Monthly Current Affairs February 2020

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FEBRUARY
2020
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S.No. Topic Page

No.
GS-1
1. Iranian Revolution, 1979 07
2. Hampi World Heritage site 11
3. 6th International Conference on Climate Services 13
4. Gold deposits found in Sonbhadra (Uttar Pradesh) 15
5. Vittala Temple at Hampi 16
GS-2
1. Global Health Emergency 18
2. MEA revamp 20
3. Appointments in minority-run institutions 21
4. National Seed Fund 23
5. Data Centre Parks 25
6. Revenue Deficit grants for states 26
7. Organisation of Islamic Cooperation (OIC) 29
9. CAG report on army provisioning 31
10. India extends reach in Indian Ocean Region 33
12. NCRB report on missing children and women 35
13. WHO report on cancer 37
14. Customs Act, 1962 38
15. Bhutan ends free entry for Indian tourists 41
16. UNESCO certificate for Jaipur 43
17. GST lottery offers 44
18. Direct Tax Vivad se Vishwas Bill, 2020 45
19. Banking Regulation Act, 1949 47
20. Ram Janmabhoomi Teerth Kshetra Trust 49
21. Changes in Surrogacy (Regulation) Bill, 2019 50
22. International Intellectual Property Index 51
23. Telecom Ombudsman 53
24. India-Central Asia connectivity 54
25. India- Africa Defence Ministers conclave 56
27. Accessible India Campaign (Sugamya Bharat Abhiyan) 58
28. Status report on victim compensation 60
29. Kerala mulls Vigilance cell for Health 62
30. J&K IT and Real Estate policy 2020 64
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31. States not bound to give reservations in job, promotions 66
32. Integrated Air Defence Weapon System (IADWS) 68
33. Draft National Policy on Rare Diseases, 2020 69
34. Salwa Judum 70
35. Supreme Court upholds validity of amendments in SC/ST Act 72
36. Indigenous Muslims of Assam 74
37. Sudan to handover Omar al-Bashir to ICC 76
38. Privilege Motion 77
39. Constitution (Scheduled Tribes) Order (Amendment) Bill, 2019 79
40. Manual scavenging related deaths in India 80
41. Pesticide Management Bill, 2020 81
42. Scope of Direct Tax Bill enlarged 83
43. India-Sri Lanka DTAA amended 84
44. Major Ports Authority Bill, 2020 85
45. WHO to score countries affected by COVID-19 86
46. US-Taliban Peace deal 88
47. Publish details of tainted candidates: SC to parties 91
48. USTR takes India off developing country list 93
49. Finance Commission to set up a new panel 96
50. Central Administrative Tribunal 97
51. New Textiles Policy 2020 99
52. Military Balance Report, 2020 100
53. National Institute of Public Finance and Policy (NIPFP) 102
54. Virtual Classroom and Studio scheme of Maharashtra 104
55. Remote Voting System 105
56. 5th India Russia military industry conference 107
57. National Health Mission (NHM) 109
58. Ladakh to appoint non –gazetted personnel 111
59. Delimitation Commission of India 113
60. Supreme Court Collegium System 114
62. SUTRA PIC initiative 117
63. Women Army officers eligible for permanent commission 119
64. Nadu-Nedu programme 121
65. Study on Online abuse 122
66. Tax haven 123
67. EC holds meeting on electoral reforms 124
68. Trump’s visit may seal helicopter deal 125
69. Assisted Reproductive Technology Regulation Bill, 2020 127
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70. Law Commission of India 128
71. Empowered Technology Group 129
72. Swachh Bharat Mission (Rural): 2nd phase 130
73. Pradhan Mantri Fasal Bima Yojana (PMFBY) 132
74. 100-day sister cities challenge 134
Article 371 135
75. State Human Rights Commission (SHRC) 137
76. UK’s new points-based visa system 139
77. Govt. to revive old drug manufacturing units 141
78. Competition (Amendment) Bill, 2020 143
79. U.S President Trump to visit India 145
80. India- Maldives Relations 146
81. A Future for the World’s Children? report 148
82. G20 Summit 149
83. Insolvency and Bankruptcy Code’s (IBC) track record 150
84. Possibility of India-US trade deal 152
85. Sedition cases in India : NCRB data 154
86. Asian Development Bank 156
87. India-US Comprehensive Global Strategic Partnership 157
88. Insurance Regulatory and Development Authority of India (IRDAI) 158
89. Arab Spring 160
90. National Technical Textiles Mission 162
91. Cabinet approves Surrogacy (Regulation) Bill, 2020 164
92. India-Myanmar 165
93. India to attend signing of US-Taliban peace deal 168
94. UK threatens to pull out of EU trade talks 171
95. ADR report on donation to political parties 173
96. Marathi to be compulsory in all Maharashtra schools 175
97. National Pharmaceutical Pricing Authority (NPPA) 176
98. China-Pakistan Economic Corridor 178
GS-3
1. Economic Survey on India’s economic growth 180
2. Economic Survey on entrepreneurship 182
3. Economic Survey on Privatisation 183
4. Anti-dumping duty 184
5. Commission for Agricultural Costs and Price (CACP) 186
6. Kerala islands under CRZ regime 188
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7. Foreign Portfolio Investors ( FPIs) 189
8. National Logistics Policy 191
9. Infrastructure Investment Trusts (InvITs) 193
10. Reverse Osmosis water purification technology 195
11. Locust attack in Punjab 197
12. Samurai Loan 198
13. Declining Savings Rate 199
14. Quantum computing 201
15. Global Medical Data Leak 204
16. Pollution by Thermal power plants 206
17. India’s tariff policy 208
18. RBI steps in to revive economy 210
19. Cancer genes mutation mapped 212
20. Genome India Project 214
21. GST rates to be revised yearly 216
22. Li-ion battery 218
23. Three-dimensional Variational Data Analysis (3DVAR) 221
24. Convention on Conservation of Migratory Species (CMS) 222
25. Solar Orbiter Mission 225
26. Indian pilots begin astronaut training in Russia 227
27. RBI to set up new umbrella entity (NUE) 228
28. Sovereign Credit Rating 230
29. Future of Earth, 2020 report 231
30. Energy Neutral railway station 233
31. Adjusted Gross Revenue (AGR) dues of telecos 234
32. Indian pangolin 236
33. Bank Frauds in India 237
34. GISAT-1 satellite to be launched 239
35. Wayanad Wildlife Sanctuary (WWS) 240
36. Kashi Mahakal Express 241
37. Google’s Station programme 243
38. State of India’s Birds 2020 (SoIB) report 245
39. Steps taken by the office of Chief of Defence Staff (CDS)x 247
40. Karbis against ST status for hill Bodos in Assam 249
41. Foodgrain production set to touch a record high 251
42. The link between small savings and deficits 253
43. Pledging of Shares 255
44. Force Majeure Clause 257
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45. Operation Control Centre for goods trains 259
46. Wildlife Crime Control Bureau (WCCB) 260
47. Consumer Price Index (CPI) 261
48. Thal Sena Bhawan 263
49. Water table dipping in Bihar 265
50. Olive Ridley Turtles 266
51. Malai Mahadeshwara Wildlife Sanctuary 268
52. RBI study on digital payments 270
53. Central Vista Redevelopment project 272
54. FDI policy regarding Special Economic Zones (SEZs) 274
55. Centre to sell partial stake in LIC 276
56. Fiscal deficit touches 128.5% of Budget Estimate 278
57. Delhi water fails to clear ISO norms 280
7
Iranian Revolution, 1979

Syllabus subtopic: History of the World 1941, and his son Mohammad Reza
will include events from 18th century such Pahlavi took the throne. In 1953, amid
as Industrial Revolution, world wars, a power struggle between Mohammed
Redrawal of National Boundaries, Reza Shah and Prime Minister
Colonization, Decolonization, political Mohammad Mosaddegh, the U.S.
philosophies like Communism, Capitalism, Central Intelligence Agency (CIA) and
Socialism etc.— their forms and effect on the U.K. Secret Intelligence Service
the society. (MI6) orchestrated a coup against
Mosaddegh’s government.
Prelims and Mains focus: about the  Years later, Mohammad Reza Shah
revolution; its causes and aftermath dismissed the parliament and launched
the White Revolution—an aggressive
News: Hundreds of thousands across Iran modernization program that
marked the anniversary of its 1979 Islamic upended the wealth and influence of
Revolution on February 11 amid landowners and clerics, disrupted
growing tensions between Tehran and the rural economies, led to rapid
U.S. urbanization and Westernization,
and prompted concerns over
About the 1979 Islamic Revolution democracy and human rights. The
Iranian Revolution, also called Islamic program was economically successful,
Revolution, was a popular uprising in but the benefits were not distributed
Iran in 1978–79 that resulted in the evenly, though the transformative
toppling of the monarchy on February effects on social norms and institutions
11, 1979, and led to the establishment of were widely felt. Opposition to the
an Islamic republic. shah’s policies was accentuated in the
1970s, when world monetary
Prelude to the revolution: instability and fluctuations in Western
 The 1979 revolution, which brought oil consumption seriously threatened
together Iranians across many different the country’s economy, still directed in
social groups, has its roots in Iran’s large part toward high-cost projects
long history. These groups, which and programs. A decade of
included clergy, landowners, extraordinary economic growth, heavy
intellectuals, and merchants, had government spending, and a boom in
previously come together in the oil prices led to high rates of inflation
Constitutional Revolution of 1905– and the stagnation of Iranians’ buying
11. power and standard of living.
 Efforts toward satisfactory reform were  In addition to mounting economic
continually stifled, however, amid re- difficulties, socio-political repression
emerging social tensions as well as by the shah’s regime increased in the
foreign intervention from Russia, the 1970s. Outlets for political
United Kingdom, and, later, the United participation were minimal, and
States. opposition parties such as the National
 The United Kingdom helped Reza Front (a loose coalition of nationalists,
Shah Pahlavi establish a monarchy clerics, and non-communist left-wing
in 1921. Along with Russia, the U.K. parties) and the pro-Soviet Tūdeh
then pushed Reza Shah into exile in (“Masses”) Party were marginalized or
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outlawed. Social and political protest traditional, conservative, and rural
was often met with censorship, society to one that was industrial,
surveillance, or harassment, and illegal modern, and urban. The sense that in
detention and torture were common. both agriculture and industry too
much had been attempted too soon
 For the first time in more than half a and that the government, either
century, the secular intellectuals— through corruption or incompetence,
many of whom were fascinated by the had failed to deliver all that was
populist appeal of Ayatollah Ruhollah promised was manifested in
Khomeini, a former professor of demonstrations against the regime in
philosophy in Qom who had been 1978.
exiled in 1964 after speaking out
harshly against the shah’s recent Revolution
reform program—abandoned their aim  In January 1978, incensed by what
of reducing the authority and power of they considered to be slanderous
the Shiʿi ulama (religious scholars) and remarks made against Khomeini in
argued that, with the help of the ulama, Eṭṭelāʿāt, a Tehrān newspaper,
the shah could be overthrown. thousands of young madrasah
 In this environment, members of the (religious school) students took to the
National Front, the Tūdeh Party, and streets. They were followed by
their various splinter groups now thousands more Iranian youth—mostly
joined the ulama in broad opposition to unemployed recent immigrants from
the shah’s regime. Khomeini the countryside—who began protesting
continued to preach in exile about the regime’s excesses. The shah,
the evils of the Pahlavi regime, weakened by cancer and stunned by
accusing the shah of irreligion and the sudden outpouring of hostility
subservience to foreign powers. against him, vacillated between
Thousands of tapes and print copies of concession and repression, assuming
Khomeini’s speeches were smuggled the protests to be part of an
back into Iran during the 1970s as an international conspiracy against him.
increasing number of unemployed and Many people were killed by
working-poor Iranians—mostly new government forces in anti-regime
migrants from the countryside, who protests, serving only to fuel the
were disenchanted by the cultural violence in a Shia country where
vacuum of modern urban Iran—turned martyrdom played a fundamental role
to the ulama for guidance. The shah’s in religious expression. Fatalities were
dependence on the United States, his followed by demonstrations to
close ties with Israel—then engaged commemorate the customary 40-day
in extended hostilities with the milestone of mourning in Shia
overwhelmingly Muslim Arab tradition, and further casualties
states—and his regime’s ill- occurred at those protests, mortality
considered economic policies served and protest propelling one another
to fuel the potency of dissident forward. Thus, in spite of all
rhetoric with the masses. government efforts, a cycle of violence
 Outwardly, with a swiftly expanding began in which each death fueled
economy and a rapidly modernizing further protest, and all protest—from
infrastructure, everything was going the secular left and religious right—
well in Iran. But in little more than a was subsumed under the cloak of Shia
generation, Iran had changed from a Islam and crowned by the
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revolutionary rallying cry Allāhu akbar promptly moved to exclude their
(“God is great”), which could be heard former left-wing, nationalist, and
at protests and which issued from the intellectual allies from any positions of
rooftops in the evenings. power in the new regime, and a return
 The violence and disorder continued to to conservative social values was
escalate. On September 8 the regime enforced.
imposed martial law, and troops  The Family Protection Act (1967;
opened fire against demonstrators in significantly amended in 1975), which
Tehrān, killing dozens or hundreds. provided further guarantees and rights
Weeks later, government workers to women in marriage, was declared
began to strike. On October 31, oil void, and mosque-based revolutionary
workers also went on strike, bringing bands known as komītehs (Persian:
the oil industry to a halt. “committees”) patrolled the streets
Demonstrations continued to grow; on enforcing Islamic codes of dress and
December 10, hundreds of thousands behaviour and dispatching impromptu
of protesters took to the streets in justice to perceived enemies of the
Tehrān alone. revolution. Throughout most of 1979
 During his exile, Khomeini the Revolutionary Guards—then an
coordinated this upsurge of informal religious militia formed by
opposition—first from Iraq and after Khomeini to forestall another CIA-
1978 from France—demanding the backed coup as in the days of
shah’s abdication. In January 1979, in Mosaddegh—engaged in similar
what was officially described as a activity, aimed at intimidating and
“vacation,” the shah and his family repressing political groups not under
fled Iran. The Regency Council the control of the ruling Revolutionary
established to run the country during Council and its sister Islamic
the shah’s absence proved unable to Republican Party, both clerical
function, and Prime Minister organizations loyal to Khomeini. The
Shahpur Bakhtiar, hastily appointed violence and brutality often exceeded
by the shah before his departure, that which had taken place under the
was incapable of effecting shah.
compromise with either his former  The militias and the clerics they
National Front colleagues or supported made every effort to
Khomeini. Crowds in excess of one suppress Western cultural influence,
million demonstrated in Tehrān, and, facing persecution and violence,
proving the wide appeal of Khomeini, many of the Western-educated elite
who arrived in Iran amid wild rejoicing fled the country. This anti-Western
on February 1. Ten days later, on sentiment eventually manifested itself
February 11, Iran’s armed forces in the November 1979 seizure of 66
declared their neutrality, effectively hostages at the U.S. embassy by a
ousting the shah’s regime. Bakhtiar group of Iranian protesters
went into hiding, eventually to find demanding the extradition of the
exile in France. shah, who at that time was undergoing
medical treatment in the United States.
Aftermath Through the embassy takeover,
 On April 1, following overwhelming Khomeini’s supporters could claim to
support in a national referendum, be as “anti-imperialist” as the political
Khomeini declared Iran an Islamic left. This ultimately gave them the
republic. Elements within the clergy
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ability to suppress most of the regime’s
left-wing and moderate opponents.
 The Assembly of Experts (Majles-e
Khobregān), overwhelmingly
dominated by clergy, put a new
constitution to referendum the
following month, and it was
overwhelmingly approved. The new
constitution created a religious
government based on Khomeini’s
vision of velāyat-e faqīh (Persian:
“governance of the jurist”) and gave
sweeping powers to the rahbar, or
leader; the first rahbar was
Khomeini himself. Moderates, such as
provisional Prime Minister Mehdi
Bazargan and the republic’s first
president, Abolhasan Bani-Sadr, who
opposed holding the hostages, were
steadily forced from power by
conservatives within the government
who questioned their revolutionary
zeal.
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Hampi World Heritage site

Syllabus subtopic: Indian Culture -  The court further notes how the
Salient aspects of Art Forms, Literature Archaeological Survey of India has
and Architecture from ancient to modern itself recognised the historical
times. importance of Virupapura Gaddi.
Prelims and Mains focus: about the SC About Hampi

judgement; about Hampi and its  Hampi or Hampe (in Kannada), also
monuments referred to as the Group of
Monuments at Hampi, is a UNESCO
News: The Supreme Court confirmed the World Heritage Site located in east-
Karnataka government authorities’ central Karnataka, India.
decision to demolish restaurants, hotels,
guest houses and other buildings  It became the pilgrimage centre of the
constructed in Virupapura Gaddi, an Hindu religion. It was the capital of
oval islet formed by the Tungabhadra Vijayanagara Empire in the 14th
river and located west of the Hampi century.
World Heritage site.
 Chronicles left by Persian and
Reason European travellers, particularly the
Spelling relief for conservationists and a Portuguese are saying that state Hampi
victory for the State government, the SC was a prosperous, wealthy and grand
Bench concluded that the constructions city near the Tungabhadra River,
were in violation of the Mysore Ancient with numerous temples, farms and
and Historical Monuments and trading markets.
Archaeological Sites and Remains Act of
1961.  By 1500 CE, Hampi-Vijayanagara
was the world's second-largest
About the SC judgement medieval-era city after Beijing, and
 Agreeing with the Karnataka High probably India's richest at that time,
Court decision that the Hampi World attracting traders from Persia and
Heritage Area Management Portugal.
Authority was empowered to order
the demolition of the illegal buildings  The Vijayanagara Empire was
on the islet, the apex court ordered the defeated by a coalition of Muslim
authorities to proceed with their sultanates; its capital was conquered,
demolition work within a month of this pillaged and destroyed by sultanate
judgment. armies in 1565 (Battle of Tallikota),
after which Hampi remained in ruins.
 The court upheld the validity of a 1988
State notification that “clearly  Hampi predates the Vijayanagara
indicates the entire village of Empire; there is evidence of Ashokan
Virupapura Gaddi as a protected epigraphy, and it is mentioned in the
zone.” It said a place need not Ramayana and the Puranas of
necessarily boast a monument to be Hinduism as Pampaa Devi Tirtha
protected. Kshetra.
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 Hampi continues to be an important

religious centre, housing the
Virupaksha Temple, an active Adi
Shankara-linked monastery and
various monuments belonging to the
old city.
Hampi has around 500 of monuments and

other attractions. Some of them are named
below:- 5. Sasivekalu Ganesha : Thanks to the
1. Virupaksha Temple is the oldest and resemblance the giant monolithic
principal temple in Hampi. This temple Ganesha statue is locally called
located on the south bank of the river Sasivekalu (mustard seed) Ganesha.
Tungabadra. It has been an important This is located on the southern foothill
pilgrimage centre for the worshipers of of the Hemakuta Hill.
lord Shiva. 6. Hazara Rama Temple : The first
thing comes to mind on seeing this
temple, or more precisely its walls, is
the locally popular comic strips of
Hindu mythology, Ramayana.
2. Hampi Bazaar, also known as

Virupaksha Bazaar, this street is
located in front of the Virupaksha
temple.
3. Courtesans' Street : Once the liveliest

of all the temple streets in Hampi, the
Courtesans' Street lies in front of the
Achyuta Raya's Temple.
4. Achyuta Raya's Temple : This temple

is an example of Vijayanagara style
temple architecture in its most
advanced form than any other temples
in Hampi. The temple dedicated to
Lord Tiruvengalanatha, a form of
Vishnu.
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6th International Conference on Climate

Services
Syllabus subtopic: Salient features of expertise with an active climate
World’s Physical Geography. services network.
Prelims and Mains focus: about the New Climate Forecast System planned
conference and its objectives; about the by India
new forecast system by India and its  The Ministry of Earth Sciences
significance (MoES) is planning a ‘decadal
forecast’ system along the lines of the
News: The Indian Institute of Tropical United Kingdom’s Met Office to
Meteorology (IITM), under the auspices ensure better predictability in the
of the Ministry of Earth Sciences of the climate time scale.
Government of India, is hosting the 6th
International Conference on Climate  The system, based on a coupled
Services (ICCS6) in Pune, India from climate model, would first be taking
February 11-13, 2020. shape in the form of a research
programme to be taken up by IITM
Aim of the conference: along with collaboration from the India
The conference aims to convene the Meteorological Department and other
international community of practice to: entities and would be operational only
 Assess the current state of play in the after its merits had been evaluated.
design, implementation, and results/
impact of climate services  This is a new idea with more
 Share knowledge, lessons learned, and relevance to present climate
emerging examples of good practices forecasting needs. So, given the need
 Identify gaps and challenges to be for longer-range prediction for 10 or
addressed in future work 20 years, MoES will be starting a new
 Promote coordination and programme in the country using a
collaboration among climate service coupled climate model by utilising
stakeholders signals emanating from deep oceans
to predict decadal climate changes.
Significance
 ICCS6 will develop connections  The World Meteorological
between and among the range of Organization has set up global
actors that make up the climate producing centres, coordinated by
services community, including those the U.K. Met Office, for annual to
based at national and regional decadal projections that are already
meteorological services, national and providing global-scale information.
local governments, intergovernmental
and non-governmental organizations, Why is it required?
research institutes, and the private There were a number of gaps in the
sector. understanding of regional climate
variability and its connections to global
 It provides a unique opportunity to phenomena like Indian Ocean Dipole.
share skills, experience, and Indian forecasters faced a challenge in
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maintaining the quality of climate
observations, and there is a need on the
part of researchers to develop applications
for specific sectors based on the available
climate forecast.
Significance of the new system

 As there is a lot fundamental work on
the decadal forecasting system that has
already been done, India should not lag
behind.
 Once the system was established, it

would initially function for long-
range forecasting at the national
level and the model, if successful,
would later be downscaled to the
state or even district-level.
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Gold deposits found in Sonbhadra (Uttar

Pradesh)
Syllabus subtopic: Distribution of Key reserves in Sonbhadra region, which is
Natural Resources across the world more in news for being a Naxalism-hit
(including South Asia and the Indian sub- area.
continent)
 Interestingly, Sonbhadra – the second
Prelims and Mains focus: about the largest district of Uttar Pradesh – is
details of the findings; about India’s gold the only district in the country which
reserves shares borders with four states —
Madhya Pradesh to the west,
News: The Geological Survey of India Chhattishgarh to the south,
(GSI) has discovered gold deposits to the Jharkhand to the south-east and
tune of around 3,000 tonnes in Bihar to the east.
Sonbhadra district of Uttar Pradesh,
 Currently, India has only three
Details producing gold mines Hutti, Utti
 The gold deposits were found in Son mines (both in Karnataka) and
Pahadi and Hardi areas of Sonbhadra Hirabuddini mines (Jharkhand) and
district. the domestic production has almost
stagnated at about 2.8 tonnes annually.
 Work on finding gold reserves in
Sonbhadra was started almost two  Karnataka has an estimated 17 to 18
decades back in 1992-93 by the tonnes of gold reserves and the state is
Geological Survey of India. The the major gold producer state in India
auctioning of these blocks through e- i.e 88.7% of total gold production in
tendering would start soon. The India.
deposits in Son Pahadi is estimated to
be around 2,943.26 tonnes, while that  After the closure of Kolar Gold Fields
at Hardi block is around 646.16 Mines of BGML in 2001, the Hutti
kilogram, the official said. Gold Mines Limited (HGML), a
government of Karnataka enterprise
 It is estimated to be almost five times has become the sole producer of
India’s current reserve of the yellow primary gold in the country.
metal. Besides gold, some other
minerals have also been found in the  The main problem with the Hutti
area. mines is the low grade of ore. The
mine reopened in 1948 and has been
India’s Gold reserves operating irregularly since then. The
 As per the World Gold Council, India principal mine, Hutti and two other
currently has 626 tonnes of gold units viz Hira Buddini and Utti are all
reserves. The new reserves are almost underground mines located in Raichur
five times that amount and estimated to district of Karnataka.
be worth nearly Rs 12 lakh crore.
 The British reportedly were the first
to initiate the process of finding gold
16
Vittala Temple at Hampi

Syllabus subtopic: Indian Culture - About Vittala Temple
Salient aspects of Art Forms, Literature  The renowned Vittala Temple dates
and Architecture from ancient to modern back to the 15th century. It was built
times. during the reign of King Devaraya II
(1422 – 1446 A.D.), one of the rulers
Prelims and Mains focus: about the move of the Vijayanagara Empire. Several
and its significance; about Vittala temple; portions of the temple were expanded
about Hampi world heritage site and enhanced during the reign of
Krishnadevaraya (1509 – 1529 A.D.),
News: The Archaeological Survey of the most famous ruler of the
India (ASI) is contemplating installing a Vijayanagara dynasty. He played a
wooden barricade around the stone significant role in giving the
chariot inside Vittala Temple complex at monument its present look.
the UNESCO World Heritage site of
Hampi.  The Vittala Temple is also known as
Shri Vijaya Vitthala Temple. It is
Reason for the move dedicated to Lord Vitthala, an
According to a few officials in the ASI incarnation of Lord Vishnu. An idol
wooden barricade has been thought of of Vitthala-Vishnu was enshrined in
since a long time to protect it from the temple. Legend has it that the
vandalism given the behaviour of some temple was built as an abode for Lord
of the tourists, who tend to be Vishnu in his Vitthala form. However,
disrespectful towards the monuments. the Lord had found the temple to be
too grand for his use and had returned
Barricading necessary to live in his own humble home.
 While some locals say the ASI is not
doing enough to protect the  The Vittala Temple is presumed to be
monuments, the same lot also criticise the grandest of all temples and
the proposed move to install the monuments in Hampi. The temple
barricade. exemplifies the immense creativity
and architectural excellence
 Though the site is guarded there are possessed by the sculptors and artisans
always some tourists with a streak for of the Vijayanagara era.
vandalism who find a “window of
opportunity” when the attention of the Architecture
security personnel is drawn elsewhere.  The temple is built in the Dravidian
style of architecture. It has traits and
 Tourists hoisting children atop the features that are characteristic of
wheels and elephant sculptures, while typical south Indian temple
elders leaning against the chariot as if architecture. It’s elaborate and artistic
pushing it and getting photographed, carvings and magnificent architecture
ignoring its sanctity. There is lack of is unmatched by any other structure
awareness among the public that the found in Hampi.
monuments stand testimony to culture
and heritage.
17
 It is believed that the main shrine of  Notable among these structures are the
the temple originally had one enclosed shrine of the Goddess (also known as
Mantapa. An open Mantapa was added Devi shrine), Maha Mantapa or main
to it in the year 1554 A.D. hall (also known as Sabha Mantapa or
congregation hall), Ranga Mantapa,
 The temple complex is a sprawling Kalyana Mantapa (marriage hall),
area that is surrounded by high Utsava Mantapa (festival hall), and
compound walls and three towering the famous Stone Chariot.
gateways. The temple complex has
many halls, shrines and pavilions  Vittala Temple is not only among the
located inside it. Each of these most-visited protected monuments at
structures is made of stone and each Hampi, but is also the most
structure is a beauty in itself. photographed.
18
Global Health Emergency

Syllabus subtopic: Issues Relating to Concern is defined in the IHR (2005) as
Development and Management of Social “an extraordinary event which is
Sector/Services relating to Health, determined, as provided in these
Education, Human Resources. Regulations:
Prelims and Mains focus: about the 1. to constitute a public health risk to
coronavirus outbreak and its effect on the other States through the international
world; reasons for WHO declaring it a spread of disease; and
global health emergency 2. to potentially require a coordinated
international response”.
News: The death toll in China from the
new coronavirus reached 213, with This definition implies a situation that: is
overall cases worldwide rising rapidly in serious, unusual or unexpected; carries
an outbreak that the World Health implications for public health beyond the
Organization (WHO) declared a global affected State’s national border; and may
health emergency. require immediate international action.
Reason for the declaration  The responsibility of determining

The WHO was declaring a global health whether an event is within this
emergency because it was concerned category lies with the WHO Director-
about the virus spreading to countries General and requires the convening of
that did not have the resources to deal with a committee of experts – the IHR
it. Emergency Committee. This
committee advises the Director
Measures to be taken after declaration General on the recommended measures
 The WHO move will trigger tighter to be promulgated on an emergency
containment and information- basis, known as temporary
sharing guidelines to all countries. recommendations. Temporary
recommendations include health
 The impact of the virus on the rest of measures to be implemented by the
China and on the world would have State Party experiencing the PHEIC, or
been less if the containment measures by other States Parties, to prevent or
had been implemented sooner. reduce the international spread of
disease and avoid unnecessary
International Health Regulations (2005) interference with international traffic.
Procedures concerning public health
emergencies of international concern  The Emergency Committee also
(PHEIC) gives advice on the determination of
the event as a PHEIC in
 PHEIC procedures circumstances where there is
Some serious public health events that inconsistency in the assessment of
endanger international public health may the event between the Director-
be determined under the Regulations to be General and the affected
public health emergencies of international country/countries. The Emergency
concern (PHEIC). The term Public Committee continues to provide advice
Health Emergency of International to the Director-General throughout the
19
duration of the PHEIC, including any
necessary changes to the recommended
measures and on the determination of
PHEIC termination. WHO maintains
an IHR roster of experts and the
members of an IHR Emergency
Committee are selected from this roster
and/or WHO expert advisory panels
and committees. At least one member
of the Emergency Committee should
be an expert nominated by a State
Party within whose territory the event
arises.
20
MEA revamp
Syllabus subtopic: Ministries and Asia/North Africa (WANA)
Departments of the Government; Pressure divisions.
Groups and Formal/Informal Associations
and their Role in the Polity.  The additional charge indicates the
importance of the Indian diaspora in
Prelims and Mains focus: about the the Gulf and WANA regions where
restructuring in the ministry and its about eight million Indian
advantages expatriates live, about a quarter of the
world total, that account for more than
News: The Ministry of External Affairs 60% of the inbound remittances.
(MEA) has undertaken a major overhaul
of departments and reporting structure  Another change is the decision to
that will effectively empower seven move the “External Publicity” (XP)
different Additional Secretaries and re- the media and public relations division
organise their tasks along themes like to work under Secretary (West).
culture, trade and development, and
consolidated geographical divisions for  The Foreign Secretary also reshuffled
better coordination. a number of joint secretary level
postings, including in Public Policy
About the restructuring and Research, which also entails
 The restructuring was done in planning the MEA’s flagship Raisina
consultation with External Affairs Dialogue conference in January.
Minister, who as a former foreign
secretary (2015-2018) managed the Reason for the move and its advantages
Ministry himself, and authored the  Secretary-level officials are
plans. “overburdened and overworked”
with day-to-day duties, and lack
 The silos that will be managed by the much-needed time to strategise.
Additional Secretaries will range from
cultural power, economic and trade  In the new structure, additional
coordination, all international secretaries will be empowered to look
organisations and summits including at more long-term solutions rather
UN, G-20, BRICS etc. and all than only “firefighting”, and will travel
development partnerships. and give political direction to their
assigned portfolios.
 Departments merged: All of
Europe,all of Africa and West Asia and  The new Director General for the
all of the Indian Ocean and Indo- Indian Council for Cultural
Pacific region has been merged. Relations (ICCR), will consolidate the
government’s push to promote its
 At the secretary level there are now cultural, heritage, history, tourism
four officers apart from the Foreign objectives and showcase the diaspora,
Secretary, with the Secretary, with the ICCR being rebranded as
(Consular, Passport, Visa and Overseas the government’s “soft power”
Indian Affairs) Division who will also vehicle.
oversee officials on the Gulf and West
21
Appointments in minority-run institutions

Syllabus subtopic: Indian Constitution— “regulatory measures of control should
Historical Underpinnings, Evolution, be very minimal” and “in matters of day-
Features, Amendments, Significant to-day management like appointment of
Provisions and Basic Structure. staff, teaching and non-teaching, and
administrative control over them, the
Prelims and Mains focus: about the management should have the freedom and
various judgements of the SC related to there should not be any external
minority institutions; Cultural and controlling agency.”
Educational Rights
What was SC’s January 6, 2020
News: The Supreme Court on Friday judgement about?
issued notice on a plea for a re-  The January 6 judgment by a two-
examination of its January 6, 2020 judge Bench had given the State an
judgment declaring that the State is well absolute right to impose regulations
within its rights to regulate the on minority established and
appointment of teachers to minority-run administered institutions in the
institutions in “national interest.” appointment of teachers, saying the
step was necessary to achieve
Background excellence in education in these
The SC bench was hearing the plea of the institutions.
Managing Committee, Contai High
Madrasah, which said the judgment  The petition said the judgment
“dismantles” the law laid down by an segregates a particular community
11-judge Bench of the Supreme Court in from the privilege of protection
the T.M.A. Pai case of 2002. under Article 30. The January 6
The managing committee said that the judgment was based on a petition
two-judge Bench has even contradicted a challenging the validity of the West
Supreme Court judgment as recent as Bengal Madrasah Service Commission
September 25, 2019 (Chandana Das Act of 2008. The State Act mandated
(Malakar) versus State of West Bengal) that the process of appointment of
which upheld the rights of the minority teachers in aided madrasahs,
communities to establish and run their own recognised as minority institutions,
institutions without government would be done by a Commission. The
interference in day-to-day affairs of decision of the Commission would be
management like the appointment of binding. Justice Mishra’s Bench had
teachers. upheld the 2008 Act.
What was the SC judgement in T.M.A Cultural and Educational Rights

Pai case of 2002? (Article 29-30)
The 2002 judgment had held that  Article - 29 : Protection of interests of
minorities have a fundamental right minorities –
under Article 30 of the Constitution to (1) Any section of the citizens residing in
administer their institutions and appoint the territory of India or any part
teachers. thereof having a distinct language,
The petitioner said the Constitution Bench script or culture of its own shall have
in the T.M.A Pai case was clear that the right to conserve the same.
22
(2) No citizen shall be denied admission
into any educational institution
maintained by the State or receiving
aid out of State funds on grounds only
of religion, race, caste, language or
any of them.
 Article – 30 : Right of minorities to

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

educational institutions, discriminate
against any educational institution on
the ground that it is under the
management of a minority, whether
based on religion or language.
23
National Seed Fund

Syllabus subtopic: Government Policies support ideation and development of
and Interventions for Development in early stage start-ups.
various sectors and Issues arising out of
their Design and Implementation. Significance of the move
 With this, the government joins the
Prelims and Mains focus: about the industry in its efforts to support
national seed fund and its benefits; about early-stage startup ecosystem with
ESOP funding.
News: The Department for Promotion of  It will help encourage and empower
Industry and Internal Trade (DPIIT) is more individuals to become
working on guidelines for a National entrepreneurs. This is a celebration of
Seed Fund that was announced in the entrepreneurship, promoting the ease
Budget for 2020-21 to help start-ups and of doing business, boosting the
budding entrepreneurs. creation of jobs and furthering the
development of the ecosystem.
Why the reform?
 When it comes to early-stage seed Employee Stock Option Plan (ESOP)
funding, the Indian startup ecosystem  It is an employee benefit scheme
is going through a slowdown. In under which the company encourages
2019, the seed stage funding continued its employees to acquire ownership
to fall. With $252 Mn in funding, the in the form of shares. These shares
seed-stage deal value fell by 44% are allotted to the employees at a rate
(compared to 2018) as only 306 seed considerably lesser than the prevailing
funding deals were recorded. market rate.
 In their interactions with the  Apart from the employee-benefit

department, start-ups have time and motive, ESOPs are also meant to
again demanded formulation of a align the interests of the employees
national seed fund scheme. with that of the shareholders.
 Most of the start-ups actually face  It is believed that the employees, who
problem in raising finance or funds are also the shareholders, will focus
in the ideation to the proof of concept better on company performance and
stage. growth so that the value of their
shares appreciates.
 Some states and central government
departments like Biotechnology  ESOP is a significant component of
Industry Research Assistance Council compensation for employees.
have their own seed fund scheme but Currently, it is taxable.
they are small and are not pan-India.
 The budget aims to provide early life What did the budget propose?
funding, including a seed fund to  Budget 2020 has proposed to defer tax
deducted at source (TDS) or tax
24
payment on shares alloted by the
startups to their employees under the
Employee Stock Option Plans (ESOPs)
by five years or till they leave the
company or when they sell,
whichever is earliest.
 This means that employees of start-ups

who are exercising their ESOPs may
have to pay tax at a later date.
 It will help start-ups in further

strengthening startup ecosystem in the
country.
25
Data Centre Parks

Syllabus subtopic: Government Policies reach revenue of $69 billion by 2024.
and Interventions for Development in Meanwhile, India data centre market
various sectors and Issues arising out of is expected to reach values of
their Design and Implementation. approximately $4 billion by 2024.
Prelims and Mains focus: about the Challenges in setting up data centres in
move: Challenges and benefits; about India
Personal Data Protection (PDP) Bill 2019 1. costly real estate,
2. high power consumption
News: The Union budget proposal to 3. heavy expenses on improving wide
enable private firms to build data centre area network connectivity.
parks could help India become a major
global data centre, but only with a Benefits of the new policy
supportive policy and infrastructure  It will build an environment where
framework. more and more capacity is available for
data centre providers and hyperscalers
Background in India.
The budget proposal follows the
requirement for data localization for most  The new policy on data centre parks is
companies under the Personal Data expected to incentivize setting up
Protection (PDP) Bill 2019, which is data centres, similar to some US
expected to be made into law soon. states that have relaxed taxation on
However, data localization won’t be the data centre providers. Illinois, one of
only driving principle for the data centre the largest data centre markets in
policy, as such parks can generate business US, announced a data centre tax
worth billions of dollars each year. incentive in June 2019 exempting data
centres from state and local sales taxes
Current scenario on fulfilling certain provisions required
Currently there is no large-scale foreign by the state.
investment in data centres in the country.
There is no policy or framework right
now on how these global data centres hubs  Data centres are capital intensive
can be created in India. If the government businesses so it still makes sense to
has a clear cut policy around it, India could operate from major cities where
essentially become a data centre hub for overhead costs are distributed across
global enterprises. a larger facility while smaller markets
may not attract enough customer base.
Data Centre Market: Key figures

 The global data centre market is
expected to grow by $284.44 billion
during 2019-23, according to market
researcher Technavio.
 According to Research and Markets,

US data centre market is expected to
26
Revenue Deficit grants for states

Syllabus subtopic: revenue deficit of Rs.6.43 trillion in
Functions and Responsibilities of the 2020-21.
Union and the States, Issues and
Challenges Pertaining to the Federal  After accounting for the projected tax
Structure, Devolution of Powers and devolution to the states of Rs.8.55
Finances up to Local Levels and trillion, 14 states garner post-tax
Challenges Therein. Statutory, Regulatory devolution revenue surplus of Rs.3.08
and various Quasi-judicial Bodies. trillion, while the remaining 14 face a
combined post-tax devolution revenue
Prelims and Mains focus: about the deficit of Rs.74,340 crore. These states
recommendations by FFC and the action have been compensated by the FFC.
taken by the government; types of deficits;
about finance commission  The largest beneficiaries of the
recommendation are Kerala (
News: The finances of revenue-deficit Rs.15,323 crore), Himachal Pradesh (
states may be hit as the Finance Minister Rs.11,431 crore), Punjab ( Rs.7,659
in her budget allocated only 40% of the crore), Assam ( Rs.7,579 crore),
Rs.74,340 crore revenue deficit grants for Andhra Pradesh ( Rs.5,897 crore),
FY21, which was recommended by the Uttarakhand ( Rs.5,076 crore) and
15th Finance Commission (FFC), West Bengal ( Rs.5,013 crore).
despite having accepted its proposal.
2. Weightage of population and
Background demographic performance
 The Commission had recommended  Since the FFC used 2011 Census
post-devolution revenue deficit data, the tax share of most southern
grants for 14 states in 2020-21. states with low population growth
rates, such as Andhra Pradesh, Kerala
 Of the Rs.74,340 crore revenue deficit and Karnataka, has come down, while
grants, Rs.37,917 crore was meant for the share of Bihar, Madhya Pradesh,
Andhra Pradesh, Kerala, Punjab, Tamil Punjab, Maharashtra and Gujarat has
Nadu and West Bengal. The remaining gone up.
Rs.36,423 crore was for Assam,
Himachal Pradesh, Manipur,  The FFC assigned 15% weight to the
Meghalaya, Mizoram, Nagaland, population of a state, down from the
Sikkim, Tripura and Uttarakhand. 17.5% allocated by the 14th Finance
Commission, while raising the
 The government had accepted the weight under demographic
above recommendation of the performance from 10% to 12.5%.
Commission.
3. Special grants & nutrition grants
Recommendations made by the FFC  The finance ministry has also asked the
1. Revenue deficit grants FFC to review its recommendations
on special grants and nutrition
 As per FFC estimates, 25 of the 28 grants to the states.
states face a total pre-tax devolution
27
 The commission had recommended 2. Fiscal Deficit:
special grants of Rs.6,764 crore for The excess of total expenditure over
2020-21 to ensure that no state total receipts excluding borrowings is
receives less than what it received in called Fiscal Deficit. In other words, the
FY20 on account of tax devolution and Fiscal Deficit gives the amount needed
revenue deficit grants. by the government to meet its expenses.
Thus a large Fiscal Deficit means a large
 However, the Union finance ministry amount of borrowings.
has requested the FFC to reconsider
the recommendation, holding that “it What does it mean?
introduces a new principle". The Simply put a Fiscal Deficit is a measure of
beneficiaries of the proposal were how much the government needs to
Karnataka, Mizoram and Telangana. borrow from the market to meet its
expenditure when its resources are
inadequate.
Types of deficits & how they are
calculated Remedial measures:
1. Revenue Deficit:  Various measures might be taken to
 Revenue Deficit is the excess of reduce Fiscal Deficit, some of them
government’s total revenue can be reducing public expenditure
expenditure to its total revenue in the form of subsidies, reduction in
receipts. Revenue Deficit is only expenditure on bonus, LTC, Leaves
related to revenue expenditure and encashment etc.
revenue receipts of the government.  Alternatively, measures to increase
the revenue are also taken in forms
 The difference between total revenue of broadening tax base restructuring
expenditure to the total revenue and sale of shares in public sector
receipts is Revenue Deficit. units etc.
What does it mean? 3. Primary Deficit:

A revenue deficit indicates that the Primary Deficit is Fiscal Deficit of the
government doesn't have sufficient current year minus interest payments
revenue for the normal functioning of on previous borrowings. While Fiscal
the government departments. In other Deficit represents the government's total
words, when the government starts borrowing including interest payments,
spending more than it earns, it results in Primary Deficit shows the amount of
Revenue Deficit. Revenue Deficit forces borrowing excluding interest payments.
the government to disinvest or cover the
shortage by borrowing. What does it mean?
Primary Deficit shows the amount of
Remedial measures: government borrowings specifically to
In the case of Revenue Deficit government meet the expenses by removing the
usually tries to curtail their expenses or interest payments. Therefore, a zero
increase its tax and non-tax receipts. Primary Deficit means the need for
This can be done by introducing new borrowing to meet interest payments.
taxes or increasing the tax on people in
higher-earning slabs. Remedial measures:
A higher Primary Deficit reflects the
amount of new borrowings in the
28
current year. Since this is the amount on  The Terms of Reference of the
top of already existing borrowings (Fiscal current Commission have some
Deficit) similar measures can be taken to distinctive features, including
reduce the amount of borrowings. recommending monitorable
performance criteria for important
About Finance Commission (FC) national flagship programmes and
 It is a Constitutionally mandated examining the possibility of setting up
body that is at the centre of fiscal a permanent non lapsable funding
federalism. for India’s defence needs.
 Set up under Article 280 of the  The reorganisation of the State of

Constitution, its core responsibility is Jammu and Kashmir into two Union
to: Territories – one of Jammu and
a) evaluate the state of finances of the Kashmir and one of Ladakh – presents
Union and State Governments, a new dynamic. On the whole the
b) recommend the sharing of taxes Finance Commission faces new
between them challenges in the process of the
c) lay down the principles determining evolution of our federal polity.
the distribution of these taxes among
States.  As an important Constitutional entity,
the Commission is committed to
 Its working is characterised by balancing competing claims and
extensive and intensive consultations priorities among all three tiers of
with all levels of governments, thus government in a credible manner.
strengthening the principle of
cooperative federalism.
 Its recommendations are also geared

towards improving the quality of
public spending and promoting
fiscal stability.
 First Finance Commission was set

up in 1951 and there have been fifteen
so far. Each of them has faced its own
unique set of challenges.
 The Fifteenth Finance Commission

was constituted on 27 November
2017 against the backdrop of the
abolition of Planning Commission
(as also of the distinction between
Plan and non-Plan expenditure) and
the introduction of the goods and
services tax (GST), which has
fundamentally redefined federal fiscal
relations.
29
Organisation of Islamic Cooperation (OIC)

Syllabus subtopic: Bilateral, Regional and
Global Groupings and Agreements  Permanent Secretariat is in Jeddah,
involving India and/or affecting India’s Saudi Arabia.
interests.
 Key bodies:
Prelims and Mains focus: about the West
Asia peace plan and issues around it; about 1. the Islamic Summit,
OIC and its significance for India 2. the Council of Foreign Ministers
(CFM),
News: The Organisation of Islamic 3. the General Secretariat, in addition to
Cooperation (OIC) has said it rejects US the Al-Quds Committee and three
President Donald Trump's recently permanent committees concerned with
unveiled Middle East plan. science and technology, economy and
 The 57-member body, which held a trade, and information and culture.
summit to discuss the plan in Saudi 4. There are also specialized organs under
Arabia's Jeddah, said in a statement the banner of the OIC including the
that it "calls on all member states not Islamic Development Bank and the
to engage with this plan or to cooperate Islamic Educational, Scientific and
with the US administration in Cultural Organization, as well as
implementing it in any form". subsidiary and affiliate organs that play
a vital role in boosting cooperation in
Background various fields among the OIC member
US President Donald Trump had described states.
his long-delayed plan for resolving the
Israeli-Palestinian conflict as a "win-win India and OIC
solution" for both sides. India’s former External Affairs Minister
(EAM) Sushma Swaraj addressed the
About OIC inaugural session of the 46th Organization
 It is an international organization of Islamic Cooperation (OIC) meeting of
founded in 1969, consisting of 57 the Council of Foreign Ministers on March
member states. 1, 2019, in Abu Dhabi as a “guest of
honor”. The moment was phenomenal in
 It is the second largest inter- itself: for the first time in 50 years, since
governmental organization after the OIC’s inception, India attended it.
United Nations. India was invited to attend the first
summit of the OIC 50 years ago in 1969
 The organisation states that it is “the in Morocco. But the Indian delegation had
collective voice of the Muslim world” to return midway due to a withdrawal of
and works to “safeguard and protect the invitation after Pakistan’s objection.
the interests of the Muslim world in the It was a setback for Indian diplomacy, as it
spirit of promoting international peace could not further become a part of the
and harmony“. second largest inter-governmental
organization in the world (after the United
 The OIC has permanent delegations Nations). Pakistan’s adamant stance
to the United Nations and the toward India’s non-entry in the grouping
European Union. has ensured even today that India is
30
neither a member nor an observer of the add more substance to the existence and
OIC, despite having one of the largest working of the OIC.
Muslim populations in the world.
Countries like Thailand and Russia are
observer members, despite having a
significant minority Muslim population.
In addition to this, the OIC’s stand on the
Kashmir issue questions the state of
Jammu and Kashmir as a legitimate part of
India. The organization has been
generally supportive of Pakistan’s
concerns over Jammu and Kashmir. With
regards to this, the OIC has been issuing
statements criticizing alleged atrocities and
human rights violations in the state.
But winds of change have been blowing
for India. India is the third largest
economy in the world, one of the biggest
importers of hydrocarbons like gas and oil,
and one of the largest exporters of labor,
with more than 8 million Indians living
in West Asia, especially in the Gulf
region. West Asia and India’s growing
economic and energy interdependence
makes it difficult for the former to ignore
the latter.
India’s presence at the 46th OIC meeting
of the Council of Foreign Ministers is
historic, but it still remains a stepping
stone toward larger engagement with the
OIC and the Muslim world. Article 4 (1)
of the OIC Charter states the need for
consensus among the OIC Council of
Ministers for deciding on granting
observer status to a state. Consensus-
building for India’s entry in the grouping
without Pakistan’s support is
inconceivable. Thus, it remains in India’s
interest to engage positively with Pakistan
on this issue and collectively work for the
ideals to which the OIC is committed.
With mushrooming concerns like the rise
of Islamophobia, cross-border terrorism,
extremism, and instability in the world
order, the OIC has become more relevant
than ever before. Active engagement in the
grouping by India, home to around 10
percent of the Muslims in the world, can
31
CAG report on army provisioning

