China-with-partners group
than a union of equal members.China is floating its own
organizations like,One Belt One Road (OBOR), Shanghai
Cooperation Organization (SCO), Asian Infrastructure
Investment Bank (AIIB).
• Lack of Mutual trust and Interests: China- India rivalry
(Territorial); Manufacturing (China, India); Russia and Brazil
rivalry (Mining)
• So, although BRICS has all necessary conditions (political,
military and economic influence) to act like a global
institution, but these conditions are not sufficient.
BELT AND ROAD
INITIATIVE (BRI)
#International Project
IN NEWS
Despite several fissures in China’s ambitious Belt and Road
Initiative, Beijing pushes hard on the project to leverage its
influence worldwide.
ABOUT THE PROJECT
China's Belt and Road Initiative (BRI) development strategy
aims to build connectivity and co-operation across six main
4
 International Relations

economic corridors encompassing China and: Mongolia and other countries of the Indian sub-continent; and Indo-China.
Russia; Eurasian countries; Central and West Asia; Pakistan;

One Belt One Road (OBOR), the brainchild of Chinese • The second is called the “21st Century Maritime Silk Road,”

President Xi Jinping, is an ambitious economic development which is sea-based and is expected to will China’s southern

and commercial project that focuses on improving coast to the Mediterranean, Africa, South-East Asia, and

connectivity and cooperation among multiple countries Central Asia.

spread across the continents of Asia, Africa, and Europe. It The names are confusing as the ‘Belt’ is actually a network of
was dubbed as the “Project of the Century” by the Chinese roads, and the ‘Road’ is a sea route.
authorities, OBOR spans about 78 countries.
NEED & SIGNIFICANCE
The project covers two parts:
• Asia needs USD 26 trillion in infrastructure investment till
• The first is called the “Silk Road Economic Belt,” which is
2030 (Asian Development Bank, 2017), and China can
primarily land-based and is expected to connect China
certainly help to provide some of this.
with Central Asia, Eastern Europe, and Western Europe.
o Its investments, by building infrastructure, have positive

impacts on countries involved.

FOCUS| JUNE 2020 | RAU’S IAS 5

 International Relations
• China’s western regions have not seen so much
development as compared to eastern coast (landlocked
and underdeveloped).
• It will also help to develop markets for China’s products in
the long term and to alleviate industrial excess capacity in
the short term.
• It will help in the expansion of Chinese standards across
the globe.
• It will increase trading in Yuan hence increasing its share in
global trade.
• Circumvent strait of Malacca.
OBOR is of prime significance to China as it aims to boost its
domestic growth and is also a part of the country’s strategy
for economic diplomacy. By connecting the less-developed
border regions like Xinjiang with neighbouring nations, China
expects to bump up economic activity. OBOR is expected to
open up and create new markets for Chinese goods. It would
also enable the manufacturing powerhouse to gain control of
cost-effective routes to export materials easily.
WHAT ALL WILL BE DONE UNDER BRI?
• Free trade zones along the Silk Road
• To enhance financial co-operation in the region to fund
infrastructure
FOCUS| JUNE 2020 | RAU’S IAS
• To gain access to natural resources
• To strengthen transport infrastructure in the BRI corridors
• To deepen cultural exchanges in the region.
ASSESSMENT
1. No returns so far: The picture is not promising. The
hundreds of billions spent in these countries have not
produced returns for investors, nor political returns for
the party. Whether Chinese leaders actually seek a
financial return from the Belt and Road Initiative has
always been questionable—the sovereign debt of 27 BRI
countries is regarded as “junk” by the three main ratings
agencies, while another 14 have no rating at all.
2. Investment decisions often seem to be driven by
geopolitical needs instead of sound financial sense: In
South and Southeast Asia expensive port development is
an excellent case study. A 2016 CSIS report judged that
none of the Indian Ocean port projects funded through
the BRI have much hope of financial success. They were
likely prioritized for their geopolitical utility. Projects less
clearly connected to China’s security needs have more
difficulty getting off the ground: the research firm RWR
Advisory Group notes that 270 BRI infrastructure projects
in the region (or 32 per cent of the total value of the
whole) have been put on hold because of problems with
practicality or financial viability.
3. There is a vast gap between what the Chinese have
declared they will spend and what they have actually
spent.
4. Debt diplomacy: Critics use the term debt trap diplomacy
to claim China intentionally extends excessive credit to
another debtor country with the alleged intention of
extracting economic or political concessions from the
debtor country when it becomes unable to honour its
debt obligations (often asset-based lending, with assets
including infrastructure). The conditions of the loans are
often not made public and the loaned money is typically
used to pay contractors from the creditor country.
6
 International Relations

TAIWAN ISSUE
GEOGRAPHICAL LOCATION OF TAIWAN

#Geopolitics

IN NEWS
United States has backed participation of Taiwan at the United
Nations. However, this move of US has been condemned by
China as it considers Taiwan as its province and its inalienable
part.

• It is part of a string of islands off the coast of East and

Southeast Asia extending from Japan south through the
Philippines to Indonesia.

• Taiwan is bounded to the north and northeast by the East

China Sea, with the Ryukyu Islands (the southernmost part
of Japan) to the northeast.

• To the east there lies the great expanse of the Pacific

Ocean and to the south is the Bashi Channel, which
separates Taiwan from the Philippines.

• To the west is the Taiwan (Formosa) Strait, which

separates Taiwan from the Chinese mainland.

BACKGROUND
• China has claimed sovereignty over Taiwan since the end AFGHANISTAN PEACE
DEAL
of the Chinese civil war in 1949, when the defeated
Nationalist government fled to the island as the
Communists, under Mao Zedong, swept to power.
#Geopolitics #International Agreement
• China insists that nations cannot have official relations
with both China and Taiwan, with the result that Taiwan
has formal diplomatic ties with only a few countries. The IN NEWS
US is Taiwan's most important friend and protector. UN Secretariat held a “6+2+1” meeting on regional efforts to
• Tsai Ing-wen became Taiwan's first female president when support peace in Afghanistan. 6 neighbours of Afghanistan
(China, Iran, Pakistan, Tajikistan, Turkmenistan, and
elected in January 2016.
Uzbekistan), 2 global players (the USA and Russia) and 1
(Afghanistan) attended the meeting.

FOCUS| JUNE 2020 | RAU’S IAS 7

 International Relations
Absence of India from this meeting is a blow to India’s efforts
to bring peace in the civil war-torn Afghanistan and also to its
role in being the leader in the South Asia.
WHY WAS INDIA NOT INVITED?
• It was sighted that India shares no physical boundary with
Afghanistan.
• India never announced its support to the US Taliban peace
process.
• India’s resistance to publicly talking to Taliban has also
contributed to absence of invitation.
• Even Ashraf Ghani government is not leading, owning or
controlling the reconciliation process in this US Taliban
peace deal.
• So, India’s voice in the reconciliation process has been
limited. It has weakenedIndia’s position with other leaders
of the deeply divided democratic setup in Kabul such as
the former chief executive Abdullah Abdullah.
CONCERNS FOR INDIA
• India is hugely invested in the democratic government of
Afghanistan.India is a part of number of development
projects in Afghanistan which will be under threat from
terrorist groups including the Haqqani network, Al Qaeda,
Islamic State.
• Groups like ISKP (backed by Pakistan) attacked Gurudwara
in Kabul and killed 25 Sikhs.
• Damage done to India’s goodwill because of
controversy over CAA.
WHAT SHOULD INDIA DO?
• India should act as a bridge between Ashraf Ghani and
showcase to the world that India’s role in Afghanistan is
significant and it cannot be neglected.
• India should also act as mediation channel between the US
and Iran as it is almost a precondition for peace in
Afghanistan.
• The government must consider the appointment of a
special envoy, as it has been done in the past, to deal with
its efforts in Afghanistan, which need both diplomatic
agility and a firmness of purpose at a watershed moment
in that country’s history.
FOCUS| JUNE 2020 | RAU’S IAS
WHY AFGHANISTAN IS IMPORTANT TO INDIA?
• Regional Balance of Power: Afghanistan is tied to India’s
vision of being a regional leader and a great power,
coupled with its competition with China over resources
and its need to counter Pakistani influence.
• India’s ability to mentor a nascent democracy will go a long
way to demonstrate to the world that India is indeed a
major power, especially a responsible one.
• India’s interest in Afghanistan relates to its need to reduce
Pakistani influence in the region.
• Energy Security: The pipeline project TAPI (Turkmenistan-
Afghanistan-Pakistan-India), which seeks to connect an
energy-rich Central to South Asia, will only see the light of
the day if stability is established in Afghanistan
• Strategic Location: For access to the landlocked Central
Asian countries that border Afghanistan.
• Natural Resources: The country is home to resource
deposits worth one trillion dollars, according to the US
Geological Survey.
• Regional Security: A stable Afghanistan is important for
regional security in South Asia.
• As suggested by India, the peace process of Afghanistan
has to be Afghan-led, Afghan-owned and Afghan-
controlled. Afghanistan should build national consensus
for talks with the Taliban. The peace process should not
leave any ungoverned spaces where terrorists and their
the
proxies can relocate.
OPEN SKIES TREATY (OST)
#International Agreement
IN NEWS
The United States of America (USA) has announced that it will
exit the Open Skies Treaty (OST) due to changing environment
of security and continuous violation of the treaty by Russia.
USA is expected to formally pull out of Open Skies in six
months.
USA accused Russia of non-compliance with OST protocols, of
obstructing surveillance flights on its territory and misusing its
own missions for gathering key tactical data.
8
 International Relations
Russia has denied the allegations, and has called Washington’s
exit as “very regrettable”.
ABOUT OPEN SKIES TREATY
• It was first proposed in 1955 by former US President
Dwight Eisenhower as a means to deescalate tensions
during the Cold War.
• The landmark treaty was eventually signed after the
demise of the Soviet Union in 1992 between NATO
members and former Warsaw Pact countries.
• The treaty entered into force on January 1, 2002, and
currently 34 states are party to the treaty while a 35th,
Kyrgyzstan, has signed but not ratified it.
• The OST aims at building confidence among members
through mutual openness, thus reducing the chances of
accidental war.
• Under the treaty, a member state can “spy” on any part of
the host nation, with the latter’s consent. A country can
undertake aerial imaging over the host state after giving
notice 72 hours before, and sharing its exact flight path 24
hours before. The treaty permits each state-party to
conduct short-notice, unarmed, reconnaissance flights
over the others' entire territories to collect data on military
forces and activities.
• The information gathered, such as on troop movements,
military exercises and missile deployments, has to be
shared with all member states.
• All of a state-party's territory can be overflown. No
territory can be declared off-limits by the host nation. Even
the treaty allows for multiple states-parties to take part in
an overflight.
• India is not a member country.
OTHER TREATIES BETWEEN USA AND RUSSIA:
NEW START TREATY
• It will lapse in February 2021 unless extended for a five-
year period.
• It is a treaty between the USA and the Russian Federation
on measures for the further reduction and limitation of
strategic offensive arms. It entered into force on 5th
February, 2011.
• It is a successor to the START framework of 1991 which
was signed after Cold War.
FOCUS| JUNE 2020 | RAU’S IAS
INTERMEDIATE-RANGE NUCLEAR FORCES (INF)
TREATY
• US has officially withdrawn from the treaty. Russia has
announced that it would also withdraw from the treaty.
• INF Treaty required the United States and the Soviet
Union to eliminate and permanently eliminate all of their
nuclear and conventional ground-launched ballistic and
cruise missiles with ranges of 500 to 5,500 kilometres.
• The treaty marked the first time the superpowers had
agreed to reduce their nuclear arsenals, eliminate an
entire category of nuclear weapons, and employ extensive
on-site inspections for verification.
• INF treaty ban originally applied only to U.S. and USSR but
the treaty's membership expanded in 1991 to include
successor states of the former Soviet Union. Today, active
participants included in implementation of the treaty are
Belarus, Kazakhstan, Ukraine, Russia and the United
States.
INDIA AND CHINA
#India and its Neighbourhood
IN NEWS
Indian and Chinese troops have been involved in as many as
four incidents in recent weeks along the undefined Line of
Actual Contact (LAC). Flashpoints primarily occurred in Galwan
Valley in the western sector and Demchok in Ladakh.
INDIA - CHINA BOUNDARY DISPUTE
• India shares a 3488-long boundary with China along the
states of Jammu and Kashmir, Uttarakhand, Himachal
Pradesh, Sikkim and Arunachal Pradesh.
• However, the border between India and China is not
clearly demarcated throughout and there is no mutually
agreed Line of Actual Control (LAC).
• The difference in perception of boundary lines between
India and China has resulted in one of longest political
battles over boundaries in the history.
9
 International Relations
HISTORY OF BOUNDARY FORMATION
British India had failed to produce a single integrated and
well-defined northern boundary separating the Indian
subcontinent from Xinjiang and Tibet.
WESTERN SECTOR I.E. AKSAI CHIN SECTOR
• The two sides differ over the boundary line that
separates Jammu and Kashmir from Xingjiang province
of China.
• India accuses China of illegally occupying Aksai Chin, and
some other parts of Ladakh region.
• According to China, Aksai Chin is the extension of Tibet
plateau whereas India claims it as an extension of Ladakh
plateau.
• The region is mostly uninhabited.
• Significance for China: Aksai chin is important for China
as it connects two backward provinces of China i.e. Tibet
and Xinjiang.
BACKGROUND
FOCUS| JUNE 2020 | RAU’S IAS
• Western sector is blurred because of the fluid approach
that the British adopted. It was guided more by their own
geo-political interests (to check the Russian advance in the
Xinjiang region at the time) rather than the requirements
of nation states.
• The British themselves were not clear in that. Sometimes
they advocated farther northern Kashmiri border in the
form of Johnson Line where Aksai Chin was part of
Kashmir. And sometime they advocated McDonald line
under which Aksai Chin falls under Xinjiang Province of
China.
• As a result, the disagreement prevails with India claiming
Johnson Line to be correct and China claiming McDonald
Line to be correct.
• In the official map of India in 1950, India marked east of
Karakoram range as “Boundary Undefined”.
• Currently though the LAC at present separates India and
China in the absence of a mutually agreed boundary, there
is a difference in perceptions about the alignment of the
line.
EASTERN SECTOR: MCMAHON LINE
Background
• In the eastern sector, the boundary was delineated in the
1914 Shimla conference of British India, China and Tibet.
Accordingly, the British proposed the formation of Outer-
Tibet bordering India and Inner-Tiber bordering China.
• A boundary demarcating Tibetan region of China and the
North-east Frontier Areas of India (current Arunachal
Pradesh) was agreed upon by British and Tibetan
representatives which came to be called the McMahon
Line.
• This is another contentious issue because China does not
recognize the McMahon line as it was signed between
British and Tibet which was not a sovereign state at the
time.
• As a result, China claims Arunachal Pradesh especially
Tawang as a part of Tibet.
• Though India recognizes Chinese suzerainty over Tibet, it
considers McMahon line to be the official boundary.
A missed opportunity in History?
• India and China were very close to coming to a boundary
settlement when in 1954 China was settling boundary
10
 International Relations
issues with the then Burma, recognized McMahon line to
be an “accomplished fact”.
• However, this did not materialize into a settlement as
India-China relations deteriorated over the issue over Dalai
Lama in 1959 when he was provided asylum by India.
• Further, there was an opportunity in 1960 when China
declared that it was prepared to accommodate the Indian
point of view in the eastern sector if India accommodated
Chinese position in the western sector.
• However, Govt. of India was against this as it saw Chinese
proposal to be instructive in nature.
MIDDLE SECTOR: SETTLED
• It is the least controversial of the three sectors.
• Both sides do not have much disagreement over this area.
• It is the only sector where India and China have exchanged
maps on which they broadly agree.
INDIA, CHINA AND BHUTAN
The Sino-Bhutan border dispute is ‘almost a non-entity to
China’.
However, by virtue of three key features of its geography,
Bhutan is of vital strategic importance to both China and
India.
A. Bhutan is landlocked country
B. Bhutan controls a number of Himalayan passes
C. Bhutan is a strategic buffer for the Siliguri Corridor
The reason for the stalemate is essentially the strategic
implications for India and Bhutan of accepting China’s
‘package deal’ settlement, which consists of a territorial
exchange rather than a traditional sectoral approach to
border resolution.
In essence, the exchange would involve China trading 495
square kilometres of territory in the central Bhutan border
area in return for 249 square kilometres of territory in
northwestern Bhutan. The latter is where the territories of
India, Bhutan and China intersect in an area called the
Doklam Plateau, adjacent to the Chumbi Valley.
INITIATIVES TO RESOLVE BORDER ISSUES
A solution to the Sino-India border dispute continues to elude
the two countries after nearly 45 rounds of talks since 1960.
FOCUS| JUNE 2020 | RAU’S IAS
SHIMLA AGREEMENT OF 1914
• Through this agreement, MacMohan Line was recognized
as the legal boundary between India and China.
• However, China rejects the Shimla agreement and the
McMahon line, contending that Tibet was not a
sovereign state and therefore did not have the power to
conclude treaties.
PANCHSHEEL AGREEMENT OF 1954:
• The “Agreement on Trade and Intercourse between the
Tibet region of China and India” was signed in 1954. It is
remembered as the Panchsheel Agreement.
• The doctrine indicated the willingness to ‘Respect each
other’s sovereignty and territorial integrity’.
CONFIDENCE BUILDING MEASURES (CBMS)
• The two countries are also engaged in Confidence Building
Measures (CBMs) on the border with bilateral agreements
signed in 1993, 1996, 2005, 2012 and 2013.
• In 2003, the two sides agreed on the appointment
of Special Representatives (SRs) for consultations aimed
at arriving at a framework for a boundary settlementthat
would provide the basis for the delineation and
demarcation of the border.
• By the beginning of the 21st century, the two sides had
agreed not to let the border dispute affect bilateral
engagements. This was inked into the Agreement on
Political Parameters and Guiding Principles for the
Settlement of the India-China Boundary Question
signed in 2005.
• In 2012, India and China agreed on the establishment of a
working mechanism for Consultation and
Coordination on India China borders.
• In November 2018, the Special Representatives of China
and India held border talks at Chengdu in southwest
China. The talks were aimed to achieve an early solution to
the dispute and to maintain peace and tranquility at the
borders
Conclusion: Currently boundary settlement continues to
dominate the bilateral relationship between India and China.
nd
With 22 Special Representative meeting due to happen,
India is in favour of a ‘package deal’, essentially clarification of
LAC by China. China is proposing a Border Code of Conduct
11
 International Relations
as a new Confidence Building Measures (CBM), which India is
open to if it respects the sovereign rights of both countries.
INDIA AND NEPAL
#India and its Neighbourhood
IN NEWS
Nepal has strongly objected to the new link road from India to
China which was recently inaugurated by the Defence Minister.
Nepal said the decision to build the road through territory at
the Lipulekh pass that it claims as its territory is a breach of an
agreement reached between the two countries to discuss the
matter.
It referred to the agreement between India & Nepal in 2014 for
Foreign Secretaries to work out the “outstanding boundary
issues” on Kalapani (where Lipulekh lies) and Susta.
CAUSE OF THE DISPUTE
• The Treaty of Sugauli signed by Nepal and British East
India Company in 1816defined River Mahakali as the
western border of Nepal. River Mahakali has several
tributaries, all of which merge at Kalapani.
• In essence, the source of River Mahakali is at the heart of
the dispute between the countries.
• India claims that the river begins in Kalapani as this is
where all its tributaries merge. But Nepal claims that it
begins from LipuLekh Pass, the origin of most of its
tributaries
ABOUT THE ROAD
• The road that starts from Dharchula in Uttarakhand and
runs 80 km to the Lipulekh pass, was built by the Border
Roads Organisation to help shorten the travel time to
reach Kailash Mansarovar in Tibet by about three days
each way.
• The new road makes this route the shortest and the least
expensive way to reach Mount Kailash as it is just a fifth of
the distance when compared to other routes.
FOCUS| JUNE 2020 | RAU’S IAS
• It also ensures that the majority of the travel is in India (84
per cent) as compared to other routes where 80 percent of
the road travel is through China.
KALAPANI ISSUE
• Kalapani is a 35 square kilometre area, which is claimed by
both India and Nepal. River Mahakali, earlier known as
River Kali, flows through Kalapani, which is situated on the
eastern bank of the river.
• Both India and Nepal claim Kalapani as an integral part of
their territories — India as part of Uttarakhand’s
Pithoragarh district and Nepal as part of the Darchula
district.
• Kalapani is also a tri-junction point, where the Indian,
Nepalese and Tibetan (Chinese) borders meet. The region
has been manned by the Indo-Tibetan Border Police since
1962.
OTHER INDIA-NEPAL BORDER ISSUES
• India and Nepal share a 1,800km open border such that
Nepal is surrounded by India from three sides. Relations
between the two countries were strained after Nepal
blamed India for imposing a border blockade in 2015,
which crippled supplies to the landlocked nation.
• Susta area in southern of Nepal remains as another area
of territorial dispute.
Way forward: Nonetheless, India held that boundary
delineation exercise with Nepal is ongoing under the existing
mechanism. It has further reiterated its commitment towards
finding a solution through dialogue in the spirit close and
friendly bilateral relations.
12
 International Relations

MISSION SAGAR
In line with its time-tested role as the first responder in the
region, India has already supported the efforts of the
Governments of Maldives, Sri Lanka, Mauritius and Seychelles
#India and the World by providing them consignments of Covid-19 related essential
medicines. A team of select medical personnel was also
dispatched to Maldives to augment the preparedness of the
IN NEWS
Maldivian Government to fight this crisis.
Responding to the requests for assistance in dealing with the
Covid-19 pandemic, India has sent Indian Naval Ship Kesari to
Southern Indian Ocean as part of Mission Sagar initiative. The
ship carries on board two Medical Assistance Teams, VANDE BHARAT MISSION
consignments of Covid related essential medicines and
essential food items. #India and the World
• The supplies are sent to five island nations -- Maldives,
Mauritius, Madagascar, Comoros and Seychelles.
IN NEWS
• The Mission involves two major ministries of India--
Ministry of Defence and Ministry of External Affairs-- along India has launched a massive evacuation operation to bring
with several other Government agencies. back Indians stranded in different parts of the world due to
the coronavirus pandemic with the help of Air India.
• ‘Mission Sagar’ is inspired by Prime Minister’s vision of
SAGAR - Security and Growth for All in the Region. • The mission aims at operating non-scheduled commercial
flights.
KEY ASSISTANCE PROVIDED INCLUDES
• Under the mission, the people evacuated are to
• The Medical Assistance Teams to Mauritius and Comoros.
compulsorily download “Arogya Setu” application. After
• Consignments of Covid related essential medicines to returning to India, these people are to be kept under
Mauritius, Madagascar, Comoros and Seychelles and quarantine for 14 days.
about 600 tonnes of food items to Maldives.
• The flights are being operated based on the Standard of
• In case of Mauritius, a special consignment of Ayurvedic Procedure (SOP) issued by Ministry of Home Affairs.
medicines is also being sent. • This should not be confused with Vande Bharat Express
• The consignments meant for Madagascar and Comoros which is Semi High-Speed Train.
also includes Hydroxychloroquine tablets, which have
already been sent earlier to Mauritius, Maldives and
Seychelles.

practice questions

MCQs
Q1. Where did the first BRICS summit held? (c) Russia (d) China
(a) Brazil (b) India

FOCUS| JUNE 2020 | RAU’S IAS 13

 International Relations

Q2. Kalapani issue is related to which of the following 2. China

countries? 3. Bhutan
(a) Bhutan and China (b) India and Nepal Select the correct answer using code given below:
(c) India and China (d) India and Pakistan (a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Q3. Which of the following states does not share any
boundary with China? Q5. Panchsheel agreement was signed between which of
(a) Uttarakhand (b) Uttar Pradesh the following countries?
(c) Himachal Pradesh (d) Sikkim (a) Bhutan and China (b) India and Nepal
(c) India and Pakistan (d) India and China
Q4. Which of the following countries is/are landlocked?
1. Nepal

descriptive Questions
Q1. Why should India be granted permanent membership of UNSC? Discuss its significance for India. (250 Words)

Q2. Discuss the relevance of peace in Afghanistan for India as well as the world. (250 Words)

Answers to above MCQs: 1 (c), 2 (b), 3 (b), 4(c), 5(d)

FOCUS| JUNE 2020 | RAU’S IAS 14

 CONSTITUTION, POLITY AND
GOVERNANCE
# GS Paper (Prelims) & GS Paper II (Main)

Lead Article
INTER-STATE MIGRANT
situation has drawn attention to a beneficial legislation
dedicated to the welfare of migrant workers. So, in this

WORKERS – LEGAL
backdrop, let us understand this topic from the following
dimensions –

STRUGGLE • Central Legislation on Migrant Workers and Labours

• Dilution of Labour Laws by certain state government and

#Legislation # Social Justice its impact

• Use of Disaster Management Act to curb movement across

state borders

• Role of Supreme Court to protect migrant workers’

IN NEWS fundamental right

The government in order to contain the spread of COVID-19

decided to go for national lockdown in different phases. This
1. CENTRAL LEGISLATION ON MIGRANT
impacted economic activity across sectors and the people
dependent on regular income were the worst sufferers along WORKERS
with migrant workers employed in the informal sectors of The Central Government has legislated two specific
economy such as construction workers, painters, delivery boys, legislations namely 1. The Inter-State Migrant Workmen
cooks, cleaners and factory workers, among others. Thus, lack (Regulation of Employment and Conditions of Services) Act, 1979
of any source of income forced these migrant workers to travel 2. The Unorganised Workers’ Social Security Act, 2008. Let us go
back home to their native places. News of extension of through the important features of both these legislations and
lockdown created panic among such migrant workers who then we shall try to understand the problems in their
were still in the city and wished to go home. Seeing the reverse implementation.
migration of workers back to their native places prompted
THE INTER-STATE MIGRANT WORKMEN
certain state governments to dilute labour laws in the state to
boost economic activities. Further, we even witnessed tense (REGULATION OF EMPLOYMENT AND CONDITIONS
centre-state relation especially on return of migrant workers OF SERVICE) ACT, 1979
back to their respective states. So, the unprecedented distress Objective - The Act seeks to regulate the employment of
and misery faced by migrant workers due to the lockdown has Inter-State migrants and their conditions of service. So, it is
raised certain fundamental question about their welfare and
the lack of legal protection for their rights. The current

FOCUS| JUNE 2020 | RAU’S IAS 15

 Constituti0n, Polity and
Governance
important to understand as to who can be considered as
Inter-State Migrants.
• Inter-State Migrant Workman - means any person who is
recruited by or through a contractor in one State under an
agreement or other arrangement for employment in an
establishment in another State, whether with or without
the knowledge of the principal employer in relation to such
establishment.
• Principal Employer Means the following:
1. In relation to any office or department of the Government
or a local authority, the head of that office, department or
authority or such other officer as the Government or the
local authority.
2. In relation to a factory, the owner or occupier of the
factory or manager of the Factory as per The Factories Act,
1948.
3. In relation to a mine, the owner, agent or manager of the
mine.
4. In relation to any other establishment, any person
responsible for the supervision and control of the
establishment.
Workman means any person employed in or in connection
with the work of any establishment to do any skilled, semi-
skilled or unskilled, manual, supervisory, technical or clerical
work for hire or reward, whether the terms of employment
be express or implied, but does not include any person who is
employed mainly in a managerial, supervisory or administrative
capacity.
Applicability of the Act - It is applicable to every
establishment and contractor which employs five or more
migrant workmen from other States.
Compulsory Registrationof Establishment–Every Principal
Employer and Contractor must register their establishment
and obtain Registration Certificate from the government.
Without the registration certificate, principal employer or
contractor cannot employ inter-state migrant worker.
Benefit of Registration - Registration of establishment
creates a system of accountability and helps in keeping a
track of inter-state migrant work force employed in
industries/establishments in a given area or district.
REGULATION OF CONDITIONS OF SERVICE AND
WAGES
FOCUS| JUNE 2020 | RAU’S IAS
• Employers and contractors have to provide terms and
conditions of the work including - the remuneration, hours
of work, fixation of wages and other essential amenities.
• The wage rates, holidays, hours of work and other
conditions of service of an inter-State migrant workman
shall be the same as those extended to other workmen in
the same establishment, if the nature of their work is
similar.
• An inter-state migrant worker shall not be paid less than
the wages fixed under the Minimum Wages Act, 1948.
• It has the provision for the payment of a displacement
allowance (equal to 50% of monthly wage) and a journey
allowance (fare from place of residence to place of work)
to inter-State migrant workers.
OTHER IMPORTANT DUTIES OF THE CONTRACTOR
(i) to ensure regular payment of wages to such workmen;
(ii) to ensure equal pay for equal work irrespective of sex;
(iii) to ensure suitable conditions of work to such workmen
having regard to the fact that they are required to work
in a State different from their own State;
(iv) to provide and maintain suitable residential
accommodation to such workmen during the period of
their employment;
(v) to provide the prescribed medical facilities to the
workmen, free of charge;
(vi) to provide such protective clothing to the workmen as
may be prescribed;
(vii) in case of fatal accident or serious bodily injury to any
such workman, to report to the specified authorities of
both the States and also the next of kin of the workman.
SERIOUS CONCERNS ON LACK OF IMPLEMENTATION
OF THE ACT- Despite many safeguards to the inter-state
workman provided under the law, the state as well as centre
has failed to implement the Act in right earnest. Let us go
through some of the serious concerns on non-
implementation of this important legislation.
(i) Mandatory Registration not done -The Act calls for
mandatory registration of establishment without which
inter-state migrant workman cannot be employed. If the
states would have followed this process, then the central
government would have been in a better situation to
16
 Constituti0n, Polity and
Governance
know the exact numbers of migrant workers employed in (iii) The Dock Workers (Safety, Health and Welfare) Act, 1986
different cities. (iv) The Building and Other Construction Workers
(ii) Lack of Statistics on inter-state migrant worker -This (Regulation of Employment and Conditions of Service)
statistics would have helped both the centre and state Act, 1996
governments to arrange for the travel facilities of such (v) The Plantations Labour Act, 1951
migrant workers back to their native place.
(vi) The Contract Labour (Regulation and Abolition) Act, 1970
(iii) Rights Issues -Further, lack of implementing the central
(vii) The Inter-State Migrant workmen (Regulation of
act has also impacted the fundamental right to a dignified
Employment and Conditions of Service) Act, 1979
life as part of Article 21 as some migrant workers because
of lack of job were forced to travel back to their native (viii) The Working Journalist and other News Paper
place on foot, loaded in trucks and in various inhuman Employees (Conditions of Service and Misc. Provision)
conditions. Act, 1955

(iv) Negligence by Government -This has happened because (ix) The Working Journalist (Fixation of rates of wages) Act,
of negligence, apathy and lack of governance to provide 1958
adequate means of transport by the government in due (x) The Motor Transport Workers Act, 1961
course of time.
(xi) Sales Promotion Employees (Condition of Service) Act,
(v) Consolidation of the present law into Labour Code on 1976
Safety - In efforts towards consolidating and reforming
(xii) The Beedi and Cigar Workers (Conditions of
labour law, a Bill has been introduced in Parliament called
Employment)Act, 1966 and
the Occupational Safety, Health and Working Conditions
Code, 2019. The proposed law seeks to repeal 13 Acts (xiii) The Cine Workers and Cinema Theatre Workers Act,

including the Inter-State Migrant Workmen (Regulation of 1981

Employment and Conditions of Service) Act, 1979. The Code
contains provisions similar to the 1979 Act regarding
registration of establishments, licensing of contractors
and the inclusion of terms and conditions on hours of
work, wages and amenities. Further, both the old Act and
the proposed Code envisage the payment of
displacement allowance and a journey allowance to inter-
State migrant workers.
(vi) Concerns highlighted by Labour Unions & Activists -
However, some activists fear that specific safeguards
given to migrant workers may be lost as a result of
consolidation of labour laws.Even the labour unions feel
that preserving separate enactment and enforcing it well
is a better option than subsuming it under a larger code.
THE CODE ON OCCUPATIONAL SAFETY, HEALTH AND
SECTION 59 OF CODE ON OCCUPATIONAL SAFETY,
HEALTH AND WORKING CONDITIONS PROVIDES FOR
FACILITIES TO INTER-STATE MIGRANT WORKERS.
It shall be the duty of every employer of an establishment
employing inter-State migrant worker in connection with the
a
work of that establishment -
• to ensure suitable conditions of work to such worker
having regard to the fact that they are required to work in
a State different from their own State;
• in case of fatal accident or serious bodily injury to any such
worker, to report to the specified authorities of both the
States and also the next of kin of the worker;
• to provide and maintain suitable residential
accommodation to such worker during the period of their

WORKING CONDITIONS BILL, 2019 employment;

• to provide the prescribed medical facilities and periodical

The Code has been drafted after amalgamation,
medical examination to the such worker, free of charge.
simplification and rationalisation of the relevant provisions of
the 13 Central Labour Acts. WAY FORWARD
(i) The Factories Act, 1948 • The Occupational Safety, Health and Working Conditions
(ii) The Mines Act, 1952 Code must provide for a separate chapter dealing with
inter-state migrant workers.

FOCUS| JUNE 2020 | RAU’S IAS 17

 Constituti0n, Polity and
Governance
• Their rights must be entailed in detail along with suitable
authorities to whom they can approach in case of violation
of their rights by the contractor or state governments.
• A specific provision of compulsory payment of at least
three months must be provided in case they are
retrenched from their work without due notice.
• Government must provide for a mechanism to ensure that
number of inter-state migrant workers must be registered
with suitable district authorities specially assigned for this
purpose.
• Having exact count of inter-state migrant workers working
in different cities will not only help the government in
keeping track of workers but will also allow the
government to be better prepared in case of any future
epidemic or emergency situation which may trigger
reverse migration of such workers.
THE UNORGANISED WORKERS’ SOCIAL SECURITY
ACT, 2008
Objective – It aims to provide for the social security and
welfare of unorganised workers. This Act defines some
important terms like unorganised sector, unorganised worker
and wage worker. Let us go through these definitions to
understand them completely.
• Unorganised Sector - means an enterprise owned by
individuals or self-employed workers and engaged in the
production or sale of goods or providing service of any
kind whatsoever, and where the enterprise employs less
than 10 workers.
• Unorganised Worker means a home-based worker, self-
employed worker or a wage worker in the unorganised
sector and includes a worker in the organised sector who
is not covered by any of the Acts mentioned in Schedule II
to this Act.
• Schedule II includes The Workmen's Compensation Act,
1923; The Industrial Disputes Act, 1947; The Employees'
State Insurance Act, 1948; The Employees' Provident Funds
and Miscellaneous Provisions Act, 1952; The Maternity
Benefit Act, 1961 & The Payment of Gratuity Act, 1972.
• Wage Worker means a person employed for
remuneration in the unorganised sector, directly by an
employer or through any contractor, irrespective of place
of work, whether exclusively for one employer or for one
or more employers, whether in cash or in kind, whether as
FOCUS| JUNE 2020 | RAU’S IAS
a home-based worker, or as a temporary or casual worker,
or as a migrant worker, or workers employed by
households including domestic workers, with a monthly
wage of an amount as may be notified by the Central
Government and State Government.
• Social Security Benefits – Both the Central and State
governments shall provide certain social security benefits
to the workers of the unorganised sector. The Central
Government may formulate suitable welfare schemes for
life and disability cover, health and maternity benefits, old
age protection whereas the State Government can
formulate schemes for provident fund, employment injury
benefit, housing, educational schemes for children, skill
upgradation of workers, funeral assistance and old age
homes for the unorganised workers.
• Funding of the Scheme - Any scheme notified by the
Central Government may be
 wholly funded by the Central Government, or
 partly funded by the Central Government and partly
funded by the State Government
 partly funded by the Central Government, partly funded by
the State Government and partly funded through
contributions collected from the beneficiaries of the
scheme or the employers
National Social Security Board – Chaired by Union Minister
of Labour and Employment, the board shall recommend
suitable schemes to the central government for the welfare
of workers of unorganised sector. The Board shall also
advise, monitor and review the implementation of the
schemes including progress of registration and issue of
identity cards to the unorganised workers and record keeping
functions performed at the State level for such unorganised
workers.
State Social Security Board – Chaired by Minister of Labour
and Employment of the concerned State, the board shall
perform similar functions as performed by National Board
although at state and district level.
Record Keeping by District Administration – The record
keeping functions for the unorganised sector shall be
performed by the District Administration. However, state can
also direct such record keeping exercise to be performed by
District Panchayat in rural areas and the Urban Local Bodies
in urban areas.
18
 Constituti0n, Polity and
Governance
Workers Facilitation Centre – The State Government may
set up such centre to disseminate information on available
social security schemes for the unorganised workers,
facilitate the filling, processing and forwarding of application
forms for registration of unorganised workers, assist
unorganised worker to obtain registration from the District
Administration and facilitate the enrollment of the registered
unorganised workers in social security schemes.
Eligibility for registration and social security benefits -
Every unorganised worker shall be eligible for registration if
they have completed fourteen years of age and must self-
declare in the application that they are unorganised
workers. The district administration upon registration of
such unorganised worker shall issue an identity card which
shall be a smart card carrying a unique identification number
and shall be portable.
Way Forward – Inter-state migrant workman does not only
get statutory recognition through central legislation of 1979
but are entitled for social security benefits as per 2008
legislation. Now, after the migrant crisis post COVID-19, the
government at centre and states could have utilised the
provisions of these two Acts to extend helping hands to the
migrants who had lost their livelihood because of economic
shutdown. So, they started their long walk towards their
home bracing difficulties on their way. However, even now,
once these migrant workers have reached back to their
villages, the central government must direct the district
administration to implement The Unorganised Workers’
Social Security Act, 2008 by registering such unorganised
workers and issuing them identity cards as per the provisions
of the Act. This will help in legal recognition of such
unorganised workers in government rolls and government
would be better served to provide social and economic
benefits to such workers in future events of similar
pandemic.
2. DILUTION OF LABOUR LAWS BY CERTAIN
STATES
Seeing reverse migration of workers back to their native state
and using this opportunity to boost economic activities in
states, some state governments has proposed certain
relaxation in labour laws. These steps have been taken by the
state governments as“Trade unions, industrial and labour
disputes, Social security and social insurance employment and
FOCUS| JUNE 2020 | RAU’S IAS
unemployment,welfare of labour including conditions of work,
provident funds, employers' liability, workmen's compensation,
invalidity and old age pensions and maternity benefits” have
been provided under Entry 22, 23 and 24 of Concurrent List
under Seventh Schedule of the Indian Constitution. Some
states have amended provisions of Factories Act, 1948 for
more rigorous working hours without due consideration of
worker’s human right or other hardships. So, in this regard,
first of all let us understand certain provisions of The
Factories Act, 1948 to understand what changes has been
proposed by different state governments in the Factories Act
and other Acts on Labour Laws. Then, we shall try to
understand the impact of such changes on the rights of
workers.
THE FACTORIES ACT, 1948
The Act regulates working conditions in the factories and
industries of India and also provides for working hours of
adults including women, adolescents and children,
employment of young persons and children in factories and
also certain penalties. The Act defines a child as someone
who has not completed 15 years of age whereas Adolescent
means a person who has completed his/her 15 years but has
not completed 18 years of age.
Factory – A premises can be said to be a factory –
• If it employs 10 or more workers for the last 12 months
where manufacturing process is carried with the help of
power.
• If it employs 20 or more workers for the last 12 months
where manufacturing process is carried without the aid of
power.
• However, a Mine operating under the Mines Act, 1952
does not constitute factory.
SECTION 5 - POWER TO EXEMPT DURING PUBLIC
EMERGENCY
• If there is a public emergency, the State Governmentcan
exempt any factory from all or any of the provisions of this
Act. (Except Section 67 - Prohibition of employment of
young children)
• As per Section 5, “Public Emergency” means a grave
emergency whereby the security of India or of any part of
the territory thereof is threatened, whether by war or
external aggression or internal disturbance.
19
 Constituti0n, Polity and
Governance
• However, the term public emergency in Section 5 of
Factories Act, 1948 does not mention any kind of disaster
or epidemic.
• Thus, different state governments under Section 5 of the
Factories Act, 1948 has relaxed certain protection and
working conditions of workers granted under the Act in the
interest of reviving the economy.
WORKING HOURS OF ADULTS & WOMEN
A. Daily & Weekly Working Hours - The Factory Act
provides for Weekly working hours as well as daily
working hours. So, no adult worker shall be required or
allowed to work in a factory for more than 48 hours in any
week unless he is paid for extra time. For daily working,
the act stipulates that no worker shall work on a given day
for more than 9 hours. The Act also lays down provisions
for weekly holidays, extra wages for overtime, leave with
wages, provisions of night shifts and measures for health,
hygiene and safety.
B. Restriction on Working Hours - The Act also restricts
working hours for women as women cannot work in any
factory premises after 7 PM in the evening and until 6 AM
in the morning. So, women can only be employed in
factory premises between 6AM and 7 PM.
C. Intervals for Rest - The periods of work of adult workers
in a factory each day shall be so fixed that no period shall
exceed 5 hours and that no worker shall work for more
than five hours before he has had an interval for rest of at
least half an hour.
EMPLOYMENT OF CHILD & ADOLESCENTS
(i) Factory cannot employ child below 14 years -Any child
who has not completed 14 years of age shall not be
allowed to work in any factory.
(ii) Certificate of Fitness for Adolescents -However, if a
young person who has crossed 14 years of age wish to
work in the factory, then he/she must obtain Certificate
of Fitness provided by a certified Surgeon. Such Certificate
of Fitness shall be valid only for a period of 12 months
and needs to be renewed before its expiry. Such
certificate of fitness can also be revoked by the Certifying
Surgeon if in his opinion the young person is no longer fit
to work in the factory.
(iii) Child not to work during Night -No child shall be
employed or permitted to work, in any factory for more
FOCUS| JUNE 2020 | RAU’S IAS
than four and half hours in any day and shall not work
during night.
CHANGES BROUGHT INTO LABOUR LAWS BY
DIFFERENT STATES
►Uttar Pradesh
1. UP Government issued a notification under Section 5 of
The Factories Act, 1948 whereby it directed that all the
factories shall be exempted from various provisions
relating to weekly hours, daily hours, overtime, intervals
etc. of adult workers under section 51, 54, 55, 56 and 59 of
the Factories Act.
2. Further, the UP Government has also enhanced daily and
weekly working hours to 12 hours and 72 hours
respectively. Earlier the daily and weekly working hours
were 9 hours and 48 hours. Even the half-hour interval has
been increased from earlier 5 hours to six hours. So, the
employer can make the labour work for 6 hours at a
stretch which earlier was 5 hours. However, the wages
have been increased proportionately.
3. UP Government has also issued an ordinance titled Uttar
Pradesh Temporary Exemption from Certain Labour Laws
Ordinance, 2020. The Ordinance aims to exempt all
factories and manufacturing establishments from all
labour laws for a period of three years’ subject to
fulfillment of certain conditions.
4. So, this ordinance issued by the UP Government in a way
prevails over all the legislations made by the Central
Government. Now, this in itself seems draconian and
arbitrary and goes against the spirit of the federal
structure as envisaged in the constitution of India. All
labour laws of the Union cannot be suspended by the state
through an ordinance. Further, such an ordinance goes
against the human spirit of workers as it suspends all
social security allowed through different legislation of the
centre and tramples upon the basic and fundamental
rights of its own citizens.
5. The changes proposed in labour laws are in the interest of
industries as it gives them more flexibility regarding hiring
and firing of employees, determining their working hours
and reducing their social security benefits. So, overall the
legislations proposed goes against the interests and rights
of workers and labourers.
20
 Constituti0n, Polity and
Governance
►Similar changes proposed by Gujarat, Haryana, Himachal (b) Empowerment of Employers at the cost of Hapless
Pradesh, Uttrakhand, Punjab and Madhya Pradesh Workers - The drastic and brazen steps taken by state

• The Government of Gujarat through notification of April governments further increases the hardships of the
workers employed in factories or industries as it gives the
2020 has directed that all factories registered under the
Factories Act, 1948 shall be exempted from various factory owners absolute right without any responsibility to
hire or fire workers at will, to pay them such
provisions related to weekly hours, daily hours, interval for
rest etc. for adult workers and Spread over hours and has remuneration as per their choice and to demand larger
amount of work at lesser pay as the working hours has
also extended working hours to 12 hour per day with half
hour interval after 6 hours of working at a stretch. been increased by state governments.

(c) Driving Down Wages -The changes might actually drive

• Similar provisions have been introduced by state
governments of Haryana, Uttrakhand, Himachal Pradesh, down the labour wages and the workers have to settle or
even bargain for less in case they need a job. So, overall
Punjab, Madhya Pradesh, Rajasthan, Odisha and Assam.
these changes have put these hapless workers at the
• Punjab Government has also exempted all factories for
mercy of their employers.
three months from certain provisions of the Factories Act
(d) Legalising Laissez-faire - The state governments through
and enhanced working hours to 12 hours per day.
However, for working over time, it has provided double these changes of labour laws in a sense have actually

wage rate. legalised the concept of Laissez-faire.Laissez-faire is an

economic system in which transactions between private
• Madhya Pradesh governmenthas exempted all
parties are absent of any form of government
establishments from obligations under all labour laws for a
intervention.
period of 1000 days. MP Government has also moved an
(e) Enabling Environment for Exploitation -So, overall the
Ordinance – The Madhya Pradesh Labour Laws
(Amendment) Ordinance, 2020 to amend Madhya Pradesh legislations and changes will create an enabling
environment suitable to exploit the workers belonging to
Industrial Establishment (Standing Order) Act, 1961 and to
lower class. Hence, one can argue that these sweeping
grant exemption to the establishments from the Madhya
Pradesh ShramKalyan Nidhi Adhiniyam, 1982. changes are not only inhuman but also will increase
inequality in the society in terms of bargaining power.
• Apart from this M.P. Government has amended Contract
(f) Suspension of Basic Duties by Employers - Suspension
Labour (Regulation and Abolition) Madhya Pradesh Rules,
1973, The Madhya Pradesh Factories Rules, 1962, The of provisions of the Factory Act 1948 may result in
nullification of even elementary duties of factories such as
Industrial Disputes Act, 1947, The Madhya Pradesh Industrial
Relation Act, 1960, The Madhya Pradesh Shops and providing drinking water, first aid boxes and protective
equipment, cleanliness, ventilation, lighting, canteens,
Establishment, Act 1958 in the state.
restrooms and crèches.
Possible Impact of such drastic step taken by state
(g) Use of Public Emergency - State has used Section 5 of
governments to dilute Labour Laws
the Act, which permits exemption from its provisions for
(a) Increase in Economic Hardship for Workers - Any
three months at a time. However, this exemption can be
reform is pursued by the government for the interest and
given only during a ‘public emergency’, defined in a limited
welfare of its citizens. These labour reforms were taken by
way as a threat to security due to war or external
the state governments to improve economic activity by
aggression. So, the concept of public emergency needs to
concentrating more power at the hands of private
be expanded by the Centre in order to justify the changes
industries and factory owners. However, there are certain
proposed by state governments.
structural flaws as such changes will not only increase
(h) Legality of the changes challenged in Supreme Court–
economic hardship for the workers and labourers but will
also take away their basic social and economic rights A petition has been filed in the Supreme Court challenging
the sweeping changes proposed in labour laws by the
guaranteed through these central labour laws.

FOCUS| JUNE 2020 | RAU’S IAS 21

 Constituti0n, Polity and
Governance
state governments of UP, MP and Gujarat. Let us wait for
the final verdict of the Supreme Court.
3. USE OF DISASTER MANAGEMENT ACT TO
CURB MOVEMENT ACROSS STATE BORDERS
th
On 30 May, 2020, notification pertaining to extension of
th
lockdown in containment zone upto 30 June 2020 was
issued by Ministry of Home Affairs. The notification
mentioned that in exercise of powers under Section 6 (2) (i) of
Disaster Management Act, 2005, National Disaster
Management Authority (NDMA) has directed to issue an
order to extend the lockdown in Containment Zones upto
th
30 June, 2020 and to re-open prohibited activities in a
phased manner in areas outside the Containment Zones.
Further guidelines have been issued pertaining to relaxing of
lockdown as per Section 10 (2) (l) of The Disaster
Management Act, 2005. So, we understand that apart from
Epidemic Diseases Act, 1897 (which has been recently
amended), the government has been using National Disaster
Management Act, 2005 to issue directions to the state
governments and various authorities to contain the spread of
novel corona virus as the situation has been considered as a
disaster by the Ministry of Home Affairs.
• So, first of all let us go through the legal nuances of
decision making by the Central Government to implement
national lockdown.
• Then we shall look into Report onCrisis Management by
Second Administrtative Reform Commission. This deals
with situations and crisis which led to the enactment of
Disaster Management Act, 2005 and other
nd
recommendations of 2 ARC on Crisis Management
including locating Disaster and Epidemics in the Seventh
Schedule of the Indian Constitution.
• After understanding the legal nuances and certain
nd
recommendations of 2 ARC, we shall try to understand
the social issues pertaining to inter-state migrant workers
and the problems faced by such workers due to loss of
jobs and extension of national lockdown.
A - Legal Provision - Disaster Management Act, 2005
• Disaster – The Act has defined disaster as a catastrophe,
mishap, calamity or grave occurrence in any area, arising
from natural or man-made causes, or by accident or
negligence which results in substantial loss of life or
FOCUS| JUNE 2020 | RAU’S IAS
human suffering or damage to, and destruction of,
property, or damage to, or degradation of, environment,
and is of such a nature or magnitude as to be beyond the
coping capacity of the community of the affected area.
• Constituting NDMA - Section 3 of the Act establishes
National Disaster Management Authority (referred as
National Authority) chaired by the Prime Minister of India.
• Powers & Functions of National Authority - Section 6
provides for the powers and functions of National
Authority. Section 6 (2) (i) mentions that the National
Authority may take such other measures for the
prevention of disaster, or the mitigation, or preparedness
and capacity building for dealing with the threatening
disaster situation or disaster as it may consider necessary.
• National Executive Committee - Section 8 provides for
constitution of National Executive Committee to assist the
National Authority in the performance of its functions
under this Act. As per this provision, Union Home
Secretary shall be the ex officio Chairperson of the National
Executive Committee.
• Allocation of Business Rules - As per Second Schedule of
Allocation of Business Rules, 1961, Ministry of Home
Affairs is mandated to look after the matters relating to
loss of human life and property due to all natural and
man-made calamities, other than drought or epidemics.
The Disaster Management (DM) Division is the nodal
division in Ministry of Home Affairs (MHA) for disaster
management. So, the government has termed the present
epidemic caused by novel corona virus a disaster.
• Powers & Functions of National Executive Committee
(NEC) - Section 10 provides for the powers and functions
of NEC. As per Section 10(2)(l) - National Executive
Committee may lay down guidelines for, or give directions
to the concerned Ministries or Departments of the
Government of India, the State Governments and the State
Authorities regarding measures to be taken by them in
response to any threatening disaster situation or disaster.
IMPORTANT: PRELIMS POINTERS – THE DISASTER
MANAGEMENT ACT, 2005
 NDMA Chairperson of National Disaster Management
Authority - Prime Minister
 National Executive Committee to assist NDMA -
chairperson –Home Secretary. National Executive
22

Committee can constitute sub-committee for the efficient
discharge of its functions.
 National Plan - plan for disaster management for the
whole of the country to be called the National Plan
 The National Plan shall be prepared by the National
Executive Committee having regard to the National Policy
and in consultation with the State Governments and
expert bodies or organisations in the field of disaster
management to be approved by the National Authority.
 SDMA Chairperson - Chairperson of State Disaster
Management Authority (SDMA) - Chief Minister
 State Executive Committee - Chief Secretary to the State
Government - Chairperson
 State Plan - There shall be a plan
management for every State to be called the State Disaster
Management Plan. The State Plan prepared by the State
Executive Committee and shall be approved by the State
Authority.
 District Disaster Management Authority - Collector or
District Magistrate or Deputy Commissioner shall be the
Chairperson, the elected representative of the local
authority who shall be the co-Chairperson; In the Tribal
Areas, as referred to in the Sixth Schedule to the
Constitution, the Chief Executive Member of the District
Council of autonomous district, shall
Chairperson.
 District Plan - There shall be a plan for disaster
management for every district of the State.
 National Institute for Disaster Management
 National Disaster Response Force - specialist response
to a threatening disaster situation or disaster.
 National Disaster Response Fund -
threatening disaster situation or disaster; an amount
deposited after due appropriation made by Parliament by
law, includes any grants made by person or institution.
B - Report on Crisis Management by Second Adminis-
trtative Reform Commission
WHEN CRISIS BECOMES DISASTER
• According to Oxford dictionary, the term crisis means a
time of great danger, difficulty, or confusion when
problems must be solved or important decisions must be
made.
FOCUS| JUNE 2020 | RAU’S IAS
Constituti0n, Polity and
Governance
• Thus, a crisis is an unstable or crucial time or state of
affairs in which a decisive change is impending and there
is a distinct possibility of a highly undesirable outcome.
• In the context of public policy, an event or occurrence can
be termed as a crisis situation if it poses a threat to
human life and property or causes or threatens to cause
large-scale disruption of normal life.
• Thus, ‘crisis’ may be defined as “an emergency situation
arising out of natural or human activity which poses a threat
to human life and property or leads to large scale disruption
of normal life”.
• This emergency situation may arise suddenly or it may be
an outcome of a simmering problem or issue, which could
not be foreseen or stopped earlier.
for disaster
• A crisis may degenerate into a disaster if it is not properly
managed resulting in avoidable loss of human life and
property on a large scale.
ND
TYPES OF CRISIS AS PER 2 ARC
Crises can be classified into the following categories:
• Crises caused by acts of nature. These can further be
divided into the following sub-categories:
• Climatic events: cyclones and storms (associated sea
erosion), floods and drought and
be the co- • Geological events: earthquakes, tsunamis, landslides and
avalanches
• Crises caused by environmental degradation and
disturbance of the ecological balance
• Crises caused by accidents. These, again, can be further
classified into: industrial and nuclear mishaps and fire
related accident.
to meet any • Crises caused by biological activities: public health crises,
epidemics etc.
• Crises caused by hostile elements: war, terrorism,
extremism, insurgency etc;
• Crises caused by disruption/failure of major infrastructure
facilities including communication systems, large-scale
strikes etc; and
• Crises caused by large crowds getting out of control.
CHANGE IN APPROACH TO MANAGE CRISIS AS PER
THE ‘YOKAHAMA DECLARATION’ OF 1994
23
 Constituti0n, Polity and
Governance
• The ‘Yokahama Declaration’ of 1994, enunciated during
the International Decade for Natural Disaster Reduction
signaled a radical shift in disaster management. The earlier
practice of disaster management being regarded as the
most efficient manner of responding to acute emergencies
was replaced by a ‘holistic’ approach embracing all aspects
of crisis management that is response, prevention,
mitigation and preparedness.
• The Yokohama ‘Declaration’ elucidates how prevention
and mitigation are the keys to minimize, if not prevent,
distress caused by natural disasters and thus form the
bedrock of integrated disaster management.
• The subsequent Hyogo Framework of Action,
recommended a comprehensive prevention and mitigation
strategy, with the ultimate goals of protecting people and
structures from disasters and increasing the effectiveness
of response and recovery.

HIGH POWERED COMMITTEE ON DISASTER
MANAGEMENT, 1999
• A paradigm shift in the approach to crisis management
from relief and rehabilitation to prevention and mitigation
and towards a holistic and comprehensive framework,
took place with the United Nations deciding to observe
the 1990s as the International Decade of Natural Disaster
Reduction (IDNDR).
• In 1999, Indian Government constituted a High Power
Committee (HPC) on Disaster Management. The mandate
of the HPC was to suggest institutional measures for
effective management of both natural and man-made
disasters, in the country.
• After the devastating earthquake of Gujarat in January,
2001, the HPC submitted its final report in October 2001
outlining a vision to create a disaster-free India through
adherence to the culture of preparedness, quick
response, strategic thinking and prevention.

FOCUS| JUNE 2020 | RAU’S IAS 24

 Constituti0n, Polity and
Governance
• The HPC came out with a large number of • While the post-Gujarat earthquake reform initiatives were
recommendations, dealing with the constitutional and still in their initial phase of implementation, a devastating
legal framework, organizational structures and tsunami hit many countries on the rim of the Indian
institutional mechanism in the overall disaster Ocean including several states of India in December,
management system of the country. 2004.

IMPORTANT POLICY DECISION TAKEN BY INDIAN • This experience brought home the necessity of further
GOVT. POST JANUARY 2001 GUJARAT EARTHQUAKE reforms in the system. Taking the institutional reform

TO REVAMP DISASTER MANAGEMENT IN INDIA process further, the Union Government decided to
formulate comprehensive disaster management
• Disaster management with reference to rapid onset
legislation, providing for a legal and institutional
disasters was moved from the purview of the Ministry of
framework of crisis management at all levels in the
Agriculture to the Ministry of Home Affairs. The Ministry
country.
of Agriculture retained the responsibility for droughts, pest
• Thus, The Disaster Management Bill was introduced in
attacks and hailstorms.
Parliament in May 2005 and was finally enacted in
• State Governments were advised to reorganize their Relief
December 2005 as an Act of the Indian Government.
& Rehabilitation Department into a separate Disaster
Management Department.

• State Governments were further advised to constitute

State Disaster Management Authority under the
Chairmanship of State Chief Ministers and the District
Disaster Management Committee under the
Chairmanship of District Collectors.

• A specialized force comprising eight battalions to be

named as National Disaster Response Force to be
constituted with state-of-the-art equipment and training to
respond to various natural and man-made disasters.

• An advanced fail-proof disaster communication network

was set up through Emergency Operation Centres (EOC)
at national, state and district levels.

• The National Institute of Disaster Management was set

up at Delhi for training, capacity building, research and
nd
documentation on different aspects of disaster 2 ARC ON ‘DISASTER MANAGEMENT’ AS PART OF
management in the country. CONCURRENT LIST

• Basics of disaster management to be introduced in
school education, disaster resistant technologies to be
introduced in engineering and architecture courses and
emergency health management to be introduced in
medical and nursing education.
• The Second Administrtative Reform Commission in its
Report on Crisis Management has specifically mentioned
that the subject of disaster management does not find
mention in any of the three lists in the Seventh Schedule of
the Indian Constitution.

• A community based disaster risk management • A subject not specifically mentioned in any of these lists
programme to be launched in multi-hazard districts comes under the Residuary Powers of the Union under
throughout the country. entry 97 of the Union List. According to one view,
Parliament therefore has the competence to legislate on
WHAT MADE THE LEGISLATION ON DISASTER
this subject. However, by practice and convention the
MANAGEMENT SEE THE LIGHT OF THE DAY?

FOCUS| JUNE 2020 | RAU’S IAS 25

 Constituti0n, Polity and
Governance
primary responsibility for managing disasters rests with then be no legal difficulties for state to directly take steps
the State Governments. for prevention of disaster and other activities of

• The Ministry of Agriculture made a plea to the National rehabilitation necessary post disaster.
nd
Commission to Review the Working of the Constitution • Thus, the 2 ARC in its Report on Crisis Management has
(NCRCW) to recommend insertion of an entry on the suggested to include a new entry in the Concurrent List of
subject in the Concurrent List. NCRCW recommended the Constitution of India – “Management of Disasters
including‘Management of Disasters and Emergencies, and Emergencies, natural or manmade”.
natural or man-made’in the Concurrent List of the Seventh ND
2 ARC ON CONTAINING EPIDEMICS& DMA, 2005
Schedule of the Indian Constitution. The High Powered
Committee (HPC) also recommended that a conscious view • The complex nature of control of epidemics is evident
from the fact that the Constitution of India has provided
needs to be taken to make an appropriate mention of the
subject of disaster management in one of the lists. these matters in all the three Lists under Seventh
Schedule.
• Parliament has enacted the Disaster Management Act,
• Union List – Entry 28 “Port quarantine, including hospitals
2005 by invoking Entry 23 of Concurrent List namely ‘Social
connected therewith; Entry 81 - inter-State quarantine.
security and social insurance, employment and
unemployment’, even though all aspects of crisis • State List – Entry 6 - Public health and sanitation;
management cannot be said to be covered by this entry. hospitals and dispensaries.
nd
• The 2 ARC Report on Crisis Management has highlighted • Concurrent List – Entry 29 - Prevention of the extension
that Disaster management encompasses all activities from one State to another of infectious or contagious
including preparedness, early warning systems, rescue, diseases or pests affecting men, animals or plants.
relief and rehabilitation. The term disaster includes • The manner in which the Disaster Management Act, 2005
natural calamities, health related disasters (epidemics), defines the term ‘disaster’ leaves no doubt that an
industrial disasters and disasters caused by hostile epidemic of extraordinary severity spreading rapidly is
elements such as terrorists. There are already various covered by it. The Act also overrides the provision of any
entries in the three lists, which deal with some aspect or other law (Section 72). So, it is clear that management of
other of disaster management. For eg: ‘Public order’ finds a epidemics-related crisis would also fall within the
place in the State List, as does Public Health. Entries 14 and jurisdiction of the National Disaster Management
17 in the State List deal with Agriculture and Water Authority.
respectively. Environment and Social Security are included in ND
RECOMMENDATIONS OF 2 ARC ON CRISIS
the Concurrent List. Atomic energy and Railways are part of
the Union List. MANAGEMENT
nd
• So, due to the cross cutting nature of activities that • However, 2 ARC in its Report on Crisis Management had
constitute disaster management and the vertical and recommended drafting a comprehensive revised ‘model’
horizontal linkages required which involve coordination legislation on public health to more effectively prevent
between the Union, State and local governments on the outbreak/spread of epidemics. Earlier the government had
one hand and a host of government departments and proposed The Public Health Emergencies Billin the
agencies on the other.The Report argued that the Parliament but it lapsed.
legislative underpinning for such a framework would • The Ministry of Health and Family Welfare was advised to
need to ensure congruence and coherence with regard to ensure that requisite plans envisaged under the Disaster
the division of labour and responsibilities among the Management Act, 2005, are drawn up in respect of
agencies at the Union, State and other levels. This could epidemics also and that the role of the district
best be achieved if the subject of Disaster Management is administration finds explicit mention in the Public Health
placed in the Concurrent List of the Constitution. Even the Emergency Bill. The structure created by the Disaster
state government would welcome the move to include Management Act, 2005, should be utilized for managing
disaster management within concurrent list as there would epidemics also.However, as of now, administrtative

FOCUS| JUNE 2020 | RAU’S IAS 26

 Constituti0n, Polity and
Governance
controlling of the epidemic is done mostly by the Ministry
of Home Affairs through Disaster Management Act.
• While surveillance and management of epidemics are the
responsibility of public health professionals, it is clear that
a particularly severe outbreak could overwhelm the
capacities of our health infrastructure. The Ministry of
Health and Family Welfare and the State Governments
must ensure that ‘standard operating procedures’ are
devised to assign roles and responsibilities of agencies and
personnel outside the line organisations wherever a
situation so warrants.
C-Problems faced by inter-state migrants due to
extension of Lockdown
►What are the problems faced by inter-state migrant
workers?
Now here are two sets of problems encountered by the
migrant workers in the informal sector who mostly comprise
of construction workers, painters, delivery boys, cooks,
cleaners and factory workers, among others.
• Problem 1 – The epidemic has resulted in their loss of job
and hence no source of livelihood. This is more so for
those workers living in mega urban cities like Mumbai and
Delhi.
• Problem 2 – These migrant workers and labourers who do
not had any source of income for their sustenance
because of lack of economic activities are travelling back to
their home state in whatever ways possible.
• Prior to start and extension of national lockdown, the
plight of daily wage earners, migrant workers and those in
the informal sector were not given due consideration by
the government and it resulted in economic hardship for
such people because of sudden closure of all economic
activities by the state.
• Now, most of such workers and labours are inter-state
migrant workers belonging to different states. So, once
national lockdown was extended, their daily livelihood
became a big challenge and because of which they started
to reverse migrate back to their native villages far away
from most cities in whatever way possible.
• Extension of lockdown by centre and states became a
barrier for such migrants to travel across states. So,
freedom of movement for migrant workers in such
FOCUS| JUNE 2020 | RAU’S IAS
scenario became challenging without much adequate state
support.
• The centre and states amid much protest by migrants
started arranging for trains and buses for the migrants to
go back home. However, most of such efforts were mired
in centre-state rivalry and political slugfest.
• Thus, overall it can be said that the workers’ right to go
home was curbed using the Disaster Management Act,
2005.Further, no provisions were made by the state
authorities for the food, shelter, or medical relief for such
migrant workers. Wage payments were not ensured, and
the state’s cash and food relief did not cover most
workers.
WAY FORWARD
(i) The migrants have faced and will continue to face apathy
from the central and state governments. The immediate
problems are about their food security and logistics for
them to travel to their native place.
(ii) These workers are the backbone of the economy and
must be treated like humans with compassion and not
with contempt.
(iii) In the longer run, say three months if these workers do
not return back for work, then it will create another set of
challenges for the state and central government which
they must understand and be prepared for.
(iv) This is because these migrant workers (by certain
standards) consist of 10 per cent of India’s GDP and hence
cannot be taken granted for especially in times of
rebuilding our economy after the epidemic.
(v) The centre and state must create enabling environment
for their safety, livelihood and health and must ensure
that their basic human rights and social security benefits
are not taken away by their employers.
4. IMPORTANCE OF SUPREME COURT IN
PROTECTING FUNDAMENTAL RIGHTS OF
VULNERABLE SECTION OF THE SOCIETY
“In the midst of the executive imposed Covid-19 lockdowns, the
Hon’ble Supreme Court cannot retreat into a self-effacing
deference, leaving millions of Indian citizens, especially those
who are poor, vulnerable and impoverished, to the mercy of the
executive, reminding us of ADM Jabalpur when detenues were left
27
 Constituti0n, Polity and
Governance
to the tender mercy of the executive with “Diamond bright
Diamond hard” hope that something would be done,”
IMPORTANCE OF SUPREME COURT
1. The above mentioned paragraph is a part of the letter
written by senior advocates to the Chief Justice of India
and other Justices reminding the Supreme Court of its
constitutional duty to protect the fundamental rights of
hapless migrant workers who are forced to travel back to
their native village because of lack of any source of
livelihood in conditions not suitable for humans.
2. Supreme Court in an earlier decision, had rejected the
Public Interest Litigation filed which sought Supreme
Court’s intervention to help migrant workers in providing
them food, shelter and a safe transport facility to their
home by the government.
3. So, in this part, let us go through the reasons given by
Supreme Court in rejecting the earlier petition and also
the importance of Supreme Court in protecting
fundamental right of citizens.
 Article 142 of the Indian Constitution empowers the
Supreme Court to pass such orders as is necessary for
doing complete justice in any cause or matter pending
before it and such order shall be made enforceable
throughout the territory of India in such manner as may
be prescribed by or under any law made by Parliament.
DECISIONS OF SUPREME COURT – CHANGE OF HEART
AT LAST
►Late March, 2020
• In the case of Alakh Alok Srivastava v. Union of India,
while hearing a PIL on the plight of the migrant workers,
Supreme Court considered the Status Reportof the
government filed by the Solicitor General. The report
referred to the government’s circular of 29
th
March
whichprohibited movement and transportation of migrant
labourers and directed the authorities to shift such
migrant labourers to relief shelter homes or in relief
camps.
• The Solicitor General submitted in the Court that as of 31
st
March, no migrant person was walking on the roads in an
attempt to reachtheirhome. Now this reply was clearly far
away from truth but still the Court was satisfied by the
steps taken by the Central Government to combat COVID-
19 and proceeded to observe that “the migration of
FOCUS| JUNE 2020 | RAU’S IAS
labourers working in the cities was triggered by panic created
by fake news that the lockdown would continue for more than
3 months”. However, this was not true as the migrants
wanted to go travel back home because of the following
reasons -
• They had no source of income as most of these migrant
workers were employed on daily wage or were working in
the informal sector;
• They had no idea about the time or period for which the
lockdown would have continued.
• So, considering both these aspects, they considered it wise
enough to travel back bracing so many difficulties.
►What could have been done by SC?
• Now, the Supreme Court could have asked the central and
st
state government back on 31 March to make necessary
arrangements for the migrant workers when the number
of COVID Positive cases in India was comparatively less.
Thus, migration of workers by the government could have
been arranged in a better and organised way.
• Rather, the migrants were put in cramped conditions for
weeks and this further aggravated the risk of infection
without proper amenities.As per several reports, more
than 90 per cent of migrant workers did not receive
government rations in many states and were suffering
from dire food shortages. So, the migrants which were
willing to go home as early as March were cramped up for
food and basic necessities. This in itself can be equated
with abrogation of fundamental rights of the vulnerable
and poor sections by the Supreme Court.
►Early May
th
• On 15 May, a three-judge bench of the Supreme Court
dismissed an application seeking immediate directions to
all the district magistrates to identify the migrant workers
who are walking on roads, provide them with appropriate
food and shelter facility and facilitate their travel back to
their home states free of cost.
• Here again, the Supreme Court could have directed the
district authorities to do the needful but did not show
much sympathy for the migrant workers. Rather, they
were left to their situation based on executive belief that
things will be taken care off.
28
 Constituti0n, Polity and
Governance
►Late May – Directions given by Supreme Court
• Supreme Court after months of silence on the issue of
migrant crisis, decided to take suo moto cognizance of the
matter.
• Supreme Court directed that fare for travel of migrants
stranded across India should not be charged by centre or
state governments.
• Originating stations must provide meal and water at the
station whereas it must be the responsibility of Indian
Railways to provide meal and water to the travellers during
the entire journey.
• States should also oversee registration of migrant workers
and ensure they are made to board the train or bus at an
early date and the government must give adequate
publicity to the steps it proposes to take on this account.
• Those who are found walking on the roads shall be taken
to shelters immediately and provided with food.
• The directions also included asking states to bring on
record necessary details regarding the number of migrants
waiting for a transport, plan for transportation and
registration of the labourers.
►Did the Court fail in performing their constitutional
duties?
The letter stated that Supreme Court has a pivotal
constitutional role in protecting and safeguarding the
fundamental rights and freedoms of the citizens of this
country, and particularly the vast swathes of our population
who eke out a living near or below the poverty line or
minimum wages, and are even in normal times barely able to
survive with dignity and respect.
The Supreme Court’s constitutional role and duty assumes
even greater importance in the time of a crisis, such as the
present when the entire country and its economy was “locked
down” from 24th March by an order of the Central
Government.
• Amid the executive-imposed COVID-19 lockdowns, the
Court cannot retreat into self-effacing deference, leaving
millions of Indian citizens, especially those who are poor
and vulnerable, to the mercy of the executive.
• This Court has the power bestowed by the Constitution of
India under Article 142 to undertake any measure to do
complete justice. Thus, the Court needs to fulfil its
constitutional obligation to ensure right to life, liberty and
FOCUS| JUNE 2020 | RAU’S IAS
dignity of individualsare preserved and state does not
abdicate from its duty of social welfare especially in times
of crisis and disasters.
SUPREME COURT – DEFENDER OF FUNDAMENTAL
RIGHTS
►Past History of SC in defending dignity of humans
• Earlier in the past cases, Supreme Court has defended the
cause of fundamental rights and has not only provided
guidelines but also given path breaking judgments which
still holds the test of time in case of legislative or executive
vacuum. Some of the examples are Basic Structure
Doctrine, Vishakha Guidelineson sexual harassment in the
workplace, Various Judgments on Environment Protection,
Coining Absolute Liability Law against environmental
pollution, Right to Food, Right to Privacy as part of Article
21, Fundamental Rights for LGBT Community, Judgments
on Land Reforms and Ninth Schedule within Judicial
Review etc.
• In the case of Hussainara Khatoon v Home Secretary,
State of Bihar, Justice Bhagwati allowed a postcard written
to him to be treated as a Public Interest Litigation (PIL) and
inaugurated the idea of epistolary jurisdiction (where
petitions were entertained via mere letters) in India. The
case pertained to inhuman conditions of prisons and
undertrials languishing in jail.
• Thus, Public Interest Litigation serves as a legal tool at the
hands of all citizens alike and it can be used in a Court of
Law in case of injustice done by the executive. PIL has also
been used to ensure the protection of the rights of the
poor, downtrodden and vulnerable, and “any member of
the public” can seek appropriate directions by the High
Court or Supreme Court on their behalf.
• Government is a party in majority of legislations and
government always defends their case to the best of their
lawyering abilities. Despite this, it is the fundamental and
constitutional responsibility and duty of the Supreme
Court of India to decide cases as per its merit irrespective
of the parties in dispute. This has been and will further
strengthen our firm belief and resolve in the values of
justice administered by India’s top Court.
29
 Constituti0n, Polity and
Governance
POLITY VERSION OF
STYRENE GAS LEAK
#Judgement # Liability
IN NEWS
On 7
th
May, 2020, Styrene Monomer (SM) gas leaked in
Vishakhapatnam from South Korean Company LG Polymers
India Private Limited causing severe injury and death of
residents of the city. The issue of Styrene Gas Leak was
immediately taken up by Andhra Pradesh High Court and
subsequently by National Green Tribunal and National Human
Rights Commission. Another case was also filed in Supreme
Court of India. So, parallel judicial proceedings have been
initiated against the gas leak. Number of Enquiry Committees
has also been constituted at different level by the Central
Government, State Government of Andhra Pradesh, by
National Green Tribunal and others.
In this regard, let us go through the important highlights of
the judgment given by High Court of Andhra Pradesh, National
Green Tribunal as well as Supreme Court of India.
IMMEDIATE DECISION OF ANDHRA PRADESH HIGH
COURT
• The Andhra HC took on its own motion i.e. suo moto took
cognizance of the gas leak.
• The High Court noted that Styrene has been listed as
Hazardous and Toxic Chemicals as per The Chemical
Accident (Emergency Planning, Preparedness, and
Response) Rules of 1996. These Rules have been
prepared under TheEnvironment (Protection) Act, 1986.
• Accordingly, the HC directed the state government to take
"immediate steps" to bring down the effect of styrene gas
leak by sprinkling water or other substances which may
curtail further damage and its devastating impact.
• The Court further requested deployment of fire services
from nearby areas to curtail immediate damage to human
life and property and asked to check for any subsequent
gas leak from the factory premises.
FOCUS| JUNE 2020 | RAU’S IAS
• The Court directed the State Government to issue an order
directing all private hospitals in Visakhapatnam to accept
patients showing symptoms of gas leak.
• The State Government was directed to appoint a
Committee of officers not below the rank of Principal
Secretaries to monitor the activities and file compliance
report within a week.
• The Court asked the State Legal Services Authority to
appoint an officer an appropriate officer from the District
Legal Services Authority, Visakhapatnam to supervise the
activities and directed the District Judge to coordinate with
state officials on the issue. The Court also appointed
Amicus Curiae in the case. Amicus Curiae is considered as
friend of the court. He/She is a person who is not party to
the case but assist the Court with their intellectual prowess
in court proceedings.
DECISION OF NATIONAL GREEN TRIBUNAL (NGT) –
8TH MAY, 2020
• The National Green Tribunal also took up the matter of
styrene gas leak suo moto. NGT stated that it had power
under Section 14 and 15 of National Green Tribunal Act,
2010 to take up the matter of Styrene Gas Leak in Vizag.
• NGT’s suo moto power to take up the case was also legally
challenged before the Supreme Court. However, NGT has
said, “NGT has the purpose and power to provide relief and
compensation to victims of environment damage, restitution
of property, and restoration of environment. To effectuate this
purpose, NGT has wide powers to devise its own procedure. In
appropriate circumstances, this power includes the power to
institute suo-moto proceedings and not keep its hands tied in
the face of drastic environmental damage and serious
violation of right to life, public health and damage to
property”.
• Let us go through Section 14 and 15 of National Green
Tribunal Act, 2010 to find out the powers of NGT and then
we shall carry on further with the rest of the judgment.
RELATED INFORMATION: NATIONAL GREEN TRIBUNAL
ACT, 2010
Aim & Purpose – It establishes the National Green Tribunal
for the effective and expeditious disposal of cases relating to
environmental protection and conservation of forests and
other natural resources including enforcement of any legal
right relating to environment and giving relief and
30
 Constituti0n, Polity and
Governance
compensation for damages to persons and property. Section authorizing and regulating such activities may also be
14 and 15 of NGT Act comes within Chapter III which deals accountable for their lapses.
with Jurisdiction, Powers and Proceedings of the Tribunal. • The Tribunal stated that it is its statutory obligation to
Section 14 - Tribunal to settle disputes: The Tribunal shall provide relief and compensation to the victims of
have the jurisdiction over all civil cases where a substantial “environmental damage”, and also to restore damaged
question relating to environment (including enforcement of property or environment to their former position.
any legal right relating to environment), is involved and such • Accordingly, NGT has issued notice to Andhra Pradesh
question arises out of the implementation of the enactments State Pollution Control Board, District Magistrate,
specified in First Schedule. Vishakhapatnam, Central Pollution Control Board (CPCB),
First Schedule of NGT Act, 2010 provides for the following Ministry of Environment, Forests & Climate Change
enactments – (MoEF&CC) and LG Polymers India Pvt., Limited.

 The Water (Prevention and Control of Pollution) Act, 1974 • NGT constituted Five Member Committee

 The Water (Prevention and Control of Pollution) Cess Act, • The National Green Tribunal (NGT) further directed LG
1977 Polymers India to deposit an initial amount of Rs. 50

 The Forest (Conservation) Act, 1980
 The Air (Prevention and Control of Pollution) Act, 1981
 The Environment (Protection) Act, 1986
 The Public Liability Insurance Act, 1991
crorewith the District Magistrate, Vishakhapatnam. The
amount is being fixed is with respect to the financial worth
of the company and the extent of the damage caused by
the gas leak which killed and severely injured number of
persons.

 The Biological Diversity Act, 2002 SUBSEQUENT JUDGEMENT OF ANDHRA PRADESH

RD
Section 15 - Relief, compensation and restitution: The HIGH COURT – MAY 23
nd
Tribunal may, by an order, provide –  In its later decision of 22 May, the Andhra High Court
 relief and compensation to the victims of pollution and ordered the State Government to seize the company
other environmental damage arising under the premises of the LG Polymers chemical plant at
enactments specified in the Schedule I (including accident Vishakhapatnam from where the leakage of styrene gas
occurring while handling any hazardous substance). occurred.

 for restitution of property damaged.
 for restitution of the environment for such area or areas.
• NGT stated that Styrene gas is a hazardous chemical as
defined under Rule 2(e) read with Entry 583 of First Schedule
to The Manufacture, Storage and Import of Hazardous
Chemical Rules, 1989. The Rules require on-site and off-
site Emergency Plans to ensure prevention of damage.
There appears to be failure to comply with the said Rules
and other statutory provisions.
• Leakage of hazardous gas at such a scale adversely
affecting public health and environment, clearly attracts
the principle of ‘Strict Liability’ against the enterprise
engaged in hazardous or inherently dangerous industry.
• Such an entity is liable to restore the damage caused
under the Environment Law, apart from other statutory
liability. The statutory authorities responsible
 The Court also restrained the Directors of the Company
from leaving the country without the leave of the court.
The Court ordered not to release surrendered passports of
Directors of the Company without permission of the Court.
 The Court after noticing several lapses on account of
functioning of the factory, has asked the government to
reply on the following issues –
 Functioning of LG Polymer without a valid Environmental
Clearance from the Ministry of Environment, Forests and
Climate Change.
 Net worth of LG Polymers India Pvt. Ltd as per the
Companies Act, 2013 and not as per book value
 Transport of Styrene Monomer to South Korea without any
valid permission and the person and authorities
responsible for the same.
for

FOCUS| JUNE 2020 | RAU’S IAS 31

 Constituti0n, Polity and
Governance
QUESTIONS RAISED BEFORE THE SUPREME COURT
• The jurisdiction and authority of NGT to take up the matter
of Styrene Gas Leak in Vishakhapatnam from LG Polymer
plant suo moto was challenged before Three Judge Bench
of Supreme Court. However, this challenge of jurisdiction
of NGT was rejected by the Bench stating that the issue of
jurisdiction should be raised before NGT and not before
the Supreme Court.
• After Andhra Pradesh High Court’s judgment of sealing the
factory in Vishakhapatnam, the Supreme Court has
permitted LG Polymers India Ltd to have restricted access
at its sealed plant at Visakhapatnam in Andhra Pradesh,
where there was a gas leakage and has asked the
company to provide a list of 30 personnel who could be
allowed the entry.
• Supreme Court directed that list of 30 individuals of LG
Polymers must be provided to the District Collector.
• Further, the issue of multiple committees was also raised
before the Three Judge Bench as different Enquiry
Committees have been constituted by NGT, by Central
Pollution Control Board, by State Government and also by
National Human Rights Commission.
DIFFERENCE BETWEEN STRICT LIABILITY &
ABSOLUTE LIABILITY
Rule of Strict Liability is generally a principle of negligence
where damage is caused because of negligent act of others
and such damage must be compensated. With negligence, it
is always “unintentional fault” for which a person or
institution is penalised and that is why it is also called “No
Fault Liability”.
The rule of strict liability was laid down in the year 1868 in the
case of ‘Rylands vs. Fletcher. According to the rule of Strict
Liability, in this case, it was laid down that any person keeping
any hazardous substance on his premises would be held
liable if that substance escapes from there and harms others.
At the point in time when the hazardous substance escapes
causing damage to others, it would be irrelevant
• whether the person holding hazardous substance had
taken due care or not or
• whether the person was negligent or not.
Thus, as per the Principle of Strict Liability, the person who
holds dangerous or hazardous substances in their premises
would be held liable or accountable (even if he/she had taken
FOCUS| JUNE 2020 | RAU’S IAS
proper care of such hazardous substance), if such hazardous
substance escapes from the premises thereby causing
damage to life or property of others.
However, there are certain exceptions under which
defendant can run off his liability in cases of Strict Liability.
Same principle of Strict Liability was applied by NGT in the
present case of Styrene Gas Leak when they invoked the
principle of Strict Liability against LG Polymer India Private
Ltd. as they had also held hazardous Styrene Monomer Gas
within their factory premises in Vishakhapatnam.
ESSENTIAL CONDITIONS FOR STRICT LIABILITY RULE
Based on this judicial decision, the concept of strict liability
came in vogue. There are certain essential conditions to be
fulfilled to categorize a liability under strict liability.
• Things kept on one’s premises are “dangerous” and can
cause damage if it escapes.
• The dangerous thing kept must have escaped outside the
premises (despite no fault of the owner) and has damaged
other’s property, goods or person.
• Use of such thing must be Non-natural for the land or not
normal in ordinary circumstances.
EXCEPTIONS TO STRICT LIABILITY RULE
• By the plaintiffs own default - So, if the plaintiff suffers
damage by his own intrusion into the defendant’s
property, then he has no right to complain about the
damage so caused.
• By Act of God - If an incident occurs due to an
unforeseeable event, which human body can’t have any
control over it, then in such circumstances the person
cannot be held responsible for any liability arising or any
incident occurs there out of it. Eg. Leakage of hazardous
Gas due to Earthquake or Severe Storm etc.
• Consent of Plaintiff - Where the plaintiff has voluntarily
consented to suffer the harm for the common benefit of
both then at that situation the defendant won’t be held
liable.
• Act by Third Party – If damage is suffered by the plaintiff
because of an act done by any Third Party where the
defendant is not involved.
ABSOLUTE LIABILITY
• The rule of Absolute liability was laid down by the
Honourable Supreme Court of India in the case of M.C.
32
 Constituti0n, Polity and
Governance
Mehta v Union of India famously referred as the Oleum
Gas Leakcase.
• This case was a landmark judgment case for the principle
of absolute liability. Absolute Liability Principle is a kind
ofStrict Liability with No Exception.
• The Rule of Ryland V Fletcher applies only to the non-
natural use of land but the principle of Absolute Liability
applies to even the natural use of land.
• So, If a person/organisation keeps dangerous/hazardous
substance within their premises which may be natural use
of such land but if such dangerous/hazardous substance
escapes the premises, then the person or the organisation
storing such hazardous substance shall be held liable
under Absolute Liability Principle even though it was
properly taken care of.
CAUVERY WATER
MANAGEMENT
AUTHORITY
#Authority # Governance
IN NEWS
Cauvery Water Management Authority (CWMA) which is a part
of Cauvery Draft Water Management Scheme constituted by
the central government as per the directions of Supreme Court
has been brought within the administrative control of Union
Ministry of Jal Shakti. This has been accomplished by
amending the Government of India (Allocation of Business)
Rules, 1961. Apart from CWMA, the amendment to Allocation
of Business Rules has also included National Water Informatics
Centre (NWIC), North Eastern Regional Institute of Water and
Land Management (NERIWALM), Krishna River Management
Board (KRMB) and Godavari River Management Board (GRMB)
under the administrative control of Union Ministry of Jalshakti.
However, some opposition party as well as some farmers’
association in Tamil Nadu is upset with this move of the
central government as it makes CWMA more of a central
FOCUS| JUNE 2020 | RAU’S IAS
appointee without any discretionary power at the level of
state.
ALLOCATION OF BUSINESS RULES
• Article 77 of the Constitution of India mentions about
Conduct of Government Business. Article 77 (3) -
President shall make rules for the more convenient
transaction of the business of the Government of India,
and for the allocation among Ministers of the said
business.
• Thus, accordingly President has amended the Government
of India (Allocation of Business) Rules, 1961 and has placed
CWMA under the administrative control of Union Ministry
of Jal Shakti.
RELATED INFORMATION: HISTORICAL BACKDROP TO
THE FORMATION OF MINISTRY OF JAL SHAKTI
• September 1985 - In re-organization of the Ministries by
the Central Government in September 1985, the then
Ministry of Irrigation and Power was bifurcated and the
Department of Irrigation was re-constituted as the
Ministry of Water Resources. This recognition of the
necessity of planning for the development of the country’s
water resources in a coordinated manner resulted in a
change in the character of the Ministry and it assumed a
nodal role regarding all matters concerning the country’s
water resources.
• In July, 2014, the Ministry of Water Resources was
renamed as Ministry of Water Resources, River
Development & Ganga Rejuvenation. National Ganga River
Basin Authority was constituted under the new ministry
and was assigned with National Mission for Clean Ganga
and other related matters of Ganga Rejuvenation.
• In June, 2019 the Ministry has again been renamed
as “Ministry of Jal Shakti with two Departments namely: -
Department of Water Resources, River Development and
Ganga Rejuvenation, andDepartment of Drinking Water and
Sanitation.
BACKGROUND OF CWMA
• Supreme Court in its judgment of February, 2018 had
directed the Central Government to draft a scheme under
Section 6A of the Inter-State River Water Dispute Act,
1956 within a span of six weeks to implement the
Tribunal’s Award.
33
 Constituti0n, Polity and
Governance
• Section 6A authorises the Central Government to make
schemes to implement decision of Tribunal constituted for
adjudication of disputes.
• The Central Government as per the directions of the
honourable Court had submitted the Cauvery Draft
Water Management Scheme.
• The Cauvery Draft Water Management Scheme comprised
– Cauvery Water Management Authority (CWMA) and
Cauvery Water Regulation Committee (CWRC) to give effect
to the decision of Cauvery Water Dispute Tribunal (CWDT)
as modified by the Hon’ble Supreme Court as per its 2018
judgment.
COMPOSITION OF CWMA
• Chairman - To be appointed by the Central Government,
who shall have tenure of five years or till sixty-five years of
age, whichever is earlier. The Chairman can be either
(i) senior and eminent engineer with wide experience in
water resource management, handling of inter-State
water sharing issues, construction, operation
maintenance of irrigation projects or
(ii) an All India Service Officer, in the rank of Secretary or
Additional Secretary to the Government of India with
experience in water resources and inter-State water
sharing issues.
• Two whole-time Members - To be appointed by the
Central Government for a term of three years which may
be extendable upto five years
(i) One Member (Water Resources) – an engineer not below
the rank of Chief Engineer from the Central Water
Engineering Services (CWES) cadre
(ii) One Member (Agriculture) – not below the rank of a
Commissioner from the Ministry of Agriculture and
Farmers’ Welfare
• Two Part-Time Members – Representatives of the Central
Government of the rank of Joint Secretary to be nominated
by the Ministry of Jal Shakti and Ministry of Agriculture and
Farmers’ Welfare respectively.
• Four Part-Time Members from party States
Administrative Secretaries in charge of Water Resource
Departments of each State Government of Kerala,
Karnataka, Tamil Nadu and Union territory of Puducherry
who shall be nominated by the State Governments and
Union territory administration respectively.
FOCUS| JUNE 2020 | RAU’S IAS
QUORUM & VOTING
• Six Members shall form a quorum and the concurrence of
the majority shall be necessary for transaction of the
business of the Authority except such business as the
Authority may from time to time prescribe as routine. The
Members shall have equal powers.
• The decision of CWMA shall be final and binding on all the
party States.
POWERS, FUNCTIONS & DUTIES OF CWMA
• The Authority shall exercise such power and shall
discharge such duty to ensure compliance of Judgment of
Supreme Court regarding –
(i) Storage, apportionment, regulation and control of
Cauvery waters.
(ii) Supervision of operation of reservoirs and with regulation
of water releases there from with the assistance of
Regulation Committee.
(iii) Regulated release by Karnataka, at the inter-State contact
and
point presently identified as Billigundulu Gauge and
discharge station, located on the common border of
Karnataka and Tamil Nadu.
• The Authority may constitute one or more sub-committees
and assign to them such of its functions and delegate.
CONCERNS HIGHLIGHTED BY SOME OPPOSITION &
FARMERS’ ASSOCIATION
• Cauvery Water Management Authority (CWMA) was
created on the direction of the Supreme Court in February
2018.
• It is also argued that between June 2018 and May 2019,
when the Union Ministry of Water Resources was in
existence prior to existence of Ministry of Jal Shakti, CWMA
was not designated as an organisation under the Ministry
through any notification.
• So, bringing CWMA under Jal Shakti Ministry will erode its
autonomy and will be subject to the diktat of the Central
Government. This will further erode the bargaining power
of states and undermine their presence in the CWMA.
–
• This is another step by the central government whereby
the centralisation of power seems eminent.
34
 Constituti0n, Polity and
Governance
PREVENTION OF
CORRUPTION ACT
#Legislation # Judgement
IN NEWS
The Delhi High Court has declined to release former Jharkhand
Chief Minister MadhuKoda who is convicted in coal scam. The
Court said that it will not be desirable to allow him to contest
for any public office till he is finally acquitted. The conviction
of Mr. Koda disallows him from contesting elections until he is
acquitted.
BACKDROP
• In December 2017, MadhuKoda was sentenced to three
years’ rigorous imprisonment under the Indian Penal Code
and Prevention of Corruption Act by a Special CBI Court, in
relation to one of the coal scam cases.
• Koda was convicted for irregularities in the allocation of
Rajhara North coal block in Jharkhand to Vini Iron and
Steel Udyog Ltd (VISUL) in 2008.
• Koda had moved bail application in Delhi Court praying
that the operation of the order of convicting him of
criminal misconduct under Section
13(1)(d)(ii) and (iii) read with section 13(2) of the
Prevention of Corruption Act, 1988, be stayed.
• As per 2018 amendment, Section 13 of Prevention of
Corruption Act, 1988 was amended.
PREVENTION OF CORRUPTION ACT, 1988 – PRIOR TO
AMENDMENT
• Section 13 – Criminal Misconduct by Public Servant
(1) (d) - A public servant is said to commit the offence of
criminal misconduct, if he
(i) by corrupt or illegal means, obtains for himself or for any
other person any valuable thing or pecuniary advantage;
or
(ii) by abusing his position as a public servant, obtains for
himself or for any other person any valuable thing or
pecuniary advantage (demand for illegal gratification)
FOCUS| JUNE 2020 | RAU’S IAS
(iii) while holding office as a public servant, obtains for any
person any valuable thing or pecuniary advantage without
any public interest.
Section 13 (2) - Any public servant who commits criminal
misconduct shall be punishable with imprisonment for a term
which shall be not less than four years but which may extend
to 10 years and shall also be liable to fine.
POST 2018 AMENDMENT IN PCA – SECTION 13
(1) A public servant is said to commit the offence of criminal
misconduct –
(a) if he dishonestly or fraudulently misappropriates or
otherwise converts for his own use any property
entrusted to him or any property under his control as a
public servant or allows any other person so to do; or
(b) if he intentionally enriches himself illicitly during the
period of his office.
A person shall be presumed to have intentionally enriched
himself illicitly if he or any person on his behalf, is in
possession of or has, at any time during the period of his
office, been in possession of pecuniary resources or property
disproportionate to his known sources of income which the
public servant cannot satisfactorily account for.
(2) Any public servant who commits criminal misconduct shall
be punishable with imprisonment for a term which shall be
not less than 4 years but which may extend to 10 years and
shall also be liable to fine.
Note* 2018 Amendment of Section 13 of PCA meant that
demand of illegal gratification was no longer a necessary
ingredient of the offence of criminal misconduct.
DELHI HC OBSERVATION
• The Court held that there was no reason to assume that
the legislative intent of repealing Section 13 of the PC Act
was to exclude the offence of criminal misconduct from
the scope of PC Act with retrospective effect.
• The Court held that there was no doubt that it had the
power to stay the conviction. However, such power ought
to be exercised in exceptional circumstances.
• The Court also referred to Supreme Court's decision in this
regard in PUCL vs UOI regarding increasing criminalisation
of politics.
35
 Constituti0n, Polity and
Governance
REPRESENTATION OF PEOPLE ACT, 1951
Section 8 (1)(m) – As per this provision, if a person has been
convicted under Prevention of Corruption Act, 1988, shall be
disqualified, where the convicted person is sentenced to
(i) only fine, for a period of six years from the date of such
conviction,
(ii) imprisonment, from the date of such conviction and shall
continue to be disqualified for a further period of six
years since his release.
DECRIMINALISATION OF POLITICS
• Decriminalisation of politics means prevention of people
having a criminal background or those involved in criminal
offences to enter into political arena.
• Section 8 of Representation of People Act 1951 provides
for disqualifications to stand for election in case of
conviction of certain grounds.
• Thus, to prevent criminalisation of politics, it was
necessary to know about such people involved in criminal
cases so as to prevent them from entering the political
arena.
• Accordingly, Supreme Court of India in the year 2002 in a
landmark judgment (Union of India v Association for
Democratic reforms and Another) directed the Election
Commission to call for information on affidavit under
Article 324 on criminal background including:-
 previous conviction;
 acquittal or discharge along with fine;
 declaration of assets of the candidate and his/her spouse
along with number of dependants;
 liabilities including debts owed to any financial institution
or otherwise ; and
 educational qualification of the candidate.
• Again in the year 2005, the Supreme Court in Ramesh
Dalal vs. Union of India held that a sitting Member of
Parliament (MP) or Member of State Legislature (MLA) shall
also be subject to disqualification from contesting
elections if he is convicted and sentenced to not less than
2 years of imprisonment by court of law. These judgments
effectively disallowed people having criminal background
to enter political field.
FOCUS| JUNE 2020 | RAU’S IAS
• Supreme Court in Public Interest Foundation and Ors. Vs.
Union of India and Anotherrequested the Law Commission
to expedite recommendation on the following issues:
1. Whether disqualification should be triggered upon
conviction or upon framing of charges by the court or
upon the presentation of the report by the Investigating
Officer.
2. Whether filing of false affidavits under Section 125A of the
Representation of the People Act, 1951 (RPA) should be a
ground for disqualification.
TH
244 LAW COMMISSION RECOMMENDATIONS
th
• Electoral Disqualification: 244 Law Commission Report
did not favour electoral disqualification at the stage of
filing of the police report as it can be easily misused
against rival political parties.
• Filing False Affidavits: increase imprisonment upto
minimum of 2 years under Representation of People Act
(RPA), 1951 and make filing false affidavit a corrupt
practice under RPA, 1951. Corrupt Practice under RPA,
1951 is punishable upto 3 years along with fine.
• Disqualification on framing of charge for certain
offences – A candidate should be disqualified for 6 years,
if charges framed by Court include such offences whose
punishment is five years or more.
PM-CARES FUND
#RTI
IN NEWS
A law student had filed RTI request asking the Prime Minister’s
Office (PMO) to provide Prime Minister's Citizen Assistance and
Relief in Emergency Situations Fund - PM CARES Fund’s trust
deed and all government orders, notifications and circulars
relating to its creation and operation. However, PMO has
replied that PM CARES Fund is not a Public Authority under the
ambit of Section 2(h) of the RTI Act, 2005. This has increased
layers of secrecy by the government regarding operation of
fund donated under PM-CARES. So, in this context, let us
understand about Public Authority as defined in RTI Act, 2005
as well as about PM-CARES Fund.
36
 Constituti0n, Polity and
Governance
PUBLIC AUTHORITY
• RTI Act, 2005 gives citizens the right to secure access to
information under the control of public authorities, in
order to promote transparency and accountability in the
working of every public authority.
• RTI Act explains “Public Authority” asany authority or
body or institution of self- government established or
constituted—
 by or under the Constitution;
 by any other law made by Parliament;
 by any other law made by State Legislature;
 by notification issued or order made by the appropriate
Government, and includes any:-Body owned, controlled or
substantially financed; Non-Government organization
substantially financed, directly or indirectly by funds
provided by the appropriate Government.
ABOUT PM-CARES FUND
• PM-CARES Fund has been created as a Public Charitable
Trust where individuals and corporates can donate. This
fund was created keeping in mind the need for having a
dedicated national fund with the primary objective of
dealing with any kind of emergencies or distress situation,
like posed by the COVID-19 pandemic and to provide relief
to those affected by the epidemic.
• Membersof the Trust - Prime Minister is the Chairman of
the trust and its members include Defence Minister, Home
Minister and Finance Minister.
• Tax Exemption –Donations to this fund will be exempted
from income tax under section 80(G).
• Mode of Payment – A new account in the name of “PM
CARES” has been opened in State Bank of India, New Delhi
Main Branch. It allows the following mode of payments:
 Debit Cards and Credit Cards
 Internet Banking
 UPI (BHIM, PhonePe, Amazon Pay, Google Pay, PayTM,
Mobikwik, etc.)
 RTGS/NEFT
DONATION MADE TO PM CARES FUND COUNTED AS
CSR
• Ministry of Corporate Affairs has clarified that any
contribution made by companies to the PM CARES Fund
FOCUS| JUNE 2020 | RAU’S IAS
shall qualify as admissible expenditure towards fulfilling
their Corporate Social Responsibility (CSR) obligations
under Section 135 of Companies Act, 2013.
• The government has also appealed to companies to spend
generously to PM CARES Fund including any unspent CSR
Amount.
• Even if such companies have already contributed their
prescribed amount towards CSR, government has urged
companies to contribute over and above the minimum
prescribed amount which can later be offset against CSR
obligations in subsequent years, if the company so desires.
• Ministry of Corporate Affairs has also clarified that
st
contributions made to PM CARES Fund before 31 March,
2020 will also qualify for exemption under Section 80G of
st
Income Tax Act, 1961. Whereas from 1 April, 2020, only
those companies that have chosen to remain in the old tax
structure will get the benefit under Section 80G of Income
Tax Act.
MAHARASHTRA
GOVERNOR AMENDS
FOREST RIGHT ACT
#Governor #Fifth Schedule
IN NEWS
Maharashtra Governor has modified The Scheduled Tribes and
Other Traditional Forest Dwellers (Recognition of Forest Rights)
Act, 2006, allowing rightful claimants of forest rights to appeal
against decisions of the District Level Committee (DLC) by
amending Section 6 of the Act. The right to appeal against the
decision of DLCs was not available prior to the amendment.
This amendment has been proposed under sub-paragraph (1)
of paragraph 5 of the Fifth Schedule to the Constitution of
India. However, activists are concerned that this will lead to
further delays in implementation of forest laws in the
Scheduled Areas in the state of Maharashtra.
POWER OF GOVERNOR UNDER FIFTH SCHEDULE OF
THE INDIAN CONSTITUTION
37
 Constituti0n, Polity and
Governance
• The Fifth Schedule finds reference in Article 244 of the
Constitution which deals with administration of scheduled
areas and tribal areas.
• Article 244 - The provisions of the Fifth Schedule shall apply
to the administration and control of the Scheduled Areas and
Scheduled Tribes in any State other than the States of Assam,
Meghalaya, Tripura and Mizoram.
• The purpose of Para 5 of Schedule V is to establish an
egalitarian society and to ensure socio-economic
empowerment of Scheduled Tribes.
• Para 5 of Schedule V - Governor by public notification
can direct the following:
 That any particular Act of Parliament or of State Legislature
shall not apply to a Scheduled Area or any part of
Scheduled Area in the State; or
 That any particular Act of Parliament or of State Legislature
shall apply to a Scheduled Area or any part of Scheduled
Area in the State and the Governor can specify any
modification or exception regarding implementation of
any law made by Parliament or State Legislature.
 Governor is empowered to issue notification giving it
retrospective effect.
THE SCHEDULED TRIBES AND OTHER TRADITIONAL
FOREST DWELLERS (RECOGNITION OF FOREST
RIGHTS) ACT OF 2006 - AIM & OBJECTIVE
• The 2006 Act is also referred as Forest Rights Act (FRA). FRA
recognises and vest the forest rights and occupation in
forest land to such Scheduled Tribes living in forest area
and other traditional forest dwellers who have been
residing for generations but whose rights could not be
recorded.
• So, FRA provides for a framework to record forests rights
by having relevant evidence of such residence in forest
lands.
• It provides such Scheduled Tribes living in forest area and
other traditional forest dwellersresponsibility and
authority for sustainable use, conservation of biodiversity
and maintenance of ecological balance.
• It also ensures livelihood and food security of the forest
dwelling Scheduled Tribes and other traditional forest
dwellers.
FOCUS| JUNE 2020 | RAU’S IAS
• The act Grants legal recognition to the rights of traditional
forest dwelling communities and makes a beginning
towards giving communities and the public a voice in
forest and wildlife conservation.
RIGHTS GRANTED UNDER FRA, 2006
• Title rights – i.e. ownership to land that is being farmed by
tribals or forest dwellers subject to a maximum of 4
hectares; ownership is only for land that is actually being
cultivated by the concerned family, meaning that no new
lands are granted.
• Use rights – to minor forest produce (also including
ownership), to grazing areas, to pastoralist routes, etc.
• Relief and development rights – to rehabilitation in case
of illegal eviction or forced displacement; and to basic
amenities, subject to restrictions for forest protection.
• Forest management rights – to protect forests and
wildlife.
Section 6 of FRA - Authorities to vest forest rights in
forest dwelling Scheduled Tribes and other traditional
forest dwellers and procedure thereof
• The Gram Sabha shall be the authority to initiate the
process for determining the nature and extent of
individual or community forest rights or both that may
be given to the forest dwelling Scheduled Tribes and other
traditional forest dwellers within the local limits.
• Gram Sabha shall, then, pass a resolution to that effect
and thereafter forward a copy of the same to the Sub-
Divisional Level Committee.
• The Sub-Divisional Level Committee constituted by State
Government shall examine the resolution passed by the
Gram Sabha and prepare the record of forest rights and
forward it through the Sub-Divisional Officer to the
District Level Committee for their decision.
• So, the Act also provides for a Procedure for Appeal –
 Any person aggrieved by the resolution of the Gram
Sabha may prefer a petition to the Sub-Divisional Level
Committee.
 Any person aggrieved by the decision of the Sub-
Divisional Level Committee may prefer a petition to the
District Level Committee within sixty days from the date
of decision of the Sub-Divisional Level Committee
38
 Constituti0n, Polity and
Governance
• District Level Committee considers and finally approves
the record of forest rights prepared by the Sub-Divisional
Level Committee. Section 6(6) of FRA says that the
decision of the District Level Committee on the record of
forest rights shall be final and binding.
Note*-The above aspect has been amended by the Maharashtra
Governor. So, the Governor of Maharashtra by using his power
under sub-paragraph (1) of paragraph 5 of the Fifth Schedule to
the Constitution of India has proposed to add sub section 6A to
Section 6 of FRA, 2006.
CHANGES MADE IN FOREST RIGHTS ACT BY
MAHARASHTRA GOVERNOR
• New Provision for Maharashtra - Section 6 (6A) -Any
person aggrieved by the order of the District Level
Committee may prefer an appeal to the Divisional Level
Committee headed by Divisional Commissioners.
• In case of order passed by District Level Committee before
th
the commencement of this notification (18 May, 2020),
the application for appeal shall be made within six
months from the date of issue of notification.
• In case of order passed by the District Level Committee
after the commencement of this notification (18 May,
th
2020), application of appeal may be preferred within a
period of ninety days from the date of communication of
order of the District Level Committee.
• For the purpose of Appeal against decision of DLC, the
notification states that divisional level committees under
the chairmanship of Divisional Commissioners have been
constituted to hear the appeals against the DLC’s
decisions.
• The notification states that for the purpose of Section 6
(6A) of FRA, 2006, Divisional Level Committee shall
consists of –
 Divisional Commissioner—Chairman
 Chief Conservator of Forests or his representative not
below the rank of Deputy Chief Conservator of Forests—
Member
 Three Members of Scheduled Tribes, of whom at least one
shall be woman to be nominated by the state government
 Additional Tribal Commissioner or an officer nominated by
the Tribal Development Department, where post of
additional Tribal Commissioner is not available at the
divisional headquarters- Member Secretary.
FOCUS| JUNE 2020 | RAU’S IAS
• The decision of the Divisional Level Committee, subject to
the directions and orders of the State Monitoring
Committee shall be final.
IMPORTANCE OF THE AMENDMENT
• The notification is considered significant because
it empowers tribal people of the state to appeal against
the decision of District Level Committee. Earlier Individual
or Community Forest Rights of Tribals were rejected by the
DLCs and there was no provision of appeal. So, this
amendment will strengthen tribal’s rights in Maharashtra
under Forest Rights Act.
• The notification applies to areas covered in the Panchayats
(Extension to Scheduled Areas) Act in the State and allows
appeal provision against the DLC’s decision.
READ:THE PANCHAYATS (EXTENSION TO SCHEDULED
AREAS) ACT, 1996 (PESA)
• Article 243M of the Constitution, while exempting the
Fifth Schedule areas from Part IX of the Constitution
(Panchayats), provides that Parliament may by law extend
its provisions to the Scheduled and Tribal Areas subject to
such exceptions and modifications as may be specified in
such law and no such law shall be deemed to be an
amendment to the Constitution.
• On the basis of the report of the Bhuria Committee
submitted in 1995, the Parliament enacted The Panchayats
(Extension to Scheduled Areas) Act, 1996 (PESA)to extend
Part IX of the Constitution with certain modifications and
exceptions to the Scheduled V areas.
• At present Scheduled V areas exist in 10 States viz. Andhra
Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh,
Jharkhand, Madhya Pradesh, Maharashtra, Odisha,
Rajasthan and Telangana. The Ministry of Panchayati Raj
is the nodal Ministry for implementation of the provisions
of PESA in the States.
• Election to PRI - All posts of Chairpersons of Panchayati
Raj Institutions (PRIs) in the areas covered under PESA are
reserved for tribal community and only persons belonging
to tribal community can contest for these posts.
IMPORTANT POWERS PROVIDED TO GRAM SABHA
UNDER PESA
Following three types of powers have been given to a Gram
Sabha under PESA:
1. Developmental: consultation before land acquisition,
prevent land alienation, power to enforce prohibition,
39
 Constituti0n, Polity and
Governance
prior approval of all developmental projects and control
over tribal sub-plan, power to issue utilization certificate
for developmental expenditure, selection of beneficiaries
of poverty alleviation and other schemes of individual
benefits, control over institutions and functionaries of
social sectors.
2. Dispute resolutionas per traditional laws and
customs: collective resolution of disputes on the basis of
customs, traditional laws and religious beliefs of tribal
areas.
3. Ownership and management of natural resources:
maintaining ownership of local tribal community over
water resources, common lands, minor forest produce,
minor minerals, etc. as well as effective implementation
and monitoring of related laws.
OTHER POWERS GIVEN TO GRAM SABHA/ PRIS
UNDER PESA ACT
Following legal powers have been given to Gram Sabha/PRIs
under PESA Act:
1. Safeguard and preserve the traditions and customs of the
people, their cultural identity, community resources and
the customary mode of dispute resolution.
2. Approve plans, programmes and projects for social and
economic development before such plans, programmes
and projects are taken up for implementation by the
Panchayat at the village level.
3. Identification or selection of persons as beneficiaries
under the poverty alleviation and other programmes.
4. Certification of utilisation of funds by the Panchayat for
the plans, programmes and projects for identification or
selection of persons as beneficiaries under the poverty
alleviation and other programmes.
5. Right to be consulted before making acquisition of land in
the Scheduled Areas for development projects and before
re-settling or rehabilitating persons affected by such
projects in the Scheduled Areas.
6. Right to plan and manage minor water bodies in the
Scheduled Areas.
7. Recommendations prior to grant of prospecting licence or
mining lease for minor minerals and for grant of
concession for the exploitation of minor minerals by
auction in the Scheduled Areas.
8. Power to enforce prohibition or to regulate or restrict the
sale and consumption of any intoxicant.
FOCUS| JUNE 2020 | RAU’S IAS
9. Ownership of minor forest produce.
10. Power to prevent alienation of land in the Scheduled
Areas and to restore any unlawfully alienated land of a
Scheduled Tribe.
11. Power to manage village markets.
12. Power to exercise control over money lending to the
Scheduled Tribes.
13. Power to exercise control over institutions and
functionaries in all social sectors.
14. Power to control over local plans and resources for such
plans including tribal sub-plans.
IMPORTANCE OF PESA
• Effective implementation of PESA will not only bring
development but will also deepen democracy in Fifth
Schedule Areas.
• It will enhance people’s participation in decision making.
PESA will reduce alienation in tribal areas as they will have
better control over the utilisation of public resources.
• PESA will reduce poverty and out-migration among tribal
population as they will have control and management of
natural resources which will help in improving their
livelihoods and incomes.
• PESA will minimise exploitation of tribal population as they
will be able to control and manage money lending,
consumption & sale of liquor and also sell their produce in
village markets.
• Effective implementation of PESA will check illegal land
alienation and also restore unlawfully alienated tribal land.
PESA will promote cultural heritage through preservation
of traditions, customs and cultural identity of tribal
population.
LEGISLATIVE COUNCIL
#State Legislature
IN NEWS
Mr. Uddhav Thackeray was sworn in as Chief Minister of
Maharashtra on 28th November, 2019 and to continue as Chief
Minister, he had to become a member of either House of
Legislative Assembly or Legislative Council of Maharashtra
40
 Constituti0n, Polity and
Governance
before 27th May, 2020 as per Article 164(4) of the Constitution
of India. The Legislative Council elections for the nine vacant
seats which was to be held in late March was postponed due to
national lockdown imposed because of the novel corona virus.
So, amidst national lockdown and rising COVID cases in
Maharashtra, elections to the Legislative Council prior to 27th
May seemed difficult and because of this, there was an
atmosphere of political uncertainty in the state. However,
elections were held and Mr. Thackrey was elected unopposed
on 14th May, 2020 to the Legislative Council thereby fulfilling
the constitutional obligations to continue as Chief Minister. So,
in this backdrop, let us go through the constitutional
provisions regarding Legislative Councils in certain states.
IMPORTANT: PRELIMS POINTER
• Article164 (4) – Chief Minister or Other Minister of State: It
states that a Minister who for any period of six consecutive
months is not a member of the Legislature of the State
shall at the expiration of that period cease to be a Minister.
• Article 75 (5) – Prime Minister or Other Minister of Union:
A Minister who for any period of six consecutive months is
not a member of either House of Parliament shall at the
expiration of that period cease to be a Minister.
ABOUT LEGISLATIVE COUNCIL
Legislative Council also referred as VidhanParishad is the
second house of discussion depicting bicameralism at the
state level. However, every state in India does not have
Legislative Council and can be created or abolished as per
constitutional provisions.
• Permanent Body - The Legislative Council of a State shall
not be subject to dissolution. But, one-third of the
members of the Council shall retire on the expiration of
every second year.
• Qualifications - He/she must be a citizen of India and
must not be less than 30 years of age.
• Creation & Abolition of LC - Under Article 169,
Parliament may by law provide for creation or abolition of
Legislative Council in a state if the Legislative Assembly of
the State passes a resolution to that effect by a majority of
the total membership of the Assembly and by a majority of
not less than two-thirds of the members of the Assembly
present and voting. Parliament can then pass a law to this
effect by simple majority.
FOCUS| JUNE 2020 | RAU’S IAS
• Comparison of members Legislative Assembly - Under
Article 171, the Legislative Council of a state shall not have
more than one-third of the total number of MLAs of the
state, and not less than 40 members. But this provision
was not applicable to the erstwhile state of Jammu and
Kashmir because as per Section 50 of the state’s
Constitution, the Assembly had 87 members and the
Legislative Council had 36 members.
• Election & Nomination of members - Of the total
number of members of the Legislative Council of a State,
nearly 1/3rd of the MLCs are elected by the state’s MLAs,
another 1/3rd by a special electorate comprising sitting
members of local governments such as municipalities and
district boards, 1/12th by an electorate of teachers and
another 1/12th by registered graduates.
• The remaining members shall be nominated by the
Governor having special knowledge or practical experience
in the field of Literature, science, art, co-operative
movement and social service.
• Chairman & Deputy Chairman - Every state having
legislative council must chose two members of the Council
as Chairman and Deputy Chairman of the Legislative
Council.
BENEFITS OF HAVING LEGISLATIVE COUNCIL
 A second chamber in states provides as an institution of
check and balance on every Bill as it prohibits hasty
passing of Bills
 It enhances diversity by enabling non-elected citizens to
contribute to the legislative process.
 It allows more debate and sharing of work allocation
between the two houses.
LEGISLATIVE COUNCIL VS. COUNCIL OF STATES
• The legislative power of Legislative Councils are limited as
compared to Council of States or Rajya Sabha. Rajya Sabha
has substantial powers to shape non-financial legislation
whereas Legislative Councils lack a constitutional mandate
to do so.
• Assemblies can override suggestions/amendments made
to a legislation by the Council. Member of Councils cannot
vote in elections for the President and Vice President
whereas members of Rajya Sabha can vote. MLCs also
can’t vote in the elections of Rajya Sabha members.
41
 Constituti0n, Polity and
Governance
PASSING OF BILLS IN STATE ASSEMBLY
• A bill pending in state legislature does not lapse because
of prorogation of the House or Houses – Article 196(3).
• When state assembly is dissolved –
(i) A Bill pending in Legislative Council which has not been
passed by legislative assembly, does not lapse - Article
196(4)
(ii) A Bill pending in legislative assembly, or which having
been passed is pending with the Legislative Council,
lapses - Article 196(5)
(iii) A Bill passed by Legislative Council and pending in the
Assembly will lapse
(iv) A Bill passed by the Legislative Assembly, when there is
only one House, or passed by both Houses and pending
assent of Governor or of the President does not lapse.
ARTICLE 197 - RESTRICTION ON POWERS OF
LEGISLATIVE COUNCIL AS TO BILLS OTHER THAN
MONEY BILLS
If after a Bill has been passed by the Legislative Assembly of a
State having a Legislative Council and transmitted to the
Legislative Council—
(a) the Bill is rejected by the Council; or
(b) more than three months elapse from the date on which
the Bill is laid before the Council without the Bill being
passed by it; or
(c) the Bill is passed by the Council with amendments to
which the Legislative Assembly does not agree.
The Legislative Assembly may, pass the Bill again in the same
or in any subsequent session with or without such
amendments, if any, as have been made, suggested or
agreed to by the Legislative Council and then transmit the Bill
to the Legislative Council.
nd
2 time: If after a Bill has been so passed for the second
time by the Legislative Assembly and transmitted to the
Legislative Council—
(a) the Bill is rejected by the Council;
(b) more than one month elapses from the date on which the
Bill is laid before the Council without the Bill being passed
by it; or
FOCUS| JUNE 2020 | RAU’S IAS
(c) the Bill is passed by the Council with amendments to
which the Legislative Assembly does not agree;
The Bill shall be deemed to have been passed by the Houses
of the Legislature of the State in the form in which it was
passed by the Legislative Assembly for the second time
with such amendments as have been made or suggested by
the Legislative Council and agreed to by the Legislative
Assembly.
A.P. GOVT. TO REINSTATE
ITS STATE ELECTION
COMMISSIONER
#Judgement #State Election Commissioner
IN NEWS
The Andhra Pradesh High Court has struck down an ordinance
promulgated by state government of Andhra Pradesh as the
ordinance curtailed the tenure of the State Election
Commissioner (SEC) from five to three years. The High Court
also quashed government order appointing retired Judge V.
Kanagaraj as the new State Election Commissioner. Justice
Kanagaraj, a former judge of the Madras High Court, had
assumed charge as the SEC on April 11 by replacing Ramesh
Kumar. However, the High Court has restored retired
bureaucrat Dr. N. Ramesh Kumar as the State Election
Commissioner.
A.P. PANCHAYAT RAJ ACT, 1994 - CONSTITUTION OF
ANDHRA PRADESH ELECTION COMMISSION FOR
LOCAL BODIES.
1. There shall be constituted a State Election Commission for
Local Bodies for the superintendence, direction and
control of the preparation of electoral rolls for, and the
conduct of elections to, all the Panchayat Raj Institutions
governed by this Act.
2. The said Andhra Pradesh Election Commission for Local
Bodies shall consist of a Andhra Pradesh Election
Commissioner for Local Bodies. The Governor on the
42
 Constituti0n, Polity and
Governance
recommendation of the Government shall appoint a
person who is holding or who has held an office not less
in rank than that of a Principal Secretary to Government
as Andhra Pradesh Election Commissioner for Local
Bodies.
3. The conditions of service and tenure of office of the
Andhra Pradesh Election Commissioner for Local Bodies
shall be such as the Governor may, by rule, determine.
Provided that the Andhra Pradesh Election Commissioner
for Local Bodies shall not be removed from his office
except in like manner and on the like grounds as a Judge
of a High Court and the conditions of service of the
Andhra Pradesh Election Commissioner for Local Bodies
shall not be varied to his disadvantage after his
appointment.
Accordingly, the 1994 Rules of Business framed by the
Governor has prescribed a tenure of 5 years for State Election
Commissioner of Andhra Pradesh.
CHANGES BROUGHT THROUGH THE ORDINANCE
• The state government issued The Andhra Pradesh
Panchayat Raj (Second Amendment) Ordinance, 2020
modifying the Andhra Pradesh Panchayat Raj Act, 1994 to
change the tenure, eligibility and appointment of the State
Election Commissioner.
• Thus, the ordinance effectively -
• Reduced SEC’s tenure from 5 to 3 years; and
 Amended the eligibility criterion for appointment of SEC (from
being an officer of the rank of Principal Secretary and above
to one who had served as a High Court judge).
• In effect, the above changes resulted in termination of the
then SEC N. Ramesh Kumar and appointment of retired
Judge V. Kanagaraj as the new State Election
Commissioner who was a judge of Madras High Court.
• The legality of the ordinance was challenged in the High
Court by the then SEC through a petition on the ground
that it had violated the constitutional principle of
independence of Election Commission.
ARTICLE 243K - ELECTIONS TO THE PANCHAYATS
1. The superintendence, direction and control of the
preparation of electoral rolls for, and the conduct of, all
elections to the Panchayats shall be vested ina State
FOCUS| JUNE 2020 | RAU’S IAS
Election Commission consisting of a State Election
Commissioner to be appointed by the Governor.
2. Subject to the provisions of any law made by the
Legislature of a State, the conditions of service and tenure
of office of the State Election Commissioner shall be such
as the Governor may by rule determine: Provided that
the State Election Commissioner shall not be removed
from his office except in like manner and on the like
grounds as a Judge of a High Court and the conditions of
service of the State Election Commissioner shall not be
varied to his disadvantage after his appointment.
ARTICLE 243ZA - ELECTIONS TO THE MUNICIPALITIES
1. The superintendence, direction and control of the
preparation of electoral rolls for, and the conduct of, all
elections to the Municipalities shall be vested in the State
Election Commission referred to in Article 243K.
2. Subject to the provisions of this Constitution, the
Legislature of a State may, by law, make provision with
respect to all matters relating to, or in connection with,
elections to the Municipalities.
STATE ELECTION COMMISSIONER
The following provisions under Article 243K ensures
independence of State Election Commissioner -
1. Removal Procedure: Though the SEC is appointed by the
governor of the respective state, he/she can be removed
by the President only in the manner a Judge of a High
court is removed which is constitutionally prescribed
under Article 217(1)(b).
2. Conditions of service cannot be varied: Though the
conditions of service is determined by the Governor with
aid and advice of political executive, it cannot be varied to
his disadvantage after his appointment.
NOTE: REMOVAL OF JUDGE OF HIGH COURT &
SUPREME COURT
Article 217(1)(b) - A Judge may be removed from his office by
the President in the manner provided in clause (4) of article
124 for the removal of a Judge of the Supreme Court.
Article 124(4) - A Judge of the Supreme Court shall not be
removed from his office except by an order of the President
passed after an address by each House of Parliament
supported by a majority of the total membership of that
House and by a majority of not less than two-thirds of the
members of that House present and voting has been
43
 Constituti0n, Polity and
Governance
presented to the President in the same session for such absolute entrustment, but is “conditional upon satisfaction
removal on the ground of proved misbehaviour or incapacity. that circumstances exist rendering it necessary to take
immediate action”.
JUDGEMENT GIVEN BY THE HIGH COURT
• “There is no public interest or constitutional necessity to
(A) On Change of Tenure and Conditions of Service for SEC
take immediate action by the governor for promulgation of
• The appointment of SEC may be made by the Governor, in
Ordinance”. “They (chief minister and Council of Ministers)
exercise of discretionary power under Article 243K (1) of
have brought narcissist Ordinance to remove him and to
the Constitution. The only power, which is given to the
bring the person of their choice.
State legislation, is with respect to the conditions of
service and the tenure that too qualifying the test of
• The court said that, "it is actuated by fraud on power
and does not qualify the test of rationality and
Article 14 of the Constitution. Therefore, inserting
reasonableness specified in Constitution of India.”
eligibility conditions for appointment of SEC by amending
Section 200 of Andhra Pradesh Panchayat Raj Act, 1994by • Procedure under article 21 of the Indian constitution must
way of ordinance is illegal. be Just, Fair and Reasonable established by Just, Fair and