Syllabus subtopic: Appointment to reduced quantity. This compromised
various Constitutional Posts, Powers, the calorie intake of the troops by as
Functions and Responsibilities of various high as 82%.
Constitutional Bodies.
What did the report say on INDU?
Prelims and Mains focus: about the  As for the Indian National Defence
report and its significance; about CAG: University (INDU, the CAG said the
powers, functions and independence institute was “yet to fructify”, even
as the project cost had been revised
News: In a report tabled in Parliament on from Rs.395 crore (in 2010) to
Monday, the Comptroller and Auditor- Rs.4,007.22 crore (in 2017), up 914%.
General (CAG) pulled up the Army for
deficiencies in the provision of special  The INDU was recommended by the
clothing, rations and housing for troops Kargil Review Committee in 1999 to
in high-altitude areas, including address the deficiencies in India’s
Siachen. security management system.
Audit of provisioning and procurement  The Union Cabinet accorded in-

(2015-16 to 2017-18) principle approval in May 2010 for
 There were delays of up to four years establishing it in Gurugram at an
in the procurement of high-altitude estimated cost of Rs.395 crore. The
clothing and equipment, leading to an land was acquired in September 2012;
acute shortage of essential clothing however, the setting up of the INDU is
and equipment. There was a critical yet to fructify even after two decades
shortage of snow goggles, ranging of the Kargil War.
from 62% to 98%. The troops had not
been issued ‘multi-purpose boots’  The draft INDU legislation had been
from November 2015 to September lying for approval with the Cabinet
2016, and had to resort to the Secretariat since December 2017.
recycling of available boots.
What did the report say on the ‘Housing
 Furthermore, as the old models of face project’ for the army?
mask, jacket and sleeping bags were  The housing project, aimed at
procured, the troops did not get the improving the living conditions of
benefit of using improved products. the troops in high-altitude areas, was
executed in an ad hoc manner.
 Lack of research and development by
defence laboratory led to a continued  In the first two phases of the pilot
dependence on import. project, extensive summer and winter
trials were conducted. The third phase
 On the special rations authorised for constituted the confirmatory trial, at a
troops in high-altitude areas to meet cost of Rs.63.65 crore. This was
their daily energy needs, the CAG said avoidable, since the first two phases
substitutes for the scaled items were were exhaustive.
authorised on a “cost-to-cost’’ basis,
and this resulted in the supply of a
32
 The sanction was not obtained from
the competent authority for the main
project, and the handing over of the
assets, created under the pilot project,
to the units got delayed beyond the
stipulated time. There were
discrepancies between the assets
shown in the Numerical Asset
Register and those on the ground.
.
33
India extends reach in Indian Ocean Region

Syllabus subtopic: India and its the incorporation of the “Vanilla
Neighborhood- Relations. islands” as they are called, reflected
“the growing strategic importance of
Prelims and Mains focus: about India’s the Indian Ocean Islands within the
efforts to extend its reach in the IOR; framework of Indo-Pacific”.
about Vanilla islands; about India-
Madagascar relations  Vanilla Islands is an affiliation of the
island nations Seychelles,
News: India’s flood relief outreach to Madagascar, Réunion, Mauritius,
Madagascar will be followed up this Comoros, Mayotte in the Indian
week, as the island’s Defence Minister Ocean to form a new travel
travels to Lucknow and Delhi from destination brand. Aim of the co-
Tuesday. operation that has been founded on
August 4, 2010 at La Réunion is to
Background pool forces and jointly market the
 The Indian navy conducted region compared to the solely
“Operation Vanilla”, with INS individual marketing of each island
Airavat delivering relief material in the past.
including food, clothing, medicines
and water. The humanitarian gesture  The inclusion of the region in the IOR
by New Delhi also showcased India’s signals the government’s increasing
strategic capabilities in the level of comfort with the “Indo-
furthermost islands of the IOR under Pacific” concept that describes the
India’s policy of “Security and entire neighbourhood from the coast
Growth for All in the of Africa to the U.S. west coast.
Region”(SAGAR) for IOR islands.
 In one of many changes, effected last
 The SAGAR concept was first week, to the MEA organisational
announced by PM Modi in March structure, Foreign Secretary decided to
2015, during his visit to Mauritius club the entire Indian Ocean Region,
and other Indian Ocean islands. At the Southern and Indo-Pacific divisions
time, Madagascar, as well as under one additional secretary
Comoros and the French island of (Indo-Pacific).
Reunion, were a part of the East and
South Africa Division at the Cooperation in Maritime domain
Ministry of External Affairs (MEA).  The Indian Navy undertakes Joint
Exclusive Economic Zone (EEZ)
Reworked approach by Ministry of patrols with Maldives, Seychelles and
External Affairs (MEA) Mauritius, which have all joined
 Recently the MEA decided to include India’s coastal radar chain network.
the three islands as part of the IOR
(Indian Ocean Region) desk along  Maritime Domain Awareness has
with Sri Lanka, Maldives, Mauritus also emerged as a high priority area
and Seychelles. In a December 16 and India has signed a series of white
circular on the decision, the MEA said
34
shipping agreements and logistics Madagascar. When Madagascar
agreements with several countries. became independent in 1960, the
consulate was upgraded to embassy
 In addition, the Indian Navy has status.
established an Information Fusion
Centre (IFC) for Indian Ocean Region  In February 2011, relations were
(IOR) at Gurugram and has invited considered cordial, with several high-
international observers for information level officials having had exchanging
exchange of movements on the high visits over the course of relations.
seas. Approximately 20,000 people of
Indian origin lived in Madagascar,
About the visit of Madagascar’s Defence including 2,500 Indian citizens.
Minister
 It will be the first such high level visit
since Delhi incorporated the island  In March 2018, Ram Nath Kovind
into the “Indian Ocean Region became the first Indian President to
(IOR)”. visit Madagascar. Kovind was
conferred the Grand Cross of the
 During his visit, Madagascar’s Second Class, Madagascar’s highest
Defence Minister is expected to honour for non-citizens, by Prime
discuss implementing the MoU on Minister of Madagascar Olivier
defence cooperation signed during Solonandrasan.
President Ramnath Kovind’s visit to 2. Trade and finance
Antananarivo in March 2018. The  In November 2008, Exim Bank gave
Minister will travel first to Lucknow to Madagascar a $25 million loan for
attend the Defexpo, and later attend the agricultural improvements. As of 2011,
India-Africa Defence Ministers’ 61 Malagasy people had received
conference in Delhi, and hold a training as part of the Indian
bilateral meeting with India’s Defence Technical and Economic
Minister Rajnath Singh. Cooperation Programme.
 Madagascar’s Defence minister will  In March 2018, to facilitate its

also discuss the devastation in financial assistance programme, India
Madagascar due to flooding after a decided to offer Madagascar a
cyclone and heavy rains in the US$80.7 million Line of Credit (LoC)
island’s north-west left at least 31 for agriculture and mechanisation.
dead and affected nearly 100,000
people. 3. Military
India Navy operates a Coastal
India–Madagascar relations Surveillance Radar (CSR) station in
1. Historical relations Madagascar.
 Relations between Madagascar and
western India began in the 18th 4. Geological history
century and regular trade dates to at In 2013, scientists discovered that
least the late 19th century. Interstate Madagascar and India were part of
relations began in 1954 when a single continent about 85 million
independent India established a years ago. The sliver of land joining
consulate in French-controlled them is called Mauritia.
…
35
NCRB report on missing children and women

Syllabus subtopic: Issues Relating to exploitation and involvement in crime,”
Development and Management of Social and added that many missing persons end
Sector/Services relating to Health, up getting trafficked.
Education, Human Resources.
Prelims and Mains focus: about the Aim of the study
study: aim, need and key findings; about The study aims to identify the areas
NCRB where registered cases of missing
News: The National Crime Records persons, specifically women and children,
Bureau (NCRB) released its study on are higher than in other areas.
missing children and women.
Background Need for the study
In 2019, the Supreme Court had directed The need for the study arises because of
the NCRB to “analyse the data on missing the fact that incidents of missing women
persons (especially on women and and children are not uniform across the
children) so that areas prone to persons country. Some parts of the country report
being trafficked can be identified”. higher incidents and such areas could be
one of the source, transit or destination
About the study sites for child /women trafficking.
The NCRB study was based on the
annual Crime in India Report compiled Key findings of the study
by the agency for the years 2016, 2017  The highest number of women and
and 2018. The NCRB quoted Wikipedia children who go missing in the
to define a missing person. The study country are from Maharashtra and
said that “some young people run away Madhya Pradesh respectively. The
from home due to unbearable conditions of two States recorded the maximum
abuse and maltreatment….they become number of cases of missing children
vulnerable to trafficking, violence, drug and women among all other States in
addiction, prostitution and other risks of the years 2016, 2017 and 2018.
36
1. Women: increase from 291 missing children
a) The three States where the highest reports in the year 2017 to 474 in 2018.
number of women went missing in
the three years are Maharashtra,
West Bengal and Madhya Pradesh.
In 2016, as many as 28,316 women
went missing in Maharashtra, followed
by 29,279 in the year 2017, and 33,964
in 2018.
b) Mumbai and Pune recorded the

highest number of such incidents,
with 4,718 and 5,201 women going
missing in 2017 and 2018, while in
Pune, the number of missing women
for the same years was 2,576 and 2,504
respectively.
c) In West Bengal, the number of

missing women for the years 2016,
2017 and 2018 was 24,937, 28,133 and
31,299, respectively. Madhya
Pradesh recorded 21,435, 26,587 and
29,761 missing reports of women in
the three years.
2. Children:
a) In the years 2016-18, a total of 63,407,
63,349 and 67,134 children were
reported to be missing across the
country. The maximum number of
missing children reports were
recorded in Maharashtra and West
Bengal in the years 2016, 2017 and
2018.
b) In Madhya Pradesh, Indore reported

the highest number of missing
children, with 596 in 2017 and 823 in
2018. The numbers for Satna district
surged from 360 missing children in
2017 to 564 in 2018.
c) In West Bengal, Kolkata district had

the maximum number of missing
children reported in 2018, with 989
such cases, and Nadia district,
bordering Bangladesh, showed a steep
37
WHO report on cancer

Syllabus subtopic: Issues Relating to  Of 5.70 lakh new cancer cases in
Development and Management of Social men, oral cancer (92,000), lung cancer
Sector/Services relating to Health, (49,000), stomach cancer (39,000),
Education, Human Resources. colorectal cancer (37,000), and
oesophageal cancer (34,000) account
Prelims and Mains focus: about the for 45 per cent of cases.
report: aim and key findings; about WHO
 Of 5.87 lakh new cancer cases in
News: World Health Organization (WHO) women, breast cancer (1,62,500),
report has released two global reports on cervical cancer (97,000), ovarian
February 4, which is World Cancer cancer (36,000), oral cancer (28,000),
Day. and colorectal cancer (20,000) account
for 60 per cent cases.
WHO report on cancer burdens and
patterns in India in 2018  Tobacco-related cancers account for
Aim: The report aims to set the global 34-69 per cent of all cancers in men,
agenda on cancer, mobilise stakeholders and constitute 10-27 per cent of all
and help countries set priorities for cancers in women in most regions in
investing in cancer control and universal India.
health coverage
 An increasing trend in the incidence
Key findings: of oral cancer has been observed
 There are an estimated 1.16 million among men in the fourth to seventh
new cancer cases, 7,84,800 cancer decades of life, possibly as a result of
deaths, and 2.26 million 5-year increasing consumption of
prevalent cases in India’s population of unregulated flavoured chewing
1.35 billion. products that contain areca nut, such
as paan masala.
 One in 10 Indians will develop
cancer during their lifetime, and one
in 15 Indians will die of cancer.
 The six most common cancer types

in India are
1. breast cancer (1,62,500 cases),

2. oral cancer (1,20,000 cases),
3. cervical cancer (97,000 cases),
4. lung cancer (68,000 cases),
5. stomach cancer (57,000 cases), and
6. colorectal cancer (57,000).
Together, these account for 49 per cent of
all new cancer cases.
38
Customs Act, 1962

Syllabus subtopic: Government Policies expand the government’s power to
and Interventions for Development in ban imports or exports of all goods
various sectors and Issues arising out of that may hurt the local economy,
their Design and Implementation.
 According to the govt., this power will
Prelims and Mains focus: about the be exercised only in exceptional
move: need, objective and significance; circumstances
case of dumping solar equipment and
measures taken to curb it; about DGTR;  The measures are aimed at narrowing
BIS the trade deficit with China, which
has flooded the Indian market with
News: The government has proposed to items such as toys, firecrackers and
amend the Customs Act, 1962. solar power equipment. The steps
come amid a global rise in protectionist
Background policies to shield home-grown
 In May 2019, India merged two companies amid slowing economic
separate bodies handling anti- growth.
dumping and import safeguards to
form the Directorate General of  The new powers to protect the
Trade Remedies, similar to the US economy may provide a lever to the
International Trade Commission, to government to foster consumption of
create a trade defence mechanism local products and boost
that can respond to developments in a manufacturing.
comprehensive and timely manner.
Other reforms proposed
 The government has recently initiated The government also proposes to amend
more than 130 anti- the Customs Tariff Act of 1975 to
dumping/countervailing duty/safeguard strengthen the mechanism to prevent
cases to deal with rising incidence of dumping of cheap goods in the domestic
unfair trade practices. market.
Present Scenario Case of Solar Equipments and measures

So far, the government had powers to taken by the govt.
only ban imports and exports of gold  The domestic market for solar
and silver under the Customs Act, 1962. components, for instance, is
dominated by Chinese companies
Need for the amendment due to their competitive pricing. The
The steps come amid a global rise in surge in imports led the Modi
protectionist policies to shield home- administration in its previous term to
grown companies amid slowing impose a safeguard duty from 30
economic growth. July 2018 on solar cells and modules
imported from China and Malaysia.
Objective of the amendment This will end in July this year.
 Once approved, the amendment,
through the Finance Bill, will
39
 The Union budget also approved an  Earlier known as Directorate General
enabling mechanism to raise tariffs of Anti-dumping and Allied Duties
on imports of green energy (DGAD).
equipment such as solar cells and
modules.  Named in May 2018 as an integrated
single window agency for providing
 Once a separate notification is issued, a comprehensive and swift trade
new duty structure enabling a basic defence mechanism in India.
customs duty (BCD) of 20% on cells
and modules will come into effect.  Earlier, the DGAD dealt with anti-
There is no BCD levied on such dumping and countervailing duties
equipment now. (CVD) cases, Directorate General of
Safeguards (DGS) dealt with
 India currently has a domestic safeguard measures and Directorate
manufacturing capacity of 3 General of Foreign Trade (DGFT)
gigawatts (GW) for solar cells and dealt with quantitative restriction (QR)
imported $2.16 billion worth of solar safeguards.
photovoltaic (PV) cells, panels, and
modules in 2018-19.  The DGTR brings DGAD, DGS and
Safeguards (QR) functions of DGFT
 The budget move comes against the into its fold by merging them into
backdrop of a non-tariff barrier that one single national entity.
involves a certification requisite for
all solar power generation  DGTR now deals with Anti-dumping,
equipment makers who want to do CVD and Safeguard measures. It
business in the world’s largest green also provides trade defence support
energy market. to our domestic industry and
exporters in dealing with increasing
 The step is aimed at boosting domestic instances of trade remedy
manufacturing and shielding domestic investigations instituted against them
companies from cheap and sub- by other countries.
standard imports.
 DGTR provides a level playing field
 Only manufacturers and solar modules to the domestic industry against the
that are approved by the Bureau of adverse impact of the unfair trade
Indian Standards and the ministry of practices like dumping and actionable
new and renewable energy, and are subsidies from any exporting country,
on the approved list of modules and by using Trade Remedial methods
manufacturers will be eligible for under relevant framework of WTO
government supported schemes, arrangements, Customs Tariff Act &
including projects from where Rules and other relevant laws and
electricity distribution companies International agreements, in a
procure solar power for supplying to transparent and time bound manner.
their consumers.
 DGTR functions as an attached
About Directorate General of Trade office of Department of Commerce,
Remedies (DGTR) Ministry of Commerce and Industry.
It is a professionally integrated
40
organisation with multi-spectrum skill  Training Services, National &
sets emanating from officers drawn International level
from different services and  Information Services
specialisations.
About Bureau of Indian Standards

(BIS)
 BIS is the National Standard Body of
India established under the BIS Act
2016 for the harmonious
development of the activities of
standardization, marking and
quality certification of goods and for
matters connected therewith or
incidental thereto.
 BIS has been providing traceability

and tangibility benefits to the national
economy in a number of ways –
providing safe reliable quality goods;
minimizing health hazards to
consumers; promoting exports and
imports substitute; control over
proliferation of varieties etc. through
standardization, certification and
testing.
 BIS has its Headquarters at New

Delhi and its 05 Regional Offices
(ROs) are at Kolkata (Eastern),
Chennai (Southern), Mumbai
(Western), Chandigarh (Northern) and
Delhi (Central).
Keeping in view, the interest of

consumers as well as the industry, BIS is
involved in various activities as given
below:
 Standards Formulation
 Product Certification Scheme
 Compulsory Registration Scheme
 Foreign Manufacturers Certification
Scheme
 Hall Marking Scheme
 Laboratory Services
 Laboratory Recognition Scheme
 Sale of Indian Standards
 Consumer Affairs Activities
 Promotional Activities
41
Bhutan ends free entry for Indian tourists

Syllabus subtopic: India and its compulsory flat “cover charge” of
Neighborhood- Relations. $250 per day.
Prelims and Mains focus: about the move  Indians mainly travel to the more
of Bhutan’s govt and its implications on developed western region of Bhutan.
Bhutan-India relations; In a move to promote tourism in
Bhutan’s eastern region as well, the
News: The National Assembly of Bhutan government has decided to drop SDF
has passed a legislation named ‘Tourism charges for tourists visiting 11 of 20
Levy and Exemption Bill of Bhutan’, total districts that fall in the east from
2020. Trongsa to Trashigang.
What is it about? Concerns raised against the move

 Ending decades of free entry to  The regional tour operators,
Indian tourists visiting Bhutan, the especially from West Bengal have
government in Thimphu has decided to expressed concerns that the SDF will
levy a daily Rs.1,200 ($17) fee for have dampening effect on numbers,
“regional tourists” from India, the and impact the heavy rush during
Maldives and Bangladesh, beginning the October “Puja season”.
July 2020.
 The Ministry of External Affairs
 Children from India, Maldives and (MEA) said the fee was “nominal” and
Bangladesh under the age of 5 will not had been discussed with the Bhutanese
have to pay the levy and those between government in the last few months.
6 and 12 years will be required to pay However, the government has asked
only ₹600. the Bhutanese government to make an
effort to publicise the new rules in
Reason India before they come into effect in
 The fee, called a Sustainable July 2020, as is anticipated. If there is
Development Fee (SDF), is meant to confusion about the provisions, it
help the government deal with will cause problems to both sides.
burgeoning numbers in tourist
traffic, which it is seeking to regulate  New Delhi’s hesitation comes as the
through a new tourism policy. new SDF, while a seemingly small
amount compared to the fees charged
 According to the govt., the levy of to other nationalities, could be seen as
SDF to regional tourists will help in a way of making Indian tourists feel
ensuring an exclusive experience to unwelcome.
all tourists which is the intent of
Bhutan’s tourism policy of high ‘Regional Tourists’ in Bhutan
value, low volume,  In 2018, of the 2,74,000 tourists
visiting Bhutan, it is estimated that
 The SDF is considerably lower than about 2,00,000 were from the region,
the $65 charged to other foreign of which about 1,80,000 were from
tourists, who are also charged a India.
42
 In contrast to other international

tourists, who pay $250 (Approx.
Rs.18,000) as a minimum charge per
day per person, which includes a $65 a
day “Sustainable Development Fee”,
as well as a $40 visa charge, tourists
from India, Bangladesh and the
Maldives had so far paid no fees,
and were able to cross over without
visas, something that is now set to
change.
 In the past year, Bhutanese

newspapers have often complained
about Indian tourists who don’t pay
heed to local customs and picnickers
who litter the country’s pristine
environment.
43
UNESCO certificate for Jaipur

Syllabus subtopic: Important International  The project would be implemented
Institutions, agencies and fora - their during the next three years at a cost of
Structure, Mandate. Rs.7.50 crore.
Prelims and Mains focus: about the  It will directly benefit about 1,500
certificate; about Intangible Heritage artistes in the districts such as
Promotion Project Jodhpur, Barmer, Jaisalmer and
Bikaner, known for folk music and
News: Rajasthan Chief Minister will traditional handicrafts.
dedicate the United Nations Educational,
Scientific and Cultural Organisation About Jaipur: capital of Rajasthan
(UNESCO) world heritage site  The capital city of Jaipur, included in
certificate for Jaipur to the people. A the list of world heritage sites, was
brochure on “intangible heritage founded in 1727 by the then
promotion project” would also be Kachwaha Rajput ruler of Amber,
released at the function. Sawai Jai Singh II.
Background  The city was established on the plains

 The UNESCO declared the Walled and built according to a grid plan
City, famous for its grid plan-based interpreted in the light of Vedic
architecture and buildings architecture.
constructed with the pink facade, as
a world heritage site in July 2019.
 The International Council on

Monuments and Sites had earlier
inspected the city in 2018 after its
nomination. The council took into
account the architecture of streets
with colonnades, which intersect the
centre, creating large public squares
called chaupars. The uniform facades
of markets, residences and temples in
the main streets had also impressed the
council.
About Intangible Heritage Promotion

Project
 The project, signed between the
Tourism Department of Rajasthan and
UNESCO, aims at developing 10 new
cultural tourism destinations in the
State, for which the tourists could
extend their stay by at least one
extra day.
44
GST lottery offers

Syllabus subtopic: Government Policies luxury, sin and demerit goods on top
and Interventions for Development in of the highest tax rate.
their Design and Implementation. Other measures to be taken
 To plug leakages in GST revenue, the
Prelims and Mains focus: about the move government is considering various
and its significance; about GST and GST options in business-to-consumer
Council deals, including lotteries and
incentivising QR Code-based
News: The government is planning to transactions.
introduce lottery offers between Rs 10
lakh and Rs 1 crore under the GST to  The government has constituted a
encourage customers to take bills while committee of officers to suggest
making purchases. measures to augment GST revenue
collections.
About the move
 Every bill under the goods and  The panel has been tasked to suggest
services tax (GST) regime will systemic changes in GST, including
provide a chance to the customers to checks and balances, to prevent
win a lottery and that would act as an misuse and measures to improve
incentive for them to pay the tax. voluntary compliance.
 As per the plan, the purchase bill  Also, it has been tasked to give inputs
would be uploaded on a portal and a on measures for the expansion of the
draw would be held automatically tax base.
and the winners would be informed.
 The committee, which made
 The GST Council, chaired by presentation before the GST Council
Finance Minister and comprising on December 18, suggested pruning
state counterparts, would vet the of exempt list for raising resources.
proposed lottery scheme.
 The Council would also decide on the

minimum threshold for bills that
would be included in the lottery. As
per the plan, the money for the lottery
would come from the consumer
welfare fund, where the proceeds of
anti-profiteering are transferred.
About GST
 Under the four-tier GST, goods and
services are taxed at 5, 12, 18 and 28
per cent. Besides, cess is levied on
45
Direct Tax Vivad se Vishwas Bill, 2020

Syllabus subtopic: Government Policies  The scheme offers companies a
and Interventions for Development in chance to pay disputed tax arrears
various sectors and Issues arising out of without interest and penalty if paid
their Design and Implementation. before 31 March. If paid later, but
Prelims and Mains focus: about the new before a due date to be announced
scheme; its significance and benefits later, the amount due will go up by
News: The finance ministry unveiled 10%.
details of a new scheme that could fetch
the exchequer part of the Rs.9.32 trillion  In case the tax dispute is over penalty,
direct taxes under dispute and free up interest or fee, the settlement amount
courts and tribunals crippled by prolonged payable is 25% of the dues if paid
litigation. before the end of March.
Background
A similar scheme announced last year to  If paid subsequently, but before the
settle indirect tax disputes related to date to be announced in due course, the
central excise duty, service tax and various payable amount would be 30% of the
cesses had collected more than Rs.39,000 dues.
crore.
Need for the scheme  The scheme, however, will not cover
Tax disputes consume copious amount of tax demands related to undisclosed
time, energy and resources both on the foreign income or assets or tax
part of the government and taxpayers. demands raised after the government
Moreover, they also deprive the secured information from other
government of the timely collection of countries.
revenue.
About the proposed scheme  The proposed scheme is applicable to
 The Direct Tax Vivad se Vishwas appeals filed by taxpayers or the
Bill, 2020, tabled in Parliament by government, which are pending before
finance minister, offers immunity the commissioner (appeals), tribunals,
from prosecution to those who sign high courts or the Supreme Court as on
up for the scheme, which opens on 31 January.
the date it is signed into law.
46
What does it signify for the govt.?
If the scheme is successful in collecting
revenue, it will offer relief to the Modi
administration, which has estimated that
its fiscal deficit for FY20 would slip
from the earlier projected 3.3% of GDP
to 3.8% of GDP.
What are the likely benefits?

 This is an opportunity for assessees
to clear long-pending disputes and
many tax payers, especially those
having small amounts under dispute,
are likely to lap it up.
 This will not only benefit the

government by generating timely
revenue but also taxpayers who will
be able to deploy the time, energy and
resources saved by opting for such
dispute resolution towards their
business activities.
 The scheme can be beneficial for

settling cases such as additions of
unexplained cash deposited during
the demonetization period and
additions for penny stocks. It would be
beneficial for such taxpayers to pay the
tax amount and settle the disputes
without imposition of interest and
penalty.
47
Banking Regulation Act, 1949

Syllabus subtopic: Government Policies  While the role of registrar of
and Interventions for Development in cooperative societies includes
various sectors and Issues arising out of incorporation, registration,
their Design and Implementation. management, audit, supersession of
board and liquidation, RBI is
Prelims and Mains focus: about the responsible for regulatory functions
amendments proposed and their such maintaining cash reserve and
significance; about cooperative banks; capital adequacy, among others.
about the act
What are the amendments proposed?
News: The Union cabinet has approved  It will give the Reserve Bank of India
changes to the Banking Regulation Act wider powers to regulate cooperative
to strengthen oversight of cooperative lenders and prevent frauds such as
banks. the one seen at Punjab and
Maharashtra Co-operative Bank Ltd.
Background:
 In September 2019, the RBI  Once the amendment is cleared by
superseded Punjab and Maharashtra Parliament, cooperative banks will be
Co-operative Bank Ltd. (PMC Bank) audited according to RBI’s norms
board after uncovering several and the central bank can supersede
irregularities. Cash withdrawals were the board, in consultation with the
capped at Rs.1,000 per account for six state government, if any cooperative
months, but subsequently relaxed to bank is under stress.
Rs.50,000 as panic spread among
depositors.  Appointments of chief executives will
also require permission from the
 Urban cooperative banks (UCBs) banking regulator, as is the case for
reported nearly 1,000 cases of fraud commercial banks.
worth more than Rs.220 crore in past
five fiscal years, a Press Trust of India  Audit of such banks will be as per RBI
report said, citing the RBI. guidelines and recruitment for banks’
management will be based on certain
Aim of the amendment qualifications. All these steps will be
The proposed amendment is aimed at implemented by RBI in a phased
protecting the interests of 86 million manner.
depositors who have put money totalling
around Rs.5 trillion in 1,540 cooperative  The administrative role will continue
banks in the country. to be done by the Registrar of
Cooperative Societies. The
Present Scenario amendments will apply to all urban
 Cooperative banks are currently co-operative banks and multi-state
under the dual control of the cooperative banks.
Registrar of Cooperative Societies
and RBI. About the Act:
48
 The Banking Regulation Act, 1949 supplement to the previous acts related
regulates all banking firms in India. to banking.
Passed as the Banking Companies Act
1949, it came into force from 16
March 1949 and changed to Banking
Regulation Act 1949 from 1 March
1966.
 It is applicable in Jammu and

Kashmir from 1956.
 Initially, the law was applicable only to

banking companies. But, in 1965 it
was amended to make it applicable to
cooperative banks and to introduce
other changes.
Overview:
 The Act provides a framework under
which commercial banking in India is
supervised and regulated. The Act
supplements the Companies Act, 1956.
Primary Agricultural Credit Society
and cooperative land mortgage
banks are excluded from the Act.
 The Act gives the Reserve Bank of

India (RBI) the power to license
banks, have regulation over
shareholding and voting rights of
shareholders; supervise the
appointment of the boards and
management; regulate the operations
of banks; lay down instructions for
audits; control moratorium, mergers
and liquidation; issue directives in the
interests of public good and on
banking policy, and impose penalties.
 In 1965, the Act was amended to

include cooperative banks under its
purview by adding the Section 56.
Cooperative banks, which operate only
in one state, are formed and run by the
state government. But, RBI controls
the licensing and regulates the business
operations. The Banking Act was a
49
Ram Janmabhoomi Teerth Kshetra Trust

Syllabus subtopic: Government Policies About the trust
and Interventions for Development in  The Ministry of Home Affairs
various sectors and Issues arising out of notified the trust.
 There would be 15 trustees, out of
Prelims and Mains focus: about the trust which one would always be from the
and its mandate Dalit society.
News: PM Modi told the Lok Sabha that  The government had decided to
the Cabinet had approved a scheme for transfer the entire 67.703 acres to
the construction of a grand Ram temple the trust.
in Ayodhya by setting up an autonomous
trust, Ram Janmabhoomi Teerth  This trust will be fully autonomous to
Kshetra, to take forward the process as take any decision regarding the
per the Supreme Court’s orders. construction of temple.
Background  The Uttar Pradesh government had
The Supreme Court mandated three- approved the Supreme Court’s
month deadline to set up a trust was to direction to grant 5 acres to the
end on February 9, a day after Delhi votes. Central Sunni Wakf Board.
50
Changes in Surrogacy (Regulation) Bill, 2019

Syllabus subtopic: Government Policies grounds that it was too long a period
and Interventions for Development in for a couple to wait for a child.
their Design and Implementation.  In order to protect the interests of the
child born through surrogacy, the
Prelims and Mains focus: about the Committee recommended that the
changes recommended by the RS order regarding the parentage and
committee; about the bill and its custody of the child, issued by a
significance Magistrate, shall be the birth affidavit
for the surrogate child.
News: The 23-member Rajya Sabha
Select Committee on Surrogacy  As a general recommendation, the
(Regulation) Bill, 2019 has recommended Select Committee said that the
15 major changes in the bill. Assisted Reproductive Technologies
(Regulation) Bill (ART), which is
Background awaiting Cabinet approval, may be
The Surrogacy (Regulation) Bill, 2019 is taken up before the Surrogacy
yet to be passed by the Rajya Sabha and (Regulation) Bill, since the ART Bill
the committee has held ten meetings since primarily deals with technical,
the Bill was referred to it by the Lok Sabha scientific and medical aspects,
on November 21, 2019. including the storage of embryos,
gametes, oocytes, etc. as contained in
the Surrogacy Bill.
What changes did it recommend?
 A surrogate mother need not be a
“close relative” of the intending
couple. Requiring the surrogate mother
to be a “close relative” potentially
restricts the availability of surrogate
mothers, affecting genuinely needy
persons.
 Omission of the five-year time limit

before seeking surrogacy.
 allowing single women (widow or a

divorcee and Persons of Indian
Origin) to avail of surrogacy
 increasing insurance cover for the

surrogate mother from the 16 months
proposed in the Bill to 36 months.
 deleting the definition of “infertility”

as “the inability to conceive after five
years of unprotected intercourse” on
51
International Intellectual Property Index

Syllabus subtopic: Important International Efforts made by India in IP sector
Institutions, agencies and fora - their  Since the release of the 2016 National
Structure, Mandate. IPR Policy, the government of India
has made a focused effort to support
Prelims and Mains focus: about the index investments in innovation and
and India’s score: its significance; need for creativity through increasingly robust
reforms in India’s IP regime IP protection and enforcement.
 Since 2016, India has improved the
News: The International IP Index was speed of processing for patent and
released by Global Innovation Policy trademark applications, increased
Center (GIPC) of the US Chambers of awareness of IP rights among Indian
Commerce. innovators and creators, and facilitated
the registration and enforcement of
India’s performance on the Index those rights.
 India has been ranked 40th out of 53
countries even as the country has  In 2019, the Delhi High Court used
shown improvement in terms of scores dynamic injunctions to disable access
when it comes to the protection of IP to copyright-infringing content
and copyright issues. online, resulting in an increase in
India's score on two of the
 India was placed at 36th position copyright-related indicators. The
among 50 countries in 2019. use of these injunctions places India
alongside global leaders in copyright
 India's score, however, increased from enforcement, including Singapore and
36.04 per cent (16.22 out of 45) in the UK. As a result, India scores
2019 to 38.46 per cent (19.23 out of ahead of 24 other economies in the
50) in 2020, a 2.42 per cent jump in an copyright indicators.
absolute score. However, India's
relative score increased by 6.71 per  The Delhi High Court also issued a
cent. series of judgements that provide
clarity on existing statutes related to
 Two new Index economies (Greece trademark protection online,
and the Dominican Republic) scored resulting in a score increase on one of
ahead of India. The Philippines, and the trademark-related indicators.
Ukraine leapfrogged India.
 The courts issued two precedential
What does the score signify? rulings that raised the bar for the
damages awarded in IP-
India's score on the International IP Index infringement cases and may provide a
demonstrates the country's growing deterrent for future infringement. This
investment in IP-driven innovation and resulted in an increase in score on
creativity. The Index specifically one of the trademark-related
highlights a number of reforms over the indicators.
last year that strengthen India's overall IP
ecosystem.  India also continues to score well in
the Systemic Efficiency indicator,
52
scoring ahead of 28 other economies in
these indicators. This is a result of a  The number one way the present
concerted effort by the Indian administration can demonstrate its
government to consult with commitment to the success of the Atal
stakeholders during IP policy Innovation Mission, Accelerating
formation and create greater Growth for New India’s Innovations,
awareness about the importance of IP Make in India, Digital India, and
protection. India also remains a leader Startup India is to strengthen its IP
in the use of targeted incentives and framework in ways that promote the
IP assets for small and medium-sized legal and regulatory certainty
enterprises (SMEs). necessary for greater R&D investment,
high-value jobs, and greater innovative
 To continue this upward trajectory, and creative outputs.
much work remains to be done to
introduce transformative changes to  Strong IP standards can further solidify
India’s overall IP framework and India's position as the world’s
take serious steps to consistently fastest-growing economy, bolstering
implement strong IP standards. its reputation as a destination for
doing business, foreign businesses’
Significance of the index ability to invest and make in India,
Indian policymakers seem to recognize thereby supporting the growth of
this Index as a valuable resource in their India’s own innovative and creative
efforts to strengthen the country’s industries.
promising innovation ecosystem and
enhance its competitiveness in an
increasingly knowledge-based global
economy.
Challenges ahead
GIPC has identified several challenges for
India. Prominent among them being:
1. patentability requirements,
2. patent enforcement,
3. compulsory licensing,
4. patent opposition,
5. regulatory data protection,
6. transparency in reporting seizures by
customs, and
7. Singapore Treaty of Law of TMs and
Patent Law Treaty.
Need for reforms in India’s IP regime

 No other economy stands to gain more
from strong Indian IP than India itself.
For example, no industry has been hurt
more by copyright violations in India
than the country’s own Bollywood
industry, which loses almost USD3
billion to piracy each year.
53
Telecom Ombudsman
Syllabus subtopic: Government Policies evidence(s) for non-redressal of
and Interventions for Development in grievance at concerned service
various sectors and Issues arising out of provider level.
About Telecom Regulatory Authority of
Prelims and Mains focus: about the move India (TRAI)
and its objective; about TRAI and its  TRAI is a statutory body set up by the
mandate Government of India under section 3
of the Telecom Regulatory Authority
News: The Department of of India Act, 1997.
Telecommunications (DoT) is planning
to set up the post of a Telecom  It is the regulator of the
Ombudsman to deal with consumer telecommunications sector in India.
complaints and grievances on poor
quality telephony services.  It consists of a Chairperson and not
more than two full-time members
Background and not more than two part-time
The concept of a telecom ombudsman was members.
first floated by TRAI in late 2017, after
which the Telecom Commission had  The TRAI Act was amended by an
cleared the proposal in 2018. However, ordinance, effective from 24 January
there have been no developments on that 2000, establishing a Telecom Disputes
front after that, despite repeated reminders Settlement and Appellate Tribunal
sent to the DoT from TRAI. (TDSAT) to take over the
adjudicatory and disputes functions
Objective of the move from TRAI.
 The ombudsman will be the third
level of authority which users can
approach, if their complaints on poor
quality service is not heard by the
telecom services providers.
 The first level is the complaint centre

of the respective telcos, whereas the
second level is the appellate authority,
which decides on the users’ complaints
within 39 days.
 In case a grievance is not redressed

even after exhausting the two tier
procedure as prescribed by Telecom
Regulatory Authority of India
(TRAI), the complainant may
approach Public Grievance wing of
Department of Telecommunications
(DoT), along with all documentary
54
India-Central Asia connectivity

Syllabus subtopic: Bilateral, Regional and Iran, northern Europe or China. In
Global Groupings and Agreements recent years, the government has been
involving India and/or affecting India’s seeking to develop more direct routes from
interests. Chabahar, a trilateral arrangement
with Iran and Afghanistan, the
Prelims and Mains focus: about the steps International North South Transport
taken by the govt to improve connectivity Corridor (INSTC) and becoming a part
with Central Asia; about Ashgabat the Ashgabat Agreement. However, the
agreement; Chabahar port; INSTC rail-link between Chabahar and the
crossover into Afghanistan is yet to be
News: Apart from developing trade via the developed, which would be an important
Chabahar port in Iran, India would like part of growing regular trade. At present,
to explore setting up “air corridors” $1.5 billion of the $2 billion trade with
between India and five Central Asian Central Asia is with Kazakhstan, and more
nations (Kazakhstan, Kyrgyzstan, than $1 billion of that comes from crude
Tajikistan, Turkmenistan and Uzbekistan) oil exports to India.
What does it mean? Role of Chabahar port in providing

The air corridors — similar to what India connectivity to Central Asia
established in 2018 with Afghanistan — India, Iran and Afghanistan believe that
would include regular cargo flights with Chabahar will become the fulcrum of
special clearing and customs facilities to connectivity for Indian goods to reach
expedite the movement of goods, Afghanistan and further north to Central
especially fresh fruit and other agricultural Asian states, and for the landlocked
produce, and were currently being Central Asia to find access to ocean
discussed by the MEA. through this port. Budget 2020-21 has
proposed Rs.100 crore investment to
Reason for the move develop the Iranian port.
 While flying time from Delhi for most
of the Central Asian destinations is two About Ashgabat Agreement
hours, it may take two months for  The Ashgabat agreement is a
containers sent overland from India to multimodal transport agreement
reach these places. between the governments of
Kazakhstan, Uzbekistan,
 The lack of overland connectivity had Turkmenistan, Iran, Pakistan, India
kept the total trade between India and and Oman for creating an
Central Asia quite low at international transport and transit
approximately $2 billion per year. corridor facilitating transportation of
goods between Central Asia and the
 Availability of air corridors can boost Persian Gulf. The agreement came
trade in perishable goods, into force in April 2016. Ashgabat in
agricultural and food products. Turkmenistan is the depository state
for the agreement.
Present Scenario
At present, most of the trade between  The agreement was originally signed
Central Asia goes via Bandar Abbas in by Iran, Oman, Qatar,
55
Turkmenistan and Uzbekistan on Moscow, Tehran, Baku, Bandar
April 25, 2011. Qatar subsequently Abbas, Astrakhan, Bandar Anzali, etc.
withdrew from the agreement in 2013,
the same year Kazakhstan applied for
membership, which was eventually
approved in 2015. Pakistan has also
joined the Agreement from November
2016. India formally joined in
February 2018.
 The objective of this agreement is to

enhance connectivity within Eurasian
region and synchronize it with other
transport corridors within that region
including the International North–
South Transport Corridor (INSTC).
About INSTC
 The International North–South
Transport Corridor (INSTC) is a
7,200-km-long multi-mode network
of ship, rail, and road route for moving
freight between India, Iran,
Afghanistan, Armenia, Azerbaijan,
Russia, Central Asia and Europe.
 The route primarily involves moving

freight from India, Iran, Azerbaijan
and Russia via ship, rail and road.
 The objective of the corridor is to

increase trade connectivity between
major cities such as Mumbai,
56
India- Africa Defence Ministers conclave

Syllabus subtopic: Bilateral, Regional and  It urged the international community to
Global Groupings and Agreements envisage the adoption of
involving India and/or affecting India’s Comprehensive Convention on
interests. International Terrorism (CCIT) in
the UNGA.
Prelims and Mains focus: about the event
and agreements signed; about CCIT  Maritime cooperation: Cooperation
in securing sea lines of
News: The first India- Africa Defence communication, preventing maritime
Ministers conclave was recently held at the crimes, disaster, piracy, illegal,
ongoing Defexpo in Lucknow (UP). unregulated and unreported fishing
through sharing of information and
About the event surveillance.
The dialogue was attended by 12 Defence
Ministers and 38 countries were About CCIT
represented at the conclave.  The Comprehensive Convention on
International Terrorism is a proposed
Cooperation agreements signed treaty which intends to criminalize all
India and several African countries forms of international terrorism and
pledged to deepen cooperation to combat deny terrorists, their financiers and
the growing threat of terrorism and supporters access to funds, arms, and
preserve maritime security by sharing safe havens.
information, intelligence and surveillance.
 It is a draft proposed by India in
Lucknow declaration adopted 1996 that is yet to be adopted by the
 It urged all countries to take resolute UNGA.
action in rooting out terrorism in all
forms and manifestations, terrorist safe What does it propose?
havens and infrastructure, disrupting  Universal definition of terrorism: no
terrorist networks and eliminating good terrorist or bad terrorist.
financing channels and halting cross-  Ban on all groups regardless of country
border movement of terrorists. of operation, cut off access to funds
and safe havens.
 It emphasised the need for stronger  Prosecution of all groups including
international partnership in countering cross border groups.
terrorism and violent extremism,  Amending domestic laws to make
including through increased sharing of cross-border terror an extraditable
information and intelligence. offence.
 It also addresses, among other things,
 The Declaration also called for the issue of Pakistan’s alleged support
strengthening the UN Counter- for cross-border terrorism in south
Terrorism mechanisms and to ensure Asia.
strict compliance with the UN Countries sceptical about it
Security Council sanctions regime on  US + allies: concerns over definition of
terrorism.
terrorism, including acts by US
57
soldiers in international interventions
without UN mandate.
 Latin American countries: concerns
over international humanitarian laws
being ignored.
 There are also concerns that
convention will be used to target
Pakistan and restrict rights of self-
determination groups in Palestine,
Kashmir etc.
58
Accessible India Campaign (Sugamya Bharat

Abhiyan)
Syllabus subtopic: Welfare Schemes for websites i.e. total no. of government
Vulnerable Sections of the population by websites is not known. The Social
the Centre and States and the Performance Justice and Empowerment Minister
of these Schemes directed the MeitY to find out the total
number of the Central and State
Prelims and Mains focus: about the government websites.
scheme and its objectives; performance of
various departments under the scheme  Transportation:
1. Airports:While there had been
News: Four years after the Accessible progress on making airports
India Campaign was launched, officials accessible, all aspects of air travel,
said at a recent review meeting that the including aircraft and buses used to
number of buildings of the Central Public ferry passengers from terminals,
Works Department (CPWD) across the needed to be compatible. All 35
country, and websites of the Ministry of international airports and 55
Electronics and Information Technology domestic airports under the Airports
(MeitY) were not known. Authority of India had been made
accessible by providing ramps, and had
Figures across various departments accessible toilets and provision for
 During the review by Social Justice audio and Braille commands in lifts.
and Empowerment Minister on
December 19, 2019, a Department of 2. Railways: 7,000 wheelchairs have
Empowerment of PwD official said the been provided at major stations and 22
“total buildings either under stations had online booking of
maintenance or owned by CPWD are wheelchair facility.
not known”, minutes of the meeting
recorded. All these buildings, along 3. Roads: The Ministry of Road
with other projects being implemented Transport and Highways informed that
by other Ministries, are supposed to only 3.6% of buses had been fully
be made accessible by March 2020. accessible. There has been slow pace
in making buses and bus terminals
 Ministry of Housing and Urban accessible.
Affairs (under which the CPWD
operates): 787 out of 889 buildings About Accessible India Campaign
had been made accessible so far, while It is the nationwide flagship campaign of
approval for 13 buildings had been the Department of Empowerment of
received from various Ministries and Persons with Disabilities (DEPwD),
work would be started. For remaining Ministry of Social Justice and
89 buildings, approval of respective Empowerment to make public offices,
Ministries is still awaited. transport and websites accessible to
persons with disabilities (PwD),
 Government websites: the target is of
making at least 50% of the sites  Aim: to make a barrier free and
accessible. However, the quantum of conducive environment for
59
Divyangjans all over the country. It  Transport accessibility component of
was launched by PM Modi on Accessible India Campaign aims to
International Day of Persons with make all international airports fully
Disabilities on 3rd December, 2015. accessible immediately and domestic
airports by March 2018. Out of 32
 The program comes with an index to international airports 25 have been
measure the design of disabled- provided with accessibility features
friendly buildings and human resource namely, ramps, accessible toilets, lifts
policies. with braille symbols and auditory
signals.
 The initiative also in line with the
Article 9 of the (UN Convention on  Accessibility of Information and
the Rights of Persons with Communication System is another
Disabilities) to which India is a crucial pillar of Accessible India
signatory since 2007. Campaign. The target set under this
vertical is to make at least 50% of
 The scheme also comes under Central and State Government websites
Persons with Disabilities Act, 1995 accessible by March 2017.
under section 44, 45, 46 for equal
Opportunities and protection of rights
which provides non-discrimination in
Transport to Persons with Disabilities.
The campaign has been divided into three

verticals:
1. Built Environment
2. Transport
3. Information & Communication
Technology (ICT) ecosystem.
 The Built Environment Accessibility

component of Accessible India
Campaign entails following targets:
i. Completing accessibility audit of at
least 25-50 most important
government buildings in 50 cities
and making them fully accessible
by the end of this year
ii. Making 50% of all the government
buildings of NCT and all the State
capitals fully accessible by
December 2018
iii. Completing accessibility audit of
50% of government buildings and
making them fully accessible in 10
most important cities/towns of
States not covered in targets (i) and
(ii) by December 2019.
60
Status report on victim compensation