• The promulgated Ordinance by state government under Reasonable Law. (Mrs. Maneka Gandhi Vs. Union of

Article 213 (1) is hereby set-aside and as it is actuated by India (UOI) case)

fraud on power and does not qualify the test of rationality • The Ordinance was in violation of Article 243K, which
and reasonableness specified in Article 14 of the states that a SEC could not be removed, except in the
Constitution of India. Consequently, The Andhra Pradesh same manner as provided for a High Court judge.
Panchayat Raj (Salaries and Allowances, Conditions of Service,
• Holding free and fair elections is part of the “basic
Tenure of State Election Commissioner) Rules, 2020 are also
structure” of the Constitution and that it has to be
set-aside.
protected forever.
• Tenure of five years of Dr. N. Ramesh Kumar cannot be
(B) On Difference between Article 324(2) and Article 243K
taken away without completion of the tenure for which he
(2)
was appointed. Thus, the provisions of Ordinance cannot
• The High Court held that the power of appointment of CEC
take away SEC’s subsisting right as Dr. N. Ramesh Kumar
given to the President, under Article 324(2), is subject to
can only be removed as per the provisions of Article 243K
any law made by the Parliament in that behalf, but the
(2). Hence, Dr. N. Ramesh Kumar should be reinstated at
power so given to the Governor to make appointment of
his position as State Election Commissioner.
SEC, under Article 243K (1) is at his discretion and is not
• Thus, the tenure of the SEC so prescribed for a period of
subject to any law made in that behalf by the State
five years can only be curtailed by way of impeachment, in
Legislature.
case the SEC is required to be removed prior to the
completion of tenure so prescribed. Without following the
• Further, Clause (2) of Article 243K and Clause (5) of Article
324 provide for the conditions of service and tenure of the
said procedure, passing an order by the State Government
office of the SEC and CEC respectively. Therefore, it safely
directing cessation of the office of SEC is contrary to law
understood that the power of appointment, as conferred
and such order of the State is void ab initio.
under Article 324(2) to the President of India and Article
Whether any circumstances existed for Governor to
243K(1) to the Governor of the State, are to be exercised in
promulgate an Ordinance?
different manner.
• Power conferred under Article 213 of the Constitution to
• Thus, the intention of the framers of the Constitution was
promulgate ordinances was not an absolute entrustment,
clear that the appointment of the CEC and Election
but was conditional on the satisfaction that the
Commissioners must be made by the President subject to
circumstances existed for such an action.
the law made by the Parliament and not on the basis of
• Krishna Kumar Singh v. the State of Bihar Case - SC the recommendation of the Prime Minister so as to
held that the authority to issue ordinance is not an

FOCUS| JUNE 2020 | RAU’S IAS 44

 Constituti0n, Polity and
Governance
remain uninfluenced by the ideology or decision of the based on discretion uninfluenced by the proposal of the
Government in power. Council of Ministers and Chief Minister. In any case, the

• However, as per Article 243(K), the intention of the appointment of SEC cannot be made by the Governor as

Constitution is very clear that the appointment of SEC shall per the proposal made by the Chief Minister.

be made as per discretion on the Governor. • The functions of the Election Commission should not be
affected by the influence of the Executive fiat and it must
• The Court further observed - Here, it is necessary to
understand that under the Constitution, discretion has not be independent so as to maintain the basic structure,

been conferred to the President of India, but conferred so to independence of Commission to safeguard democracy in

the Governor. it is apparent that the framers of the the Country by holding free and fair elections.

Constitution gave discretionary power to the Governor as
specified in Article 163 of the Constitution but not given to the
President of India
• Thus, the High Court conclusively held that in the matter of
discretionary power to appoint the SEC in exercise of the
• Therefore, the power of appointment of SEC has been
given on the discretion of the Governor but not on the
Executive fiat of the Government. The conditions of
service and tenure of office so prescribed has been
checked by way of proviso specifying the manner of

power under Articles 243K(1) and 243ZA of the removal, as provided under Articles 243K(2) and 324(5) of

Constitution, the Governor is not required to take the aid the Constitution.

and advise of the Council of Ministers in view of the

Business Rules. The manner of appointment of SEC is

practice questions
MCQs
Q1. The Labour Code on Occupational Safety, Health 2. Record Keeping for workers of unorganised sector is to
and Working Conditions subsumes which of the be done by district administration.
following central legislations? 3. Every unorganised worker shall be eligible for
1. The Factories Act, 1948 registration if they have completed fourteen years of
2. The Plantations Labour Act, 1951 age.

3. The Contract Labour (Regulation and Abolition) Act, Which of the statements given above is/are correct?
1970 (a) 1 and 2 only (b) 2 and 3 only
4. The Industrial Disputes Act, 1947 (c) 1 and 3 only (d) 1, 2 and 3
5. The Trade Unions Act, 1926
Select the correct answer using the code given below: Q3. Consider the following statements about National
(a) 1, 4 and 5 only (b) 1, 2 and 3 only Disaster Management Act, 2005:

(c) 2, 3 and 4 only (d) 1, 3 and 5 only 1. National Disaster Management Authority is chaired by
Union Home Secretary.

Q2. Consider the following statements about The 2. State Executive Committee shall be chaired by Chief

Unorganised Workers’ Social Security Act, 2008: Minister of the State concerned.

1. It provides for constituting National and State Social Which of the statements given above is/are correct?

Security Board. (a) 1 only (b) 2 only

(c) Both 1 and 2 (d) Neither 1 nor 2

FOCUS| JUNE 2020 | RAU’S IAS 45

 Constituti0n, Polity and
Governance
4. Consider the following statements about National
Green Tribunal Act, 2010:
1. It extends jurisdiction of National Green Tribunal over
all civil cases related to environment and enforcement
of legal right relating to environment.
2. An award passed by National Green Tribunal is final
and cannot be appealed in the Supreme Court of India.
Which of the statements given above is/are correct?
1. It provides for a framework to record forests rights by
having relevant evidence of such residence in forest
lands.
2. The Gram Sabha shall be the authority to initiate the
process for determining the nature and extent of
individual or community forest rights.
3. The decision of Gram Sabha cannot be appealed
against under the Act.

(a) 1 only (b) 2 only Which of the statements given above is/are correct?

(c) Both 1 and 2 (d) Neither 1 nor 2 (a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3

Q5. Consider the following statements about the

Scheduled Tribes and Other Traditional Forest
Dwellers (Recognition of Forest Rights) Act of 2006:

descriptive Questions
Q1. How has the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act of 2006 benefitted
Scheduled Tribes living in forest area and other traditional forest dwellers? Give reasons for your answer.
(150 words) (10 Marks)
Q2. Why was the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) legislated? Discuss the important powers given to
Gram Sabha under PESA. (250 words) (15Marks)

Answers to above MCQs: 1 (b), 2 (d), 3 (d), 4(a), 5(a)

FOCUS| JUNE 2020 | RAU’S IAS 46

 ECONOMIC DEVELOPMENT
# GS Paper (Prelims) & GS Paper III (Main)

Lead Article
ECONOMIC STIMULUS
So, in this Edition of Focus Magazine, we shall discuss in detail
the Economic Package comprehensively from the perspective

PACKAGE FOR SELF-

of both Prelims and Mains. This discussion of ours has been
divided into the following dimensions as outlined below:

RELIANT INDIA 1. Broad Contours of the Package

2. First Tranche of Package- Relief and Support for MSMEs

#Government Policies and NBFCs

3. Second Tranche - Relief for the Poor and Vulnerable

sections

4. Third Tranche - Reforms in the Agriculture Sector including

Agricultural Marketing

IN NEWS 5. Fourth Tranche- Structural Reforms in sectors such as

Coal, Mineral, Civil Aviation, Defence etc.
Recently, Prime Minister gave a clarion call for Aatmanirbhar
Bharat or Self-Reliant India movement in response to economic 6. Fifth Tranche- Reforms in Employment, Education, Health
hardship created by COVID-19 pandemic. The five pillars of the etc.
Self-Reliant India movement are - Economy, Infrastructure, 7. Economic Stimulus Package- The Good, Bad and Ugly
technologically driven System, Vibrant Demography and
Demand. Accordingly, he had highlighted that the Government BROAD CONTOURS OF THE PACKAGE
would be coming out with a Special economic and
comprehensive package of Rs 20 lakh crores - equivalent to 10%
of India’s GDP. This package includes the earlier packages
announced by the Government i.e. PM GaribKalyanYojana and
various steps taken by the RBI to inject liquidity into the
economy.

Based upon the broad framework outlined by PM, the Finance

Minister has now come out with the comprehensive Economic
Package in 5 tranches. The total support extended through this
package would be around Rs 6 lakh crores. So, if we include Rs
1.7 lakh crore support under PM GaribKalyanYojana and Rs 4.5
lakh crore liquidity support given by the RBI, the total value of the
economic package so far would be to the tune of Rs 12 lakh
crore.

FOCUS| JUNE 2020 | RAU’S IAS 47

 Economic Development
The outbreak of CoVID-19 is considered to be a significant
because it has impacted both demand and supply side
simultaneously leading to twin shocks, which is considered
to be quite unprecedented.
The COVID-19 has dealt a severe blow to some of the most
critical sectors such as MSMEs, NBFCs, Real Estate and so
on. These sectors are facing huge cash crunch leading to
supply side disruption, loss of employment opportunities and
consequently decline in the demand within the economy.
According to some of the estimates, the Banks within India
are sitting on surplus cash of around Rs 8 lakh crores. These
Banks are apprehensive of extending loans to some of the
critical sectors such as MSMEs, NBFCs etc. due to the fear of
increase in the NPAs. So, the question which arises here is
"How to incentivise/ nudge the Banks to extend the loans
to these sectors”? The answer is simple. Give Government
guarantee on the repayment of the loans extended by the
Banks to certain critical sectors such as MSMEs, NBFCs, MFIs,
HFCs etc. The sovereign guarantee extended by the
Government would nudge the Banks to give their surplus
cash in the form of loans to these sectors.
Hence, a major part of the first set of economic packages has
been geared towards the sovereign guarantee to be
extended to the Bank loans given to MSMEs, NBFCs and so
on. Now, this is considered to be a smart move by the
Government. The Government is fiscally constrained to
provide direct fiscal stimulus package due to higher Fiscal
deficit. Hence, extension of sovereign guarantee on the loans
extended by the Banks would serve dual purpose. On one
hand, it would lead to greater credit creation within the
economy leading to improvement in supply, increase in
employment creation and overall push to demand for Goods.
On the other hand, it would enable the Government to
efficiently manage its Fiscal deficit.
FIRST TRANCHE OF PACKAGE- RELIEF AND
SUPPORT FOR MSMES AND NBFCS
ECONOMIC PACKAGE FOR THE MSMEs
The MSME sector employs around 111 million people and is
the second largest employer after agriculture.
contributes 30% of India's GDP and 45% of our
manufacturing export. These MSMEs which have been
badly hit by COVID-19 need additional funding to meet their
operational liabilities, buy raw materials and kickstart their
FOCUS| JUNE 2020 | RAU’S IAS
business operation. Accordingly, the Government has come
out six-point economic package to infuse liquidity into the
MSMEs.
COLLATERAL FREE AUTOMATIC LOANS FOR THE
STANDARD MSMEs
• Announcement: Banks and NBFCs to extend collateral
free loans worth Rs 3 lakh crores to the MSMEs.
• Eligibility: Applicable to only standard MSMEs (The MSMEs
who have not defaulted on their repayment of loans and
their accounts are categorized as Standard Assets by
Banks).
• Features of Loans: Loans to have 4-year tenor with
moratorium of 12 months on the Principal repayment.
Interest rate to be capped.
• Government's role: 100% Credit guarantee cover to
banks and NBFCs on principal and Interest. This guarantee
is provided by government through the Credit Guarantee
Fund Trust for Micro and Small Enterprises (CGTMSE)
• Benefits: 45 lakh MSMEs would be benefitted leading to
employment creation.
SUBORDINATE DEBT FOR STRESSED MSMEs
What is Subordinate Debt? The loans raised by a company
could be categorized as Subordinated Debt and Non-
Subordinated Debt. The non-subordinated debt enjoys higher
priority over the subordinated debt in terms of repayment.
When the company is on the verge of closure, the company
would be required to pay back its borrowings.
Now, here, first and foremost, the company would repay back
its non-subordinated Debt. Only if the company has sufficient
money left, the subordinated debt would be repaid. Hence,
the subordinated debt is riskier as compared to non-
subordinated debt and hence carry higher rate of Interest.
In short, a Subordinate Debtis a debt owed to an unsecured
creditor that in the event of a liquidation can only be paid
after the claims of secured creditors (like banks) have been
met.
Budget 2020-21 Announcement: In the Budget 2020-21, the
Finance Minister had announced that a scheme would be
It
introduced to provide subordinated debt to the
entrepreneurs of the MSMEs. Under this Scheme, the Banks
would provide subordinated debt to the MSMEs. This
subordinated debt provided by the Banks shall be in the form
48
 Economic Development
of Quasi-Equity i.e. the Bank could acquire stakes in the
ownership of the MSMEs.
New Announcement: The new announcement seeks to
provide shape to the Budget proposal. The Government
would facilitate provision of Rs 20,000 crore as subordinated
debt to around 2 lakh MSMEs.
Role of the Banks: Banks are expected to provide the
subordinate-debt to promoters of such MSMEs equal to 15%
of his existing stake in the unit subject to a maximum of Rs 75
lakhs.
Government' role: The Government would provide Rs 4,000
crores to Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE). The CGTMSE would in turn
provide partial Credit Guarantee support to Banks. (This
means any loss incurred by Banks on providing subordinated
Debt to MSMEs would be partially repaid back by the
CGTMSE).
EQUITY INFUSION THROUGH MSME FUND OF FUNDS
What is Fund of Funds? The Fund of Funds is a fund that
makes indirect investment in various sectors such as Start-
U.K. Sinha Committee Recommendations: Based upon the
previous experiences, the U.K. Sinha Committee on MSMEs
had recommended for the setting up of Fund-of-funds worth
Rs 10,000 crores for the MSME sector. According to this
committee, this fund of funds should invest in venture capital
FOCUS| JUNE 2020 | RAU’S IAS
ups, Electronics Manufacturing Industries, MSMEs etc. For
example, the Government has set up Fund of Funds for the
Start-up companies. This fund is managed by SIDBI. This
fund invests money in the various Alternate Investment
Funds (AIF) registered with the SEBI for funding the start-up
companies. The AIFs which are supported by Government
financed Fund of Funds would be required to invest at least
twice the contribution received from fund-of- funds. These
AIFs which are supported by Fund-of-funds are also referred
to as "daughter Funds". Hence, in this case, the Fund-of-
funds would be considered as Father Fund and the funds in
which it fund-of-funds invest, they are considered as
"daughter funds".
Similarly, the Government of India has also set up Electronics
Development Fund as Fund-of-Funds for development of
Electronics Manufacturing Industries. This fund invests in
SEBI registered Venture Capital funds ("Daughter Funds") that
in turn invest in equity of companies involved in the
development of new technologies in the field of electronics.
firms which provide equity support the MSMEs. This fund
should be managed by SIDBI.
New Announcement: The Government has now decided to
implement this recommendation of setting up fund-of-fund
worth Rs 10,000 crores.
49
 Economic Development
NEW DEFINITION OF MSME
Problems with the existing Definition of MSME: The
definition of MSMEs has been provided under MSMED Act,
2006. Presently, MSMEs are defined in terms of their
investment in plant and machinery or equipment as shown
below. There are a number of problems with the existing
definition of the MSMEs.
1. Definitions based on investment limits in plant and
machinery/ equipment were decided when the Act was
formulated in 2006 and does not reflect the current
increase in price index of plant and machinery /
equipment.
New Announcement: As shown in the above table,
important changes have been introduced in the new
definition of MSMEs:
1. The Investment limit has been increased.
2. An additional criterion of annual turnover has been
introduced.
3. The distinction in the definition of Manufacturing and
service sector enterprises has been done away with.
4. It has also been decided that the turnover with respect to
exports will not be counted in the limits of turnover for any
category of MSME.
FOCUS| JUNE 2020 | RAU’S IAS
2. MSMEs due to their informal and small scale of operations
often do not maintain proper books of accounts and hence
find it difficult to get classified as MSMEs as per the current
definition.
3. Presently, the MSMEs get number of benefits from the
government such as collateral free loans, tax concessions
etc. Hence, if they lose the status of MSME, then they
would no longer be able to avail these benefits. Hence, in
order to avoid losing the status of MSME, the industries
deliberately keep their investment levels below the
threshold mentioned in the MSMED act.
Hence, in a way, the existing definition has incentivised the
MSMEs to remain smaller rather than incentivising them to
grow bigger and create more number of jobs.
PREFERENCE TO MSMEs FOR GOVERNMENT
TENDERS
Present Scenario: Whenever the Government has come out
with the tenders for the procurement of goods and services,
such tenders have had higher benefit for the foreign
companies. The MSMEs within India are unable to compete
with the deep-pocketed and technologically advanced foreign
companies to get the government tenders.
New Announcement: General Financial Rules (GFR) of the
Government will be amended to disallow global tender
contracts in procurement of Goods and Services of value of
less than Rs 200 crores. This means, going forward, if the
Government seeks to award tenders for goods and services
50
 Economic Development

worth Rs 200 crores, such tenders would be given only to
domestic Indian companies and MSMEs. Foreign companies
would be barred from bidding for such Government tenders.
EMPLOYEES PROVIDENT FUND SUPPORT FOR
BUSINESS AND ORGANISED WORKERS
Present Status: The Government is presently implementing
social security schemes such as Employee provident fund
(EPF), Employee pension scheme(EPS), Employee state
Insurance etc. for the benefit of workers in the organised
sector. The contribution to these schemes is made by both
employee and employer wherein the contribution is defined
in terms of percentage of basic salary of the employees. The
contribution is mandatory for the workers whose monthly
basic salary is below Rs 15,000. The contribution to these
social security schemes is as shown below:
the CPSEs and State PSUs will however continue to contribute
12% as employer contribution. This scheme will be applicable
for workers who are not eligible for 24% EPF support under
PM Garib Kalyan Package and its extension i.e. employed in
industries having more than 100 workers.
Benefits: It would provide relief to the employers in the
payment of Provident fund. At the same time, the lower
contribution to PF would lead to higher take home salary for
the employees leading to demand within the economy.
FINANCIAL SUPPORT TO THE NBFCs
Special Liquidity Scheme for NBFC/HFC/MFIs
Present Status: The NBFCs, HFCs and MFIs are facing cash
crunch which in turn has led to decrease in the credit creation
within the economy. Hence, in order to inject liquidity into the
NBFCs, the RBI had come up with Rs 1 lakh crore targeted
long-term repo operations (LTROs). Under this tool, the
Banks would borrow money from the RBI for a period of 3
years and rate of interest would be linked to Repo rate.

The money borrowed by the Banks would then has to

invested in investment grade bonds, commercial papers
issued by the NBFCs.

PREVIOUS ANNOUNCEMENT UNDER PRADHAN

MANTRI GARIB KALYAN PACKAGE (PMGKP)
As can be seen in above figure, both employee and employer
are required to make contribution of 12% each, totalling 24%
to EPF and EPS. The Government has announced that it
would pay 24% of the contribution of both employee and
employer for the next 3 months. This would be applicable
only those workers whose basic salary is below Rs 15,000 per Problems with the RBI’s Guidelines: There has been poor
month and are employed in industries having less than 100 response to the targeted LTROs wherein the Banks have not
workers. This scheme was applicable for the next 3 months availed the liquidity provided by the RBI. This is so because
i.e. for the salary months of March, April and May 2020. the risk-averse Banks are reluctant to lend money to the
financially stressed NBFCs, MFIs and HFCs.
New Announcement: The scheme introduced as part of
PMGKP will be extended by another 3 months for salary New Announcement: The Government has come out with
months of June, July and August 2020. Rs 30,000 crore special liquidity scheme in order to
incentivise the Banks to borrow money from RBI through
EPF Contribution to be reduced for Employers and
targeted LTROs and use that borrowed money to inject
Employees for 3 months
liquidity into NBFCs, HFCs and MFIs.
New Announcement: PF contribution of both employer and
Under this scheme, the money borrowed by the Banks from
employee reduced to 10% each from existing 12% each for all
the RBI would have to be invested in the investment grade
establishments covered by EPFO for next 3 months. However,
bonds, commercial papers issued by the NBFCs. In case of

FOCUS| JUNE 2020 | RAU’S IAS 51

 Economic Development
default by the NBFCs, the Government would repay the entire
amount i.e. 100% government guarantee on repayment of
such financial instruments.
Partial credit guarantee Scheme 2.0 – Expansion of
existing Scheme to cover liabilities of NBFCs and HFCs
Existing Partial Credit Guarantee Scheme: Under this
scheme,the Public Sector Banks would purchase highly rated
assets of the NBFCs and HFCs in order to inject liquidity and
address the temporary liquidity crunch.
Problems with the existing scheme: The existing scheme
provides for the guarantee on only the assets of the NBFCs
and HFCs. It does not provide for guarantee on the liabilities
of NBFCs i.e. bonds, commercial papers which are issued by
them to raise money. Now, for example, if a NBFC has lent
money for financing infrastructure project, then it becomes
an asset and hence eligible for protection under existing
Partial Credit Guarantee Fund scheme.
However, the commercial papers issued by the NBFCs to
raise money and give loans to infrastructure company are
considered to be liabilities and hence not eligible for
protection under the existing scheme.
Going forward, the NBFCs should be allowed to raise more
finances in order to kickstart credit creation. This can be done
by giving Government guarantees on the liabilities of NBFCs.
Partial credit guarantee Scheme 2.0: The existing Partial
credit guarantee scheme has now been extended to cover
even the liabilities such as Commercial papers, bonds etc.
issued by the NBFCs, HFCs etc. Under the new scheme, the
Banks would be allowed to make investment in the
commercial papers, Bonds issued by the NBFCs. In case of
FOCUS| JUNE 2020 | RAU’S IAS
The Government provides for 10% first loss guarantee to
assets, amounting to total of ₹ 1 lakh crore. Here, it is
important to note that the limit of ₹ 1 lakh crore refers to the
total amount of assets against which guarantee will be
extended and not the total amount of guarantee. The
maximum exposure that the Government will take under the
Scheme is ₹ 10,000 crores (10% of ₹ 1 lakh crore).
default, first 20% of the loss would be guaranteed by the
Government.
LIQUIDITY INJECTION FOR DISCOMS
Present problem with DISCOMs: Decrease in demand for
Electricity due to COVID-19 Cash flow problem for the
DISCOMs Unable to clear its dues to the power generating
companies Inability of the power companies to repay their
loans Possible increase in the NPAs of the Banks Poor
Credit Creation.
New Announcement: The Power Finance Corporation and
Rural Electrification Corporation will infuse liquidity in the
DISCOMS to the extent of Rs 90000 crores in two equal
instalments. This amount will be used by DISCOMS to pay
their dues to Transmission and Generation companies.
Further, Central Public sector Generation companies such as
NTPC will give a rebate to DISCOMS on the condition that the
discount is passed on to the final consumers as a relief.
RELIEF TO CONTRACTORS
All central agencies like Railways, Ministry of Road Transport
and Highways and CPWD will give extension of up to 6
months for completion of contractual obligations. The
52
 Economic Development

obligations could be in the nature of extending the time for tax liability. Similar, on winning lottery prize, the tax amount
the completion of a project or procurement of goods and of 5% would be deducted as TDS.
services. Some of the payments on which the TDS is applicable include
RELIEF TO REAL ESTATE PROJECTS Interest on Securities, Dividend income, Payment of
contractors, Lottery prize, Payment for availing professional
Present Status: Presently, the Real Estate (Regulation and
services etc.
Development) Act, 2016 provides for time bound completion
of real estate projects. Section 6 of the Real Estate (Regulation Tax Collected at source is the tax that is collected by the
and Development) Act, 2016 provides for the extension of Seller from the buyer and then paid to the Government.
real estate project by the Real estate development authority For example, Let’s say a seller “ABC” sells goods worth Rs 100
by invoking Force Majeure clause. Under this clause, the to a buyer “XYZ”. Let’s say in this case, the Government has
extension of real estate project could be given on account of prescribed TCS rate of 5%. Then the seller “ABC” would collect
war, flood, drought, fire, cyclone, earthquake or any other Rs 105 from the buyer, out of which Rs 100 would remain
calamity caused by nature affecting the regular development with ABC and remaining Rs 5 would be paid to the
of the real estate project. Government in the form of tax.
New Announcements: Due to the impact of COVID-19, most Some of the payments on which TCS is applicable include
of the real estate projects have got struck and accordingly the Sale of Tendu leaves, Scrap, Mineral ores such as Iron ore,
timeline for the completion of real estate projects need to be coal, Sale of motor vehicles above Rs 10 lakhs etc.
extended.Accordingly, the Ministry of Housing and Urban
Affairs will advise States/UTs and their Regulatory Authorities TAX DEDUCTED AT SOURCE TAX COLLECTED AT
the following: (TDS) SOURCE (TCS)

• Treat COVID-19 as an event of ‘Force Majeure’ under RERA. Tax that is deducted at the Tax which is collected at the
• Extend the registration and completion date Suo-moto by time of making payment time of selling certain
6 months Goods

• Regulatory Authorities may extend this for another period Deducted by the entity that Collected by the entity that
of up to 3 months, if needed. makes the payment sell the Goods
REDUCTION IN THE RATE OF TAX DEDUCTION AT
Deducted on Payments like Collected on sale of certain
SOURCE (TDS) AND TAX COLLECTION AT SOURCE salary, Interest, professional specified goods such as
(TCS) fee, Lottery prize, payment to tendu leaves, scrap, Mineral
Understanding Tax Deduction at source (TDS) and Tax contractors, Rent, purchase ores, Motor vehicles etc.
collection at Source (TCS): TDS and TCS was introduced to of immovable property etc.
collect the tax at the source from which individual’s income is
New Announcement: The TDS rates for all non-salaried
generated. Both these tools are used to minimise tax evasion
payment to residents, and tax collected at source rate will be
by taxing the income at the time when it is generated rather
reduced by 25 percent of the specified rates for the
than at a later date.
remaining period of FY 20-21. This will provide liquidity to the
Tax Deducted at Source is the tax that is deducted by tune of Rs 50,000 Crore.
Payer or buyer. For example, let’s say you earn interest on
the fixed deposit with the Bank. Here, as part of TDS, the SECOND TRANCHE - RELIEF FOR THE POOR
bank would deduct the tax income and pay only the
AND VULNERABLE SECTIONS
remaining amount to you. The tax deducted by the Bank
would then be paid to the Government on your behalf. Later, The Second tranche of the Economic Stimulus package has
while filing Income tax returns, TDS would be considered as focused on providing relief to the poor and vulnerable
tax paid and this amount would be adjusted against the total sections of the Indian Society. It has sought to ameliorate
the hardships faced specifically by migrant labours, street