Syllabus subtopic: Welfare Schemes for 35,983. This means, only 0.2% of all
Vulnerable Sections of the population by survivors of human trafficking
the Centre and States and the Performance received the compensation
of these Schemes announced by the government in the
last eight years. Among the 82
Prelims and Mains focus: about the survivors who were awarded
findings of the report; about NCRB compensation, only 77 received the
relief amount.
Context: The details of compensation
awarded to survivors of trafficking have  State-wise details of the compensation
been ascertained on the basis of RTI awarded to the survivors show that 47
applications filed by five lawyers across persons were awarded relief in Delhi,
the country and the outcome of the followed by 17 in Jharkhand, eight in
response compiled in the form of report Assam, three in West Bengal, two each
titled “UNCOMPENSATE VICTIMS”, in Andhra Pradesh, Karnataka and
which was released in Kolkata recently by Meghalaya. In Haryana, one survivor
Sanjog, a technical resource of trafficking was awarded
organisation that works to combat compensation between 2011 and 2019.
trafficking and gender-based violence.
 The Nirbhaya fund is being used in
Background the Victim Compensation Scheme – a
The Section 357-A of Code of Criminal national scheme to compensate
Procedure (CrPC) has provisions to survivors of rape, acid burns and
compensate victims who suffered trafficking among other forms of
because of a crime. In 2012, following the violence — for the last few years. The
national outrage over the Nirbhaya gang- amount of compensation to victims of
rape and murder case, the government trafficking varies from State to State.
announced Rs.1,000 crore fund to be In 2018, the Supreme Court directed
used to combat sexual violence against NALSA (National Legal Services
persons – children or adults. Authority) to frame a standardised
victim compensation scheme.
Findings of the report
 Highlighting the poor status of  The study also reflects the number of
compensation awarded to survivors trafficking survivors who applied for
of human trafficking in the country, the victim compensation scheme to
response obtained through RTI their respective legal services
queries from 25 States and seven authority. While 107 individuals
Union Territories reveal that between applied under the scheme, in 102 cases
March 2011 and April 2019 only 82 between 2011 and 2019, courts
such victims were awarded directed the authorities to release
compensation. compensation. Twenty-eight persons
applied for compensation in West
 However, between 2011 and 2018, the Bengal, followed by 26 in Karnataka
total number of cases of human and Jharkhand. Fourteen persons in
trafficking recorded in the country, Assam applied for compensation while
according to NCRB reports, was seven did the same in Delhi-NCR.
61
 The study also suggests grave  In their study the researchers tracked
inconsistencies on the part of legal the details of at least three case studies
services authorities, which have where the trafficking survivors had
provided the data. The data on Delhi received compensation. Survivors
is discrepant, with more survivors were able to apply only when they
receiving compensation than those were informed and a private lawyer
awarded compensation. Manipur’s was involved in assisting them in
2019 victim compensation scheme filing application for victim
does not even have an entry in the compensation.
schedule corresponding to human
trafficking.  From their rescue till rehabilitation, the
survivors are in touch with multiple
 The study also suggests that there agencies but none of them take any
remains a lack of information steps to help them get compensation.
provided to survivors on victim Researchers also pointed out that the
compensation, lack of initiative on the “DLSA and SLSA’s response to the
part of legal services authority, low claims has been slow, and they hold
investment on part of legal aid that the survivors’ claims with suspicion –
results in very few survivors having often putting the burden of proof on
access to compensation. the survivors themselves”.
62
Kerala mulls Vigilance cell for Health
Syllabus subtopic: Issues Relating to  It will also monitor health care

Development and Management of Social advertising and flag false claims aired
Sector/Services relating to Health, by health care companies to mass-
Education, Human Resources. market pharmaceutical and Ayurveda
drugs without a doctor’s prescription
Prelims and Mains focus: about the cell as off-the-shelf cures for a wide range
and its objectives; concerns raised against of ailments.
the move
News: The Kerala government is  The wing will also prosecute self-
reportedly mulling over a proposal to set styled healers who exploit their
up a vigilance wing in the Health influence on social media to fuel
Department. unhealthy scepticism about the
government’s vaccination
Objective of setting up the Vigilance cell programmes.
 Optimally, the vigilance wing will Functioning

detect private practice by medical
education service doctors, crack down  The proposed vigilance cell would be
on quackery and unearth ethically under the Home Department and
dubious financial relationships, if any, headed by a police officer.
between State doctors and diagnostic  However, in all medico-legal issues,
clinics, pharmacies and health care domain inputs will be sought from the
firms in the private sector. medical community itself.
63
Concerns raised against the move
 The proposal appears not to have gone

down well with the medical
community. Many have objected to
the government singling out doctors
for intrusive vigilance inspections.
 Some felt the government has raked

up the old proposal to arm-twist
doctors against striking for wage
revision.
 Some felt that the timing of the move

was suspicious as it comes at the fag
end of the LDF’s term.
64
J&K IT and Real Estate policy 2020

Syllabus subtopic: Government Policies  The policy document says J&K
and Interventions for Development in contributes only 0.1% of the total
various sectors and Issues arising out of cognisable crimes under the Indian
their Design and Implementation. Penal Code.
Prelims and Mains focus: about the key  Two IT parks with an area of five
highlights of the policies mentioned; about lakh square feet are being developed
J&K Reorganisation Act in Jammu and Srinagar which will
have “dedicated and uninterrupted
News: The Jammu and Kashmir (J&K) broad band connectivity and wi-fi
government is highlighting good quality access.”
air and low crime rate in the newly created
Union Territory to attract investors.  The policy says that “as a special
dispensation for IT units, the land
Background allotment would be decided on top
 Internet has been snapped in the Union priority” and the government would
Territory since August 5, 2019 when encourage private sector
the Home Minister moved two bills participants to become Internet
in the Rajya Sabha to revoke the service providers to enable high speed
special status under Article 370. Internet connectivity in all panchayats
of J&K.
 Following Supreme Court directions,
2G mobile connectivity was restored in J&K Real Estate Policy highlights
J&K in January with access only to  It states that a vast land bank owned
301 government-approved websites. by the government would be
disbursed to “private developers”
 Investment opportunities in 14 sectors through a transparent bidding
in the Union Territory were unveiled at process. The Home Minister had told a
an investor conference in the national delegation from J&K on September 3,
capital in January. 2019 that “only government land
would be used to establish
industries, hospitals and educational
Highlights of J&K Information institutions” and “nobody's land
Technology (IT) Policy 2020 would be taken away.”
 The J&K administration is offering an
incentive to IT companies to operate  The existing land acquisition laws
in three-shifts and to facilitate would be amended to incorporate the
women working during the night by landowners as stakeholders in the
provided transportation and security. housing development. The authorities
without going into the compulsory land
 At least 15% of “plug and play” acquisition will either partner with
premises in designated IT parks will be private players on equity basis or
reserved for women entrepreneurs. facilitate land assembly by acquisition
or pooling through private players as
65
done by other development authorities
in other States.
 The developers will have to reserve

20% dwelling units in group housing
projects for economically weaker
section and lower income groups.
 The UT of J&K is offering 100%

exemption on stamp duty, land use
charge, permission, construction and
processing fee for the housing for
Economically Weaker Section and
LIG groups.
 The government will persuade the

National Housing Bank, HUDCO,
financial institutions, commercial
banks and insurance sector to extend
the network of operations in J&K to
provide affordable housing credit to
people.
66
States not bound to give reservations in job,

promotions
Syllabus subtopic: Functions and Assistant Engineer (Civil) in PWD,
Responsibilities of the Union and the Uttarakhand.
States, Issues and Challenges Pertaining to
the Federal Structure, Devolution of What did the SC say?
Powers and Finances up to Local Levels  Article 16 (4) and 16 (4-A) are in the
and Challenges Therein. nature of enabling provisions, vesting
a discretion on the state government
Prelims and Mains focus: about the SC to consider providing reservation, if the
judgement on reservations in circumstances so warrant.
promotions/judgements and related
constitutional provisions  It is a settled law that the state
government cannot be directed to
News: The Supreme Court has ruled that provide reservation for appointment in
states are not bound to provide public posts.
reservation in appointments and
promotions and that there is no  Similarly, the state is not bound to
fundamental right to reservation in make reservation for Scheduled
promotions. Castes and Scheduled Tribes in
matters of promotions.
Constitutional provisions regarding
reservations/promotions in jobs  However, if they (state) wish to
 Article 16(4) empowers the state to exercise their discretion and make such
make any provision for the provision, the state has to collect
reservation of appointments or posts quantifiable data showing inadequacy
in favour of any backward class of of representation.
citizens which, in the opinion of the
state, is not adequately represented  If the decision of the state to provide
in the services under the state. reservations in promotion is
challenged, the state concerned shall
 By way of the 77th Amendment Act, have to place before the court the
a new clause (4A) was introduced to requisite quantifiable data and satisfy
Article 16, empowering the state to the court that such reservations
make provisions for reservation in became necessary on account of
matters of promotion to SC/ST inadequacy of representation of
employees if the state feels they are not Scheduled Castes and Scheduled
adequately represented in services. The Tribes in a particular class or classes of
Supreme Court had upheld the posts without affecting general
amendment as constitutional. efficiency of administration.
What was the case about?  The state can form its own opinion
The Supreme Court was deciding a group on the basis of the material it has in
of appeals pertaining to reservations to its possession already or it may gather
SCs and STs in promotions in the posts of such material through a
67
Commission/Committee, person or
authority. All that is required is that
there must be some material on the
basis of which the opinion is formed.
The court should show due deference
to the opinion of the state. Such
opinion is not beyond judicial
scrutiny.
 On the requirement for data collection,

the court said this is only to justify
reservation to be made in the matter of
appointment or promotion to public
posts, according to Article 16 (4) and
16 (4-A) of the Constitution. As such,
collection of data regarding the
inadequate representation of
members of the Scheduled Castes and
Schedules Tribes is a prerequisite for
providing reservations, and is not
required when the state government
decided not to provide reservations.
68
Integrated Air Defence Weapon System

(IADWS)
Syllabus subtopic: Bilateral, Regional and four AMRAAM Control Sections and
Global Groupings and Agreements 134 Stinger FIM-92L missiles.
involving India and/or affecting India’s
interests.  Also included are 32 M4A1 rifles;
40,320 M855 5.56mm cartridges; Fire
Prelims and Mains focus: about the Distribution Centres (FDC); Handheld
India-US weapon deal; about IADWS Remote Terminals; Electrical
Optical/Infrared (EO/IR) Sensor
News: The U.S. Department of State has Systems; AMRAAM Non-
approved the potential sale of a $1.867 Developmental Item-Airborne
billion Integrated Air Defence Weapon Instrumentation Units (NDI-AIU);
System (IADWS) to India. Multi-spectral Targeting System-
Model A (MTS-A); Canister
About the weapon system Launchers (CN); High Mobility
 The Integrated Air Defence Weapon Launchers (HML); Dual Mount
System, also known as the National Stinger (DMS) Air Defence Systems;
Advanced Surface to Air Missile Vehicle Mounted Stinger Rapid
System (NASAMS), provides Ranger Air Defence Systems, the
integrated air missile defence and is statement said.
currently deployed around
Washington, DC.  Communications equipment, testing
and training equipment and
 The IADWS system includes radar, documentation and technical and
launchers, targeting, and guidance logistics support are also part of the
systems, advanced medium-range package.
air-to-air missile (AMRAAM)
and Stinger missiles, and related Significance
equipment and support.  India intends to use these defense
articles and services to modernize its
About the deal armed forces, and to expand its
 The potential sale, which is being existing air defense architecture to
processed via the Foreign Military counter threats posed by air attack.
Sales (FMS) route, is now before the
U.S. Congress for consideration, with a  This will contribute to India's military
30-day window for Congress raise any goal to update its capability while
objections to the sale. further enhancing greater
interoperability between India, the US,
 The Indian government had asked to and other allies.
buy an IADWS comprised of five
AN/MPQ-64Fl
Sentinel radar systems; 118
AMRAAM AIM-120C-7/C-8 missiles;
three AMRAAM Guidance Sections;
69
Draft National Policy on Rare Diseases, 2020

Syllabus subtopic: Issues Relating to India will construe the three
Development and Management of Social categories as identified in the policy.
Sector/Services relating to Health,
Education, Human Resources. Criticism of the policy
Public health groups have criticised the
Prelims and Mains focus: about the draft policy on following grounds:
policy and its features; its criticisms 1. It appears the entire policy is drafted to
justify that government cannot provide
News: After being directed by the Madras treatment due to high cost as it is
High Court, on January 6, to consider the resource constrained.
issue of providing medical care to those 2. The policy has adopted a very narrow
suffering from the rare Lysosomal scope limited to only 3 categories,
Storage Disorders (LSD) as a “national while ignoring those where treatment
emergency”, the Centre informed the is yet to be developed and R&D is
court of having notified a draft national required.
policy on rare diseases.
Rare diseases
About the draft policy  According to the government, so far
 It proposes to set up a registry under only about 450 diseases have been
the Indian Council of Medical recorded in India from tertiary care
research (ICMR) to create a hospitals that are globally considered
database. as rare diseases.
 To provide financial assistance of up  The most commonly reported

to Rs 15 lakh to Ayushman Bharat diseases include Haemophilia,
beneficiaries for rare diseases that Thalassemia, Sickle-cell Anaemia and
require a one-time treatment in Primary Immuno Deficiency in
tertiary hospitals only. children, auto-immune diseases,
Lysosomal storage disorders such as
 It also suggests voluntary Pompe disease, Hirschsprung disease,
crowdfunding as an alternate means Gaucher’s disease, Cystic Fibrosis,
of financial support and notifying Hemangiomas and certain forms of
government hospitals to facilitate muscular dystrophies.
treatment.
 There are 7,000 - 8,000 rare diseases,
 Alternatively, the draft proposes to set but less than 5% have therapies
up a digital platform for voluntary available. About 95% rare diseases
crowdfunding. have no approved treatment and less
than 1 in 10 patients receive disease
 The draft policy also categorises rare specific treatment. Where drugs are
diseases under three categories based available, they are expensive.
on clinical experiences and treatment
availability. The policy also states that
in the absence of data to clearly
define rare diseases, such diseases in
70
Salwa Judum
Syllabus subtopic: Maoist ideology in some states in rural
 Issues Relating to Development and India that is designated by India as a
Management of Social Sector/Services terrorist organisation on account of
relating to Health, Education, Human their violent activities. The movement
Resources. later received bi-partisan support from
 Linkages between Development and both the ruling and opposition parties.
Spread of Extremism.
Prelims and Mains focus: about the case;

salwa judum; about NHRC: composition
and powers
News: The National Human Rights

Commission (NHDC) has accused state
officials of the Chhattisgarh government
of ‘abetting’ the crimes allegedly
committed by Special Police Officers as
part of Salwa Judum’s anti-Maoist
activities in the state.
Background
According to the complaint, filed by
human rights organisation People’s
Union for Civil Liberties (PUCL), seven
people were killed and 95 houses were
torched by SPOs in the three villages,
leading to other villagers abandoning their
homes and fleeing. When they returned in
2013, the villagers filed a complaint with
the Sukma collector in July 2013. The
NHRC requested them to provide
 In 2008, Chhattisgarh along with
information.
neighbouring Jharkhand accounted for
over 65% of the total Naxal violence in
What is Salwa Judum?
the country. Chhattisgarh state had
 Salwa Judum (meaning "Peace
trained a number of 'Special Police
March" or "Purification Hunt" in
Officers' or SPOs (also commonly
Gondi language) was a militia that
referred to as Koya commandos),
was mobilised and deployed as part from amongst the tribals who were part
of anti-insurgency operations in of Salwa Judum
Chhattisgarh, India, aimed at
countering Naxalite violence in the
 The militia, consisting of local tribal
region.
youth, received support and training
from the Chhattisgarh state
 It started in 2005 as a state sponsored government. It has been outlawed
vigilante movement against the and banned by a Supreme Court
Naxalites, a far-left movement with
71
court order, but continues to exist in
the form of Armed Auxiliary Forces,
District Reserve Group and other
vigilante groups.
 On 5 July 2011, the Supreme Court

of India declared the militia to be
illegal and unconstitutional, and
ordered its disbanding. The Court
directed the Chhattisgarh government
to recover all the firearms, ammunition
and accessories. The use of Salwa
Judum by the government for anti-
Naxal operations was criticised for its
violations of human rights and
poorly trained youth for counter-
insurgency roles. It also ordered the
government to investigate all instances
of alleged criminal activities of Salwa
Judum.
 On 25 May 2013, its founder

Mahendra Karma, who had become
a senior Congress party leader was
killed in a Naxalite attack along with
other party members in Darbha Valley
of Chhattisgarh, 400 km south of
Raipur and 50 km from Jagdalpur.
72
Supreme Court upholds validity of

amendments in SC/ST Act
Syllabus subtopic: Government Policies Scheduled Caste and Scheduled Tribe
and Interventions for Development in (Prevention of Atrocities) Act, 1989
various sectors and Issues arising out of  The SC/ST Act was enacted to
their Design and Implementation. prevent atrocities against scheduled
castes and scheduled tribes.
Prelims and Mains focus: about the
court’s ruling; about SC/ST act and  It was enacted when the provisions of
amendments to it; arguements against the the existing laws (such as the
amendments Protection of Civil Rights Act 1955
and Indian Penal Code) were found to
News: The Supreme Court upheld the be inadequate to check these crimes
constitutional validity of amendments (defined as 'atrocities' in the Act).
made in 2018 to the Scheduled Castes Recognising the continuing gross
and Scheduled Tribes (Prevention of indignities and offences against
Atrocities) Act, 1989. Scheduled Castes and Tribes, the
Parliament passed the Act.
Background
The amendments were brought to nullify Objectives of the Act
the effect of the top court’s March 20, 1. to deliver justice to these communities
2018 judgment in the Subhash through proactive efforts to enable
Kashinath Mahajan vs State of them to live in society with dignity and
Maharashtra & Another case. In it, the self-esteem and without fear or
SC took serious note of “instances of violence or suppression from the
abuse” of the 1986 law by “vested dominant castes.
interests” for political or personal 2. The practice of untouchability, in its
reasons, and laid down stringent overt and covert form was made a
safeguards, including provision for cognizable and non compoundable
anticipatory bail and a “preliminary offence, and strict punishment is
inquiry” before registering a case under the provided for any such offence.
SC/ST Act.
 Section 23(1) of the Act authorises the
What were those amendments? Central Government to frame rules for
 It said that a police officer carrying out the purpose of the Act.
investigating a case under the law Drawing power from this section, the
will not require prior sanction for Scheduled Castes and the Scheduled
arresting an accused. Tribes (Prevention of Atrocities) Rules
of 1995 were framed. The rules for the
 It also said the provision of Act were notified on 31 March 1995.
anticipatory bail will not apply to
cases under the Act.  The purpose of the Act was to help
the social inclusion of Dalits into
Indian society, but the Act has failed
to live up to its expectations admitted
73
by the Union Minister for Home to the abuse of law as we are living in a
Affairs in parliament on 30 August civilised society and there were many
2010. growing instances of misuse of this act.
 A number of cases of misuse of this  The new law could be used to harass
Act has been reported from different citizens by arresting them on the
parts of the country as mentioned in basis of mere allegations.
the Supreme Court verdict of 20
March 2018. In this verdict, the  The amendment excludes Section 438
Supreme Court of India banned of CrPC, violates constitutional
immediate arrest of a person mandate under Articles 14 and 21.
accused of insulting or injuring a
Scheduled Caste/Scheduled Tribe  The amendments rule out any
member to protect innocents from provision for anticipatory bail for a
arbitrary arrest. person accused of atrocities against
SC/STs, notwithstanding any court
SC/ST amendment Act, 2018 order.
 In August, 2018, the parliament of
India passed the Scheduled Castes
and Scheduled Tribes (Prevention of
Atrocities) Amendment Bill, 2018, to
bypass the ruling of the Supreme
Court of India laying down procedures
for arrests under the Act.
 The bill inserts section 18A (1) (a) in

the 1989 Act, that says a “preliminary
enquiry shall not be required for
registration of an FIR against any
person.”
 The Bill also inserts Section 18A (1)

(b), which says “the investigating
officer shall not require approval for
the arrest, if necessary, of any person
against whom an accusation of having
committed an offence under this Act
has been made and no procedure, other
than that provided under this Act or the
Code, shall apply.”
Arguements against the 2018

amendments to the Act
 The act violates “basic principles of
liberty and accountability” after the
amendments. According to a plea filed
in the Supreme Court, “the Supreme
Court cannot remain a mute spectator
74
Indigenous Muslims of Assam

Syllabus subtopic: Issues Relating to  While the Deshis are 13th century
Development and Management of Social converts from indigenous
Sector/Services relating to Health, communities such as Koch Rajbongshi
Education, Human Resources. and Mech, the Goriyas and Moriyas
trace their lineage to converts as well
Prelims and Mains focus: about the move as soldiers, karigars etc who came to
and its significance; arguements for and the region during the Ahom rule.
against the move; about indigenous Smaller groups such as Julha Muslims
Assamese muslims and their concerns also fall under this category.
News: Assam is planning to implement a  These groups consider themselves

census to identify Assam’s ‘khilonjiya’, distinct from the Bengali-speaking
or indigenous Muslim population in Muslims who migrated from East
2020. Bengal or Bangladesh.
Background
 The Assam Budget 2019-2020 Arguements in favour of conducting a
(announced in February 2019) listed census
the creation of a ‘Development  Many indigenous Muslims have been
Corporation for Indigenous wrongfully tagged D-voter or
Muslims’ aimed at the ‘holistic Doubtful-voter in Assam. They face a
development’ of the community as major identity crisis since they are
well as a “socio-economic census” to confused with Bangladeshis.
help assess their “socio-economic
condition”.  According to Census 2011, Muslims
constitute 34.22 per cent of the 3.12
 On February 6, 2020, a memo was crore population of Assam. Around
issued by the Welfare of Minorities 12 per cent of that is indigenous
and Development Department calling Muslim. Because of migration from
for a meeting regarding a socio- Bangladesh, this group has lost its
economic census of indigenous identity and are lagging behind in
Muslims of Assam — Goria, Moria, terms of social and political
Ujani, Deshi, Jola, Mainal, Syed etc. development.
 However, the state govt. said the  There are government schemes for
planned census is not a socio-economic indigenous communities in Assam
one but simply to count the population like the Bodos, Koch Rajbongshis,
of the indigenous Muslims of Assam. Sooteas, Ahoms. Just like those are
indigenous groups, so are Goriyas and
About the Assamese Muslim community Moriyas. Since Muslims world over
 Under the umbrella of the indigenous have similar-sounding names, it is
Assamese Muslim community fall important to identify indigenous
three main groups: the Goriyas, the Assamese Muslims through a census,
Moriyas (from Upper Assam) and the so that they can benefit from the
Deshis (from Lower Assam).
75
various developmental schemes in
Assam.
 This includes Clause 6 of the Assam

Accord which grants “constitutional,
legislative and administrative
safeguards” to the “Assamese people”.
The report on its implementation is set
to be submitted by the Centre-
appointed high-powered committee
soon. The census will help the
indigenous Assamese Muslims benefit
not just from Clause 6 but other
schemes too.
 The census will “most probably” be

carried out by the Omeo Kumar Das
Institute of Social Change and
Development, and will cover the entire
state. The community has no benefits,
no MLAs, no political representation.
The rationale behind this is to help in
the development of their identity, their
culture, their literature.
Arguements against conducting a census

 Some fear such a census will “further
marginalise” the descendants of
Bengali-speaking migrants in Assam.
The survey identifies one section of
Muslims so that they can get certain
benefits but ignores another section
completely. The polarisation and
divisions will automatically increase as
a result of this.
 Also, how does one define an

indigenous Assamese Muslim?
Certain East Bengali-origin migrants
have been living in Assam since the
1800s. Are they any less indigenous
Assamese than other groups? If the
government wants to really improve
conditions of Muslims, why not do a
survey/census of all economically
deprived Muslims?
76
Sudan to handover Omar al-Bashir to ICC

Syllabus subtopic: Important International genocide in Darfur. Thus, the ousted
Institutions, agencies and fora - their president denied the charges and
Structure, Mandate. accused the ICC of being politicized.
Prelims and Mains focus: about ICC:
powers and how it is different from ICJ What now?
News: Sudan has agreed to hand over  Authorities said the former president,
ousted autocrat Omar al-Bashir and and others charged by the ICC, should
others to the International Criminal appear at The Hague to face a tribunal.
Court (ICC).
 The commitment came at peace talks
Background between Sudan's government and rebel
 Bashir is accused of serious crimes in groups from the Darfur region.
a conflict that broke out in Darfur in
2003 and led to the deaths of 300,000  If al-Bashir is handed over, it would be
people and the displacement of some only the second time a country has
2.5 million others, according to the surrendered a foreign leader to the
United Nations. ICC. Ivory Coast transferred former
President Laurent Gbagbo in 2011 to
 The International Criminal Court The Hague, where he was acquitted
(ICC) issued two arrest warrants last year of crimes against humanity
against Al-Bashir, in 2009 and 2010, charges linked to alleged involvement
on charges of committing war in post-election violence.
crimes, crimes against humanity and
77
Privilege Motion
Syllabus subtopic: Parliament and State Parliament, individually and collectively,
Legislatures—Structure, Functioning, so that they can “effectively discharge
Conduct of Business, Powers & Privileges their functions”. When any of these rights
and Issues Arising out of these. and immunities are disregarded, the
offence is called a breach of privilege and
Prelims and Mains focus: about the is punishable under law of Parliament.
privilege motion: procedure and role of
speaker/chairperson; about SC judgement Procedure
on reservations in job, promotions A notice is moved in the form of a motion
by any member of either House against
News: Lok Sabha Speaker informed the those being held guilty of breach of
House that he had received the notice of privilege. Each House also claims the right
privilege motion moved by the Congress to punish as contempt actions which, while
against Social Justice Minister for his not breach of any specific privilege, are
statement on the Supreme Court order offences against its authority and dignity.
on the issue of reservation in promotion
for Scheduled Castes (SCs), Scheduled Rules governing the privilege motion
Tribes (STs) and Other Backward  Rule No 222 in Chapter 20 of the
Classes (OBC). Lok Sabha Rule Book and
correspondingly Rule 187 in Chapter
Why? 16 of the Rajya Sabha rulebook
 The Congress accused the minister of governs privilege.
‘misleading’ the House by stating that
the case pertained to a decision of the  It says that a member may, with the
Uttarakhand government in 2012 when consent of the Speaker or the
the Congress was in power. Chairperson, raise a question
involving a breach of privilege either
 The Minister had also informed that of a member or of the House or of a
the Centre was not a party to the case committee thereof.
and assured that ‘appropriate steps’
would be taken.  The rules however mandate that any
notice should be relating to an
 Stating that it was a misleading incident of recent occurrence and
argument, Congress MPs not only should need the intervention of the
moved a privilege motion but also read House. Notices have to be given
out the names of advocates who before 10 am to the Speaker or the
represented the BJP government Chairperson.
Uttarakhand in the Supreme Court.
However, the Speaker cut him by short Role of the Speaker/Chairman
stating that the motion is under his  The Speaker/RS chairperson is the
consideration. first level of scrutiny of a privilege
motion.
About Privilege Motion
Parliamentary privileges are certain rights  The Speaker/Chair can decide on the
and immunities enjoyed by members of privilege motion himself or herself
78
or refer it to the privileges
committee of Parliament.
 If the Speaker/Chair gives consent

under Rule 222, the member concerned
is given an opportunity to make a short
statement.
Privileges committees in the Parliament

 In the Lok Sabha, the Speaker
nominates a committee of privileges
consisting of 15 members as per
respective party strengths. A report is
then presented to the House for its
consideration. The Speaker may permit
a half-hour debate while considering
the report. The Speaker may then pass
final orders or direct that the report be
tabled before the House.
 A resolution may then be moved

relating to the breach of privilege that
has to be unanimously passed.
 In the Rajya Sabha, the deputy

chairperson heads the committee of
privileges, that consists of 10
members.
79
Constitution (Scheduled Tribes) Order

(Amendment) Bill, 2019
Syllabus subtopic: Government Policies  The Bill removes reference to six
and Interventions for Development in tribes. These are: (i) Abor, (ii)
various sectors and Issues arising out of Galong, (iii) Khampti, (iv) Mishmi
their Design and Implementation. (Idu, Taroon), (v) any Naga tribes,
and and (vi) Momba.
Prelims and Mains focus: about the key
features of the bill and its significance  The Bill seeks to include the
Parivara and the Talawara
News: The Lok Sabha on Tuesday passed communities in the ST category
The Constitution (Scheduled Tribes) to ensure they get reservation and
Order (Amendment) Bill, 2019 by voice other benefits provided by the
vote. government.
Background  The Siddi tribes of Belagavi and

The Constitution (Scheduled Tribes) Order Dharwad (Karnataka) would also
(Third Amendment) Bill, 2019 was be included in the category apart
introduced in Rajya Sabha on February from those living in the Uttar
11, 2019 by the Minister of Tribal Affairs. Kannada districts. The amendments
It was passed by Rajya Sabha on had been made in the list of the
February 13, 2019. STs in Karnataka.
Demands raised by other parties

Key highlights of the Bill  The Nationalist Congress Party
 The Constitution (Scheduled Tribes) demanded that the Dhangar
Order, 1950 specifies the tribal community from Maharashtra be
communities which are deemed to be included in the ST.
Scheduled Tribes. The Bill amends
Part 18 of the Order which specifies  The Congress (INC) said a
the Scheduled Tribes in Arunachal comprehensive bill is required.
Pradesh.
 All India Trinamool Congress
 The Bill inserts 5 entries for granting (AITC) said the government should
Scheduled Tribe status to these take steps to make the process of
communities. These are: inclusion easier.
1. Galo
2. Mishmi-Kaman (Miju Mishmi), Idu
(Mishmi), Taraon (Digaru, Mishmi)
3. Monpa, Memba, Sartang, Sajolang
(Miji)
4. Nocte, Tangsa, Tutsa, Wancho, and
5. Tai Khamti.
80
Manual scavenging related deaths in India

Syllabus subtopic: Government Policies  Apart from that, a national survey was
and Interventions for Development in conducted in 194 districts in 18
various sectors and Issues arising out of States where 48,345 manual
their Design and Implementation. scavengers were identified till January
31, taking the total to 62,904.
features of manual scavenging act; about The National Commission for Safai
NCSK; data related to manual scavengers; Karamcharis (NCSK) had received
efforts made by the govt to curb it reports about the death of people cleaning
sewers and septic tanks. These cases were
News: The number of people who died reported from 18 States and Union
while cleaning sewers and septic tanks Territories, while 13 States and UTs
in the country increased by almost 62% submitted “nil reports”.
from 68 in 2018 to 110 in 2019, according
to a reply given by the Social Justice and
Empowerment (SJE) Ministry to the Lok
Sabha.
Background
Manual scavenging is banned under the
Prohibition of Employment as Manual
Scavengers and their Rehabilitation Act,
2013.
Data on number of manual scavengers

across the country
 A total of 14,559 manual scavengers
had been identified by Municipalities
and Gram Panchayats in 13 States
from 2013-2014 till January 31, 2020.
81
Pesticide Management Bill, 2020

Syllabus subtopic: Government Policies on an average eat away around 20-25%
and Interventions for Development in of the total food produced.
their Design and Implementation. What is the bill aimed at?
 The new draft bill is aimed at
Prelims and Mains focus: about the key protecting the interest of the
features of the bill; pesticide production in farmers, so that they get safe and
India and the need for monitoring it effective pesticides.
News: The Union cabinet has approved the  Farmers would be empowered to get
Pesticide Management Bill, 2020 which all information regarding the
will be introduced in the budget session of available pesticides, their strength,
Parliament. weaknesses, and risks from the dealers
they choose to purchase the pesticide
Background from.
The move comes against the backdrop of
rising concern over the need to protect Key features of the bill
farmers from spurious and sub- 1. The bill seeks to replace the existing
standard pesticides, along with the need Insecticide Act, 1968, which the
to assess their potential effects on the government said is “age-old and needs
health of people and that of the immediate re-writing".
environment.
2. Any person who wants to import,
Pesticide production in India manufacture, or export pesticides
 India is among the leading producers would have to register under the new
of pesticides in Asia. In the domestic bill and provide all details regarding
market, Maharashtra, Uttar Pradesh, any claims, expected performance,
Punjab, and Haryana are among the efficacy, safety, usage instructions, and
states with the highest recorded infrastructure available to stock that
consumption. pesticide. The information will also
include details on the pesticide’s
 The Indian pesticides market was potential effects on the environment.
worth INR 197 Billion in 2018. The
market is further projected to reach a 3. The bill also has a provision to
value of INR 316 Billion by 2024. provide compensation if there is any
farm loss because of low quality or
 The significance of pesticides has been spurious pesticides. The penalty
rising over the last few decades collected from the
catalyzed by the requirement to manufactures/dealers and funds put in
enhance the overall agricultural by the government would be used to
production and the need to safeguard form a central fund.
adequate food availability for the
continuously growing population in the 4. All the information regarding the
country. In India, pests and diseases, available pesticides would be
available in the public domain, in all
82
languages in digital format, so that
farmers can make the right decision on
their use, the minister said.
5. The bill also plans to regulate

pesticides-related advertisements to
check misleading claims by industries
and manufacturers. The bill also seeks
to promote organic pesticides.
Way forward
 The draft bill has the opportunity to
clean up the food and farming
system of India, but needs to make the
registration process more stringent for
manufacturers. A complete overhaul of
the registration process for pesticides is
required, so that new registrations
happen only when there is need and no
safer alternatives exist.
 The setting up of a compensation fund

offers hope for farmers affected by
poisoning, but they should not be
compelled to take recourse to the
Consumer Protection Act to claim
compensation.
83
Scope of Direct Tax Bill enlarged

Syllabus subtopic: Government Policies Benefits
and Interventions for Development in  As per the Bill, the biggest advantage
various sectors and Issues arising out of of the scheme is that the taxpayer
their Design and Implementation. would be required to pay only the
amount of the disputed taxes. The
Prelims and Mains focus: about the new taxpayer will get complete waiver of
amendments made; about Direct Tax Bill interest in case he pays the due amount
and its significance by March 31, 2020.
News: The Union Cabinet approved  For disputed penalty, interest and fee
widening of the scope of the ''Direct Tax not connected with the disputed tax,
Vivad se Vishwas Bill, 2020''. the taxpayer would be required to pay
only 25 per cent for settling the
Background dispute.
 The Bill, introduced in the Lok Sabha  The amount to be paid would be
during the ongoing Budget session, higher, in case the taxpayer opts for the
sought to substantially reduce the scheme late and pays after March 31,
huge tax arrears which are locked in 2020. This provision is aimed at
litigation between the taxpayers and encouraging the taxpayers to settle
the revenue at the level of the dispute within the current
Commissioner (Appeals), Income Tax financial year itself which ends on
Appellate Tribunal (ITAT), High March 31, 2020.
Courts and the Supreme Court.
 The amount of disputed direct tax

arrears totalled Rs 9.32 lakh crore till
November 2019.
What change has been made in the bill?
 The bill will now also cover cases

pending in debt recovery tribunals
(DRTs).
 As per the proposed amendments, now

income tax disputes in arbitration,
various tribunals, courts and DRT
cases can be settled.
 Even the search and seizure cases

where the recovery is below Rs 5
crore too could be redressed under the
scheme.
84
India-Sri Lanka DTAA amended

Syllabus subtopic: India and its  Therefore, amendment of the India-Sri
Neighborhood- Relations. Lanka DTAA bilaterally is required to
update the preamble and also to insert
Prelims and Mains focus: about the move Principal Purpose Test (PPT)
and its significance; about DTAA; BEPS; provisions to meet the minimum
OECD standards on treaty abuse under
Action 6 of G-20 OECD BEPS
News: The Union Cabinet, chaired by PM project.
Modi approved signing and ratification of
the protocol amending the agreement Benefits of the move
between India and Sri Lanka for the The amendment of the preamble text and
avoidance of double taxation and the inclusion of Principal Purpose Test (PPT),
prevention of fiscal evasion with respect a general anti-abuse provision in the
to taxes on income. Double Taxation Avoidance Agreement
(DTAA) will result in curbing tax
Background planning strategies which exploit gaps
The existing DTAA between India and Sri and mismatches in tax rules.
Lanka was signed on January 22, 2013 and
came into force on October 22, 2013.
Why was the amendment required?

 India and Sri Lanka are members of
the inclusive framework and are
required to implement the minimum
standards under G-20 OECD
(Organisation for Economic
Cooperation and Development
(OECD) BEPS (Base Erosion and
Profit Shifting) action reports in
respect of their DTAAs with inclusive
framework countries.
 Minimum standards under BEPS

Action 6 can be met through the
multilateral convention to implement
tax treaty-related measures to prevent
base erosion and profit shifting
Multilateral Instrument (MLI) or
through bilateral agreement.
 India is a signatory to the MLI.

However, Sri Lanka is not a signatory
to the MLI as of now.
85
Major Ports Authority Bill, 2020

Syllabus subtopic: law would also help in improving
 Government Policies and Interventions infrastructure.
for Development in various sectors and  It will provide more operational
Issues arising out of their Design and autonomy to ports and fast decisions
Implementation. will be possible at port level only.
 Infrastructure: Energy, Ports, Roads,
Airports, Railways etc.  This will empower the major ports to
perform with greater efficiency on
Prelims and Mains focus: about the key account of full autonomy in decision
features of the bill; major ports of India making and by modernising the
institutional framework of major ports.
News: The Union Cabinet chaired by the
Prime Minister has given its approval to  This will not only boost India’s EXIM
the Major Ports Authority bill, 2020 which trade but generate employment.
will be introduced in the ongoing budget
session of the Parliament.
Major Ports of India
Background India has 12 major ports -- Deendayal
Earlier, the Bill was introduced in the Lok (erstwhile Kandla), Mumbai, JNPT,
Sabha in 2016 and thereafter referred to Marmugao, New Mangalore, Cochin,
the Parliamentary Standing Committee but Chennai, Kamarajar (earlier Ennore), V O
got lapsed after the dissolution of previous Chidambarnar, Visakhapatnam, Paradip
Lok Sabha. and Kolkata (including Haldia).
Why was it required?

 There had been many changes in the
manner ports were operated since the
1960, including private players and
public private partnership (PPP) model
being used.
 The disputes with private companies

and PPP operators had been cropping
up, but the existing law had no
provisions to deal with them
Key features/benefits of the Bill

 It will replace the Major Port Trusts
Act, 1963 which governs India’s 12
major ports.
 The proposed law is aimed at
enhancing the overall efficiencies of
the ports.
 The 12 major ports in India would get
a boost through the new law. The new
86
WHO to score countries affected by COVID-19

Syllabus subtopic: reservoir and transmission, natural
 Issues Relating to Development and history, efficacy of public health
Management of Social Sector/Services interventions, development of new
relating to Health, Education, Human vaccines and therapeutics (mostly
Resources. repurposed drugs at this time).
 Important International Institutions,
agencies and fora - their Structure,  The WHO has activated its R&D
Mandate. Blueprint — a global strategy and
preparedness plan during epidemics.
Prelims and Mains focus: about the move
and its significance; efforts made by India Efforts made by India through setting
in this regard; about coronavirus outbreak up laboratories
and its impact; about WHO  India has set up 106 Virus Research
and Diagnostic Laboratories
News: The World Health Organisation (VRDLs) towards lab support. From
(WHO) said that the countries affected by just two nodal laboratories at the helm
the coronavirus disease (COVID-19) will of affairs for diagnostics during the
be scored on the level of clinical severity. H1N1 influenza virus (swine flu)
outbreak in 2009-10, the Indian
About the move Council of Medical Research has now
 India is also among the 24 affected established 106 VRDLs, of which 14
countries which will be part of the are strategically located near
global COVID-19 data platform, international airports and have been
which will collect clinical data from equipped to provide lab support and
all affected countries and is now prevent the spread of COVID-19.
working on a score for each in terms of
clinical severity.  VRDLs at government medical
colleges at Ahmedabad and Guwahati
 Scoring means from asymptomatic were also identified within the network
to severe illness and death. The score to start testing samples for COVID-19.
card is yet to be finalised.
 The ICMR-National Institute of
Cases of coronavirus Virology is the apex laboratory in Pune
According to WHO, there were 42,708 for reconfirmation of any positive
confirmed cases reported in China and samples and quality assurance for
1,017 people have lost their lives to this testing of samples.
virus. Of these, there are 393 cases in 24
countries and one death outside China.  The National Centre for Disease
Control in New Delhi is also engaged
Discussions held by WHO in performing tests for novel
 Around 350 scientists were brought coronavirus (nCoV) infections.
together in Geneva from February 11
to 12 to discuss the knowledge gaps  To ensure there is readiness across
and key research priorities in various the country to test a large number of
areas such as epidemiology, animal samples in the event of any kind of
87
outbreak, the Department of Health
Research had launched a phase-wise
expansion of the laboratory network.
The estimated cost in 2013 was Rs 550
crore for a five-year phase-wise
expansion programme which now
has got extended. While the renewal of
the programme is in process, the
project cost has gone upto to Rs 700
crore.
 The sole criteria for setting up the

VRDL was that it should be
established at a government medical
college. The site visits were conducted
to ensure adequate space. Ninety-seven
per cent of the laboratory network is
across government medical colleges
and barely 3 per cent with ICMR
institutions.
 The VRDL is functional even at

remote locations such as the Late Sri
Baliram Kashyap Memorial
Government Medical College in
Maoist-affected Jagdalpur in
Chhattisgarh.
88
US-Taliban Peace deal

Syllabus subtopic: Effect of Policies and What if the deal gets implemented?
Politics of Developed and Developing  If the agreement goes ahead, it would
Countries on India’s interests potentially bring an end to
America’s longest war by launching
Prelims and Mains focus: about the peace direct peace talks between the
deal and its significance; about Us Taliban and the Afghan government
invasion of Afghanistan for the first time.
 A deal would give President Donald
News: More than 18 years after the US Trump a talking point in his bid for
invaded Afghanistan, President Donald re-election, allowing him to argue he
Trump has conditionally approved a fulfilled a campaign promise to
peace deal with the Taliban, potentially extricate America from "endless"
beginning the end of America’s longest wars abroad.
war.
About the US-Taliban peace talks
What is the deal about?  Since the U.S. and Taliban renewed
The deal would see the withdrawal of discussions in the Qatari capital
U.S. troops and the start of peace talks Doha at the end of 2019, the talks have
between the insurgents and the Afghan focused on a U.S. demand for the
government. Taliban to scale back its attacks
across the country as a test of its
What is the condition on the deal? commitment to ending the conflict. In
The agreement will go ahead only if the an earlier round of negotiations, the
Taliban abide by a pledge to reduce Taliban rejected the idea of a full-
violence over a seven-day period. blown cease-fire, and as a result U.S.
special envoy Zalmay Khalilzad has
Has there been any peace agreement in pursued a deal to "reduce" violence,
the past? though U.S. officials have yet to
 The two sides have revived the same explain exactly what that would entail.
draft agreement that came close to  In the recent talks in Doha, Khalilzad
being signed in September 2019, — a veteran diplomat who once served
which calls for a timeline for a U.S. as ambassador to Kabul — first
troop pullout in exchange for the proposed a wider reduction of violence
Taliban agreeing to cut ties with deal that the Taliban rejected. The
terrorist groups and entering into insurgents then came back with a more
peace talks with their foes in the limited proposal, which the Americans
Afghan government. viewed as inadequate but worth
negotiating further. In recent weeks,
 But the attempt fell apart at the last the two sides have found common
moment and it remained unclear if ground around a compromise deal to
the Taliban was ready to negotiate a reduce violence.
genuine peace settlement with a
government in Kabul that it has long War in Afghanistan (2001–present)
rejected as a "puppet" of the United  The War in Afghanistan code named
States. Operation Enduring Freedom
(2001–14) and Operation Freedom's
89
Sentinel (2015–present) following the Afghan government troops battling
United States invasion of Taliban insurgents.
Afghanistan of 7 October 2001, when  The war in Afghanistan is the longest
the United States of America and its war in US history, having raged for 18
allies successfully drove the Taliban years and claimed the lives of around
from power in order to deny al- 2,300 troops.
Qaeda a safe base of operations in  From January 2009, when the United
Afghanistan who were the main Nations began systematic
suspects of the September 11 (9/11) documentation of civilian casualties, to
attacks. September, some 34,000 civilians have
 Since the initial objectives were been killed as a result of the armed
completed, a coalition of over 40 conflict.
countries (including all NATO  The U.S. has 12,000 to 13,000 troops
members) formed a security mission in Afghanistan, but in December the
in the country. The war has since Trump administration was poised to
mostly involved US and allied withdraw approximately 4,000 of
them.
90
0
91
Publish details of tainted candidates: SC to

parties
Syllabus subtopic: Salient Features of the  In 2004, 24% of members of
Representation of People’s Act. Parliament (MPs) had criminal cases
Prelims and Mains focus: about the SC pending against them. In 2009, that
directions and its significance; about went up to 30%, in 2014 to 34%, and
criminalization of politics in 2019 as many as 43% of MPs had
Context: Supreme Court in its judgement criminal cases pending against them.
handed down a series of directions aimed
at checking the criminalization of What was the case about?
politics. The court was passing orders on a
contempt petition that raised the issue of
Why? criminalization of politics claiming that
 The apex court noted that there has directions given by the court in a 2018
been an alarming increase in the order on disclosure of criminal
number of candidates with criminal antecedents by candidates are not being
records entering politics. followed.
92
Details of the SC judgement and politically crucial states, Bihar and
 The court ruled that it shall be Uttar Pradesh, go to polls over the next
mandatory for political parties two years.
during central and state elections to
put out detailed information about Conclusion
candidates with criminal cases  The order is a wake-up call for
pending against them, including the political parties as these decisions
nature of the offences. should have been taken by the parties
on their own without waiting for the
 Parties must also list the reasons for apex court to spell out the steps that
selecting such candidates and state political parties should be taking.
why others without criminal
antecedents were not selected.  It strengthens the electoral democratic
process by enabling voters to make a
 The reasons as to selection shall be choice keeping all factors in mind.
with reference to the qualifications,
achievements, and merit of the  Political parties have welcomed the
candidate concerned, and not mere step, but question if the Supreme Court
‘winnability’ at the polls. order infringes on the powers of the
elected representatives.
 The information should be published
in one local vernacular newspaper, a  The real problem is that Supreme
national newspaper, and on the Court has only ordered political
official social media platforms of the parties to give information on their
political party, including Facebook website, but does not say that the
and Twitter. direction is binding. Political parties
can still choose to nominate people
 These details are to be published with criminal cases against them.
within 48 hours of the selection of the
candidate.
 The political party concerned shall

then submit a report of compliance
with these directions with the
Election Commission within 72
hours of the selection of the said
candidate. If a political party fails to
submit such compliance report with
the Election Commission, the Election
Commission shall bring such non-
compliance by the political party
concerned to the notice of the
Supreme Court as being in contempt
of this SC’s orders.
Likely implications of these directions