FOCUS| JUNE 2020 | RAU’S IAS 53

 Economic Development
vendors, migrant urban poor, small traders, self-employed
people, small farmers etc. The broad contours of the second
tranche of package is as given below:
Free food grains supply to migrants for 2 months:
Additional food grain to all the States/UTs at the rate of 5 kg
per migrant labourer and 1 kg Chana per family per month
for two months i.e. May and June 2020 free of cost. Migrant
labourers not covered under National Food Security Act or
without a ration card in the State/UT in which they are
stranded at present will be eligible.
AFFORDABLE RENTAL HOUSING COMPLEXES
Government will launch a scheme under Pradhan Mantri
Awas Yojana (PMAY) for migrant labour/urban poor to
provide ease of living at affordable rent. This would be done
through:
1. Converting government funded housing in the cities into
Affordable Rental Housing Complexes (ARHC) under PPP
mode;
2. Incentivizing manufacturing units, industries, institutions,
associations to develop Affordable Rental Housing
Complexes (ARHC) on their private land and operate; and
3. Incentivizing State Government Agencies / Central
Government Organizations on the similar lines to develop
Affordable Rental Housing Complexes (ARHC) and operate.
INTEREST SUBVENTION FOR MUDRA-SHISHU LOANS
About Mudra Scheme: The Pradhan Mantri MUDRA Yojana
(PMMY) providing for loans up to Rs. 10 lakhs to the non-
corporate, non-farm small/micro enterprises. Under PMMY,
all banks are required to lend to non-farm sector income
generating activities below Rs.10 lakhs. These loans are
classified as MUDRA loans under PMMY as given below:
• Shishu (loans up to Rs. 50,000);
• Kishore (loans from Rs. 50000 to Rs. 5 lakhs);
• Tarun (loans from Rs.5 lakhs to Rs. 10 lakhs)
New Announcement: The total loan disbursed under the
MUDRA-Shishu is around Rs 1.62 Lakh crore. Government of
India will provide Interest subvention of 2% for prompt
payees for a period of 12 months (applicable only to Mudra-
Shishu loanees)
Note: The Interest subvention means that the Government
pays a part of Interest taken on loans.
FOCUS| JUNE 2020 | RAU’S IAS
Special Credit Facility for Street Vendors :Government will
launch a special scheme within a month to facilitate easy
access to credit to street vendors. Under this scheme, bank
credit facility for initial working capital up to Rs. 10,000 for
each enterprise will be extended. This scheme will cover
urban as well as rural vendors doing business in the adjoining
urban areas.
EXTENSION OF CREDIT LINKED CAPITAL SUBSIDY
SCHEME TO BOOST HOUSING SECTOR
About Credit linked Capital Subsidy Scheme: It is a
component of Pradhan MantriAwasYojana (PMAY). Under this
component, the Government pays certain part of interest on
the home loans taken by the home buyers from Banks and
NBFCs.
Beneficiaries of Economically Weaker Section (EWS)/Low
Income Group (LIG), Middle Income Group (MIG)-I and Middle
Income Group (MIG)-II seeking housing loans from Banks,
Housing Finance Companies and other such institutions for
acquiring/constructing houses are eligible for an interest
subsidy of 6.5%, 4% and 3% on loan amount up to Rs. 6 lakhs,
Rs. 9 lakhs and Rs. 12 lakhs respectively.
The Interest subsidy is credited upfront to the loan account of
beneficiaries resulting in reduced effective housing loan and
Equated Monthly Instalment (EMI).
New Announcement: The Credit Linked Subsidy Scheme for
Middle Income Group has been extended by one more year
st st
from 31 March 2020 to 31 March 2021.
Creating employment using CAMPA funds: Approximately
Rs 6,000 crore of funds under Compensatory Afforestation
Management & Planning Authority (CAMPA) will be used
for Afforestation and Plantation works, including in urban
areas, Forest management, soil & moisture conservation
works, forest and wildlife related infrastructure development
etc.This will create job opportunities in urban, semi-urban
and rural areas and also for Tribals.
Emergency Working Capital for farmers through NABARD:
NABARD will extend additional re-finance support of Rs
30,000 crore for meeting crop loan requirement of Rural
Cooperative Banks and RRBs.
Concessional credit through Kisan Credit Cards (KCC):
Special drive to be undertaken to provide concessional credit
to PM-KISAN beneficiaries through Kisan Credit Cards.
Fishermen and Animal Husbandry farmers will also be
included in this drive.
54
 Economic Development
THIRD TRANCHE - REFORMS IN THE
AGRICULTURE SECTOR INCLUDING
AGRICULTURAL MARKETING
rd
As part of 3 tranche, the Government has converted the
COVID-19 crisis into a reform opportunity by undertaking
long pending reforms in the agriculture marketing. These
reform measures are considered to be quite significant and
reduce the agrarian distress in the country.
Out of 11 measures announced by the Finance Minister, 8
measures are for improving agricultural infrastructure and 3
measures are for administrative and governance reforms,
including removing restrictions on sale and stock limits of
farm produce.
AGRI INFRASTRUCTURE FUND FOR FARM-GATE
INFRASTRUCTURE FOR FARMERS
Background: The agriculture marketing infrastructure in
India continues to remain outdated and highly fragmented. In
spite of increase in the production of agricultural
commodities, the farmers have not got benefit due to the
poor marketing infrastructure.
A High-level Expert Committee constituted by Ministry of
Agriculture has estimated that 25 to 30 % of fruit and
vegetables and 8 to 10 % of food grains are wasted annually
due to lack of post-harvest technology and non-existence of
integrated transport, storage and marketing facilities, etc. The
total estimated post-harvest losses amounts to around Rs
92,000 crores.
New announcement: The Government has unveiled Rs 1
lakh crore worth Agri Infrastructure Fund to improve the
farm-gate infrastructure such as collection centres, storage,
cold chain infrastructure etc. This fund would provide
necessary funding support to Primary Agricultural
Cooperative Societies, Farmers Producer Organizations,
Agriculture entrepreneurs, Start-ups, etc. to invest in post-
harvest management infrastructure.
FORMALISATION OF MICRO FOOD ENTERPRISES
(MFE)
Background: The agriculture export policy 2018 calls for
doubling India's exports of agricultural commodities from $
30 bn to $ 60 bn by the end of 2022. Further, the agricultural
exports from India are basically dominated by Rice, Marine
products and Meat, which comprise of around 50% of our
FOCUS| JUNE 2020 | RAU’S IAS
exports. Accordingly, the policy calls for diversification of
India's export basket.
The policy also calls for substantial value addition in our
agricultural exports. The value addition would boost India's
exports and give an added thrust to food processing
Industries. Further, PM has recently outlined the vision for
‘Vocal for Local with Global outreach’ wherein we need to
brand the Indian products so that they have global outreach.
Hence, there is a need to support the micro food processing
Industries to attain these goals.
New Announcement: The Government has launched Rs
10,000 crores Scheme for Formalisation of Micro-food
enterprises. Under this scheme, the Existing micro food
enterprises, Farmer Producer Organisations, Self Help
Groups and Cooperatives would be supported for
undertaking technical upgradation.
Doing so, would enable them to meet international food
standards, build brand value and market their products.
The focus of the Government would be on Cluster based
approach (e.g. Mango in UP, Kesar in J&K, Bamboo shoots in
North-East, Chilli in Andhra Pradesh, Tapioca in Tamil Nadu,
Ragi in Karnataka, Turmeric in Telangana etc.)
Benefits: Improved health and safety standards, integration
with retail markets, improved incomes. It will also help in
diversifying our export basket with substantial amount of
value addition.
PRADHAN MANTRIMATSYASAMPADAYOJANA
(PMMSY)
Background: Presently India is the second largest fish
producing and second largest aquaculture nation in the world
after China. The Fisheries sector is an important sector of
food production providing nutritional security, livelihood
support and gainful employment to more than 14 million
people. It also accounts for around 10% of the total exports
and nearly 20% of the agricultural exports, and contribute to
about 0.91% of the GDP.
However, the fisheries sector faces number of challenges and
problems such as
• Traditional techniques of fishing
• Lack of Modernised fishing vessels
• Lack of quality inputs in terms of seed, feed.
• Lack of Cold chain infrastructure
55
 Economic Development
• Higher post-harvest loses
• Poor health management and marketing support.
Hence, in order to solve these problems, the Finance Minister
had launched Pradhan MantriMatsyaSampadaYojana
(PMMSY) in the Union budget 2019-20.
New Announcement: The Government has now given final
shape to the Pradhan MantriMatsyaSampadaYojana (PMMSY)
and decided to launch it immediately. The scheme would
focus on integrated, sustainable, inclusive development of
marine and inland fisheries. The scheme would have total
outlay of Rs 20,000 crores out of which Rs 11,000 crore is
earmarked for activities in Marine, Inland fisheries and
Aquaculture and the remaining Rs 9,000 crores is earmarked
for improving fishing infrastructure such as Fishing Harbours,
Cold chain, Markets etc. Emphasis would also be given to
Cage Culture, Seaweed farming, Ornamental Fisheries as well
as New Fishing Vessels.
Benefits: It will lead to additional Fish Production of 70 lakh
tonnes over 5 years. Employment to over 55 lakh persons;
double exports to Rs 1 lakh crores.
NATIONAL ANIMAL DISEASE CONTROL PROGRAMME
Background: India has the world's largest livestock
population comprising of cattle, buffalo, sheep, goats, pigs,
poultry birds etc. The livestock sector is an important source
of livelihood and employment generation and contributes
around 25% to the overall agricultural GDP. However, one of
the biggest problem of this sector is the occurrence of Food
and Mouth disease and Brucellosis among the livestock. The
economic loss due to these diseases is tremendous due to
death of young animals, marked reduction in milk yield,
abortion in advance stage of pregnancy and reduced working
ability of drought animals, decline in quality of meat,
reduction in fertility and poor quality of semen in breeding
bull etc. The diseases also restrict the possible export of
livestock and livestock products in the overseas.
Hence, in order to prevent the occurrence of Food and Mouth
disease and Brucellosis, the Government had launched
National Animal Disease Control Programme in September
2019.The NADCP aims to control these two diseases by 2025,
and to eradicate them by 2030.
New Announcement: The Government has stated that it
would ensure 100% vaccination of cattle, buffalo, sheep, goat
and pig population (total 53 crore animals) for Foot and
FOCUS| JUNE 2020 | RAU’S IAS
Mouth Disease (FMD) and for brucellosis. Till date, 1.5 crore
cows & buffaloes tagged and vaccinated.
ANIMAL HUSBANDRY INFRASTRUCTURE
DEVELOPMENT FUND - RS. 15,000 CRORES
Background: India is the largest producer of Milk in the
world with an annual milk production of around 180 MT. The
per-capita availability of milk has increased to 375 grams/day
as against the global average of 300 grams/day. Most of the
milk in the country is produced by small, marginal farmers
and landless laborersand hence considered vital to promote
inclusive growth and development in India.
New announcement: There are number of high milk
producing areas within India that have great potential for
attracting private sector investment in Dairy. The private
sector can make substantial amount of investment in Dairy
Processing, value addition and cattle feed infrastructure.
Hence, in order to incentivise private sector investment, the
Government has launched Rs 15,000 crores worth Animal
Husbandry Infrastructure Development Fund.
Under this fund, financial incentives would also be given for
private sector investment in certain niche products such as
Milk powder, Ghee, butter, Cheese etc.
PROMOTION OF HERBAL CULTIVATION
Background: India is one of the richest countries in the world
in terms of biodiversity. Out of the 17000-18000 species of
flowering plants, more than 7000 are estimated to have
medicinal usage in folk and documented systems of medicine
like Ayurveda, Unani, Siddha & Homoeopathy (AYUSH System
of Medicine). Medicinal plants are not only a major resource
base for the traditional medicine & herbal industry but also
provide livelihood and health security to a large segment of
Indian population.
In order to promote medicinal plants sector, the Government
of India has set up National Medicinal Plants Board (NMPB) in
2000. Currently, the board is located in Ministry of AYUSH
(Ayurveda, Yoga & Naturopathy, Unani, Siddha &
Homoeopathy).
New announcement:
• The National Medicinal Plants Board (NMPB) has so far
supported 2.25 lakh hectare area under cultivation of
medicinal plants.
• Additional 1 million hectares will be covered under Herbal
cultivation in next two years with outlay of Rs. 4,000
56
 Economic Development
crores. This will lead to Rs. 5,000 crore income generation
for farmers.
• NMPB will bring 800-hectare area by developing a corridor
of medicinal plants along the banks of Ganga.
• Network of regional Mandis for Medicinal Plants would also
be set up.
BEEKEEPING INITIATIVES – RS 500 CRORE
Background: Beekeeping or Apiculture is an important allied
activity which can emerge as source of income and
employment generation in India. Apiculture also increases
yield & quality of crops through pollination. Hence, the
Government had earlier launched new Central Sector Scheme
entitled “National Beekeeping & Honey Mission (NBHM)” for
overall promotion and development of scientific beekeeping
in mission mode to achieve the goal of “Sweet Revolution” in
the country. It gave an added thrust on capacity building &
trainings, setting up of Integrated Beekeeping Development
Centres (IBDCs), processing, value addition, market support
etc. & R&D.
New announcement: Taking forward the previous initiatives,
the Government has now announced a new scheme for
boosting beekeeping activities within India. The scheme
would focus on:-
• Infrastructure development related to Integrated
Beekeeping Development Centres, Collection, Marketing
and Storage Centres, Post-Harvest & value Addition
facilities etc;
• Implementation of standards & Developing traceability
system;
• Capacity building with thrust on women;
• Development of quality nucleus stock and bee breeders.
FROM ‘TOP’ TO TOTAL - RS 500 CRORE
Background: Operation Greens was announced in the
Budget 2018-19 with an outlay of Rs 500 crores to stabilize
the supply of Tomato, Onion and Potato (TOP) crops. It seeks
to ensure availability of TOP crops throughout the country
round the year without price volatility. This scheme is
implemented by the Ministry of Food Processing Industries
and NAFED acts as the nodal agency.
New announcement: The COVID-19 pandemic has disrupted
the supply chains and farmers are not being able to sell their
produce in the markets. Hence, the distress sale and
FOCUS| JUNE 2020 | RAU’S IAS
reduction of price of perishable fruits and vegetables at the
farm level needs to be prevented. Accordingly, Operation
Greens will be extended from Tomatoes, Onion and Potatoes
(TOP) to ALL fruits and vegetables (TOTAL).
The Scheme features will be as follows:
• 50% subsidy on transportation from surplus to deficient
markets.
• 50% subsidy on storage, including cold storages.
• Pilot for 6 months – Will be expanded and extended
Expected outcomes: Better price realisation to farmers,
reduced wastages, affordability of products for consumers.
AMENDMENTS TO ESSENTIAL COMMODITIES ACT
Essential Commodities Act and its rationale: The Essential
Commodities Act was enacted in 1955 to make available
certain commodities to the consumers at fair prices. It is used
by the Government to regulate the production, supply and
distribution of commodities which are declared as essential
under the act. The list of items under the Act includes drugs,
fertilizers, pulses and edible oils, and petroleum and
petroleum products. The Central Government may add or
remove a commodity from the schedule in consultation with
the State Governments.For instance, in March 2020, the
Union Government declared masks and hand-sanitisers as
essential commodities under the Essential Commodities Act,
1955. This was done in order to ensure that they are available
to people at the right price and in the right quality.
How does it work? If the Centre finds that a certain
commodity is in short supply and its price is increasing, it can
notify stock-holding limits on it for a specified period.
Anybody trading or dealing in a such a commodity, be it
wholesalers, retailers or even importers are prevented from
stockpiling it beyond a certain quantity. This improves
supplies and brings down prices.
HOW ESSENTIAL COMMODITIES ACT HINDERS THE
AGRICULTURAL MARKETING?
• Fails to realize stocking is essential: The fear of bringing
the agricultural commodities under the act has prevented
the traders and processors from undertaking bulk
procurement of agricultural commodities during bumper
harvest season. Hence, the increase in the agricultural
production has not translated into higher income levels.
Further, since almost all crops are seasonal, ensuring
57
 Economic Development
round-the-clock supply requires adequate build-up of
stocks during the season.
• Poor investment in Storage infrastructure: With
frequent stock limits, traders have not invested in better
storage infrastructure.
• Adverse impact on Food Processing Industry: Food
processing industries need to maintain large stocks to run
their operations smoothly. Stock limits curtail their
Operations. In such a situation, large scale private
investments are unlikely to flow into food processing and
cold storage facilities.
• Impact on agriculture exports: Whenever the
Government declares an agricultural commodity as
essential, it imposes a number of restrictions on it
including ban of export of such commodities. This
prevents the Indian farmers to get the best prices on their
agriculture produce from the international markets.
• Outdated Act: The Act is not in tune with present times.
This act was enacted in 1955 when we used to frequently
face shortage of agricultural commodities. Hence, it
needed government intervention to clamp down on black
marketing and hoarding. However, now situation has
changed completely. Now, we have surplus production of
agricultural production. Hence, accordingly, we must give
the necessary freedom to the traders, aggregators and
food processing industries to undertake bulk procurement
of the agricultural commodities.
New Announcement: The Government will amend Essential
Commodities Act. Agriculture food stuffs including cereals,
edible oils, oilseeds, pulses, onions and potato shall be
deregulated. Stock limit will be imposed under very
exceptional circumstances like national calamities, famine
with surge in prices. Further, no such stock limit shall apply to
processors or value chain participant, subject to their
installed capacity or to any exporter subject to the export
demand.
AGRICULTURE MARKETING REFORMS TO PROVIDE
MARKETING CHOICES TO FARMERS
Background: Agriculture is a subject which is placed under
the State List. Accordingly, the state governments have
enacted their respective APMC Acts to regulate the marketing
of agriculture commodities. However, the APMCs are
considered to be highly restrictive and prohibitive and hence
go against the interest of farmers. For example, the farmers
FOCUS| JUNE 2020 | RAU’S IAS
are required to compulsorily sell their produce only to the
registered traders in the APMCs. They cannot sell their
produce directly to the end consumers, processors or
exporters. Similarly, some of the states have restricted the
farmers from selling their produce outside their APMC Zones.
However, such kind of restrictions are not applicable to sale
of industrial goods.
Accordingly, in order to bring about agriculture marketing
reforms, the Central Government has come out with Model
Agriculture produce and livestock marketing act, 2017. It has
been persuading the state government to adopt the features
of this model legislation.
New Announcement: The Inter-state trade and commerce is
placed under the Union list. So, accordingly, the Centre can
formulate a law to promote, regulate and restrict the inter-
state trading of various goods. As discussed before,
presently, the APMC Acts are highly restrictive and prohibit
the farmers from selling their produce to whomsoever they
want to. We need to give adequate freedom to the farmers to
sell their produce anywhere within India where they are likely
to get higher prices. We need to dismantle fragmented
agriculture marketing infrastructure and move towards
integrated domestic market or agriculture goods.
In pursuance of such an objective, the Government had
declared that it would come up with a new central law. Such a
central law would incorporate the following:
• Adequate choices to farmer to sell produce at attractive
price;
• Barrier free Inter-State Trade;
• Framework for e-trading of agriculture produce.
FACILITATIVE LEGAL FRAMEWORK FOR CONTRACT
FARMING
What is Contract farming?Under contract farming,
agricultural production (including livestock and poultry) can
be carried out based on a pre-harvest agreement between
buyers (such as food processing units and exporters) and
producers (farmers or farmer organizations). The producer
can sell the agricultural produce at a specific price in the
future to the buyer as per the agreement. These benefits
both the producers as well as the buyers. The producer can
get support from the buyer for improving production through
inputs (such as technology, pre-harvest and post-harvest
infrastructure) as per the agreement. The producer canalso
reduce the risk of fluctuating market price and demand. On
58
 Economic Development

the other hand, the buyer can reduce the risk of non- with processors, aggregators, large retailers, exporters etc. in
availability of quality produce. a fair and transparent manner. Risk mitigation for farmers,

Current Legal Framework: Currently, contract farming assured returns and quality standardization shall form

requires registration with the Agricultural Produce Marketing integral part of the framework.

Committee (APMC) in few states. This means that contractual

agreements are recorded with the APMCs which can also FOURTH TRANCHE- STRUCTURAL REFORMS
resolve disputes arising out of these contracts. Further, IN SECTORS SUCH AS COAL, MINERAL, CIVIL
market fees and levies are paid to the APMC to undertake AVIATION, DEFENCE ETC.
contract farming. The central government has formulated
The 4th structural reforms in the eight sectors of Coal,
Model Agriculture Produce and Livestock Contract Farming
Minerals, Defence production, Civil Aviation, Power Sector,
and Services (Promotion & Facilitation) Act, 2018 which
Social Infrastructure, Space and Atomic energy.
provides for contract farming. Accordingly, the central
Government has asked the states to use this as reference Coal Sector: In the previous Editions of Focus Magazine, we
while enacting their respective laws. had discussed various reforms introduced by the
Government in the coal sector. The same has been
New Announcement: The Government will finalise
summarized as below:
a facilitative legal framework to enable farmers to engage

Taking these reforms forward, some new announ- 3. Coal Gasification / Liquefication will be incentivised
cements were made in the coal Sector. through rebate in revenue share. This will result in

1. Auction of Coal mine blocks through the Revenue sharing significantly lower environment impact and also assist

mechanism instead of present fixed Rupee/tonne India in switching to a gas-based economy.

mechanism.

2. The entry norms will be liberalised. Nearly 50 Blocks will be

offered immediately.

FOCUS| JUNE 2020 | RAU’S IAS 59

 Economic Development

MINERAL SECTOR or geochemical surveys and geological mapping. Prospecting

License is granted for undertaking operations for purpose of
Composite Licensing Regime: Presently, the private sector
exploring, locating or proving mineral deposit. Mining Lease
companies willing to undertake mining are required to apply
is granted for undertaking operations for mining minerals.
for multiple licenses from the Government. For example,
Reconnaissance Permit is granted for preliminary
prospecting of a mineral through regional, aerial, geophysical

FOCUS| JUNE 2020 | RAU’S IAS 60

 Economic Development
The Government has now proposed the introduction of a
seamless composite exploration-cum-mining-cum-production
regime.
New Mining Blocks: Around 500 mining blocks would be
offered through an open and transparent auction process.
DEFENCE SECTOR
The following steps have been taken to promote "Make in
India" for defence production and reduce India's import of
defence Goods.
Corporatisation of Ordnance Factory Board (OFB):
Presently, the OFB is a subordinate/attached office of the
Department of Defence Production and has 41 factories.
Since, it is a government department directly managed by the
Government, it faces number of problems:
1. Lack of functional and operational flexibility--> Almost all
the approvals related to Human resource, finance,
modernisation etc. need to be taken from government.
2. Bureaucratic delays and red-tapism--> More focus on rules
and regulations rather than meeting the production goals.
3. Low capacity to innovate and improve the efficiency.
4. Restrictions on entering into joint venture partnerships
with private sector entities etc.
Nair Committee (2000), Kelkar Committee (2005)
recommended for corporatisation of corporatisation of OFB
to do away with the above-mentioned problems.
Liberalisation of FDI norms: The FDI limit in the defence
manufacturing under automatic route will be raised from
49% to 74%.
Reducing Defence Import Bill: Government to notify a list of
defence weapons whose import would be banned. Idea here
is to boost their domestic production.
CIVIL AVIATION SECTOR
Efficient utilisation of Air Space: Currently, only 60 percent
of the Indian airspace is freely available for passenger
aircrafts and rest is controlled by military. Utilizing the rest of
the airspace will reduce flying cost of Rs 1000 crore by saving
fuel and time. The Government has stated that restrictions on
utilisation of the Indian Air Space will be eased so that civilian
flying becomes more efficient.
Airports through PPP: 6 more airports have been identified
for Operation and Maintenance on Public-Private Partnership
(PPP) basis.
FOCUS| JUNE 2020 | RAU’S IAS
Aircraft Maintenance, Repair and Overhaul (MRO): The
aircraft MRO is the overhaul, repair, inspection or
modification of an aircraft or aircraft component to keep it
operational and air worthy. The global MRO market is
estimated to be around $60 billion. However, this MRO
industry in India is still as nascent stage and accounts for only
1% of the global market. Only around 5-10 per cent of MRO
work for Indian airlines is carried out in India and most of it is
outsourced to third-party service providers outside India.
Thus, the rapidly growing aircraft fleet, growth in domestic
traffic and the increasing age of Indian aircrafts (both civil and
defence) needs well developed world-class MRO Industry in
India. Against this backdrop, the Government has laid down a
roadmap for India to become a global hub for Aircraft
Maintenance, Repair and Overhaul (MRO).
POWER SECTOR
Tariff Policy laying out the following reforms will be released:
Consumer Rights: DISCOM inefficiencies not to burden
consumers. Standards of Service and associated penalties for
DISCOMs. DISCOMs to ensure adequate power. Load-
shedding to be penalized
Promote Industry: Progressive reduction in cross subsidies.
Time bound grant of open access. Generation and
transmission project developers to be selected competitively
Sustainability of Sector: Timely payment of power
generation companies. DBT for Power subsidy. Installation of
Smart prepaid meters.
BOOSTING PRIVATE SECTOR INVESTMENT IN SOCIAL
INFRASTRUCTURE
Viability Gap Funding (VGF) Scheme: The Ministry of
Finance is presently implementing Viability Gap Funding
Scheme in order to provide financial support to the PPP
projects that are socially and economically desirable but
financially unviable on account of lower returns, long
gestation period etc. For such projects, the Ministry of
Finance provides one-time grant of up to 20% of the project
cost.
The Government or statutory entity that owns the project
may provide additional grants out of its budget up to further
20% of the project cost.
New Announcement: In order to boost Social Infrastructure,
the Government will enhance the quantum of Viability Gap
Funding (VGF) up to 30% each of Total Project Cost as VGF by
61
 Economic Development

the Centre and State/Statutory Bodies. For other sectors, VGF

existing support of 20 % each from Government of India and
States/Statutory Bodies shall continue.

SPACE SECTOR: BOOSTING PRIVATE PARTICIPATION

IN SPACE ACTIVITIES
There shall be level playing field provided to private
companies in satellites, launches and space-based services.
Predictable policy and regulatory environment to private
players will be provided. Private sector will be allowed to use
ISRO facilities and other relevant assets to improve their
capacities. Future projects for planetary exploration, outer
space travel etc shall also be open for private sector.

ATOMIC ENERGY RELATED REFORMS

Research reactor in PPP mode for production of medical
isotopes shall be established to promote welfare of humanity
through affordable treatment for cancer and other
diseases. Facilities in PPP mode to use irradiation technology
for food preservation shall also be established.
FIFTH TRANCHE- REFORMS IN
EMPLOYMENT, EDUCATION, HEALTH ETC.
The Finance Minister has come out with 7 measures for
providing employment, support to businesses, Ease of doing
business and improving access to Education and Health.
1. Increase in allocation for MGNREGA
Background: The economic impact of COVID-19 on Indian
economy is considered to be quite unprecedented. According
to the recent UN Report, the Indian economy would register a
growth rate of hardly around 1.2% in the present financial
year. The International Labour Organisation in its report has
highlighted that about 400 million people working in the
informal economy in India are at risk of falling deeper into
poverty. At the same time, the loss of livelihood opportunities
in the urban areas has forced thousands of migrants to go
back to the rural areas.
Hence, we need to unleash virtuous cycle of economic growth
and employment creation as outlined below:
Announcement:The Union Budget 2020-21 had allocated Rs
61,500 crores for the MGNREGA Programme. In order to
provide higher employment opportunities in the rural areas,
the Finance Minister has decided to allocate an additional
amount of Rs 40,000 crores for the MGNREGA.
Benefits:
• Provide employment opportunities to the returning
migrants.
• Boost demand in the rural areas.
• Money would be spent on creation of water conservation
assets which would be helpful during the monsoon
season.
Analysis of the decision: The Union Budget 2020-21 had
slashed the budgetary allocation for the MGNREGA
programme by Rs 9500 crore from Rs 71,000 crore in 2019-20
to Rs 61, 500 crores. This was done in spite of the fact that
the unemployment had increased to 45-year high of 6.1% in
2017-18.
Hence, the recent additional allocation of Rs 40,000 crores by
the Government is in the right direction. Going forward, the
Government must focus on proper implementation of this
programme such as timely payment of wages, creation of
durable assets etc. This would translate into better outcomes
on the rural economy.
2. Health Reforms & Initiatives
Background: The COVID-19 has exposed fundamental
weakness in our healthcare infrastructure:
1. Low Government expenditure on Health: 1.5% of GDP (The
National Health Policy, 2017 mandates the Government
expenditure should increase to 2.5% by the end of 2025).

FOCUS| JUNE 2020 | RAU’S IAS 62

 Economic Development
2. Lack of dedicated hospitals to deal with COVID-19 like
pandemics.
3. Absence of dedicated labs for testing at the block level and
in rural areas.
Announcement: As stated before, we need to turn this crisis
into opportunity, learn from our past mistakes and be better
prepared to deal with such situations in future. Accordingly,
the Finance Minister has outlined the following Health
Reforms and Initiatives:
Increased investments in Public Health
• Public Expenditure on Health will be increased. (This was
already provided under the National Health Policy 2017).
• Investments in grass root health institutions: Ramp up
Health and Wellness Centres in rural and urban areas.
Note: Under the Ayushman Bharat Scheme, the existing 1.5
lakh Sub Health Centres and Primary Health Centres being
transformed into Health and Wellness Centres. The HWCs are
to provide preventive, promotive, rehabilitative and curative
care for an expanded range of services encompassing
reproductive and child health services, communicable
diseases, non-communicable diseases, palliative care and
elderly care etc.
Preparing India for any future pandemics
• Setting up of Infectious Diseases Hospital Blocks in all
districts to deal with COVID-19 like pandemics in future.
• Strengthening of lab network and surveillance by setting
up integrated Public Health Labs in all districts & block
level Labs & Public Health Units to manage pandemics.
• Setting up of National Institutional Platform for One health
under ICMR. This platform seeks to bring together various
Indian institutions involved in the R&D of infectious
diseases such as COVID-19. This platform seeks to develop
core capacity to deliver the One health Approach to
prevent, detect, and respond to infectious disease
outbreaks in animals and humans.
National Digital Health Mission:
Background: The National Health Policy 2017 emphasises
that lofty health ideals such as Citizen centricity, quality of
care, better access, universal health coverage, and
inclusiveness could be achieved by leveraging the power of
the digital technologies. In order to give shape to such an
endeavour, the Ministry of Health and Family welfare
appointed a committee under the leadership of
FOCUS| JUNE 2020 | RAU’S IAS
Satyanarayana to create a framework for leveraging digital
technology in the field of health.
The committee has recommended for the adoption of
National Digital Health Blueprint- a document which would
act as reference for the creation of National Digital Health
Ecosystem (NDHE). It had also recommended the
Government to set up National Digital Health Mission
(NDHM) to implement the National Digital Health Blueprint.
New announcement: The Government has accepted the
recommendations of the committee and has decided to
implement the National Digital Health Blueprint under the
National Digital Health Mission.
Analysis of the decision: Some of the measures announced
by the Government such as National Digital Health Mission,
setting up of district level Infectious Diseases Hospitals,
ramping up of diagnostic labs are noteworthy. However,
these initiatives would be successful only when the private
sector entities and state governments are willing to come
forward. For example, diagnostic labs in the rural areas
would be set up by the private sector only when the
Government comes out with attractive incentives.
Similarly, Health is a subject under the state list and hence
ultimately, the state Governments would have to take
responsibility for ramping up investments in healthcare
infrastructure.
3. Technology Driven Education with Equity
post-COVID
Background: Amidst the nationwide lockdown, schools and
universities are depending on the online modes of teaching
in order to maintain continuity of education. Hence, this gives
us an opportunity to deploy new tools to make education
delivery meaningful to students. It is a chance for us to make
our education system more efficient and productive by
leveraging digital technology.
New Announcement:PM eVIDYA programme for multi-
mode access to digital/online education to be launched
immediately. It would consist of:
• DIKSHA for school education in states/UTs; e-content and
QR coded Energized Textbooks for all grades (one nation,
one digital platform).
• One earmarked TV channel per class from 1 to 12 (one
class, one channel)
• Extensive use of Radio, Community radio and Podcasts
63
 Economic Development
• Special e-content for visually and hearing impaired.
• Top 100 universities will be permitted to automatically
start online courses by 30th May, 2020.
Note:National Teacher Platform (NTP) known as "DIKSHA"
is an initiative of the Ministry of Human Resource
Development. It is a state-of-the-art platform built to host
Open Educational Resources (OER) and tools for Teachers in
Schools.
• Manodarpan- An initiative for psychosocial support of
students, teachers and families for mental health and
emotional wellbeing to be launched immediately.
• National Foundational Literacy and Numeracy Mission for
ensuring that every child attains Learning levels and
outcomes in grade 5 by 2025 will be launched by
December 2020.
Analysis of the decision:Undoubtedly, these decisions of the
government should be welcomed. However, we need to
ensure that these initiatives do not lead to disparities in the
educational outcomes due to digital divide. According to India
Internet Report 2019, only 36% of India’s population have
access to Internet. Hence, Going forward, we need to
leverage the Digital India Programme to bridge the digital
divide and ensure equitable and inclusive outcomes for
digital learning.
4. Ease of Doing Business through IBC related
measures
• Background: The supply side disruption caused by the
COVID-19 has made it difficult for the MSMEs to repay
their loans. There is a genuine apprehension that such
MSMEs may default on the loan repayment and hence fall
under the resolution process as provided under the
Insolvency and Bankruptcy code (IBC).
• Presently, the threshold for invoking IBC for the corporate
entities is Rs 1 lakh i.e. if a company defaults on the loan
repayment of Rs 1 lakh and above, then it would
automatically come under the resolution process of the
IBC. (For individuals, the threshold is Rs 1000).
• New Announcement:
• Increase in threshold for invoking IBC for the Corporate:
Since, the COVID-19 pandemic has made it difficult for the
MSMEs to repay their loans, the Government has decided
to increase the threshold for invoking IBC for the
corporate entities from Rs 1 lakh to Rs 1 crore. This would
FOCUS| JUNE 2020 | RAU’S IAS
provide relief to the MSME sector. The increase in the
threshold limit was put into effect in March 2020 and the
same was reiterated by the Finance Minister as part of 5th
tranche of Economic measures.
• Special insolvency resolution framework for MSMEs:
Section 240A of the IBC empowers the central
Government to come up with a special insolvency
resolution for the MSMEs. Accordingly, the Finance
Minister has now announced that the Government would
soon come up with a notification for the special insolvency
framework for MSMEs.
Halt on IBC Proceedings: Suspension of fresh initiation of
insolvency proceedings up to one year depending upon the
pandemic situation.
5. Decriminalisation of Companies Act defaults
Background:
• The Companies Act, 2013 was enacted to consolidate and
amend the law relating to companies. However, violations
of number of provisions under this law are treated as
criminal offences and hence considered to be constraint
on ease of doing business.
• Accordingly, Company Law Committee (CLC) appointed by
the Ministry of Corporate affairs has given number of
recommendations to decriminalise various provisions of
the Companies Act to improve the ease of doing business.
• Accordingly, the Government had introduced Companies
(Amendment) Bill, 2020 before the Lok Sabha in March
2020 to decriminalise number of provisions.
New Announcement: TheCompanies (Amendment) Bill,
2020 was not taken up for discussion in the Parliament due
to COVID-19. The Government would go for ordinance route
in order to give effect to the amendments to the Companies
Act.
6. Direct listing of Indian Companies in Foreign
Jurisdictions
Background:The existing legal framework in India does
not permit the direct listing of equity shares of
companies incorporated in India on foreign stock
exchanges. Similarly, companies incorporated outside India
cannot directly list their equity shares on Indian stock
exchanges.
64
 Economic Development
The only available routes for companies incorporated in
India to access the equity Capital markets of foreign
jurisdictions is through the American Depository Receipts
(“ADR”) and Global Depository Receipts (“GDR”) regime.
Companies incorporated in India can list their debt securities
on foreign stock exchanges directly through the masala
bonds and/or foreign currency convertible bond
(“FCCB”)/foreign currency exchangeable bonds (“FCEB”)
framework.
On the other hand, companies incorporated outside India
can access the Indian capital markets only through the
Indian Depository Receipts (“IDR”) framework
UNDERSTANDING ADR/GDR/IDR
The ADRs/GDRs are the financial instruments through which
the Indian Companies can raise capital from the equity
markets based in other countries. Indian companies are
prohibited from directly issuing rupee denominated
securities which can be listed abroad on foreign stock
exchanges. Thus, the equity shares of an Indian company
cannot be directly listed on, say, the New York Stock
Exchange. To overcome this problem, Indian companies
adopt the ADR/ GDR route.
An ADR is quoted in US dollars and one ADR represents a
certain number of equity shares in the Indian company.
The foreign investors can then directly buy and sell the ADRs
as if they were the shares of a foreign corporation.
While ADRs are specific to US i.e. they are issued by the
Indian companies in US Market. The GDRs are issued by the
Indian companies in the other countries.
Similarly, the Indian Depository Receipts (IDRs) are issued by
the foreign companies in India to raise capital from the indian
investors.
In 2018, a committee appointed by SEBI had recommended
that Indian companies should be allowed to list their
FOCUS| JUNE 2020 | RAU’S IAS
securities directly in the stock markets of the other countries.
New Announcement:The Government would soon come out
with the necessary regulatory framework to enable the Indian
companies to list their securities directly on the stock markets
in other countries. It will enable the Indian companies to raise
overseas capital directly.
7. Public Sector Enterprise Policy for a New,
Self-reliant India
New Announcement: Government will announce a Public
Sector Enterprise Policy. The broad contours of the policy is
as given under:
• All the sectors would be opened up for private sector. The
Public sector enterprises would play important role in
certain strategic sectors only.
• List of strategic sectors requiring presence of PSEs in
public interest will be notified. In such strategic sectors, at
least one enterprise will remain in the public sector but
private sector will also be allowed
• To minimise wasteful administrative costs, number of
public sector enterprises in strategic sectors will ordinarily
be only one to four; others will be privatised/ merged/
brought under holding companies.
• In other non-strategic sectors, PSEs will be privatized.
8. Support to State Governments
Background:
• The Constitution of India confers the power of borrowing
on both the Centre (Article 292) and the States (Article
293). However, the centre and states are not placed on
equal footing with respect to borrowing powers.
• The Central Government has unrestricted powers of
borrowing in India and from abroad subject only to such
limits as may be fixed by the Parliament by law (Article
292). On the contrary, the borrowing powers of the States
are limited (Article 293).
• They have no power to raise loans outside India. Within
India, a State may raise loans from the Government of
India or float public loans. However, a State cannot raise a
public loan without the consent of the Government of
India if there is still outstanding any part of a loan which
has been advanced to it by the Government of India.
• Since all the State Governments have been and continue
to be indebted to the Central Government, the Central
65
 Economic Development
Government effectively controls the amount of public debt
raised by State Governments.
• This constitutional mechanism has been used by the
Central Government to ensure that State Governments do
not exceed annual borrowing limits that are set at the
beginning of every year. Presently, these limits are set in
accordance with a formula that ensures that the fiscal
deficit of no State exceeds 3% of Gross State Domestic
Product.
New Announcement:
• The finances of the States have been adversely affected
due to pandemic. Accordingly, the Centre has decided to
increase the borrowing limit of the States from 3% to 5%
for 2020-21. This will give States extra resources of Rs. 4.28
lakh crores.
• However, the increase in the borrowing limit of the states
is conditional wherein the state governments are required
to bring in reforms to avail the enhanced limit. Some of
these reform measures are: universalisation of ‘One
Nation One Ration card’, Ease of Doing Business, Reforms
in Power distribution and Improvement in Urban local
body revenues
ECONOMIC STIMULUS PACKAGE- THE
GOOD, BAD AND UGLY
CONCERNS WITH THE ECONOMIC PACKAGE
Economic Package - More on monetary side rather than
Fiscal Policy side
The Government has announced the total economic stimulus
package of Rs 20 lakh crores. However, some of the
economists have pointed out that the total fiscal support
extended by the Government amounts to mere Rs 1 lakh
crores (less than 1% of GDP).
The huge difference between the benefits and the actual cost
is on account of number of reasons:
1. Most of the support extended by the Government is in
form of bank guarantees on the loans extended by the
Banks and hence the fiscal support of the Government is
lower than the economic package. For example, the
Government has announced collateral free loans of Rs 3
lakh crores to MSMEs wherein the Government would act
as guarantor. So, the overall fiscal support is not Rs 3 lakh
crores but depends upon the extent of loan defaults.
FOCUS| JUNE 2020 | RAU’S IAS
2. The Government's package of Rs 20 lakh crore also
includes the Rs 8 lakh crores liquidity injection measures
introduced by the RBI. These measures do not entail any
fiscal support of the Government.
3. Some of the announcements made by the Government
simply include the frontloading of budget announcements.
Case in point is the Rs 17,000 crores under PM-KISAN
Scheme, which in anyway was required to be spent for the
financial year.
Why is it concerned to be a problem?
According to an assessment by the National Institute of Public
Finance and Policy (NIPFP), the way things are going, India’s
GVA will contract by a whopping 13% this year under the Base
case scenario. The Base case scenario refers to a scenario
where governments (both Centre and states) bring down
their expenditure in line with their falling revenues to
maintain their fiscal deficit target. This report has
highlighted that only if the government spends 3% of the GDP
over and above what it promised to do in the Union Budget
2020-21, will the economic growth stay in the positive
territory or else the Indian economy will contract. Hence, to
lift GDP growth, the governments would have to spend more
and counteract the natural downward spiral of the economy.
Economic Package - More on Supply Side rather than
Demand side: The main pillar of the Economic package rests
on boosting the supply side of the economy i.e. boosting the
production--> Creation of employment opportunities-->
increase in income levels--> Increase in demand--> Increase
in the GDP growth. (Indirectly boost demand in economy).
Why is it concerned to be a problem? The consumption
expenditure accounts for 60% of India's GDP and hence it is
considered to be major driver of India's GDP. Hence, some of
the economists have pointed out that boosting consumption
expenditure by higher government expenditure in creation of
infrastructure, reducing the tax rates, direct cash transfers to
the poor and vulnerable sections etc.
The other side of the Debate- A Pragmatic and Prudent
approach of Government
1. According to some of the estimates, the Banks within India
are sitting on surplus cash of around Rs 8 lakh crores. The
sovereign guarantee extended by the Government would
nudge the Banks to give their surplus cash in the form of
loans to these sectors. Hence, a major part of the first set
of economic package has been geared towards the
66
 Economic Development

sovereign guarantee to be extended to the Bank loans

#Monetary Policy
given to MSMEs, NBFCs and so on. Now, this is considered
to be a smart move by the Government.

On one hand, it would lead to greater credit creation

within the economy leading to improvement in supply,
increase in employment creation and overall push to
demand for Goods. On the other hand, it would enable the
Government to efficiently manage its Fiscal deficit.
2. Many of the economists have pointed out that the credit
provided under the package is not a stimulus. However,
this can be counter-argued in two ways. First, the credit
becomes a stimulus here because it is provided without
any collateral wherein the government is acting as
guarantor. Second, in absence of the support extended by
the Government, the credit would not have improved.
3. The Government has done well to increase the allocation
to MGNREGA programme by an additional Rs 40,000
crores which would go a long way in boosting employment
opportunities and demand in rural areas.
4. The Government has converted the COVID Crisis into
opportunity by ushering in long-pending structural
reforms in the agricultural marketing, Coal Mining, Civil
Aviation etc. These Structural reforms are
noteworthy and help India to come back on higher GDP
growth trajectory.
IN NEWS
The RBI needs to use innovative policy instruments to deal with
the economic situation caused by COVID-19. In this regard, a
number of economists have highlighted that the time is ripe for
the RBI to introduce the concept of "Standing Deposit Facility
(SDF)" to better manage the present liquidity condition. So, what
exactly is SDF and how does it work??
UNDERSTANDING REVERSE REPO
The Reverse Repo is the rate at which the RBI absorbs
liquidity from the economy. Under this route, the Banks can
park their surplus funds with the RBI and earn an interest
which is equal to Reverse Repo. However, when the Banks
park their funds under this route, the RBI would be required
to give G-Secs as collateral to the Banks. So, the problem with
the Reverse Repo route is that, the RBI has to provide G-Secs
every time the banks provide funds. During times such as
recent Demonetization, the RBI may not have adequate G-
Secs to absorb huge amount of liquidity from the economy.
Hence, to handle such kind of situations, the Urjit Patel
quite
Committee had recommended for the introduction of new
tool known as "Standing Deposit Facility".

STANDING DEPOSIT
FACILITY (SDF)

FOCUS| JUNE 2020 | RAU’S IAS 67

 Economic Development

NEED TO INTRODUCE SDF IN INDIA

UNDERSTANDING STANDING DEPOSIT FACILITY
(SDF)
The SDF works similar to Reverse Repo. However, SDF would
be different from Reverse Repo in the following ways:
1. Under the SDF route, the RBI would not be required to
provide G-Secs as collateral to the Banks. Hence, it would
enable RBI to absorb huge amount of liquidity from the
economy without G-Secs acting as collateral.
In order to counter the economic slowdown, the RBI has
continuously been reducing the Repo Rate. However, the risk-
averse banks have been reluctant to lend loans. Instead, the
liquidity availed by Banks from the RBI is in turn parked back
with the Central bank through the Reverse Repo route. On an
average, the banks have parked around Rs 8 lakh crores with
the RBI through Reverse Repo route. The lack of availability of
adequate amount of G-Secs would make it difficult for the RBI
to continue with the Reverse Repo route. Hence, the
introduction of SDF would help the RBI in better management
of the present liquidity situation.
Apart from that, the introduction of SDF would enable the RBI
to absorb excess liquidity at lower rates and hence bring
down the interest rate structure. This will also reduce the
Interest cost of the RBI.

2. The SDF would be lower than Reverse Repo.

RBI's SECOND BOOSTER
3. Reverse Repo exercise is carried out as per the discretion
of the RBI depending upon market conditions. However, DOSE
the SDF would enable the Banks to keep their surplus
funds with the RBI at their own discretion. #Monetary Policy
The introduction of the standing deposit facility required
amendment to the RBI Act. In this regard, the Finance Act
(2018) introduced as part of Budget amended the RBI Act,
1934 to enable the RBI to use the new tool of SDF. IN NEWS
Subsequently, the liquidity management framework adopted
The RBI has recently announced its second set of booster dose to
by the RBI in Feb 2020 has decided to use SDF in India.
deal with the economic woes caused by COVID-19. Broadly, the
However, the RBI has so far not notified the operational
details.

FOCUS| JUNE 2020 | RAU’S IAS 68

 Economic Development
following components are included in the second reform package
announced by RBI:
• Decrease in the Policy rates to boost credit creation.
• Measures to Improve the Functioning of Markets
• Measures to Support Exports and Imports
• Measures to Ease Financial Stress
• Measures to ease financial constraints faced by State
Governments
DECREASE IN THE POLICY RATES TO BOOST CREDIT
CREATION
The Repo rate has been reduced by 40 basis points from
4.40% to 4%. Accordingly, the marginal standing facility (MSF)
rate and the Bank Rate stand reduced to 4.25 per cent from
4.65 per cent. The reverse repo rate under the LAF stands
reduced to 3.35 per cent from 3.75 per cent. The MPC also
decided to continue with the accommodative policy stance.
MEASURES TO IMPROVE THE FUNCTIONING OF
MARKETS
1. Refinancing Facility for Small Industries Development
Bank of India (SIDBI)
The SIDBI plays an important role in meeting the long-term
funding requirements of small industries. However, the
COVID-19 pandemic has made it difficult for SIDBI to raise
finances from the market. Hence, earlier, the RBI had
announced special refinance facility of Rs 15,000 crore to
SIDBI for on-lending/refinancing. Advances under this facility
were provided at the RBI’s policy repo rate for a period of 90
days. Now, the RBI has decided to roll over the facility at the
end of the 90th day for another period of 90 days. (i.e. now
SIDBI would get additional 90 days to repay back the loans)
2. Investments by Foreign Portfolio Investors (FPIs)
under the Voluntary Retention Route (VRR)
Understanding Voluntary Retention Route (VRR): In March
2019, the Reserve Bank had introduced a separate channel,
called the ‘Voluntary Retention Route’ (VRR). Such a route
enables FPIs to invest in debt markets in India. Broadly,
investments through the Route is free from the macro-
prudential and other regulatory norms applicable to FPI
investments in debt markets. However, for availing such a
benefit, the FPIs should voluntary commit to retain a required
minimum percentage of their investments in India for a
period.
FOCUS| JUNE 2020 | RAU’S IAS
RBI'S REGULATIONS ON VRR:
• Any FPI registered with SEBI is eligible to participate
through this Route. Participation through this Route shall
be voluntary.
• FPIs are eligible to invest in any Government Securities
i.e., Central Government dated Securities (G-Secs),
Treasury Bills (T-bills) as well as State Development Loans
(SDLs). They can also investment in corporate bonds.
• RBI imposes limit on investment under this Route.
Presently, it is Rs 1.5 lakh crores.
• Minimum retention period for the investment is 3 years.
• Minimum percentage of Investment which has to retained
is 75%.
• Allocation of investment amount to FPIs under this route
shall be made on tap or through auctions.
• FPIs that wish to liquidate their investments under the
Route prior to the end of the retention period may do so
by selling their investments to another FPIs. However, the
FPI buying such investment shall abide by all the terms
and conditions applicable under the Route.
Recent Changes: According to the RBI's guidelines, the
investments under this route is allocated to the FPIs through
the auction. The successful allottees are required to invest
25% of their allocated investment amount within one month
and the remaining 75% amount within three months from
the date of allotment.
In view of the disruptions caused by COVID-19, it has been
decided to allow FPIs that have been allotted investment
limits, between January 24, 2020 and April 30, 2020, an
additional time of three months to invest 75% of their
allocated amount.
MEASURES TO SUPPORT EXPORTS AND IMPORTS
• For the benefit of exporters, the maximum permissible
credit period (duration of loans) for the exporters was
increased from 12 months to 15 months.
• Extension of line of Credit of Rs 15,000 crores to EXIM
Bank.
• For the benefit of importers, the maximum permissible
time limit for completion of remittances (making the
payments for imports) has been increased from 6 months
to 12 months.
69
 Economic Development

MEASURES TO EASE FINANCIAL STRESS states. The fund is maintained outside the consolidated fund
of the states and the public account and is used only for the
Moratorium on Term Loan Instalments and Working
redemption of loans. The state governments could contribute
Capital Loans: In March 2020, the RBI had permitted all
1 to 3 per cent of the outstanding market loans each year to
commercial banks (including regional rural banks, small
the Fund.
finance banks and local area banks), co-operative banks, all-
India Financial Institutions, and NBFCs (including housing This fund is administered by the RBI. So, the money
finance companies and micro-finance institutions) to allow a deposited by the States in the Consolidated Sinking Fund
moratorium of three months on payment of instalments of all (CSF) is in turn invested by the RBI in various dated securities
term loans outstanding as on March 1, 2020. issued by Central Government. So, even the Interest earned
on such investments can be used for repaying the debt
In the second package, now the RBI has now decided to
obligations of the state Governments.
permit lending institutions to extend the moratorium on term
loan instalments by another three months, i.e., from June 1, The 12th finance Commission had recommended that all the
2020 to August 31, 2020. states should have to set up Consolidated Sinking Fund.
However, as of now, it is not mandatory for the State
Further, the RBI has also allowed the banks to defer the
Governments to set up the Fund. Presently, around 23 states
recovery of the interest on the working capital loans given to
in India have parked around Rs 1.3 lakh crores with the RBI in
companies for an additional period of 3 months
the form of Consolidated Sinking fund.
Payment of Interest on Working Capital Facilities for the
Recent guidelines: The RBI has decided to relax the rules
Deferment Period: In order to ameliorate the difficulties
regarding the withdrawal of money by the States from the
faced by borrowers in repaying the accumulated interest for
CSF. This measure will enable the states to meet about 45 per
the deferment period on working capital facilities in one shot,
cent of the redemptions of their market borrowings, due in
lending institutions are permitted to convert the accumulated
2020-21.
interest on working capital facilities over the deferment
period (up to August 31, 2020) into a funded interest term
loan.

MEASURES TO EASE FINANCIAL CONSTRAINTS

FACED BY STATE GOVERNMENTS
Consolidated Sinking Fund (CSF) of State Governments -
Relaxation of Guidelines
What is Sinking Fund? The Sinking Fund is a separate
dedicated fund that may be set up in order to meet the debt
repayment obligations on bonds. For example: - Let's say a
company issues Bond worth Rs 1000 crores with a maturity
period of 10 years. Now, in order to manage its debt
efficiently, the Company may set up separate dedicated
sinking fund. Every year, the company may decide to transfer
Rs 100 crores to this fund for the next 10 years. This would
enable the company to fulfil its debt obligations of Rs 1000
crores when the Bond matures after 10 years.
Consolidated Sinking Fund (CSF): Just like how the
BAD BANK-PROS AND
CONS
#Banking
IN NEWS
The twin balance sheet problem in India has led to decline in the
credit creation, investment rates and consequent slowdown of
the Indian Economy. The Gross NPAs of the scheduled Banks
stands at around 9.3%, which is considered to be the worst NPA
among the emerging economies. So, how do we solve the
problem of NPAs?

companies borrow money from market, even the State
Governments also borrow money. So, even the State
Governments may set up Consolidated Sinking fund to
efficiently manage their debt. In this regard, the RBI had
introduced Consolidated Sinking Fund (CSF) as a scheme for
Recently, the Indian Banks Association (IBA) proposed the
Government to set up a Bad Bank. Prior to this, the Economic
Survey 2016-17 had recommended the Government to set up
centralised Public Sector Asset Rehabilitation Agency (PARA) to

FOCUS| JUNE 2020 | RAU’S IAS 70

 Economic Development

clear the NPA mess. So, let us understand about the proposed Bank can undertake restructuring of such loans or undertake
Bad Bank. any other mechanism to recover the NPA amount. As far as
Bank XYZ is concerned, it is at least able to get Rs 800 crores. (
UNDERSTANDING THE TWIN BALANCE SHEET
In the absence of Bad Bank, the Bank XYZ would not even
PROBLEM (TBS) AND ITS IMPACT
recovered that much amount).
The Twin Balance sheet problem highlights that the balance
sheets of the banks as well as companies are in bad shape. PROS AND CONS OF BAD BANK
While, the balance sheet of the Banks is dominated by the
higher NPAs, while the balance sheet of the companies is Arguments in Favour Arguments against
dominated by higher debt levels and their inability to repay
back loans. Improvement in the balance The Bad Bank stands ready to
Sheet of the Banks due to buy NPAs from the Banks.
Such a TBS problem puts the economy into vicious economic
decrease in the NPAs. Hence, this would discourage
cycle as seen below. the Banks from exercising due
caution in lending loans

Unlocking of the capital that According to Ex-RBI Governor

was earlier locked up as Raghuram Rajan, the Setting
provisioning requirements. up of Bad Bank would merely
This would lead to increase lead to transfer of Assets from
in the credit creation. one entity to another

Enable the Bank to focus on The NPAs of Banks has

their core areas of accepting
deposits and lending loans.
The function of recovery of
bad loans gets transferred
to the specialist Bad Bank.
CONCEPT OF BAD BANK
The Bad Bank is a bank which takes over the NPAs of the
other banks and hence leads to improvement in their
Most of the NPAs are
financial position. For example, let’s say a Bank XYZ has total
concentrated in the larger
NPAs of around Rs 1000 crores. In accordance with RBI's borrowers who have taken
norms, the Bank here would be required to set aside certain loans from multiple banks.
percentage of its profits to cover the loss arising from such Presently, in case of default,
NPAs. This is referred to as Provisioning norms. Hence, the such Banks come together
increase in the NPAs accompanied by higher provisioning to form Committee of
Creditors (CoC) and
requirements would severely constraint ability of the Bank to
formulate a resolution plan
lend loans and hence affects its overall financial position.
to recover the NPAs.
That is where, a Bad Bank comes into picture.
However, such a
In this case, the Bad bank can take over NPAs worth Rs 1000 mechanism is presently
crores from Bank XYZ at say Rs 800 crores. Now, the Bad facing problem of
increased on account of
number of reasons such as
Political interference in
working of Banks, Increase in
wilful defaulters, poor
recovery process etc. Hence,
Bad Bank does not solve the
core underlying reasons
which led to increase in NPAs
in the first instance. The Bad
Bank is thus considered to be
superficial solution to the
underlying problem of NPAs.
The Bad Bank set up by
Government may incur
significant losses. Hence,
some of the economists have
pointed out as to why the
taxpayers money should be
used to bail out the Banks for
their bad lending decision

FOCUS| JUNE 2020 | RAU’S IAS 71

 Economic Development

coordination and delays in

the recovery of NPAs.
DOLLAR SWAP LINE
Setting up of Bad Bank
would enable the multiple
#Finance
Banks to transfer their NPAs
simultaneously to Bad Bank
and improve their balance IN NEWS
sheets
Recently, there has been large-scale outflow of FPIs from India
Way Forward: The Economic Survey 2015-16 emphasized leading to shortage of dollars and consequently record fall in the
that addressing the stressed assets problem would require 4 value of Rupee vis-a-vis dollars. Hence, in order to address the
R’s: Reform, Recognition, Recapitalization, and current volatility in the exchange rate and to make available
Resolution. The setting up of Bad Bank without focussing on dollars in the domestic market, India is in discussion with US for
these 4 R's would mean that the fundamental problems that Dollar Swap line. India has already entered into currency swap
led to NPAs in first place continue to remain. Hence, the agreements with number of countries such as Japan, UAE, SAARC
Government has to first focus on 4 R's before setting up Bad countries etc. So, let us understand as to how the Currency Swap
bank. agreement actually works?

PROPOSED DOLLAR SWAP LINE

The Currency swap agreement between India and USA would
work in the following manner (Let's say, the Swap is for $ 100
applicable for 3 months)
1. First Leg: The RBI would provide $100 worth Indian
Rupees to US Fed Bank at prevailing exchange rate. In
return, the Fed Bank would provide equivalent value of
dollars ($ 100) to the RBI.
fixed in the first leg. Hence, there is no exchange rate risk
involved in the Currency Swap agreement.
Let' say, during the second leg of transaction (after 3
months), the exchange rate may have changed to $ 1 = Rs
80 or $ 1 = Rs 60, but still the swap takes place at the
exchange rate used in the first leg of the transaction. Thus,
the swap agreement prevents both the Central Banks from

Let’s say the prevailing exchange rate is $ 1 = Rs 70. So, any kind of exchange rate risk.

here RBI would provide Rs 7000 to Fed Bank and in return
it would get $ 100.
2. Second Leg (After 3 months): US Fed Bank would return
Rs 7000 and take back $ 100 from the RBI. Now, this
transaction takes place at the exchange rate which was
HOW WOULD IT BENEFIT INDIA?
• The dollars availed under this route would act as second
line of defence after the Forex Reserves to deal with the
volatility.
• Reduce the speculation in the forex market and provide
stability to the exchange rate.

FOCUS| JUNE 2020 | RAU’S IAS 72

 Economic Development
SOCIAL STOCK
EXCHANGES
#Finance
IN NEWS
WHAT IS SOCIAL STOCK EXCHANGE (SSE)?
India needs huge amount of capital for social sector
expenditure such as Education, Health, Sanitation, Housing
etc. Usually, the investors are reluctant to invest in these
sectors due to poor financial returns. However, the
investment in these sectors has huge socio-economic returns
in terms of improvement of standard of living, poverty
alleviation, women empowerment etc.
Hence, in order to increase investment in the social sector
expenditure, the Government has proposed Social Stock
Exchange (SSE). It enables various societies, trusts, not-for-
profit companies to raise capital for undertaking expenditure
in social sectors.
For example, Brazil's Socio-environmental Impact Exchange
(BVSA) was the first SSE. Some of the other SSEs across the
FOCUS| JUNE 2020 | RAU’S IAS
In the Union Budget 2020-21, the Finance Minister had proposed
to establish Electronic platform- Social Stock Exchange (SSE) to
enable social enterprises such as NGOs to raise capital to meet
their social cause.
Accordingly, the Capital Market regulator, SEBI had appointed a
task force under the Chairmanship of Ishaat Hussain to
recommend the various modalities related to the working of
Social Stock Exchanges. The committee has recently submitted its
recommendations as to how SSE should work in India. Let us
understand the highlights of the recommendations.
world include- UK Social Stock Exchange, South Africa's SASIX,
Canada's Social Venture Connexion.
RATIONALE FOR SETTING UP OF SSE IN INDIA
• Conventional capital focusses more on financial returns
and not on socio-economic returns and hence does not
invest in social sectors.
• India has over 3 million non-profit organizations. However,
they face financial constraints. Hence, the SSE would
enable the non-profit organizations to raise capital for
social sector expenditure and thus enable India to meet
various Sustainable Development Goals (SDGs)
73
 Economic Development

• Provides a great opportunity for donors, philanthropic • Helps to rebuild livelihoods affected by the COVID-19
foundations, companies with CSR obligations to contribute pandemic.
to socio-economic cause.

HOW CAN THE ORGANIZATIONS RAISE CAPITAL THROUGH SSE?