The directions are likely to have a key
political fallout given that the two biggest
93
USTR takes India off developing country list

Syllabus subtopic: Effect of Policies and potentially subject to U.S.
Politics of Developed and Developing countervailing duties (CVD). The
Countries on India’s interests, Indian 1998 rule is now “obsolete” as per the
Diaspora. USTR notice.
Prelims and Mains focus: about the  U.S. President Donald Trump has
USTR move: criteria and its implications; repeatedly complained about the
about CVD and de minimis standard WTO’s classification of developing
countries. On July 26, 2019, he had
News: The U.S. government has changed issued a memorandum to the USTR
an administrative rule making it easier for titled, ‘Reforming Developing-
it to impose countervailing duties Country Status in the World Trade
(CVDs) on goods from India and certain Organization’. In it, Mr. Trump had
other countries. asked the USTR to, among other
things, “no longer treat as a developing
Background country for the purposes of the WTO
 To harmonise U.S. law with the World any WTO Member that in the USTR’s
Trade Organization’s (WTO) judgment is improperly declaring itself
Subsidies and Countervailing a developing country,” if the WTO had
Measures (SCM) Agreement, the not changed its approach to flexibilities
USTR had, in 1998, come up with lists associated with developing country
of countries classified as per their status within ninety days of the
level of development. These lists were memorandum being issued.
used to determine whether they were
94
What are countervailing duties (CVD)? is usually a subsidy of 1% or less ad
1. Duties that are imposed in order to valorem and 2 percent for special
counter the negative impact of cases. The de minimis thresholds and
import subsidies to protect domestic import volume allowance are more
producers are called countervailing relaxed for developing and least-
duties. developed countries.(Ad valorem tax
means levying of tax or customs duties
2. Description: In cases foreign proportionate to the estimated value of
producers attempt to subsidize the the goods or transaction concerned.)
goods being exported by them so that
it causes domestic production to suffer  If a country’s goods constitute less
because of a shift in domestic than 3% of all imports of that good
demand towards cheaper imported into the U.S., it meets the ‘negligible
goods, the government makes import volumes’ standard. For
mandatory the payment of a special cases it is 4%. Imports do not
countervailing duty on the import of meet the standard, if, individual
such goods to the domestic economy. volumes are less than 3% (special
cases: 4%) but the aggregate volume of
3. This raises the price of these goods imports into the U.S. is 7% of all such
leading to domestic goods again goods.
being equally competitive and
attractive. Thus, domestic businesses  India was, until February 10, on the
are cushioned. These duties can be developing country list and therefore
imposed under the specifications eligible for these more relaxed
given by the WTO (World Trade standards. It has now been taken off
Organization) after the investigation of that list.
finds that exporters are engaged in
dumping. These are also known as  The new lists consist of 36 developing
anti-dumping duties. countries and 44 least developed
countries.
About the USTR move
The Office of the United States Trade Eligibility Criteria for the de minimis
Representative (USTR) has published a standard
notice, amending lists of developing and The USTR used the following criteria to
least-developed countries that are eligible determine whether a country was eligible
for preferential treatment with respect for the 2% de minimis standard:
to CVD investigations. (1) Per capita Gross National Income or
GNI
What does that mean? (2) share of world trade
 Countries not given special (3) other factors such as Organisation for
consideration have lower levels of Economic Co-operation and
protection against a CVD Development (OECD) membership
investigation. or application for membership, EU
membership, and Group of Twenty
 A CVD investigation must be (G20) membership.
terminated if the offending subsidy is
de minimis (too small to warrant Why was India taken off the list?
concern) or if import volumes are  India, along with Brazil, Indonesia,
negligible. The de minimis standard Malaysia, Thailand and Vietnam were
95
taken off the list since they each have
at least a 0.5% share of the global
trade, despite having less than
$12,375 GNI (the World Bank
threshold separating high income
countries from others).
 India was taken off the list also

because — like Argentina, Brazil,
Indonesia and South Africa — it is
part of the G20. “Given the global
economic significance of the G20, and
the collective economic weight of its
membership (which accounts for large
shares of global economic output and
trade), G20 membership indicates that
a country is developed,” the USTR
notice said.
Implications
The move has cast a shadow on India
being able to restore preferential benefits
under the Generalised System of
Preference (GSP) as part of its trade talks
with the US, as only developing countries
are eligible for it.
Way forward
Mr. Trump is due to visit India on
February 24 and 25 and the U.S. and
India are trying to finalise a trade
package before the U.S. President’s
arrival. According to American officials,
the timing of the USTR announcement is
not linked to the visit, that is, the timing is
mostly coincidental and mostly related to
dynamics at the WTO on developing
country treatment.
96
Finance Commission to set up a new panel

Syllabus subtopic: Appointment to mechanism for funding of defence
various Constitutional Posts, Powers, and internal security ought to be set
Functions and Responsibilities of various up, and if so, how such a mechanism
Constitutional Bodies. could be operationalised.’
Prelims and Mains focus: about the new  This group will be chaired by FFC
panel to be set up and their mandate; about Chairman with A.N. Jha, Member,
FFC; CAG; FRBM act Fifteenth Finance Commission as well
as Secretary, Ministry of Home
News: The Fifteenth Finance Affairs, Secretary, Ministry of Defence
Commission (FFC) will soon set up a and Secretary (Expenditure), Ministry
panel to address issues related to fiscal of Finance as members.
policy for both the Centre and the
States, and present a road map for the Does India require a new legal
same. framework for fiscal consolidation?
According to the FFC, there wasn’t a need
About the new fiscal panel/committee for a new legal framework as the FRBM
 It will be a broad-based panel which already gives a robust legal framework,
will address some of the issues on except for the fact the States need to align
fiscal policy, particularly in relation to their own FRBM with the new FRBM
the debt and the deficit of the States enacted by the Union Government with
as well as the Central government. the amendments to the earlier one in 2018.
Also, there is a need to ensure there is
 The panel will be headed by FFC strict compliance on the issues of off-
Chairman and have representation Budget borrowing, contingent liabilities,
from the Comptroller and Auditor etc.
General of India, the Reserve Bank of
India, the Ministry of Finance, the
Fiscal Responsibility and Budget
Management (FRBM) panel and some
of the States.
 The principal terms of reference

(ToR) of the fiscal commitee will
enhance the ability of the Finance
Commission to address its ToR
relating to giving a consolidated fiscal
debt road map for the general
government.
Panel on Defence & Internal security

 The Commission had also constituted
a group on defence and internal
security, whose mandate will be ‘to
examine whether a separate
97
Central Administrative Tribunal

Syllabus subtopic: Appointment to  In pursuance of Article 323 A, the
various Constitutional Posts, Powers, Parliament has passed the
Functions and Responsibilities of various Administrative Tribunals Act in
Constitutional Bodies. 1985. The act authorises the Central
government to establish one Central
Prelims and Mains focus: about administrative tribunal and the state
Administrative tribunal: CAT and SATs; administrative tribunals. This act
composition and mandate opened a new chapter in the sphere of
providing speedy and inexpensive
News: A senior IPS officer of Andhra justice to the aggrieved public servants.
Pradesh cadre moved the Central
Administrative Tribunal in Hyderabad Central Administrative Tribunal (CAT)
challenging the suspension order issued by -- For Union services including All India
AP government. Services
The CAT exercises jurisdiction over all
Administrative Tribunals in India service matters concerning the following:
 The original Constitution did not 1. a member of any All-India Service
contain provisions with respect to 2. a person appointed to any civil service
tribunals. The 42nd Amendment Act of the Union or any civil post under the
of 1976 added a new Part XIV-A to union
the Constitution. This part is entitled as 3. a civilian appointed to any defence
‘Tribunals’ and consists of only two services or a post connected with
Articles: defence
1. Article 323 A dealing with However, the members of the defence
administrative tribunals, and forces, officers, staff of the Supreme Court
2. Article 323 B dealing with tribunals and the secretarial staff of the Parliament
for other matters. are not covered under the jurisdiction of
CAT.
 Article 323 A empowers the
Parliament to provide for the Benches: There are 17 Benches and 21
establishment of administrative Circuit Benches in the Central
tribunals for the adjudication of Administrative Tribunal all over India. In
disputes relating to recruitment and addition, the Central Administrative
conditions of service of persons Tribunal, Principal Bench is dealing with
appointed to public services of the the matters of Govt. of National Capital
Centre, the states, local bodies, public Territory of Delhi.
corporations and other public
authorities. State Administrative Tribunal (SAT) --
For states services including state PSC
 In other words, Article 323 A enables
the Parliament to take out the Following categories of employees are
adjudication of disputes relating to exempted from purview of
service matters from the civil courts Administrative tribunal:
and the high courts and place it before 1. Employees of SC & HC
the administrative tribunals. 2. Armed force professionals
3. Rajya Sabha & Lok Sabha members
98
Important points
 SC may grant a writ of certiorari if a
tribunal’s decision infringes an FR
 Chairman & members of CAT &

SAT are appointed by President after
consultation with CJ
 Chairman & Vice Chairman retire at

the age of 65 and other members retire
at the age of 62
 Chairman must be a HC judge

(Serving/Retired) or VC of tribunal
for atleast 2 years
 Members of administrative tribunals

can be Judges of HC & or from civil
services
Tribunal for other Services (323B)

For jurisdiction of disputes relating to
following matters
1. Taxation
2. Foreign exchange (export & import)
3. Land reforms
4. Industrial & labour disputes
5. Ceiling on urban property
6. Election to parliament or state
legislature
7. Rent & Tenancy Issues
8. Production, procurement &
distribution of food stuff
99
New Textiles Policy 2020

Syllabus subtopic: Government Policies announced in the Budget, soon. The
and Interventions for Development in govt. will spend Rs.1,000 crore in
various sectors and Issues arising out of developing raw materials for technical
their Design and Implementation. textiles; research associations will be
asked to produce applications for these.
Prelims and Mains focus: about the new
textile policy: key focus areas and Challenges ahead
challenges ahead  need for cost effectiveness is a major
challenge.
News: The Central Government is
expected to roll out a Textile Policy by the  One factor affecting cost effectiveness
middle of 2020. is lack of scale. New industries should
look at scale. The Textiles Ministry
Background plans to develop 10 mega textile
The existing National Textile Policy 2000 parks. Each one will be an
was framed about 13 years ago. Since integrated park. It is hoped to bring
then, the industry has undergone various some economies of scale with this.
changes on the domestic and international Any State which has minimum 1,000
front. The domestic textile industry has acres ready for the park will be
seen large-scale modernisation and supported to develop it.
technological up-gradation in the last
decade and faces new challenges.  Indian exporters are largely cotton
based. Therefore we should move to
About the new policy MMF (manmade fibre). If Indian
 It is aimed at developing in the country exports in MMF grow to the level of
a competitive textile sector which is cotton (i.e., the share of Indian cotton
modern, sustainable and inclusive. product exports in global trade) the
overall exports will increase by $20-25
 This new policy will have a special billion.
focus on manufacturing of apparel
and garment, technical textiles, man-
made fibre products and exports.
 It will envisage positioning India as a

fully integrated, globally-competitive
manufacturing and exporting hub.
 It will entail the strategy and action

plan for the country's textile and
apparel segments, while maintaining
pre-eminent position in handicraft
and handloom sectors.
 Technical textiles: The Cabinet is

expected to approve the National
Technical Textiles Mission,
100
Military Balance Report, 2020

Syllabus subtopic: Important International percent, but this only brought the
Institutions, agencies and fora - their continent's defence spending back to
Structure, Mandate. 2008 levels, before the global financial
crisis saw budgets slashed.
Prelims and Mains focus: about the key
findings of report and challenges ahead  The collapse last year of the Cold
War-era Intermediate-Range
News: The 2020 edition of the Military Nuclear Forces (INF) treaty and the
Balance Report was released by the doubts surrounding the renewal of the
International Institute for Strategic New START arms reduction treaty,
Studies (IISS). which expires in 2021, have
contributed to the mood of instability.
Key findings of the report
 Global spending on defence rose by  Russia, pursuing its own
four percent in 2019, the largest modernisation project, has already
growth in 10 years, led by big announced the entry into service of its
increases in the US and China. own hypersonic missile system.
Dubbed Avangard, the system has
 The rise was fuelled by growing been tested at speeds of Mach 27, or
rivalries between big powers, new roughly 33,000 kilometres (20,500
military technologies and rumbling miles) per hour.
conflicts from Ukraine to Libya.
 Elsewhere, spending in Asia is
 Beijing's military modernisation booming -- growing more than 50
programme -- which includes percent in a decade, rising from $275
developing new hard-to-detect billion in 2010 to $423bn in 2019 in
hypersonic missiles -- is alarming real terms as the continent's economic
Washington and helping drive US success has allowed countries to invest
defence spending. more in their militaries.
 The increase alone in US spending Today’s challenges

from 2018 to 2019 -- $53.4 billion --  In this environment of continuous,
was almost as big as Britain's entire evolving and even accelerating
defence budget. competition, the response options for
Western states might include
 Spending rose as economies recovered integrating increasingly novel
from the effects of the financial crisis, technologies or spending more to stay
but increases have also been driven by ahead. Alternatively, they could accept
sharpening threat perceptions. a levelling playing field as a new norm
and adapt their strategies instead. This
 Both the US and China increased relates not just to conventional
spending by 6.6 percent, to $684.6 military power but also to cyber
billion and $181.1 billion respectively. capability and the consistently
contested information environment.
 Europe -- driven by ongoing concerns
about Russia -- stepped up by 4.2
101
 A related challenge is that of
competitor states now using strategies
to achieve effect by operating below
the threshold of war. Examples
include Russia’s initial moves into
Crimea and its denials over
involvement in eastern Ukraine, its use
of chemical weapons in the UK and its
alleged election meddling. Iran’s
activities are another example. Its
ability to conduct warfare through
third parties has ‘given Iran a
strategic advantage over adversaries
reliant on conventional capabilities.
 Capabilities routed through third

parties, disinformation campaigns or
kinetic actions that are denied outright
are hard to tackle with conventional
military responses. They place a
premium not just on developing the
right military and intelligence
capabilities, but on boosting the
adaptability and resilience of
equipment and military forces and,
more broadly, of societies and political
decision-making. The same holds true
when dealing with developments in
new military or militarily-relevant
technologies.
 In all cases, working effectively with

partners and making use of relevant
international frameworks, have the
potential to act as a force multiplier.
However, while conflict still involves
hard military power, it is now more
diffused than before. It now involves a
greater number of actors and more
capabilities, some of which are not
traditionally ‘military’, and clear
outcomes in peace, war and the grey
space between are, accordingly, less
certain.
102
National Institute of Public Finance and Policy

(NIPFP)
Syllabus subtopic: Functions and borrowings. If the UT was part of
Responsibilities of the Union and the the Finance Commission, the
States, Issues and Challenges Pertaining to allocation would have been higher
the Federal Structure, Devolution of than the current allocation. In case
Powers and Finances up to Local Levels the region was part of the 14th Finance
and Challenges Therein. Commission Recommendations, the
exchequer would have been entitled to
Prelims and Mains focus: about the a sum of Rs.2,731 crore for 2019- 20.
highlights of the assessment report; about
NIPFP; about finance commission  Puducherry was eligible to get around
News: The Union Territory of Rs.1,186 crore extra during the
Puducherry was entitled to Rs.2,731 crore current financial year and also more
for the current fiscal from the Centre than than a meagre sum of Rs.1,703 crore
the actual allocation of Rs.1,545 crore, which was set aside for the region by
according to an assessment report the Centre for 2020-21.
prepared by the National Institute of
Public Finance and Policy (NIPFP), a  Disparity in allocation to
Central government organisation. Puducherry and New Delhi. While in
the case of the national capital, the
Background Centre incurred the expenditure for
The assessment was done against the salary to the police and pension
backdrop of Union Territories not amount, no such favour was done to
coming under the purview of the Puducherry.
Finance Commission recommendations
for devolution of funds Revenue shortfall in Puducherry
 Puducherry’s finances were expected
What did the assessment report say? to experience a revenue shock post-
 Central allocation to Puducherry is in July 2022 when the Centre stops
the form of grants to meet gap in compensating for GST loss.
resources and financing the schemes. Currently, the territory gets around
The Union Territory was eligible to Rs.150 crore as GST compensation
get larger share of the revenue. bi-monthly.
 Puducherry has a higher revenue  The transition to GST was

collection compared to the Gross State detrimental to Puducherry’s revenue
Domestic Product (GSDP). It was as the region was a manufacturing
higher than most States. It also runs a State. The addition of services under
small revenue deficit and a fiscal GST has failed to compensate for the
deficit of less than 3%. revenue loss.
 The debt to GSDP ration has been About NIPFP

around 3%. A considerable part of the  The National Institute of Public
deficit was met through open market Finance and Policy (NIPFP) is a centre
103
for research in public economics and
policies.
 Founded in 1976, the institute

undertakes research, policy
advocacy and capacity building in
areas related to public economics.
 One of the major mandates of the

institute is to assist the Central, State
and Local governments in
formulating and reforming public
policies by providing an analytical
base.
 The institute was set up as an

autonomous society, at the joint
initiative of the Ministry of Finance,
Planning Commission, several State
governments and distinguished
academicians. It is registered under
the Societies Registration Act, 1860.
 In its 44 years of existence, the

institute has emerged as a premier
think tank in India, and has made
significant contribution to policy
reforms at all levels of the
government. It has maintained close
functional links with the Central and
State governments all along, and has
built up linkages with other teaching
and research institutions both in India
and abroad.
 Although the institute receives an

annual grant from the Ministry of
Finance, Government of India, and
various State governments, it
maintains an independent non-
government character in its pursuit
of research and policy.
104
Virtual Classroom and Studio scheme of

Maharashtra
Syllabus subtopic: Welfare Schemes for urban pockets like Pune must be
Vulnerable Sections of the population by availed by children in rural areas
the Centre and States and the Performance like Latur.
of these Schemes
 The virtual classroom, with better
Prelims and Mains focus: about the guidance from experts, will ultimately
objective and the key features of the help in reducing students’ stress
scheme; E-Balbharti project prior to examinations.
News: Maharashtra’s Education Minister, About E-Balbharti project

on 14 Feb 2020, inaugurated the ambitious  The scheme is to be implemented
Virtual Classroom and Studio scheme. The under the E-Balbharti project of the
scheme will be implemented in 725 Maharashtra State Board of
schools across the State. Textbook Production and Curriculum
Research (Balbharti).
Key features of the scheme
 Objective: To enhance access and  The project is being implemented by
quality of education in Maharashtra’s the Valuable Group using its V-SAT
rural hinterland by using cutting-edge based interactive technology. Three
technology that connects students Studios have been set-up in the old
from schools in the State’s backwater building that hitherto housed the State
areas with a number of subject experts Institute of Educational Technology,
to answer queries and facilitate popularly known as Balchitravani, to
learning more effectively. establish contact with the schools.
 The State government has also come  In May 2017, Balchitravani, which was
up with audio books in multiple set up by the Maharashtra government
languages with chapters in the to bolster children’s education in the
syllabus read out by voice artistes to State and remained a fixture in Pune’s
help visually challenged students as educational fabric for more than three
part of this project. decades, shut shop after the erstwhile
Bharatiya Janata Party-led government
 195 schools had ‘logged in’ in the first claimed it lacked funds to support it.
phase of the scheme, while the The defunct institute has since been
remaining 530 schools would be absorbed by the Balbharati as part of
connected in stages. its e-learning arm.
 Experts from diverse fields —

besides regular subjects in the
curriculum — including sports,
industry and politics will be on hand to
impart lessons to children. The aim is
that the benefits being availed by
students in schools in developed
105
Remote Voting System

Syllabus subtopic:  The “two-way block chain remote
voting” process would involve voter
 Salient Features of the Representation identification and authorisation using a
of People’s Act. multi-layered IT enabled system
 Appointment to various Constitutional working on the EC’s e-Governance
Posts, Powers, Functions and award winning Electoral Registration
Responsibilities of various Officer Network (ERO Net) using
Constitutional Bodies. biometrics and web cameras.
Prelims and Mains focus: about the new  With the proposed linking of the
technology: its working and significance Aadhaar biometrics with voter IDs at
an “advanced stage”, the two-way
News: The Election Commission of India electronic voting system would be
has collaborated with IIT Madras to work possible only when the linking is
on a new technology for two-way remote complete.
voting in controlled environment using
blockchain technology How will the new system work?
 After a voter’s identity is established
What is it about? by the system, a block chain enabled
 The model of an Aadhaar-linked personalised e-ballot paper (Smart
electronic voting system that would Contract) will be generated.
enable electors to cast their votes
from any part of the country —  When the vote is cast (Smart
irrespective of where they are Contract executed), the ballot would
registered to vote — or even abroad. be securely encrypted and a block
chain hashtag (#) will be generated.
 It will allow electors to vote from far This hashtag notification would be sent
away cities without going to the to various stakeholders, in this case—
designated polling station of their the candidates and political parties.
respective constituencies. For example
the system would allow a Delhi-  The encrypted remote votes so cast
registered elector who happens to be in would once again be validated at the
Hyderabad to cast his or her vote in pre-counting stage to ensure that they
elections in the Capital electronically. have neither been decrypted, nor
tampered with or replaced.
 The voters will have to reach a
designated venue during a pre-decided  The project is at present in the research
period of time to be able to use this and development stage with an aim to
facility. develop a prototype.
 It does not mean voting from home, What next?

which is “anytime-anywhere-any If the project is given the go-ahead by the
device” and would require some more ECI, changes to the election laws would
time and technological advancement. be required for which the Law Ministry
would be approached.
106
Efforts made to increase voter turnout
 There have been demands from various
parties that the Election Commission
should ensure that migrant workers
who miss out on voting as they
cannot afford going home during
elections to exercise their franchise
should be allowed to vote for their
constituency from the city they are
working in.
 A Bill to allow proxy voting for

overseas Indians had lapsed
following the dissolution of the
previous Lok Sabha.
 The Law Ministry had also recently

tweaked election rules to allow One
Way Electronically Transmitted
Postal Ballot System (ETPBS),
enabling service voters consisting of
personnel belonging to the armed
forces, central paramilitary forces and
central government officers deployed
at Indian missions abroad, to get their
postal ballots electronically. They have
to fill up the ballot papers and post
them back.
 The ECI had used a one-way

electronic system for service electors
for the first time in the 2019 Lok
Sabha elections. The postal ballots
were transmitted electronically to the
service electors, which led to an
increased turnout or 60.14%.
107
5th India Russia military industry conference

Syllabus subtopic: Bilateral, Regional and the provision of IGA was also handed
Global Groupings and Agreements over by the Navy to the identified
involving India and/or affecting India’s Indian industry.
interests.
 One MoU was signed between the
Prelims and Mains focus: about the Spetz-Radio Corporation of Russia and
event: MoUs signed and their significance; the Ananth Technologies based in
about India-Russia ties Hyderabad for the “development,
production and manufacture of
News: In a step forward towards small spacecraft for remote sensing”.
addressing the issue of regular spares
and support for Russian military  One important MoU was signed
equipment with the armed forces, 14 between the Bharat Dynamics Limited
MoUs were signed between Indian and (BDL) and the Almaz Antey of Russia
Russian companies for setting up joint for exploring the feasibility of
ventures covering a range of equipment establishing a joint venture in India for
from modern T-90 tanks to legacy the production of various sub
Pechora air defence systems. systems of “air defence missile
systems like Tunguska, Kavadrat,
About the event the OSA-AKA, Pechora air defence
The MoUs were signed during the 5th system as well as the Shilka self-
India Russia military industry propelled air defence gun system”.
conference held during the Defexpo 2020 The MoU also covered refurbishment
in Lucknow. and life extension of the missiles. Most
of these air defence systems are now in
Background the process of being phased out and
Lack of timely spares and support has replaced with new ones.
been a constant issue faced by the military
a major part of which consists of Russian Way forward
defence hardware. Several such support India has taken a number of steps to
agreements are in the pipeline and expedite the collaboration with Russian
expected to be concluded soon. companies. India has called for expeditious
implementation from the Russian side as
About the MoUs signed well which has some procedural issues to
 They come under the sort out. There are also agreements on
Intergovernmental Agreement (IGA) emerging technologies — Artificial
on joint manufacturing of spares in Intelligence, Internet of Things, blockchain
India signed last September for mutual and robotics based on Russian
cooperation in manufacturing of technologies under the proposed Indo-
spares, components, aggregates and Russian Joint Venture ICT Center of
other material related to Russian or Excellence.
Soviet-origin arms and defence
equipment. Arms imports by India
 Arms imports by India increased by
 The first ‘Request for Proposal’ for 24% between 2008-2012 and 2013-
manufacturing of parts in India under 2017.
108
 India is followed by Saudi Arabia,  The largest arms suppliers to India
Egypt, UAE, China, Australia, Algeria, from 2013-2017 were Russia (62%),
Iraq, Pakistan and Indonesia. US (15%) and Israel (11%).
109
National Health Mission (NHM)

Syllabus subtopic: Issues Relating to 1. Staff crunch
Development and Management of Social 2. low community referrals,
Sector/Services relating to Health, 3. absence of a special neonatal transport
Education, Human Resources. service to health centres
4. reliance on units in cities as last resort
Prelims and Mains focus: about the and
NHM: aim and significance; about 5. the non-availability of enough units to
neonatal deaths in India and its causes cater to increasing institutional
deliveries
News: Madhya Pradesh has recorded
the highest percentage of newborn Neonatal deaths in India
deaths of 11.5% against the total  According to the Sample Registration
admissions to government-run sick System, neonatal deaths in India
newborn care units (SNCUs) in the past mainly occur owing to:
three years across the country, a rate 1. premature births and low birth weight
ominously spiralling since 2017, according (35.9%),
to the National Health Mission (NHM). 2. pneumonia (16.9%),
The country’s average is 7%. 3. birth asphyxia and birth trauma (9.9%),
4. other non-communicable diseases
 Although admissions of neonates (7.9%),
(under 28 days) in the State have 5. diarrhoea (6.7%),
dropped from April 2017 to December 6. congenital anomalies(4.6%) and
2019 — remaining lower than West 7. infections (4.2%).
Bengal, Rajasthan and Uttar Pradesh
— the percentage of deaths at 12.2%  Under the United Nations’
surpassed Bihar’s last year. Sustainable Development Goals,
each country, including India, has
 Meanwhile, West Bengal, where aimed to bring down neonatal
34,344 neonatal deaths occurred in the mortality to at least 12 per 1,000 live
period, the most in the country, the births. In 2018, it stood at 23 for India.
declining percentage of deaths from
9.2% in 2017 to 8.9% in 2019 About National Health Mission
coincided with a slump in admissions.
The National Health Mission (NHM) was
 Madhya Pradesh has also recorded designed with the aim of providing
an abysmal sex ratio in admissions accessible, affordable, effective and
— of 663 (number of girls admitted reliable healthcare facilities in the rural
against 1,000 boys) in the three years and urban areas of the country, especially
against the country average of 733, to the poor and vulnerable sections of the
though its sex ratio was 931 as per the population.
2011 census. NHM envisages a bottom-up,
decentralized and community owned
Factors responsible for the spike in the approach to public health planning.
percentage of deaths
110
111
Ladakh to appoint non –gazetted personnel

Syllabus subtopic: Functions and Lieutenant-Governor “shall exercise
responsibilities of the Union and the the power to make rules in regard
States, issues and challenges pertaining to to...the method of recruitment to all
the Federal Structure, Devolution of Group ‘B’ (non-gazetted) and Group
Powers and Finances up to Local Levels ‘C’ posts under his administrative
and challenges therein. control”.
Prelims and Mains focus: about the move  The notification further said the
and its significance; about bifurcation of Lieutenant-Governor could decide
J&K and its implications on:
News: Union government has empowered 1. the qualifications necessary for

the Union Territory of Ladakh to appointment to such services and
formulate its own rules to appoint “non- posts; and
gazetted” officials. 2. the conditions of service of persons
appointed to such services and posts
Why? for the purposes of probation,
Shortage of personnel: the day-to-day confirmation, seniority and promotion.
work in Ladakh was getting hampered
as the process to reallocate government Govt. personnel in Ladakh
officials had not been completed, and not  There are about four lakh State
many officials were willing to move to the government employees and 66 Indian
Union Territory. Administrative Service (IAS) and 68
Indian Police Service (IPS) officers
Background in the erstwhile State.
 The erstwhile State of Jammu and
Kashmir was bifurcated into the  Under the Jammu and Kashmir
Union Territories of Jammu and Reorganisation Act, 2019, the IAS, the
Kashmir and Ladakh by Parliament on IPS and other central service officers
August 6, 2019. will continue to work in the Union
Territories, while new recruits will
 Thereafter, the Union government be allocated the Arunachal Pradesh-
appointed a panel to find out Goa-Mizoram and Union Territory
officials’ preference for posting. The (AGMUT) cadre.
General Administration Department of
Jammu and Kashmir issued an order in Measures taken by the Centre
2019 seeking options from government  In the Union Budget unveiled on
officials “for their further allocation” February 1, a total of Rs. 30,757 crore
to the two Union Territories. The was allocated to Jammu and Kashmir
employees had to fill a form, and Rs.5,958 crore for Ladakh for the
comprising 18 columns, which sought fiscal 2020-21.
information on their “place of birth,
home district, marital status and caste”.  Earlier, based on the 14th Finance
Commission grants, a total of
 To tide over the crisis, the Centre on Rs.14,559.25 crore was pending to be
January 21, 2020 said Ladakh’s distributed to the two Union
112
Territories. In December, Rs.2,977.31
crore was transferred to Jammu and
Kashmir and Rs.1,275.99 crore to
Ladakh.
 This was the first time around 8%

Central funds were transferred to
Ladakh. Previously, the region
received only 2%. The area is
underdeveloped and needs greater help
from the Centre.
 A new administrative complex was

being built in Leh. It would also house
the office of the Hill Development
Council.
113
Delimitation Commission of India

Syllabus subtopic: Statutory, Regulatory country or a province having a
and various Quasi-judicial Bodies. legislative body.
Prelims and Mains focus: about the move  The job of delimitation is assigned to
and its significance; about Delimitation a high power body. Such a body is
Commission of India: composition and known as Delimitation Commission
mandate or a Boundary Commission.
News: About six months after the State of About Delimitation Commission of
Jammu and Kashmir was split into the India
Union Territories of J&K and Ladakh,  The Delimitation Commission in India
the government moved to start the is a high power body whose orders
delimitation of Assembly constituencies have the force of law and cannot be
in J&K. called in question before any court.
Background  These orders come into force on a date

The Election Commission had held a to be specified by the President of
meeting in August 2019 to discuss the India in this behalf. The copies of its
delimitation process and enrolled two orders are laid before the House of
officials who had worked on previous the People and the State Legislative
delimitation exercises. Assembly concerned, but no
modifications are permissible
J&K Reorganisation Act therein by them.
 As per the Jammu and Kashmir
Reorganisation Act, 2019, which was  In India, such Delimitation
passed by Parliament on August 5, Commissions have been constituted 4
2019 and came into effect on October times – in 1952 under the Delimitation
31, the Union Territory of J&K will Commission Act, 1952, in 1963 under
have an Assembly, while Ladakh Delimitation Commission Act, 1962,
will not. in 1973 under Delimitation Act, 1972
and in 2002 under Delimitation Act,
 The Act further said the number of 2002.
seats in the Assembly of J&K would
be increased from 107 to 114 after  According to the Delimitation
delimitation, on the basis of the 2011 Commission Act, 2002, the
Census. Delimitation Commission appointed
by the Centre has to have three
 The Election Commission was ready to members:
provide secretarial assistance to the 1. a serving or retired judge of the
Delimitation Commission once Supreme Court as the chairperson,
appointed, as it is required to do. and
2. the Chief Election Commissioner or
What is meant by delimitation? Election Commissioner nominated by
 Delimitation literally means the act or the CEC, and
process of fixing limits or boundaries 3. the State Election Commissioner as ex-
of territorial constituencies in a officio members.
114
Supreme Court Collegium System

Syllabus subtopic: Structure, organization the appointments process transparent
and functioning of the Executive and the and participatory, only to be scrapped
Judiciary, Ministries and Departments of by the Supreme Court.
the Government.
What next?
Prelims and Mains focus: about the issue The apex court ordered the Registrar
and its implications; about collegiums Generals of all the High Courts to submit
system: merits and criticisms reports of the pending judicial vacancies
and likely ones in the future within four
News: The Supreme Court asked the weeks.
government why it was “holding back”
recommendations for appointments to How did the Collegium system come
various High Courts even after into being?
reiteration by the Collegium.  The Collegium of judges is the
Supreme Court’s invention. It does
Background not figure in the Constitution, which
The Bench was conveying its alarm at the says judges of the Supreme Court and
rising number of vacancies in various High Courts are appointed by the
High Courts. Some of these courts are President and speaks of a process of
functioning only with half their sanctioned consultation. In effect, it is a system
judicial strength. On an average, they under which judges are appointed
suffer at least 40% vacancies. by an institution comprising judges.
Government’s view on delay of  After some judges were superseded in

appointments the appointment of the Chief Justice of
 The collegium delays the appointment India in the 1970s, and attempts made
process quite as the government. The subsequently to effect a mass transfer
government’s delay is largely because of High Court judges across the
it thoroughly combs the antecedents of country, there was a perception that the
the candidate, leaving no room for independence of the judiciary was
error. The process, on an average, under threat. This resulted in a series of
takes at least 127 days. cases over the years.
 On the other hand, the judiciary takes  The ‘First Judges Case’ (1981) ruled
119 days on an average merely to that the “consultation” with the CJI
forward the file to the government. in the matter of appointments must
Some courts like Allahabad and be full and effective. However, it
Andhra take over 45 and 50 months to rejected the idea that the CJI’s
even report a vacancy. The opinion, albeit carrying great
appointment of Justice P.V. weight, should have primacy.
Kunhikrishnan of the Kerala High
Court took two years to come through.  The Second Judges Case (1993)
introduced the Collegium system,
 The Collegium system was put to an holding that “consultation” really
end through the National Judicial meant “concurrence”. It added that it
Appointments Commission to make was not the CJI’s individual opinion,
115
but an institutional opinion formed in respective States. The Collegium
consultation with the two senior- takes the call on the elevation.
most judges in the Supreme Court.
 High Court judges are
 On a Presidential Reference for its recommended by a Collegium
opinion, the Supreme Court, in the comprising the CJI and two senior-
Third Judges Case (1998) expanded most judges. The proposal, however,
the Collegium to a five-member is initiated by the Chief Justice of the
body, comprising the CJI and four of High Court concerned in
his senior-most colleagues. consultation with two senior-most
colleagues. The recommendation is
What is the procedure followed by the sent to the Chief Minister, who
Collegium? advises the Governor to send the
 The President of India appoints the proposal to the Union Law Minister.
CJI and the other SC judges. As far
as the CJI is concerned, the outgoing Does the Collegium recommend
CJI recommends his successor. transfers too?
 Yes, the Collegium also recommends
 In practice, it has been strictly by the transfer of Chief Justices and
seniority ever since the supersession other judges.
controversy of the 1970s.
 Article 222 of the Constitution
 The Union Law Minister forwards provides for the transfer of a judge
the recommendation to the Prime from one High Court to another.
Minister who, in turn, advises the
President.  When a CJ is transferred, a
replacement must also be
 For other judges of the top court, the simultaneously found for the High
proposal is initiated by the CJI. The Court concerned. There can be an
CJI consults the rest of the acting CJ in a High Court for not
Collegium members, as well as the more than a month.
senior-most judge of the court
hailing from the High Court to  In matters of transfers, the opinion of
which the recommended person the CJI “is determinative”, and the
belongs. consent of the judge concerned is not
required. However, the CJI should
 The consultees must record their take into account the views of the CJ of
opinions in writing and it should form the High Court concerned and the
part of the file. The Collegium sends views of one or more SC judges who
the recommendation to the Law are in a position to do so. All transfers
Minister, who forwards it to the must be made in the public interest,
Prime Minister to advise the that is, “for the betterment of the
President. administration of justice”.
 The Chief Justice of High Courts is What is the common criticism made
appointed as per the policy of having against the Collegium system?
Chief Justices from outside the  Many have faulted the system, not only
for its being seen as something
116
unforeseen by the Constitution makers, procedure, to infuse greater
but also for the way it functions. accountability, is also unclear.
Opaqueness and a lack of
transparency, and the scope for
nepotism are cited often.
 Retired SC judge Justice Ruma Pal

once said: “The mystique of the
process, the small base from which the
selections were made and the secrecy
and confidentiality ensured that the
process may on occasions, make wrong
appointments and, worse still, lend
itself to nepotism.”
 The attempt made to replace it by a

‘National Judicial Appointments
Commission’ was struck down by
the court in 2015 on the ground that
it posed a threat to the independence
of the judiciary. Dissenting judge,
Justice J. Chelameswar, termed it
“inherently illegal”.
 Even the majority opinions admitted

the need for transparency. In an effort
to boost transparency, the
Collegium’s resolutions are now
posted online, but reasons are not
given.
 Some do not believe in full disclosure

of reasons for transfers, as it may make
lawyers in the destination court chary
of the transferred judge. Embroilment
in public controversies and having
relatives practising in the same High
Court could be common reasons for
transfers.
 In respect of appointments, there has

been an acknowledgement that the
“zone of consideration” must be
expanded to avoid criticism that
many appointees hail from families
of retired judges. The status of a
proposed new memorandum of
117
SUTRA PIC initiative

Syllabus subtopic: Government Policies Prime Products from Indigenous
and Interventions for Development in Cows, has five themes:
various sectors and Issues arising out of 1. Uniqueness of Indigenous Cows,
their Design and Implementation. 2. Prime-products from Indigenous Cows
for Medicine and Health,
Prelims and Mains focus: about the 3. Prime-products from Indigenous Cows
initiative: objective s and significance; for Agricultural Applications,
about SVAROP inititative; about SEED: 4. Prime-products from Indigenous Cows
objectives and mandate for Food and Nutrition,
5. Prime-products from indigenous cows-
News: The government has unveiled a based utility items
programme to research on ‘indigenous’
cows.  To be funded by multiple scientific
ministries, the initiative, SUTRA
Background PIC, is led by Science for Equity,
 The Finance Minister had announced Empowerment and Development
research programmes into (SEED) division of the Department of
indigenous cattle in the 2016-17 as Science and Technology (DST).
well as in the 2019-20 Union Budget.
The stated objective was to develop  It has the Department of
products as well as improve the Biotechnology, the Council of
genetic quality of indigenous cattle Scientific and Industrial Research
breeds. (CSIR), the Ministry for AYUSH
(Ayurveda, Unani, Siddha,
 A 2019 article in the Journal of Animal Homoeopathy) among others and the
Research said India had 190.9 million Indian Council of Medical Research
cattle and 43 registered native cattle (ICMR) as partners.
breeds. The exotic / crossbred
population has been increased by  Researchers from academic
20.18% during the period of last organisations as well as “capable
census while population of indigenous voluntary organisations (NGOs) active
cattle has been decreased by 8.94% in India with proven record of
during the same duration. accomplishment in executing S&T-
based R&D projects,” were invited to
 The reasons for depletion of native apply for funding.
breeds includes
1. cross-breeding with exotic breeds, Objectives of the programme:
2. economically less viable,  to perform scientific research on
3. losing utility, complete characterisation of milk
4. reduction in herd size and and milk products derived from
5. the large-scale mechanisation of Indian indigenous cows;
agricultural operation.
 scientific research on nutritional and
About the initiative therapeutic properties of curd and
 SUTRA PIC or Scientific Utilisation ghee prepared from indigenous breeds
Through Research Augmentation- of cows by traditional methods;
118
 development of standards for Objectives & Mandate
traditionally processed dairy  To support S&T based NGOs/S & T
products of Indian-origin cow. institutions/Colleges/Universities
throughout the country to take up
Indigenous cow breeds: Gir, Red Sindhi, innovative grant in aid projects at the
Sahiwal, Deoni, Rathi grassroots level with various schemes
targeted for different section of the
About SVAROP initiative society to address location and
 In 2017, SEED constituted a occupation specific problems.
National Steering Committee (NSC)  Catalyze and support research,
for ‘Scientific Validation and development and adaptation of relevant
Research on Panchgavya and appropriate technologies for
(SVAROP)’. empowering and improving quality of
life of Artisans, Landless labour,
 Panchagavya is an Ayurvedic Women, SC/ST and other
panacea and is a mixture of five disadvantaged sections, particularly in
(pancha) products of the cow (gavya) rural areas.
— milk, curd, ghee, dung and urine.  Preserve and upgrade skills of
Its proponents believe it can cure, or traditional artisans as “natural carriers”
treat a wide range of ailments. of S&T knowledge/ capabilities and
enable their transition to S&T – based
About SEED production organizations.
 Science for Equity, Empowerment and  Need-based, location specific and
Development (SEED) Division has appropriate S&T intervention for
been set up under the Department of economically viable, ecologically
Science and Technology, established sustainable and socially acceptable
with the broad objectives of development
providing opportunities to motivated  “Bottom-up” rather than top-down
scientists and field level workers to programme planning with full
take up action oriented and location community involvement.
specific projects aiming towards  Evolve and demonstrate replicable
socio-economic upliftment of poor models of S&T – based development
and disadvantaged sections of the for benefit of disadvantaged sections;
society through appropriate and
technological interventions  Catalyze linkages with Developmental
especially in the rural areas. Agencies/ Departments and Financial
Institutions so as to promote
 Under this Division efforts have been integration of these models with wider
made to associate concerned National developmental processes.
Labs or other specialist S&T
institutions with each major
program so as to build-in expert input,
utilize national S&T infrastructure and
link it up with grassroots S&T
interventions/initiatives.
119
Women Army officers eligible for permanent

commission
Syllabus subtopic:
 Issues Relating to Development and  The note had shown women officers
Management of Social Sector/Services in a poor light, saying isolation and
relating to Health, Education, Human hardships would eat into their resolve
Resources. and that they would have to heed to
the call of pregnancy, childbirth and
 Various Security Forces and Agencies family. The note had mentioned that
and their Mandate. women ran the risk of capture by
enemy and taken prisoner of war.
Prelims and Mains focus: about the SC  The SC bench countered that 30% of
judgement and its significance women officers were deputed in
conflict zones and the note screamed of
News: The Supreme Court dismissed the the age-old patriarchal notion that
Union government’s submissions that domestic obligations rested only with
women are physiologically weaker than women.
men as a “sex stereotype” and declared
that Short Service Commission (SSC)  The court found the remarks in the
women officers are eligible for note not only constitutionally invalid
permanent commission and command but discriminatory, affecting the
posts in the Army irrespective of their dignity of women officers.
years of service.
 The court dismissed the
Background government's stand that only women
officers with less than 14 years of
The verdict came on a nearly 10-year-old service ought to be considered for
appeal filed by the government against a permanent commission, and those
March 12, 2010 decision of the Delhi with over 20 years service should be
High Court to grant SSC women pensioned immediately. Applying the
officers permanent commission. judgment retrospectively, the court
declared that all serving women
officers would be eligible for
About the SC order permanent commission.
 The order castigated the government
for submitting a note containing  The Supreme Court ordered the
written submissions portraying government to implement its judgment
women as physiologically unfit for in three months.
answering the “call beyond duty” of
the Army.
120
Command posts for women prohibition of women SSC officers

 SSC for women is available only to obtain anything but staff
in ‘Combat Support Arms’ and appointments does not fulfil the
‘Services’ wings of the Army. purpose of granting permanent
commissions as a means of career
 The exclusion of women from advancement in the Army.
combat operations was not
examined by the court as it was not  The court held that since
the contested in the appeal. command appointments were not
automatic for men officers, so
 The court held that a blanket ban would it be for women. It was left
of women SSC officers from to the Army to take a call on a
command posts cannot be case to case basis.
sustained by law. An absolute
121
Nadu-Nedu programme
Syllabus subtopic: Welfare Schemes for furnished medical equipment and
Vulnerable Sections of the population by furniture.
the Centre and States and the Performance
of these Schemes 6. In the second phase, of the total 1,145
Primary Health Centres (PHCs), 149
Prelims and Mains focus: about the key new ones would be constructed and the
features of the scheme rest 989 would be repaired and given
modern amenities. Apart from that 169
News: Andhra Pradesh Chief Minister Community Health Centres (CHC)
has launched the first phase of the Nadu and Area Hospitals would also be
Nedu programme. strengthened. For CHCs the
government has allocated Rs.1,212
About the programme crores and Rs.700 crore to Area
1. Under the Nadu-Nedu Scheme Hospitals.
(roughly meaning Then and Now in
Telugu), the government of A.P plans 7. In the third phase, District Hospitals,
to take up construction, repairs and along with teaching hospitals would be
renovation of hospitals at a cost of strengthened. Moreover, construction
Rs.11,737 crore in a span of three of new hospitals will also take place.
years. Since independence, there are only 11
teaching hospitals in the State. The
2. The Indian Public Health Standards government is adding 16 more
(IPHS) would be followed for the sub- teaching hospitals, bringing the total to
centres, Primary Health Centres 27.
(PHCs), Community Health Centres
(CHCs), Area Hospitals (AHs), According to the A.P govt., it is the
District Hospitals (DHs) and Medical highest amount spent by any State on
Council of India (MCI) norms for healthcare in the country. Under the
teaching hospitals. scheme, every Parliamentary
constituency would have a teaching
3. As part of the first phase, Rs.1,129 hospital.
crore has been allocated for the health
and wellness centres (sub-centres).
4. A pictorial contrast of the hospitals

before and after the implementation
of Nadu-Nedu would be displayed on
their premises to highlight the
difference.
5. The auxiliary Nurse Midwifery

(ANM) staff quarters will be provided
with single bedroom, kitchen and
toilet, a clinic with lab and
examination room with toilet and fully
122
Study on Online abuse