BROAD PRESENT ROUTE FOR

SUB-CATEGORIES PROPOSED MODE FOR RAISING CAPITAL
CATEGORIES AVAILING FUNDING

Non-Profit • Societies • Individual donations Zero Coupon Zero Principal Bonds: These
Organizations • Trusts • Contributions made under bonds do not carry any interest. The NPOs which
(NPOs) the Foreign Contribution avail funding through the issuance of such bonds
(Regulation) Act need not repay back. Well suited to investors who
are looking to create social impact but do not
wish to have their funds returned to them.
• CSR grants
• Grants from government Social Venture Fund: Presently, it is Category - 1
(Not allowed to issue shares Alternate investment fund registered with SEBI.
or Bonds) Mobilises capital from different investors to make
investment in social sectors. CSR funds can be
deployed for Social Venture Fund.

Mutual Fund: Operate as a standard Mutual

Fund. However, the returns generated are
channelled towards the financing of NPOs. The
returns will be considered as donations made by
the investors to NPOs.

Section 8 Promotion of Social Allowed to issue shares and Enable them to issue Zero Coupon Zero Principal
Companies Welfare, Charity, bonds. Bonds.
(Companies set up religion, art, science, However, these companies SEBI to work out appropriate regulatory
under Section 8 of Education etc. have failed to attract investors framework to enable section 8 companies to
Companies Act for due to their inability to provide raise capital.
charitable and non- financial returns to investors.
profit objectives)

For-Profit Companies Shares and Bonds SEBI would enable such companies to directly list
Organizations registered under the their shares and bonds on the SSE platform
Companies Act and
willing to invest in
Social Sectors.

OTHER IMPORTANT RECOMMENDATIONS: existing infrastructure and client relationships of the

• The SSE can be housed within the existing stock exchange
such as the Bombay Stock Exchange (BSE) and/or National
Stock Exchange (NSE). This will help the SSE leverage the
exchanges.
• Currently, there are no appropriate financial reporting
standards for NPOs (except Section 8 companies). Hence,
there is a need to develop reporting standards.

FOCUS| JUNE 2020 | RAU’S IAS 74

 Economic Development

• Allow funding to NPOs on SSE to count towards CSR interest rates and hence attractive returns to the investors.
commitments of companies But at the same time, being low investment grade, they are

• Provide tax benefits to NPOs and donors to increase considered to be riskier ( greater probability of default on

investment in social sector. For example, the investors repayment of such instruments). Further, there is no lock-

could be exempted from paying Capital gains Tax (CGT) in period for investment in such funds i.e. the investors

and Securities Transaction tax (STT) for transactions done can sell off their MF units anytime and redeem their

on SSE platform. money.

CRISIS IN MUTUAL FUND

COMPANIES
#Finance

IN NEWS
Recently, Franklin Templeton Mutual Fund decided to close its 6
Mutual Fund Schemes. All of these mutual funds belonged to the
category of Credit Risk Mutual Funds. The combined assets of
these funds was over Rs 28,000 crores. Such a decision has jolted
the entire Mutual fund Industry and experts have pointed out
that it may have significant impact on the entire financial sector.

Against this backdrop, the RBI has recently decided to open

Special liquidity facility for mutual funds (SLF-MF). WHAT DOES CLOSURE OF 6 MUTUAL FUND SCHEMES

UNDERSTANDING WORKING OF MUTUAL FUND MEAN FOR INVESTORS?

COMPANIES
The Mutual Fund companies pool in money from the
investors and then invest the money in different financial
instruments such as Shares, Bonds, Debentures etc. The
profits earned from such investments are distributed among
the investors. The Mutual Companies charge
management fee from the investors for managing their
portfolio.
WHAT’S THE PRESENT CRISIS IN THE FRANKLIN
TEMPLETON?
• The present crisis is typically over a category of Mutual
Funds (MF) known as Credit Risk Funds operated by the
Franklin Templeton. The Franklin Templeton operated 6
such MF schemes.
• These MFs typically pool in money from the investors and
invest in low-investment grade Bonds and Commercial
papers. Being low investment grade, they fetch higher
• The closure of this scheme would mean that the Investors
would not be able to sell off their Mutual Fund units to the
Franklin Templeton. So, the investors who have sold off
their MF units prior to the closure have already got back
their money. However, the existing investors who
continued to hold on to the MF units will not be able to sell
the
them.
• The money would be returned back to the existing
investors as and when the financial position of the Franklin
Templeton company improves.
RBI’S RS 50,000 CRORES SPECIAL LIQUIDITY FACILITY
FOR MUTUAL FUNDS (SLF-MF)
Under the Special Liquidity facility for Mutual Funds (SLF-MF),
the Banks can avail loans from the RBI through the Repo
Route. The loans availed by the Banks can then be injected
into the Mutual fund companies through 3 routes as
highlighted below:

FOCUS| JUNE 2020 | RAU’S IAS 75

 Economic Development
CHINA LAUNCHES NEW
DIGITAL CURRENCY
#Banking
IN NEWS
The launch of Digital currency "Libra" by privately owned firm
"Facebook" has raised concerns among the Central Banks across
the World. They are quite worried that the launch of
cryptocurrencies by large number of private sector entities would
pose a threat to the existing paper-based currencies and may
have an adverse impact on the monetary stability. Accordingly, a
number of Central banks across the World have been
experimenting with the idea of issuing their own digital Currency
i.e. Central Bank Digital Currency (CBDC). Such an idea has been
supported by both IMF and Bank of International Settlement.
China has finally decided to experiment CBDC in a pilot mode.
The Chinese Central Bank has recently decided to test its CDBC
named as "Digital Currency Electronic Payment (DCEP)" in four
Chinese cities. Subsequently, it wants to carry out a trial run of its
CDBC during the 2022 Winter Olympics in Beijing.
FOCUS| JUNE 2020 | RAU’S IAS
WHAT IS CENTRAL BANK DIGITAL CURRENCY
(CBDC)?
• Firstly,It is a digital currency backed by the Central bank of
a country. Just like currency notes issued by the Central
Bank, the CDBC is a legal tender and accepted for the
payment of various transactions within a country.
• Secondly, unlike the cryptocurrencies, the CBDC is backed
by the Central Bank and hence enjoy more amount of
stability and less volatility.
• Thirdly, it is considered as "programmable money" . The
Central Bank can enable the usage of CBDC for certain
selected users - either the people or only the Financial
Institutions. If the CBDC is enabled to be used by the
people, it would be referred to as "Retail CBDC". So, just
like how people use cash for day-to-day transactions, they
would also be allowed to use CBDC.
• On the other hand, the CBDC can be enabled to be used
only by the Financial institutions such as Banks, NBFCs etc
and in such case it would be referred to as "Wholesale
CBDC". The CBDC can be used by financial institutions for
settling the transactions amongst them as well as for
carrying out transactions with the Central Bank. The
people would not be allowed to use such wholesale CBDC.
• Further, the CBDC is also referred as a programmable
money because it can be programmed only for certain
selected transactions or they may be enabled in certain
specific regions of the country only.
• Lastly, just like cryptocurrencies, the CBDC works on
Blockchain technology and hence details of every
76
 Economic Development
transaction- amount, accounts involved, purpose etc. is
recorded.
BENEFITS OF CBDC
• Promotes cashless society.
• Increase in Financial Inclusion
• Increase in effectiveness of Monetary Policy
• Push to development of Fintech sector
• Provide a real time picture of economic activity and hence
better GDP estimates and efficient monetary policy
formulation.
• Traceability of transactions would crack down on
corruption and money laundering.
• Counter the monopoly of private sector issued
cryptocurrencies.
Details about the Digital Currency issued in China: The
Digital Currency issued in China is a programmed retail CBDC
which would be used by the people for certain selected
transactions in the four Chinese cities. So, in a way, it is not
yet a full-fledged digital currency. It is still in experimental
stage. Based upon the learning of pilot stage and its success,
Chinese Central Bank may decide to upscale the issuance of
Digital currencies in future.
Experiments of CBDC in other Countries: Tunisia became
one of the first countries in the world to issue a block chain
based national currency called eDinar also known as
Digicash and BitDinar. Ecuador, which officially banned
Bitcoin in 2014, introduced SISTEMA de DineroElectronico, its
own digital currency. Venezuela has also launched its own oil-
based cryptocurrency to circumvent US sanctions that had
adversely impacted the economy.
Issuance of CBDC in India: The Committee to study issues
related to Virtual Currencies (2019) headed by Subhash
Chandra Garg has recommended that we need to have an
open mind regarding the introduction of an official digital
currency in India. It recommended that, if required, a
Committee may be setup to examine and develop an
appropriate model of digital currency in India. If such a digital
currency is issued, RBI should be the regulator.
The Draft National Blockchain Strategy tabled by the National
Institute for Smart Governance has also called for India to
develop a Central Bank Digital Rupee.
FOCUS| JUNE 2020 | RAU’S IAS
IRAN ADOPTS NEW
CURRENCY "TOMAN"
#Banking
IN NEWS
The Iranian Parliament has recently passed a bill to introduce
new currency "Toman" in order to replace its existing currency
Rial. The Value of the new currency "Toman" has also been
recalibrated wherein 1 Toman would be equal to 10,000 Rials.
The Rial will remain legal tender alongside the Toman during a
two-year transition period. So, let us understand the concept of
Redenomination and why has Iran decided to adopt new
currency.
REDENOMINATION
• The Redenomination is the process of replacing the
existing currencies with new currencies of different face
value. It is basically undertaken in the event of
hyperinflation. Now, during the hyperinflation, the
excessive increase in the prices of goods and services
leads to decrease in the purchasing power of the currency.
• For example, in 2008, Zimbabwe experienced an
unprecedented hyperinflation of 79,600,000,000%. This
meant that the daily inflation rate was whopping 98% and
prices of goods and services doubled almost every day. For
example, price of loaf of bread had increased to almost 55
million Zimbabwe dollars. Just imagine a scenario of a
person having 50 million Zimbabwe dollars and yet unable
to buy bread. This was a classical case of starving
millionaires. At the same time, if a person had to purchase
the goods, the person would be required to pay truck
loads of money (hypothetically).
• So, how do you solve this problem? Replacing the existing
low-value currency notes with new currency notes of
higher face value. In case of Zimbabwe, the Government
issued currency note with one hundred trillion dollars
denomination.
ISSUE OF NEW CURRENCY TOMAN IN IRAN
• The value of Iran’s currency has been steadily declining
since the Islamic Revolution in 1979. The decline in value of
currency has accelerated in recent years fuelled by U.S.
sanctions. The value of Iran’s currency has fallen by
roughly 60% since 2015. For example, the Iranian rial has
77
 Economic Development
fallen from 1 dollar = 71 Rials (1970s) to 1 dollar = 42,000
Rials (presently). Apart from that, since the Islamic
Revolution in 1979, Iran has experienced inflation on a
regular basis. There have been only four financial years
with single-digit inflation.
• In response, Iran has long been contemplating to
redenominate the currency since number of years and
finally now, it has decided to introduce new currency
Toman. The value of Toman would be equal to 10,000
Rials.
CONSOL BONDS
#Finance
IN NEWS
Recently, the Union Finance Minister has announced Rs 1.70 Lakh
Crore relief package under Pradhan MantriGaribKalyanYojana
for the poor to help them fight the battle against Corona Virus.
However, the fiscal stimulus provided by the Government is
hardly around 1% of India's GDP which is insufficient. But the
question which arises here is how do we raise extra financial
resources without affecting the macro-economic stability of
India? This is so because, on one hand, the revenue receipts of
the Government is set to decline due to COVID-19. On the other
hand, the Fiscal deficit of the Centre is already much higher.
Hence, financing the COVID-19 pandemic would be extremely
tricky question for the Government.
In this regard, some of the economists have highlighted that, we
need to look at war-time methods of raising finances. One such
innovative method of financing is CONSOL Bonds.
UNDERSTANDING CONSOL BONDS
What are CONSOL Bonds? The CONSOL Bonds are the
perpetual interest-bearing bonds which are issued by the
Governments to raise finances during war-like situations.
Being perpetual bonds, these bonds do not have maturity
period. The investor is paid only interest on such bonds.
When will the Bonds be redeemed? Since the Bonds do not
have maturity period, the Government is not under any
obligation to pay back the money. Usually, the Government
repays back its borrowings, when its financial position is
strong enough.
FOCUS| JUNE 2020 | RAU’S IAS
For example, the British Government had issued CONSOL
Bond in 1917 to finance its first world war. The Bonds carried
an interest rate of 5%. In 2014 (almost a century later), the
British Government repaid 10% of the total outstanding
CONSOL Bond debt.
WHAT ARE THE BENEFITS AND RISKS FOR INVESTORS?
Benefits:
• Investors get annual interest payments through
investment in CONSOL Bonds
• Risk-Free Investment (Issued and guaranteed by the
Governments)
• Enables the Citizens to contribute financially to the cause
of a country. This would give them a sense of participation
and promote unity within the country.
Risks: One major risk is that these bonds are not
redeemable. The repayment of these bonds is at the
discretion of the Government.
Examples of CONSOL Bonds issued in past: The first
CONSOL Bond was issued by the British Government in 1751
and carried an interest rate of 3%. Subsequently, between the
years 1914 and 1917, the Britain Government issued CONSOL
Bonds to finance the First World War.
Similarly, the US Government issued CONSOL bonds in 1870s
to raise finances.
WAY FORWARD
• Looking at the advantages associated with the CONSOL
bonds, the Indian Government need to deliberate on the
issue of such bonds to finance the fiscal stimulus package
for COVID-19. Instead of donating money to PM-CARES
fund, the Indian citizens can park their money in the
CONSOL Bonds. The proceeds of the bonds can then be
used for everything ranging from Personal Protective
Equipment for doctors to a stimulus for small and
medium-sized enterprises.
• Further, since the Indian Economy is facing slowdown,
there are no attractive investment options for Indian
investors except Gold. Hence, the CONSOL Bonds can act
as attractive risk-free investment option for the retail
investors within India. The government can consider a
phased redemption of these bonds after the economy is
put back on a path of high GDP growth.
78
 Economic Development

RBI SAVINGS BONDS

#Finance
IN NEWS
Recently, the Government issued a notification stating that 7.75%
Savings (Taxable) Bonds, 2018, also known as RBI bonds or
government bonds, shall cease for subscription from 28th May
2020.
Features of 7.75% Savings (Taxable) Bonds:
Government of India had announced the launch of 7.75
percent Savings (Taxable) Bonds, 2018 to enable resident
citizens to invest in a taxable bond, without any monetary
ceiling. These Bonds were preferred mode of savings for the
investors. Some of the features of these Bonds are as given
below:
• Eligibility for Investment: The Bonds are open to
investment by individuals (including Joint Holdings) and
Hindu Undivided Families. NRIs are not eligible for
making investments in these Bonds.
• Issue Price: The Bonds are issued for a minimum amount
of ₹ 1000/- (face value) and in multiples thereof.
• Limit of investment: There is no maximum limit for
investment in the Bonds.
• Tax Treatment: Interest on the Bonds is taxable under the
Income-tax Act, 1961 as applicable according to the
relevant tax status of the bond holder.
• Maturity and rate of interest: The Bonds will have a
maturity of 7 years carrying interest at 7.75% per annum.
• Transferability: The Bonds are not transferable. The
Bonds are not tradeable in the Secondary market and
are not eligible as collateral for loans from banking
institutions, non-banking financial companies or financial
institutions.
Why these Bonds are preferred? These Bonds provided
higher interest returns of 7.75% per annum as compared to
other savings schemes. For example, the public provident
fund offers 7.1 per cent and the senior citizen saving scheme
offers 7.4 per cent rate of interest. Bank fixed deposits for
senior citizens offer around 6.5 per cent. Hence, fall in the
Interest rates made these bonds an attractive investment
option.
PROBABLE REASON FOR CESSATION OF RBI SAVINGS
BONDS
These Savings Bonds were first issued in 2018. Since then, the
RBI has consistently reduced the Repo Rate in order to
increase the consumption and investment expenditure within
the economy. Hence, the interest rate of these bonds are
much higher than the prevailing interest rates within the
economy. This in turn led to two problems:
1. Incentivised the people to save more money through
investment in such bonds and hence disincentivised
consumption expenditure.
The
2. Higher Interest Burden on the Government.
COOPERATIVE BANKS
BROUGHT UNDER
SARFAESI ACT
# Banking
IN NEWS
The Supreme Court has recently held that the provisions of the
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 (SARFAESI Act) will be
applicable to multi-state cooperative banks, and not just
commercial banks. Let is understand in detail about the SARFAESI
Act, 2002 and the recent SC Judgement.
BACKGROUND TO SARFEASI ACT
Earlier, in case of default, the Banks were required to file civil
suits in ordinary courts to sell the pledged properties and
recover the bad loans. This was a lengthy and time-
consuming exercise. Subsequently, the Debt Recovery
Tribunals (DRTs) were set up in 1993 based upon the
recommendations of Narasimhan Committee (1991).
However, the problem did not end there. The DRTs came to
be over-burdened with the cases and recovery of bad loans
through the DRTs was lengthy process. Hence, the SARFAESI
Act was passed in order enable the Banks to recover their
dues quickly.

FOCUS| JUNE 2020 | RAU’S IAS 79

 Economic Development
ABOUT SARFAESI ACT, 2002
The SARFAESI Act essentially empowers banks to directly
auction residential or commercial properties that have been
pledged with them to recover loans from borrowers. As per
the SARFAESI Act, if a borrower defaults on a loan, the Banks
can give a notice period of 60 days to the borrower to repay
the loans. If the borrower fails to repay within 60 days, the
Banks can take the following actions:
1. Take possession of the pledged assets and then lease or
sell it off to recover the loan amount.
2. Take over the management of the business of the
borrower.
3. Appoint a person to manage the assets.
Note:
1. If the total money recovered through the sale of pledged
assets is lower than the loan amount, then the Bank can
approach the Debt Recovery Tribunals.
2. One of the biggest drawbacks of SARFASEI Act is that it is
not applicable to unsecured loans. Further, it does enable
the Banks to carry out restructuring of loans (reducing
interest rate, extending the duration of loan, reducing the
GOVERNMENT POLICIES/
INTERVENTIONS
APMC REFORMS- A
CRITIQUE
#Govt Policies
IN NEWS
The Government must realize that reforming APMCs is only a
small aspect of agriculture marketing and hence focusing on only
this aspect alone would not lead to benefits.
There are other aspects of agricultural marketing such as density
of agriculture markets, strong and efficient procurement system,
world- class infrastructure of APMCs, enhancing the private
FOCUS| JUNE 2020 | RAU’S IAS
principal amount etc). Hence, in order to solve these
problems, Insolvency and Bankruptcy (IBC) has been
introduced.
PRESENT JUDGEMENT OF THE SUPREME COURT
Initially, the Multi-state Co-operative banks were not covered
under the definition of banks for which the SARFAESI Act was
applicable. In 2003, a notification was issued (without
amending the law) to bring co-operative banks within ambit
of SARFAESI. Later, in 2013, the government amended the Act
to include multi-state co-operative banks formally under the
definition of banks.
This was challenged by the petitioners arguing that the
Parliament lacks the legislative competence to regulate
financial assets related to the non-banking activity of a co-
operative society. They argued that the Banking business
carried out on by the cooperative societies are merely an
incidental/ ancillary activity and hence doctrine of pith and
substance should be applied to hold that the regulation of
such activities is outside the ambit of subject matter on which
Parliament can legislate. The SC has now ruled that the
SARFAESI act shall be applicable to the multi-state
Cooperative Banks as well.
sector investment etc. which are as important as APMC reforms
itself.
AGRICULTURAL MARKETING REFORMS SO FAR
In order to bring about agriculture marketing reforms, the
Central Government has come out with Model Agriculture
produce and livestock marketing Act, 2017. It has been
persuading the state government to adopt the features of
this model legislation. Accordingly, around 17 State
governments having amended the APMC Act to make it more
liberal.
For example, Kerala does not have an APMC Act and Bihar
repealed it in 2006. Other states such as Karnataka,
Maharashtra etc. deregulated fruits and vegetables trade,
allowed private markets, introduced a unified trading licence
and have introduced a single-point levy of market fee.
80
 Economic Development

Many States have also introduced direct marketing of farm

Increase in prices Study conducted by National
produce, examples being the UzhavarSandhai (Tamil Nadu),
received by the Farmers Council for applied Economic
the Rythu Bazaar (Andhra Pradesh and Telangana), the
leading to improvement Research (NCAER)--> No
RaithaSanthe (Karnataka), the ApniMandi (Punjab) and the
in their income levels significant improvement in the
Krushak Bazaar – Odisha).
last 13 years after the repeal of
HAVE THESE REFORMS BENEFITTED THE FARMERS?? APMC Act.
The Bihar Government took a bold decision to repeal the
APMC Act in 2006. The agriculture marketing Reforms carried WHAT SHOULD BE DONE THEN?
out by Bihar Government presents us with a classical Increase the Market Density: Adequate number of markets
example as to how reforming the APMC Acts alone would not should be set up closer to agricultural fields so that the
benefit the farmers. farmers have access to APMCs. This also leads to decrease in
transportation costs for the farmers and cut down post-
Expectation of Ground Realities
harvest losses. Accordingly, the National Commission for
Government
Farmers had recommended that each APMC should serve a
market area of around 80sq.km and it should be available to
Farmers allowed to Sell Markets located away from the farmers within a radius of 5km.However, an average APMC in
their produce anywhere villages--> 90% of the Crops sold India serves an area of around 450 sq.km, which denotes
within India within the villages to the poor access of the farmers to the APMCs. On account of this,
traders--> the farmers are forced to sell their produce at lower prices
Compelled to sell at lower outside the APMCs.
prices. Organize Small and Marginal Farmers into FPOs: Almost
Poor Participation of 85% of the farmers in India are small and marginal. These
Government agencies in farmers with lower marketable surplus find it difficult to
procurement--> farmers forced aggregatetheir produce and sell it in the APMCs through
to sell to traders at lower prices- auction. Hence, these farmers resort to sell their produce to
->Low price realization for local agents and traders at much lower prices. Accordingly,
farmers these farmers should be organized into FPOs which would
enable them to aggregate their produce, carry out value
addition and earn higher incomes.
More Private Sector Lack of enthusiasm among the
Investment in agriculture Private sector in setting up of Improve Infrastructure in existing APMCs: The
marketing. Market yards. infrastructure in the APMCs such as Godowns, Cold chain
infrastructure etc. continue to remain quite poor. This leads
Collection of APMC levy Loss of revenue which to improper storage and consequently higher post-harvest
done away with to otherwise could have been used losses. Further, most of the APMCs have not able to set up
deregulate Agriculture for improving the infrastructure electronic auction platforms which are quite important for
Marketing of existing APMCs. offering remunerative prices to the farmers. We must also
ensure that all the existing APMCs are connected to e-NAM
Proliferation of small
platform as early as possible to offer diversified market base
unregulated private market
for the farmers.
yards which charge fee from
both farmers and traders but Suitable Macro-economic Conditions: In the last 2-3 years,
yet do not provide basic the prices of the agricultural commodities had contracted
infrastructure. due to decline in the demand within the Indian Economy. This
contraction in the prices had in turn led to decline in the
income levels of the farmers. Hence, the Government has to

FOCUS| JUNE 2020 | RAU’S IAS 81

 Economic Development

realize that no amount of marketing reforms will lead to and has nearly tripled from Rs. 40,000 crores in 2007- 08 to
higher price realisation for farmers if the underlying Rs. 1.2 lakh crores crore in 2018-19.
macroeconomic conditions are unfavourable to agriculture
and farmers.Hence, going forward, the reforms in the
agriculture marketing should be accompanied by fiscal
measures to boost the demand within the economy.

BOOSTING R&D
ECOSYSTEM IN INDIA
#Govt Policies

IN NEWS
The National Science and Technology Management Information
(NSTMIS) has recently published the R&D Statistics and Indicators
2019-20. The report captures the R&D landscape of the country
through various Input-Output S&T Indicators such as R&D
investments, number of S&T personnel, number of patents filed,
scientific papers published etc.

MAJOR HIGHLIGHTS OF THE REPORT
Increase in GERD: The Gross expenditure on R&D (GERD) in
the country has been consistently increasing over the years
India’s per capita R&D expenditure has increased to PPP $
47.2 in 2017-18 from PPP $ 29.2 in 2007-08.
India’s GERD as percentage of GDP remained at 0.7% during
the years 2017-18 and 2018-19 respectively.

FOCUS| JUNE 2020 | RAU’S IAS 82

 Economic Development
Number of researchers: The number of researchers per
million population in India has increased to 255 in 2017 from
218 in 2015 and 110 in 2000. India occupies 3rd rank in terms
of number of Ph. D.’s awarded in Science and Engineering
(S&E) after USA (39,710 in 2016) and China (34,440 in 2015).
Scientific Publications: According to National Science
Foundation, India has been placed at 3rd position across the
world in terms of publication of scientific journals.
Filing of Patents: According to WIPO, India’s Patent Office
stands at the 7th position among the top 10 Patent Filing
Offices in the world.
CONCERNS WITH R&D ECOSYSTEM IN INDIA
The Economic Survey 2017-18 in its chapter "Transforming
Science and Technology" has highlighted number
problems with R&D ecosystem in India. Some of the concerns
are as highlighted below:
• Stagnation in R&D expenditure as percentage of GDP:
Even though the R&D expenditure has increased in terms
of absolute value, the R&D Expenditure as % of GDP at
0.7% has remained stagnant in the last 2 decades.
• Lower Expenditure on R&D: India’s spending on R&D is
well below that in major countries such as the US (2.8),
China (2.1), Israel (4.6) and South Korea (4.6).
• Lower Share of Private Sector Investment: Unlike
developed economies, the R&D expenditure in India is
mainly driven by public sector.
• Lower R&D investment in Health: The Public Sector
investment in R&D is mainly driven by Defence, Space and
Atomic Energy. The amount of investment in critical sector
such as Health (R&D investment by ICMR) is too low.
• Role of Universities in India: Universities in many
countries play a critical role in both creating the talent pool
for research as well generating high quality research
output. However, the Universities in India have largely
focussed only on teaching.
RECOMMENDATIONS TO IMPROVE R&D ECOSYSTEM
IN INDIA
• Improve Math and Cognitive Skills at the school level.
(Unless the foundation of Primary Education is strong, the
superstructure of R&D cannot be strengthened)
FOCUS| JUNE 2020 | RAU’S IAS
• Encourage Investigator-led Research: Provide necessary
funding and support to the researchers to take up
research.
• Increase funding by Private Sector and State Governments.
• Leverage scientific diaspora: There are today more than
100,000 people with PhDs, who were born in India but are
now living and working outside India. There is a need to
attract these scientists back to India.
• Improve the culture of Research in Universities.
MSP FOR MINOR FOREST
of PRODUCE (MFP)
#Govt Policies
IN NEWS
The Ministry of Tribal Affairs recently decided to increase the MSP
for the Minor Forest Produce of 49 items. The increase across
various items of minor forest produce ranges from 16% to 66%.
The increase is expected to provide an immediate and much
needed momentum to procurement of Minor Tribal Produce in at
least 20 States. Let us understand various aspects related to MSP
for Minor Forest Produce.
BACKGROUND
• Minor Forest produce include Tamarind seeds, Honey, Sal
Seed, Mohua Seed, Neem Seeds etc. Around 100 million
forest dwellers depend on MFP for food, shelter,
medicines, income etc. The price of MFP is often
determined by traders rather than based upon demand
and supply. Most of the MFP rich states are affected by
Naxalism which makes it easier for the traders to exploit
the tribals.
• Accordingly, in order to ensure fair prices to the tribals on
the MFP, the Government introduced the MSP for the MFP
in 2013-14. This was done based upon the
recommendations of Sudha Pillai Committee and Haque
Committee.
DETAILS ABOUT THE MSP FOR MFP
83
 Economic Development
• Declaration of MSP: Declared by the Ministry of Tribal
Affairs. It is done based upon the recommendations of
Pricing Cell set up within TRIFED.
• Coverage: Initially, the scheme included 10 MFPs in 9 PESA
States. Subsequently, it has been expanded to cover all the
states and 50 MFPs.
• Nodal Agency: TRIFED
• Procurement by: State Level designated agencies
PRADHAN MANTRI VAN DHANYOJANA
• Retail marketing led value addition plan for Minor Forest
Produce (MFP), meant for forest-based tribes.
• The tribals are organised into SHGs. These SHGs are in
turn linked to district level Van dhankendras.
• These centres cater to 10 Self Help Groups of and each
group consists of thirty tribal gatherers. They are trained
and provided with working capital to add value to the
MFPs. These SHGs can then market their products within
and outside the States through a retail network.
• Training and technical support is provided by TRIFED.
ABOUT TRIBAL COOPERATIVE MARKETING
DEVELOPMENT FEDERATION OF INDIA LIMITED
(TRIFED)
• Multi-State Cooperative Society set up in 1987 under the
Multi State Cooperative Societies Act, 1984 (now Multi-
State Cooperative Societies Act, 2002).
• Functions both as a service provider and market developer
for tribal products. It markets tribal products through the
network of its retail outlets ‘TRIBES INDIA’ in the country.
• As a capacity builder, it also imparts training to ST Artisans
and Minor Forest Produce (MFP) gatherers.
• The Ministry of Tribal Affairs (MoTA) organises National
Tribal Festival titled “AadiMahotsav” in collaboration with
TRIFED.
E-NAM PORTAL- RECENT
DEVELOPMENTS
#Govt Policies
FOCUS| JUNE 2020 | RAU’S IAS
IN NEWS
The lockdown imposed due to COVID-19 has made it difficult for
the farmers and traders to carry out physical trading of
agricultural commodities. Hence, farmers and traders have now
shifted to electronic trading through the E-NAM Portal. Post
lockdown, the number of agriculture Mandis connected to E-NAM
portal has increased by 65% to reach 965 throughout India.
ABOUT E-NAM PORTAL
What is E-NAM? Pan-India electronic trading portal which
networks the existing APMC mandis to create a unified
national market for agricultural commodities.
How is different from existing Mandis?eNAM is not a
parallel marketing structure but rather a device to create a
national network of physical mandis which can be accessed
online. It seeks to leverage the physical infrastructure of the
mandis through an online trading portal, enabling buyers
situated even outside the Mandi/ State to participate in
trading at the local level.
Why do we need E-NAM? Agriculture marketing is
administered by the States as per their agri-marketing
regulations, under which, the State is divided into several
market areas, each of which is administered by a separate
Agricultural Produce Marketing Committee (APMC) which
imposes its own marketing regulation (including fees). This
fragmentation of markets hinders free flow of agri
commodities from one market area to another and multiple
handling of agri-produce and multiple levels of mandi
charges ends up escalating the prices for the consumers
without commensurate benefit to the farmer.
NAM addresses these challenges by creating a unified market
through online trading platform, both at State and National
level.
Conditions for joining E-NAM: States interested to integrate
their mandis with eNAM are required to carry out following
three reforms in their APMC Act.
a) Single trading license (Unified) to be valid across the state;
b) Single point levy of market fee across the state; and
c) Provision for e-auction/ e-trading as a mode of price
discovery
Who operates the E-NAM platform? The Ministry of
Agriculture & Farmers' Welfare, Govt. of India has appointed
Small Farmers' Agribusiness Consortium (SFAC) as the Lead
Implementing Agency of eNAM.
84
 Economic Development
Recent Developments: e-NAM has also been integrated with
the Unified Market Platform (UMP) of Karnataka’s Rashtriya e-
Market Services (ReMS), an e-trading platform promoted by
the Karnataka State Agriculture Marketing Board. This is for
the first time in India that two different e-trading platforms
for Agri commodities of this scale has been made
interoperable. This will help farmers of Karnataka to sell their
produce to large number of traders registered with e-NAM
and even farmers from e-NAM mandis in other States will be
able to sell their produce to Karnataka traders who are
enrolled with ReMS platform of Karnataka. This will also
promote inter-State trade between the States on-boarded on
e-NAM platform & Karnataka.
DILEMMA OVER
DECLINING OIL PRICES
#Govt Policies
IN NEWS
The International Crude oil prices has reduced by almost 45% in
the year 2020 as compared to the previous year 2019. India
imports almost 80% of its crude oil requirements. Hence, decline
in the crude oil prices would help us reduce our import bill,
reduce CAD and keep inflation under control.
But the question here is " What should be the response of the
Government to decline in International Crude oil Prices?". Should
the Government raise taxes on fuels to supplement its declining
revenue collection amid COVID-19 or Should it pass on this
benefit to the Indian Consumers?.
GOVERNMENT'S RESPONSE SO FAR
The lockdown imposed due to COVID-19 and the subsequent
slowdown has led to decline in the tax collection. Hence, in
response, the Government has been increasing the excise
duty rates on the petrol and diesel to garner more revenue.
As can be seen in the picture below, in spite of decline in
crude oil prices, the petrol prices have continued to be on
higher side due to increase in the taxes.
FOCUS| JUNE 2020 | RAU’S IAS
NEED TO INCREASE THE TAXES ON FUEL
The Centre has recently decided to increase the excise duty
on Petrol and diesel for a second time in last 2 months on
account of declining crude oil prices. Some of the benefits of
this increase can be seen as under:
1. Helps Government to raise more revenue particularly
when there is decline in the tax collections due to COVID-
19.
2. Helps Government to raise finances to deal with
emergency expenses during COVID-19.
3. Helps the Government to increase its savings which can
then be used later when the crude oil prices increase.
4. Act as De-Facto Carbon Tax and hence incentivizes giving
up fossil fuel and adopt more environment friendly and
green fuels.
NEED TO PASS ON THE BENEFIT
• Decline in the demand-->Slowdown in the economy-->
Reduction in the crude oil prices--> Boost consumption
expenditure and revive economy.
• Increase in taxes on fuels--> Higher burden on the
consumers--> Centre's tax alone accounts for almost 45%
of the cost of 1 litre of petrol.
• Increase in taxes on fuels--> Lead to decrease in demand
in the economy--> Affect Industrial Activity and Investment
rates.
• Curbs on Inter-state travel, decline in the household
budgets, decline in automobile sales, loss of jobs etc.
would lead to decline in demand for petrol and diesel.
Hence, increase in taxes of fuels may not lead to increase
in Government's tax collection.
85
 Economic Development
FSDC MEETING
#Govt Policies
IN NEWS
The Union Finance Minister has called for the meeting of the
Financial Stability and Development Council (FSDC) to discuss the
impact of COVID-19 on the financial sector and the economy.
FINANCIAL STABILITY DEVELOPMENT COUNCIL
(FSDC)
The Financial Stability and Development Council (FSDC)
was set up as the apex level forum in 2010 with a view to
strengthening and institutionalizing the mechanism for
maintaining financial stability, enhancing inter-regulatory
coordination and promoting financial sector development.
Composition: The Chairperson of the Council is the Finance
Minister of India. Members include Minister of State for
Finance, the heads of the financial sector regulators (RBI,
SEBI, PFRDA & IRDA) and Secretaries of the relevant
ministries/ departments of the Government of India.
Role: The Council monitors macro prudential supervision of
the economy, including functioning of large financial
conglomerates, and addresses inter-regulatory coordination
and financial sector development issues. It also focuses on
financial literacy and financial inclusion.
The FSDC is supported by a Sub-Committee (FSDC-SC),
chaired by the Governor RBI. Excluding the Chair of the FSDC
(Union Finance Minister), all members of the FSDC are also
the members of the Sub-Committee. Additionally, all four
Deputy Governors (DG) of RBI are also the members of the
Sub-Committee.
KISAN SABHA APP
#Govt Policies #Technology
FOCUS| JUNE 2020 | RAU’S IAS
IN NEWS
The lockdown imposed due to COVID-19 has made it difficult for
the farmers to sell their produce and buy various inputs such as
seeds, fertilizer etc. Accordingly, recently, KISAN Sabha App was
launched to streamline the supply chain management and
benefit the farmers.
ABOUT KISAN SABHA APP
• Connects the farmers, transporters, Service providers (like
pesticides/ fertilizer/ dealers, cold store and warehouse
owner), mandi dealers, customers (like big retail outlets,
online stores, institutional buyers) and other related
entities.
• Acts as a single stop for every entity related to agriculture-
a farmer who needs better price for the crops or mandi
dealer who wants to connect to more farmers or truckers
who invariably go empty from the mandis.
• Developed by CSIR-Central Road Research Institute (CSIR-
CRRI).
CHAMPIONS PORTAL FOR
MSMEs
#Govt Policies #Technology
IN NEWS
Recently, the Union Ministry of MSME has launched CHAMPIONS
portal aimed at assisting Indian MSMEs march into big league as
National and Global CHAMPIONS.
DETAILS
Here, the CHAMPIONS stands for Creation and Harmonious
Application of Modern Processes for Increasing the Output
and National Strength. The portal is basically for making the
smaller units big by solving their grievances, encouraging,
supporting, helping and handholding. It is a real one-stop-
shop solution of MSME Ministry.
86
 Economic Development

EXTERNAL SECTOR
GOVERNMENT BORROW $ Authorised
Capital
The Initial capital of
$ 50 bn has been

500 MILLION FROM AIIB contributed

BRICS
by
countries
#International Institutions equally.

Voting Same contribution Voting depends

IN NEWS Weightage by BRICS countries-- upon the share
> all countries given capital provided.
The Indian Government and the Asian Infrastructure Investment
equal voting Countries with
Bank (AIIB) signed a US$ 500 million “COVID-19 Emergency
weightage (20%) highest voting
Response and Health Systems Preparedness Project” to help India
to respond to the COVID-19 pandemic. This is the first ever health rights: China
sector support from the Bank to India. (26.64%); India
(7.6%); Russia (6%)
DETAILS ABOUT THE ASIAN INFRASTRUCTURE
INVESTMENT BANK (AIIB)

Criteria New Development Asian

Bank Infrastructure
INDIA’S SOVEREIGN
Investment bank
CREDIT RATING
Establishment BRICS Countries China-led DOWNGRADED
through Fortaleza multilateral Bank in
declaration in 2014 2016 # External Sector

Number of BRICS member Around 80

Members countries members IN NEWS

Approved: The Global Credit ratings agency Moody’s has recently

Additional 22 downgraded India's sovereign credit rating from "Baa2" to
members "Baa3". Further, it has continued its forecast of Indian economy
as Negative. This means that any future downgrade in ratings
would take India's sovereign credit rating to "Junk" status. So, let
Membership All UN Members All members of IBRD
us focus on the following dimensions:
open to? (Voting rightsof or Asian
1. What are Credit rating agencies and how do they work?
BRICS countries shall Development Bank
2. How India's Credit rating has changed over a period of time?
not reduce below (Non-regional
55% Members from 3. Why has Moody's downgraded India's sovereign rating?
outside Asia can 4. Implications of such a downgrade
also join)
WHAT ARE CREDIT RATING AGENCIES?
A credit rating agency is a private company whose purpose is
Total $ 100 bn. $ 100 bn
to assess the ability of borrowers, either governments or

FOCUS| JUNE 2020 | RAU’S IAS 87

 Economic Development

private enterprises, to repay their debt. To do this, these positive

agencies issue credit ratings based on the credit risk of the Nov- Baa2-
6.2 68.9 5.9
17 stable
borrower. The Credit risk of the Government could be
Baa2-
analyzed based on number of macro-economic parameters Nov-9 5.5 68.3 6.3
negative
such as GDP growth rate, Inflation, Fiscal Deficit, Debt levels,
WHY HAS MOODY'S DOWNGRADED INDIA'S
BoP transactions etc. The three biggest global rating agencies
include Fitch Rating Ltd, Moody’s and Standard and Poor’s. SOVEREIGN CREDIT RATING?
In November 2019, the Moody's had changed its forecast
HOW CREDIT RATINGS ARE ASSIGNED?
about the Indian Economy from "Stable" to "Negative".
• The Credit ratings place the risk on a scale ranging from Hence, this downgrade in India's rating was largely accepted
low risk (investment category) to high risk (speculative on account of number of reasons:
category). The credit ratings are typically expressed by
According to Moody's, the current downgrade is not entirely
letters corresponding to the potential risk, with the
on account of COVID-19. Even prior to the pandemic, the GDP
highest rating represented by AAA and the lowest
growth rate was declining.
rating by C or D.
1. Inability of Government to meet its Fiscal deficit target has
• The credit ratings of BBB (minus) / Baa3 and above are
led to increase in Government debt. It is further expected
considered to be ‘investment grade’. All ratings below
to increase due to COVID-19.
that are termed as ‘speculative grade’, more commonly
known in bond market as ‘junk’ category. 2. Rising stress in the Financial sector on account of higher
NPAs.
• In addition to the letter grade, a credit rating might also
consist of a “forecast” that describes how a particular 3. Weak implementation of Economic reforms since 2017-18.
rating may change in the future. For example, a credit WHAT WOULD BE THE LIKELY IMPACT?
rating with a negative outlook may indicate a future
• A rating downgrade means that bonds issued by the Indian
downgrade. Many investors give credit ratings a lot of
governments are now “riskier” than before. Hence the
consideration in their investment decisions. This has
issuance of new bonds by the Government would have
enabled credit rating agencies to play a central role in
higher interest rates due to the risk factor involved. This
financial markets.
would make the Government's borrowings to deal with
TRENDS IN INDIA'S SOVEREIGN CREDIT RATING COVID-19 pandemic costlier.
Real Gen. • Higher Risk factor could lead to increase in FPI outflows
Gen. Govt.
GDP Fiscal
Debt and hence Rupee depreciation.
Period S&P Fitch Moody’s growth deficit
(% of
(% y-o- (% of • Negative outlook on India's rating may lead to another
GDP)**
y)* GDP)** downgrade taking India's rating to "Junk" status.
BB+
Apr 06 8.9 74.7 5.5
positive
Aug- BBB-

FDI STATISTICS FOR 2019-

8.9 74.7 5.5
06 stable
BBB-
Jan-07 9.0 71.4 4.1

20
stable
BBB-
Feb-09 5.5 72.2 8.6
negative
Mar- BBB-
6.7 70.6 9.5 # External Sector
10 stable
Apr-12 6.2 67.4 7.8
BBB-
Jun-12 6.2 67.4 7.8
negative IN NEWS
BBB-
Jun-13 5.7 67.1 6.7 Recently, the Department for Promotion of Industry and Internal
stable
BBB- Trade (DPIIT) has come out with FDI Statistics for the financial
Sep-14 6.4 66.6 6.7
stable year 2019-20.
Apr-15 Baa3- 7.6 68.6 6.9

FOCUS| JUNE 2020 | RAU’S IAS 88

 Economic Development

HIGHLIGHTS • Top FDI Source between 2000-2019 (Cumulative):

Mauritius, Singapore
• Increase in FDI Inflows: In the year 2019-20, India
attracted total FDI inflows of $ 49.97 bn, which was 13% • Sectors attracting highest FDI (Both in terms of
higher as compared to FDI inflows in 2018-19 ($ 44.36 bn). Cumulative value and in FY 2019-20): Services, Computer
Software & Hardware, Telecommunications.
• Top Sources for FDI (2019-20): Singapore, Mauritius,
Netherlands, USA, Japan

Taxation
GOVERNMENT INCREASES
The return to the investors is the difference between the
maturity value (Rs 100) and the issue price ( Rs 98).

BORROWING TARGET • Dated Securities: Used for raising long term loans. In
India, the Central Government issues both, treasury bills
# Public Finance and bonds or dated securities while the State
Governments issue only bonds or dated securities, which
are called the State Development Loans (SDLs). G-Secs
IN NEWS carry practically no risk of default and, hence, are called

The Union Budget 2020-21 had targeted the Fiscal Deficit of the risk-free gilt-edged instruments.

Government at 3.5% of India’s GDP in the Financial year 2020-21.
In terms of absolute value, it was around Rs 7.8 lakh crores. The
Outbreak of COVID-19 has led to large scale decline in the
revenue receipts of the Government. At the same, there is a need
to announce higher financial package to provide fiscal stimulus
measures.
Taking into account, these two factors, the Government has
decided to increase the borrowing limit for the financial year
2020-21 by almost 50% to Rs 12 lakh crores. According to some
of the estimates, the Fiscal Deficit could rise to 5.6% of India’s
GDP.
WHAT ARE THE MAJOR SOURCES OF BORROWING
FOR THE CENTRE?
• Ways and means advances (WMA): Borrowings from the
RBI to meet immediate cash requirements which can arise
due to temporary mismatches in receipts and expenditure.
• Sovereign Gold Bonds: Government securities
denominated in terms of Gold.
• Bank Recapitalization Bonds: Bonds issued by the
Government to raise loans for undertaking recapitalization
of Public Sector Banks (PSBs)
• Securities issued against NSSF: The money collected
under various small savings schemes such as Post Office
Deposits, National Savings Certificate, PPF etc. is deposited
under National Small Savings Fund (NSSF) which is
maintained as part of Public Account of India. Certain

• Treasury Bills: Instruments to raise short-term loans. percentage of funds under the NSSF is used to investment

They are issued in three tenors of 91 days, 182 days and in special G-Secs and hence considered to be

364 days. Treasury bills are zero coupon securities and pay Government's borrowings.
no interest. Instead, they are issued at a discount and
redeemed at the face value at maturity. For example, a 91
day Treasury bill of Rs 100/- (face value) may be issued at
say Rs 98, that is, at a discount of say, Rs 2 and would be
redeemed at the face value of Rs 100/-.

FOCUS| JUNE 2020 | RAU’S IAS 89

 Economic Development

Important Note: Presently, major part of Government’s

borrowings is dominated by market borrowings i.e. Dated
Securities and Treasury Bills. It is followed by Securities
issued against NSSF.

INTERNATIONAL REPORTS IN NEWS

ENERGY TRANSITION
The Energy transition refers to shift in the energy system
from fossil-based fuels towards renewable energy. The ETI

INDEX (ETI)
measures the extent of energy transition taking place across
115 countries, including India.

# International Report HIGHLIGHTS OF REPORT

IN NEWS
India has improved its positions by 2 places to rank 74th on a
Global ‘Energy Transition Index (ETI)’ 2020 published by the
World Economic Forum (WEF).
ABOUT THE ‘ENERGY TRANSITION INDEX (ETI)’
• Of the 115 countries monitored, 94 countries have
improved their composite ETI score over the past six years.
These nations represent more than 70% of the global
population and 70% of global CO2 emissions from fuel
combustion.
• Sweden leads the rankings table for the third consecutive
year, followed by Switzerland and Finland. France and the
United Kingdom are the only G20 countries in the top 10.

practice questions

MCQs
Q1. With reference to Voluntary Retention Route (VRR), 2. Investment in Government Securities (G-Secs) is not
consider the following statements: allowed under this route.
1. This is a new channel which enables the FPIs to invest Which of the statements given above is/are correct?
in both equities as well as debt market in India. (a) 1 only (b) 2 only

FOCUS| JUNE 2020 | RAU’S IAS 90

 Economic Development

(c) Both 1 and 2 (d) Neither 1 nor 2 (c) 2 and 3 only (d) 1, 2 and 3

Q2. Consider the following statements: Q4. With reference to Consolidated Sinking Fund (CSF),
1. The existing legal framework in India does not permit consider the following statements:
the direct listing of equity shares of Indian companies 1. It is a dedicated fund set up by the State Governments
on foreign stock exchanges. to meet their committed expenses such as salaries
2. The Indian Companies can raise capital from the and pensions, subsidies etc.
equity markets based in other countries through the 2. This fund is placed at the disposal of RBI.
issuance of American Depository Receipts/ Global Which of the statements given above is/are correct?
Depository receipts. (a) 1 only (b) 2 only
Which of the statements given above is/are correct? (c) Both 1 and 2 (d) Neither 1 nor 2
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2 Q5. With reference to Minimum Support Price (MSP)
for Minor Forest produce (MFP), consider the
Q3. With reference to Standing Deposit Facility (SDF), following statements:
consider the following statements: 1. The MSP for the Minor Forest produce (MFP) is
1. This tool enables the RBI to absorb excess liquidity declared by the Ministry of Tribal Affairs.
from the economy. 2. It is implemented only in PESA States.
2. This tool does not require the G-Secs to be used as 3. The TRIFED is the nodal agency under this scheme.
collateral. Which of the statements given above is/are correct?
3. The SDF rate would always be higher than Repo Rate. (a) 1 only (b) 1 and 2 only
Which of the statements given above is/are correct? (c) 2 and 3 only (d) 1 and 3
(a) 1 only (b) 1 and 2 only

descriptive Questions
Q1. Do you think the Government has adopted pragmatic and prudent approach in its declaration of Economic stimulus
package to deal with COVID-19? Give arguments in support of your answer.

Q2. 2. The APMC reforms cannot be considered as the magic bullet to address various problems in the agricultural marketing.
In this regard, illustrate with the help of examples as to why the state Governments have to go beyond the APMC reforms
for the benefit the farmers.

Answers to above MCQs: 1 (d), 2 (c), 3 (b), 4(b), 5(d)

FOCUS| JUNE 2020 | RAU’S IAS 91

 SOCIETY AND SOCIAL JUSTICE
# GS Paper I & GS Paper II (Main)

TOPICS OF IMPORTANCE

SELF HELP GROUPS

• Self-Help Group (SHG) is a small voluntary association of
poor people, preferably from the same socio-economic

# Empowerment background.

• They come together for the purpose of solving their

common problems through self-help and mutual help.
IN NEWS The SHG promotes small savings among its members.

COVID-19 has thrown many challenges to the members of • The savings are kept with a bank. This common fund is in

SHGs with regard to conducting physical meeting, mobilising the name of the SHG. SHG is a group formed by the

savings (physical currency notes) of the group, rotating the community, which has specific number of members like 15

money for internal lending among the members, depositing or 20. Usually, the number of members in one SHG does

the physical cash towards repayment of loans, and not exceed twenty.

maintaining hard copy of records, digital channels, however, • The SHG shouldn’t have more than one member from a
made their life simple. particular family. This allows the inclusion of many

Specifically, the SHG members can overcome the digital divide families.

by operating their cash transactions through electronic
banking; they can meet their peers through social/digital
media without meeting in person; they can maintain their
records in e-Shakti (a digital initiative of NABARD for
maintaining SHGs’ books of accounts, thereby improving their
credit score).
On the note, let us understand the meaning and purpose of
SHGs.
WHAT ARE SELF-HELP GROUPS?
• In such a group, the poorest would come together for
emergency, disaster, social reasons, economic support to
each other have ease of conversation, social interaction
and economic interactions.
• NABARD introduced SHG-Bank Linkage Programme in
1992-1993 as a microfinance innovation.
• SHGs have been an effective mechanism for poor women
in the rural areas who usually are unbanked.
FUNCTIONS OF THE SHGs
• Initiate and maintain savings within the group: All
members must regularly save at least a small amount.
These savings allow them to get future credits for their
group.

• Lending loans to the members: The savings made by the

SHG must be used to provide loans to members of the
group. Everything related to the loan must be decided
within the group.

FOCUS| JUNE 2020 | RAU’S IAS 92

 Society and Social Justice
• Solving common problems: SHGs mostly consist of
individuals who face similar problems. The grouping
should essentially help the individual overcome these
problems through discussions and interactions within the
group and overcoming the problems and finding a
common and united solution to the problems.
• Bank Loans: SHGs must work on getting a collective
guarantee system so that they can avail loans from official
sources.
ADVANTAGES OF SHGS
• Combating social evils: The SHGs play a crucial role in
overcoming social evils like alcoholism, drug addiction,
gambling, etc.
• Women empowerment: Women SHGs make its members
independent from social constraints and allow them to
make independent decisions. They can even actively
participate in the gram sabha.
• Active participation in democracy: SHGs can actively
participate in the aspects of local governance. This would
mean the inclusion of weaker and marginalised sections of
the society in the local governance.
• Increase employment opportunities in rural India: It
allows for micro-level entrepreneurship within the rural
society and reduces too much dependence on agriculture.
• Easier access to government schemes: The government
schemes are mostly meant for the marginalised sections of
the society. The inclusion and identification of these
people are highly difficult. If they are grouped together, it
is easier for the government to identify those who are in
need of assistance quickly and efficiently. It also prevents
the exploitation and corruption of the government at the
ground level.
• Improves the standard of living: The collective team
effort by the SHGs for financial inclusion allows for the
improvement in the living standard, family planning,
healthcare, of the vulnerable sections of the society.
• Financial discipline: The members of the SHGs are
encouraged to open savings accounts in banks. This
assures improved living conditions, increased spending on
education, health, etc.
LIMITATIONS OF SHGs
• Too much dependence on government and NGOs: Many
SHGs are dependent on the promoter agencies for their
FOCUS| JUNE 2020 | RAU’S IAS
survival. In case these agencies withdraw their support, the
SHGs are vulnerable to downfall.
• Lacks qualified facilitator: The facilitators do not have
professional training with regards to organising SHGs.
• Lacks up-gradation of skills: Most SHGs are not making
use of new technological innovations and skills. This is
because there is limited awareness with regards to new
technologies and they do not have the necessary skills to
make use of the same. Furthermore, there is a lack of
effective mechanisms that promote skill developments in
rural areas.
• SHGs are run by non-professionals: There is no
professionalism within the SHGs. This does not promote
the expansion and improvement of the SHGs. This does
not allow for the increase of wages of the members and
improvement in their living conditions. This also leads to
error in accounting and mismanagement of the funds.
• Lacks security: SHGs are mostly not registered. They are
run based on the trust between the members. The savings
made by the SHG members may not be safe, which brings
in the mistrust between the members.
MEASURES TAKEN BY THE GOVERNMENT
The government plays a crucial role as a facilitator for the
SHGs. There various government schemes dedicated to the
promotion of the SHGs. Some of them are as follows:
• Swarn Jayanti Gram Swarojgaar Yojana (SGSY): It seeks
to form SHGs and develop the skills of its members to
promote self-employment in rural areas. Launched in
1999.
• This programme evolved to be a national movement in
2011 to become the National Rural Livelihood Mission.
National Rural Livelihood Mission (NRLM) is the largest
poverty alleviation program in the world. It was launched
by the Ministry of Rural Development in 2011.
• It was succeeded by Deendayal Antyodaya Yojana (DAY)
in 2015.
• SHG-Bank Linkage Programme: It is a landmark model
initiated by National Bank for Agriculture and Rural
Development (NABARD) in 1992 to deliver affordable
doorstep banking services as part of financial inclusion
drive in India.
• Today, the SHG-BLP is regarded as the largest micro-
finance programme in the world — with a total
93
 Society and Social Justice
membership of 100.14 lakh groups (covering nearly 12
crore households) across India and having extended
collateral-free loans of ₹87,098 crores to 50.77 lakh SHGs
as on March 31, 2019. It is interesting to note that more
than 90 per cent of the SHG members are women.
WAY FORWARD
• SHGs are seen as drivers of rural development. However,
the successful SHGs are only rarely seen as the living
conditions in the rural areas remains underdeveloped. The
government must take a pro-active role in the promotion
of the SHGs at the grass-root level.
• Constant monitoring of the SHGs is the need of the hour. A
separate government body to monitor the functioning and
the progress of the SHGs can make it more successful.
• New financial mechanisms based on the individual needs
of the particular area is also essential for the SHGs to
achieve their aims and objectives.Therefore, the private
banks and National Banks for Agriculture and Rural
Development (NABARD) in cooperation with the local
governing bodies must ensure that the financial inclusion
is provided at the ground level – based on the diverse
needs of rural India.
SECULARISM IN INDIA
#Ethos
A PIECE OF THOUGHT
Secularism demonstrates modernity and remains the best
option for any progressive nation. Is it not a fact that it made
us a global power and Pakistan a failed state?
Secularism simply refers to the equal status and treatment of
all religions. Indian perspective is totally different from
western perspective. Western perspective alienates state from
religion while Indian perspective constructively engages State
in religious matters.
THE CONCEPT OF SECULARISM: AN INDIAN
PERSPECTIVE
The Preamble of Indian Constitution aims to constitute India
a Sovereign, Socialist, Democratic Republic. The terms
Socialist and Secular were added to it by the 42nd
amendment. The whole constitution is summarized in the
FOCUS| JUNE 2020 | RAU’S IAS
Preamble. It is the mirror to the spirit of the constitution. The
arrangement of the words in the preamble is also very
significant. Indian society is a multi–religious society, it is
having different caste, religion along with several religion
diversification. So, all these are the divisive factor in some
way or the other and if not handled carefully then can cause
a threat to the unity and integrity of the nation.
The constituent assembly has visualized the peculiar
situations of the country and a very deliberate sequence has
been followed while arranging the preamble. It aims to
secure to citizens justice, equality and liberty. The basic
aim is to promote fraternity while assuring unity and
integrity of the nation along with individual dignity. So, it is a
cause and effect relationship. .Justice is also a subjective and
circumstantial concept. It implies the balancing of rights.
These concepts of justice, liberty and equality revolves
around fraternity which is the prime goal of the country has
to achieve through these constitutional provisions.
Regarding the concept of justice social justice is given
prime importance because without social justice economic
justice cannot be achieved and without economic political
would be futile. So all these terms given in the Preamble are
having their own significance and all efforts have been made
to ensure that the real spirit of the constitution shall be
expressed in the Preamble. It contains the essential principles
and goals of the Constitution.
Fraternity is a very significant tool to combat the divisive
forces. Religious harmony is a must to promote fraternity
particularly in Indian context. So, it’s a constitutional mandate
upon the state to combat the factors which curtails religious
fraternity. It is also incumbent upon the state to take positive
as well as negative actions to promote fraternity. Article
25(1) guarantees to every person the freedom of conscience
and the right to profess, practise and propagate religion.
So, it is the manifestation of state neutrality in the matter of
religion as it implies equal conservations of all religion and
equal religious right to all the citizens. Along with that it
prohibits discrimination on the ground of the religion race,
caste, sex or place of the birth. Article 29(2) prohibits
discrimination in matters of admission into educational
institutions on grounds only of religion, race, caste, language
or any of them. This provision guarantees the rights of
individual irrespective of the community to which he belongs.
S.R. Bommai vs. UOI:It was held that Religious tolerance and
equal treatment of all religious groups and protection of their
94
 Society and Social Justice
life and property and the places of their worship are an
essential part of secularism enshrined in our constitution.
While the citizen of this country are free to profess, practice
and propagate such religion, faith or belief as they choose, so
for as the state is concerned i.e. from the point of view of the
state, the religion, faith or belief of a person is immaterial to
it, all are equal and all are entitled to be treated equally.
Further, the Court while emphasizing upon the significance of
Secularism declared it as the basic structure of the
Constitution.
The concept of secularism was not expressly incorporated in
the constitution at the stage of its making. However, its
operation was visible in the fundamental rights and directive
principles. The concept of secularism, though not expressly
stated in the constitution, was, nevertheless deeply
embedded in the constitutional philosophy. The concepts of
secularism are not static; it is elastic in connotation. In this
area, flexibility is most desirable as there cannot be any fixed
views in this concept for all time to come. The courts decide
from time to time the contours of the concepts of secularism
and enforce it in practice.
M Ismail faruqui vs. UOI: It was held that it is clear from the
constitutional scheme that it guarantees equality in the
matters of religion to all individuals and groups irrespective
of their faith emphasizing that there is no religion of the state
itself. The preamble of the constitution read in particular with
articles 25 to 28 emphasises this aspect and indicates that it
is in this manner this concept of secularism is embodied in
the constitutional scheme.
The concept of Secularism is one facet of the Right to Equality
Woven as the Central golden thread in the fabric depicting
the pattern of the scheme in our Constitution. Any steps
inconsistent with these mandates are unconstitutional. The
Court further held that any state Government which pursues
unsecular policies or unsecular course of action acts contrary
to the Constitutional mandate and renders itself amenable to
action under article 356.
Aruna Roy vs. UOI: The court held that concept of secularism
is not endangered if the basic tenets of all religions all over
the world are studied and learned. Value based education will
help the nation to fight against fanaticism, ill-will, violence,
dishonesty and corruption. These values can be inculcated if
the basic tenets of all religions are learned. The Hon’ble
Supreme court has held in Lata Singh vs. State of U.P ,” that
caste barriers in societal interactions are anti – secular. Inter
FOCUS| JUNE 2020 | RAU’S IAS
caste marriage shall be promoted, protected and conserved
by the state to promote greater secular values. This is also a
part of secularization process. The concept of secularism is
not merely a positive attitude of religion tolerance. It is also a
positive concept of equal treatment of all religions.
As Article 25, 15(3), 29 reflect the state neutrality in the
matters of religion. These are the restrictive dimensions of
secularism.Now the question for consideration is that
whether this state neutrality or such restricted role is
sufficient to fulfill the constitutional goal which is incumbent
upon the state.
To answer this question the nature of Indian secularism has
to be keenly observed. The western secularism implies the
state neutrality in the matters of religion because they are
having a uni-religious society. So state neutrality is sufficient
and no further action is required on the part of the state to
create religious harmony.
In Indian context the state as a neutral entity in a matter of
religion was never an issue because all elements enshrined in
the constitution are interwoven and we have adopted our
society with all its peculiar features thereby automatic
adoption of the multi religiosity also. It’s a constitutional
mandate upon the state to bring a harmonization between
various religions. So, Indian secularism has to be seen in its
own light as compared to the western secularism. In Indian
context mere state neutrality in the matters of religion is not
sufficient as articles 25 , 15(1) ,29(2) manifest non declaration
of any state religion or talk about a mere guarantee of
fundamental right to religion to the citizens. These are the
restrictive or narrow aspects of secularism in Indian context.
Indian secularism requires something more than the above
mentioned things. It’s a way of life in India as it is deep rooted
in Indian society. So to promote the constitutional goal of
fraternity, for promotion and assurance of individual dignity
and unity and integrity the proactive role of the state is
required for religious harmony and tolerance.
To make assurance doubly sure, the 42
nd
amendment of the
constitution inserts the term “secular” in the preamble of
the constitution.
WAY FORWARD
• Since secularism has been declared as a part of the basic
structure of the Constitution, governments must be made
accountable for implementing it.
95
 Society and Social Justice
• Define the word “minority”. The concept of secularism is
based on recognition and protection of minorities. The two
cannot be separated.
• Setting up of a commission on secularism for ensuring
adherence to the constitutional mandate on secularism.
• Separation of religion from politics. It is of such urgency
that no time should be wasted in bringing this about.
• It is the duty of the secular and democratic forces to rally
behind those political forces that really profess and
practice secularism.
• In a secular state, religion is expected to be a purely
personal and private matter and is not supposed to have
anything to do with the governance of the country.
• Electoral reforms are imperative if secularism is to be
strengthened.
AYUSHMAN BHARAT
#Health # Empowerment
IN NEWS
According to World Health Organization (WHO), the COVID-19
pandemic, which has presented challenges for several nations,
could be an opportunity for India to speed up the health
insurance scheme Ayushman Bharat, especially with a focus on
primary healthcare
The Pradhan Mantri Jan Arogya Yojana (PMJAY) popularly
known as Ayushman Bharat Yojana Scheme is the flagship
scheme by the Government of India. It is essentially a health
insurance scheme to cater to the poor, lower section of the
society and the vulnerable population. The scheme offers
financial protection in case of hospitalization due to medical
emergencies. On this note, let us understand about the scheme
in detail.
WHAT IS AYUSHMAN BHARAT YOJANA SCHEME
(PMJAY)?
Considered as one of the biggest healthcare schemes in the
world, Ayushman Bharat Yojana aims to cover more than 50
crore Indian citizens. It is designed especially for the
economically weaker sections of the country. The PMJAY was
FOCUS| JUNE 2020 | RAU’S IAS
launched in September 2018 providing health insurance
coverage of a maximum sum insured amount of Rs.5 lakh.
The government health insurance scheme covers most of the
medical treatment costs, medicines, diagnostics and pre-
hospitalisation expenses. Additionally, the scheme offers
cashless hospitalisation services through the Ayushman
Bharat Yojana e-card which you can use to get healthcare
services at any of the empanelled hospitals across the
country. Beneficiaries of the scheme can avail hospitalisation
for necessary treatment by showing their PMJAY e-card.
WHAT IS COVERED UNDER THE SCHEME?
With the intention to provide accessible healthcare to the
poor and needy, the Ayushman Bharat Yojana Scheme offers
coverage of up to Rs.5 lakh per family per year for secondary
and tertiary hospitalisation care.
The health insurance under AB-PMJAY includes
hospitalization costs of beneficiaries and includes the below
components:
• Medical examination, consultation and treatment.
• Pre-hospitalisation.
• Non-intensive and intensive care services.
• Medicine and medical consumables.
• Diagnostic and laboratory services.
• Accommodation.
• Medical implant services, wherever possible.
• Food services.
• Complication arising during treatment.
• Post-hospitalisation expenses for up to 15 days.
• COVID-19 (Coronavirus) treatment.
WHAT IS NOT COVERED UNDER THE SCHEME?
Similar to other types of health insurance policies, the
Ayushman Bharat Yojana Scheme has some exclusions.
Below components are not covered under the scheme:
• Out-Patient Department (OPD) expenses.
• Drug rehabilitation.
• Cosmetic surgeries.
• Fertility treatments.
• Individual diagnostics.
• Organ transplant.
96
 Society and Social Justice
FEATURES OF THE SCHEME
• Coverage of Rs.5 lakh per family per annum for secondary
and tertiary care across public and private hospitals.
• Approximately 50 crore beneficiaries (over 10 crore poor
and vulnerable entitled families) are eligible for the
scheme.
• Cashless hospitalisation.
• Covers up to 3 days of pre-hospitalisation expenses such
as medicines and diagnostics.
• Covers up to 15 days of post-hospitalisation expenses
which include medicines and diagnostics.
• No restriction on the family size, gender or age.
• Can avail services across the country at any of the
empanelled public and private hospitals.
• All pre-existing conditions covered from day one.
• The scheme includes around 1400 medical procedures.
• Includes costs for diagnostic services, drugs, room charges,
physician’s fees, surgeon charges, supplies, ICU and OT
charges.
• Public hospitals are reimbursed at par with private
hospitals.
ELIGIBILITY CRITERIA FOR RURAL AND URBAN
POPULATION
The scheme has been launched to cover the bottom 40% of
poor and economically weaker sections of the country. This
was based on the deprivation and occupational criteria of the
Socio-Economic Caste Census 2011 for rural and urban
areas. The eligibility is designed with pre-conditions so that
only the underprivileged people of the society benefit from
the initiative.
PMJAY Rural: The 71st round of the National Sample Survey
Organisation reveals that a staggering 85.9% of rural
households do not have access to any healthcare insurance
or assurance. Additionally, 24% of rural families access
healthcare facilities by borrowing money. PMJAY’s aim is to
help this sector avoid debt traps and avail services by
providing yearly assistance of up to Rs. 5 lakh per family. The
scheme will come to the aid of economically disadvantaged
families as per data in the Socio-Economic Caste Census
2011. Here too, households enrolled under the Rashtriya
Swasthya Bima Yojana (RSBY) will come under the ambit of
FOCUS| JUNE 2020 | RAU’S IAS
the PM Jan Arogya Yojana.In the rural areas, the PMJAY health
cover is available to:
1. Those living in scheduled caste and scheduled tribe
households;
2. Families with no male member aged 16 to 59 years;
3. Beggars and those surviving on alms;
4. Families with no individuals aged between 16 and 59
years;
5. Families having at least one physically challenged member
and no able-bodied adult member;
6. Landless households who make a living by working as
casual manual labourers;
7. Primitive tribal communities;
8. Legally released bonded labourers;
9. Families living in one-room makeshift houses with no
proper walls or roof;
10. Manual scavenger families
PMJAY Urban: According to the National Sample Survey
Organisation (71st round), 82% of urban households do not
have access to healthcare insurance or assurance. Further,
18% of Indians in urban areas have addressed healthcare
expenses by borrowing money in one form or the other.
Pradhan Mantri Jan Arogya Yojana helps these households
avail healthcare services by providing funding of up to Rs. 5
lakh per family, per year. PMJAY will benefit urban workers’
families in the occupational category present as per the
Socio-Economic Caste Census 2011. Further, any family
enrolled under the Rashtriya Swasthaya Bima Yojana will
benefit from the PM Jan Arogya Yojana as well.In the urban
areas, those who can avail of the government-sponsored
scheme consist mainly of:
1. Washerman / chowkidars;
2. Rag pickers;
3. Mechanics, electricians, repair workers;
4. Domestic help;
5. Sanitation workers, gardeners, sweepers;
6. Home-based artisans or handicraft workers, tailors;
7. Cobblers, hawkers and others providing services by
working on streets or pavements;
8. Plumbers, masons, construction workers, porters, welders,
painters and security guards;
97
 Society and Social Justice

9. Transport workers like drivers, conductors, helpers, cart or
rickshaw pullers;
10. Assistants, peons in small establishments, delivery boys,
shopkeepers and waiters.
People not entitled for the Health Cover under Pradhan
Mantri Jan Arogya Yojana:
1. Those who own a two, three or four-wheeler or a
motorised fishing boat;
2. Those who own mechanised farming equipment;
3. Those who have Kisan cards with a credit limit of Rs.50000;
4. Those employed by the government;
5. Those who work in government-managed non-agricultural
enterprises;
6. Those earning a monthly income above Rs.10000;
7. Those owning refrigerators and landlines;
8. Those with decent, solidly built houses;
9. Those owning 5 acres or more of agricultural land.

practice questions
descriptive Questions
Q1. Self Help Groups (SHGs) are important non-state actors in socio-economic empowerment of women alongwith increasing

women stake in improving grass root governance and implementation. Critically analyse.

Q2. Secularism demonstrates modernity and remains the best option for any progressive nation. Critically comment.

Q3. A highly efficient primary health care system is must for the success of PMJAY and also for ensuring universal health care

for the poor and deprived. Comment.

FOCUS| JUNE 2020 | RAU’S IAS 98

 SCIENCE & TECHNOLOGY
# GS Paper (Prelims) & GS Paper III (Main)
LUHMAN 16
#Space
IN NEWS
Recently, a group of astrophysicists have found that the closest
known brown dwarf, Luhman 16A, shows signs of cloud bands
similar to those seen on Jupiter and Saturn.They used the
technique of polarimetry to determine the properties of
atmospheric clouds outside of the solar system.
LUHMAN 16
• Luhman 16A is part of a binary system (Luhman 16)
containing a second brown dwarf, Luhman 16B. This pair
of brown dwarfs Luhman 16A and Luhman 16B orbit each
other.
• It is situated at a distance of about 6.5 light years from the
Sun and the third closest system to the Sun after Alpha
Centauri and Barnard’s star.
• Despite the fact that Luhman 16A and 16B have similar
masses and temperatures and presumably formed at the
same time, they show markedly different weather.
• Luhman 16B shows no sign of stationary cloud bands,
instead showing evidence of more irregular, patchy clouds.
• Luhman 16B, therefore, has noticeable brightness
variations as a result of its cloudy features, unlike Luhman
FOCUS| JUNE 2020 | RAU’S IAS
16A which has less brightness variation due to a band of
clouds.
• Understanding the cloud system over a brown dwarf can
shed light on the pressure, temperature and climate on
the surface of the celestial body.
BINARY STARS SYSTEM
• Binary stars are two stars orbiting a common centre of
mass.
• The brighter star is officially classified as the primary
star, while the dimmer of the two is the secondary star.
In cases where the stars are of equal brightness, the
designation given by the discoverer is respected.
• They are very important in astrophysics because
calculations of their orbits allow the masses of their
component stars to be directly determined, which in turn
allows other stellar parameters, such as radius and
density, to be indirectly estimated.
BROWN DWARFS
• Brown dwarfs are also called failed stars, because their
masses are heavier than planets but lighter than stars.
• Due to their small masses, they are unable to sustain
fusion of their hydrogen to produce energy.
• It is believed that some of the more massive brown dwarfs
fuse deuterium or lithium and glow faintly.
POLARIMETRY
• Polarimetry is the study of polarization. Polarization is a
property of light that represents the direction that the
light wave oscillates.
• When light is reflected off of particles it can favour a
certain angle of polarization. By measuring the preferred
polarization of light from a distant system, astronomers
can deduce the presence of clouds.
• However, in case of Luhman 16A, the researchers have
found the actual structure of the clouds (not only their
presence).
99
 Science & Technology
• The polarimetry technique isn't limited to brown dwarfs. It
can also be applied to exoplanets orbiting distant stars,
or even stars. However, light from brown dwarfs is ideal
for the study.
STYRENE GAS LEAK
#Chemistry #Disaster
IN NEWS
In a grim reminder of Bhopal Gas Tragedy, LG plant in
Vishakhapatnam faced malfunction and it led to release of
Styrene gas, which caused the death of 11 people and
hundreds being hospitalized.
WHAT IS STYRENE GAS?
FOCUS| JUNE 2020 | RAU’S IAS
• It is a flammable liquid that is used in the
manufacturing of polystyrene plastics, fiberglass,
rubber, and latex.
• It is also reported that styrene is also found in vehicle
exhaust, cigarette smoke, and in natural foods like
fruits and vegetables.
• Styrene is named after storax balsam, the resin of
Liquidambar trees of the Altingiaceae plant family. Styrene
occurs naturally in small quantities in some plants and
foods (cinnamon, coffee beans, balsamic trees and
peanuts) and is also found in coal tar.
• Styrene is an organic compound with the chemical formula
C6H5CH=CH2. This derivative of benzene is a colourless
oily liquid, although aged samples can appear yellowish.
The compound evaporates easily and has a sweet smell,
although high concentrations have a less pleasant odour.
• In 1839, the German apothecary Eduard Simon isolated a
volatile liquid from the resin (called storax or styrax (Latin))
of the American sweetgum tree (Liquidambar styraciflua).
He called the liquid "styrol" (now styrene).
WHAT HAPPENS WHEN EXPOSED TO STYRENE GAS?
• Short-term exposure to the substance can result in
respiratory problems, irritation in the eyes, irritation in the
mucous membrane, and gastrointestinal issues.
• Long-term exposure could drastically affect the central
nervous system and lead to other related problems like
peripheral neuropathy. It could also lead to cancer and
depression in some cases.
• Symptoms of exposure to styrene gas are headache,
hearing loss, fatigue, weakness, difficulty in concentration
etc.
INTERNATIONAL DAY OF
LIGHT
#Physics
IN NEWS
The International Day of Light is a global initiative that
provides a platform for the continued appreciation of light and
the role it plays in science, culture and art, education and
100
 Science & Technology
sustainable development, and in fields as diverse as medicine,
communications and energy. The broad theme of light will
allow many different sectors of society worldwide to
participate in activities that demonstrates how science,
technology, art and culture can help achieve the goals of
UNESCO – education, equality and peace.
WHY IS THE INTERNATIONAL DAY OF LIGHT
CELEBRATED?
• The International Day of Light is celebrated on 16 May
each year, the anniversary of the first successful
operation of the laser in 1960 by physicist and engineer,
Theodore Maiman.
• In 2015, to raise global awareness of the achievements
of light science and its applications, the UN observed
the International Year of Light and Light-based
Technologies 2015 (IYL 2015).
• Following the success of IYL 2015, Ghana, Mexico, New
Zealand and Russia placed a resolution before the
UNESCO Executive Board supporting the idea of an
International Day of Light. It was adopted on September
19, 2016 at the Board’s 200th session at the UNESCO
HQ in Paris, France.
OBJECTIVES BEHIND THE IDL
According to lightday.org, the major objectives of the IDL
include:
• Improve the public understanding of how light and
light-based technologies touch the daily lives of
everybody, and are central to the future development of
the global society.
• Highlight and explain the intimate link between light
and art and culture, enhancing the role of optical
technology to preserve cultural heritage.
• Emphasise the importance of basic research in the
fundamental science of light, the need for investment in
light-based technology to develop new applications, and
the global necessity to promote careers in science and
engineering in these fields.
FOCUS| JUNE 2020 | RAU’S IAS
• Promote the importance of lighting technology and the
need for access to light and energy infrastructure in
sustainable development, and for improving quality of life
in the developing world.
NATIONAL TECHNOLOGY
DAY
#Science
IN NEWS
May 11 is observed as the National Technology Day. This day
marks the anniversary of Pokhran nuclear tests of 1998 and
India's technological advancements in this space.
SIGNIFICANCE
• It is the day India successfully tested nuclear bombs in
Pokhran on May 11, 1998.
• India successfully test-fired its Shakti-1 nuclear missile in
operation called Pokhran-II, also codenamed as
Operation Shakti.
• The nuclear missile was tested at the Indian Army's
Pokhran Test Range in Rajasthan. This was the second test
which was conducted after Pokhran-I codenamed
Operation Smiling Buddha, in May 1974.
• The day which was first observed on 11 May, 1999, aims to
commemorate the scientific and technological
achievements of Indian scientists, engineers. The day was
named by the former Prime Minister Atal Bihari Vajpayee.
• On the same day i.e. May 11, 1999, India performed a
successful test firing of the Trishul Missile (surface to air
short range missile) and had test flown the first indigenous
aircraft – ‘Hansa – 3’.
• Every year, the Technology Development Board of India (a
statutory body under the Ministry of Science and
Technology) celebrates the day by awarding individuals
with National Award for their contribution to science and
technology in India.
• The focus this year is ‘Rebooting the economy through
Science and Technology.’
101
 Science & Technology
AFRICAN SWINE FEVER
#Biology
IN NEWS
Many pigs have died in the Assam due to African Swine Fever
(ASF), which does not affect humans but can be catastrophic
for pigs.Officials believe ASF came into India through Tibet into
Arunachal Pradesh and then into Assam, the state with the
highest population of pigs in the country.
WHAT IS AFRICAN SWINE FEVER (ASF)?
• ASF is a severe viral disease that affects wild and
domestic pigs typically resulting in an acute
haemorrhagic fever. The disease has a case fatality rate
(CFR) of about 100 percent.
• Its routes of transmission include direct contact with an
infected or wild pig (alive or dead), indirect contact
through ingestion of contaminated material such as food
waste, feed or garbage or through biological vectors such
as ticks.
• The disease is characterised by the sudden deaths of
pigs. Other manifestations of the disease include high
fever, depression, anorexia, loss of appetite,
haemorrhages in the skin, vomiting and diarrhoea
among others.
• It is important that determination of ASF is made through
laboratory testing and it is differentiated from Classical
Swine Fever (CSF), whose signs may be similar to ASF,
but is caused by a different virus for which a vaccine
exists.
• Even so, while ASF is lethal, it is less infectious than
other animal diseases such as foot-and-mouth disease.
But as of now, there is no approved vaccine, which is also
a reason why animals are culled to prevent the spread of
infection.
RELATED INFORMATION: SWINE FLU
• Swine influenza or swine flu is a respiratory disease of
pigs, which is caused by type A influenza virus that
regularly causes outbreaks of influenza in pig populations.
Specific swine influenza vaccines are available for pigs.
FOCUS| JUNE 2020 | RAU’S IAS
• The swine flu viruses are spread among pigs through close
contact and through contaminated objects moving
between infected and uninfected pigs.
• Symptoms include fever, depression, coughing, discharge
from the nose and eyes, eye redness or inflammation.
• Swine flu viruses don’t typically infect humans, cases have
been reported in the past (for instance during the 2009
H1N1 pandemic), most commonly when humans have
contact with infected pigs.
• When humans are infected with swine flu viruses, the
symptoms are similar to human seasonal influenza and
include fever, lethargy, lack of appetite and coughing.
RAPID TESTS
#Bio-Technology
IN NEWS
After allowing rapid tests in certain zones for COVID-19, ICMR
has asked states to return test kits to suppliers. A look at how
such tests work, why states have been demanding it, and how
their debate with ICMR has unfolded.
WHAT IS RAPID TEST?
• A rapid test essentially is a test that takes less time than
the 8-9 hours that the standard RT-PCR test result takes. In
the Indian context, a rapid test means the serological
tests with kits that India had imported from China,
which have now failed quality tests.
• The difference between the two procedures is that the RT-
PCR (Reverse transcription polymerase chain reaction) test
looks to find the virus in nasal or throat swabs of the
patient, while the serological test usually looks for
antibodies in the blood, which the body develops to fight
the virus.
• The serological test is faster, taking less than 30 minutes,
while the PCR-based test takes up to nine hours. The long
wait time is also because the nasal or throat swab is first
subjected to a screening test to decide the family of the
virus; if that test confirms that it is a coronavirus, then a
second test is done to ascertain if it is indeed the novel
coronavirus SARS-CoV2.
102
 Science & Technology
• Blood has two components, a matrix called plasma
and the blood cells. The plasma minus the components
of whole blood that cause it to clot, known as serum, is
examined in a serological test.
• Serology tests are blood-based tests that can be used to
identify whether people have been exposed to a particular
pathogen.
• Serology-based tests analyze the serum component of
whole blood. The serum includes antibodies to specific
components of pathogens, called antigens. These
antigens are recognized by the immune system as foreign
and are targeted by the immune response.
WAY TO FIGHT
ALZHEIMER’S DISEASE
#Bio-Technology
IN NEWS
Researchers at the Indian Institute of Technology-Guwahati
(IIT-G) after a five-year study have arrived at methods for
preventing the accumulation of neurotoxic molecules in the
brain, which leads to memory loss.
WHAT IS UNIQUE ABOUT THE METHOD DEVELOPED
BY IIT GUWAHATI?
• One is the use of “trojan peptides” that does what the
Trojan horse did for the ancient Greeks in their victory
FOCUS| JUNE 2020 | RAU’S IAS
over Troy. The other is the application of a low-voltage
electric field toward preventing amyloid plaques from
aggregating to cause memory loss. The cause of
Alzheimer’s is the accumulation of amyloid-beta peptides
in the brain.
• Metaphorically, a "Trojan horse" has come to mean any
trick or stratagem that causes a target to invite a foe into a
securely protected bastion or place. A malicious computer
program that tricks users into willingly running it is also
called a "Trojan horse" or simply a "Trojan".
• The trojan peptide is roughly like the peptide in the
body. But while it goes along with the other peptides, its
function is contrary to aggregation. Through intravenous
injection of the trojan peptide, scientists can retard the
degeneration of nerve cells by 17-35%, translating into a
10-year delay in the onset of the disease.
• This peptide is akin to the plaque that blocks arteries
over a period of time, affecting blood supply and leading
to cardiovascular diseases. Its aggregation, meaning the
formation of one over the other, deforms the cortex of the
brain leading to Alzheimer’s disease.
• The use of an external electric or magnetic field modulates
these molecules to “pull back the possibility of Alzheimer’s
to a certain extent”.
WAY FORWARD
• The next step for the researchers is to work with these
techniques on mice induced with Alzheimer’s at the
National Institute of Pharmaceutical Education and
Research in Guwahati.
• The development of a cure for the disease is important for
India, which is third behind China and the U.S. in the
number of number of Alzheimer’s patients.
TROGLOMYCES TWITTERI
#Biology
IN NEWS
A new species of parasitic fungus named Troglomycestwitteri
has been discovered by a Danish researcher.
103
 Science & Technology

WHAT IS TROGLOMYCESTWITTERI? • The researchers was scrolling though Twitter and the
species was discovered by closely observing the images of
• Troglomycestwitteri belongs to an order called
millipedes shared through twitter and hence the name
Laboulbeniales, are tiny fungal parasites that attack
Troglomycestwitteri.
insects and millipedes.

• They look like tiny larvae. These fungi live on the outside
of host organisms; in this case, on the reproductive
organs of millipedes.

practice questions
MCQs
Q1. Consider the following statements: Choose the correct statement/s from the code given below:
1. Binary stars are two stars orbiting a common centre of (a) 1 only (b) 2 only
mass. (c) Both 1 and 2 (d) Neither 1 nor 2
2. Brown Dwarfs are able to sustain fusion of their
hydrogen to produce energy. Q4. Consider the following statements:-
3. Polarization is a property of light that represents the 1. African Swine Fever is a severe viral disease that affects
direction that the light wave oscillates. wild and domestic pigs.
Which of the statements given above are correct? 2. African Swine Fever routes of transmission is only
(a) 1 and 2 only (b) 2 and 3 only direct contact with an infected or wild pig with no sign
(c) 1 and 3 only (d) All of the above of spreading due to indirect contact.
Choose the correct statement/s from the code given below:
Q2. Which of the following statements is/are correct? (a) 1 only (b) 2 only
1. National Technology Day is celebrated to (c) Both 1 and 2 (d) Neither 1 nor 2
commemorate Pokhran-I codenamed Operation
Smiling Buddha. Q5. Consider the following statements:-
2. The theme of National Technology Day 2020 is 1. Rapid test looks to find the virus in nasal or throat
‘Rebooting the economy through Science and swabs of the patient.
Technology.’ 2. RT-PCR (Reverse transcription polymerase chain
(a) 1 only (b) 2 only reaction) test is a serological test.
(c) Both 1 and 2 (d) Neither 1 nor 2 Choose the correct statement/s from the code given below:
(a) 1 only (b) 2 only
Q3. Consider the following statements: (c) Both 1 and 2 (d) Neither 1 nor 2
1. Styrene is a derivative of benzene and is a colourless
oily liquid..
2. Styrene occurs naturally in small quantities in some
plants and foods and is also found in coal tar..

Answers to above MCQs: 1 (c), 2 (b), 3 (c), 4(a), 5(d)

FOCUS| JUNE 2020 | RAU’S IAS 104

 Geography, Environment,
Biodiversity & Disaster
Management
# GS Paper (Prelims) and GS Paper I & III (Main)

AMPHAN CYCLONE
(But keep in mind that these are just necessary conditions
and not sufficient.)

# Climate ARE THEY CALLED SOMETHING ELSE ALSO?

Cyclones are given many names in different regions of the
world – They are known as:
IN NEWS
• Typhoons in the China Sea and Pacific Ocean;
The storm system in the Bay of Bengal, Amphan, developed
• Hurricanes in the West Indian islands in the Caribbean Sea
into a super cyclone and made a landfall along the West
and Atlantic Ocean.
Bengal-Bangladesh coast. So in this discussion we will
understand about cyclone and why was it called Amphan
Super Cyclone.

WHAT ARE CYCLONES?

• Cyclones are caused by atmospheric disturbances around
a low-pressure area distinguished by swift and often
destructive air circulation.

• Cyclones are usually accompanied by violent storms and

bad weather.

• There are six main requirements for tropical cyclogenesis: WHEN DOES A “DEPRESSION” BECOMES A
 sufficiently warm sea surface temperatures; “CYCLONE”?

 atmospheric instability; • The World Meteorological Organisation uses the term

 high humidity in the lower to middle levels of the
troposphere;
 enough Coriolis force to sustain a low pressure centre;
 a pre-existing low level focus or disturbance;
 low vertical wind shear.
'Tropical Cyclone’ to cover weather systems in which winds
exceed ‘Gale Force’ (minimum of 34 knots or 63 kph). A
gale is a strong wind, typically used as a descriptor in
nautical contexts. The U.S. National Weather Service
defines a gale as 34–47 knots (63–87 km/h, 17.5–24.2 m/s
or 39–54 miles/hour) of sustained surface winds.

FOCUS| JUNE 2020 | RAU’S IAS 105

 Geography, Environment, Biodiversity & Disaster Management

• Further categories are determined similarly by wind How are they named?
speeds.
• Cyclones that form in every ocean basin across the world
Wind Speed in Wind Speed in are named by the Regional Specialised Meteorological
Type of Disturbances
Km/h Knots Centres (RSMCs) and Tropical Cyclone Warning Centres
Low Pressure Less than 31 Less than 17 (TCWCs). There are six RSMCs in the world, including the
India Meteorological Department (IMD), and five TCWCs.
Depression 31-49 17-27
• The RSMC New Delhi Tropical Cyclone Centre is
Deep Depression 49-61 27-33
responsible to name the tropical cyclones that have
Cyclonic Storm 61-88 33-47
formed over the Bay of Bengal and the Arabian Sea when
Severe Cyclonic Storm 88-117 47-63 they have reached the relevant intensity.
Super Cyclone More than 221 More than 120
• As an RSMC, the IMD names the cyclones developing over
TABLE SHOWING THE CATEGORY OF DISTURBANCE the north Indian Ocean, including the Bay of Bengal and
ACCORDING TO CORRESPONDING WIND SPEED. Arabian Sea, after following a standard procedure. The
IMD is also mandated to issue advisories to 12 other
So basically the category is determined by the speed of
the surface winds which the cyclone generate. countries in the region on the development of cyclones
and storms.
Forecast track and intensity are given In the following table:
Few rules of Nomenclature
Position Maximum sustained Category of
Date/Time
(Lat. °N/ surface cyclonic • There is no retirement of tropical cyclone names in this
(IST)
long. °E) wind speed (Kmph) disturbance basin as the list of names is only scheduled to be used
Super Cyclonic once before a new list of names is drawn up.
19.05.20/0230 15.2/86.6 240-250 gusting to 275
Storm
• Should a named tropical cyclone move into the basin from
Super Cyclonic
19.05 20/0530 15.9/86.7 240-250 gusting to 275 the Western Pacific, it will retain its original name.
Storm
• WMO maintains rotating lists of names which are
Super Cyclonic
19.05.20/1130 17.1/87.0 225-235 gusting to 260 appropriate for each Tropical Cyclone basin. The Panel
Storm
Member’s names are listed alphabetically country
Extremely Severe
19.05.20/1730 17.7/87.2 200-210 gusting to 230 wise.
Cyclonic Storm

Extremely Severe • The names will be used sequentially column wise.

19.05.20/2330 18.6/87.5 180-190 gusting to 210
Cyclonic Storm
• The first name will start from the first row of column one
Extremely Severe
20.05.20/1130 20.7/88.1 170-180 gusting to 200 and continue sequentially to the last row in the column
Cyclone Storm
thirteen.
Severe Cyclonic
20.05.20/2330 22.8/88.8 100-110 gusting to 120 • The names of tropical cyclones over the north Indian
Storm
Ocean will not be repeated, once used it will cease to be
21.05.20/1130 24.8/89.5 50-60 gusting to 70 Deep Depression
used again. The name should be new. It should not be
Actual Screenshot of notification of IMD. (By the time it made
there in the already existing list of any of the RSMCs
landfall in West Bengal, Amphan toned down into a category
worldwide including RSMC New Delhi.
4 Extremely Severe Cyclonic (ESC) storm with wind speed of
• The name of a tropical cyclone from south China Sea
165-175 kmph and gusting to 195 kmph.)
which crosses Thailand and emerge into the Bay of
LET US NOW UNDERSTAND FROM WHERE NAMES Bengal as a Tropical cyclone will not be changed.
ARE DERIVED

FOCUS| JUNE 2020 | RAU’S IAS 106

 Geography, Environment, Biodiversity & Disaster Management

In 2020, the first name to be used will be the one not used yet from the list below: Amphan.

Contributors List 1 List 2 List 3 List 4 List 5 List 6 List 7 List 8

Bangladesh Onil Ogni Nisha Giri Helen Chapala Ockhi Fani

India Agni Akash Bijli Jal Lehar Megh Sagar Vayu

Maldives Hibaru Gonu Aila Keila Madi Roanu Mekunu Hikaa

Myanmar Pyarr Yemyin Phyan Thane Nanauk Kyant Daye Kyarr

Oman Baaz Sidr Ward Murjan Hudhud Nada Luban Maha

Pakistan Fanoos Nargis Laila Nilam Nilofar Vardah Titli Bulbul

Sri Lanka Mala Rashmi Bandu Viyaru Ashobaa Maarutha Gaja Pawan

Thailand Mukda Khai Muk Phet Phailin Komen Mora Phethai Amphan

WMO/ESCAP Panel Column 1 Column 2 Column 3 Column 4

Member countries
Name Pron' Name Pron' Name Pron' Name Pron'

Bangladesh Nisarga Nisarga Biparjoy Biporjoy Arnab Ornab Upakul Upokul

India Gati Gati Tej Tej Murasu Murasu Aag Aag

Iran Nivar Nivar Hamoon Hamoon Akvan Akvan Sepand Sepand

Maldives Burevi Burevi Midhili Midhili Kaani Kaani Odi Odi

Myanmar Tauktae TauTe Michaung Migjaum Ngamann Ngaman Kyarthit Kjathi

Oman Yaas Yass Remal Re-Mal Sail Sail Naseem Naseem

Pakistan Gulab Gul-Aab Asna As-Na Sahab Sa-Hab Afshan Af-Shan

Qatar Shaheen Shaheen Dana Dana Lulu Lulu Mouj Mouj

Saudi Arabia Jawad Jowad Fengal Feinjal Ghazeer Razeer Asif Aasif

Sri Lanka Asani Asani Shakhti Shakhti Gigum Gigum Gagana Gagana

Thailand Sitrang Si-Trang Montha Mon-Tha Thianyot Thian-Yot Bulan Bu-Lan

United Arab Mandous Man-Dous Senyar Sen-Yaar Afoor Aa-Foor Nahhaam Nah-Haam
Emirates

Yemen Mocha Mokha Ditwah Ditwah Diksam Diksam Sira Sira

But there are few conditions which need to be abided by • It should not be very rude and cruel in nature;
while submitting the names: • It should be short, easy to pronounce and should not be
• The proposed name should be neutral to (a) politics offensive to any member;
and political figures (b) religious believes, (c) cultures • The maximum length of the name will be eight letters;
and (d) gender;
• The proposed name should be provided with its
• Name should be chosen in such a way that it does not pronunciation and voice over;
hurt the sentiments of any group of population over the
globe;

FOCUS| JUNE 2020 | RAU’S IAS 107

 Geography, Environment, Biodiversity & Disaster Management

• The names of tropical cyclones over the north Indian used again. Thus, the name should be new.
Ocean will not be repeated. Once used, it will cease to be
IS IT REALLY TRUE THAT FREQUENCY OF CYCLONES IS INCREASING?

TIMELINE OF CYCLONES IN 2019 (ABOVE) REASON OF INCREASED FREQUENCY: WARMING OF

• Yes. If you see in 2019, there were 3 Very Severe Cyclonic
Storms and 2 Extremely Severe Cyclonic Storm.
• This year, just before the beginning of monsoon we have
Super cyclone (highest in intensity in last 20 years).
BAY OF BENGAL
Temperature plays a big role in over-all process, let us see
what has happened with Temperature in the Bay of Bengal.
Cyclones gain their energy from the heat and moisture
generated from warm ocean surfaces.

FOCUS| JUNE 2020 | RAU’S IAS 108

 Geography, Environment, Biodiversity & Disaster Management

CLIMATE CHANGE:
The colour towards red denotes T reaching 30 and you
can see increasing dominance of red colour in the Bay
through last 5 decades.

Higher than normal temperatures in the Bay of Bengal (BoB)

IMPACT ON
HYDROSPHERE
may be whetting ‘super cyclones’ and the lockdown,
indirectly, may have played a role.

What could be the reasons behind the warming of Bay? # Climate Change
• Long term climate change (as can be seen in the graphs)

• Lockdown:

o Reduced particulate matter emissions during the

lockdown meant fewer aerosols, such as black carbon,
that are known to reflect sunlight and heat away from the
surface.
o Every year, increased particulate pollution from the Indo-
Gangetic plains is transported towards the BoB and this
also influences the formation of clouds over the ocean.
IN NEWS
Water is the primary medium through which climate change
impacts trickle down to the community and individual levels,
primarily through reduced predictability of water -availability.
On this note, the theme of 2020 is ‘Water and Climate Change’
w.r.t. the events linked with World Water Day.
Let’s look at how Climate change is impacting Water
systems

Sea level: The mean sea level has been

continuously rising since past two decades.

Warming Oceans: The ocean does an excellent job of absorbing excess heat from the atmosphere. The top few meters of the
ocean stores as much heat as Earth's entire atmosphere. So, as the planet warms, it's the ocean that gets most of the extra
energy.

Shrinking of Cryosphere:

Shrinking of Ice sheets:

The Greenland and Antarctic ice sheets

have decreased in mass.

FOCUS| JUNE 2020 | RAU’S IAS 109

 Geography, Environment, Biodiversity & Disaster Management

Frost-free Season (and Growing Season)

will Lengthen

The length of the frost-free season (and the

corresponding growing season) has been
increasing since the 1980s.

Glacial retreat

Glaciers are retreating almost everywhere

around the world — including in the Alps,
Himalayas, Andes, Rockies, Alaska and
Africa.

Decreased snow cover

Satellite observations reveal that the

amount of spring snow cover in the
Northern Hemisphere has decreased over
the past five decades and that the snow is
melting earlier.

Ocean Acidification:

Since the beginning of the Industrial

Revolution, the acidity of surface ocean
waters has increased by about 30 percent.

This increase is the result of humans

emitting more carbon dioxide into the
atmosphere and hence more being
absorbed into the oceans. The amount of
carbon dioxide absorbed by the upper layer
of the oceans is increasing by about 2
billion tons per year.

HEAT WAVES
during the summer season in the North-Western parts of
India.

# Climate • Heat Waves typically occur between March and June, and
in some rare cases even extend till July.

• The extreme temperatures and resultant atmospheric

IN NEWS conditions adversely affect people living in these regions

Severe heat waves were witnessed in the last week of May. as they cause physiological stress, sometimes resulting in
death.
HEAT WAVE
The Indian Meteorological Department (IMD) has given the
• A Heat Wave is a period of abnormally high temperatures, following criteria for Heat Waves :
more than the normal maximum temperature that occurs
There are two conditions which need to be satisfied:

FOCUS| JUNE 2020 | RAU’S IAS 110

 Geography, Environment, Biodiversity & Disaster Management

Heat wave is considered if maximum temperature of a ο Heat Wave: When actual maximum temperature ≥
station reaches at least 40°C or more for Plains, 37°C or more 45°C
for coastal stations and at least 30°C or more for Hilly ο Severe Heat Wave: When actual maximum
regions. Following criteria are used to declare heat wave: temperature ≥ 47°C
a) Based on Departure from Normal To declare heat wave, the above criteria should be met at
ο Heat Wave: Departure from normal is 4.5°C to 6.4°C least in 2 stations in a Meteorological subdivision for at least

ο Severe Heat Wave: Departure from normal is ≥ 6.4°C

two consecutive days and it will be declared on the second
day.
b) Based on Actual Maximum Temperature (for plains only)

Left: Maximum T across India (Stations crossing 40 Degree C • The sky should be practically cloudless (To allow maximum
denoted in Red) insulation over the region).

Right: Stations Observing departure from Mean maximum T
by more than 4.5 degree C denoted in Red (regions of heat
wave)
WHAT ARE FAVOURABLE CONDITIONS FOR HEAT
WAVE?
• Large amplitude anti-cyclonic flow over the area.
• Heat waves generally develop over Northwest India and
spread gradually eastwards & southwards but not
westwards (since the prevailing winds during the season
are westerly to north westerly).

• Transportation / Prevalence of hot dry air over a region • But on some occasions, heat wave may also develop over
(There should be a region of warm dry air and appropriate any region in situ under the favourable conditions.
flow pattern for transporting hot air over the region).

• Absence of moisture in the upper atmosphere (As the

presence of moisture restricts the temperature rise).

FOCUS| JUNE 2020 | RAU’S IAS 111

 Geography, Environment, Biodiversity & Disaster Management

The health impacts of Heat Waves typically involve

dehydration, heat cramps, heat exhaustion and/or heat
stroke. The signs and symptoms are as follows:

• Heat Cramps: Ederna (swelling) and Syncope (Fainting)

generally accompanied by fever below 39 i.e.102*F.

• Heat Exhaustion: Fatigue, weakness, dizziness, headache,

nausea, vomiting, muscle cramps and sweating.

• Heat Stoke: Body temperatures of 40*C i.e. 104*F or more

along with delirium, seizures or coma. This is a potential
fatal condition.

HEALTH IMPACTS OF HEAT WAVES

MAJOR EXTREME WEATHER EVENTS OCCURRED change in terms of increased instances of heat waves which
DURING 2019 are more intense in nature with each passing year, and have
a devastating impact on human health thereby increasing the
Higher daily peak temperatures and longer, more intense
number of heat wave casualties.
heat waves are becomingly increasingly frequent globally due
to climate change. India too is feeling the impact of climate

FOCUS| JUNE 2020 | RAU’S IAS 112

 Geography, Environment, Biodiversity & Disaster Management

LOCUST ATTACK
# Environment

IN NEWS
Over the past several weeks, locust attacks emanating from
the desert area in Pakistan have struck parts of Rajasthan and
Gujarat, causing heavy damage to standing crop. The situation
is being closely monitored by agri-experts in the states and the
Centre. In the desert locust, the gregaria nymphs become darker with
strongly contrasting yellow and black markings, they grow
ABOUT LOCUSTS
larger, and have longer developmental periods.
• Locusts are a collection of certain species of short-horned
grasshoppers in the family Acrididae that have a HOW DO THESE LOCUSTS HARM AGRICULTURE?
swarming phase. • The swarms eat leaves, flowers, fruits, seeds, bark and
• Swarm behaviour, or swarming, is a collective behaviour growing points, and also destroy plants by their sheer
exhibited by animals, of similar size which aggregate weight as they descend on them in massive numbers.
together, perhaps milling about the same spot or perhaps
moving en masse or migrating in some direction. • Desert locusts can have about 40 million to 80 million
locust adults in each square kilometre of a swarm and
WHAT ARE LOCUST ATTACKS AND HOW ARE THEY
travel up to 150 kilometres a day, according to the FAO.
CAUSED?
• There is an exponential increase in locust numbers with
Normal situation: These grasshoppers are innocuous, their
numbers are low, and they do not pose a major economic every new generation of breeding and a swarm the size of
threat to agriculture. one square kilometre, containing about 40 million locusts,

Attack situation: However, under suitable conditions of eats the same amount of food in one day as about 35,000
drought followed by rapid vegetation growth, serotonin in people.
their brains triggers a dramatic set of changes: they start to
breed abundantly, becoming sociable and nomadic (loosely
described as migratory) when their populations become
dense enough.
Is the difference in environmental condition also
reflected on their morphology? Yes, differences in
morphology and development are seen.

Fig: The locusts coming to India (Rajasthan and Gujarat)

originate from Horn of Africa and traverse Middle Eastern
countries before coming via Pakistan after monsoon.

FOCUS| JUNE 2020 | RAU’S IAS 113

 Geography, Environment, Biodiversity & Disaster Management
Fig: Areas impacted due to locust attack in India
HOW MANY SPECIES OF LOCUSTS ARE NATIVE TO
INDIA?
Only four species of locusts are found in India:
1. Desert locust (Schistocerca gregaria),
2. Migratory locust (Locusta migratoria),
3. Bombay Locust ( Nomadacris succincta)
4. Tree locust (Anacridium sp.).
• The desert locust is regarded as the most important in
India as well as internationally.
• The attack of 2019-2020 has been caused mainly due to
Desert locust (Schistocerca gregaria)
HOW DOES INDIA PLANS TO CONTROL THESE
ATTACKS?
• India has a locust control and research scheme that is
being implemented through the Locust Warning
Organisation (LWO) under Ministry of Agriculture.
• The LWO’s responsibility is monitoring and control of the
locust situation in Scheduled Desert Areas, mainly in
Rajasthan and Gujarat, and partly in Punjab and Haryana.
India is most at risk of a swarm invasion just before the onset
of the monsoon. The swarms usually originate in the Arabian
Peninsula and the Horn of Africa.
FOCUS| JUNE 2020 | RAU’S IAS
What are the situations which exacerbate these attacks?
The task is more difficult because of political instability in
some countries. In Somalia, for example, the FAO says that
aerial spraying has been ruled out in areas not controlled by
the government. The civil war in Yemen may also have
contributed to the outbreak.
IMD MONSOON
PREDICTION
# Climate
IN NEWS
In the season of the abnormal, the IMD has announced that
the monsoon this year would likely be normal but delayed.
What is the procedure which the agency follows for
predicting the Monsoon?
The agency follows a two-stage forecast system:
1. April Forecast: In this forecast it tells if there are chances
of drought or any other anomaly.
2. June Forecast: This forecast is more detailed (as Monsoon
usually arrives by this time). This notification contains
answers to specific questions like how the monsoon will
likely distribute over the country and whether danger signs
are imminent.
So what does “Normal” means? ‘Normal’ means India will
get 100% of its long period average, with a potential 5%
error margin.
So do we take this forecast seriously? The past experience
suggests that the April forecast very poorly aligns with the
eventual monsoon outcome. In 2019, IMD had predicted
normal monsoon and on the contrary India received highest
rains in 25 years.
What are the reasons behind incorrect prediction? There
are two reasons for that:
Incorrect Modelling: Most important reason is that our
weather models are not able to accommodate innumerable
parameters which affect/impact the monsoon rains. The April
forecast is a done using ‘statistical forecast system’ where
values of selected meteorological parameters are recorded
114
 Geography, Environment, Biodiversity & Disaster Management
until March 31 and permutations of these are computed and
compared to the IMD’s archive of weather data.
Bureaucratic style of functioning: Second reason is that
IMD after all is a govt. agency (also part of bureaucratic set
up) and hence it shies away from making any “Not so Normal”
claims.
Has IMD made changes in its models? It has made two key
changes this year:
• Reduced the definition of ‘normal’ rainfall by 1 cm, to 88
cm
• Updated the monsoon onset and arrival dates for many
States.
Why were these changes made? These changes in the
model recognize the changing weather pattern. Just like any
other weather phenomenon, Monsoon has been deeply
impacted by climate change. For example, the monsoon is
arriving later in many places, having long weak spells, and is
staying for longer periods.
STYRENE GAS LEAKAGE
# Disaster
IN NEWS
Styrene gas was released in Vishakhapatnam Plant of LG
Chemicals. Many people lost their life and a lot of people were
hospitalized.
WHAT IS STYRENE GAS?
• It is a flammable liquid that is used in the manufacturing of
polystyrene plastics, fiberglass, rubber, and latex.
• Styrene is also found in vehicle exhaust, cigarette smoke,
and in natural foods like fruits and vegetables.
WHAT LED TO LEAKAGE?
• Styrene has to be stored in gas tanks under 20°C to keep
it stable. The temperature has to be continuously
monitored, and any exposure to light or heat may result in
polymerization. If temperature rises, inhibitors have to be
added to keep the styrene stable. As a safety measure, the
styrene tanks are never filled to capacity.
FOCUS| JUNE 2020 | RAU’S IAS
• A statement from LG Polymers said that stagnation and
changes in temperature inside the storage tank could have
resulted in auto polymerization and could have caused
vaporization.
WHAT HAPPENS WHEN EXPOSED TO STYRENE?
• Short-term exposure to the substance can result in
respiratory problems, irritation in the eyes, irritation in the
mucous membrane, and gastrointestinal issues.
• Long-term exposure could drastically affect the central
nervous system and lead to other related problems like
peripheral neuropathy.
• It could also lead to cancer and depression in some cases.
SUBSEQUENT NGT INTERVENTION
Payment of Penalty: The National Green Tribunal (NGT)
directed LG Polymers India to deposit an initial amount of 50
crore for the damage caused by the gas leak at its plant in
Vishakhapatnam, which left at least 11 people dead and a
affected several others.
Constitution of a five member fact finding committee:
The Committee may specifically report on the sequence of
events, causes of failure and the persons and authorities
responsible, the extent of damage to life, human and non-
human, public health and the environment, including water,
steps to be taken for compensation of victims and restitution
of the damaged property and environment and the cost
involved.
THE PRINCIPLE OF STRICT LIABILITY AND ITS
APPLICATION IN INDIA:
• It imposes legal responsibility for damages or injuries
caused by hazardous substances in his premises even if
the person did not act with fault or negligence.
• According to the absolute liability rule, no exceptions of
strict liability shall apply in certain cases. Therefore, the
people who cause damage will have unlimited liability to
compensate victims adequately. Courts in India have
applied this rule in many cases to create deterrence.
COMPLIANCE ISSUES ON BEHALF OF OPERATOR
Styrene gas was defined as a hazardous chemical under
Manufacture, Storage And Import Of Hazardous Chemical
(Amendment) Rules. Accordingly the rules require onsite and
offsite emergency plans to ensure prevention of damage.
115
 Geography, Environment, Biodiversity & Disaster Management

LG Polymers handed over critical operations to untrained  Seeds can be sown much before monsoon;
casual workers. Hence, there appears to be failure to comply  Weeds in the field are removed;
with rules and other statutory provisions.
 Multiple branches.