Syllabus subtopic: Role of NGOs, SHGs,  There was also a lack of awareness
various groups and associations, donors, among the students on the Internet
charities, institutional and other safety guidelines developed by the
stakeholders. NCERT with only 30% respondents
being familiar with them. Nearly 48%
Prelims and Mains focus: about the of students were found to be either
survey and its findings: limitations and mildly or moderately addicted to the
recommendations Internet, while 1% were found to be
severely addicted. For this exercise, the
News: In an attempt to assess the pattern students were made to take an Internet
of Internet use and online safety, an Addiction Test.
NGO — Child Rights and You (CRY)
— conducted a survey in collaboration Is internet accessibility really harmful?
with Forum for Learning and Action  Access to the Internet is not all harmful
with Innovation and Rigour (FLAIR). as 40% of the respondents said they
used it to take help in their studies
About the survey such as through online search for
It was conducted among 630 adolescents words or information, tutorials and
aged between 13-18 years from eight access to their school’s online
schools in Delhi-NCR. The study education programme.
involved students filling up a test form and  The same ratio of children also used
answering a questionnaire. the Internet for extra-curricular
activities such as for music, painting
Key findings of the study or sports. As many as 50% of students
 One in every three adolescents used the Internet for both studies as
exposed to the Internet are victims of well as extra-curricular activities.
cyberbullying and other forms of
online abuse and nearly half of the Limitation of the study
users display some level of addiction. One of the limitations of the study is that
 Adolescents had easy access to the it was not able to record instances of
Internet with 93% of them using it in sexual abuse in cyberspace as it was
their homes. There was a clear gender conducted in a controlled environment.
disparity in access to personal
devices with 60% boys and 40% girls Recommendations made in the study
owning a device.  The study recommends familiarity
 Thirty percent of adolescents had a with Internet safety rules and the
negative experience online. When skill to use them for reporting to be
broken down across different built into the school curriculum as well
categories of abuse, it is found that as the need to modify the Central
10% of adolescents experienced government’s child protection
cyberbullying, 10% had either their scheme to build infrastructure to deal
profile misused or account hacked and with cybercrimes against children.
23% had seen a morphed image or  It also presses for schools to recognise
video online. Only half of these an increase in online crimes against
instances were reported by the children and develop strategies on
teenagers. prevention, reporting and redressal.
123
Tax haven
Syllabus subtopic: Effect of Policies and individuals and businesses to benefit
Politics of Developed and Developing from their tax policies.
Countries on India’s interests, Indian
Diaspora.  Offshore tax havens benefit from the
capital their countries draw into the
Prelims and Mains focus: about the move economy. Funds can flow in from
and its implications; about tax haven and individuals and businesses with
its characteristics accounts setup at banks, financial
institutions, and other investment
News: European Union finance ministers vehicles. Individuals and corporations
added Panama, the Seychelles, the can potentially benefit from low or no
Cayman Islands and Palau to the EU’s taxes charged on income in foreign
blacklist of tax havens, while giving countries where loopholes, credits, or
Turkey more time to avoid being listed. other special tax considerations may be
allowed.
Background
 The list, which was set up in 2017  A list of some of the most popular
after revelations of widespread tax tax haven countries includes:
evasion and avoidance schemes, now Andorra, the Bahamas, Belize,
includes 12 jurisdictions. Bermuda, the British Virgin Islands,
the Cayman Islands, the Channel
 The other listed jurisdictions are Fiji, Islands, the Cook Islands, The Island
Oman, Samoa, Trinidad and Tobago, of Jersey, Hong Kong, The Isle of
Vanuatu and the three U.S. territories Man, Mauritius, Lichtenstein, Monaco,
of American Samoa, Guam, and the Panama, St. Kitts, and Nevis.
U.S. Virgin Islands.
 Worldwide there is not a
What are the implications? comprehensively defined standard
Those on the blacklist face reputational for the classification of a tax haven
damages, higher scrutiny in their country. However, there are several
financial transactions and risk losing EU regulatory bodies that monitor tax
funds. haven countries, including the
Organization of Economic
What Is a Tax Haven? Cooperation and Development
 A tax haven is generally an offshore (OECD) and the U.S. Government
country that offers foreign Accountability Office.
individuals and businesses little or
no tax liability in a politically and  Characteristics of tax haven
economically static environment. countries generally include:
1. no or low income taxes,
 Tax havens also share limited or no 2. minimal reporting of information,
financial information with foreign tax 3. lack of transparency obligations,
authorities. 4. lack of local presence
requirements, and
 Tax havens do not typically require 5. marketing of tax haven vehicles.
residency or business presence for
124
EC holds meeting on electoral reforms

Syllabus subtopic: Salient Features of the
Representation of People’s Act.  Earlier, in a letter to the Law Ministry,
the Commission had recently proposed
Prelims and Mains focus: About the that provisions of the Representation of
meeting and the issues discussed; electoral the People Act be amended to allow
reforms EC seek Aadhaar numbers of those
applying to be voters and those who
News: In a fresh bid to push the electoral are already part of the electoral rolls.
reforms pending with the Centre, the Accepting the proposal to give it legal
Election Commission (EC) met the backing to collect Aadhaar data, the
Legislative Department of Ministry of Law Ministry is learnt to have asked
Law and Justice officials. the poll panel to ensure that the data
is protected at multiple levels. The
Background EC recently listed out steps to protect
As many as over 40 recommendations for the data from possible leaks.
electoral reforms are pending with the
Centre.
About the meeting

The pending issues discussed, including
were
1. linking voter ID with Aadhaar,
2. allowing multiple registration windows
to a new voter and
3. ensuring gender neutral rights for
‘service voter’,
4. paid news and false affidavit as
electoral offence/corrupt practice;
5. print media and social media
intermediaries to be covered under
Section 126 of the RP Act 1951.
Issue of linking Aadhaar with Voter ID

 Linking voter ID with Aadhaar will
help weed out duplications and
misrepresentations from the
electoral rolls.
 Aadhaar linkage and voter

authentication are also considered
critical to the commission’s plans to
work towards electronic, internet-
based voting and for giving ‘remote’
voting rights to domestic migrant
workers.
125
Trump’s visit may seal helicopter deal

Syllabus subtopic: Bilateral, Regional and Foreign Military Sales route of the U.S.
Global Groupings and Agreements government.
involving India and/or affecting India’s
interests. Significance of the deal
 The Navy is facing an acute shortage
Prelims and Mains focus: about the of MRH, with several warships
helicopter deal and its significance; about operating with empty helicopter
other deals on the anvil; India-US trade decks. These helicopters are being
dispute procured as replacement for 15 Sea
King Anti-Submarine Warfare
News: The deal for 24 MH-60R Multi- helicopters de-inducted in 1991 and
Role Helicopters (MRH) for the Navy, one Sea King 42B MRH lost in
which is likely to be announced during accident. The MRHs in service, Sea
the visit of U.S. President Donald Trump, King 42Bs, were inducted in the 1980s
is lined up for the final approval of the and are in need of replacement.
Cabinet Committee on Security (CCS).
 Given the urgency, the U.S. is likely to
About the deal take some MH-60R helicopters from
All procedural requirements for the deal its newest aircraft carrier, USS Gerald
have been completed. The 24 Lockheed Ford, which is undergoing upgrades.
Martin-built helicopters, worth $2.4
billion, are being procured through the
126
Trade deal unlikely
Mr. Trump will visit India on February
24 and 25. With no headway in the talks
for a trade deal, there are expectations that
a few big-ticket defence deals will be
announced.
Other deals in the pipeline

 There are several big-ticket deals in the
pipeline. These include six Boeing P-
8I long-range surveillance aircraft
and 13 BAE Systems-built 127-mm
MK-45 naval gun systems worth
around $1 billion for the Navy, six
AH-64E Apache attack helicopters
for the Army, 30 armed drones for the
three services and a tactical air
defence system for Delhi. However,
these are at various stages of
procurement.
 Apart from the deal for MH-60R

helicopters, an announcement is
possible on P-8I and Apache.
127
Assisted Reproductive Technology Regulation

Bill, 2020
Syllabus subtopic: Government Policies months of the notification of the
and Interventions for Development in proposed legislation.
their Design and Implementation.  Under the proposed law, a national
registry and registration authority
Prelims and Mains focus: about the key will maintain a database to assist the
features of the bill and its significance national Board to perform its
functions.
News: The Union Cabinet chaired by the
Prime Minister approved the Assisted  The Bill also proposes stringent
Reproductive Technology Regulation Bill, punishment for those who practise
2020 to monitor medical procedures sex selection, indulge in sale of
used to assist people to achieve human embryos or gametes and
pregnancy. those who operate rackets.
Background  The Bill will also ensure

India has one of the highest growths in the confidentiality of intending couples
number ART centres and ART cycles and protect the rights of the child.
performed every year. India has become
one of the major centres of this global
fertility industry, with reproductive
medical tourism becoming a significant
activity. This has also introduced a
plethora of legal, ethical and social issues;
yet, there is no standardisation of protocols
and reporting is still very inadequate.
Key features of the Bill

 The Bill provides for a national Board
which will lay down a code of
conduct to be observed by those
operating clinics.
 It will also formulate minimum Note: In the Surrogacy Regulation Bill

standards for laboratory and 2020, the government is planning to
diagnostic equipment and practices to restrict the maximum age of surrogates
be followed by human resources from “above the marriageable age” to 50
employed by clinics and banks. years.
 The States and Union Territories will

also have to form State Boards and
State authorities within three
128
Law Commission of India

Syllabus subtopic: Structure,  Apart from a full-time chairperson,
Organization and Functioning of the the commission will have four full-
Executive and the Judiciary time members, including a member-
secretary.
commission: composition and functions  The Law and Legislative Secretaries
in the Law Ministry will be ex-officio
News: The Union Cabinet gave its members of the commission.
approval to set up the 22nd Law
Commission. The Law Ministry will now  It will also have not more than five
notify the new panel, which will have a part-time members.
three-year term.
Functions
Background  The Law Commission advises the
 In 2015, a proposal was mooted to government on complex legal issues.
make the law panel into a permanent
body either through an Act of  The Law Commission shall, on a
Parliament or an executive order reference made to it by the Central
(resolution of the Union Cabinet). Government or suo motu, undertake
research in law and review of
 The move was shelved after the Prime existing laws in India for making
Minister’s Office preferred the existing reforms and enacting new legislation.
system to continue. In 2010, the then
UPA government had prepared a draft  It shall also undertake studies and
Cabinet note to give statutory status to research for bringing reforms in the
the commission but the idea did not justice delivery systems for
take off. elimination of delay in procedures,
speedy disposal of cases, reduction in
About Law Commission of India cost of litigation, etc..
 Law Commission of India is a non-
statutory body constituted by the 21st Law Commission
Government from time to time.  The previous Law Commission, under
Justice B.S. Chauhan (retd.), had
 Originally formed in 1955, the submitted reports and working papers
commission is reconstituted every on key issues such as simultaneous
three years and so far, 277 reports elections to the Lok Sabha and the
have been submitted to the Assemblies and a uniform civil code.
government. The tenure of the twenty-
first Law Commission ended in August  While it supported simultaneous
2018. elections, the commission had said the
time for a common code was not yet
Composition: ripe.
 Chairperson: A retired Supreme
Court judge or Chief Justice of a High
Court.
129
Empowered Technology Group

Syllabus subtopic: Structure, being developed at public sector
Organization and Functioning of the organisations.
Executive and the Judiciary
 The group would also work to
group: its mandate and significance 1. ensure that India had an updated
map of technology and technology
News: The Union Cabinet has approved products available and being
the setting up of an empowered developed;
technology group to help address issues 2. develop an “indigenisation road map”
such as “sub-optimal industrial for selected key technologies;
development”. 3. encourage Union Ministries and
departments and State governments to
About the group develop in-house expertise in policy;
 The 12-member panel will be headed and
by the Principal Scientific Adviser 4. use aspects of emerging technologies.
(PSA).
 The group will also facilitate cross-
 The decision to set up such a group sector collaborations and research
was based on recommendations of a alliances with universities and private
committee led by the Principal companies and formulate “standards
Scientific Adviser. and a common vocabulary” to screen
proposals for research and
 The Principal Scientific Adviser development.
(PSA) chairs the Prime Minister’s
Science, Technology and Innovation Significance of the move
Advisory Council (PM-STIAC),  Today, all the Ministries procure their
which includes industrialists, scientists own technology, but they don’t know
and technocrats and is tasked with if it’s the latest. This group will give
recommending policy action on advice to all ministries, agencies and
science and technology as well as PSUs.
coordinating between different
Ministries.  The move would be useful to
coordinate research.
Mandate
 Among the key issues, the group will
address is “dual-use technologies not
being optimally commercialised”.
Dual-use technologies have civilian
and military applications.
 The group is expected to develop in-

house expertise in aspects of policy
and use of emerging technologies, and
ensure sustainability of technology
130
Swachh Bharat Mission (Rural): 2nd phase

Syllabus subtopic: Welfare Schemes for the newly launched Jal Jeevan
Vulnerable Sections of the population by Mission.
the Centre and States and the Performance
of these Schemes  The programme will also work towards
ensuring that no one is left behind
Prelims and Mains focus: about the and everyone uses a toilet.
second phase and its implementation:
about Swachh Bharat Mission and its  The 15th Finance Commission has
significance proposed earmarking Rs 30,375 crores
for rural water supply and sanitation to
News: The Centre approved the second be implemented by rural local bodies
phase of Swachh Bharat Mission for the upcoming financial year.
(Rural), PM Modi’s pet project focussed
on sustainability of ODF (Open  The Department of Drinking Water
defecation free) and management of solid and Sanitation (DDWS) under the
and liquid waste. Ministry of Jal Shakti has, however,
advised all the states to reconfirm that
Background there are no rural households that still
The rural sanitation programme was don't have access to a toilet.
started on October 2, 2014, when the
sanitation coverage in the country was  The department has also said that to
reported at 38.7 per cent. More than 10 provide the necessary support to any
crore individual toilets have been such identified households to build
constructed since the launch of the individual household toilets in order to
mission and as a result, rural areas in all ensure that no one is left behind under
states have declared themselves open the programme.
defecation free (ODF) as on October 2,
2019.  The fund sharing pattern between the
Centre and States will be
Implementation of second phase
 The second phase will be implemented 1. 90:10 for North-Eastern States and
on a mission mode between 2020-21 Himalayan States and UT of J&K;
and 2024-25 with an estimated central 2. 60:40 for other States; and
and state budget of Rs 52,497 crore. 3. 100:0 for other Union Territories, for
all the components.
 The second phase will focus on Open
Defecation Free Plus (ODF Plus),  The Jal Shakti ministry said the
which includes ODF sustainability Swachh Bharat Mission-Grameen
and solid and liquid waste continue to generate employment
management (SLWM). and provide impetus to the rural
economy through construction of
 The ODF Plus programme will household toilets and community
converge with MGNREGA, toilets, as well as infrastructure for
especially for grey water waste management such as compost
management, and will complement
131
pits, soak pits, waste stabilisation 2. Swachh Bharat Abhiyan ("urban"),
ponds, material recovery facilities, etc. which operates under the Ministry of
Housing and Urban Affairs.
About Swachh Bharat Mission (SBM)
 SBM (1st phase) was a nation-wide  As part of the campaign, volunteers,
campaign in India for the period 2014 known as Swachhagrahis, or
to 2019 that aims to clean up the street, "Ambassadors of cleanliness", have
roads and infrastructure of cities towns, promoted indoor plumbing and
urban and rural cities and area in India. community approaches to sanitation
(CAS) at the village level. Other non-
 The objectives of Swachh Bharat governmental activities include
include eliminating open defecation national real-time monitoring and
through the construction of household- updates from non-governmental
owned and community-owned toilets organizations (NGOs) such as The
and establishing an accountable Ugly Indian, Waste Warriors, and
mechanism of monitoring toilet use. SWaCH Pune (Solid Waste Collection
and Handling) that are working
 Run by the Government of India, the towards its ideas of Swachh Bharat.
mission aims to achieve an "open-
defecation free" (ODF) India by 2  The government has constructed 11
October 2019, the 150th birth million toilets since 2014. Many
anniversary of Mahatma Gandhi, by people continue to not use toilets
constructing 100 million toilets in rural despite having them. The campaign has
India at a projected cost of Rs.1.96 been criticized for using coercive
lakh crore (US$28 billion). approaches to force people to use
toilets. Many households have been
 The mission will also contribute to threatened with a loss of benefits such
India reaching Sustainable as access to electricity or food
Development Goal 6 (SDG 6), entitlements through the public
established by the UN in 2015. distribution system. However, a report
by UNICEF shows promising
 The campaign was officially launched improvements with sanitation coverage
on 2 October 2014 at Rajghat, New reaching 90 percent.
Delhi by PM Modi. It is India's
largest cleanliness drive to date with
three million government employees
and students from all parts of India
participating in 4,043 cities, towns, and
rural communities. PM Modi has
called the campaign Satyagrah se
Swachhagrah in reference to
Gandhi's Champaran Satyagraha
launched on 10 April 1916.
 The mission has two thrusts:

1. Swachh Bharat Abhiyan ("gramin"
or "rural"), which operates under the
Ministry of Jal Shakti; and
132
Pradhan Mantri Fasal Bima Yojana (PMFBY)

Syllabus subtopic: Welfare Schemes for Criticism of PMFBY
Vulnerable Sections of the population by PMFBY has come in from flak from a
the Centre and States and the Performance wide variety of stakeholders.
of these Schemes  Farmers groups and opposition
politicians have claimed that private
Prelims and Mains focus: about the insurance companies have made
move; about PMFBY: objectives and windfall gains on the scheme.
criticisms
 Several major insurers, including
News: The Union Cabinet approved the ICICI Lombard and Tata AIG, have
revamp of the Pradhan Mantri Fasal opted out of the scheme in 2019-20,
Bima Yojana (PMFBY) and the reportedly due to losses because of
Restructured Weather Based Crop high claims ratios. Several States,
Insurance Scheme at its meeting. including Punjab and West Bengal,
have refused to participate in the
Key highlights of the meeting scheme as well.
 The Centre has almost halved its
contribution to its own flagship crop Revamping PMFBY
insurance schemes, slashing its share  The Centre has made changes to the
of the premium subsidy from the scheme based on consultations with
current 50% to just 25% in irrigated States and inputs from all stakeholders.
areas and 30% for unirrigated areas
from the kharif season of 2020.  Farmers pay a fixed share of the
premium: 2% of the sum insured for
 In another significant step, enrolment kharif crops, 1.5% for rabi crops and
in the two schemes has also been 5% for cash crops.
made voluntary for all farmers,
including those with existing crop  Currently, the Centre and State split
loans. When the PMFBY was launched the balance of the premium equally.
in 2016, it was made mandatory for all However, the revamp now reduces the
farmers with crop loans to enrol for burden on the Centre and increases the
insurance cover under the scheme. share of States.
 58% of farmers enrolled in the About PMFBY

schemes are loanees who will no  In April, 2016, the government of
longer have to compulsorily take India had launched Pradhan Mantri
insurance cover. The numbers of Fasal Bima Yojana (PMFBY) after
enrolled farmers may go down in the rolling back the earlier insurance
first year, but it will pick up again after schemes viz. National Agriculture
that. The Centre would launch an Insurance Scheme (NAIS), Weather-
awareness campaign to encourage based Crop Insurance scheme and
farmers to voluntarily sign up for Modified National Agricultural
crop insurance policies. Coverage Insurance Scheme (MNAIS).
under the scheme is now 30% of
cropped area, according to  It envisages a uniform premium of
government data. only 2% to be paid by farmers for
133
Kharif crops, and 1.5% for Rabi crops.
The premium for annual commercial
and horticultural crops will be 5%.
 The scheme is mandatory for farmers

who have taken institutional loans
from banks. It’s optional for farmers
who have not taken institutional credit.
Objectives:
1. Providing financial support to farmers
suffering crop loss/damage arising out
of unforeseen events.
2. Stabilizing the income of farmers to
ensure their continuance in farming.
3. Encouraging farmers to adopt
innovative and modern agricultural
practices.
4. Ensuring flow of credit to the
agriculture sector which contributes to
food security, crop diversification and
enhancing growth and competitiveness
of agriculture sector besides protecting
farmers from production risks.
134
100-day sister cities challenge

Syllabus subtopic: Welfare Schemes for under implementation and
Vulnerable Sections of the population by completion.” Technical drawings and
the Centre and States and the Performance financial studies including DPRs,
of these Schemes feasibility reports and impact
assessment reports will be shared
Prelims and Mains focus: about the key amongst the two cities.
features of the event; about smart city
mission and its objectives  The internal rankings of the cities is
drawn up every Friday in the Ministry
News: Organised by the Ministry of based on performance (80 per cent)
Housing and Urban Affairs (MoHUA), and utilisation of funds (20 per cent).”
the 100-day sister cities challenge will
commence on 20th February. About Smart City Mission
 The Smart City Mission focuses on the
What is it? most relevant and greater opportunities
 The challenge pairs the 20 best to improve lives in India. The
performing Smart Cities with the 20 objective of this project is to provide
bottom ones in implementing projects a clean and sustainable environment
under the Smart City mission. for smart solutions.
 The program of pairing the best  The project includes core

performing smart cities to poorly infrastructure elements like proper
performing smart cities as 'sister cities' sanitation, adequate water supply,
is being called 20-20 formula. Sister robust IT connectivity, sustainable
Cities will sign a memorandum environment, safety and security of
agreement on February 20 under this citizens, education, and health, etc.
program.
 The government of India has been
About the event distributed to 100 smart cities among
 The cities have been paired based on the total number of states and UTs.
a certain criteria; for instance, coastal
towns, state capitals, industrial hubs,
hilly terrain or educational destinations
are paired up with each other.
 PM Modi’s Varanasi constituency,

currently ranked 14th, will be paired
up with Amritsar as both attract
religious tourists.
 The sister cities will have a joint

meeting once every 30 days (via
video conferencing), and at least once
in the 100-day period “the teams of
sister cities would visit the city and
understand the Smart Cities projects
135
Article 371
Syllabus subtopic: Indian Constitution— dealt in Articles 371D and 371E,
Historical Underpinnings, Evolution, 371J, 371I respectively.
Features, Amendments, Significant
Provisions and Basic Structure.  Most of the States that have been
accorded special provisions under
Prelims and Mains focus: about Article Article 371 are in the northeast and
371 and its various provisions related to the special status aims to preserve
northeast states; related issues their tribal culture.
News: Union Home Minister assured the 1. Article 371(A) states that no act of
northeastern States that the Centre Parliament shall apply to the State of
would never touch Article 371 of the Nagaland in respect of the religious or
Constitution that grants special social practices of the Nagas, its
provisions to the region. customary law and procedure,
administration of civil and criminal
About the event justice involving decisions according
Union Home Minister, also the chairman to Naga customary law and ownership
of the North Eastern Council (NEC), and transfer of land and its resources.
gave the assurance in his inaugural address
at the 68th plenary session of the NEC in  It shall apply to Nagaland only after
Guwahati. the State Assembly passes a resolution
The meeting was attended by the to do so, it says.
Governors, the Chief Ministers and
officials of eight northeastern States.  In June 2019, the Member of
Legislative Assembly (MLA) of the
Background Nationalist Democratic Progressive
As the government abrogated Article 370 Party (NDPP) observed that Article
that gave special status to Jammu and 371(A) impedes the State’s
Kashmir, Article 371, which has special development. Article 371(A) states
provisions for other States, mostly from that land and its resources in the
the Northeast, has invited some attention. State belong to the people and not
the government.
About Article 371 of the Indian  The MLA said due to the provisions in
Constitution Article 371(A), the landowners usually
 Article 371 gives the power to the do not allow the government to carry
President of India to establish out any development activities on their
separate development boards for plot.
Vidarbha, Marathwada regions of
Maharashtra and the rest of the State 2. Article 371-G that deals with special
and Saurashtra, Kutch and rest of provisions with respect to Mizoram
Gujarat. has similar nature.
 It states that an act of Parliament
 Special provisions with respect to relating to religious and social
Andhra Pradesh, Karnataka, Goa are practices of Mizo customary law and
procedure, administration of civil or
136
criminal justice involving decisions
according to Mizo customary law,
ownership and transfer of land and its
resources will not apply to Mizoram
unless State assembly decides to do so.
3. Article 371B deals with special

provision with respect to the State of
Assam.
 The main objective of inserting Article
371B was to facilitate the creation of
the sub-State ‘Meghalaya’.
4. Article 371C deals with special

provisions with respect to Manipur
which became a State in 1972.
5. Articles 371F, 371H talk about special

provisions with respect to States of
Sikkim and Arunachal Pradesh,
respectively.
137
State Human Rights Commission (SHRC)

Syllabus subtopic: Statutory, Regulatory  Besides the above members, the
and various Quasi-judicial Bodies. Commission has its own secretary as
well.
Prelims and Mains focus: about SHRCs:
composition and functions Term of office: Three years or till the age
of seventy years (eligible for
News: The State Human Rights reappointment).
Commissions (SHRCs) were asked by
National Human Rights Commission Removal
Chairperson to join the common portal — The chairman or any other member is
HRC Net — to avoid duplication of removable by the President on the charge
complaints. of proved misbehavior or incapacity
after a regular inquiry by a judge of the
About State Human Rights Commission Supreme Court. They are removable on
(SHRC) the grounds as provided for such removals
A State Government may constitute a of the members of NHRC as well.
body known as the Human Rights
Commission of that State to exercise the
powers conferred upon, and to perform the Functions
functions assigned to, a State Commission. These functions of the SHRCs are to:
1. Inquire suo motu or on a petition
Composition presented to it, by a victim, or any
A State Commission is to be composed of person on his be into complaint of:
a chairman and some members  Violation of human rights or abetment
appointed by the Governor in thereof;
consultation with the  Negligence in the prevention of such
1. Chief Minister, violation by a public servant.
2. Home Minister,
3. Speaker and 2. Intervene in any proceeding involving
4. Leader of the Opposition in State any allegation of violation of human
Assembly. rights, per before a Court with the
approval of such Court.
 The chairman is to be a retired judge
(or Chief Justice) of the High Court; 3. Visit under intimation to the State
Government, any jail or any other
 one of the members should be a institution under the control of the
serving or a retired District Judge in State Government where persons are
that state; detained or lodged for purposes of
treatment, reformation or protection to
 one member is to be a serving judge study the living conditions of the
or a retired judge of the High Court, inmates and make recommendations
thereon.
 two members are to be activists in the
field of Human Rights. 4. Review the safeguards provided by or
under the constitution of any law for
the time being in force for the
138
protection of human rights and
recommend measures for their
effective implementation.
5. Review the factors, including acts of

terrorism that inhibit the enjoyment of
human rights and recommend
appropriate remedial measures.
6. Undertake and promote research in the

field of human rights.
7. Spread human rights literacy among

various sections of society and
promote awareness of the safeguards
available for the protection of these
rights through publications, the n
seminars and other available means.
8. Encourage the efforts of Non-

Governmental organisations and
institutions working in the field of
human rights.
9. Such other functions as it may consider

necessary for the promotion of human
rights.
139
UK’s new points-based visa system

Syllabus subtopic: Effect of Policies and the transition period after the UK's
Politics of Developed and Developing exit from the European Union (EU)
Countries on India’s interests, Indian in January 2020, which will formally
Diaspora. end free movement of people within
the economic bloc for the UK as a
Prelims and Mains focus: about the new non-member.
immigrations system and its features;
about its significance for India Other details
 The Home Secretary also announced a
News: United Kingdom’s Home reformed Global Talent route. This
Secretary announced the launch of the will include a new fast-track scheme
UK's new points-based visa system which for world-leading scientists, top
is inspired by Australia’s points-based researchers and mathematicians to
immigration system. come to the UK. This will run
alongside the Points-Based
Objective Immigration System and will allow a
It is aimed at attracting the "brightest small number of highly skilled
and the best" from the world, including workers to come to the UK without a
from India, and cutting down numbers job offer.
of cheap, low-skilled workers coming to
United Kingdom.  Student visa routes will also be
points-based and be opened up to EU
About the new immigration system citizens from next year. Those wishing
 It will award points for specific skills, to study in the UK will need to
professions, salaries or demonstrate that they have an offer
qualifications/attributes, and visas will from an approved educational
be awarded to those who gain institution, that they can support
sufficient points. The system will themselves financially and that they
provide simple, effective, and flexible speak English.
arrangements for skilled workers to
come to the UK.  To address the specific labour
concerns of the agricultural sector
 The new single global system will reliant on seasonal workers from the
treat EU and non-EU citizens EU, the Seasonal Workers Pilot will
(including India) equally, giving top be expanded in time for the 2020
priority to those with the highest skills harvest from 2,500 to 10,000 places.
and the greatest talents, including
scientists, innovators and academics.  EU citizens and other non-visa
nationals will not require a visa to
 The minimum general salary threshold enter the UK when visiting the UK for
will be reduced to £25,600 up to six months.
(approximately Rs.23.8 lakh), down
from the previously proposed £30,000.  However, the use of national identity
cards will be phased out for travel to
 The new system will come into force the UK and the Home Office
from January 1 2021 at the end of highlighted that as part of its post-
140
Brexit offer, those EU citizens resident
in the UK by December 31 2020 can
still apply to settle in the UK through
the EU Settlement Scheme until June
2021.
Benefit for Indian nationals

 The new Points-Based Immigration
System is great news for Indian
nationals looking to work in the UK. It
puts Indian applicants on a level
playing field, and prioritises those
with the greatest skills and talent –
something which India has in
abundance.
 A lot of Indian students want to put

experience to their qualifications, so
they would welcome the lower salary
threshold for when they have to
convert their visa.
 The lower salary threshold means

skilled Indians are easily the biggest
winner.
141
Govt. to revive old drug manufacturing units

Syllabus subtopic: long gestation period to start a new
 Issues Relating to Development and plant, the government is considering
Management of Social Sector/Services whether upgrading older facilities with
relating to Health, Education, Human newer technology would help expedite
Resources. the process.
 Government Policies and Interventions
for Development in various sectors and  Over the last three decades, most of the
Issues arising out of their Design and 7-8 manufacturing plants producing as
Implementation. many as 20 ingredients such as
penicillin G, erythromycin,
Prelims and Mains focus: about the move rifamycin, tetracycline, citric acid
and its significance; about Coronavirus and vitamin B12, were shut down
outbreak and its impact on India-China due to “cheaper alternatives from
trade; about CDSCO China”. The possibility of upgrading
and restarting these plants is under
News: The government is planning to consideration of the Department of
revive old drug manufacturing units that Pharmaceuticals.
produced key ingredients for crucial
medicines in the past, but are now being  The idea is looking to wean away the
imported from China. Indian pharmaceutical industry
from its heavy dependence on
Background Chinese imports and strengthen its
 The move is significant in the self-reliance. While India had the
backdrop of the novel coronavirus capability to manufacture most key
(COVID-19) outbreak in China, and ingredients, there was no domestic
disruption of global supply chains. manufacturer currently for
fermentation-based ingredients.
 China contributes to almost 70 per Fermentation-based ingredients are
cent of India’s imports of key used in most antibiotics and
ingredients for medicines. vitamins.
About the move Why is government’s support

 In response to the novel coronavirus necessary?
outbreak, the Department of  Unless the pharmaceutical industry
Pharmaceuticals constituted a is incentivised at least for a few years
committee under the chairmanship of the way China incentivised its own
Central Drugs Standard Control pharmaceutical industry, there is little
Organisation (CDSCO) Joint Drug chance of private investment in this
Controller to assess and “closely sector.
monitor” the situation.
 Three decades back, China wasn’t even
 The committee has identified 58 in the picture in API production. But
active pharmaceutical ingredients then, with full government support,
(APIs), intermediates and key starting they scaled up and sold to India at 20-
materials (KSMs) where India needs to 25 percent less than domestic
build self-reliance. Considering the companies producing bulk drugs. Even
142
with import duties, their products were
cheaper, so Indian formulators began
picking them over Indian
manufacturers.
 China was able to build its cost-

effective active pharmaceutical
ingredients (API) capabilities due to
various incentives like cheap land and
electricity. India may have to
consider similar incentives to ensure
domestic manufacturers build scale and
compete with lower Chinese prices.
 Niti Aayog, in a meeting on India’s

dependence on imports of “critical”
APIs, with the government had given
some suggestions on environmental
concerns and financial incentives
like subsidies, which will be examined
by the government.
About CDSCO:
The Central Drugs Standard Control
Organisation (CDSCO) under Directorate
General of Health Services, Ministry of
Health & Family Welfare, Government
of India is the National Regulatory
Authority (NRA) of India.
Functions: Under the Drugs and

Cosmetics Act, CDSCO is responsible
for approval of New Drugs, Conduct of
Clinical Trials, laying down the
standards for Drugs, control over the
quality of imported Drugs in the country
and coordination of the activities of State
Drug Control Organizations by providing
expert advice with a view to bring about
the uniformity in the enforcement of the
Drugs and Cosmetics Act.
CDSCO along with state regulators, is

jointly responsible for grant of licenses of
certain specialized categories of critical
Drugs such as blood and blood products, I.
V. Fluids, Vaccine and Sera.
143
Competition (Amendment) Bill, 2020

Syllabus subtopic: Government Policies enacted. Buyer cartels were not
and Interventions for Development in covered under the Competition Act and
various sectors and Issues arising out of hence the proposed changes would
their Design and Implementation. give clarity to this aspect.
Prelims and Mains focus: about the key  The draft amendments also seek to
changes proposed in the bill; about CCI empower the director general for
investigation to send a person to
News: The Ministry of Corporate prison for up to six months or
Affairs has put the draft Competition impose a fine of Rs 1 crore if the
(Amendment) Bill, 2020, in the public latter refuses to produce any book,
domain seeking feedback from all paper, or document the former has
stakeholders. asked for. Currently, the CCI imposes
penalties on companies on the basis of
About the draft Bill their turnover if they flout competition
 The Competition Commission of rules. When it comes to directors of
India (CCI) is set to get more powers companies or proprietorship firms,
to oversee mergers and acquisitions penalties are imposed on the basis of
(M&As) involving technology their income. However, the law does
companies, which are currently out not have any provision to empower the
of its purview. The regulator may also CCI to impose penalties on the income
see changes in its structure and of individuals.
functioning to ensure fair practices
when it comes to scrutinising business  To remove the lacunae, the MCA
processes. suggested the Bill has a provision of
income, on which penalty could be
 According to the proposed bill, the imposed under Section 27 of the
Centre will also have the option to Competition Act. Including the word
prescribe new criteria for mergers, ‘income’ in the Act may provide a
other than the asset size and revenue legal basis to the CCI to impose
of companies—so far the only penalties on individuals.
criteria for competition scrutiny.
 However, the amendment does not
 The bill also proposes that it is take into consideration the concept
mandatory for the Commission to of “relevant turnover” as decided by
give parties to a combination an the Supreme Court in the Excel Crop
opportunity for being heard in case Care matter in 2017. The existing
any adverse order is going to be rules, according to the ministry, were
passed. not adequate as new-age technology
companies have huge valuations, but
 Buyers forming a cartel may be their assets and turnover in India keep
penalised if the changes proposed by them out of the purview of the
the Ministry of Corporate Affairs competition law.
(MCA) to the Competition Act are
144
 The draft amendments also call for called spoke, to destroy competition
introducing a “commitment and by, say, increasing or lowering prices.
settlement” clause in the The hub-and-spoke agreements were
Competition Act. The enabling clause not specifically covered under the
will allow those found in contravention Competition Act.
of the competition law to “commit” to
correct their ways to avoid action  The proposed amendments also seek to
even before investigation is completed. expand the composition of the CCI
Even in cases where investigation is by including part-time members in
over, evidence has been found, and the the Commission. The Commission is
adjudicating process has started, the currently a four-member body,
companies can still enter a settlement. including the chairman.
The companies will have to pay a
certain amount as fine and avoid legal
proceedings after ensuring that any
anti-competitive practice will be
corrected.
 The proposed amendments also seek to

provide clarity to “hub and spoke
cartels”. The MCA suggested hubs
also be covered under Section 3(3),
which deals with cartels that hinder
competition. A hub-and-spoke cartel
is basically an arrangement between
companies where a dominant player,
called hub, is wooed by other firms,
145
U.S President Trump to visit India

Syllabus subtopic: Effect of Policies and Cabinet Committee on Security (CCS)
Politics of Developed and Developing chaired by the Prime Minister.
Diaspora.  A limited trade deal with India was
seen as a possibility earlier this month,
Prelims and Mains focus: about the but Trump seemed to have ruled it out.
details of the visit; about India-US trade But analysts speculate that one reason
dispute Trump does not appear to be in a hurry
to wrap up a trade deal with India
News: US President Donald Trump is on could be that he has got China to agree
his first official state visit to India on 24th to a deal and worked out another with
February. He is scheduled to travel to Mexico and Canada to replace the
Ahmedabad, Agra and New Delhi on a 1994 North American Free Trade
three-stop visit that will end on 25th Agreement (Nafta).
February.
Background
“Fair trade" and “America First" have been
central planks of Trump’s presidency and a
pact with India will burnish his credentials
as a deal maker, as well as to show his
constituency that he has kept his poll
promises.
Deal or No Deal?
 US President Donald Trump kept up
the pressure on India to lower tariffs,
complaining it has been hitting the US
 China has the biggest trade surplus
“very hard" even as he unveiled a
with the US, while Nafta has been
power-packed team—albeit with the
described by Trump as America’s
trade chief missing—to accompany
“worst" deal, blamed for a decline in
him on his visit to India.
manufacturing jobs.
 Although two defence pacts worth
 According to foreign ministry both
more than $3 billion could be signed
India and the US have agreed not to
during the visit,
rush the deal and instead look to the
future and strike a deal that will be a
 A deal to buy six more Apache
“win-win" for both sides.
helicopters for the Indian Army could
be expected around Trump’s visit. That
 New Delhi is looking to increase its
deal is expected to be worth around
energy purchases from the US that
$800 million.
would cut down India’s trade surplus.
New Delhi is also looking to buy
 The procurement of 24 Seahawk anti- civilian passenger aircraft from the
submarine warfare-capable US in the years ahead.
helicopters was cleared by India’s
146
India- Maldives Relations

Syllabus subtopic: India and its enforcement, counter-terrorism,
Neighborhood- Relations. counter-radicalisation, organised
Prelims and Mains focus: about the crime, drug trafficking and capacity
details of the meeting; about India- building.
Maldives relations
News: Union Home Minister met his India-Maldives relations
Maldivian counterpart and discussed Background
bilateral cooperation in the fields of  The Maldives is located south of
counter-terrorism and counter- India’s Lakshadweep Islands in the
radicalisation, among other things. Indian Ocean.
 India was one of the first nations to
About the meeting recognize Maldives’ independence.
 The two ministers discussed issues of  India and Maldives officially and
mutual interest in the area of security amicably decided their maritime
and law enforcement cooperation. boundary in 1976.
 Welcoming the strengthening of  Since then, India and Maldives have
India-Maldives Partnership, the developed close strategic, military,
Ministers welcomed the expansion of economic and cultural relations.
bilateral cooperation between India  India has supported Maldives’ policy
and Maldives in diverse fields, of keeping regional issues and
including policing and law struggles away from itself.
147
Development of bilateral relations following the collapse of the island’s
 Both nations are founding members of only water treatment plant, India came
the South Asian Association for to rescue by sending its heavy lift
Regional Cooperation (SAARC), the transporters like C-17 Globemaster III,
South Asian Economic Union and II-76 carrying bottled water.
signatories to the South Asia Free  The humanitarian relief efforts by
Trade Agreement. the Indian side was widely appreciated
 Operation Cactus: It was an attempt in Malé across all sections of people
by a group of Maldivians led by even the Vice-President of Maldives
Abdullah Luthufi and assisted by thanked the Indian ambassador for
armed mercenaries of a Tamil swift action.
secessionist organization from Sri
Lanka, the People’s Liberation The current situation between India and
Organisation of Tamil Eelam the Maldives:
(PLOTE), to overthrow the  India stands ready to work with the
government in the island republic of Maldives to strengthen maritime
Maldives on 3rd November 1988. The security and help expedite the
coup d’état failed due to the inclusion of its Indian Ocean
intervention of the Indian Army, neighbour in the Commonwealth
whose military operations efforts were again.
code-named Operation Cactus.  India has invited the country to join the
 Drinking-water crisis in Malé: International Solar Alliance.
Maldives urged India for help
148
A Future for the World’s Children? report

Syllabus subtopic: Issues Relating to  The report shows that children in
Development and Management of Social Norway, the Republic of Korea and
Sector/Services relating to Health, the Netherlands have the best chance
Education, Human Resources. at survival and well-being, while
children in the Central African
Prelims and Mains focus: about the Republic, Chad, Somalia, Niger and
report and its key findings; India’s Mali face the worst odds.
performance
 It also cautions that globally, the
News: A Future for the World’s number of children and adolescents
Children? report was recently released who are obese has increased from 11
by a Commission of more than 40 child million in 1975 to 124 million in 2016
and adolescent health experts from — an 11-fold increase.
around the world. The Commission was
convened by the World Health  The only countries on track to beat the
Organization (WHO), UNICEF and The CO2 emission targets by 2030, while
Lancet. also performing fairly (within the top
70) on child flourishing measures are:
India specific findings Albania, Armenia, Grenada, Jordan,
 In the report assessing the capacity of Moldova, Sri Lanka, Tunisia, Uruguay
180 countries, India stands 77th and Vietnam.
(sustainability index) and is at 131st
position on a ranking that measures  Despite improvements in child and
the best chance at survival and well- adolescent health over the past 20
being for children. years, progress has stalled and is set to
reverse. An estimated 250 million
 The report says although India has children under five in low- and
improved in health and sanitation, it middle-income countries are at risk
has to increase its spending on of not reaching their developmental
health. potential. Moreover, every child
worldwide now faces existential threats
Global findings from climate change and commercial
 No single country is adequately pressures.
protecting children’s health, their
environment and their future.  While the poorest countries need to
do more to ensure healthy lives for
 The report finds that the health and children, carbon emissions —
future of every child and adolescent disproportionately from wealthier
worldwide is under immediate threat countries — threaten the future of all
from ecological degradation, climate children, states the report. This report
change and exploitative marketing shows that the world’s decision makers
practices that push heavily processed are, too often, failing today’s children
fast food, sugary drinks, alcohol and and youth: failing to protect their
tobacco at them. health, failing to protect their rights
and failing to protect their planet.
149
G20 Summit
Syllabus subtopic: Important International outstanding stock of corporate bonds
Institutions, agencies and fora - their from 9 per cent earlier in the Budget.
Structure, Mandate.  The Reserve Bank of India had last
Prelims and Mains focus: about G20, December raised FPI investment
steps taken by India to deepen corporate limits in G-sec as well as short-term
bond market and attract foreign portfolio bonds. The government also proposed
investment (FPI) to formulate a law for expanding the
News: The Finance Ministers and credit default swaps market.
Central Bank Governors’ meeting is  The Centre also proposed to float a
being held in Riyadh under Saudi new debt exchange-traded fund
Arabia’s G20 presidency for the first (ETF) that will comprise of
time. government securities (G-sec), to
enable retail investors — who are so
Highlights of the meeting far not investing much in the G-sec
 Finance Minister of India called for market — buy a basket of government
closer collaboration between bonds through the units in the
international revenue agencies to proposed debt ETF in a seamless
investigate tax affairs of offenders manner.
who cross borders for escaping tax
investigation. About G20
 With regard to infrastructure  The G20 is an annual meeting of
development, the FM suggested G20 leaders from the countries with the
nations to refrain from developing largest and fastest-growing economies.
any common prescriptive approach Its members account for 85% of the
since different countries are at varied world’s GDP, and two-thirds of its
stages of adoption of technology in population.
infrastructure.  The G20 Summit is formally known as
 Participating in a session on Financial the “Summit on Financial Markets
Resilience & Development, the FM and the World Economy”.
highlighted steps taken by India to  Members: Argentina, Australia,
deepen corporate bond market and Brazil, Canada, China, France,
attract foreign portfolio investments Germany, India, Indonesia, Italy,
in the private debt and government Japan, Mexico, Russia, Saudi Arabia,
securities market. South Africa, South Korea, Turkey, the
United Kingdom, the United States and
What are those steps taken by the the European Union.
Indian government?  Establishment: After the Asian
 In the Union Budget 2020-21 Financial Crisis in 1997-1998, it was
announced on February 1, the FM had acknowledged that the participation of
announced several steps to widen and major emerging market countries is
deepen the corporate bond and the needed on discussions on the
government securities market. international financial system, and G7
 The Centre substantially raised finance ministers agreed to establish
investment limit for foreign portfolio the G20 Finance Ministers and
investors (FPIs) to 15 per cent of the Central Bank Governors meeting in
1999.
150
Insolvency and Bankruptcy Code’s (IBC) track

record
Syllabus subtopic: Government Policies success compared to the earlier loan
and Interventions for Development in recovery process.
their Design and Implementation. Is there a twist in the IBC success rate?
The two biggest loan recoveries in the case
Prelims and Mains focus: about the of Bhushan Steel and Essar Steel India
performance of IBC since its inception make up around 49.5% of the overall
recovery. If these recoveries are left out,
News: After the Insolvency and the total rate of recovery falls to 30.5%. If
Bankruptcy Code (IBC) became law in another big recovery, Bhushan Power and
May 2016, the ecosystem of corporate Steel, is excluded, then the rate of recovery
insolvency resolution process (CIRP) falls further to 28%, which is substantially
was put in place by the year-end. As of lower than the overall rate of recovery of
December 2019, the system had been in 43.1%. Having said that, it is much better
existence for three years. than what used to be the case before IBC
was in existence. Also, up until 2015, it
How good have been the loan used to take 4.3 years on an average to
recoveries? resolve an insolvency case in India. That
As of 31 December 2019, the 190 has fallen dramatically after IBC came into
companies that had defaulted on loans effect.
yielded resolution plans with different
degrees of realization. Claims worth What about the cases that do not go for
Rs.3.52 trillion in total had been filed by resolution?
financial creditors, primarily banks. Of If a resolution plan cannot be agreed
this, around Rs.1.52 trillion—43.1% of the upon within 330 days, the company that
claims under consideration—has been has defaulted on the loan goes for
recovered. This is much better than the liquidation. Till now, liquidation has been
rate of recovery before IBC was put in initiated against 780 firms, of which 40
place. Take the case of 2015-16: Of the have been closed in the process. The
total bad loans up for recovery worth recovery rate for firms that were liquidated
Rs.2.21 trillion, only Rs.22,768 crore, or in October-December was 10.7%. If the
10.3% of the loans, was recovered. This biggest recovery is left out, the rate is
evidence suggests IBC has been a huge close to nil.
151
How many firms are in bankruptcy What does this mean for the IBC
courts? system?
As can be seen from the chart, the number At the current rate of disposal of cases by
of companies being admitted to corporate NCLT, it could take nearly five-six years
insolvency resolution proceedings at the for the most important cases to be settled.
National Company Law Tribunal (NCLT) There is also a risk that the new system is
has shot up since January-March in 2017. getting overloaded with too many
The number of such companies was 1,961 corporate defaults being brought under
as of December 2019, up from 1,497 as of CIRP. One way to get around this hurdle is
September. What the data indicates is that by encouraging banks to sell smaller loan
the number of companies facing defaults of up to Rs.100 crore and not take
insolvency resolution is piling up at NCLT them to NCLT, so as not to clog the IBC
faster than it can dispose of them. This is system.
the problem Debt Recovery Tribunals used
to face earlier.
152
Possibility of India-US trade deal