DIRECT SEEDING OF RICE (DSR) TECHNIQUE

DIRECT SEEDING OF RICE • It involves sowing pre-germinated seed into a puddled soil
surface (wet seeding), standing water (water seeding) or
# Agriculture dry seeding into a prepared seedbed (dry seeding).

• Crops matures 7-10 days earlier than puddle transplanted

rice. They are not subjected to stress like being pulled from
IN NEWS the soil of the nursery and do not need to reproduce fine
Farmers in rice growing region are shifting from conventional rootlets.
puddled transplanted rice method to Direct Seeding of Rice • Hence it gives more time for the management of paddy
(DSR) this khairf season because of labour shortage. straw, for the timely sowing of next wheat crop.
Rice is one of the most important food crops in the world, ADVANTAGES OF DSR TECHNIQUE
and staple for more than half of the global population.
 Seed depth is kept uniform - results in better growth of
Looming water crisis, water-intensive nature of rice
crop.
cultivation and escalating labour costs drive the search for
alternative management methods to increase water  DSR involves more precision in timing and greater
productivity in rice cultivation. accuracy in operations.

Direct seeded rice (DSR) has received much attention because  Fast Sowing speed.
of its low-input demand. It involves sowing pre-germinated  Sowing distance and depth can be set as per the
seed into a puddled soil surface (wet seeding), standing water requirement.
(water seeding) or dry seeding into a prepared seedbed (dry
 It helps in saving irrigation water
seeding).
 Less labour intensive
Traditional practice: Paddy is grown in nursery and then
 No puddling - no damage to soil texture and quality.
transplanted to puddled field –
 Reduced incidence of nutrient deficiency, especially iron,
• By growing in nursery, it is ensured that only the
owing to lesser leaching of nutrients
germinated seeds are shifted to main field and hence
plants per unit area is maximum. Comparative yields in DSR can be obtained by adopting
various cultural practices viz., selection of suitable cultivars,
• As it is easy to irrigate a small area, seeds can be sown
proper sowing time, optimum seed rate, proper weed and
much before monsoon and hence the main monsoon can
water management.
be used for watering the transplanted crop in fields.
The development of early-maturing varieties and improved
• Main field is puddled just before transplanting. Thus all the
nutrient management techniques along with increased
weeds in the field are removed.
availability of chemical weed control methods has
• Paddy plants shoot out as a single branch. Once disturbed
encouraged many farmers in the Philippines, Malaysia,
either by crushing them or by transplanting them, they
Thailand and India to switch from transplanted to DSR
shoot out multiple branches and thus the growth is
culture. This shift should substantially reduce crop water
naturally increased. This is the most important reason of
requirements, soil organic-matter turnover, nutrient
transplanting.
relations, carbon sequestering, weed biota and greenhouse-
ADVANTAGES OF CONVENTIONAL TECHNIQUE gas emissions.

 Plants per unit area is maximum; Still, weed infestation can cause large yield losses in DSR. In
addition, recent incidences of blast disease, crop lodging,

FOCUS| JUNE 2020 | RAU’S IAS 116

 Geography, Environment, Biodiversity & Disaster Management

impaired kernel quality and stagnant yields across the years are major challenges in this regard.

practice questions
MCQs
Q1) Consider the following statements: (c) Both 1 and 2 (d) Neither 1 nor 2
1. According to IMD, ‘Normal’ monsoon means India will
get 100% of its long period average, with a potential 5% Q4) Consider the following statements:
error margin. 1. Heatwave event is declared when the maximum (day)
2. IMD follows March and May forecasting system. temperature for a location in the plains crosses 40
Which of the statements given above is/are correct? degrees Celsius.
(a) 1 only (b) 2 only 2. Any location where maximum temperature crosses 45
(c) Both 1 and 2 (d) Neither 1 nor 2 degrees or shows a departure of over 6 degrees from
normal, it is a severe heatwave condition.

Q2) Consider the following statements: Which of the statements given above is/are correct?

1. Styrene has to be stored in gas tanks under 30°C to (a) 1 only (b) 2 only

keep it stable. (c) Both 1 and 2 (d) Neither 1 nor 2

2. Exposure of Styrene to light or heat may result in

polymerization. Q5) Consider the following statements:
Which of the statements given above is/are correct? 1. The names of tropical cyclones over the north Indian
(a) 1 only (b) 2 only Ocean will not be changed.

(c) Both 1 and 2 (d) Neither 1 nor 2 2. The name of a tropical cyclone from south China Sea
which crosses Thailand and emerge into the Bay of
Bengal as a Tropical cyclone will not be repeated.
Q3) Consider the following statements:
Which of the statements given above is/are correct?
1. Locust Warning Organisation (LWO) is under Ministry
of Rural Development. (a) 1 only (b) 2 only

2. Locusts impacting India originate in Central Asia. (c) Both 1 and 2 (d) Neither 1 nor 2

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only

Answer for the above MCQs: 1 (a), 2 (b), 3 (d), 4 (c), 5 (d)

FOCUS| JUNE 2020 | RAU’S IAS 117

 History, HERITAGE & Culture
# GS Paper (Prelims) & GS Paper I (Main)
Note: Most of the news nowadays are related only to COVID-19 hence there is paucity of news in History segment. In this regard, we
are putting a recap of our coverage for revision pertaining to the forthcoming Civil Services (Preliminary) Examination. This month,
there is collation of Monuments, Places and Architecture for faster revision.

MONUMENTS, PLACES AND

ARCHITECTURE

BOJJANNAKONDA CHAUKHANDI STUPA

• Bojjannakonda is located in Sankaram, Andhra • It is an ancient Buddhist site which evolved from burial
Pradesh. mounds and served as a shrine for a relic of Buddha.

• The name Sankaram is derived from the
‘Sangharama’. It is famous for the whole lot of votive
stupas, rock-cut caves, brick-built structural edifices,
early historic pottery and Satavahana coins that date
back to the 1st century AD.
• It is here that “Bojjannakonda along with Lingalametta
are situated. They are twin Buddhist monasteries dating
back to the 3rd century BC.
• These sites have seen three forms of Buddhism – the
Theravada period when Lord Buddha was considered a
teacher, the Mahayana, where Buddhism was more
devotional, and Vajrayana, where Buddhist tradition
was more practised as Tantra and esoteric form.
• The main stupa was carved out of rock and then
covered with bricks, where one can see a number of
images of the Buddha sculpted on the rock face all over
the hill.
• At Lingalametta, one can see hundreds of rock-cut
monolithic stupas in rows.
• Tourists visit the Buddhist sites in large numbers to see
the relic casket, the three Chaitya Halls, the votive
platforms, the stupas and the Vajrayana sculpture.
term, • It is located in Varanasi, Uttar Pradesh.
• The Stupa is known as ‘Chaukhandi’ because of its four-
armed plan.
• It finds mention in the accounts of Hiuen Tsang who was a
celebrated Chinese traveller of 7th century AD.
• With respect to the date of its construction, it is widely
believed that Stupa was originally built as a terraced
temple during Gupta period (4th-6th centuries AD).
• The purpose of building it was to mark the site where
Lord Buddha reunited with his five companions who
had previously deserted him at Rajgir.
• It is a lofty mound of brick, whose square edifice is
surrounded by an octagonal tower.
• After Gupta’s the stupa’s architecture was altered by
Govardhan, son of Raja Todarmal, who modified stupa
to its present shape by building an octagonal tower in
commemoration of Humayun’s visit.
• The current structure of the stupa is a high earthen mound
covered with brickwork, to which stands atop a terraced
rectangular plinth and it is capped by an octagonal Mughal
tower.

FOCUS| JUNE 2020 | RAU’S IAS 118

 History, Heritage & Culture

• It is maintained, conserved and preserved by • The architecture of Pallavas influenced everyone including
Archaeological Survey of India (ASI). Chinese. Pallavas also had trade relations with the

• The art found in this stupa includes some images of Chinese.

Buddha, such as the image of buddha in • The Descent of the Ganga/Arjuna’s Penance, a rock
Dharmachakra Pravartana mudra. carving commissioned by Narasimhavarman I, with its

• Other statues found during excavations at this Stupa are depiction of the Bhagirathi flowing from the Himalayas. It

believed to be rare artefacts and classic examples of art may serve as a reminder of the geography of India-China

from Gupta period. relations, and their shared resources.

• While Narasimhavarman I is credited with excavating the

stone caves of Mamallapuram, it was Mahendravarman I,

BHITARGAON BRICK Narasimhavarman’s father who ruled from 600 AD to 630

AD, who was the pioneer of Pallava rock-cut

TEMPLE architecture.

• The successors of Narasimhavarman I, especially his

• The Bhitargaon temple was first excavated by Alexander
grandson Parameswaravarman I (670-695 AD) and his
Cunningham.
great grandson Narasimhavarman II (700-728 AD),
• It is the oldest and largest surviving brick temple of the continued to build in Mamallapuram.
Gupta period.
• Narasimhavarman II, also known as Rajasimha Pallava,
• Though Cunningham had placed it as belonging to the 7th built the magnificent Shore Temple among others in
century, it has subsequently been identified as belonging Mamallapuram, as well as grand temples at several other
to the late Gupta period, to the 5th century. places, including the famous Kailasanathar Temple at
• The village Bhitargaon had been part of an ancient city Kancheepuram.
called Phulpur. TRADE LINKS WITH CHINA AND OTHER COUNTRIES
• It is covered throughout with terracotta sculptures of • Tamil-Chinese links also continued after the Pallavas,
superb workmanship. flourishing under the Cholas as the Coromandel coast
• According to Cunningham, because of the Varaha became the entrepot between China and the Middle
incarnation at the back of the temple, it was probably a East.
Vishnu temple. • The links extended to a wider area beyond
Mahabalipuram, through a layered history that has left a
rich tapestry of society, culture, art and architecture, which
MAMALLAPURAM is diverse and complex, and reaches up to modern times.

• By the time Islam arrived on south India’s east coast in

• The name Mamallapuram derives from Mamallan, or
the 9th century, Muslims had already started trading with
“great warrior”, a title by which the Pallava King
China by maritime routes.
Narasimhavarman I (630-668 AD) was known.
• In later centuries, the Coromandel coast retained its
• It was during his reign that Hiuen Tsang, the Chinese
importance for trade between China and the west.
Buddhist monk-traveller, visited the Pallava capital at
Kanchipuram. • In the 17th and 18th centuries, it was a staging post for
the Dutch, French and British for control of the seas
• Mamallapuram was the crucial port that established the
between South Asia and Southeast Asia, as the Europeans
first cultural relations of India with Southeast Asia and
fought to protect their trade routes with China and other
China.
countries in the region.
• It had ancient links with Buddhism and China through the
• After establishing their writ on the Coromandel Coast, the
maritime outreach of the Pallava dynasty.
British expanded eastward and established control over

FOCUS| JUNE 2020 | RAU’S IAS 119

 History, Heritage & Culture

the Straits of Malacca, essentially to protect their trade • The cave complex has been given the status of world
routes to China and the rest of the region. heritage by UNESCO in 1987.

• Among the colonial outposts on this coast is • The logo of the Maharashtra Tourism Development
Sathurangapattinam, or Sadras, right next to Corporation shows a 20 ft high monolith of the three-
Kalpakkam, where the Dutch East India Company built a headed Trimurti Sadashiva representing the three
fort, their second one on the east coast after establishing aspects of Shiva. This awe-inspiring piece of carving, hewn
a capital at Pulicat, north of Chennai. out of rocks similar to Ellora in the same State, is the

• Sadras became a huge centre for the Dutch-controlled focal point of the Elephanta Caves.
manufacture of cotton and muslin. The Dutch presence in
the region grew rapidly after they established themselves
in Java in 1603. RANI KI VAV
• They traded within Asia, buying textiles, metal, and
• Rani-ki-Vav, or the ‘queen’s stepwell’ is located in Gujarat’s
porcelain, importing and exporting between India, China
Patan city.
and Japan, to keep the spice trade going.
• It is believed to have been built by Rani Udayamati, in
memory of her husband Bhimdev I, the founder of the

ELEPHANTA CAVES Solanki dynasty of Patan.

• The construction began in 1063 A.D. and continued for

• Elephanta was anciently known as Gharapuri.This island several years.
was the capital of Konkan Mauryas. • The Vav was later flooded by the Saraswati River and
• It is celebrated for its colossal image of Mahesamurti silted over until 1960s, when it was excavated by the
with three heads each representing a different form. Archaeological Survey of India.

• The island was renamed by Portuguese invaders after a • It is estimated that Vav had nearly 800 sculptures of which
giant stone sculpture of an elephant, which was removed approximately 500 are found in pristine condition.
from the island and now stands outside the Dr. Bhau Daji • It is an architectural marvel so famous that it made it to
Lad Museum. the new ₹100 currency note last year.
• The cave temple, dedicated to Lord Shiva, was excavated • This 11th century subterranean water storage system
sometime in the 8th century by the Rashtrakuta kings, happens to also be a World Heritage Site.
who ruled the area between A.D. 757-973.
• Rani-ki-Vav is a highly decorated monument with
• The Elephanta caves is a conglomeration of seven caves,
ornamented panels of sculptures and reliefs
out of which the most important is the Mahesa-murti
representing the height of Maru-Gurjara style of
cave.
architecture.
• The main body of the cave, excluding the porticos on the
• Most of the sculptures are in devotion of Vishnu, in the
three open sides and the back isle, is 27 metres square
forms of Dashavatar, with eye-catching images
and is supported by rows of six columns each.
of Varaha, Narasimha, Rama and Kalki.
• The gigantic figures of 'dvarapalas' or doorkeepers are
very impressive. • There is a particularly beautiful statue of Mahishasur-
Mardini -the Mother Goddess slaying
• There are sculptured compartments in this cave with
demon Mahishasur. Apsaras – the celestial beauties
remarkable images of Ardhanarisvara, Kalyana-sundara
showcasing 16 different styles of makeup (Solah Singar)
Shiva, Ravana lifting Kailasa, Andhakari-Murti (slaying
is another highlight.
of Andhaka demon) and Nataraja Shiva.

• There are also ancient Buddhist stupa mounds on the

same island.

FOCUS| JUNE 2020 | RAU’S IAS 120

 History, Heritage & Culture
• Near the water level, there is a carving of Sheshashayi
Vishnu, in which the lord reclines on the thousand-
hooded serpent Shesha.
BRIHADEESWARAR
TEMPLE
• Brihadeeswarar Temple or Peruvudaiyar Kovil or
Rajrajeshwaram temple at Thanjavur is the world’s first
complete “granite” temple.
• It was built by Rajraja Chola-I and is a part of UNESCO’s
world Heritage sites.
• It was dedicated by lord Shiva to Rajraja Chola I, when he
triumphed Ilam (Sri Lanka) Island.
• The Vimana or the temple tower (known as Raja
Gopuram) is one of the tallest buildings of its kind.
• The Nandi is carved out of a single rock.
• Other important Chola temples include: Vijayalaya
Cholisvara Temple, Thanjore; Koranganatha Temple,
Srinivasanallur; Muvarkovil, Pudukkottai; Tiruvalisvaram
temple, Tiruneveli and Brihadeeswarar Temple,
Gangaikondacholapuram.
VEERABHADRASWAMY
TEMPLE, MOTUPALLI
• Veerabhadraswamy temple was built during the reign of
Chola dynasty.
• Veerabhadraswamy is a fiery form of Lord Shiva.
• This temple contains inscriptions in Telugu and Tamil.
• The temple also hosts Panchaloha idols of gods and
goddesses including that of Lord Nataraja in dancing
posture and Bhadrakali.
KONARK SUN TEMPLE
• Konark Sun Temple, located in the eastern State of
Odisha near the sacred city of Puri, is dedicated to the
sun God or Surya. It was given the tag of world heritage
site in 1984.
FOCUS| JUNE 2020 | RAU’S IAS
• The temple was built in A.D. 1250, during the reign of the
Eastern Ganga King Narasimhadeva-I (A.D. 1238-64).
• It is a monumental representation of the sun God Surya's
chariot; its 24 wheels are decorated with symbolic designs
and it is led by a team of six horses.
• The monument was also called the Black Pagoda'(Kaala
Pagoda) by the European sailors. In contrast, the
Jagannath Temple in Puri was called the White Pagoda.
• The temple was originally built at the mouth of the river
Chandrabhaga, but the waterline has receded since then.
• The temple was made on the traditional style of Kalinga
architecture and is constructed from Khondalite rocks.
• The wheels of the temple are sundials which can be
used to calculate time accurately to a minute including day
and night.
JAGANNATH PURI TEMPLE
• The Jagannath Temple was built in the city of Puri by
King Anatavarman Chodaganga Deva of the Eastern
Ganga Dynasty in the 12th century.
• He has also built the Sun temple of Konark.
• Both these temples are located on the eastern coast,
at Puri, Odisha.
• There are three main deities in the temple i.e. Lord
Jagannath, Balabhadra, and Subhadra.
• The temple is a part of Char Dham (Badrinath,
Dwaraka, Puri, Rameswaram) pilgrimages that a
Hindu is expected to make in one’s lifetime.
• When most of the deities in the temples of India are
made of stone or metal, the idol of Jagannatha is
made of wood which is ceremoniously replaced in
every twelve or nineteen years by using sacred trees.
• The Jagannath Temple is famously called the White
Pagoda by the Europeans.
• The temple is famous for its annual Ratha Yatra or
Chariot festival.
RAMAPPA TEMPLE
• Ramappa Temple is located at Palampet near Warangal.
121
 History, Heritage & Culture
• It is considered to be a jewel of the Kakatiya dynasty.
• An inscription in the temple dates it to the year 1213 AD
and says it was built by a General Recherla Rudra, during
the period of the Kakatiya ruler Ganapati Deva.
• This temple is dedicated to Lord Siva.
• It is perhaps the only temple in the country that is known
by the name of the architect rather than the king who
commissioned it or its presiding deity.
• The main structure is in a reddish sandstone.
• The temple columns are made of black basalt.
• Among the sculptural details are the stunning dance
sculptures and friezes of the temple.These appear as if
they have been machined into shape on black dolomite,
rather than being chiselled.
• The temple is built on a valley and it rests on bricks that
are scientifically shown to float in water.
PADMANABHASWAMY
TEMPLE
• Sree Padmanabhaswamy temple is located
Thiruvananthapuram, Kerala.
• The presiding deity of this temple is Lord Vishnu, reclining
on Anantha, the hooded Serpent.
• This temple is one of the 108 sacred Vishnu temples or
Divya Desams in India.
• Divya Desams are the holiest abodes of Lord Vishnu that
are mentioned in the works of the Tamil Alvars (saints).
• It is a blend of the Kerala and Dravidian styles of
architecture.
• This temple is believed to be the world’s richest temple.
• Thiruvananthapuram, the capital city of Kerala takes its
name from the presiding deity of the Sree
Padmanabhaswamy Temple, who is also known as
Anantha (one who reclines on the Serpent Anantha).
• Sree Padmanabhaswamy temple recently became a part of
the Prime Minister’s project “Development of Spiritual
Circuit: Sree Padmanabha Swamy Temple-Aranmula-
Sabarimala” which being implemented under the
Swadesh Drashan Scheme of Ministry of Tourism.
FOCUS| JUNE 2020 | RAU’S IAS
GOLCONDA FORT
• Golconda Fort is situated in Hyderabad, the capital of
Andhra Pradesh.
• Built by the Kakatiya dynasty in the 13th century.Later,
the fort came into the possession of the Bahmani
dynasty.
• It was then acquired by the Qutub Shahi dynasty who
then made Golconda their capital. In this respect,
Golconda fort owes much of its present grandeur to
Mohammad Quli Qutub Shah.
• By the 17th century, Golconda was famous as a diamond
market. It gave the world some of the best-known
diamonds, including the 'Kohinoor'.
• Structures in the fort range from military and defensive
structures, mortuary baths, silos, mosques, gardens,
residential quarters, pavilions and royal courts,
showcasing the entire range of structures that catered to
life in a medieval fortified town in India.
• The magnificent architecture of the fort is evident from
the colossal gate at the entrance studded with long iron
spikes, to deter invading armies from battering it down.
• The gate leads to the portico known as the Balahisar gate,
in
magnificent as the gate itself. It includes the modern
acoustic system, which was so designed that a handclap
sounded at the Balahisar gate of the fort could be heard
right up in the citadel.
VITTALA TEMPLE
• This temple reflects a high degree of craftsmanship of the
temple architecture that reached its zenith under the
Vijayanagara rulers who reigned from 14th to 17th
century CE.
• Vittala, after whom the temple is known, is a form of
lord Vishnu.
• This aspect of Vishnu was worshiped in this part of the
country as their cult deity by the cattle herds.
• The temple was originally built in the 15th century AD
based on Dravidian architecture.Many successive kings
have enhanced the temple campus during their regimes to
the present form.
• The highlight of Vittala temple is its impressive
pillared halls and the stone chariot.
122
 History, Heritage & Culture
• The halls are carved with an overwhelming array of
sculptures on the giant granite pillars.
• The stone chariot located inside the campus is almost an
iconic structure of Hampi.
• In addition to the typical spaces present in contemporary
temples, it boasts of a Garuda shrine fashioned as a
granite ratha and a grand bazaar street.
• This complex also has a large Pushkarani (stepped
tank) with a Vasantotsava mandapa (ceremonial
pavilion at the centre), wells and a network of water
channels.
• Most of the structures at Hampi are constructed from
local granite, burnt bricks and lime mortar. The stone
masonry and lantern roofed post and lintel system were
the most favoured construction technique.
• The massive fortification walls have irregular cut size
stones with paper joints by filling the core with rubble
masonry without any binding material.
• The gopuras over the entrances and the sanctum proper
have been constructed with stone and brick.
• The roofs have been laid with the heavy thick granite slabs
covered with a water proof course of brick jelly and lime
mortar.
LAKSHMI NARASIMHA
TEMPLE
• The historical 13th century Lakshmi Narasimha temple is
located inBhadravati, Shivamogga district, Karnataka.
• The temple was built during the Hoysala rule in the early
13th century.
• It is a ‘trikuta’ — a temple with three shrines —
dedicated to deities Lakshmi Narasimha,
Venugopalaswamy, and Purushothama.
• The temple attracts a large number of devotees on
Vaikuntha Ekadashi and during the month of Karthika.
ORCHHA
• Orchha town in Niwari district of MP’s Bundelkhand
region has a peculiar style of architecture used by the
Bundela dynasty.
FOCUS| JUNE 2020 | RAU’S IAS
• Orchha has a number of architectural specimens
belonging to synthesis of traditional Hindu, Indo-Saracenic
and ornate Mughal art which include a palace, fortress,
temple and a cenotaph.
• The architectural heritage of Orchha town has been
included in the tentative list of UNESCO’s world
heritage sites.
• The word Orchha or Urchha means ‘hidden’. The reason
for this naming is because the Bundelkhand Kings wanted
to retreat from the control of Delhi.
• Established in 1501 by Maharaja Rudra Pratap Singh,
Orchha has witnessed tough times as well as friendly
relations with the Mughal Dynasty.
• The most fascinating of all the magnificent surroundings is
the Orchha’s Fort complex. It is known for
its chaturbhuj temple.
• The grand Orchha Complex is divided into three mesmeric
sections; Jahangir Mahal, Raj Mahal and Sheesh
Mahal.It is also famous for its 2 elevated minarets –
Saavan and Bhadon;
• The Raj Mahal was once the prime residence of
Bundela kings and their queens.
• In ‘Sri Ram Raja Mandir’, Lord Ram is worshipped as a King,
not as a deity. It is the only temple in India to do so.
TAWANG MONASTERY
• It is the largest monastery in India and second
largest in the world after Potala Palace in Tibet.
• It is known in Tibetan as Gaden Namgyal Lhatse.
• It was founded in 1680-81 by a monk named Merag
Lodre Gyatso of the Gelug sect after the 4th Dalai
Lama gave him a painting of goddess Palden Lhamo
to be kept in the monastery.
• An eight-metre high gilded statue of Lord Buddha
dominates the sanctum of the monastery.
• The Tawang Monastery was built according to the
wishes of the 5th Dalai Lama, Ngawang Lobsang
Gyatso.
123
 History, Heritage & Culture

QILA RAI PITHORA

• The capital he founded, Firuzabad, was situated in what
is now the Firoz Shah Kotla area of contemporary Delhi.

• The first reference to the place-name Delhi seems to have ►Din Panah
been made in the 1st century BCE, when Raja Dhilu built a • Humāyūn ascended the throne in 1530 and in 1533
city near the site of the future Qutb Minar tower (in founded a new city, Din Panah, on the bank of
present-day southwestern Delhi) and named it for himself. the Yamuna River.
• The next notable city to emerge in the area now known as ►Purana Qila
the Delhi Triangle was Anangpur (Anandpur),
• Sher Shah, who overthrew Humāyūn in 1540, razed Din
established as a royal resort in about 1020 CE by
Panah to the ground and built his new capital, the Sher
Anangapala of the Tomara dynasty.
Shahi, now known as Purana Qila fort, in southeastern
• Anangapala later moved Anangpur westward to a walled Delhi.
citadel called Lal Kot. The Tomara kings occupied Lal
►Shahjahanabad
Kot for about a century.
• Shah Jahān, Akbar’s grandson, instructed his engineers,
• In 1164, Prithviraj III (Rai Pithora) extended the citadel
architects, and astrologers to choose a location with a mild
by building massive ramparts around it; the city then
climate somewhere between Agra and Lahore (now in
became known as Qila Rai Pithora.
Pakistan).
• In the late 12th century Prithviraj III was defeated. Later,
• The choice was on the western bank of the Yamuna, just
Quṭb al-Dīn Aybak, builder of the famous tower Qutb
north of Purana Qila.
Minar (completed in the early 13th century), made Lal
Kot the seat of his empire. • Shah Jahān started the construction of the new
capital, focusing on his fort, Urdu-i-Mualla, today
HISTORIC CITIES OF DELHI
called Lal Qila, or the Red Fort.
►Siri
• The structure was completed in eight years, and on April
• The Khaljī dynasty came to power in the Delhi area in the 19, 1648, Shah Jahān entered his fort and his new capital,
last decade of the 13th century. Shajahanabad, from its riverfront gate.
• As a defense against subsequent attacks by the • Shahjahanabad today is Old Delhi.
Mongols, Allauddin Khalji built a new circular fortified
city at Siri, near the Qutb Minar, that was designated
as the Khaljī capital.
MALCHA MAHAL
• Siri was the first completely new city to be built by the
Muslim dynasty in India. • Malcha Mahal is a 14th century Tughlaq-era hunting
lodge, which was inhabited by the descendants of the
►Tughlakabad
Nawab of Awadh till a couple of years ago.
• The region passed into the hands of the
• The palace was built by Feroz Shah Tughlaq, where he
Tughluq dynasty in 1321.
would spend a considerable time on his hunting
• A new capital was built by Ghiyāth al-Dīn Tughluq excursions. Sultan Firoz Shah Tughlaq was a ruler of the
(1320–25) at Tughlakabad, but it had to be abandoned Tughlaq Dynasty, who reigned over the Sultanate of Delhi
in favour of the old site near the Qutb Minar because from 1351 A.D. to 1388 A.D.
of a scarcity of water.
• It derived its name from the village Malcha where it was
►Firozabad built.
• Muḥammad ibn Tughluq’s successor, Fīrūz Shah Tughluq,
abandoned the Daulatabad site and in 1354 moved his
capital farther north, near the ancient site of
Indraprastha.
PURANA QILA
• Purana Qila was built by the Sur ruler Sher Shah.

FOCUS| JUNE 2020 | RAU’S IAS 124

 History, Heritage & Culture
• According to Hindu literature the fort marks the site of
Indraprastha, the magnificent capital of the Pandavas.
• The construction was carried out under Sher Shah Suri
between 1538 to 1545.
• It was intended to be the sixth city of Delhi.
• Today, only two isolated gateways survive. Its northern
gate is known as the Talaqi Darwaza also translated by
some scholars as the Forbidden Gate.
• The Qila also hosts a mosque inside it known as the Qilsi
Kuhna Masjid which was built about 1542 inside
the Purana Qila citadel.
ARCHITECTURE OF PURANA QILA
• In the architectural scheme of this mosque, the facade of
the prayer hall is divided into five arched bays, the
central one larger than the others, each with an opcn
archwayrecessed within it.
• The facade is richly carved in black and white marble
and red sandstone.
• One notable feature in this building is the shape of the
arches - there is a slight drop, orflatness, in the curve
towards the crown.
• It is indicative of the last stage before thedevelopment of
the "Tudor" arch of the Mughals.
ABOUT TALAQI DARWAZA
• The gate has a panel showing a man fighting a lion,
considered unusual in a Moghul-era monument.
• Perhaps the panel commemorates the fight Sher Shah had
when, as a young man he killed a ‘Sher’.
• Since then Farid Khan came to be known as Sher Afghan.
• The marble panels are more than the tale of Sher Shah
and his fight with the king of beasts.
• Such depictions were a common feature in ancient
Babylon. The lion, besides man, is among the four living
creatures (one ‘full of eyes in front and behind’) that are
believed to surround the highest seat of heaven.
• This is part of the Semitic story of creation and the panel of
the Talaqi Darwaza may well have been inspired by it,
though Sher Shah killed a tiger, not a lion.
FOCUS| JUNE 2020 | RAU’S IAS
KHAIR-UL-MANAZIL
MOSQUE
• Khair-ul-Manazil means, the ‘most auspicious house’.
• An inscription engraved on the centre of the façade of the
prayer hall states that it was constructed in 1561 CE by the
efforts of Maham Angah, one of the influential wet nurses
of Mughal emperor Akbar.
• The construction of the mosque was supervised by Shiha-
bu’d- Din Ahmad Khan, a powerful noble of Akbar’s court
and relative of Maham Angah.
►Architecture
• The mosque with attached courtyard is made of rubble
masonry and covered with plaster.
• The façade of the prayer hall was profusely decorated with
coloured plaster and glazed tiles.
• The finial of the dome resembles that of the Qila-e-Kuhna
mosque in Purana Qila.
• The mosque represents a leading example of mosque cum
madarsa of early Mughal period.
SHER SHAH GATE
• The Sher Shah Gate is situated towards the north of Khair-
ul-Manazil Masjid.
• This Gate is believed to be the entrance to the extensive
city of Delhi built by Sher Shah, in front of his citadel of
Purana Qila.
• Another gate on the periphery of Sher Shah’s city is said to
be the Kabuli or Khuni Darwaza. It is also known as Lal
Darwaza as it is clad with Red Sandstone.
• The double storey, imposing gateway is constructed of
rubble masonry and externally encased with grey
quartzite and red sandstone.
• The spandrels of the gateway arch as also of the main arch
are decorated with medallions and marble inlay.
RED FORT, DELHI
• The Red Fort Complex was built as the palace fort of
Shahjahanabad – the new capital of the fifth Mughal
125
 History, Heritage & Culture
Emperor of India, Shah Jahan. It was completed in the
year 1648.
• It is adjacent to an older fort, the Salimgarh, built by
Islam Shah Suri in 1546, with which it forms the Red Fort
Complex.
• The fort is famous for its massive enclosing walls made of
red sandstone.
• The interiors of the fort are decorated with white
marble, inlay works and pietra dura.
►Architectural planning and influences
• The planning of the palace is based on Islamic
prototypes, but each pavilion reveals architectural
elements typical of Mughal building, reflecting a fusion of
Persian, Timurid and Hindu traditions.
• Form the Lahore Gate, a visitor has access to the Chatta
Chowk (vaulted arcade) which as once a royal market
and housed court jewellers, miniature painters carpet
manufacturers, workers in enamel, silk weavers and
families of specialized craftsmen.
• The road from the royal market leads to the
Nawabarkhana (band house) where the royal band
played five times a day.
• The Diwan-e-Aam is the Red Fort's hall of public audience
which is built of sandstone and covered with shell plaster
polished to look like ivory.The most imposing feature of
the Diwan-e-Aam is the alcove in the back wall where
the emperor sat in state on a richly carved and inlaid
marble platform. In the recess behind the platform are
fine examples of Italian pietra-dura work.
• The Diwan-e-Khas was the hall of private audience. It is a
pavilion of white marble supported by intricately carved
pillars. Richly decorated with flowers of inlaid mosaic work
of cornelian and other stones, the Diwan-e-Khas once
housed the famous Peacock Throne, which was then
plundered by Nadir Shah in 1739.
• The Red Fort’s innovative planning and architectural style,
including the garden design, strongly influenced later
buildings and gardens in Rajasthan, Delhi, Agra and further
afield.
SURANGA BAWADI
• Suranga Bawadi is an integral part of the ancient Karez
system of supplying water through subterranean
tunnels.
FOCUS| JUNE 2020 | RAU’S IAS
• It was built during Adil Shahi era in Karnataka’sand is
now set to get funding for restoration.
• The monument has been selected under the “Ancient
Water System of the Deccan Plateau” by the World
Monuments Fund (the NGO), which monitors restoration
of ancient monuments across the globe.
• With this, the Suranga Bawadi is expected to get funds for
restoration within the next two years.
• The NGO would also coordinate with the authorities
concerned for restoration and create awareness on its
importance.
• The World Monuments Fund works in collaboration with
the local stakeholders, including the district
administration, the Archaeological Survey of India and
local explorers of ancient monuments, in highlighting the
need for restoration of ancient monuments.
• In this case, it will be working on the ancient water system
‘Karez’.
ABOUT KAREZ SYSTEM
• It is believed to be one of the best ancient water systems
in the world.
• According to historians, the Adil Shahis built the Karez
underground water system in the 16th century to supply
water to Vijayapura in Karnataka.
• The Karez system was built in the 16th century by Ali Adil
Shah–I.
• His successor, Ibrahim Adil Shah–II, brought in several
changes by adding more structures to strengthen it.
• The Adil Shahis built the magnificent underground system
to supply water to the city, which had a population of
nearly 12 lakhs then.
BIBI KA MAQBARA
• Bibi Ka Maqbara is the famous 17th century Mughal-era
monument in the city of Aurangabad, Maharashtra.
• It was commissioned by Emperor Aurangzeb in 1660 in
the memory of his wife Dilras Banu Begum.
• The structure is also known as the ‘Taj of the Deccan’
because of its striking resemblance to the Taj Mahal.
• Its domes and minarets are built in marble.
126
 History, Heritage & Culture

PHUTI MASJID ARCHAEOLOGICAL

• Phuti masjid is located in the city of Murshidabad, Bengal
and it was built under the reign of Sarfaraz Khan (Ruler
SURVEY OF INDIA (ASI)
of Bengal). • The Archaeological Survey of India (ASI), under the
• It is also known as Fouti Masjid wherein the term Fout Ministry of Culture, is thepremier organization for the
means death. archaeological researches and protection of the cultural
heritage of the nation.
• Sarfaraz Khan died soon after the construction of Phuti
masjid began. Hence, this is an incomplete monument. • The Archaeological Survey of India (ASI) was formed in
1861 under Lord Canning.
• The mosque consists of four cupolas at its corners, which
are dome like structures. • Alexander Cunningham served as its first
Archaeological Surveyor, to excavate and conserve
• The original plan of the mosque envisaged constructing
India’s ancient built heritage.
five domes, out of which only two are completed due to
the untimely death of the builder. • The major focus area is themaintenance of ancient
monuments and archaeological sites and remains of
national importance.

LALITGIRI MUSEUM • ASI regulates all archaeological activities in the country as

per the provisions of the Ancient Monuments and
• It is located in Cuttack district and it will be the third site Archaeological Sites and Remains Act, 1958.
museum of the Bhubaneswar circle of the ASI after
• It also regulates Antiquities and Art Treasure Act, 1972.
Ratnagiri and Udaygiri.
Related Information: Monuments of National Importance
• Lalitgiri was an important centre of Buddhism.
• The Archaeological Sites and Remains Act, 1958 defines
• Excavations at Lalitgiri have yielded the remains of four
an “Ancient Monument” as any structure, erection or
monasteries, showing cultural continuity from the post-
monument, or any tumulus or place of interment, or any
Mauryan period till the 13th century CE.
cave, rock-sculpture, inscription or monolith which is of
• The centre of attraction is a relic casket containing historical, archaeological or artistic interest.
corporal remains found inside the Mahastupta.
• The monument or archaeological site should not be
• “Huge sculptures of Buddha, architectural fragments of less than 100 years old.
Viharas and Chaityas arranged period-wise are found here.
• It should possess special historical, archaeological or
• The central gallery is designed after a Buddha Mandala artistic interest, making it worthy of declaration as of
with a colossal Buddha image at the centre and six
national importance.
Bodhisattva images surrounding it.
• It qualifies under specified provisions of definition of the
Ancient Monuments and Archaeological Sites and
Remains Act, 1958.
• With the addition of the 6 new monuments, the sites
under the ASI in the country has now increased to
3,693.
• Uttar Pradesh (745 monuments/sites), Karnataka (506)
and Tamil Nadu (413) have the highest number of ASI-
maintained sites.

FOCUS| JUNE 2020 | RAU’S IAS 127

 SECURITY
# GS Paper III (Main)

MISSION SAGAR
IN NEWS
India being net security provider in the Indian Ocean Region
# India and the World has sent Naval Ship ‘Kesari’ to Maldives, Mauritius,
Madagascar, Comoros and Seychelles, carrying on board two
medical assistance teams, consignments of COVID-related
essential medicines and food items.

SIGNIFICANCE shows the inclusion of Madagascar and Comoros as part

of India’s Indian Ocean vision.
• It is the first time that a single aid mission is covering all
island nations of western Indian Ocean in one go. This

FOCUS| JUNE 2020 | RAU’S IAS 128

 Security
• Move indicates salience of Indian Ocean Region (IOR) in
India’s foreign policy making. The region is getting the
same importance as immediate neighbours.
• The move conveys Indian readiness to deploy manpower
and also shows the faith in Indian expertise in these
countries.
• All assistance was extended on request and shows Delhi’s
readiness and capability to help despite challenges at
home.
• Mission cements India’s status as first responder in Indian
Ocean Region (IOR). The region is key to Delhi's Indo-
Pacific vision and also fulfils idea behind SAGAR - Security
and Growth for All in the Region.
OPERATION SANJEEVANI
# India and its Neighbourhood
IN NEWS
IAF launched `Operation Sanjeevani’ with the help of the
Indian Army. Medicines including influenza vaccines, anti-viral
drugs such as Lopinavir and Ritonavir (these two medicines are
being used in other countries to treat COVID-19) have gone to
the Maldives.
ROLE OF THE INDIAN FORCES IN HUMANITARIAN
CRISIS IN THE MALDIVES
• Operation Cactus (1988) - The Indian Armed Forces have
helped the government of Maldives in the neutralization of
the coup attempt.
• Operation Neer (2014) - India supplied drinking water to
Maldives to deal with the drinking water crisis.
• The two Advanced Light Helicopters (ALH) given by India to
the Maldivian armed forces have been used in saving
Maldivian lives.
INTEGRATED BATTLE
GROUPS
# Defence
FOCUS| JUNE 2020 | RAU’S IAS
IN NEWS
Indian Army’s new Integrated Battle Groups to be introduced
in this year.
FEATURES
• Integrated Battle Groups (IBGs) are self-contained, agile,
brigade-sized fighting units, which were proposed in one
of four studies initiated by ex-Army chief General
BipinRawat on the overall restructuring of the force.
• They are to replace the current Cold Start Doctrine, which
called for defensive corps to carry out shallow cross-
border thrusts within 72 hours for limited objectives such
as the capture of territory.
• The IBGs are to perform both offensive roles, involving
cross-border operations, and defensive roles to withstand
an enemy attack.
• Each IBG will be headed by a major general. The integrated
units for the border will be all-encompassing, with artillery,
armoured, combat engineers and signal units.
• Resources for the IBGs would depend on ‘Threat, Terrain
and Task’, and should be able to mobilise in 12 to 48 hours
based on where they are located.
• The composition of every IBG would differ on the basis of
the terrain where it is located — an IBG operating in a
desert needs to be constituted differently from one
operating in the mountains.
SIGNIFICANCE
• Enhancing command efficiency and the capacities for
rapid response and coordinated operations.
• Ensure faster punitive and defensive operations.
• The overall transformation will also see a reduction in the
size of the 1.3 million Army.
NOTE: The ‘Cold Start’ doctrine of the Indian Armed Forces
envisages swift deployment of troops on the western border
within days if a situation of a full-blown war arises. This
doctrine aims to allow Indian forces to conduct sustained
attacks while preventing a nuclear retaliation from Pakistan.
The operation would be carried out by a unified battle group
involving various branches of India’s military.
129
 Security

MILITARY ENGINEERING
• It has been made mandatory to adopt Engineering
Procurement Contract (EPC) mode for execution of all
works costing more than Rs 100 crore.
SERVICE (MES) • Introduction of modern construction plants, equipment
# Defence Personnel and machinery has been implemented by delegating
enhanced procurement powers.

Shekatkar Committee was constituted to recommend

IN NEWS measures to enhance combat capability and rebalance
defence expenditure of armed forces. It submitted its report
Recently, the Ministry of Defence has sanctioned abolition of
in 2016.
9,304 posts in the Military Engineering Service (MES).
• Optimization of Signals Establishments;
THINGS TO KNOW
• Restructuring of repair echelons in the Army;
• The Military Engineer Services (MES) is the premier
construction agency and one of the pillars of Corps of
• Redeployment of Ordnance echelons and streamlining
inventory control mechanisms;
Engineers of the Indian Army which provides rear line
engineering support to the Armed Forces. • Better utilization of Supply and Transportation echelons
and Animal Transport Units;
• It is responsible for creating the strategic and the
operational infrastructure other than major roads, as also • Closure of Military Farms and Army Postal
the administrative habitat for all three Services and the Establishments in peace locations;
associated organisations of the Ministry of Defence. • Enhancement in standards for recruitment of clerical staff
• Abolition of post is in line the with recommendations of and drivers in the Army;
the Shekatkar Committee, which had suggested measures • Defence budget should be 2.5% to 3% of the GDP;
to enhance combat capability and rebalance armed forces’
• Improving the efficiency of the National Cadet Corps.
expenditure.

• It was aimed at making the MES an effective organisation

with a leaner workforce, well equipped to handle complex
issues in the emerging scenario in an efficient and cost- DEFENCE TESTING
INFRASTRUCTURE
effective manner.

SHEKATKAR COMMITTEE SCHEME

# Defence # Committee # Defence

IN NEWS
IN NEWS
The Ministry of Defence approved Rs 400 crores for Defence
Government implements Shekatkar Committee recomme-
Testing Infrastructure Scheme.
ndations related to creating border infrastructure.
BACKGROUND
On the matter related to creating border infrastructure,
the Government has implemented following • Under “Make in India”, the Government has accorded high
recommendations: - priority to development of manufacturing base of Defence
and Aerospace sectors in the country to reduce
• To outsource road construction work beyond optimal
dependence on imports. Towards this, Government has
capacity of Border Roads Organisation (BRO).

FOCUS| JUNE 2020 | RAU’S IAS 130

 Security

MP-IDSA
announced establishment of Defence Industrial Corridors
(DICs) in Uttar Pradesh and Tamil Nadu.

• One of the main impediments for domestic defence # Defence Studies

production is lack of easily accessible state-of-the-art
testing infrastructure. Defence Testing Infrastructure is
often capital intensive requiring continuous upgradation
and it is not economically viable for individual defence
industrial units to set up in-house testing facilities.
• The Scheme aims at setting up of Greenfield Defence
Testing Infrastructure (required for defence and aerospace
related production), as a common facility under private
sector with Government assistance mainly in DICs.
OBJECTIVE
The objective of the proposed Scheme is to promote
indigenous defence production, with special focus on
participation of MSMEs and Start Ups by bridging gaps in
defence testing infrastructure in the country. Setting up of
Defence Testing Infrastructure will provide easy access and
thus meet the testing needs of the domestic defence
industry.
ABOUT THE SCHEME
IN NEWS
The Union Defence Minister presided over first ever virtual
Executive Council (EC) meeting of Manohar Parrikar Institute
for Defence Studies and Analyses (MP-IDSA).
MP-IDSA
• It is a non-partisan, autonomous body dedicated to
objective research and policy relevant studies on all
aspects of defence and security.
• It was formerly known as Institute for Defence Studies and
Analyses (IDSA).
• It was established as a registered society in New Delhi on
November 11, 1965.
• Its mission is to promote national and international
security through the generation and dissemination of
knowledge on defence and security-related issues.

• The Scheme would run for the duration of five years and
envisages to setup six to eight new test facilities in
partnership with private industry.
EVENTBOT
• This will facilitate indigenous defence production, # Cyber Security
consequently reduce imports of military equipment and
help make the country self-reliant.
IN NEWS
• The projects under the Scheme will be provided with up to
75 percent government funding in the form of ‘Grant-in- As per the advisory issued by the Computer Emergency
Aid’. The remaining 25 per cent of the project cost will have Response Team of India (CERT-In), Android users who use
to be borne by the Special Purpose Vehicle (SPV) whose mobile banking might be vulnerable to a new malware called
constituents will be Indian private entities and State ‘EventBot’.
Governments. • This new malware steals personal and sensitive
• The SPVs under the Scheme will be registered under information.
Companies Act 2013 and shall also operate and maintain • The Trojan virus may masquerade as a legitimate
all assets under the Scheme, in a self-sustainable manner application such as Microsoft Word, Adobe flash and
by collecting user charges. others using third-party application downloading sites to
• The equipment/systems tested will be certified as per infiltrate into victim device.
appropriate accreditation. • It is a mobile-banking Trojan and info-stealer that abuses
• While majority of test facilities are expected to come up in Android's in-built accessibility features to steal user data
the two Defence Industrial Corridors (DICs), the Scheme is from financial applications, read user SMS messages and
not limited to setting up Test Facilities in the DICs only. intercept SMS messages, allowing malware to bypass two-
factor authentication.

FOCUS| JUNE 2020 | RAU’S IAS 131

 Security

• The new virus targets over 200 financial applications which IN NEWS
includes banking applications, money-transfer services and
Smiling Buddha - India is observing the 46th anniversary of its
cryptocurrency wallets, or financial applications based in
first nuclear test in Rajasthan's Pokhran.
the US and Europe region at the moment. However, CERT-
In claims that some of their services may affect Indian
users as well.

• The virus "largely targets financial applications like Paypal

Business, Revolut, Barclays, UniCredit, CapitalOne UK,
HSBC UK, TransferWise, Coinbase, paysafecard etc.,"

• So far, the virus has not spotted on any Google Playstore

application but it can use third party app markets to mask
themselves and enter operating systems.

• Once the virus has entered the device it can retrieve

notifications about other installed applications and read
contents of other applications.

• Over the time, it can also read Lock Screen and in-app PIN
that can give attacker more privileged access over victim
device.
KEY FACTS
COUNTERMEASURES ISSUED BY CERT-IN
• The test was conducted on May 18, 1974 under the
• Do not download and install applications from untrusted
supervision of Raja Ramanna, who was then the director of
sources like unknown websites and links on unscrupulous
India's premier nuclear research institute Bhabha Atomic
messages.
Research Centre (BARC).
• Install strong AI (artificial intelligence) powered mobile
antivirus. • The test was named 'Smiling Buddha' because it was

• Prior to downloading or installing apps (even from Google
Playstore), always review the app details, number of
downloads, user reviews, comments and the 'additional
information' section.
• Avoid using unsecured, unknown Wi-Fi networks.
NOTE
Computer Emergency Response Team of India (CERT-In),
the national technology arm to combat cyber-attacks and
guard the Indian cyber space. It is under the Union Ministry
of Electronics and Information Technology.
conducted on Buddha Purnima that year.
• With this feat, India became the first country outside the
five permanent United Nations Security Council (UNSC)
members to conduct the test.
NOTE
• After the 1974 tests, nuclear test was conducted by India in
May 1998 under codename 'Operation Shakti'. It was also
called Pokhran II and was a series of 5 tests of nuclear
bombs.

• The National Technology Day is observed on 11 May

SMILING BUDDHA commemorating the nuclear tests conducted at Pokhran in

1998 that symbolised successful achievements of home
# Nuclear Test grown technologies and stressed the need for self-reliance
in critical areas.

FOCUS| JUNE 2020 | RAU’S IAS 132

 Security

EXERCISE PITCH BLACK ASIAN SECURITY

# India and the World #Defence Exercise CONFERENCE
# India and the World
IN NEWS
Exercise Pitch Black is a biennial multi-national large force
IN NEWS
warfare exercise hosted by the Royal Australian Air Force
(RAAF).For the first time the Indian Air Force(IAF) participated The government postponed Asian Security Conference amid
in Exercise Pitch Black 2018 (PB-18). Coronavirus scare.

• The Government of India cancelled an annual conference

INDIA AND AUSTRALIA - DEFENCE AND STRATEGIC
ENGAGEMENT
• The defence and strategic engagement with Australia has
steadily gone up in recent years especially on the bilateral
front with naval cooperation at the forefront for e.g. the
bilateral naval exercise AUSINDEX.
• The Mutual Logistics Support Agreement (MLSA) has
been long pending and is expected to be concluded soon
as well as a broader maritime cooperation agreement
held by one of its major think-tanks, the Institute of
Defence Studies and Analysis (IDSA).
• The Asian Security Conference hosted by the IDSA annually
was marking its 21st year.
• The conference aims to bring together a range of experts,
scholars, ex-policy makers, industry leaders and strategic
planners to discuss the various facets of conflict, warfare
and conventional and unconventional threats, by high-
lighting implications for defence planning in an era of

including the Maritime Domain Awareness (MDA) to strategic uncertainty.

elevate the existing strategic partnership.

• Recently, Australian made a pitch for trilateral cooperation

among India, Australia and Indonesia to “identify new ways
SIPRI REPORT
that our three countries can collaborate to be the best # Report
possible custodians of the Indian Ocean”.