Syllabus subtopic: Bilateral, Regional and countries, which have a competitive
Global Groupings and Agreements edge over India in terms of lower
involving India and/or affecting India’s wage costs.
interests.
 However, this is unlikely to happen
Prelims and Mains focus: about Trump’s with the US as a trade deal will result
visit and its impact on India-US relations; in a significant expansion of trade,
the possibilities and the areas where while simultaneously giving Indian
bilateral trade could get a boost. firms greater market access to one of
the largest economies. A deal can also
News: A trade deal during US President be instrumental in resolving problems
Donald Trump’s visit is unlikely. But a related to the mobility of Indian
changing geopolitical landscape, coupled professionals.
with closer ties with the US, makes a deal
that benefits both nations inevitable. How is an India-US deal different from
the others?
What’s the state of Indo-US trade ties? A trade deal with the US could address
 Bilateral trade between the US and issues related to tariffs and lead to India
India has been increasing, with the being viewed as an alternative for
US recently surpassing China to companies implementing a China+1
become India’s biggest trading policy. This could result in sizeable
partner. The US is also one of the few investments in the manufacturing sector
countries with which India has a and deeper integration of India in global
trade surplus, which stood at $16.85 value chains. A deal would of course help
billion in 2018-19. expand Indian exports further.
 The trend continued during April- Will it deepen India’s trade with the
December 2019. Bilateral trade world?
between the two countries was valued  World trade has seen a tectonic shift in
at $68 billion during this period in the last couple of years as production
contrast with the $64.96 billion with activity has become extremely
China for the same duration. China specialized and globalized. The
was India’s top trading partner recent wave of protectionism has led
between 2013-14 and 2017-18. Prior to the emergence of regional trading
to this period, India’s largest trading blocs, where such value chains are
partner was the United Arab shaping up.
Emirates.
 Geopolitics also plays a role. The
How will a deal impact bilateral trade? recent increase in oil purchase from
 Historically, India’s trade agreements the US and other strategic allies hints
have not given its exporters the kind of at deeper trade ties in the years ahead.
benefits that were expected. Oft-cited A deal with the US may lead to a
reasons include lack of awareness workable framework for similar deals
among exporters and the country’s with the UK and European Union.
focus on trade deals with developing
153
So, why does a deal remain elusive?
The deal may be delayed due to limited
consensus on its scope, combined with
India’s reluctance to offer greater
market access in areas such as
communications technology, agriculture
and medical devices. India’s agricultural
sector remains a bottleneck for the
signing of a trade deal with most
developed nations, so a limited deal
without addressing this issue is unlikely.
But as the gains from a deal would be
significant, it would be signed sooner
rather than later.
154
Sedition cases in India : NCRB data

Syllabus subtopic: Indian Constitution— were charged with sedition while in
Historical Underpinnings, Evolution, 2019, more than 3,300 farmers were
Features, Amendments, Significant charged with sedition for protesting
Provisions and Basic Structure. about land disputes.
Prelims and Mains focus: about sedition

law: cases related and NCRB data on it Less conviction and its reason
 Though police in these states and
News: The latest National Crime elsewhere are charging more people
Records Bureau (NCRB) data suggest with sedition, few cases actually
that sedition law remains as relevant as result in a conviction. Since 2016,
ever with sedition arrests increasing in only four sedition cases have seen a
recent years. conviction in court.
How is sedition defined under the law?  One reason for this could be that
Sedition, which falls under Section 124A sedition as an offence has no solid
of the Indian Penal Code, is defined as legal grounding in India. The Indian
any action that brings or attempts to Constitution lays out freedom of
bring hatred or contempt towards the expression as a fundamental right
government of India and has been illegal which many legal scholars have argued
in India since 1870. prevents sedition from being an
offence.
NCRB data
The National Crime Records Bureau
(NCRB), though, has only been collecting About Unlawful Activities (Prevention)
separate data on sedition cases since Act (UAPA) and its comparison with
2014. In 2014, there were 47 cases of Sedition law
sedition but that number increased to 70  In 1967, the government enacted the
in 2018 (the latest year with available Unlawful Activities (Prevention) Act
data). (UAPA). This was meant to be a
more specific law intended to impose
Cases of sedition more reasonable restrictions on
 Compared to other offences, sedition freedom of speech in the interests of
remains a rare crime (it accounts for sovereignty and integrity of India.
less than 0.01% of all IPC crimes).
But within India, some parts are  In 2018, there were 1,182 cases
emerging as sedition hotspots. registered under UAPA. And almost
all these cases (92%) were
 Assam and Jharkhand, for instance, concentrated in five states (Uttar
with 37 sedition cases each, account Pradesh, Jammu and Kashmir, Assam,
for 32% of all sedition cases between Jharkhand and Manipur).
2014-2018. In Jharkhand, the police
have used sedition to charge different  Because of its use to clamp down on
types of protesters. In January, more dissent, the UAPA has faced similar
than 3,000 protesters against the criticisms as the sedition law. And
Citizenship Amendment Act (CAA) the joint existence of a sedition
155
offence and the UAPA governing the before it could deliver its
same category of offence makes little recommendations.
sense.
 Any recommendation, though, would
 UAPA and sedition though are just have likely fallen on deaf ears. Over
two of the many offences that can be time and across different parties, the
committed against the state. Under Indian government’s stance has been
the NCRB’s breakdown of offences consistent on sedition. When asked in
against the state, the biggest offence Parliament if sedition is likely to be
comes under the Prevention of revoked soon, the current minister of
Damage to Public Property Act. The state in the home ministry was succinct
Act, which lays down the law about but clear in his response “There is no
damage to public property, accounted proposal to scrap sedition. There is a
for more than 80% of all offences need to retain the provision to
against the state in 2018 and has effectively combat anti-national,
increased since 2016. secessionist and terrorist elements."
A new category by NCRB

 NCRB, starting in 2017, introduced a
new category of crime: incidents of
violence by “anti-national elements".
These anti-national elements -
bucketed into four groups: north-east
insurgents, ‘Jihadi’ terrorists and
Naxalites and other terrorists - had
1,012 cases registered against them in
2018.
 But of all these offences, sedition

remains the most controversial.
Attempts at revoking the sedition law

 Globally, sedition is increasingly
viewed as a draconian law and was
revoked in the United Kingdom in
2010.
 In India itself, there have been two

attempts, via private member bills,
in the last decade to revoke it - but
both efforts were thwarted by
governments.
 More recently in 2018, the 21st Law

Commission of India issued a
consultation paper asking for views
on revoking sedition as an offence
but the commission’s term ended
156
Asian Development Bank

Syllabus subtopic: Important International  It also can’t be used for investing in
Institutions, agencies and fora - their capital markets, purchase of land and
Structure, Mandate. on-lending to other entities for such
activities as stated above.
Prelims and Mains focus: about masala
bonds; about Asian development bank
About Asian Development Bank
News: Asian Development Bank (ADB)  It is a regional development bank
has listed its 10-year masala bonds worth established on 19 December 1966.
Rs.850 crore on the global debt listing
platform of India INX (BSE-owned  Headquartered in the Ortigas Center
exchange). located in the city of Mandaluyong,
Metro Manila, Philippines.
About the move and its significance
 The proceeds would be used to  The bank admits the members of the
support local currency lending and United Nations Economic and Social
investment in India. Commission for Asia and the Pacific
(UNESCAP, formerly the Economic
 ADB’s masala bonds are listed on both Commission for Asia and the Far East
Luxembourg exchange and India INX. or ECAFE) and non-regional
developed countries. From 31
 This is the first time a foreign issuer members at its establishment, ADB
and a supranational is doing a now has 68 members.
primary listing with India INX. This
will help further in making GIFT  The ADB was modeled closely on the
IFSC (Gujarat International Finance World Bank, and has a similar
Tec-City -- International Financial weighted voting system where votes
Services Centre) a global hub for are distributed in proportion with
fund raising by Indian and Foreign members' capital subscriptions. ADB
issuers. releases an annual report that
summarizes its operations, budget and
What are masala bonds? other materials for review by the
 Masala Bonds are rupee-denominated public. ADB is an official United
bonds i.e the funds would be raised Nations Observer.
from overseas market in Indian rupees.
 Any corporate, body corporate and  As of 31 December 2016, Japan holds
Indian bank is eligible to issue Rupee the largest proportion of shares at
denominated bonds overseas. 15.677%, closely followed by United
States with 15.567% capital share.
Conditions: China holds 6.473%, India holds
 RBI mandates that the money raised 6.359%, and Australia holds 5.812%
through such bonds cannot be used for
real estate activities other than for
development of integrated township or
affordable housing projects.
157
India-US Comprehensive Global Strategic

Partnership
Syllabus subtopic: Bilateral, Regional and  They called for concerted action
Global Groupings and Agreements against all terrorist groups including
involving India and/or affecting India’s Al-Qaeda, ISIS, Jaish-e-Mohammad,
interests. Lashkar-e-Taiba, Hizb-ul-Mujahideen,
Prelims and Mains focus: about the visit the Haqqani Network, TTP, D
and its highlights; cooperation in various Company, and all their affiliates.
sectors  Both sides also took note of the efforts
News: US President Donald Trump of the ASEAN region to create a code
concluded his maiden 2-day visit to India. of conduct in the South China Sea
region. They also agreed to undertake
Key highlights development activities in third
 India and the U.S. resolved to upgrade countries and intensify cooperation
their bilateral relationship to a in the space domain
Comprehensive Global Strategic  Both sides had resolved to maintain
Partnership that will include issues the Internet as a free and secure
such as defence, security cooperation arena. India and the United States
and revitalisation of the Indo-Pacific recognised the need for an innovative
quadrilateral dialogue consisting of digital ecosystem that is secure and
Japan, the U.S., India and Australia. reliable, and facilitates the flow of
 Both sides also called upon Pakistan information and data.
to rein in cross-border terror threats  Both countries were also working on
and sought justice for the victims of cybersecurity and counter-terrorism
26/11 attack and the Pathankot issues.
terror attack of 2016.
158
Insurance Regulatory and Development

Authority of India (IRDAI)
Syllabus subtopic: Statutory, Regulatory allowing life insurers to offer indemnity-
and various Quasi-judicial Bodies. based health policies.
Prelims and Mains focus: about the move Present scenario

and its significance; about IRDAI As of now, only general insurance firms
and specialised health insurance
News: The Insurance Regulatory and companies are allowed to offer
Development Authority of India (IRDAI) indemnity-based health policies.
is considering the possibility of allowing
life insurance companies to offer health
policies despite opposition from general Opposition to the move
insurance companies. 1. The General Insurance Council, the
apex body of general insurers, has
Background opposed the proposal.
 The IRDAI move follows intense
lobbying by private life insurance 2. Another complaint against life insurers
companies for an entry into the fast- is mis-selling. The indemnity based
growing health insurance segment. health insurance business needs
enormous claims handling capacity and
 IRDAI (Health Insurance) that too under very tight time lines
Regulations 2016 allow life insurance which life insurance companies don’t
companies to offer benefit based health have capability and experience of.
insurance products only.
Representations have been received What is an indemnity-based health
from life insurance companies to allow insurance plan?
them to offer indemnity products as  According to insurance experts, in an
well. indemnity-based health insurance plan,
the policyholder is reimbursed the
 Insurance Act, 1938 vide Insurance cost of medical expenses. These plans
Laws (Amendment) Act 2015 will reimburse the policyholder with
recognised health Insurance as a the actual amount incurred as expenses
separate class of business. Historically, during a hospitalisation stay up to
health insurance is recognised as one the sum insured under the policy. If
of the important elements of a policyholder chooses a sum insured
healthcare and health insurance amount of Rs 5 lakh and is presented
premiums have been registering a with a hospitalisation bill amounting to
significant compounded annual growth Rs 2 lakh, the insurance company will
of around 20 per cent in the preceding pay out Rs 2 lakh to the policyholder.
10 years in India. The policyholder is required to submit
hospital bills detailing the expenses
About the move incurred during the hospital stay.
The regulator has set up a nine-member
committee to study the feasibility of
159
 On the other hand, a fixed benefit Functions:
health plan is one where a fixed  Protect the rights of insurance policy
amount of funds (the sum insured) is holders.
paid out to cover expenses for a  Provide registration certification to life
predetermined illness or condition insurance companies
that has been insured.  Renew, modify, cancel or suspend this
registration certificate as and when
Health insurance Premium appropriate; promote efficiency in
 During FY 2017-18, insurance conduct of insurance business
companies collected Rs 37,029 crore as  Promote and regulate professional
health insurance premium registering a organisations connected with insurance
growth of 21.8 per cent over the and reinsurance business; regulate
previous FY 2016-17. The share of investment of funds by insurance
group health insurance was the highest companies
at 48 per cent, followed by individual  Adjudication of disputes between
business (41 per cent) and the insurers and intermediaries or
government business (11 per cent). insurance intermediaries
 Five states — Maharashtra, Tamil

Nadu, Karnataka, Delhi UT and
Gujarat — contributed 68 per cent of
total health insurance premium. As per
IRDAI Annual Report 2017-18, the
insurance sector has covered 48 crore
number of lives under health insurance,
out of which 36 crore number of
persons are covered under various
government schemes.
 The industry has processed 1.6 crore

number of health insurance claims
during that year. The PMJAY scheme
launched in September 2018 had 18
lakh plus pre-authorizations approved
amounting to over Rs 2,400 crore as on
March 31, 2019. Another major
concern in health insurance business is
skewed distribution of health business
across various states and union
territories.
About IRDAI
It is an apex statutory body that
regulates and develops insurance
industry in India. It was constituted as per
provisions of Insurance Regulatory and
Development Authority Act, 1999. It is
headquartered in Hyderabad.
160
Arab Spring
Syllabus subtopic: Effect of Policies and Syria, the old autocracies would be
Politics of Developed and Developing replaced with new democracies.
Diaspora.  But Tunisia is the only country
where the revolutionaries outwitted
Prelims and Mains focus: about the Arab the counter-revolutionaries. They
Spring and its features overthrew Zine El Abidine Ben Ali’s
dictatorship, and the country
News: Hosni Mubarak, the Egyptian transitioned to a multi-party
leader who for nearly 30 years was the democracy.
resolute face of stability in the Middle
East, died on 25th February, ending his  But except Tunisia, the country-
days after a swift and ignominious tumble specific stories of the Arab uprising
from power in the Arab world’s pro- were tragic.
democracy upheaval.
 Though Tunisia’s president fell before Features
him, the ouster of Mr. Mubarak was  The Arab uprising was originally
the more stunning collapse in the face triggered by a combination of factors.
of the Arab Spring shaking regimes
across the Arab world.  The economic model based on
patronage was crumbling in these
What was the Arab Spring? countries.
 The Arab Spring was a series of pro-
democracy uprisings that enveloped  The rulers had been in power for
several largely Muslim countries, decades, and there was popular longing
including Tunisia, Morocco, Syria, for freedom from their repressive
Libya, Egypt and Bahrain. regimes.
 The events in these nations generally  More important, the protests were
began in the spring of 2011, which transnational in nature, though the
led to the name. However, the political targets of the revolutionaries were their
and social impact of these popular respective national governments.
uprisings remains significant today,
years after many of them ended.
 The driving force behind the protests
was a pan-Arabist anger against the
 When protests broke out in Tunisia old system. That’s why it spread like
in late 2010 and spread to other wildfire from Tunis to Cairo,
countries, there were hopes that the Benghazi and Manama.
Arab world was in for massive
changes.  They may have failed to reshape the
Arab political order, but the embers of
 The expectation was that in countries the uprisings appear to have survived
where people rose, such as Tunisia, the tragedy of ‘Arab Spring’.
Egypt, Yemen, Libya, Bahrain and
161
162
National Technical Textiles Mission

Syllabus subtopic: Government Policies research, export and skill
and Interventions for Development in development in this sector.
their Design and Implementation.  The Mission has four components to
achieve these goals.
Prelims and Mains focus: about the Component-l: Promoting both (i)
mission and its significance; about fundamental research at fibre level and (ii)
technical textiles and their applications application based research in geo-textiles,
agro-textiles, medical textiles, mobile
News: The Cabinet Committee on textiles and sports textiles and
Economic Affairs (CCEA) approved the development of bio-degradable technical
establishment of a National Technical textiles.
Textiles Mission to help India position Component-II: Promotion and Market
itself as a “global leader” in technical Development.
textiles. This includes increasing exports Component-III: Export promotion of
of these “futuristic” segments of textiles by technical textiles and ensuring 10%
over 40 per cent in the next two years. average growth in exports per year upto
2023-24. An Export Promotion Council
What are technical textiles? for Technical Textiles will be set up for
Technical textiles are products used for this purpose.
functional purposes. They have various Component-IV: Promoting technical
applications, ranging from agriculture, education at higher engineering and
roads, railway tracks, sportswear and technology levels related to technical
health on the one end, to bullet-proof and textiles.
fire-proof jackets, high-altitude combat
gear and space applications on the other Aim: The Mission will aim at an average
end of spectrum. growth rate of 15-20 per cent per
annum, taking the level of the domestic
Present scenario market size to $40-50 billion by the year
 India’s technical textiles segment is 2024. The mission aims to do this through
estimated at $16 billion — market development, market promotion,
approximately 6 per cent of the global international technical collaborations,
market for this segment. investment promotions and ‘Make in
India’ initiatives.
 The penetration-level of technical
textiles is low in India, varying Other details
between 5-10 per cent as opposed to a  Around Rs 1,000 crore of the outlay
level of 30-70 per cent in developed is earmarked for “fundamental”
countries. research aimed at “path breaking”
technological products in the fibres
About National Technical Textiles space, as well as application-based
Mission research in segments like agro-textiles,
 The Cabinet has approved a total medical textiles and mobile textiles. It
outlay of Rs 1,480 crore for the will also be used towards the
project, which will be implemented development of biodegradable
over four years and aims to promote technical textiles.
163
 The government aims to enhance

exports of technical textiles to Rs
20,000 crore by 2021-22 from
approximately Rs 14,000 crore
currently.
 The Mission’s export promotion

component also aims for a 10 per cent
average growth in exports per year up
to 2023-24.
 The Mission will also aim at

improving education, skill
development and adequacy of
human resources in the country,
which the government feels is
currently “not adequate to meet the
technologically challenging and fast
growing technical textiles segment”.
Arrangements have been made for the
skill development of 50,000 people in
the technical textiles field. The target
of the mission is to nullify the burden
of this segment on the country’s trade
deficit over the course of one year.
 The Centre will focus on including the

usage of technical textiles in
“various” flagship missions and
programmes of the country, like the
Jal Jivan Mission, Swachh Bharat
and Ayushman Bharat.
 A directorate in the Ministry of

Textiles will be made operational for
the implementation of this mission,
but will move into a sunset phase after
four years.
164
Cabinet approves Surrogacy (Regulation) Bill,

2020
Syllabus subtopic: Government Policies also included deleting the definition
and Interventions for Development in of “infertility” as the inability to
various sectors and Issues arising out of conceive after five years of
their Design and Implementation. unprotected intercourse on the ground
that it was too long a period for a
Prelims and Mains focus: about the Bill: couple to wait for a child.
aim and significance; about surrogacy in
India
News: The Union Cabinet has approved

the Surrogacy (Regulation) Bill, 2020.
Only Indian couples can opt for surrogacy
in India
Details of the Bill

 Aim: The Bill is aimed at banning
commercial surrogacy and allowing
altruistic surrogacy.
 The Bill proposes to regulate

surrogacy by establishing a National
Surrogacy Board and State
Surrogacy Boards and appropriate
authorities in the States and Union
Territories respectively.
 The proposed insurance cover for a

surrogate mother has now been
increased to 36 months from 16
months earlier.
 The Bill allows a “willing” woman to

be a surrogate mother and it will
benefit widows and divorced women
besides infertile Indian couples.
 The Cabinet approved the Surrogacy

(Regulation) Bill after incorporating
the recommendations of a Rajya
Sabha Select Committee.
 The 15 major changes suggested by

the 23-member committee to the
Surrogacy (Regulation) Bill, 2019,
165
India-Myanmar
Syllabus subtopic: India and its capacity development work in the
Neighborhood- Relations. form of small projects which yield
quick beneficial results for the local
Prelims and Mains focus: about the people.
details of the agreement signed; about
India-Myanmar relations  On the side of governance, India will
help Myanmar with the project of e-
News: The visiting Myanmar President U ID cards, which is modelled after the
Win Myint had a meeting with PM Modi Aadhaar project.
on important bilateral issues. The two
sides signed 10 agreements with a focus  The two sides decided to provide more
on socioeconomic development of projects to Rakhine State
Myanmar. Development Programme. India had
committed $25 million grant
Key takeaways from the meeting assistance to Myanmar over a period
Some of the major takeaways are of five years and phase-I involved
1. Bus service between Manipur’s Imphal completion of 250 prefabricated house
and Myanmar’s Mandalay, in Rakhine State.
2. more Rakhine state development  The two sides also expressed

programme projects, commitment to continue negotiations
on various pending treaties like
3. medical radiation equipment for Mutual Legal Assistance Treaty and
treatment of cancer patients, Extradition Treaty.
4. cooperation on petroleum, including in  India will also support establishment of

refinery, stockpiling, blending and Myanmar’s diplomatic academy, and
retail. extend National Knowledge Network
to Myanmar.
Details of the agreements signed
 India’s assistance in the construction of  They also reiterated Indo-Pacific
Integrated Check Point at Tamu, concept, as both sides agreed to work
Myanmar, bordering Manipur, will together to promote principles of
also be done. For ease of people-to- openness, inclusiveness,
people movement across the border at transparency, respect for international
Moreh Tamu, the two countries signed law and ASEAN centrality in Indo-
the Land Border Crossing Pacific.
Agreement in 2018, which allowed
bona fide travellers with valid  The agreements included an MoU on
document to cross the border at two ‘Cooperation for Prevention of
international points of entry/exit: Trafficking in Persons; Rescue,
Moreh-Tamu and Zokhawathar- Rih. Recovery, Repatriation and Re-
Integration of Victims of Trafficking’.
 They also decided to extend the
Quick Impact Project schemes to
Myanmar. Under this, India takes up
166
India Myanmar Relations oil and natural gas reserves to meet
India and Myanmar have traditionally had her energy requirements
much in common, with cultural, historical,
ethnic and religious ties, in addition to  Myanmar, a rapidly growing economy,
sharing a long geographical land border offers significant opportunities for
and maritime boundary in the Bay of trade in goods and services,
Bengal. investment and project exports.
Importance of Myanmar for India  Forums shared by both countries:

 Cultural, historical, ethnic and ASEAN; BIMSTEC; Mekong Ganga
religious ties Cooperation
 To tackle insurgency in North-East –  In addition to a land border, both

“a large number of cross-border ethnic countries also share a long maritime
groups and insurgents from boundary in the strategically
Northeast India have military bases significant Andaman Sea and Bay of
in Myanmar Bengal where they face common
challenges, which include not just a
 For Economic development of North- rising China but illegal fishing and
East – Act east policy – Myanmar smuggling.
lies at tri-junction of east, southeast Kaladan Multi-Modal Transit
and south Asia Transport Project
The project will connect the seaport of
 Strategically important to India as it Kolkata with Sittwe seaport in
is the only ASEAN country that Myanmar by sea; it will then link Sittwe
shares a border with India seaport to Lashio in Myanmar via
Kaladan river boat route & then from
 India is eying Myanmar’s abundant Lashio on to Mizoram in India by road
transport.
167
 It will reduce distance from Kolkata
to Mizoram by approximately 1000
km and cut travelling time to 3-4 days
for transport of goods.
 Significant in case of any conflict

with China as present route i.e.
chicken neck could be blocked by
China in conflict situation.
 The access to the sea that the project

provides its Northeastern states could
boost their economies.
 It would strengthen India’s trade and

transport links with Southeast Asia.
 It will be instrumental in India’s

“act-east policy”.
India-Myanmar-Thailand trilateral
highway
India’s renewed commitment to complete
the 3,200-km India-Asean trilateral
highway that extends from Moreh in
India to Mae Sot in Thailand via
Mandalay, Myanmar.
168
India to attend signing of US-Taliban peace

deal
Syllabus subtopic: Effect of Policies and India’s engagement with Taliban
Politics of Developed and Developing  While India has never negotiated
Countries on India’s interests with the Taliban — except during the
IC-814 hijack in 1999 — it was part
Prelims and Mains focus: about US- of the Moscow-led talks with the
Taliban peace deal; its significance for Taliban in November 2018, which two
India former Indian diplomats attended as
“non-official representatives”.
News: In its first step towards engaging
with the Taliban, India has decided to  Though some within the strategic
send its envoy to the signing of the peace establishment have argued for
pact between the US and Taliban in engaging with the Taliban — who
Doha. represent the new reality — the foreign
policy establishment has so far shied
Background away from doing so. With the new US-
On February 21, US Secretary of State Taliban deal, India has recalibrated its
Mike Pompeo had said the US and Taliban position and taken the first step
would sign a peace agreement on February towards engaging with the Taliban.
29, at the end of a week-long period of
reduction in violence in Afghanistan. Joint statement related to Aghanistan
during Trump’s visit
About the issue  Significantly, India’s concerns on
 India received an “invitation” from Afghanistan were “very well reflected”
Qatar, and after deliberations at the in the joint statement issued during
highest level, the government has Trump’s visit.
decided to send India’s Ambassador to
Qatar.  The two sides agreed on a common
language, which was identical to
 This is the first time that an official India’s traditional position, and even
representative will attend a talked about India’s role in
ceremony where the Taliban development and security assistance to
representatives will be present. Afghanistan. Interestingly, while the
When Taliban was in power between statement talks about Afghan-led and
1996 and 2001, India did not recognise Afghan-owned peace process, it does
it diplomatically and officially. not mention Afghan-controlled —
since the reality is that the process is
 While the decision is not linked to US controlled by other players,
President Donald Trump’s recent including the US.
visit to India, the signing of the pact
will have strategic, security and  India and the US share interest in a
political implications for India. The united, sovereign, democratic,
matter was discussed by PM Modi and inclusive, stable and prosperous
Trump during their bilateral meetings. Afghanistan. They support an Afghan-
led and Afghan-owned peace and
169
reconciliation process that results in a  Apart from the US, India has been in
sustainable peace; cessation of regular talks with other active
violence; elimination of terrorist safe players like all political forces in
havens; and preservation of the gains Afghanistan, Russia, Iran, Saudi
of the last 18 years. President Trump Arabia and China on the issue.
welcomed India’s role in continuing to
provide development and security  While many western observers believe
assistance to help stabilise and provide the agreement could represent a chance
connectivity in Afghanistan,. for peace in the country, New Delhi
has been more cautious as it gives
 The last joint statement, issued during strength to Pakistan — a long-time
Modi’s visit to the White House in benefactor of the Taliban.
2017, had said that Trump welcomed
further Indian contributions to promote  Though India has softened its
Afghanistan’s democracy, stability, position on engaging with the
prosperity and security. Recognising Taliban, it has always maintained
the importance of their respective that it has three red lines — which it
strategic partnerships with spelt out when the US, Russia and
Afghanistan, the leaders committed to China were conducting their
continue close consultations and negotiations with the Taliban last year.
cooperation in support of
Afghanistan’s future. 1st red line
 All initiatives and processes must
Significance to US-Taliban deal for include all sections of the Afghan
India society, including the legitimately
 For New Delhi, the US-Taliban deal elected government. This is important
holds significance given that the as, in the past, the Afghan government
return of Taliban in Afghanistan has has often been sidelined by
harsh memories from the 1990s, international interlocutors when they
especially the IC-814 hijack, which engaged with the Taliban. This also
led to the release of terrorist Masood means that there is acceptability in
Azhar. Azhar later founded the Jaish- Delhi about talking to the Taliban —
e-Mohammed, responsible for several since they represent a “section of the
terrorist attacks, including the attack Afghan society”.
on Parliament in 2001 and the
Pulwama attack in 2019.  What happens to the Ashraf Ghani
government — which just got re-
 New Delhi has kept a close watch elected — will be something that
while the US and Taliban negotiators Delhi will watch. India, under Modi,
have been meeting for the last two has developed a close relationship with
years. It has been briefed by the US Ghani, and has been on the same side
interlocutors, especially US special of the argument regarding Pakistan-
envoy Zalmay Khalilzad who has sponsored terrorism.
travelled to India several times and met
External Affairs Minister at the 2nd red line
Munich Security Conference Any process should respect the
recently. constitutional legacy and political
mandate. This means that the achievement
170
of establishing democratic processes and
human rights, including women’s rights,
should be respected. Delhi will again
monitor whether the “new Taliban” — as
many Western interlocutors claim — will
respect these achievements over the last
two decades.
3rd red line

Any process should not lead to any
ungoverned spaces where terrorist and
their proxies can relocate. This is crucial
for India, as it points out the threat from
terrorist groups including the Haqqani
network, Al Qaeda and Islamic State,
which must not be allowed to operate
there. Also, Pakistan-based terrorist groups
like the Lashkar-e-Taiba, Jamaat-ud-Dawa
and Jaish-e-Mohammed must not be
allowed to relocate.
These “red lines” are India’s mantras,

even as it pushes for a national peace and
reconciliation process which is Afghan-
led, Afghan-owned and Afghan-controlled.
In short, India’s approach has been to
counter the Pakistan military
establishment’s influence over Kabul.
171
UK threatens to pull out of EU trade talks

Syllabus subtopic: Effect of Policies and Concerns of EU regarding Britain’s
Politics of Developed and Developing demands
Countries on India’s interests  Brussels says Britain’s geographical
proximity and existing close ties
Prelims and Mains focus: about Brexit; make it a different case, fearing it
the transition deal; conflicting issues could gain an uncompetitive
between UK and EU regarding its advantage by relaxing costly
implementation environmental and labour laws.
News: Britain put the prospect of a chaotic  It says Britain must mirror EU
Brexit back on the table as it set out its standards if it wants to continue
red lines for trade talks with the freely trading goods with the bloc’s
European Union. huge single market. However, Mr.
Johnson argues this would undermine
Background the whole point of Brexit, even if that
Britain left the EU on January 31, but means increased barriers with what is
both sides agreed to a standstill currently Britain’s largest trading
transition period lasting until December partner.
31 to allow time to strike a new
partnership.  Brussels also wants its state aid rules
to apply in the U.K. — something
About the issue London rejects.
 In its mandate for the negotiations that
start on March 2nd, Prime Minister Regarding Financial Services
Boris Johnson’s government rebuffed  Another potential flashpoint is
EU demands for common trading financial services, a key concern for
standards and continued fishing Britain that it wants resolved by June
rights. to allow firms to keep working in the
EU after December 31.
 And it warned it could walk away
from the talks if a “broad outline” of  The European Commission refused
a deal is not agreed by a meeting to commit the EU to completing so-
planned for June. called equivalence assessments by
June.
Likely consequences Other conflicting issues
This would see Britain’s currently  One crucial issue for both sides in the
seamless trading arrangements with the upcoming negotiations is fishing
EU, forged over half a century, abruptly rights.
end after a post-Brexit transition period
expires in December.  But it is also vital for many EU
countries, notably France, where fish
Demands of UK govt. and seafood caught in U.K. waters
UK wants a free trade agreement similar account 30% of sales for fishermen.
to the EU’s deal with Canada, set
alongside separate agreements on issues
such as fishing, energy and aviation.
172
 Brussels wants to maintain the right
of its fleets to fish in U.K. waters,
warning that failure to agree on this
could scupper the wider trade talks.
But Britain said it will take back
control of its waters as an
independent coastal State and it will
not link access to its waters to access
to EU markets.
 London proposes instead that fishing

opportunities be negotiated annually,
based on stock levels.
The European Commission, which is

negotiating on behalf of the EU’s 27
member states, said it was preparing for all
scenarios.
173
ADR report on donation to political parties

Syllabus subtopic: Background
 Salient Features of the Representation  The recognised national political
of People’s Act. parties — the BJP, the Congress, the
 the Role of NGOs, SHGs, various Trinamool Congress, the Communist
groups and associations, donors, Party of India (CPI), the Communist
charities, institutional and other Part of India (Marxist), the
stakeholders. Nationalist Congress Party (NCP)
and the Bahujan Samaj Party (BSP)
Prelims and Mains focus: about the — were supposed to submit details of
report and its key findings regarding all contributions over Rs.20,000,
donations received by national parties received by September 30, 2019.
News: Association for Democratic  The national parties declared a total of

Reforms (ADR) in its report analysed Rs.951.66 crore in such donations in
submissions made by the parties before the 2018-19 and much of the amount —
Election Commission (EC) regarding Rs.742.15 crore — was declared by the
donations received by them. BJP.
Key findings of the report CPI(M) 21 days and the CPI three
days.
 The Bhartiya Janta Party (BJP)
received three times more donations  The BSP declared that the party did not
over Rs.20,000 than all other receive any donations above Rs.20,000
national political parties combined during FY 2018-19, as it has been
in 2018-19. declaring for the past 13 years.
 The ADR report noted that the BJP  Compared to the previous financial
was 31 days late in its submission, the year 2017-18, the national parties’
174
declared donations increased by background of the candidates
103% in 2018-19, which was an contesting elections. Based on this,
election year. Donations to the BJP the Supreme Court in 2002, and
increased from Rs.437.04 crore in subsequently in 2003, made it
2017-18 to Rs.742.15 crore in 2018-19 mandatory for all candidates
and those to the Congress increased contesting elections to disclose
from Rs.26.658 crore to Rs.148.58 criminal, financial and educational
crore. background prior to the polls by filing
an affidavit with the Election
 The ADR found that the bulk of Commission.
donations to the parties came from
Maharashtra among States and  The first election watch was
corporate or business sectors when conducted by ADR in 2002 for
looking at the category of donors. Gujarat Assembly Elections whereby
The national parties received a total of detailed analysis of the backgrounds of
Rs.548.22 crore from donors in candidates contesting elections was
Maharashtra, followed by Rs.141.42 provided to the electorate in order to
crore from Delhi and Rs.55.31 crore help the electorate make an informed
from Gujarat. choice during polls. Since then ADR
has conducted Election Watches for
 Over 92% of the total donations, almost all state and parliament
worth Rs.876.11 crore, came from elections in collaboration with the
the corporate or business sector, National Election Watch. It conducts
while 3,509 individual donors gave multiple projects aimed at increasing
Rs.71.407 crore or 7.5% of the total. transparency and accountability in the
Out of the 1,776 donations made by political and electoral system of the
corporate or business sector, the BJP country.
received 1,575 donations totalling
Rs.698.092 crore. The Congress got Mission
Rs.122.5 crore from 122 donations Its goal is to improve governance and
from the corporate or business sector. strengthen democracy by continuous work
in the area of Electoral and Political
 The top donor was the Tata Group- Reforms. The ambit and scope of work in
controlled Progressive Electoral Trust, this field is enormous, Hence, ADR has
which gave a total of Rs.455.15 crore chosen to concentrate its efforts in the
to the BJP, the Congress, and the following areas pertaining to the political
Trinamool. system of the country:
 Corruption and criminalization in the
About Association for Democratic political process.
Reforms (ADR)  Empowerment of the electorate
 The Association for Democratic through greater dissemination of
Reforms (ADR) was established in information relating to the candidates
1999 by a group of professors from and the parties, for a better and
the Indian Institute of Management informed choice.
(IIM) Ahmedabad. In 1999, Public  Need for greater accountability of
Interest Litigation (PIL) was filed by Political Parties.
them with Delhi High Court asking for  Need for inner-party democracy and
[or requesting] the disclosure of the transparency in party-functioning.
criminal, financial and educational
175
Marathi to be compulsory in all Maharashtra

schools
Syllabus subtopic: Government Policies
and Interventions for Development in  The subject will be, thus, taught from
various sectors and Issues arising out of Class I to Class X from 2024, and the
their Design and Implementation. schools will follow a curriculum
prescribed by the government.
Prelims and Mains focus: about the bill
and its significance; concerns raised by the  The government will have the power
opposition to exempt a student or a class of
students from all or any of the
News: The Maharashtra Assembly provisions of the Bill.
unanimously passed the Maharashtra
Compulsory Teaching and Learning of  The Bill also provides for a penalty of
Marathi Language in Schools Bill, 2020 Rs.1 lakh for non-compliance.
Background Objection on provision of exemption

The development came on Marathi  The Opposition said it will create a
Bhasha Din (Marathi language day) loophole. The penalty of Rs.1 lakh is
which is celebrated on February 27, the too low. Several schools charge fees
birth anniversary of poet and Jnanpith ranging from Rs.5 lakh to Rs.12 lakh.
award winner late V.V. Shirwadkar. Paying Rs.1 lakh would not be a
problem for them. There is also no
Key highlights of the Bill provision for penalising repeat
 The Bill makes Marathi a offenders.
compulsory subject across all
schools in the State.  The govt said that the exemption
clause is for students coming from
 The legislation was on the lines of outside Maharashtra giving example
laws in Telangana, Tamil Nadu, of someone from outside the State
Kerala and Karnataka, and it makes taking admission in Maharashtra in
teaching and studying Marathi Class VII. The exemption was meant
compulsory in all schools for such students as they would not be
(irrespective of the board to which able to catch up with local students
they are affiliated). who would be studying the subject
from the Class I.
 Marathi will become a compulsory
subject in all schools from Class I to
Class X in a phased manner from the
academic year 2020-2021.
 It will be introduced in Class I and

Class VI from the coming academic
year and extended to further classes in
subsequent years.
176
National Pharmaceutical Pricing Authority

(NPPA)
Syllabus subtopic: Statutory, Regulatory new process developed indigenously
and various Quasi-judicial Bodies. and patented.
Prelims and Mains focus: about the Drug Price Control Orders
decision; about drug prices control order;  The NPPA regularly publishes lists of
about NPPA and its functions medicines and their maximum ceiling
prices. The latest DPCO was released
News: The National Pharmaceutical in 2013 which has a list of 384 drugs.
Pricing Authority (NPPA) has decided to
exempt a new stent made by Meril Life  On 4 December 2017, it was
Sciences from price control, several announced that a Multi-disciplinary
months after a patient activist group raised committee of experts for consultation
safety concerns about the product. on matters pertaining to
implementation of Drug Price Control
Background Order (DPCO) including technicalities
 The decision comes nearly three years involved in pricing and new launches
after the drug pricing regulator had will be setup and it will have the
capped the prices of these products member secretary of the National
“in public interest”. Pharmaceutical Pricing authority
(NPPA) as its convener.
 NPPA, in 2017, had slashed the ceiling
prices of stents by up to 85 per cent. About NPPA
 The National Pharmaceutical Pricing
About the decision Authority (NPPA) is a government
 The authority deliberated upon the regulatory agency that controls the
matter “at length” and observed that prices of pharmaceutical drugs in
establishing significant therapeutic India.
advantage and increased efficacy “is
not a pre-requisite for obtaining  NPPA was constituted vide
exemption under para 32(ii) of DPCO Government of India Resolution dated
2013.” 29th August, 1997 as an attached
office of the Department of
 Para 32 of the Drugs (Prices Pharmaceuticals (DoP), Ministry of
Control) Order, 2013 lists out certain Chemicals & Fertilizers as an
conditions a product has to meet to independent Regulator for pricing of
stay out of the provisions of the drugs and to ensure availability and
regulation. accessibility of medicines at affordable
prices.
 This includes new drugs developed
through indigenous research and Functions
development that are patented under 1. To implement and enforce the
the Indian Patent Act, 1970 and not provisions of the Drugs (Prices
produced elsewhere as well as new Control) Order in accordance with
drugs produced in the country by a the powers delegated to it.
177
2. To deal with all legal matters arising

out of the decisions of the Authority.
3. To monitor the availability of drugs,

identify shortages, if any, and to take
remedial steps.
4. To collect/ maintain data on

production, exports and imports,
market share of individual companies,
profitability of companies etc, for bulk
drugs and formulations.
5. To undertake and/ or sponsor

relevant studies in respect of pricing
of drugs/ pharmaceuticals.
6. To recruit/ appoint the officers and

other staff members of the Authority,
as per rules and procedures laid down
by the Government.
7. To render advice to the Central

Government on changes/ revisions in
the drug policy.
8. To render assistance to the Central

Government in the parliamentary
matters relating to the drug pricing
178
China-Pakistan Economic Corridor

Syllabus subtopic: Effect of Policies and Initiative (BRI) which is aimed at
Politics of Developed and Developing furthering China’s global influence
Countries on India’s interests with infrastructure projects funded
Prelims and Mains focus: about CPEC by Chinese investments all over the
and India’s concerns; about China’s Belt world.
and Road Initiative  China has committed to invest over
News: In an interesting move, cash- USD 60 billion in Pakistan as part of
strapped Pakistan has invited the US to the CPEC under which it planned to
join the China-Pakistan Economic build a number of special economic
Corridor (CPEC), an ambitious zones.
infrastructure project looked with  CPEC's potential impact on Pakistan
suspicion by the Trump administration has been compared to that of the
for being non-transparent. Marshall Plan undertaken by the
United States in post-war Europe.
About CPEC Pakistani officials predict that CPEC
 CPEC connecting China’s Xinjiang will result in the creation of upwards of
with Pakistan’s Gwadar port is 2.3 million jobs between 2015–2030,
regarded as the flagship project of the and add 2 to 2.5 percentage points to
multi-billion dollar Belt and Road the country's annual economic growth.
179
India’s objections to CPEC 2. Encirclement fears: India has alleged

1. Sovereignty claims: India objects to that China and Pakistan intended to
the CPEC project as upgrade works to develop the corridor not just for its
the Karakoram Highway are taking economic benefits, but also is
place in Gilgit Baltistan in Pakistan- motivated by the "strategic intent of
occupied Kashmir; territory that India besieging India.”
claims as its own.
180
Economic Survey on India’s economic growth

Syllabus subtopic: Indian Economy and 21 from the estimated 4.8% in the
issues relating to Planning, Mobilization of preceding year, after sharply paring its
Resources, Growth, Development and earlier projections “owing to stress in
Employment. the non-bank financial sector and
Prelims and Mains focus: about the weak rural income growth".
suggestions and observations made in the  The Economic Survey said its own
survey related to India’s economic growth projection is fraught with downside
News: The Economic Survey, authored risks such as continued global trade
by the Chief Economic Adviser (CEA), tensions, worsening US-Iran
said that the government must use its geopolitical situation, increase in short-
strong mandate to deliver expeditiously on term interest rates in advanced
reforms which will enable the economy to economies, slow progress in
strongly rebound in 2020-21. implementation of the insolvency and
bankruptcy code, and stagnation in
Background gross domestic savings rate.
 Earlier this month, the International  The overarching theme of the survey
Monetary Fund projected India’s this year is wealth creation and the
growth to accelerate to 5.8% in 2020- policy choices that enable this.
Observations made in the survey activities, especially ‘network

 China’s remarkable export products’, where production occurs
performance vis-à-vis India is driven across global value chains operated by
primarily by deliberate specialization multinational corporations.
at large scale in labour-intensive
181
 The government intervention hurts  Upside risks, such as bottoming out of
more than it helps in the efficient global trade, a turnaround in housing,
functioning of markets. Giving the favourable global sentiment toward
example of the pharmaceutical India, and better implementation of the
industry, the survey said government goods and services tax, are expected to
interventions often lead to unintended boost economic growth.
consequences such as price increases, 14. growth in merchandize exports,
when compared to markets that are 15. higher build-up of foreign exchange
unregulated. reserves, and
 The survey said the economy is set to 16. positive growth rate of GST revenue
revive in the second half of 2019-20 collection.
mainly on account of ten positive  It proposed a new programme,
factors. It listed them as: “Assemble in India", to be
1. picking up of Nifty (National Stock integrated with “Make In India" and
Exchange’s Nifty index) for the first focusing on labour-intensive exports
time this year, that could potentially create 40
2. an upbeat secondary market, million well-paid jobs by 2025 and 80
3. higher foreign direct investment million by 2030.
inflows,  India’s aspiration to become a $5-
4. build-up of demand pressure, trillion economy, depends critically
5. positive outlook for rural consumption, on strengthening the invisible hand
6. rebound of industrial activity, of markets together with the hand of
7. steady improvement in manufacturing, trust that can support markets. The
8. growth in merchandize exports, invisible hand needs to be strengthened
9. higher build-up of foreign exchange by promoting pro-business policies to
reserves, and a) provide equal opportunities for new
10. positive growth rate of GST revenue entrants, enable fair competition and
collection. ease doing business,
11. growth in merchandize exports, b) eliminate policies that undermine
12. higher build-up of foreign exchange markets through government
reserves, and intervention even where it is not
13. positive growth rate of GST revenue necessary,
collection. c) enable trade for job creation, and
d) efficiently scale up the banking sector
Suggestions given in the Survey to be proportionate to the size of the
 Reducing spending on subsidies, Indian economy.
especially on food, to create fiscal
space for additional spending in areas Way ahead
such as infrastructure development. The survey’s projected FY21 growth of
6-6.5% may prove to be optimistic unless
 Reforms in land and labour markets backed by a strong fiscal stimulus in the
may further reduce business costs. As budget and the meeting of investment
the proportion of small and marginal targets specified in the National
holdings is significantly large, land Infrastructure Pipeline, both by the
reform measures like freeing up land central and state governments.
markets can help farmers in improving
their income.
182
Economic Survey on entrepreneurship

Syllabus subtopic: Indian Economy and  The data showed that new firm
issues relating to Planning, Mobilization of creation in services sector (at around
Resources, Growth, Development and 85,000) was significantly higher than
Employment. that in manufacturing (a little less
that 15,000), infrastructure (about
Prelims and Mains focus: about the 5,000) or agriculture (less than
remarks made in the survey regarding 5,000).
entrepreneurship
 The entrepreneurship at the bottom of
News: The Economic Survey said that the administrative pyramid — a district
India currently ranks third globally in — had a significant impact on wealth
the number of new firms created with creation at the grassroots level. “... a
about 1.24 lakh new entities coming up in 10% increase in registration of new
2018. firms in a district yields a 1.8%
increase in GDDP (gross district
Entrepreneurship scenario in India domestic product). Thus,
 As per the Survey, new firm creation entrepreneurship at the bottom of
had gone up dramatically since 2014. the administrative pyramid — a
district — has a significant impact
 While the number of new firms in the on wealth creation at the grassroots
formal sector grew at a cumulative level.
annual growth rate of 3.8% from 2006
to 2014, the growth rate from 2014 to  Enhancing ease of doing business
2018 had been 12.2%. As a result, and implementing flexible labour
from about 70,000 new firms created laws in job-creating sectors, such as
in 2014, the number has grown by manufacturing, can create the
about 80% to about 1,24,000 new maximum number of jobs in districts
firms in 2018. and thereby, in the States.
 However, on a per-capita basis, India  Literacy, education and physical

had low rates of entrepreneurship in infrastructure are the other policy
the formal economy. Between the 10- levers that district and State
year period from 2006 to 2016, the administrations must focus upon to
mean number of new firms registered foster entrepreneurship and thereby,
per year per 1,000 workers was 0.10. job creation and wealth creation.
In contrast, the mean entrepreneurial
intensity for the U.K. and the U.S. was
12.22 and 12.12, respectively.
 The Survey also pointed out that in

contrast to the other countries, a
large number of India’s enterprises
operate in the informal economy
which was not captured in the data.
183
Economic Survey on Privatisation

Syllabus subtopic: Indian Economy and privatised CPSEs have been able to
issues relating to Planning, Mobilization of generate more wealth from the same
Resources, Growth, Development and resources.The analysis clearly affirms
Employment. privatisation unlocks the potential of
Prelims and Mains focus: about the CPSEs to create wealth.
suggestions/observations made in the
survey regarding disinvestment of CPSEs  Interestingly, according to the
News: The Economic Survey has government document, the recent
aggressively pitched for divestment in approval of strategic disinvestment in
public sector undertakings (PSUs) Bharat Petroleum Corporation Limited
(BPCL) led to an increase in value of
Observations and suggestions made in shareholders’ equity of BPCL by
the survey ₹33,000 crore compared to its peer
 The government can transfer its stake Hindustan Petroleum Corporation
in listed CPSEs to a separate Limited.
corporate entity. This entity would be
managed by an independent board  Aggressive disinvestment, preferably
and would be mandated to divest the through the route of strategic sale,
government stake in these CPSEs should be utilised to bring in higher
over a period of time. profitability, promote efficiency,
increase competitiveness and to
 This will lend professionalism and promote professionalism in
autonomy to the disinvestment management in CPSEs.
programme which, in turn, would
improve the economic performance  The focus of the strategic
of the CPSEs. disinvestment needs to be to exit from
non-strategic business and directed
 The survey analysed the data of 11 towards optimising economic potential
PSUs that had been divested from of these CPSEs, it added, highlighting
1999-2000 and 2003-04 and compared there were about 264 CPSEs under 38
the data with their peers in the same Ministries or departments.
industry.
 Analysis shows that these privatised

CPSEs, on an average, performed
better post-privatisation than their
peers in terms of their net worth, net
profit, return on assets (ROA), return
on equity (RoE), gross revenue, net
profit margin, sales growth and gross
profit per employee.
 More importantly, the ROA and net

profit margin turned around from
negative to positive, surpassing that of
peer firms, which indicates that
184
Anti-dumping duty
Syllabus subtopic: Effects of exporting the material — purified
Liberalization on the Economy, Changes terephthalic acid (PTA) — to India.
in Industrial Policy and their Effects on
Industrial Growth. Reason for abolishing anti-dumping
duty
Prelims and Mains focus: about the move  As PTA is a raw material for many
to abolish duties and its significance; about industries, there has been a persistent
dumping demand that they should be allowed to
source it at an affordable rate, even if it
News: The government’s decision to means importing it.
abolish anti-dumping duties on Purified
Terephthalic Acid (PTA) will bring  The duties had led to downstream
down manufacturing cost and manufacturers of synthetic fabrics
potentially boost exports. operating at only 70 per cent of their
actual capacity.
Background
 The anti-dumping duties, first  While India has a few domestic PTA
imposed around July 2014, levied producers like Reliance Industries and
additional charges between $27 to the Indian Oil Corporation, synthetic
$160 per metric tonne for those fabric makers have faced shortages
wishing to import PTA. of PTA on several occasions.
 Data from the Commerce Ministry What is PTA used for?

shows exports of some products made  It is a raw material for synthetic
with PTA like polyester staple fibres fibre-based clothing and certain
(used to make synthetic yarn) dropped plastic-based products.
over 35 per cent to $197 million in
2015-16 from $309 million in 2013-14.  It also follows “persistent” demand
“for quite some time” from several
 In 2018-19, India exported $320 industries to allow them to source the
million worth of this product. Exports product at a more affordable rate.
of textured yarn of polyesters dropped
19 per cent to around $680 million in Significance of the move
2015-16 from around $842 million  Easy availability of PTA at
2013-14, before growing to around competitive prices was desirable to
$832 million last financial year. unlock immense potential in the
textile sector, seen as a significant
employment generator.
About the move
 The move, announced in the Budget,  This removal of the anti-dumpting duty
does away with a previous NDA would greatly help the country to
government decision to block enhance global competitiveness,
countries like China, Taiwan, boost exports and enable domestic
Malaysia, Indonesia, Iran, Korea and manufacturers to compete with
Thailand from substantially cheaper imports.
185
What is dumping?
 Dumping is a term used in the context
of international trade. It's when a
country or company exports a
product at a price that is lower in
the foreign importing market than
the price in the exporter's domestic
market.
 Because dumping typically involves

substantial export volumes of a
product, it often endangers the
financial viability of the product's
manufacturers or producers in the
importing nation.
What Is an Anti-Dumping Duty?