• The defence cooperation between India and Australia is

IN NEWS
underpinned on the Memorandum on Defence
Cooperation 2006, the Joint Declaration on Security India, China among top three military spenders in 2019 - SIPRI
Cooperation 2009 and the bilateral Framework for Security report. The annual report ‘Trends in World Military
Expenditure, 2019’ was released by a Swedish think tank,
Cooperation 2014.
Stockholm International Peace Research Institute (SIPRI).
• Joint work in the Indian Ocean Rim Association (IORA)
KEY FINDINGS
have promoted regional engagement in diverse fields such
as maritime safety and security, trade and investment, • The top five largest spenders — U.S.A., China, India,
Russia and Saudi Arabia — accounted for 62% of the global
fisheries and science and technology cooperation.
expenditure.
• Partnering to strengthen the Indian Ocean Naval
• The global military expenditure rose to $1917 billion in
Symposium (IONS), of which Australia has been the chair
2019 with India and China emerging among the top three
since March 2014.
spenders. China’s military expenditure reached $261
NOTE: The next edition of Pitch Black is scheduled in 2022. billion in 2019, a 5.1% increase compared with 2018, while
India’s grew by 6.8% to $71.1 billion.

FOCUS| JUNE 2020 | RAU’S IAS 133

 Security
• India’s tensions and rivalry with both Pakistan and China
are among the major drivers for its increased military
spending.
• The $71.1 billion spent by India on defence in 2019 was
2.4% of its Gross Domestic Product (GDP). India was at the
fourth position in 2018 with Saudi Arabia at the third.
• Global military spending in 2019 represented 2.2% of the
global GDP and this was an increase of 3.6% from 2018
and the largest annual growth in spending since 2010.
• In Asia and Oceania, other than India and China, Japan and
South Korea were the largest military spenders
respectively.
IN CONTEXT TO INDIA
• Stating that India’s expenditure in 2019 was 6.8% more
than that in 2018, the report says the country’s military
expenditure has risen significantly over the past few
decades. “It grew by 259% over the 30-year period of
1990–2019, and by 37% over the decade of 2010–19.
However, its military burden fell from 2.7% of GDP in 2010
to 2.4% in 2019.”
• While India’s defence spending excluding pensions, which
constitute a significant part, has been growing in absolute
terms, it has been going down as a percentage of its GDP
as noted by the report. For instance, the defence allocation
in the latest budget for 2020-21 which was ₹3.37 lakh
crore, excluding defence pensions, accounts for about
1.5% of the country’s GDP, the lowest in recent times.
TOUR OF DUTY
# Defence
IN NEWS
In a first of its kind proposal. the Army plans to take civilians
on a three- year ‘Tour of Duty’ (ToD) or ‘three-year short
service’ on a trial basis to serve in the force as both officers
and other ranks initially for a limited number of vacancies and
then expanded later.
SIGNIFICANCE
• The scheme would benefit those who did not want a full
career in the Army but still wanted to put on the uniform.
FOCUS| JUNE 2020 | RAU’S IAS
• Individuals who opted for ToD would get a much higher
salary than their peers on an average who started a career
in the corporate sector and would also have an edge after
leaving the Service and going to the corporate sector.
• The proposal states that as per an initial survey,
corporates favour individuals who have been trained by
the military at 26 or 27 years of age after ToD.
• Analysing the cost of training incurred on each personnel
compared to the limited employment of the manpower for
three years, the proposal calculates that it will indeed have
a positive benefit.
• The nation and the corporates are likely to benefit from a
trained, disciplined confident, diligent and committed men
and women who have completed the ToD.
• Reduce financial burden on Army and free funds for its
modernisation.
ZERO FIR
# Security
IN NEWS
‘Zero FIR' to help victim of out-of-jurisdiction crime.
BACKGROUND
The notion of Zero FIR was introduced by the
recommendation of the Justice J. S. Verma Committee in
the Criminal Law Amendment Act, 2013 after the ghastly
Delhi rape case. The 2012 Nirbhaya case led to several legal
consequences through the Criminal Law Amendment, one of
which was the concept of Zero FIR.
• A “Zero FIR” can be registered in any police station where
the information about a cognisable offence is registered,
irrespective of whether it has got territorial jurisdiction or
not, but such FIR shall not be numbered and then be
forwarded to the police station with jurisdiction, where it
gets numbered and investigation commences.
• There are Supreme Court verdicts, where this policy of law
has been reiterated in public interest like in State of AP Vs
PunatiRamulu and others.
134
 Security

• After the Nirbhaya incident, the Union Ministry of Home information about cognisable offence may invite
Affairs has issued umpteen numbers of guidelines to the prosecution of the police officer under section 166-A of
States for registration of Zero FIR. Indian Penal Code and it may also invite departmental
action against them.”
• The Karnataka High Court held that “The police officers
should be clearly informed that the failure to comply with NOTE: There is no explicit provision in the Code of Criminal
the direction of registration of FIR and receipt of Procedure to accommodate Zero FIR.

practice questions
MCQs
Q1. ‘Shekatkar Committee’ is sometimes mentioned (b) Institute for Economics and Peace
in news in reference to (c) Reporters Without Borders
(a) Employment (b) Environment (d) World Economic Forum
(c) Finance (d) Security
Q4. ‘Asian Security Conference’ is sometimes
Q2. Consider the following pairs: mentioned in news is organised by
1. Operation Cactus Seychelles (a) Indian Ocean Naval Syposium
2. Operation Neer Mauritius (b) Indian Ocean Rim Association
3. Operation Sanjeevani Maldives (c) Institute of Defence Studies and Analysis
Which of the pairs given above is/are correctly matched? (d) NITI Aayog
(a) 3 only
(b) 1 and 2 only Q5. Zero FIR was introduced by the recommendation
(c) 2 and 3 only of the
(d) 1, 2 and 3 (a) Justice A.P. Shah Committee
(b) Justice RanjanMisra Committee
Q3. ‘Global Terrorism Index’ is sometimes mentioned (c) Justice Ramaswamy Committee
in news is prepared by (d) Justice J.S. Verma Committee
(a) Amnesty International

Answers to above MCQs: 1 (d), 2 (a), 3(b), 4(c), 5 (d)

FOCUS| JUNE 2020 | RAU’S IAS 135

 Part TWO

Ethics, Integrity
& Aptitude
Coverage from varied sources
 Ethics, Integrity & Aptitude
ENVIRONMENTAL ETHICS
#Ethics #Environment
JUNE 5th IS THE WORLD ENVIRONMENT DAY
CONTEXT: One of the positives that emerged due to COVID-19
lockdown across the world is improvement in environment
across the world. Before the start of the COVID-19 pandemic,
the air around us deemed very toxic to breathe due to the
amount of greenhouse gases that had been emitted over the
centuries. The Earth faced rising temperatures, which in turn
led to the melting of glaciers and rising of sea levels.
Environmental degradation was happening fast due to the
depletion of resources such as air, water and soil. But after the
coronavirus lockdown commenced, there have been changes in
the environment.
This clearly shows that Earth has the power to heal but greed
for more and more unlimited economic growth in a planet of
limited resources is proving detrimental. Majorly, the world
has yet to make sustainable development as its utmost
priority. US, the largest economy in the world has withdrawn
from Paris Climate Agreement.
POST-COVID WORLD: HAVE WE LEARNT OUR LESSONS TO
RESPECT THE ENVIRONMENT OR IS THIS CHANGE SHORT
LIVED?
ONGOING TUSSLE: ECONOMIC GROWTH VS. ECOLOGICAL
SUSTAINABILITY
FOCUS| JUNE 2020 | RAU’S IAS
• The environmental Kuznets curve (EKC), shows the
relationship between economic progress and
environmental degradation through time as an economy
progresses.
• It describes that as countries develop initially, pollution
increases. But later, as the economy achieves further
development, pollution decreases.
• Empirical studies show that usually environmental factors
like water, air etc. shows this path for several countries.
Following diagram shows that relationship between
economic development and level of economic
degradation.
• The curve is known after economist Simon Kuznets who
made a well-known study about the relationship between
inequality and economic development.
• In that study also, the relationship between inequality
and economic development gives an inverted U shape;
showing an increase in inequality first with economic
development and then, inequality decreases with further
development and per capita income.
Question: Should we keep on polluting till all the countries in
the world achieve standardised development? Will it not be
too late for the planet and the entire existence?
CURRENT SCENARIO: In the initial days of the nationwide
lockdown, social and print media were flooded with
photographs of blue skies and clearer water bodies. Images
of peaks of lower Himalayas visible from rooftops in
Jalandhar gained traction on the internet. Several cities in
India recorded over 60 per cent drop in air pollution levels
but emergence from lockdown will lead to revival of
economic activities as fast as possible with chances of
overlooking environmental concerns.
Now public transport and industrial production as well as
infrastructure projects have already started in some parts —
reportedly with social distancing and personal hygiene
norms. Domestic flights, too, resumed on May 25.
137
 Ethics, Integrity & Aptitude
On the road towards a quick economic revival, however,
environmental concerns seem secondary. In the last few
months of lockdown, a large number of infrastructure
projects were stealthily given clearance. Some of these
included the Etalin Hydro project in the Arunachal Pradesh’s
Dibang Valley, a highway project expected to cut through the
Mahavir Wildlife Sanctuary in Goa and the Central Vista
project in New Delhi. In all the cases, the recommendations
and grants came through video conferencing without crucial
component of site inspection.
In Telangana, the State Environmental Impact Assessment
Authority granted clearance to 55 projects in one sitting after
the lockdown was partially lifted in the state. The Vizag-based
LG Polymers Pvt Ltd devastating gas leak is a classic example
of lax environmental compliance with catastrophic
consequences.
The final blow was allowing open-access auctioning of coal
mines as a part of the fiscal stimulus to cushion economic
shocks of COVID-19. Such quick clearances are bound to have
a detrimental effect on the local air quality and larger flora
and fauna of the area.
This shows that given priority is to continue with same
model of voracious and unsustainable economic growth
with least concern for the environment. More the
degradation of environment can bring more health hazards
and even emergence of new and frequentviral attacks and
diseases.
COMMON VISIBLE PATTERN OF ENVIRONMENT
DEGRADATION
FOCUS| JUNE 2020 | RAU’S IAS
STRENGTHENING ENVIRONMENTAL ETHICS
►QUESTIONS FOR OURSELVES
1) Is it important for us to preserve nature for the future
generation? If so, are we even making an effort to do
that?
2) Is the human race alone important on the face of this
earth? If not, then aren't our actions proving otherwise?
3) What would happen if animals, plants, and other species
are destroyed or there are more and more endangered
species? Would we be affected or would we care?
4) Are our future generations entitled to a clean and green
environment? Do they even have a right?
5) Is it right for us to be responsible for the extinction of
certain species only for the sake of our consumption
and greed?
6) Is it our moral right to keep on clearing rain forests for
the sake of human consumption?
7) In spite of knowing that gasoline run vehicles lead to the
destruction of natural resources, is it right for us to
continue manufacturing and using them?
8) Are the guidelines which are drawn to protect the
environment and nature effective? What is causing their
failure?
9) Is there a need to reform the way in which we deal with
protection laws and clauses?
10) What is environmental pollution and pollution of the air,
soil and water doing to the world?
ENVIRONMENTAL ETHICSis thus like the questioning post,
it chooses to question the human race about certain key
factors that are associated with environmental issues. They
hope to make the human race aware that they are not the
only ones who inhabit the planet and that there are other
species as well that need to be looked after and taken into
consideration before mindlessly hogging the entire planet for
themselves.
THINGS TO UNDERSTAND
Definition of Environmental Ethics:It is the discipline that
studies the moral relationship of human beings to, and also
the value and moral status of, the environment and its
nonhuman contents.
Coincides with the definition of education: Rabindranath
Tagore gave a definition on ‘Education’ which coincided with
138
 Ethics, Integrity & Aptitude
Environmental ethics. The definition is:“The highest education
is that which does not merely give us information but makes our
life in harmony with all existence”.
Elaboration: The definition of environmental ethics rests on
the principle that there is an ethical relationship between
human beings and the natural environment. Human
beings are a part of the environment and so are the other
living beings.
When we talk about the philosophical principle that guides
our life, we often ignore the fact that even plants and animals
are a part of our lives. They are an integral part of the
environment and hence cannot be denied their right to live.
Since they are an inseparable part of nature and closely
associated with our living, the guiding principles of our life
and our ethical values should include them. They need to be
considered as entities with the right to co-exist with human
beings.
EMERGENCE OF ENVIRONMENTAL ETHICS
• The Earth Day celebration of 1970 was one of the factors
which led to the development of environmental ethics as a
separate field of study.
• This field received impetus when it was first discussed in
the academic journals in North America and Canada.
Scientists like Rachel Carson and environmentalists who
led philosophers to consider the philosophical aspect of
environmental problems, pioneered in the development of
environmental ethics as a branch of environmental
philosophy.
• Today, environmental ethics is a widely discussed topic. It
covers aspects such as ethical principles that guide our use
of natural resources, our duty to take efforts towards
environmental protection, and our moral responsibility
towards animals.
Prevalence of (Twin) THOUGHT PROCESSES
First: Instrumental Value
“Anthropocentric point of view”
• An important point that the field of environmental ethics
is concerned with, is whether non-human beings only
have an instrumental value or whether they also have an
intrinsic value. Aristotle said that "nature has made all
things specifically for the sake of man", which means non-
FOCUS| JUNE 2020 | RAU’S IAS
human beings only have an instrumental value; they are
meant to serve as 'instruments' for human beings.
• From an anthropocentric point of view (which lays
emphasis on human beings), the use of other living
elements in nature by humans is only right. Causing them
harm or destroying them is wrong only because it
eventually affects human life.
• With this view, cruelty to animals is wrong because it
develops insensitivity, and not because animals should
not be harmed. Or the felling of trees is wrong because it
eventually causes loss of food sources for humans, and
not because it is simply unethical.
Second: Intrinsic Value
“Eco-centrism”
• A key figure in modern environmental ethics was Aldo
Leopold, an American author, scientist, environmentalist,
ecologist, forester, and conservationist, who focused on
Eco-centrism.
• Eco-centrism deems the whole ecosystem as important as
opposed to anthropocentrism that believes humans to be
the most important in the universe.
• According to eco-centrism, there are no existential
differences between the human and non-human entities
in nature, which means humans are not more valuable
than any other component of the environment. Humans
as well as plants, animals, and other constituents of
nature have an inherent value.
• Theologian and environmental philosopher Holmes
Rolston III says that protection of species is our moral
responsibility as they have an intrinsic value. In his view,
the loss of a species spells disrespect to nature's process
of speciation. According to him, biological processes
deserve respect. Thus, any action that translates into
disregard for the environment is unethical.
• The concept of plant rights is worth discussing in this
context. Philosopher Paul Taylor is of the view that plants
have intrinsic value and that they are entitled to respect
but not rights. In his 1972 paper "Should Trees Have
Standing?", Christopher D. Stone said that if corporations
can be assigned rights, so should trees.
Emerging concept: The emerging concept of environmental
ethics brings out the fact that all the life forms on Earth have
139
 Ethics, Integrity & Aptitude
the right to live. By destroying nature, we are denying the life
forms this right. This act is unjust and unethical.
The food web clearly indicates that human beings, plants,
animals, and other natural resources are closely linked with
each other. All of us are creations of nature and we depend
on one another and the environment.
Respecting the existence of not just other humans but
also the non-human entities, and recognizing their right
to live is our primary duty. With environmental ethics,
morality extends to the non-human world.
ACTIONS CONTRADICTORY TO ENVIRONMENTAL ETHICS
Voracious consumption of Natural Resources: Our natural
environment is not a storehouse to rob resources from. It is a
reserve of resources that are crucial to the existence of life.
Their unscrupulous depletion is detrimental to our well-
being. We are cutting down forests for making our homes.
Our excessive consumption of natural resources continues.
The undue use of resources is resulting in their depletion,
risking the life of our future generations. Is this ethical? This
is an environmental ethics issue.
Destruction of Forests:When industrial processes lead to
destruction of resources, is it not the industry's responsibility
to restore the depleted resources? Moreover, can a restored
environment make up for the original one?
Mining processes disrupt the ecological balance in certain
areas. They harm the plant and animal life in those regions.
Slash-and-burn techniques are used for clearing land, that
leads to the destruction of forests and woodland. The land is
used for agriculture, but is the loss of so many trees
compensated for?
Environmental degradation:Many human activities lead to
environmental pollution. The rising human population is
increasing the demand for nature's resources. As the
population is exceeding the carrying capacity of our planet,
animal and plant habitats are being destroyed to make space
for human habitation. Huge constructions (roads and
buildings for residential and industrial use) are being made at
the cost of the environment. To allow space for these
constructions, so many trees have to lose their lives. The
animals that thrive in them lose their natural habitats and
eventually their lives. However, the cutting down of trees is
seldom even considered as loss of lives. Isn't this
unethical?
FOCUS| JUNE 2020 | RAU’S IAS
Poor solid waste management, plastics and polythene pile
ups, clogging of drains and water bodies, impacting even
remote oceanic islands.
Harm to Animals: Due to habitat loss, animals may enter
human settlements, thus posing a threat to the people living
there. In some cases, these animals are killed. Secondly,
animals serve as food sources of humans, for which they are
killed. Also, animal studies cause harm to animals and even
their deaths. This destruction has led to the extinction of
many animal species. The reduction in the populations of
several other animal species continues.
How can we deny the animals their right to live? How are we
right in depriving them of their habitat and food? Who gave
us the right to harm them for our convenience? These are
some of the ethical environmental issues that need to be
addressed.
APPLICATION OF ENVIRONMENTAL ETHICS
In these uncertain times, we need to look ahead and work
towards creating a better world. Emissions reductions are
urgently needed, but while a pandemic and the resultant
global shutdown have shown a drastic way that this can be
achieved, it is not a sustainable path nor what anyone would
ever wish to have happened. But how do we move forward?
That is the question for society to address in the coming
weeks and months. In this regard, the ThreeTHINGS THAT
WILL DETERMINE HOW WE AS A SOCIETY CAN BRING A
POSITIVE CHANGE are given below:-
First: Internal Consciousness
For that, there is no better place to look than our glorious
past. Respect for nature is at the core of India’s traditions.
The Atharvaveda contains the Prithvi Sukta, which contains
unparalleled knowledge about nature and the environment.
It is beautifully written in Atharvaveda: Salutations to Mother
Earth. In Her is woven together Ocean and River Waters; in
Her is contained Food which She manifests when ploughed;
In Her indeed is alive all Lives; May She bestow us with that
Life.
The ancients write about the Panch Tatvas – Prithvi (Earth),
Vayu (Air), Jal (Water), Agni (Fire), Akash (Sky) – and how our
life systems are based on the harmonious functioning of
these elements. The elements of nature are manifestations of
divinity. Mahatma Gandhi wrote extensively on the
140
 Ethics, Integrity & Aptitude
environment and even practised a lifestyle
compassion towards the environment was essential. He
propounded the Doctrine of Trusteeship, which places the
onus on us, the present generation, to ensure that our
coming generations inherit a clean planet. He called for
sustainable consumption so that the world does not face a
resource crunch.
Leading lifestyles that are harmonious and sustainable are a
part of our ethos. Once we realise how we are flag bearers of
a rich tradition, it will automatically have a positive impact on
our actions.
Second: Need for public awareness
The second aspect is public awareness. We need to talk,
write, debate, discuss and deliberate as much as possible on
questions relating to the environment. At the same time, it is
vital to encourage research and innovation on subjects
relating to the environment. This is when more people will
know about the pressing challenges of our times and ways to
mitigate them.
When we as a society are aware of our strong links with
environmental conservation and talk about it regularly, we
will automatically be proactive in working towards a
sustainable environment.
Third: pro-activeness in actions
► INDIVIDUAL ACTIONS
# BECOME BEAT POLLUTION GURU
Which of these actions are you willing to take?
1) Never throw rubbish, chemicals or solvents in drains
and sewers.
2) Stop using disposable shopping bags and other single-
use plastic
3) Never burn waste and minimise burning of wood.
4) Let my electronics be used longer, then dispose of them
responsibly.
5) Compost and recycle
6) Use public transport, carpool, cycle or walk.
7) Eat less meat and more organic and unpackaged foods.
8) Refuse to buy cosmetics with microbeads.
FOCUS| JUNE 2020 | RAU’S IAS
where 9) Choose natural cleaning products and lead-free paints.
10) Use pesticides and fertilisers more efficiently and
choose natural alternatives.
11) Use clean technologies to light and power home
12) Collect and use rain water.
Finally, take a pledge to teach a younger person to
protect the environment
There's an old saying: "If you give someone a fish, he can eat
for a day. If you teach someone to fish, he can eat for a
lifetime." The same is true when it comes to protecting the
planet — we need to ensure that future generations are given
the tools to sustain themselves. Share the good information
you get at work or school with a younger person. Invite
experts to speak at your church or community groups. And
don't forget to teach by example.
►COMMUNITY ACTIONS
# REVIVING THE SPIRIT OF ‘CHIPKO MOVEMENT’
The movement's biggest triumph was opening the eyes of
people to their rights to forests, and how grass roots activism
can influence policy-making regarding shared natural
resources.
In 1973, villagers in Uttar Pradesh’s Chamoli district (now
Uttarakhand) took to hugging trees to prevent their felling at
the hands of contractors and to protect trees from the
deforestation that accompanied rapid industrialisation in the
years following independence.
The word 'chipko', which means to hug, soon became the
name of the eponymous movement, and the catchphrase for
environmentalists the world over. However, the practice of
embracing trees, both literally and figuratively, predate the
Chipko movement. The Bishnoi community in Rajasthan were
the pioneers in protecting forest resources.
The first Chipko movement in independent India took place in
April 1973 in the upper Alakananda valley, where the
government of Uttar Pradesh had allotted a plot of land
inside forest territory to a manufacturer of sports goods.
With aid from a non-governmental organisation, DGSS (Dasoli
Gram Swarajya Sangh), the women of the village united under
Chanda Prasad Bhatt and adopted the strategy of hugging
trees to protect them from the men contracted to clear the
forest. By putting their bodies on the line, many trees were
saved by the heroics of the women who formed human
141
 Ethics, Integrity & Aptitude

chains around them. They ensured that the forest would
remain inviolable unless the men resorted to bloodletting.
Since the leaders and proponents of the Chipko movement
were mainly rural women, it came to be identified with eco-
feminism.
in influencing natural resource policy. Other notable green
warriors include Sunderlal Bahuguna, a Gandhian activist and
philosopher, who was instrumental in garnering the support
of Indira Gandhi, then Prime Minister of India, in enacting a
law to ban the felling of trees in ecologically sensitive forest

This instance of successful grassroots activism soon spilled lands. He also coined the Chipko slogan: 'ecology is

over into other parts of the country, and became a means of permanent economy'.

►GLOBAL COLLECTIVE ACTION: Paris Climate Talks

To achieve the Paris climate goals, the private sector and sub-
national governments need to fill the void left by unambitious
national government efforts. A new report by the Climate
Group and CDP (previously known as the Carbon Disclosure
Project), in cooperation with PricewaterhouseCoopers, shows
that state and regional governments have committed to
emissions reductions that are far more ambitious than
national governments.
States and regional governments have committed to
decarbonizing at a rate of 6.2% a year to 2050, a rate that is
roughly 3% faster than G20 governments. In recognition of
the multifaceted nature of climate change and the limits of
mitigation, 40% of the 120 sub-national governments
surveyed report action to both mitigate and adapt to climate
change.
Corporate response to climate change, though growing, is
incomplete. Although most companies in high-emitting
sectors have taken steps to explicitly recognize climate

FOCUS| JUNE 2020 | RAU’S IAS 142

 Ethics, Integrity & Aptitude
change, very few have implemented strategic management
practices such as setting long-term quantitative targets or
assigning boardroom responsibility for climate change. Many
companies are cognizant of climate risks and are adopting
risk management strategies, but they: (1) underestimate the
magnitude of the costs of physical climate change risks; (2) do
not consider risks beyond their direct operations; (3) rarely
use ecosystem-based adaptation to manage climate risks; (4)
generally do not report the costs of adaptation; and (5) lack
an appreciation for the nonlinearity of climate risks and the
potential radical action that implies.
What seems clear from the recent assessments is that we
need something a ‘whole-of economy’ approach to keep the
Paris goals in sight. The Paris Agreement will move forwards,
but to bolster its achievement and close the climate action
gap, a more concerted effort to enhance the role of non-party
stakeholders — including business and subnational
governments — is required.
Way forward: Ensuring Climate justice
While the world is talking about climate change, the call for
climate justice is also reverberating worldwide. Climate
justice is about safeguarding the rights and interests of the
poor and marginalised sections of society, who are often the
biggest sufferers from the menace of climate change.
FOCUS| JUNE 2020 | RAU’S IAS
Our actions today will have an impact on human civilisation
much beyond our time. It is up to us to take on the mantle of
global responsibility towards a sustainable future. The world
needs to shift to a paradigm of environmental philosophy
that is anchored in environmental consciousness rather than
merely in government regulations. We would like to
compliment all those individuals and organisations who are
working assiduously in this direction. They have become the
harbingers of a monumental change in our society. Together,
we will create a clean environment that will be the
cornerstone of human empowerment!
RELATED UPSC QUESTIONS
GS PAPER-IV
Q. What is meant by ‘environmental ethics’? Why is it
important to study? Discuss any one environmental issue
from the viewpoint of environmental ethics. (2015)
Q. There is enough on this earth for every one’s need but
for no one’s greed. Mahatma Gandhi. (2013)
ESSAY: We may brave human laws but cannot resist natural
laws. (2017)
143
 Ethics, Integrity & Aptitude

CASE STUDIES for Practice

MAINS GS PAPER IV
Case 1: You are an honest and responsible civil servant. You 7. We have to do our duty, ‘Nishkama karma’, irrespective of
loss or gain from our actions.
often observe the following:
8. As per Immanuel Kant as human beings we have intrinsic
(a) There is a general perception that adhering to ethical
rights and duties. It is our professional, organisational and
conduct one may face difficulties to oneself and cause
constitutional duty to adopt higher standard of moral
problems for the family, whereas unfair practices may
conduct.
help to reach the career goals.
(b) When the number of people adopting unfair means is
large, a small minority having a penchant towards ethical (b)
means makes no difference. 1. Gandhiji said that “Nobody needs to wait for anyone to
(c) Sticking to ethical means is detrimental to the larger adopt just and humane course of action”. Same message
developmental goals. is reverberated in message of Rabindranath Tagore: “Tadi
tor daksunekuenaaaashe, tabeeklechalo re” (If they
(d) While one may not involve oneself in large unethical
answer not to your call, walk alone”).
practices, but giving and accepting small gifts makes the
system more efficient. 2. Small minority having penchant towards ethical means do
make a difference. Gandhiji’s non-violent means shaped
Examine the above statements with their merits and
the whole freedom struggle. Committed bureaucrats and
demerits. (250 Words, 20)
politicians can single handedly create changes in the
(a) By adhering to ethical principle, one may face difficulties
system.
to oneself and cause problems for the family due to loss
3. Small minority, if organised, can effectively use persuasion
of opportunity for professional advancement, making
and social influence to change attitude of others. Eg:
extra money and possible strained relation with others.
environmental movements to develop environmental
However, adhering to ethical principles has huge
ethics in governance. Chipkoo movement etc.
advantage:
4. By adopting ethical means one command huge moral
1. Sense of possession and accomplishment. (Virtues, like
authority. India as a nation has developed good will and
happiness, must be desired for themselves – Aristotle)
soft-power due to ethical means in international ethics.
2. Honestly is morally uplifting. It boosts dignity and self-
5. Whole is the sum of parts. For ethical functioning of the
respect.
whole, each part, i.e. individuals must function ethically.
3. Ethical Conducts develops good will for self and family. It
Small minority is good enough to start with.
helps in role modelling and persuasion.
4. No fear and anxiety of law enforcement agency. There is
(c)
happiness in life.
1. Developmental activities may seem to get hampered by
5. In case of arrest for unethical act there is huge
sticking to ethical means due to environmental ethics,
embarrassment and loss of dignity for self and family.
inclusive development, labour welfare like higher wages,
6. Person with integrity command respect develops trust in
ethics in international trade etc.However, for sustainable
personal, social and professional sphere. He/she is
development and progress of nation ethical means have
honoured with more responsibilities and leadership
to be adopted. Larger developmental goal of a nation can
opportunity. Eg: Gandhiji due to his integrity was
only be fulfilled by fulfilling the aspiration of the people as
recognised as leader by congress working committee.
mentioned in the preamble – Justice, Liberty and Equality.

FOCUS| JUNE 2020 | RAU’S IAS 144

 Ethics, Integrity & Aptitude
2. Farmer’s welfare and prevention of suicide; tribal welfare,
minimization of displacement and rehabilitation;
environmental conservation and balanced regional
growth have to be considered for larger developmental
goals.
3. Developmental goals of a nation are dependent on good
governance and ethical governance in which ethical
means cannot be compromised.
(d) As per one school of thought small corruption bring
motivation and efficiency in administration and this is the
reason why corruption has lasted so long. When salary is
not sufficient to live decent standard of life corruption
may help in short term. However:
1. Giving and accepting small gifts develops sense of
indebtedness and desire to pay back. This cycle continues
and give and take amplifies in magnitude and extent.
2. Corruption is addictive and has demonstrative effect,
domino effect and bandwagon effect. It encourages
others to indulge in corruption and one loses one’s
authority to stop act of corruption.
3. Even small corruption destroys integrity and work culture.
Once its destroyed then protection against larger act of
corruption is destroyed.
4. Administration is like a large ship that can serve too many
people. However even a small hole will sink the whole
ship. Same is the case with corruption.
Case 2: You are aspiring to become an IAS officer and you
have cleared various stages and now you have been selected
for the personal interview. On the day of the interview, on the
way to the venue you saw an accident where a mother and
child who happen to be your relatives were badly injured.
They needed immediate help.
What would you have done in such a situation? Justify your
action.
The case presents an ethical dilemma to me where I have to
choose between my personal well-being by attending the
interview and social responsibility of helping my relative who
are accident victims.
In the present scenario, I will use my emotional intelligence
and take a prudent decision. Aristotle has said that moral
actions are mean between two extremes of excess and
FOCUS| JUNE 2020 | RAU’S IAS
deficiency. I have to control my excessive emotion of love and
affection for my relative and not allow any deficiency of sense
of social and moral responsibility. Hence, I would take
following measures:
a) If any of my family members/friend are with me, they can
attend to my accident victim relatives and I may head for
my interview.
b) I can arrange for some help (taxi-cab) and ambulance. In
the mean while attend to my relatives and provide first
aid. When help comes then I can leave for my interview.
c) Since UPSC interview will be held in city, there would be
some ‘Good Samaritans’. I can take their help for speedy
admission to hospital and responsibility thereof. I can
then quickly move for interview. When I come back, I can
attend my relatives.
If no help can come forth then I would assume all the
responsibilities myself. It is important to timely admit them
(the victims) to the hospital without losing the – Golden Hour.
My purpose of clearing civil service interview is to earn an
opportunity for public service and if I help accident victim-
relatives, I already did public service!
The Law Commission of India observes that 50% of those
killed in road accidents could have been saved had timely
assistance (- Golden Hour) been rendered to them. The
Supreme Court’s approval of guidelines issued by the Centre
for the protection of Good Samaritans at the hands of the
police or any other authority is a step forward in the right
direction. However, it is imperative to be caring and
responsible towards our fellow being which in turn will lead
to UTILITARIANISM as propounded by Jeremy Bentham.
145
 Part Three

Essays
of

the month
Selected essays from Rau’s GSI students
 ESSAY 1: SOMETIMES IT TAKES A NATURAL
DISASTER TO REVEAL A SOCIAL DISASTER
# Society
SUBMITTED BY: LOKESH SHARMA (RAU’S DELHI STUDENT)
Disclaimer: The viewpoints in the topic are
strictly personal of the writer above. The
role of Rau’s IAS Study Circle is to present
the write-up in its original form, hence the
study circle neither endorses nor rejects any
viewpoint in the submission. The purpose is only to
showcase the manner of writing.
Therefore, it is the sole responsibility of the reader to use
his/her intellect to check the veracity of viewpoints.
Disaster is a phenomenon which leads to a large scale
destruction of life and property. It has a huge impact on the
social and economic factors of the country. For instance, the
super-cyclone “Amphan” in West Bengal caused havoc and
lead to destruction of thousands of crores. Apart from
physiographical disaster such as earthquakes, cyclones or
heat waves, biological disaster such as viral pandemics have
also emerged as a threat to human existence.
The world has witnessed global pandemics such as the
Spanish influence in 1918 or the SARS in 2004. Recently, a
new pandemic named Covid-19 (SARS – Cov2) has brought
the entire world to a standstill. It is believed to have emerged
in the Wuhan Province of China and then spread across the
globe. This has led to the entire world to come in a lockdown,
halting all the economic activities worldwide. This has further
lead to widespread unemployment. Thus, this natural
disaster has revealed a social disaster which the world is
staring at.
A social disaster can be defined as a situation in which
majority of the masses find themselves devoid of any work
i.e. unemployment, which further leads to poverty, poor and
sub-standard living. The following figure describes social
disaster:
FOCUS| JUNE 2020 | RAU’S IAS
Further, this social disaster affects various sectors of the
society in varying degrees. The most vulnerable to the
adverse impacts of the social disaster are:
1. Workers in the informal sector
2. Women
3. Farmers
Impact on the Workers
The workers, especially those working in the informal sector
find themselves on the receiving end wherever any disaster
hits the country. Their vulnerability was exposed in the recent
Covid-19 pandemic. Nor did they only lose their jobs but also
found themselves without any means of survival post the
lockdown. In the absence of any government help, they were
forced to walk-back to their home states. This has led to
deaths of some workers.
Moreover, workers in the informal economy have to fight at
two fronts whenever any disaster hits them; first, as they are
the bread-earners of the house they have to work
irrespective of the dangerous conditions prevailing outside.
This need to earn exposes them more to the disaster, in this
case the Corona – Viruses. On the other end people
employed in the formal sector have the facility of work-from-
home. This reduces their exposure to such deadly viruses.
Moreover, people in informal sector are not covered under
147
 Essays OF THE MONTH
any social security measures, hence increasing their
vulnerability. All these factors push these workers into a
perpetual cycle of poverty.
Impact on Women
The role of the women in the 21st century has changed
drastically. Today, women have to fight at two fronts; first
they have to manage the household tasks and second they
also have to manage their jobs. This increased responsibility
have made them more vulnerable to the impacts of disaster.
This is because it is the women who face the threat of
unemployment the most. Further, in case of poor living
conditions it is always the women who goes to bed with a
hungry stomach. This further leads to conditions such as
anaemia or under nourishment.
Further, domestic violence is another impact of a disaster as
was evident during the recent Covid-19 pandemic. Due to the
imposed lockdown the cases of domestic violence reached its
peak during this period as highlighted by an international
study.
Impact on Farmers
Agriculture is dependent on nature and any calamity by the
nature has adverse impact on the agriculture and thereby on
the farming community. In 2019, heavy rainfall caused floods
in Maharashtra. These floods washed away all the Kharif
crops thus causing a huge loss to the farmers. The impact
was so severe that the farmers could not even get back the
principal amount that they had invested, leave aside the
profits.
Such losses push the farming community into a vicious cycle
of poverty which often ends with the farmers committing
suicide. Furthermore, the lack of penetration of institutional
sources of credit in some rural areas make the farmers
vulnerable to the local money lenders. This vulnerability leads
to instances such as forced labour which are still prevalent in
certain remote areas of India.
All these issues have bought into light the idea of welfare
state that the Constitution of India states. 70 years post-
independence some sections of the population find
themselves the most vulnerable whereas some enjoy the
perks of being born into a high class society. The policies and
approaches have widened the gap between the haves and
the have nots. Further, it seems that the idea of socialism has
FOCUS| JUNE 2020 | RAU’S IAS
taken a back-seat and capitalism has been placed in the
driver’s seat.
Thus, it has become the need of the hour to re-design our
policies and construct our framework so that the difficulties
of the vulnerable section are addressed.
In pursuit to achieve this, the first step can be to have a
bottom-up approach of governance. Such an approach shall
frame policies by focusing on the needs of vulnerable section
rather than addressing the aspirations of the capitalist class.
NITI AAYOG’s Aspirational District Programme is an example
in this direction. Second, there is a dire need to ramp up
primary and secondary health and wellness centers and
increase their penetration in the remote areas. Further, it has
to be ensured that quality medicines are available at
affordable costs.
Moreover, India needs to increase its expenditure on health
to atleast 2.5% of GDP. All these measures will ensure a
healthy population and thereby enable India to reap the
maximum benefit of its demographic dividend.
Third step in this direction is to bring the informal workforce
under some social security scheme. According to the
Economic Survey 2018-19, almost 90% of the workforce is
employed in the informal sector.
Fourth, India needs to provide employment to its vast
workforce. Currently, unemployment in India stands at 6.1%,
which is at a 45 year high. The solution to this issue is setting
up of more labour-intensive industries and simultaneously
codification of the labour laws.
Fifth, there is a dire need for India to diversify its agricultural
basket. Such diversification will have a dual benefit; first it will
rectify the skewed cropping pattern and thereby ensure
income to the farmers and second it will give a boost to the
nutritional intake. Also boost must be given to the Model
Agricultural producer and Livestock Marketing Act to help
farmers better realize the value of their products.
All these above measures will surely aid in minimizing the gap
between the haves and the have nots. Further, it shall
decrease the vulnerabilities of the lower sections of the
society thereby giving an impetus to the idea of welfarism.
148
 Essays OF THE MONTH
ESSAY 2: THE HIGHEST EDUCATION IS THAT
WHICH DOES NOT MERELY GIVE US
INFORMATION BUT MAKES OUR LIFE IN
HARMONY WITH EXISTENCE
# Social Issue
SUBMITTED BY: VISIYA NIRALI J. (RAU’S DELHI STUDENT)
Disclaimer:The viewpoints in the topic are strictly personal
of the writer above. The role of Rau’s IAS Study Circle is to
present the write-up in its original form, hence the study
circle neither endorses nor rejects any viewpoint in the
submission. The purpose is only to showcase the manner of
writing.
Therefore, it is the sole responsibility of the reader to use
his/her intellect to check the veracity of viewpoints.
Our world today may be described as an age of
confusions and tensions, both within and
outside us. A beautiful life is one that is ‘in
harmony’ with all the situations in life. It can be said that
“Harmony is a precious treasure of human life.’ Real success,
satisfaction and happiness are different facets of harmony. If
one wants to enjoy the benefits of life to the fullest, it is
necessary to develop and maintain harmony. In this context,
Rabindranath Tagore’s philosophy of education is very
relevant according to which ‘True education is in harmony
with all existence.’
In order to maintain harmony, education is a must tool which
can help in moulding and shaping the human mind, body and
character in such a manner that they may act as the means to
achieve joy and efficiency according to Gandhian perspective.
Mahatma Gandhi said that education can play the vital role in
establishment of peace not only at the national level but also
at the international level.
FOCUS| JUNE 2020 | RAU’S IAS
But today if someone having a good job, he is considered as
highly educated. We generally see parents telling their
children to study hard so that they could get a good job and
could earn money. They see education as means of getting
job, earning money and getting status symbol in society. Are
we limiting our ideas about education to these things only? Is
our education becoming purely materialistic?
Education has been the core foundation of our rich culture
and heritage for many centuries. It is a process of holistic
development of child. Due to lack of this holistic and value
added education, despite having informative and high
education, there is no stopping of personal social, political,
economical, national and global problems.
Even in past, these problems prevailed. Despite of awareness,
higher education, scientific innovation, Industrial revolutions
across globe, world has seen World War I, World War II,
nuclear attack, race for emerging as global power, etc. Also
many part of globe were victims of colonization which led to
exploitation of wealth and resources.
Today also world is witnessing lack of harmony. In society,
people fight with each other in name of religion. Minorities
get ignored. Women, Children, poor, differently abled, senior
citizens have to suffer a lot. Also there is lack of compassion
towards other living beings like plants and animals which
shows that there is no natural harmony. People are using
natural resources recklessly which is creating problem of
global warming and depletion of non-renewable natural
resources. Also there is a lack of social and political harmony
which become a big obstacle in way of nation’s development.
149
 Essays OF THE MONTH
One of the solution of these all problems is education which
is a must condition to make our life in harmony with all
existence by developing scientific temper, humanism.
Because greatly affected victims of these problems are
children. Their childhood and value added development
seems to have been disappeared. They are living in stress,
trauma and feelings of intolerance and there are many
incidents noticed of firing and attacking by children and
teenagers.
There is a need of introduction of value added education
system which include thoughts of Buddha, Mahavir and
ideology of Gandhi and Swami Vivekananda. Schools and
colleges should introduce moral and ethical education which
inculcate different values in students like honesty, integrity,
ESSAY 3: NEARLY ALL MEN CAN STAND
ADVERSITY, BUT IF YOU WANT TO TEST A
MAN’S CHARACTER GIVE HIM POWER
# Ethics
Disclaimer:The viewpoints in the topic are
strictly personal of the writer above. The role
of Rau’s IAS Study Circle is to present the
write-up in its original form, hence the study
circle neither endorses nor rejects any viewpoint in the
submission. The purpose is only to showcase the manner of
writing.
Therefore, it is the sole responsibility of the reader to use
his/her intellect to check the veracity of viewpoints.
“Power tend to corrupt,
Absolute power corrupts absolutely.”
- Lord Acton
FOCUS| JUNE 2020 | RAU’S IAS
love, happiness, generosity, empathy, truthfulness,
brotherhood and compassion towards others. These should
be the main aim of educational institutions, rather than
manufacturing degrees to students.
With education, there should also be different curriculums
which include intellectual development, natural harmony, self
realization, place for the arts, moral and spiritual
development along with social development which help
children to learn practical and realistic approach towards
their life and all other existence which makes them able to
grow as responsible and happy adults. Then only saying of
Rabindranath Tagore will become noteworthy and there will
be a new and peaceful future world.
‘Adversity’ is a state or substance of serious or continued
difficulty or misfortune. It might be a debilitating injury or
illness, or an abusive relationship or crushing poverty.
Every person face adversity in life but some use adversity for
learning lessons and transforming it into opportunity. It tests
ones character. When someone face adversity, most pressing
need is survival and nearly all can stand adversity.’
It is better to give power to someone to taste the character.
Mahatma Gandhi and Adolf Hitler faced adversities and rose
differently in their respective countries. Gandhi chose the
path of non-violence, on the other hand Hitler is hated as an
embodiment of evil responsible for genocide of millions of
Jews.
150
 Essays OF THE MONTH
Adversity and misfortune makes us more mature, humble in
life. The goal here is survival, whether a person is in injury,
prison or living in poverty. On the other hand, ‘power’ as
seducing as might seem, has succeeded in changing the
behaviour of many people. It make a person the centre of
attraction where everyone asks for favours, this makes a
person not only corrupt but also uppish and big-handed. So,
“power is referred as character tester.” Fall of “Godman” in
recent pasts shows how money, influence and power turned
them criminals. India’s biggest corporate scam, ‘ Satyam’
showed how ‘Ramalinga Raju’, founder of Satyam computers
indulged into the corrupt practices.
Power can also be misused for killing animals, spoiling
biodiversity and environment. Example – When Eskimos were
given guns by Americans, they hunted animals and spoiled
the environment and resources in the ecosystem. Today, man
with the help of technology has immense control over nature.
However, human greed is responsible for making life on
earth unsustainable by causing global warming, climate
change, pollution, shortage of portable water, etc.
Unlike adversity with only few options, power offers many
options to survive. Those having power have choices. The
more power one has, greater options are available. Power
may come along with large amount of money, a position of
authority, or physical strength, freedom to choose options.
Example – A powerful person can choose to be the ally of
other person or, make decisions that help others or hurt
others. But people with unshakable character are also there
who held power for common good. “People with good
intentions make promises, while people with good character
keep them.”
ESSAY 4: SIMULTANEOUS ELECTIONS: CAN THIS
BE A FEASIBLE OPTION FOR INDIA?
# Governance
The call for holding simultaneous elections
have grown recently and the incumbent
government has advocated holding
FOCUS| JUNE 2020 | RAU’S IAS
Mughal Emperor “Akbar” despite having enormous power
used it for welfare of his subjects and maintains religions
tolerance. Another example could be of “Gautam Buddha”
who was born in a royal family having all comforts, but he
abandoned it for the search of truth. He had so many
followers, but he never deviated and focused on finding the
cause of sorrow in the world and advocated enlightenment.
Also in present time we have officers like “U Sagyam IAS,” son
of a farmer who was first IAS to upload asset details on
district website. As a great civil servant of character, he slept
in a graveyard to guard important evidence in a multi-crore
quarrying scam of Madurai.
Many people use power to advance their own agenda and
fulfill their own selfish ends. So, it’s their power which reveals
their character not the adversity. So, question arises – how to
build such sound characters? People with sound characters
are assets to society. Such characters are developed through
moral upbringing. Gandhiji observed - “Literacy education is
of no value, if it is not able to build up a sound character”.
This character building is possible by setting up examples by
teachers, political leaders, bureaucrats, journalists, scientists,
spiritual leaders etc. Rewarding such people will create
positive influence on others.
Only a man of strong character uses power for wider social
aims. “Nothing discloses real character like the use of power.
It is easy for the weak to be gentle. Most people can bear
adversity. But if you wish to know what a man really is, give
him power. This is the Supreme test.”
simultaneous elections to Lok Sabha and State Assemblies to
utilise maximum time for governance which is otherwise lost
due to political campaigns and rallies.
151
 Essays OF THE MONTH
India got independence on 15th August, 1947, adopted its
Constitution on 26th January, 1950 and held its first general
election between October 1951 and March 1952 under the
guidance of Sukumar Sen who was the first Chief Election
Commissioner of India. It was a stupendous and colossal task
of gigantic proportion to conduct election for around 4500
seats including the Parliament and State Assemblies for the
first time in India. This process of simultaneous elections
continued till the year 1967. One thing to remember here is
that Congress governed both at the Centre and in majority of
the states and it became easy to conduct such simultaneous
elections till Congress enjoyed stupendous majority.
However, with time, clout of Congress as a political party
reduced giving rise to political instability both at the centre
and in the states. This instability and rising local demands
also led to the emergence of many regional parties across
India. This led to instability of many state governments and
slowly this process of simultaneous elections came to a pause
due to the constitutional need of having a majority in the
state assemblies. Even Lok Sabha got prematurely dissolved
in 1970 and this disrupted the chain of holding simultaneous
elections completely.
On this, let us now understand the feasibility of conducting
simultaneous polls in present times where multi-party
democracy, centre-state relations and use of technology
through social media have assumed greater importance as
compared to our distant past.
The Constitution of India establishes a two-tier government
system with the Union Government at the Centre and
respective State governments at the provinces.
Constitution has demarcated each level of government by
devising an elaborate scheme of distribution of legislative,
administrative and financial powers between the Centre and
the States. In this respect, Article 246 of the Constitution
clearly enumerates the Federal character of the Indian
Constitution. It empowers Parliament to make law under
Union List, States to make law under State List and both the
Parliament and States to make law under Concurrent List.
Thus, the Constitution through its Articles has created a
separate existence for the state government independent
from the existence of the Centre. Thus, elections are
conducted every five years in different states as per their
constitutional existence. Over the period of years, stability of
the various governments at state level has been lost.
Coalition politics have emerged slowly over a period of years
FOCUS| JUNE 2020 | RAU’S IAS
and now we are witnessing coalition government in various
states. Compulsion of coalition politics have often resulted in
premature dissolution of both Central and respective state
governments. This has led to different election years for
different states. On this note, let us understand the merits
and demerits of conducting simultaneous elections of such
gargantuan level in a culturally and topographically diverse
country.
Possible Merits: Simultaneous elections to Lok Sabha and all
State Assemblies will provide continuity, consistency and
stability in governance throughout the country. The entire
country after the completion of election process can focus on
governance for an uninterrupted period of five years. It will
reduce the massive expenditure done during elections
throughout the year. Every year some states witness
assembly elections and even the political party in power at
the Union gets involved during the election process. This
diverts much of Central Government’s time from important
national and domestic concerns and it consumes energy and
resources to ensure victory in such state assemblies.
Elections in states lead to the imposition of Model Code of
Conduct which effectively restricts introduction of new
development programmes and schemes in the state.
Irregular elections at different time of the year affect
productivity and have an adverse impact on the economy of
the nation as a whole.
If all elections to state assemblies and Lok Sabha are held at
one time, it will give a stable five-year term to the political
parties in power to focus towards implementing their political
The manifestos and government schemes. This will prove
beneficial both for the government and the public. Finally,
simultaneous election would reduce the type of manpower
and resource deployment necessary for the conduct of
elections. This will also help in controlling corruption to a
large extent as use of unaccounted money through illegal
sources such as hawala is very common. Even though
Election Commission with the help of other administrative
and regulatory bodies keeps a tight vigil, yet to do so
continuously through the year becomes burdensome. It also
deviates much of the resources and manpower into such
regulations which in general course of event can be utilised
for their regular work.
Demerits: India has a federal structure and a multi-party
democracy where elections are held for State Assemblies and
the Lok Sabha separately. The voters are better placed to
152
 Essays OF THE MONTH
express their voting choices keeping in mind the two different
governments which they would be electing by exercising their
franchise. This distinction gets blurred somewhat when
voters are made to vote for electing two types of
government at the same time, at the same polling booth,
and on the same day. When state assembly elections will be
held along with Lok Sabha, then the local issues concerning
the state may get swept by emotive issues of national
importance. Voters in such a scenario in the past have always
went for the same party whenever simultaneous elections
were held. Assembly elections are fought on local state issues
and, in the true spirit of federalism, parties and leaders are
judged in the context of their work done in the state.
Clubbing them with the general election could lead to a
situation where the national narrative submerges the
regional problems and issues. In case of simultaneous polls,
bigger political parties who are better funded have
advantage over smaller regional parties. Even the
corporates would favour a uniform government
throughout India for their benefit hence could pour their
entire fund in one or two strong national political parties. This
may act as a huge disadvantage for the smaller political
parties thereby distorting the very idea of federalism in India.
There are other situations which may arise and cannot be
pre-empted currently due to lack of practical experience. One
such instance that can happen is that due to constitutional
failure in a state, the state assembly has to be dissolved.
Then, will the state be allowed to carry on or President’s rule
under Article 356 will be imposed? Similarly, if Union
government dissolves prematurely due to coalition politics
or passing of no-confidence motion or some other reasons,
then will this amount to dissolution of all state
governments? Thus these are certain practical constraints in
having simultaneous elections. There will be other practical
difficulties in terms of logistics and movement of personnels
involved in the election process.
Recommendations of various Reports: Law Commission of
India has suggested that election of Legislation Assemblies
where term is ending six months after the General election to
Lok Sabha can be clubbed with it but election result can be
declared at the end of their tenure. This can be possible with
the cooperation of political parties.
The Standing Committee on Personnel, Public Grievances,
Law and Justice noted that the Representation of People Act,
1951 permits the Election Commission to notify general
FOCUS| JUNE 2020 | RAU’S IAS
elections six months prior to the end of the terms of Lok
Sabha and state assemblies. The Committee recommended
that elections could be held in two phases. It stated that
elections to some Legislative Assemblies could be held
during the midterm of Lok Sabha. Elections to the
remaining legislative assemblies could be held with the
end of term of Lok Sabha.
The NITI Aayog in its Three Year’s Action Agenda has
suggested that all elections in India should happen in a free,
fair and synchronised manner so as to cause minimum
campaign mode disruption to governance. In this direction,
NITI Aayog has suggested to move towards switching to a
synchronised two-phase election to the Lok Sabha. This
would require a maximum one-time curtailment or extension
of some state assemblies. To implement this in the national
interest, a focused group of stakeholders comprising
constitution and subject matter experts, think tanks,
government officials and representatives of various political
parties should be formed to work out appropriate
implementation related details. This may include drafting
appropriate constitution and statutory amendments,
agreeing on a workable framework to facilitate transition to
simultaneous elections, developing a stakeholder
communication plan and various operational details.
Any proposal to strengthen the roots of democracy is always
a welcome step and all stakeholders must be willing and
accommodative to explore options for the same. In this
respect, the proposal to introduce simultaneous elections in
India both to Lok Sabha and State Assemblies is a bold
reform and must be carried forward with the consensus of all
state assemblies. Simultaneous elections if at all possible
should be complied within the constitutional constraints and
without disturbing the federal structure of India as it is also a
Basic Structure of the Indian Constitution. However, if any
state is unwilling to come to the terms of simultaneous
elections then, the Central Government shall patiently listen
to their concerns. If the concerns are genuine, then effective
steps and alternatives must be suggested so as to bring all
stakeholders at one common platform.
153