An anti-dumping duty is a protectionist
tariff that a domestic government
imposes on foreign imports that it
believes are priced below fair market
value. For protection, many countries
impose stiff duties on products they
believe are being dumped in their national
market, undercutting local businesses and
markets.
186
Commission for Agricultural Costs and Price

(CACP)
Syllabus subtopic: Issues related to Direct
and Indirect Farm Subsidies and Minimum About Commission for Agricultural
Support Prices Costs and Price (CACP)
 It is an attached office of the Ministry
Prelims and Mains focus: about the of Agriculture and Farmers Welfare,
open-ended procurement policy and the Government of India.
need to review it; about CACP and its
mandate  It came into existence in January
1965.
News: As the debate surrounding the
review of open-ended procurement Composition
policy has started gaining momentum, Currently, the Commission comprises a
following a recommendation by the Chairman, Member Secretary, one
Commission for Agricultural Costs and Member (Official) and two Members
Price (CACP) to the Centre government, (Non-Official). The non-official members
several farmers and farmers’ bodies in are representatives of the farming
Punjab and Haryana have hinted that community and usually have an active
any move to stop or limit it would be association with the farming community.
opposed and resisted.
Mandate
Background  To recommend minimum support
According to CACP, the policy of open- prices (MSPs) to incentivize the
ended procurement has led to mounting cultivators to adopt modern
food stocks and adversely affected crop technology, and raise productivity and
diversification. Consequently, it asked for overall grain production in line with
a review of the open-ended policy. the emerging demand patterns in the
country. Assurance of a
What is the open-ended procurement remunerative and stable price
policy? environment is considered very
 Under it, government agencies buy important for increasing
whatever quantity of wheat and rice agricultural production and
is brought by farmers into the productivity since the market place
mandis (wholesale markets), within for agricultural produce tends to be
the stipulated time and which inherently unstable, which often inflict
conforms to fixed quality undue losses on the growers, even
parameters for Central pool. when they adopt the best available
technology package and produce
 The open-ended procurement policy is efficiently. Towards this end, MSP for
an integral part of the agricultural major agricultural products are
price support policy for the two most fixed by the government, each year,
important cereals: rice and wheat. A after taking into account the
review of it will constitute an recommendations of the
examination of its basic structure. Commission.
187
 As of now, CACP recommends
MSPs of 23 commodities, which  The government, in turn, circulates
comprise 7 cereals (paddy, wheat, the CACP reports to state
maize, sorghum, pearl millet, barley governments and concerned central
and ragi), 5 pulses (gram, tur, moong, Ministries for their comments. After
urad, lentil), 7 oilseeds (groundnut, receiving the feed-back from them, the
rapeseed-mustard, soyabean, seasmum, Cabinet Committee on Economic
sunflower, safflower, nigerseed), and 4 Affairs (CCEA) of the Union
commercial crops (copra, sugarcane, government takes a final decision on
cotton and raw jute). the level of MSPs and other
recommendations made by CACP.
How is MSP decided by the
government?  Once this decision is taken, CACP puts
 CACP submits its recommendations all its reports on the web site for
to the government in the form of various stakeholders to see the
Price Policy Reports every year, rationale behind CACP's price and
separately for five groups of non-price recommendations.
commodities namely Kharif crops,
Rabi crops, Sugarcane, Raw Jute
and Copra.
 Before preparing aforesaid five pricing

policy reports, the Commission draws
a comprehensive questionnaire, and
sends it to all the state governments
and concerned National organizations
and Ministries to seek their views.
Subsequently, separate meetings are
also held with farmers from different
states, state governments, National
organizations like FCI, NAFED,
Cotton Corporation of India (CCI),
Jute Corporation of India (JCI), trader's
organizations, processing
organizations, and key central
Ministries.
 The Commission also makes visits to

states for on-the-spot assessment of
the various constraints that farmers
face in marketing their produce, or
even raising the productivity levels of
their crops.
 Based on all these inputs, the

Commission then finalizes its
recommendations/reports, which are
then submitted to the government.
188
Kerala islands under CRZ regime

Syllabus subtopic: Conservation,  Till the 2019 notification comes into
Environmental Pollution and Degradation, effect, the 2011 notification will hold
Environmental Impact Assessment. good.
Prelims and Mains focus: about the CRZ What is the CRZ area?
regime and its significance  No new development activity will be
permitted in these islands in an area
News: As many as 2,130 backwater between High Tide Line (HTL) and
islands of Kerala, including Maradu, have 50 metres towards the landward
been brought under the Coastal side, which is the CRZ area of these
Regulation Zone (CRZ) regime thereby islands.
imposing curbs on development
activities.  The HTL is the line on the land up to
which the highest water line reaches
Background during the spring tide.
The provisions of the CRZ 2011
notification made special provisions for Islands on the CRZ list
Kerala considering the unique coastal  The islands of Mulavukad,
systems of backwaters and backwaters Chendamangalam, Kothad, Pizhala and
islands along with the space limitation in Kadamakudy of Ernakulam where
the coastal stretches of the State of Kerala. some major CRZ violations have been
reported are there in the list of 1,068
CRZ 2011 notification islands of the district.
 Within the 50 metre CRZ area of
these islands, only the repair and  The 474 islands of Alappuzha and the
reconstruction of existing dwelling 184 of Kollam are also in the list.
units of local communities will be Thiruvananthapuram has the least
permitted. number of islands, 43.
 Beyond the 50 metre limit, the local  This is for the first time that the list
communities could construct new of the Kerala islands is being drawn
dwelling units with the permission of up.
the local body.
 The list of the islands was prepared
Changes made by CRZ 2019 notification by the National Centre for Earth
 The CRZ area of these islands has been Science Studies,
reduced to 20 metres in the Thiruvananthapruam, for the Kerala
subsequent CRZ notification issued in Coastal Zone Management Authority
2019, allowing more land for (KCZMA).
construction towards the water
body. One may have to wait for some
more time for availing of the benefits
of the CRZ 2019 notification, as it is
yet to come into force.
189
Foreign Portfolio Investors ( FPIs)

Syllabus subtopic: paid to a person residing outside
 Effects of Liberalization on the that country. The withholding tax was
Economy, Changes in Industrial Policy so far allowed only until July 2020,
and their Effects on Industrial Growth. which has been extended to July 2023.
 Government Budgeting. The amendments are effective from the
next fiscal.
Prelims and Mains focus: About steps
taken to boost private investment;  For investments made by FPIs in bond
associated terms and their meaning market instruments such as
government securities, corporate
News: Finance minister took several bonds, municipal bonds, the
measures to woo foreign portfolio government has set the withholding tax
investors (FPIs) after the misstep last year rate at 5%. In its absence, the tax
on imposing a surcharge on investors would have depended on double
which were registered as a trust. taxation avoidance agreement or tax
treaties so could go up to 15%. Under
What are steps to be taken? the treaty, the tax outgo is capped at
1. withholding tax rate of 5% for FPIs 15% for the US.
investing in the bond market
2. eliminating the dividend distribution About Sovereign wealth fund
tax (DDT)  A sovereign wealth fund is a state-
3. letting FPIs claim credit in home owned investment fund that is used to
jurisdiction benefit the country's economy and
4. Full tax exemption for sovereign citizens.
wealth funds if they invest in
infrastructure and other notified  Funding comes from central bank
priority sectors. The sectors include reserves, currency operations,
roads, highway projects, ports and privatizations, transfer payments, and
water supply projects. revenue from exporting natural
resources.
Significance of the move
 The steps showcase how the  Funds tend to prefer returns over
government is seeking to tap private liquidity and are therefore more risk-
capital, especially foreign funds, to tolerant than traditional foreign
revive economic growth at a time exchange reserves.
when the government’s balance sheet
is stretched.  Acceptable investments in each SWF
vary from country to country.
 The Centre tried to pull all stops in
reaching out to foreign investors in the  Sovereign wealth funds such as Abu
budget. Dhabi Investment Authority and
Singapore’s GIC have invested billions
About Withholding tax of dollars in India, especially in
 Withholding tax is deducted at infrastructure and energy sectors. They
source, and is levied by some are considered as patient investors with
countries on interest or dividends
190
extremely deep pockets and very long-  The biggest beneficiary of
term investment horizons. eliminating DDT are foreign funds,
as they won’t just pay tax as per rates
About Dividend Distribution Tax (DDT) negotiated under various treaties but
 DDT is a tax levied on dividends that can also claim credit in their home
a company pays to its shareholders jurisdictions on tax outgo in India.
out of its profits.
What Is Foreign Portfolio Investment
 It is taxable at source, and is (FPI)?
deducted at the time of the company  FPI consists of securities and other
distributing dividends. financial assets held by investors in
another country.
 The dividend is the part of profits that  It does not provide the investor with
the company shares with its direct ownership of a company's
shareholders. assets and is relatively liquid
depending on the volatility of the
 The law provides for the DDT to be market.
levied at the hands of the company,
and not at the hands of the receiving  Along with foreign direct investment
shareholder. However, an additional (FDI), FPI is one of the common ways
tax is imposed on the shareholder, who to invest in an overseas economy. FDI
receives over Rs. 10 lakh in dividend and FPI are both important sources
income in a financial year. of funding for most economies.
Pros Cons
Feasible for retail investors No direct control/management of investments
Quicker return on investment Volatile
Highly liquid Cause of economic disruption (if withdrawn)

191
National Logistics Policy

Syllabus subtopic: Food Processing and infrastructure. According to the draft
Related Industries in India- Scope’ and policy, the Logistics Wing will “work
Significance, Location, Upstream and with the ministries of food
Downstream Requirements, Supply Chain processing industries, consumer
Management. affairs, food & public distribution
and the department of horticulture
Prelims and Mains focus: about the draft in respective states to identify key
national logistics policy: benefits and policy interventions and infrastructure
challenges in implementation enhancement to promote penetration of
cold chain facilities and adoption of
News: In her Union budget speech, the reefer (refrigerator) trucks in strategic
finance minister said the government will locations."
release the policy soon.
Benefits of the policy
Background  The upcoming national logistics policy
 India’s logistics sector has remained is expected to streamline rules and
fragmented and unregulated, despite address supply-side constraints,
its centrality to economic growth. leading to lower logistics costs and
According to a logistics policy draft greater competitiveness for Indian
released by the commerce ministry products worldwide.
in February 2019, the government
will create a single point of reference  The national logistics policy will
for all logistics and trade facilitation clarify the roles of the Union
matters, reducing logistics costs, which government, state governments and
are now estimated at 13-14% of GDP, key regulators.
to 10%.
 It will create a single-window e-
 The draft policy has sought to optimize logistics market and focus on the
the modal mix (road-60%, rail-31%, generation of employment, skills and
water-9%) to global benchmarks (road making medium and small enterprises
- 25-30%, rail - 50-55%, water - 20- competitive.
25%) and promote the development of
multi-modal infrastructure.  Many countries, including South
Korea and Singapore, came up with
 The policy also recommends setting up this kind of policy in the early 2000s.
a Logistics Wing that will be “the It covers the different types of logistics
nodal agency tasked to identify key service providers. For example, some
projects for driving first mile and last are just in freight forwarding, others in
mile connectivity and to optimize the trucking, some act as full third-party
modal mix to identify commodity and logistics providers. Typically, a policy
the corridor for the most cost-effective will categorise each of these services
mode of transport." and give minimum threshold
requirements for entering the
 Almost 25-30% of fruits and market. For a truck fleet operator, this
vegetables produced in India are could be about minimum fleet size,
wasted due to lack of cold chain
192
specifications of trucks, axle load and
carrying capacity etc.
 The policy will allow seamless multi-

modal freight transfer and make
freight movement for key
commodities cost-efficient. The
proposed policy also aims to
standardise the key elements of a
warehouse which will lead to new
demand and capacity creation of
Grade A warehouses.
Challenges in implementation
The main challenge is while some of the
subjects covered under the policy come
under the Centre, the rest are controlled by
states. The development of multi-modal
logistics parks, or rules to do with motor
vehicle movement, come under states. So,
unless there is alignment between the
Centre and the states, this policy will be
hard to implement.
193
Infrastructure Investment Trusts (InvITs)

Syllabus subtopic:
 Infrastructure: Energy, Ports, Roads,  Clause(13A) of Section 2 of the IT
Airports, Railways etc. Act defines “business trust" to mean a
 Government Budgeting trust registered as an Infrastructure
Investment Trust under the
Prelims and Mains focus: about the move Securities Exchange Board of India
to boost private InviTs and its benefits (Infrastructure Investment Trusts)
Regulation, 2014 or a Real Estate
News: Union budget proposals are set to Investment Trust under the Securities
boost investments in the infrastructure Exchange Board of India (Real Estate
space with tax exemptions for private Investment Trusts) Regulation, 2014
infrastructure investment trusts made under the Securities and
(InvITs), which have emerged as an Exchange Board of India Act, 1992,
investment route of choice for large whose units are required to be listed
institutional investors. on a recognized stock exchange in
accordance with the aforesaid
Background regulations.
 The Income Tax (I-T) Act provides
for a taxation regime for business  It is proposed to amend clause (13A)
trusts. Definition of a business trust of Section 2 of the IT Act so as to
means a trust registered as an InvIT or omit the long line relating to the
a REIT under markets regulator Sebi requirement of listing of the business
and these units need to be listed on a trust from recognised stock exchange
recognised stock exchange. in accordance with the regulations
made by the Securities Exchange
 The private unlisted InvIT regime Board of India.
was introduced by Sebi in 2019 but
did not get the same tax treatment as  This amendment will take effect from
the listed ones. April 1, 2021 and will, accordingly,
apply in relation to the assessment year
 Against this backdrop, the Finance 2021-22 and subsequent assessment
Bill 2020 said representations have years
been received stating that private
unlisted InvITs should be given the Benefits to the move
same status as public listed InvITs  The private InvIT structure, now with
with regards to tax treatments provided the tax pass through, will not just be
under the Act. attractive to investors but also for the
sponsors who are looking to divest
What did the budget propose? their infrastructure assets.
 The budget has now accorded tax
pass through status to private  Even for a sponsor, this is a good
unlisted InvITs, which were till now move, because when you transfer the
available only to publicly listed assets to a listed InvIT, you get a tax
InvITs or those InvITs that were sold deferral, which was not available in the
to a small group of investors and private InvIT structure. This is just a
subsequently listed on exchanges. transfer of assets, they are not being
194
sold, so to pay tax on such a transfer eligible infrastructure projects either
was an issue for sponsors. directly or via special purpose
vehicles (SPVs).
 It is expected to see a lot of demand in
the next 3-6 months. Even those who  The InvITs are regulated by the SEBI
were looking at listed InvITs might (Infrastructure Investment Trusts)
end up going down the private path. Regulations, 2014.
It’s a good structure and a win-win for
both investors and sponsors.
 The private InvIT will become an

attractive structure for large
investors such as pensions and
sovereigns.
About Infrastructure Investment Trusts

(InvITs)
 Infrastructure and real estate are the
two most critical sectors in any
developing economy. A well-
developed infrastructural set-up
propels the overall development of a
country. It also facilitates a steady
inflow of private and foreign
investments, and thereby augments the
capital base available for the growth of
key sectors in an economy, as well as
its own growth, in a sustained manner.
 Given the importance of these two

sectors in the country, and the paucity
of public funds available to stimulate
their growth, it is imperative that
additional channels of financing are
put in place.
 An Infrastructure Investment Trust

(InvITs) is Collective Investment
Scheme similar to a mutual fund,
which enables direct investment of
money from individual and
institutional investors in
infrastructure projects to earn a
small portion of the income as
return.
 The InvIT is designed as a tiered
structure with Sponsor setting up the
InvIT which in turn invests into the
195
Reverse Osmosis water purification technology

Syllabus subtopic: essential salts. RO while useful in
Science and Technology- Developments reducing salts does not tackle bacterial
and their Applications and Effects in agents or trace chemicals and
Everyday Life. Conservation, manufacturers often claim that additional
Environmental Pollution and Degradation, filtration is required to deliver potable
Environmental Impact Assessment. water.
prohibition and its significance; about BIS; What are BIS regulations on drinking
NGT; CPCB; water filtration technology water?
News: The Union Environment Ministry  Current BIS regulations consider 500
has published a draft notification that mg/litre—1,200 mg/l of total
effectively prohibits users from dissolved solids, which consists of
installing membrane-based water salts and some organic matter, as
purification, mainly reverse osmosis, acceptable though there is no lower
systems in their homes if the water has limit. The regulations also put the
been sourced from a supply that meets onus on commercial bottlers, who
the Bureau of Indian Standards’ make RO water, to ensure that water
drinking water norms. that is lost in the RO production
process is stored in “safe, hygienic”
Why? conditions and that a record of such
The Ministry has issued this order to water “wasted” is maintained. Makers
comply with an order of the National of such systems have to register with
Green Tribunal (NGT), which has the Central Pollution Control Board.
prohibited the use of reverse osmosis
(RO) purifiers in places where total  By June 5, 2022, RO manufacturers
dissolved solids (TDS) in the supplied can only supply home purification
water are below 500 mg per litre. systems that waste no more than 25%
of the water and these systems must be
Background able to inform consumers of the TDS
 The Water Quality Association of levels at the inlet and water outlet, the
India, which represents companies Ministry adds.
that make RO systems, had moved
the Supreme Court for a stay of the  The Delhi Jal Board, among others,
NGT’s order. claims that the water it supplies meets
BIS norms.
 The SC declined to intervene and the
NGT had directed the Environment How Does Reverse Osmosis Work?
Ministry to issue a notification that Reverse Osmosis water purification
restricted the use of water filters. process is accomplished by water pressure
pushing tap water through a semi-
Why did NGT ordered a ban on RO permeable membrane to remove
filters? impurities from water. This is a process in
The NGT had ordered a ban on RO filters which dissolved inorganic solids (such as
on the grounds that they wasted water salts) are removed from a solution (such as
and that, in the process of removing salts, water).
they often deprived drinking water of
196
A few impurities found in tap water that  It is established by the Bureau of

can be removed with Reverse Osmosis Indian Standards Act, 1986.
filtration technology:
 Fluoride  The Minister in charge of the Ministry
 Lead or Department having administrative
 Chlorine & Chlormamine control of the BIS is the ex-officio
 Pesticides President of the BIS.
 Nitrates & Sulfates
 Detergents & more  Composition: As a corporate body, it
has 25 members drawn from Central or
State Governments, industry, scientific
About Bureau of Indian Standards and research institutions, and consumer
(BIS): organisations.
 The Bureau of Indian Standards (BIS)
is the national Standards Body of India  It also works as WTO-TBT enquiry
working under the aegis of Ministry of point for India.
Consumer Affairs, Food & Public
Distribution.
197
Locust attack in Punjab

Syllabus subtopic: Major Crops - Prompt action taken
Cropping Patterns in various parts of the  As soon as swarms of locusts were
country spotted near the villages, a team
Prelims and Mains focus: about the including members from the
locust attack; threat and action taken to Agriculture Department and fire
contain it brigade was pressed into service to
News: Swarms of locusts were spotted in eliminate pests.
two border villages of Punjab’s Fazilka  About 400-500 tonnes of insecticides
district, prompting the state Agriculture were used to eliminate the locusts. The
Department to sound a high alert. boomer and tractor-mounted high
Where did the attack originate from? velocity sprayers besides fire brigade
Emanating from Pakistan, the swarms of vehicles were used to control the pests.
pests — three to four-km-long and one-  Timely action against the attack
km-wide — settled at the trees in these ensured their elimination and no
border villages. damage was caused to crops.
What is the threat?
Any failure to control the pests could lead What are Locusts?
to serious implications for agriculture Locusts, popularly known as ‘tiddi dal’,
production in India, especially in Punjab, are short-horned grasshoppers. Their
Haryana, Rajasthan and Gujarat, which appearance in winter months is a new
will ultimately hit commodity prices and phenomenon.
food security.
Were there any previous locusts attack  Localised locust breeding was
in India? controlled in 1998, 2002, 2005, 2007
 India has not witnessed any full- and 2010.
blown locust cycles after 1962.  Since 2010, the situation remained
However, during 1978 and 1993, calm and no major breeding and swarm
large-scale upsurges were observed. formation has been reported.
198
Samurai Loan
Syllabus subtopic: Effects of What would be the funds used for?
Liberalization on the Economy, Changes  The funds raised would be used
in Industrial Policy and their Effects on towards implementing systems that
Industrial Growth. would help the state-owned power
giant fund capex for installation of
Prelims and Mains focus: about the Flue Gas Desulphurization (FGD)
Samurai loans raised by NTPC and its system that helps in substantial
utility reduction of toxic sulphur oxide
(SOx) emissions.
News: India’s largest power generator
NTPC Ltd has raised a $750 million-  It would also be invested in NTPC’s
worth term loan in Japanese yen, new hydro projects as well as
claiming it to be the “largest ever” projects using ultra-supercritical
Samurai loan raised by any Asian technology, which are plants that
corporate. require less coal per megawatt-hour
and, therefore, lead to lower carbon
What are Samurai loans? emissions.
 Samurai loans allow non-Japanese
firms to tap into the investment  Finance Minister said in her Budget
capital available in Japan and speech that utilities running thermal
borrow funds in yen, which is among power plants with high carbon
the currencies with the lowest emission levels are advised to close
interest rates. those plants with emissions above
pre-set norms.
 The cross border syndicated loan
provides the borrower with capital
to either enter the Japanese market
or the ability to convert the proceeds
into the firm’s local currency for use
in existing operations.
How were the funds raised?

 The loan was raised under the
automatic route of RBI’s External
Commercial Borrowing regulations
and has been fully underwritten by the
State Bank of India in Tokyo,
Sumimoto Mitsui Banking Corporation
in Singapore and Bank of India,
Tokyo.
 The facility has a door-to-door

maturity of 11 years — the period
within which the amount would have
to be paid back — under two
tranches.
199
Declining Savings Rate

Syllabus subtopic: Indian Economy and
issues relating to Planning, Mobilization of Context: India has been witnessing a
Resources, Growth, Development and slowdown in consumption as well as
Employment savings for a while now, raising questions
Prelims and Mains focus: about the over the growth of real income in the
declining savings rate in India and its economy.
causes
Why are savings so important? What has been the trend in savings
People can use their money for either rate?
consumption or savings. Savings are an India is not alone when it comes to a
important tool to help people smoothen out declining savings rate. Brazil, China and
consumption. That is, they can use the South Africa too witnessed a substantial
savings for a rainy day. However, savings decline in gross savings as a percentage of
are also important for the overall gross domestic product (GDP) since
economy, as they help in financing 2011. The decline came amid the slowest
investments—whether they are public or growth in world trade. In India, the
private. Therefore, higher savings would savings rate as a percentage of GDP has
ideally reduce the cost of borrowing for declined by nearly 5% between 2011 and
private investments. Reduction in 2018.
government savings, deleveraging by
companies and slower growth of Why cut exemptions amid falling
household savings are driving the fall in savings?
the savings rate.  A complicated tax structure creates
inefficiency in income allocation.
200
Savings exemptions aim to promote
certain instruments when one could use
better financial instruments to save.
For now, the government has left the
option open for individuals to choose
the existing system or to opt for the
lower tax regime.
 Besides, incentivizing savings through

tax breaks is not the best approach to
encourage savings. The impact of the
proposed taxation system, however,
has to be evaluated.
Why is India’s savings rate going down?

 The fact that income has grown over
the last couple of years (albeit at a
slower rate) makes it difficult to
identify the reason for this fall. Even
consumption growth has slowed down,
which should ideally translate to higher
savings.
 One reason could be the shift towards

services consumption such as health
and education, which have become
costlier. A bigger concern is the rise in
household debt. Easy availability of
no-cost EMIs on durables could be a
big reason.
201
Quantum computing
Syllabus subtopic: Awareness in the Significance of Quantum computing for
fields of IT, Space, Computers, Robotics, India
Nano-technology, Bio-technology and  Quantum computers will open up
issues relating to Intellectual Property enormous opportunities for India,
Rights. particularly in the field of defence,
space research, weather forecasting,
Prelims and Mains focus: about the move and healthcare by crunching large
and its significance; about quantum amounts of data and solving problems
computing and its applications infinitely faster than existing
supercomputers.
News: The Union Budget 2020-21
proposal to earmark Rs.8,000 crore for
quantum computing over the next five  The quantum science and technology
years can boost critical areas of the Indian initiative in India has been broadly
economy, including space research and defined around computing,
defence capabilities. communications, and measurements.
Of these, quantum computing is
About the move expected to provide the ability to
solve hitherto intractable problems
 The quantum of money proposed for in resource optimisation, machine
the sector is almost on a par with the learning, and data security, and also
amount invested by the US to help to design new materials with
develop the technology. futuristic applications.
 However, the success of the initiative Quantum Computing: Global scenario

will depend on careful planning and  The recent advancements in the field of
implementation. Moreover, quantum computing, including IBM’s
considering that there are no private unveiling of the world’s first quantum
companies in India working on computing system for scientific and
quantum computing, the initiative, by commercial use, Google’s quantum
and large, will have to be led by state- supremacy, and Microsoft taking
run institutions. quantum computing to the cloud, have
made the world realise the possibilities
Need it can offer. Google’s 54-bit quantum
The announcement is significant as the computer took merely 200 seconds
scale of investments necessary to make for an experimental computation
headway in quantum computing is not that a supercomputer would have
possible without the support of the taken 10,000 years to solve.
government or large corporations. It
should boost attempts of domestic  Governments the world over are
technology providers, who have been keen starting to grasp the potential of the
to enter this field, but did not have the technology. China already has a
necessary scale or resources. national strategy on quantum
computing, having spent $400 million
on a national quantum lab and filing
202
twice as many patents as the US on said to “dance” in instantaneous,
quantum technology. perfect unison, even when placed at
opposite ends of the universe. This
 The US government had also seemingly impossible connection
announced a National Quantum inspired Einstein to describe
Initiative in 2019 with an outlay of entanglement as “spooky action at a
$1.2 billion ( Rs.8,500 crore). distance.”
What is quantum computing? Why do these quantum effects matter?

 Quantum computing is essentially  First of all, they’re fascinating. Even
harnessing and exploiting the better, they’ll be extremely useful to
amazing laws of quantum mechanics the future of computing and
to process information. communications technology.
 A traditional computer uses long  Thanks to superposition and

strings of “bits,” which encode either a entanglement, a quantum computer
zero or a one. A quantum computer, can process a vast number of
on the other hand, uses quantum bits, calculations simultaneously. Think of
or qubits. it this way: whereas a classical
computer works with ones and zeros, a
What's the difference? quantum computer will have the
 Well a qubit is a quantum system that advantage of using ones, zeros and
encodes the zero and the one into two “superpositions” of ones and zeros.
distinguishable quantum states. But, Certain difficult tasks that have long
because qubits behave quantumly, we been thought impossible (or
can capitalize on the phenomena of “intractable”) for classical computers
"superposition" and "entanglement." will be achieved quickly and
efficiently by a quantum computer.
 Superposition is essentially the ability
of a quantum system to be in Applications
multiple states at the same time — 1. Cybersecurity
that is, something can be “here” and 2. Drug Development
“there,” or “up” and “down” at the 3. Financial Modeling
same time. 4. Better Batteries
5. Cleaner Fertilization
 Entanglement is an extremely strong 6. Traffic Optimization
correlation that exists between 7. Weather Forecasting and Climate
quantum particles — so strong, in Change
fact, that two or more quantum 8. Artificial Intelligence
particles can be inextricably linked in 9. Solar Capture
perfect unison, even if separated by 10. Electronic Materials Discovery
great distances. The particles are so
intrinsically connected, they can be
203
204
Global Medical Data Leak

Syllabus subtopic: Basics of Cyber offering access to 6,97,89,685 images.
Security The next is Karnataka, with 1,82,865
data troves giving access to
Prelims and Mains focus: about the 1,37,31,001 images.
report: its findings and concerns
associated; about PACS  The report says that in 60 days after
the first report was put out, the
News: Greenbone Sustainable number of data troves bearing the
Resilience, a German cybersecurity firm patients’ information went up from
recently published an updated report on 6,27,000 to 1.01 million, and that the
medical data leaks. images of patients’ details rose from
105 million to 121 million.
About the report
 The first report was published in  It is a notable fact for the systems
October last year, in which Greenbone located in India, that almost 100% of
revealed a widespread data leak of a the studies (data troves) allow full
massive number of records, including access to related images.
images of CT scans, X-rays, MRIs
and even pictures of the patients. Why is it a concern?
 The leak is worrying because the
 The follow-up report, which was affected patients can include anyone
published in November, classifies from the common working man to
countries in the “good”, “bad” and politicians and celebrities. In image-
“ugly” categories based on the action driven fields like politics or
taken by their governments after the entertainment, knowledge about certain
first report was made public. ailments faced by people from these
fields could deal a huge blow to their
 India ranks second in the “ugly” image.
category, after the U.S.
 The other concern is of fake identities
Key findings of the report being created using the details,
 Medical details of over 120 million which can be misused in any possible
Indian patients have been leaked and number of ways.
made freely available on the
Internet. How was the data leaked?
 Greenbone’s original report says the
 What is even more worrying is that the leak was facilitated by the fact that the
number of data troves containing Picture Archiving and
this sensitive data went up by a Communications Systems (PACS)
significant number in the Indian servers, where these details are
context a month after Greenbone’s stored, are not secure and linked to
initial report was published. the public Internet without any
protection, making them easily
 Maharashtra ranks the highest in accessible to malicious elements.
terms of the number of data troves
available online, with 3,08,451 troves
205
 The fact that PACS servers are in the past. No report, however, has
vulnerable to attack or are accessible is dealt with the breadth and depth of the
not new information, and there have problem associated with unsecured
been a number of reports on this topic PACS servers.
About PACS 3. workstations for interpreting and

 A picture archiving and reviewing images, and
communication system (PACS) is a 4. archives for the storage and retrieval of
medical imaging technology which images and reports.
provides economical storage and
convenient access to images from  Combined with available and emerging
multiple modalities (source machine web technology, PACS has the ability
types). to deliver timely and efficient access
to images, interpretations, and related
 Electronic images and reports are data. PACS reduces the physical and
transmitted digitally via PACS; this time barriers associated with
eliminates the need to manually file, traditional film-based image retrieval,
retrieve, or transport film jackets, the distribution, and display.
folders used to store and protect X-ray
film.
 A PACS consists of four major

components:
1. The imaging modalities such as X-ray
plain film (PF), computed tomography
(CT) and magnetic resonance imaging
(MRI)
2. a secured network for the transmission
of patient information
206
Pollution by Thermal power plants

Syllabus subtopic: Conservation, Steps taken to limit air pollution
Environmental Pollution and Degradation,  To limit particulate matter, sulphur
Environmental Impact Assessment. dioxide and nitrous oxide emission
from thermal plants, India put in
Prelims and Mains focus: about the move place a phased-approach that directs
to curb air pollution from thermal power 440 coal-fired units — responsible for
plants; about NGT; CPCB about 166,000 MW of power — to put
in place measures to limit pollution
News: The Central Pollution Control by December 2022.
Board (CPCB) has pulled up 14 thermal
power plants for not complying with a  However 11 plants in a 300 km radius
December 31, 2019 deadline to limit of Delhi were to comply by December
sulphur dioxide emissions. 31, 2019 because of the poor air
quality in the city as well as the
Where are these plants located? surrounding Gangetic plain.
 These are 5 plants in Haryana, 3 in
Punjab, 2 in Uttar Pradesh, 2 in  Some of them claimed to have set in
Andhra Pradesh, 2 in Telangana and place the process for acquiring flu-gas
1 in Tamil Nadu with a total capacity desulphurisation technology where as
of approx 15 GW that have missed the others said they were yet to award
deadline. tenders. Only one of these plants has
actually implemented technology to
 The 14 plants have been given until the limit emissions.
end of this month to explain to the
CPCB why they have not complied  As per Centre for Science and
with the norms and why action should Environment (CSE) estimates, these
not be taken. norms can help reduce PM emissions
by about 35%, NOx emission by about
Background 70%, and SO2 emissions by more than
 Non-compliance by the thermal power 85% by 2026-27 against a business-as-
plants is an ongoing dispute being usual scenario with no pollution
contested at the National Green control technologies.
Tribunal through a petition filed in
April 2017. Cost of installing technology to control
toxic emissions
 There is an ongoing case in the  A latest study has estimated that it
Supreme Court regarding the would cost coal-fired power plants
extensions given to these plants. about Rs 730-860 billion to install
technology to control toxic emissions
Can CPCB punish them for violating of sulphur oxides, nitrogen oxides and
the guidelines? particulate matter from them.
The CPCB has the power to impose steep
fines or shut a unit under the provisions  On average, this could translate into an
of the Environment Protection Act, increase of about Rs 0.6 per unit of
1986. electricity for consumers. However, the
cost of not abating pollution from
207
power plants is higher and will impact
the health of millions of people across
the country, caution the authors.
 India’s environment ministry had come

out with strict emission norms for coal
power plants in December 2015
mandating them to install such
technology by December 2017, but
later the date was postponed till 2022.
 The study recommended to the

government to take strict measures in
case the power plants fail to adhere to
strict emission standards even by 2022.
208
India’s tariff policy

Syllabus subtopic: Indian Economy and sought to protect domestic industries, bred
issues relating to Planning, Mobilization of an uncompetitive manufacturing sector.
Resources, Growth, Development and Mint explains the pitfalls of protectionism.
Employment.
Prelims and Mains focus: about import Tariffs in India vis-a-vis other countries
tariff regime in India; amended proposed At 11.7%, India’s weighted average tariff
to it and its implications is much higher than that of South Korea,
News: Some of the budget proposals have the US and Japan. India was also way
the potential to revive the import behind these countries in terms of
substitution regime of the pre-1991 machinery and transport equipment
liberalization era. The old regime, which exports.
How are import tariffs expected to Customs duty exemptions are also
change? being withdrawn from 80 items that
 The 2020 Union budget proposes to were found to be outdated.
increase customs duties on imports
of a variety of items. While one set of Will duty hikes push up domestic
duty changes seeks to create a level prices?
playing field for micro small and  Yes. Import substitution forces
medium enterprises, another is for consumers to pay more for
promoting Make In India. competitively produced imports, so
that small producers, which will never
 In addition, the Customs Tariff Act, become competitive, get protection.
1975, is proposed to be amended by Prices will rise for porcelain or china
way of the Finance Bill to give the kitchenware, padlocks, brooms, hand
government the power to impose sieves, combs, vacuum flasks and
safeguard duties and tariff rate appliances such as wall fans,
quota on imports on the pretext of grinders/mixers, water heaters, ovens,
threat of injury to domestic industry. toasters, coffee/tea makers, insect
209
repellents, footwear, mattresses, dolls  India’s tariff reduction in the post-
and toys, compressors of refrigerators reforms period led to simple, average
and ACs, furniture and stationery. tariffs in 2015-16 being only about a
tenth of the level in 1990-91. Exports
 Prices will also rise where customs soared over 17 times from $18.1
exemptions have been withdrawn such billion in 1990-91 to $309 billion in
as for skimmed milk. 2014-15.
Will there be unintended consequences?

Yes. Empowering government officials to
take decisions on individual items raises
the scope for corruption and policy
errors. The outdated items on which
customs duty has been withdrawn includes
CD writers, MP3/MP4/MPEG 4 players,
pre-recorded and audio cassettes. This also
affects cassettes used by blind students and
CDs used for educational purposes.
Will officials get more power and

control?
 Yes. Like in the 1980s when
bureaucrats exercised powers to decide
duties on individual items, scope for
concentration and abuse of economic
controls has risen.
 The budget proposes to introduce a

new provision in the Customs Act,
1962, so that the Centre will have the
power to prohibit import and export
of any item. At present, it has this
power only for gold and silver. Instead,
it needs to return to the strategy of
lower, simplified and predictable
tariffs to improve the ability of
exporters to link up with evolving
global value chains.
Will the economy turn more

competitive?
 No. Being a global player and
sustaining high growth demand a
higher share of exports in global value
chains. The report of the high-level
advisory group found that with value
chains, exports and imports build
competitiveness.
210
RBI steps in to revive economy

Syllabus subtopic: Indian Economy and ratio (CRR)—which requires banks
issues relating to Planning, Mobilization of to set aside 4% of their deposits—for
Resources, Growth, Development and every new retail loan made to finance
Employment. automobiles, homes, and to small
Prelims and Mains focus: about the steps businesses. This move, while making it
taken by the MPC and their implications; attractive for banks to lend to retail and
repo rate; CRR; MPC; CPI small businesses, essentially translates
News: The Reserve Bank of India (RBI) into a short-term cut in cash reserve
stepped in to do the heavy lifting to revive ratio. This scheme will be available for
the economy, after the Union budget new loans given till 31 July.
appeared to have few measures to spur  In addition, the central bank will now
credit growth and boost demand. conduct one- year and three-year
About the RBI’s move term repo auctions to inject up to
The central bank introduced a direct Rs.1 trillion into the banking system,
incentive framework to boost credit giving lenders the opportunity to raise
growth, even as the six- member money at current rates. When viewed
monetary policy committee (MPC) kept in the context of elevated headline
benchmark rates unchanged because of inflationary pressures, this is another
uncertainty in the inflation outlook. The incentive for banks to lock medium-
repo rate, the rate at which banks term funding at current low rates.
borrow from RBI, remained unchanged at  This should encourage banks to
5.15%. undertake maturity transformation
What steps has it taken? smoothly and seamlessly so as to
 To improve credit flow, RBI augment credit flows to productive
temporarily removed the cash reserve sectors.
211
Observations made by the RBI
committee on inflation
 Given the uncertainty, MPC pegged
consumer price inflation for the first
half of FY21 at 5-5.4% as compared to
3.8-4% earlier. For the third quarter of
FY21, the forecast stands at 3.2% with
risks broadly balanced. According to
the committee, the recent increase in
prices of milk, pulses and crude oil
are likely to weigh on inflation.
 MPC also noted that the inflation

trajectory will be determined by
several factors, including the pass-
through of telecom charges, increase in
prices of drugs and pharmaceuticals
and the impact of new emission norms.
 MPC projected economic growth for

fiscal 2021 at 6%—in the range of
5.5-6% in the first half and 6.2% in
the third quarter. This is in line with
its past GDP growth projections and
that of the Economic Survey, which
has pegged growth at 6-6.5%. The
committee noted that the economy
continues to be weak and the output
gap remains negative.
212
Cancer genes mutation mapped

Syllabus subtopic: Science and Significance of the research
Technology- Developments and their  It is an exciting development.
Applications and Effects in Everyday Life. Identifying the driver gene means a
lot because that decides whether
Prelims and Mains focus: about the study doctors can do targeted treatment or go
and its significance; about cancer with traditional options like
chemotherapy. But the time taken for
News: In a series of papers published in developing a drug from identifying a
the journal ‘Nature’, scientists from gene varies. In case of ALK-1,
several international consortium have identified as the driver gene for 5-7 per
mapped the handful of genes whose cent lung cancers, the time from its
mutation causes several different kinds identification in 2006-7 to a drug was
of cancer. just five years.”
 However the path is not always as
Why is it important short. Currently, when a tumour is sent
Cancer is often said to be many diseases, for genetic analysis, there is capacity to
rather than one disease, because of the analyse about 1,000 genes in a
vastly different way that different kinds standard laboratory. Of these, less than
of cancers are known to behave. This 200 are implicated in various cancers,
mapping raises hopes of treatment of which there are medicines for less
tailored for specific cancers. than 40,.
 For more than 30 cancers we now
About the research know what specific genetic changes
 On average, cancer genomes contained are likely to happen and when these are
4-5 driver mutations when combining likely to take place. Unlocking these
coding and non-coding genomic patterns means it should now be
elements; however, in around 5% of possible to develop new diagnostic
cases no drivers were identified, tests that pick up signs of cancer
suggesting that cancer driver discovery earlier.
is not yet complete.
 About half of these mutations occurred About Cancer
in the same set of nine genes. The  Cancer is a group of diseases
scientists analysed 2,658 whole- involving abnormal cell growth with
cancer genomes and their matching the potential to invade or spread to
normal tissues across 38 tumour types other parts of the body. These
from the Pan-Cancer Analysis of contrast with benign tumors, which do
Whole Genomes (PCAWG) not spread.
Consortium of the International Cancer  Possible signs and symptoms include a
Genome Consortium (ICGC) and The lump, abnormal bleeding, prolonged
Cancer Genome Atlas (TCGA). Driver cough, unexplained weight loss, and a
genes are genes whose mutations are change in bowel movements.
linked to development of a disease,  While these symptoms may indicate
in this case cancer. cancer, they can also have other
causes. Over 100 types of cancers
affect humans.
213
214
Genome India Project

Syllabus subtopic: Achievements of About the project
Indians in Science & Technology;  The Rs 238-crore Genome India
Indigenization of Technology and Project, which will involve 20 leading
Developing New Technology. institutions including the Indian
Institute of Science (IISc) in Bengaluru
Prelims and Mains focus: about the and a few IITs, will be rolled out soon.
project and its significance
 Cleared by the Department of
News: The government has cleared an Biotechnology (under the Department
ambitious gene-mapping project that is of Science and Technology) the first
being described by those involved as the stage of the project will look at
“first scratching of the surface of the samples of “10,000 persons from all
vast genetic diversity of India”. over the country” to form a “grid” that
will enable the development of a
Background “reference genome”.
 Steps to get the project underway
started in 2017 when Infosys co-  The IISc’s Centre for Brain
founder Kris Gopalakrishnan set up the Research, an autonomous institute,
Centre for Brain Research at IISc for will serve as the nodal point of the
research in ageing and diseases such as project and its director will be the
Alzheimer’s. coordinator.
 As part of a two-pronged approach,  The project is said to be among the

Gopalakrishnan provided funding of most significant of its kind in the
Rs 275 crore for a rural pilot project in world because of its scale and the
Kolar and Tata Trusts came up with Rs diversity it would bring to genetic
75 crore to fund the corresponding studies.
urban project in Bengaluru.
 The institutions involved will work on
 The group involved in the initiative different aspects of the project,
then approached the central including providing clinical samples
government for a nationwide project and assisting with research. Some IITs
to sequence the Indian gene and push will help with new methods of
research in medicine. computation, which are essential.
 Referring to “new schemes” in the Benefits of collaborations

Budget 2020-21, the government said  To really arrive at a breakthrough with
that mapping of India’s genetic modern lifestyle diseases such as
landscape is critical for next generation cardiac diseases, diabetes or other
medicine, agriculture and for bio- mental health issues, large
diversity management. To support this collaborations were the need of the
development, it will initiate two new hour, combined with huge
national level Science Schemes, to technological and computational
create a comprehensive database. endeavours.
215
 For instance, “Nature” and its
affiliated journals reported the results
of a decade-long global collaboration
involving 1,300 scientists to map
genetic mutations that drive the
development of cancer. This is
expected to play a significant role in
reducing the mortality rate linked to
cancer.
Significance of the project

 Mapping the diversity of India’s
genetic pool will lay the bedrock of
personalised medicine and put it on
the global map.
 Considering the diversity of population

in India, and the disease burden of
complex disorders, including diabetes,
mental health, etc., once we have a
genetic basis, it may be possible to
take action before the onset of a
disease.
 Scientists linked to the Indian project

say genetic studies so far are based on
“almost 95% white caucasian
samples”. “What makes the IISc’s
pilot rural Kolar study unique is that
it is not of urban and rich or middle-
class samples, and that could
potentially have revolutionary
implications on world research.
 It is established that the first

migrations of humans were from
Africa to India, and then there were
several waves of migration that
provided vast horizontal diversity.
And, with endogamy being practiced
over many generations, across groups,
the project may help to get a sharper
understanding of diseases transmitted
genetically down the line as well as
some healthy attributes.
216
GST rates to be revised yearly

Syllabus subtopic: Indian Economy and they will not have to track rates after
issues relating to Planning, Mobilization of every GST Council meeting.
Resources, Growth, Development and
Employment.  However, there could be problem in
case there is any urgent need to revise
Prelims and Mains focus: about the move rate or fix anomalies
and its benefits; about inverted duty
structure; about GST; GST Council Background
 This is the first time that the Centre
News: GST Council, the federal indirect has spoken about going slow with the
tax body, is set to make changes in tax frequency of GST rate cuts. There
rates of goods and services a yearly affair, have been more than half a dozen
moving away from frequent rate rounds of rate cuts since the
revisions to remove ‘uncertainty’ for implementation of GST from 1 July
businesses and the government. 2017, which also impacted the Centre’s
revenue. Besides, being a sensitive
Reason behind the move issue, rate cuts would often snowball
Rate revision every three months brings in into a political issue, putting pressure
uncertainty. Frequent changes in GST on government to revise rate, ahead of
rates have led to an inverted duty the elections.
structure, where the raw materials ended
up becoming costlier than the finished  In December 2019, Finance Minister
product, in some cases which also who also heads the GST Council said
created problems with tax refunds. the government is working on
streamlining the GST regime to
Impact of frequent GST rate revisions eventually have three slabs.
 When the rate of tax of one item is
brought down, a whole lot of other  Currently, there are four key tax
ripple effects are created. With that slabs—5%, 12%, 18% and 28%.
ripple effect, refund is affected. Besides, there have also been
discussions on increasing tax rates
 As a result, businesses claimed that on some items. However, in the last
they are not able to plan how much meeting in December 2019, the
they need to keep aside for taxation in Council abstained from raising rates,
a whole year. Similarly, governments after official data showed that
(states and Centre) are not able to consumer goods output had shrunk
make an assessment of what they 18% in October, its fifth straight month
will earn from GST in the whole year. of contraction. Several state ministers
also said the time was not right for
Benefits raising GST rates.
 Yearly revision of rates is a great
approach as rates will be stable for at Inverted Tax Structure in the GST
least a year and as a result it will be regime
less cumbersome for businesses as The term ‘Inverted Tax Structure’ refers to
a situation where the rate of tax on inputs
217
purchased (i.e. GST Rate paid on inputs
received) is more than the rate of tax (i.e.
GST Rate Payable on outward supplies)
on outward supplies.
Refund in case of Inverted Duty

Structure under GST
A registered person may claim a refund of
unutilized ITC (Input tax credit) on
account of Inverted Duty Structure at the
end of any tax period where the credit has
accumulated on account of rate of tax on
inputs being higher than the rate of tax on
output supplies.
Exceptions where refund of unutilized

input tax credit shall not be allowed in
these cases:
1. Output supplies are nil rated or fully
exempt supplies except supplies of
goods or services or both as may be
notified by the Government on the
recommendations of the Council.
2. If the goods exported out of India are
subject to export duty.
3. If supplier claims refund of output tax
paid under IGST Act.
4. If the supplier avails duty drawback or
refund of IGST on such supplies.
Tax period: A tax period is a period for
which return is required to be furnished.
218
Li-ion battery
Syllabus subtopic: Science and  The cost of these imports rose from
Technology- Developments and their $383 million (Rs.2,600 crore approx)
Applications and Effects in Everyday Life. in 2016 to $727.24 million (Rs.5,000
crore approx.) in 2017, $1254.94
Prelims and Mains focus: about the million (Rs.8,700 crore) in 2018 and
working of Li-ion battery: advantages and $929 million (Rs.6,500 crore) in 2019.
disadvantages; about India’s efforts to
indigenously manufacture them
Indias efforts to manufacture Li-ion
News: The Union Science Ministry batteries
responded to a query in Lok Sabha on  To promote indigenous development
India’s import of Li-ion batteries from of such batteries, the Union Cabinet in
2016-18. 2019 approved a programme, called a
National Mission on Transformative
Background Mobility and Battery Storage in the
 Indian manufacturers source Li-ion NITI Aayog to “drive clean,
batteries from China, Japan and connected, shared, sustainable and
South Korea and the country is holistic mobility initiatives.”
among the largest importers in the
world.  Electric vehicles are expected to
account for a significant share in the
 China dominates the Li-ion battery growth of the Li-ion battery demand
market. According to a report by in India though reports say this is
BloombergNEF “.. Around three- unlikely at least until 2025, because
quarters of battery cell manufacturing electric cars are still significantly
capacity is in China, and Chinese costlier than their combustion-engine
companies have unparalleled control of counterparts. The government has
required domestic and foreign battery announced investments worth $1.4
raw materials and processing billion to make India one of the
facilities.” largest manufacturing hubs for
electric vehicles by 2040.
What figures did the ministry provide
on battery imports?  The Indian Space Research
 India has quadrupled its imports of Organisation (ISRO) manufactures
lithium-ion (Li-ion) batteries and more such batteries but volumes are limited
than tripled its import bill on the and they are restricted for use in
product, vital for powering a range of space applications.
devices from cellphones to electric
vehicles, from 2016-2018.  In June 2018, Central Electro
Chemical Research Institute (CECRI)
 175 million such batteries were in Tamil Nadu’s Karaikudi, under the
imported in 2016, 313 million in 2017, Council of Scientific & Industrial
712 million in 2018 and 450 million Research (CSIR) and RAASI Solar
from January 1, 2019, till November Power Pvt Ltd signed a Memorandum
30 of that year. of Agreement for transfer of
219
technology for India’s first lithium- lithium ion batteries is a distinct
ion (Li-ion) battery project. advantage. Electric vehicles also need
a battery technology that has a high
About Li-ion battery energy density.
Li-ion battery (abbreviated as LIB) is a
type of rechargeable battery. Lithium-  Self-discharge: One issue with many
ion batteries are commonly used for rechargeable batteries is the self
portable electronics and electric vehicles discharge rate. Lithium ion cells is that
and are growing in popularity for their rate of self-discharge is much
military and aerospace applications. lower than that of other
rechargeable cells such as Ni-Cad and
Components: NiMH forms. It is typically around 5%
 Li-ion batteries use an intercalated in the first 4 hours after being charged
lithium compound as one electrode but then falls to a figure of around 1 or
material, compared to the metallic 2% per month.
lithium used in a non-rechargeable
lithium battery.  Low maintenance: They do not
require and maintenance to ensure their
 The electrolyte, which allows for ionic performance.
movement, and the two electrodes are
the constituent components of a  Cell voltage: The voltage produced by
lithium-ion battery cell. each lithium ion cell is about 3.6 volts.
This has many advantages. Being
Working: In this, lithium ions move from higher than that of the standard nickel
the negative electrode to the positive cadmium, nickel metal hydride and
electrode during discharge and back when even standard alkaline cells at around
charging. 1.5 volts and lead acid at around 2
volts per cell, the voltage of each
lithium ion cell is higher, requiring
less cells in many battery
applications. For smartphones a single
cell is all that is needed and this
simplifies the power management.
 Load characteristics: The load

characteristics of a lithium ion cell or
battery are reasonably good. They
provide a reasonably constant 3.6
Advantages: volts per cell before falling off as the
 High energy density: With electronic last charge is used.
equipment such as mobile phones
needing to operate longer between  No requirement for priming: Some
charges while still consuming more rechargeable cells need to be primed
power, there is always a need to when they receive their first charge.
batteries with a much higher energy One advantage of lithium ion batteries
density. In addition to this, there are is that there is no requirement for this
many power applications from power they are supplied operational and ready
tools to electric vehicles. The much to go.
higher power density offered by
220
 Cost: A major lithium ion battery
 Variety of types available: There are disadvantage is their cost. Typically
several types of lithium ion cell they are around 40% more costly to
available. This advantage of lithium manufacture than Nickel cadmium
ion batteries can mean that the right cells. This is a major factor when
technology can be used for the considering their use in mass produced
particular application needed. Some consumer items where any additional
forms of lithium ion battery provide a costs are a major issue.
high current density and are ideal for
consumer mobile electronic equipment.
Others are able to provide much higher  Developing technology: Although
current levels and are ideal for power lithium ion batteries have been
tools and electric vehicles. available for many years, it can still be
considered an immature technology
Disadvantages by some as it is very much a
 Protection required: Lithium ion developing area. This can be a
cells and batteries are not as robust as disadvantage in terms of the fact that
some other rechargeable technologies. the technology does not remain
They require protection from being constant. However as new lithium ion
over charged and discharged too far. In technologies are being developed all
addition to this, they need to have the the time, it can also be an advantage as
current maintained within safe limits. better solutions are coming available.
Accordingly one lithium ion battery
disadvantage is that they require
protection circuitry incorporated to
ensure they are kept within their safe
operating limits.
 Ageing: Lithium ion batteries suffer

from ageing. Not only is this time or
calendar dependent, but it is also
dependent upon the number of charge
discharge cycles that the battery has
undergone. Often batteries will only be
able to withstand 500 - 1000 charge
discharge cycles before their capacity
falls. With the development of li-ion
technology, this figure is increasing,
but after a while batteries may need
replacing and this can be an issue if
they are embedded in the equipment.
 Transportation: This li-ion battery

disadvantage has come to the fore in
recent years. Many airlines limit the
number of lithium ion batteries they
take, and this means their
transportation is limited to ships.
221
Three-dimensional Variational Data Analysis

(3DVAR)
Syllabus subtopic: Research, USA, have jointly worked
 Conservation, Environmental Pollution on it.
and Degradation, Environmental
Impact Assessment.  Using the three-dimensional
 Achievements of Indians in Science & Variational Data Analysis (3DVAR)
Technology; Indigenization of devised by the group, the variations in
Technology and Developing New PM2.5 level were tracked and
Technology. validated during two winter seasons
between 2017 and 2019.
Prelims and Mains focus: about the new
device and its significance in forecasting Why is predicting air quality in advance
air quality difficult?
 Predicting air quality in advance over
News: A team of researchers, with any region is difficult due to the
funding from the Earth Sciences direct link between local weather
Ministry (MoES), has devised a system and the concentration of chemical
capable of almost accurately tracking gaseous matter that mix with the air.
variations in air quality in Delhi during
events of biomass burning and  Still, large uncertainties are present
correspondingly issuing timely forecasts in the prediction of atmospheric
up to 72 hours in advance. aerosols and locating the emission
inventories, and limited understanding
Background in the formation of secondary aerosols,
Every year between October and among other factors.
December, the air quality over Delhi drops
to dangerous levels, triggering respiratory-  Chemical data is needed in model
related illnesses and hitting visibility. assimilation, which has been found to
provide better outputs in terms of real-
About the new device time forecasts. Chemical data
 The newly-devised air quality assimilation can boost operational
prediction system is an upgrade over weather forecast as the variability of
the one operated by MoES, which PM2.5 over Delhi was found to be
mainly detects the presence of PM2.5 very large. Local weather also plays a
dust particles. major role in accurate forecast of
PM2.5, which has high levels of
 A team of Pune-based scientists, led uncertainties due to wind speeds at
by Indian Institute of Tropical surface and inventory chemicals.
Meteorology (IITM), along with those
from Savitribai Phule Pune University
(SPPU), Centre for Development of
Advanced Computing (C-DAC), and
researchers from Indian Institute of
Science (IISc), Bangalore, and
National Centre for Atmospheric
222
Convention on Conservation of Migratory

Species (CMS)
Syllabus subtopic: Conservation, countries. The elephant faces risks
Environmental Pollution and Degradation, particularly in neighbouring
Environmental Impact Assessment. Bangladesh and Nepal.
Prelims and Mains focus: about the move
and its benefits; about CMS; about GIB; How will this move benefit?
efforts made by India for conservation of Having the elephant and the Great Indian
migratory species Bustard in the list — more formally
News: The 13th Conference of Parties known as Appendix 1 — would coax
(COP) of the Convention on the countries neighbouring India, where wild
Conservation of Migratory Species of animals such as tigers and elephant foray
Wild Animals (CMS) is scheduled from into, to direct more resources and
February 17 to 22 in Gandhinagar, attention to protecting them. There are
Gujarat. now 173 species in the Appendix 1.
About the COP meet Migratory species in India and efforts at

 Representatives from across the conservation
world, and conservationists and  India is home to several migratory
international NGOs working in species of wildlife, including the snow
wildlife conservation, are expected to leopard, Amur falcons, bar- headed
attend the COP, which will also see geese, black-necked cranes, marine
PM Modi address the gathering via turtles, dugongs and hump-backed
video conference. India has been whales.
designated the President of the COP
for the next three years.  The Indian sub-continent is also part
of the major bird flyway network,
 India will be moving to include the i.e, the Central Asian Flyway (CAF)
Asian Elephant and the Great Indian that covers areas between the Arctic
Bustard in the list of species that and Indian Oceans, and covers at least
merit heightened conservation 279 populations of 182 migratory
measures. water bird species, including 29
globally threatened species. India has
 The list will be debated at the 13th also launched the National Action
COP of the CMS, an environment Plan for conservation of migratory
treaty under the United Nations species under the Central Asian
Environment Programme (UNEP). Flyway.
There are 130 parties to the
convention and India has been a  The Union Environment Ministry
member since 1983. reports India as having 29,964
elephants according to the Project
 It is expected that the COP will clear Elephant Census in 2017. It merits
the inclusion of the Great Indian the highest level of protection, or
Bustard and the Asian Elephant as it Schedule 1, under the Wildlife
has been vetted by technical experts Protection Act.
and reflects the consensus of several
223
 The government of India has been partners in the media as well as in the
taking necessary actions to protect corporate sector.
and conserve migratory marine
species. Seven species that include  Under this convention, migratory
Dugong, Whale Shark, Marine Turtle species threatened with extinction
(two species), have been identified for are listed on Appendix I and Parties
preparation of Conservation and strive towards strictly protecting
Recovery Action Plan. these animals, conserving or restoring
the places where they live, mitigating
About the Convention on Migratory obstacles to migration and controlling
Species (CMS) other factors that might endanger them.
 Migratory species are those animals
that move from one habitat to  Migratory species that need or would
another during different times of the significantly benefit from
year, due to various factors such as international co-operation are listed
food, sunlight, temperature, climate, in Appendix II of the Convention.
etc. The movement between habitats,
can sometimes exceed thousands of
miles/kilometres for some migratory About Great Indian Bustard (GIB)
birds and mammals. A migratory route  A large bird of the bustard family
can involve nesting and also requires (Otididae), one of the heaviest flying
the availability of habitats before and birds in the world. It inhabits dry
after each migration. grasslands and scrublands on the
Indian subcontinent; its largest
 In order to protect the migratory populations are found in the Indian
species throughout their range state of Rajasthan.
countries, a Convention on
Conservation of Migratory Species  Conservation status: listed as
(CMS), has been in force, under the critically endangered species on the
aegis of United Nations Environment International Union for Conservation
Programme (UNEP). of Nature’s (IUCN) Red List of
Threatened Species.
 Also referred to as the Bonn
Convention, it provides a global  Threats: Habitat loss and
platform for the conservation and degradation appear to be the primary
sustainable use of migratory animals causes of decline. Ecologists have
and their habitats and brings together estimated that approximately 90
the States through which migratory percent of the species’s natural
animals pass, the Range States, and geographic range, which once spanned
lays the legal foundation for the majority of northwestern and west-
internationally coordinated central India, has been lost, fragmented
conservation measures throughout a by road-building and mining activities
migratory range. and transformed by irrigation and
mechanized farming. Many croplands
 The convention complements and co- that once produced sorghum and millet
operates with a number of other seeds, on which the great Indian
international organizations, NGOs and bustard thrived, have become fields of
sugarcane and cotton or grape
224
orchards. Hunting and poaching have conservation program to protect the
also contributed to the decrease in great Indian bustard, along with the
population. These activities, combined Bengal florican (Houbaropsis
with the species’s low fecundity and bengalensis), the lesser florican
the pressure of natural predators, (Sypheotides indicus), and their
have left the great Indian bustard in a habitats from further declines. The
precarious position. program was modelled after Project
Tiger, a massive national effort
 In 2012 the Indian government initiated in the early 1970s to protect
launched Project Bustard, a national the tigers of India and their habitat.
225
Solar Orbiter Mission

particles emitted by the sun that
Syllabus subtopic: Awareness in the reach across our solar system.
fields of IT, Space, Computers, Robotics,
Nano-technology, Bio-technology and
issues relating to Intellectual Property  It will take Solar Orbiter about two
Rights. years to reach its highly elliptical
orbit around the sun. Gravity
Prelims and Mains focus: about the assists from Earth and Venus will
mission and its significance; about Ulysses help swing the spacecraft out of the
and Parker missions; about Heliosphere ecliptic plane, or the space that aligns
with the sun's equator, so it
News: The Solar Orbiter spacecraft was can study the sun's poles from
launched from Cape Canaveral (USA) on above and below.
a United Launch Alliance Atlas V 411
rocket and is on a 10-year voyage.
 Solar Orbiter also has a seven-year
Background mission and will come within 26
This follows the Ulysses million miles of the sun. It will be
spacecraft, another collaboration able to brave the heat of the sun
between ESA and NASA that launched because it has a custom titanium
in 1990 and also flew over the sun's heat shield coated in calcium
poles. Ulysses completed three passes of phosphate so that it can endure
the sun before its mission ended in 2009, temperatures up to 970 degrees
but its view was limited to what it could Fahrenheit.
see from the sun's equator.
About the Space orbiter mission What’s so special about the mission?
 The mission, which is a joint  This is the first mission that will
collaboration between NASA and provide images of the sun's north
the European Space Agency set off and south poles using a suite of six
on a blazing hot journey to the instruments on board that will
sun to take the first close-up look at capture the spacecraft's view.
the star's polar regions, a
mission expected to yield insight
into how solar radiant energy  Up until Solar Orbiter, all solar
affects Earth imaging instruments have been
within the ecliptic plane or very
 Solar Orbiter is equipped with ten close to it. Now, we'll be able to look
instruments that can capture down on the sun from above.
observations of the sun's corona
(which is its atmosphere), the poles Significance of the mission
and the solar disk. It can also use its  Understanding the sun's magnetic
variety of instruments to measure field and solar wind are key because
the sun's magnetic fields and solar they contribute to space weather,
wind, or the energized stream of which impacts Earth by interfering
with networked systems like GPS,
226
communications and even and magnetic fields at the sources of
astronauts on the International the solar wind; and exploring
Space Station. The sun's magnetic mechanisms that accelerate and
field is so massive that it stretches transport energetic particles.
beyond Pluto, providing a pathway
for solar wind to travel directly  Together, the missions can help
across the solar system. unlock the mysteries of the sun and
provide more data to researchers than
 Observations of the poles either could accomplish on its own.
could explain why the sun's Parker can sample particles coming
magnetic field changes, alternating off the sun up close, while Solar
over an 11-year period. When the Orbiter will fly farther back to
magnetic field is active, it produces capture more encompassing
dark sunspots on the sun's surface, observations and provide broader
and then there are calmer periods context.
with less activity.
 At times, the spacecraft will both
 Solar Orbiter's observations of the align to take measurements of the
poles could also lead to better solar wind or magnetic field.
predictions of space
weather because it can provide a About Heliosphere
better view of the magnetic field.
 Solar Orbiter Mission addresses
 The poles are particularly a central question of
important for the scientists to be heliophysics: How does the Sun
able to model more accurately. For create and control the constantly
forecasting space weather events, changing space environment
scientists need a pretty accurate throughout the solar system?
model of the global magnetic field of
the sun.  The Sun creates what’s known as
the heliosphere — a giant bubble of
Cooperation with Parker Mission charged particles and magnetic
 The Space Orbiter mission will work fields blown outward by the
in tandem with NASA's Parker Sun that stretches more than twice
Solar Probe, which is currently the distance to Pluto at its nearest
orbiting the sun on a seven-year edge, enveloping every planet in
mission and just completed its fourth our solar system and shaping the
close approach of the star. space around us.
It launched in August 2018 and
will eventually come within four  To understand it, Solar Orbiter will
million miles of the sun -- travel as close as 26 million miles
the closest a spacecraft has ever from the Sun, inside the orbit of
flown by our star. Mercury. There, it will measure the
magnetic fields, waves, energetic
 The Parker probe is tracing the flow particles and plasma escaping the
of energy that heats and Sun while they are in their pristine
accelerates the sun's corona and state, before being modified and
solar wind; determining the mixed in their long journey from the
structure and dynamics of the plasma Sun.
227
Indian pilots begin astronaut training in Russia

Syllabus subtopic: designed for parabolic flights of
 Achievements of Indians in Science & trainee astronauts and space
Technology; Indigenization of tourists. The candidates will also be
Technology and Developing New trained to take appropriate actions
Technology. during emergencies — for example
 Awareness in the fields of IT, Space, should the spacecraft make an
Computers, Robotics, Nano- abnormal landing in (unplanned)
technology, Bio-technology and issues climate and geographic zones.
relating to Intellectual Property Rights.
 Much of the training will take place at
Prelims and Mains focus: about the the GCTC facilities. The full
highlights of the training programme; programme includes basic or generic
about Gaganyaan mission and its astronaut training followed by
significance activities specific to the first Indian
human space mission, Gaganyaan.
News: The four Indian pilots chosen as
candidate-astronauts began their 12-  The four candidates are fighter pilots
month training at the Gagarin Research from the Indian Air Force and were
and Test Cosmonaut Training Centre chosen from among hundreds of
(GCTC) in Moscow, Russian space applicants over the last few months. At
business company Glavkosmos has the end of all training modules in India
announced. and Russia, one or two of the four will
be finally named to circle the earth in
Background the first crewed Gaganyaan, which is
In June 2019, the Human Space Flight planned around 2022.
Centre of the Indian Space Research
Organisation and the Russian
government-owned Glavkosmos signed a
contract for the training, which includes
Russian support in the selection of
candidates, their medical examination, and
space training.
About the training programme

 The 12-month training programme
includes comprehensive and
biomedical training of the Indian
candidates, combined with regular
physical practices. They will study in
detail the systems of the Soyuz
manned spaceship, as well as be
trained in short-term weightlessness
mode aboard the Il-76MDK aircraft.
 The Il-76MDK is an Ilyushin-78

military transport plane specially re-
228
RBI to set up new umbrella entity (NUE)

Syllabus subtopic: Indian Economy and  As per the RBI, no single promoter or
issues relating to Planning, Mobilization of promoter group should have more
Resources, Growth, Development and than 40 per cent investment in the
Employment. capital of the entity.
Prelims and Mains focus: about the  The promoters should upfront
functions and eligibility criteria for setting demonstrate capital contribution of
up of NUEs; other guidelines issued by not less than 10 per cent — Rs 50
RBI crore — at the time of making an
application for setting up of the entity.
News: The Reserve Bank of India (RBI)
has proposed to set up a new pan-India  The promoter or the promoter group
new umbrella entity (NUE) or entities shareholding should be diluted to a
focussing on retail payment systems minimum of 25 per cent after 5 years
with a minimum paid-up capital of Rs of the commencement of business.
500 crore.
 A minimum net worth of Rs 300
Functions of the new entity crore should be maintained always.
 The proposed entity will set up,
manage and operate new payment  The entity eligible to apply as promoter
systems especially in the retail space or the promoter group for the NUE
comprising of, but not limited to should be ‘owned and controlled by
ATMs, white label PoS, Aadhaar- residents’ with 3 years’ experience in
based payments and remittance the payments ecosystem as Payment
services, develop payment methods, System Operator (PSO) or Payment
standards and technologies, monitor Service Provider (PSP) or Technology
related issues and internationally, take Service Provider (TSP).
care of developmental objectives like
enhancement of awareness about the  The shareholding pattern should be
payment systems. diversified. Any entity holding more
than 25 per cent of the paid-up
 It will operate clearing and capital of the NUE will be deemed to
settlement systems, identify and be a promoter.
manage relevant risks such as
settlement, credit, liquidity and Regulations for setting up of NUEs
operational and preserve the integrity  The NUE should conform to the
of the system, monitor retail payment norms of corporate governance along
system developments and related with ‘fit and proper’ criteria for
issues in the country and persons to be appointed on its board.
internationally to avoid shocks, frauds
and contagions that may adversely  The RBI retains the right to approve
affect the system and the economy in the appointment of directors as also
general. to nominate a member on the board
of the NUE.
Eligibility criteria to apply as
promoter/promoter group
229
 The application for setting up the
NUE should contain a detailed
business plan covering the payment
systems proposed to be set-up or
operated along with other documents
to duly establish its experience in the
payments ecosystem.
 A proposed organisational strategy in

terms of fulfilling its responsibility as
an umbrella entity should also be given
in the business plan. Such an entity
will be a company incorporated in
India under the Companies Act,
2013. The Company may be a ‘for-
profit’ or a Section 8 company as
may be decided by it.
230
Sovereign Credit Rating

Syllabus subtopic: Indian Economy and What Is a Sovereign Credit Rating?
issues relating to Planning, Mobilization of 1. A sovereign credit rating is an
Resources, Growth, Development and independent assessment of the
Employment. creditworthiness of a country or
sovereign entity.
sovereign credit ratings and their 2. Sovereign credit ratings can give
significance investors insights into the level of
risk associated with investing in the
News: Global ratings agency Standard debt of a particular country, including
and Poor’s affirmed India’s sovereign any political risk.
rating at ‘BBB-’ with stable outlook.
3. At the request of the country, a credit
Reason rating agency will evaluate its
 According to S&P, despite a notable economic and political environment
deceleration in India’s economy in to assign it a rating.
recent quarters, its structural growth
outperformance remains intact. Real 4. Obtaining a good sovereign credit
GDP growth is therefore likely to rating is usually essential for
gradually recover toward longer- developing countries that want access
term trend rates over the next two to to funding in international bond
three years. markets.
 It expects the economic growth rate to Credit Rating Agencies

improve to 6 per cent during 2020-21, The global credit rating industry is highly
7 per cent in the next fiscal and 7.4 per concentrated, with three agencies—
cent thereafter. Moody's, Standard & Poor's and
Fitch—controlling nearly the entire
Suggestions/warnings market. Together, they provide a much-
 Supportive monetary, fiscal, and needed service for both borrowers and
cyclical factors should support lenders, as well as to lenders.
economic recovery, with real GDP
growth averaging 7.1 per cent in fiscals  Standard & Poor's gives a BBB- or
2020-2024. higher rating to countries it considers
investment grade, and grades of BB+
 The agency, however pointed out that or lower are deemed to be
India’s fiscal position remains speculative or "junk" grade.
precarious, with elevated fiscal
deficits and net government  Moody’s considers a Baa3 or higher
indebtedness. rating to be of investment grade, and a
rating of Ba1 and below is speculative.
What does BBB rating mean?
‘BBB’ rating refers to adequate capacity of
the rated entity to meet its financial
commitments.
231
Future of Earth, 2020 report

Syllabus subtopic: Conservation, amounts of stored carbon from affected
Environmental Pollution and Degradation, ecosystems, and at the same time
Environmental Impact Assessment. intensify water crises and/ or food
scarcity. The loss of biodiversity also
Prelims and Mains focus: about the weakens the capacity of natural and
report and its key highlights agricultural systems to cope with
climate extremes, increasing our
News: “The Future of Earth, 2020” report vulnerability to food crises.
was released in Bengaluru by the South
Asia Future Earth Regional Office, B. Climate change
Divecha Centre for Climate Change, and  Over the last 18 months, major
the Indian Institute of Science. assessments by the
Intergovernmental Panel on Climate
About the report Change (IPCC), the US National
 As many as 222 leading scientists Climate Assessment, and the
from 52 countries conducted the Intergovernmental Science-Policy
survey by Future Earth, an Platform on Biodiversity and
international sustainability research Ecosystem Services, have all argued
network. The Bengaluru launch was that time is running out to reduce
among similar parallel ones across greenhouse gas emissions.
other parts of the world scheduled
between February 13 and 21.  This has inspired declarations of a
climate crisis or climate emergency by
 The report was prepared with the aim the leaders of more than 700 cities,
of reducing carbon footprint and States and governments. Yet, during
halting global warming below 2 2019, the concentration of carbon
degree Celsius by 2050. dioxide in the atmosphere reached
more than 415 ppm, and the five
Key highlights of the report years from 2014 to 2018 were the
A. Global risks warmest recorded over land and
It has listed five global risks that have the ocean since 1880.
potential to impact and amplify one
another in ways that may cascade to C. Populism
create global systemic crisis. Right-wing populism, a breed of politics
These 5 global risks are: that exploits people’s fears during times of
1. failure of climate change mitigation economic decline and growing inequality,
and adaptation; and that focuses on nationalist tendencies
2. extreme weather events; to clamp down on borders and reject
3. major biodiversity loss and ecosystem immigrants, is on the rise around the
collapse; world. This often leads to a denial of
4. food crises; and climate change facts or impacts.
5. water crises,
D. Biodiversity
How are these global risks interrelated?  Humans have now “significantly
 Extreme heat waves can accelerate altered” 75% of Earth’s land area;
global warming by releasing large
232
about a quarter of species in assessed government rules and policies can be
plant and animal groups are threatened. helpful.
 In 2018, the world’s last male

northern white rhino died in his
Kenyan enclosure, while the
Brazillian blue parrot, Spix’s
Macaw, was declared extinct in the
wild.
 Reversing the trends of loss of life on

Earth will require some new ways of
thinking about conservation.
E. Food crisis
Strains on food production are expected to
increase, as a result of various forces
including climate change, biodiversity
loss, and a global population on the rise.
F. False news
 False news travels six times faster and

can reach up to 100 times more people.
 The flow of information in the world is

changing, as today, around half of the
planet’s 7.6 billion people are online,
deeply influenced by social media,
search engines and e-commerce
algorithms.
 These digital platforms tend to favour

the spread of information designed to
engage with emotion over reason, can
cause the propagation of “fake
news”, and can lead to social harms
like an erosion of trust in vaccines.
Efforts of India in environment

education
The National Education Policy (NEP)
will address the question of
environmental health and education at
the school level. Children in the last four
years of secondary education will have a
reasonable grounding to be sensitive
towards the environment. Without it no
233
Energy Neutral railway station

Syllabus subtopic: Science and  In addition, the generation of clean
Technology- Developments and their solar energy will help reduce carbon
Applications and Effects in Everyday Life. footprints to the tune of 1,170 tonnes
per annum.
concept and its benefits; about SPV cells;  All the power needs of 13 stations like
India’s efforts at tapping solar energy lighting, fans, pumps and other
electrical appliances are met through
News: South Central Railway (SCR) has the solar energy generated and this is
become the first on Indian Railways to bringing down the net traditional
come up with the concept of ‘Energy energy consumption at these stations
Neutral’ railway stations. to zero.
What does it mean? About the Energy neutral station

The SCR is now capable of meeting concept
100% energy requirements by tapping  This eco-friendly concept is based on
natural solar power through Solar Photo the principle of developing railway
Voltaic (SPV) panels commissioned on station buildings with total solar
about13 station buildings. The total power tapping capabilities
capacity of solar panels installed at the 13 commensurate to exact load
‘energy neutral’ stations is 99 kWp with requirements of those particular
the cost incurred, being around Rs.50 lakh. stations.
What are the benefits?  This is done by installation of SPV

 The anticipated energy generation from panels on the rooftops which are
these stations comes to around 1.3 lakh integrated with the on-grid or off-
units annually and it is expected that grid solar energy plants to derive
solar power will also lead to savings power supply to the entire station.
of Rs.13 lakh each year.
234
Adjusted Gross Revenue (AGR) dues of telecos

Syllabus subtopic: Effects of  The dispute between DoT and the
Liberalization on the Economy, Changes mobile operators was mainly on the
in Industrial Policy and their Effects on definition of AGR. The DoT argued
Industrial Growth. that AGR includes all revenues (before
discounts) from both telecom and non-
Prelims and Mains focus: about the SC telecom services. The companies
judgement and its implication; about AGR claimed that AGR should comprise just
dispute the revenue accrued from core services
and not dividend, interest income or
News: The Supreme Court pulled up profit on sale of any investment or
mobile service operators and the fixed assets.
department of telecommunications (DoT)
for failing to comply with its verdict,  In 2005, Cellular Operators
which mandated telecom companies to Association of India (COAI)
pay the adjusted gross revenue (AGR) challenged the government’s definition
dues of over Rs.1 trillion to the DoT by for AGR calculation.
23 January, 2020.
 In 2015, the TDSAT (Telecom
Background Disputes Settlement and Appellate
 The telecom sector was liberalised Tribunal) stayed the case in favour of
under the National Telecom Policy, telecom companies and held that AGR
1994 after which licenses were issued includes all receipts except capital
to companies in return for a fixed receipts and revenue from non-core
license fee. To provide relief from the sources such as rent, profit on the sale
steep fixed license fee, the of fixed assets, dividend, interest and
government in 1999 gave an option miscellaneous income.
to the licensees to migrate to the
revenue sharing fee model.  However, setting aside TDSAT’s
order, Supreme Court on October 24,
 Under this, mobile telephone operators 2019 upheld the definition of AGR
were required to share a percentage as stipulated by the DoT.
of their AGR with the government as
annual license fee (LF) and spectrum Why is it important?
usage charges (SUC). License  The definition of AGR has been such
agreements between the Department of a contentious issue because it has
Telecommunications (DoT) and the huge financial implications for both
telecom companies define the gross telcos and the government. The
revenues of the latter. AGR is then revenue shared by telcos with the
computed after allowing for certain government goes into the
deductions spelt out in these license consolidated fund of India. It was
agreements. The LF and SUC were set estimated, after the SC’s judgment,
at 8 per cent and between 3-5 per cent that the telecom operators owe the
of AGR respectively, based on the government about ₹92,000 crore in
agreement. back charges, interest and penalties on
license fee alone.
235
 While the government has been (average revenue per user).
deprived of the extra revenue, the Implications of the SC judgement
financial implications for telecom The development comes as a fresh blow
companies — who now have to cough for Vodafone Idea—once India’s largest
up overdue amounts piled up for years telco by subscriber base. The company is
— are serious too. Especially at the in a parlous state after an over-three-year
current juncture, when profits for battle in the hyper-competitive telecom
telcos are under pressure from severe sector, which has shrunk its revenue
competition and the falling ARPUs streams and saddled it with debt.
236
Indian pangolin
Syllabus subtopic: Conservation,  World Pangolin Day, celebrated on
Environmental Pollution and Degradation, the third Saturday in February, is an
Environmental Impact Assessment. international attempt to raise
awareness of pangolins and bring
Prelims and Mains focus: about Indian together stakeholders to help protect
Pangolin: features, threat and conservation these unique species from extinction.
efforts.
News: Scientists have, for the first time,

radio-tagged the Indian pangolin, an
endangered animal (IUCN status: EN)
that is rarely sighted in forests.
About Radio-tagging technique

 Radio-tagging involves attaching a
transmitter to an animal to monitor
its movements. Several wild animals
— tigers, leopards and migratory birds
— have been tagged over decades. Conservation efforts in India
 The Special Task Force of the Madhya
 Researchers say tagging the animal Pradesh Forest Department has been
will help understand the habits of the actively working to curb wildlife
reclusive, nocturnal animal. poaching in the State. In recent years,
it has successfully busted pangolin-
About Indian Pangolin and threats smuggling syndicates that involved
related to their survival poachers and smugglers from more
 The Indian pangolin, which resembles than nine States.
an ant-eater but dons a thick scaly
skin, is hunted for meat and use in  In anti-poaching operations, during
traditional Chinese medicine. which pangolin scales are recovered,
those animals are already dead. Where
 Out of the eight species of pangolin, live pangolins are involved, globally
the Indian Pangolin and the Chinese there is about 50% death rate among
Pangolin are found in India. Both released pangolins. Given that several
these species are listed under pangolins are rescued in the central
Schedule I Part I of the Wildlife Indian landscape, this new initiative by
(Protection) Act, 1972. the Madhya Pradesh Forest
Department and the Wildlife
 Pangolins are among the most Conservation Trust (WCT) is to ensure
trafficked wildlife species in the better survival rates of these released
world. The International Union for individuals in the wild, and thus have a
the Conservation of Nature (IUCN) positive impact on the population of
says these toothless animals have seen this endangered species.
a rapid reduction in population. The
projected population declines range
from 50% to 80 % across the genus.
237
Bank Frauds in India

Syllabus subtopic: Indian Economy and Context: Banking frauds have been rising.
issues relating to Planning, Mobilization of During the first six months of this fiscal,
Resources, Growth, Development and frauds of Rs.1 lakh and above, as reported
Employment. by commercial banks, touched Rs.1.13
Prelims and Mains focus: about the trillion. This, after frauds worth Rs.41,167
frauds in Indian banks: causes and link to crore had been reported in 2017-18.
slow growth
By how much have bank frauds risen? points out, “It has been observed that
 As the above chart shows, total bank frauds are, at times, detected in banks
frauds reported in 2015-16 stood at long after their perpetration." What this
Rs.18,699 crore. In a matter of four basically means is that frauds reported
years, they have jumped more than six- during the current fiscal didn’t
fold. By the time we get around to the necessarily happen during this year.
end of this fiscal, the amount involved
in frauds would be Rs.1 trillion higher Why has there been a jump in bank
than in 2015-16. frauds?
There is no straight answer to this. But as
 An important distinction needs to be John Kenneth Galbraith wrote in The
made here. As the Reserve Bank of Great Crash, 1929: “At any given time
India (RBI) Master Circular on frauds there exists an inventory of undisclosed
238
embezzlement. This inventory—it should have led to these people defaulting on
perhaps be called the bezzle—amounts at loans after siphoning off the money. This
any moment to many millions of dollars. has only incentivized fraudsters to become
In good times, people are relaxed, trusting, bolder. Only proper investigations leading
and money is plentiful... (so) the rate of to convictions can stop this practice.
embezzlement grows, the rate of discovery
falls off, and the bezzle increases rapidly.
In depression all this is reversed." As per
this theory, bank frauds have been
building up over the years and there has
been an explosion in their recognition
this year.
What’s the link between frauds and

slow growth?
Growth during the first half of FY20 fell to
4.8%. According to Galbraith, the rate of
discovery of what he calls bezzle rises in a
depression. While India’s economy is
nowhere near a depression, it is in the
middle of a slowdown. This is why fraud
recognition has increased. A rapid build-up
in fraud recognition doesn’t mean the
system has turned more corrupt this year.
Why has there been a build-up in

frauds?
The frauds being recognized now were
committed earlier. Why was there a jump
in frauds at all? As Urjit Patel, RBI
governor from September 2016-December
2018, said in a speech in March 2018:
“Indeed, RBI data on banking frauds
suggests that only a handful of cases over
the past five years have had closure, and
cases of substantive economic significance
remain open. As a result, the overall
enforcement mechanism… is not
perceived to be a major deterrent to frauds
relative to economic gains from fraud."
What does this tell us about bank

frauds?
The RBI top brass has openly talked about
big businessmen siphoning off money
from different projects. This was money
they had borrowed from banks to finance
the projects. Such incidents haven’t been
properly investigated over the years and
239
GISAT-1 satellite to be launched

Syllabus subtopic: About the satellite
 Awareness in the fields of IT, Space,  GISAT-1 — Geo Imaging Satellite
Computers, Robotics, Nano- — will be the first of two planned
technology, Bio-technology and issues Indian EO spacecraft to be placed in
relating to Intellectual Property Rights. a geostationary orbit of around
 Achievements of Indians in Science & 36,000 km. It will apparently be in a
Technology; Indigenization of fixed spot looking over the Indian
Technology and Developing New continent at all times.
Technology.
 All Indian EOs have been placed so far
Prelims and Mains focus: about GISAT- in a 600-odd-km orbits and circle the
1: its orbit and significance; about earth pole to pole. GISAT-1 will be
Gaganyaan; ISRO launched from Sriharikota satellite
launch centre.
News: Indian Space Research
Organisation (ISRO) is preparing to  With this satellite, which has high-
launch GISAT-1, a new earth resolution cameras, scientists can
observation (EO) satellite, in the first keep a constant watch on India’s
week of March 2020. borders, monitor any changes in the
geographical condition of the country,
etc.
240
Wayanad Wildlife Sanctuary (WWS)

Syllabus subtopic: Conservation, Conservation Authority (NTCA), better
Environmental Pollution and Degradation, conservation and management of the
Environmental Impact Assessment. tiger population and help generate more
Prelims and Mains focus: about the employment opportunities failed to
proposal of notifying as a tiger reserve: impress the State authorities.
arguements for and against; about NTCA
News: The Wayanad Wildlife Sanctuary Arguement against the proposal
(WWS), though home to more than half  Kerala Chief Minister, who chaired the
the number of tigers present in Kerala, meeting, flagged the issue of human-
may not be notified as a tiger reserve as wildlife conflicts in the district.
the proposal lacks public support. Referring to the public protests that
were staged in Wayanad earlier against
Background the proposal, the CM expressed
The ‘Status of Tigers in India’ report concern over the possible impact of the
released in 2019 had estimated the tiger proposal. Any such proposal should be
population of Wayanad as between 75 and implemented only after holding wide
80 individuals. Periyar Tiger Reserve, public consultations.
the first one in Kerala, has an estimated
population of 30 to 35 big cats, whereas  Cattle lifting by the ailing tigers and
Parambikulam, the second reserve, has a their straying into human habitations
population of 20 to 25 tigers. had often triggered widespread
public protests in the district. The
Proposal rejected department had to backtrack from its
 The attempts of the Kerala Forest earlier attempts to notify the reserve
Department to push forward the following stiff public resistance.
proposal for notifying the sanctuary
as the third tiger reserve in the State  There were speculations that the
came a cropper at the recently held notification would bring in stringent
State Wildlife Advisory Board. restrictions on development activities
Citing the public resistance against in the district, though the department
the earlier attempts, the board tried to counter the campaign.
rejected the proposal.
Support from NTCA
 Piloting the Wayanad proposal, the  Each year, the NTCA supports the
department officials pointed out that tiger reserves by funding the
more than half of the tiger population proposals put forward through its
in the State was found in Wayanad. Annual Plan of Operations. The
There were five tiger reserves in the authority also supports the reserves for
neighbouring States that share implementing the tiger conservation
boundaries with Wayanad. plan.
Arguements put foward in favour of the  While Periyar Tiger Reserve gets an
proposal annual support of around Rs. 9 crore,
The arguments of the officials that the the Parambikulam TR gets around Rs.6
notification would ensure financial aid crore from the authority.
from the Centre and the National Tiger
241
Kashi Mahakal Express

Syllabus subtopic: Infrastructure: Energy, IRCTC’s first overnight, long-
Ports, Roads, Airports, Railways etc. distance train to run on a regular
Prelims and Mains focus: about the train: basis.
route, significance etc; about jyotirlingas  Apart from selling tickets to the train,
News: PM Modi flagged off the latest IRCTC has also worked out packages
religion-themed train, the Kashi Mahakal that involve taking pilgrims on all-
Express in Varanasi, the PM’s inclusive tours of Kashi Dharshan,
constituency. Ayodhya, Prayag visit, trips to the
jyotirlingas (temples) including hotel
Details of the train stays and the like. There will be
 The Lord Shiva-themed train packages for cities and religious sites
connects, for the first time, places covered by the train such as Kashi,
related to three jyotirlingas— Omkareshwar, Mahakaleshwar,
Omkareshwar near Indore, Bhopal, Sanchi, Ujjain, Bhimbetka,
Mahakaleshwar in Ujjain, and Kashi Ayodhya and Prayag. The packages,
Vishwanath in Varanasi. designed into various durations, cost
 The commercial run of the thrice-a- between Rs 4950 and Rs 12450 per
week train will start from February 20. person.
Railway PSU Indian Railway Catering  The train’s fare is Rs 1951 between
and Tourism Corporation (IRCTC) Varanasi and Indore. After 70 per
will be running this as the third cent of the seats are booked, there will
“corporate” train after two Tejas be an increase of 10 per cent for the
Express trains. next 20 per cent of the tickets and a
 With a side-upper berth converted further increase of 10 per cent for the
into a permanent puja place or last 10 per cent of the tickets in the
“temple” complete with pictures of dynamic fare scheme. Each ticket
Lord Shiva, incense sticks, flowers et comes with a Rs 10 lakh life
al, waiters dressed in traditional UP- insurance cover free of cost and every
style attire and a vegetarian menu, coach is fitted with six CCTV cameras
the train leaves virtually no stone for security along with two guards.
unturned to play to the theme.  Like its other two Tejas trains, this
 The train will cover 1131 km train will also not entertain any of the
between Varanasi and Indore via concessions on fare offered by
Lucknow and a distance of 1102 km Indian Railways.
between Varanasi and Indore via
Prayagraj (Allahabad) in Another religion-themed train to be
approximately 19 hours. The route of launched
the train will be via Sultanpur – This Lord Shiva-themed train will be
Lucknow/Prayagraj – Kanpur – Jhansi followed by a Ramayan-themed train to
– Bina – Sant Hiradnagar – Ujjain – be launched next month from across
Indore and back. India in a big way, marking Indian
 Railways says that there has been Railways’ major push in the religious
demands from devotees for a train tourism segment. The Ramayan Express
like this. The overnight train, which is will touch places related to the
a collection of 15 upgraded 3-AC mythology of Ram, including Ayodhya.
Humsafar type coaches, is also
242
243
Google’s Station programme

Syllabus subtopic: Awareness in the RailTel, Google’s partner in India
fields of IT, Space, Computers, Robotics, for the programme. The technology
Nano-technology, Bio-technology and giant said that through the year 2020, it
issues relating to Intellectual Property would be working with its partners
Rights. to transition existing sites so that
they could remain useful resources
Prelims and Mains focus: about the for the community.
programme and reasons for its shutdown;
about internet penetration in India  The challenge of varying technical
requirements and infrastructure
News: After five years of providing free among Google’s partners across
internet access to people in developing countries has also made it difficult for
countries, Google plans to shut down its Station to scale and be sustainable,
Station program. especially for its partners.
What was the Station programme?  Despite the shutdown, it seems Station
 The initiative saw the search giant had been widely successful. In 2018,
offer free public WiFi at 400 railway Google said Station had 8 million
stations in India and more than 5,000 monthly active users in India, with
other places around the world, people who were using the service
including in Brazil, South Africa, consuming an average of 350MB per
Mexico, Thailand and Vietnam. session at the time.
 The programme was kick-started in Initiatives by other companies

India in 2015 as a partnership Besides Google, several other tech
between Google, Indian Railways companies have tried to narrow the digital
and RailTel to bring fast, free public divide in developing countries, with some
WiFi to over 400 of the busiest finding more success than others. For
railway stations by mid-2020. example, Facebook's Free Basics
However, the company crossed that initiative was banned in India in 2016
number by June 2018, following which over net neutrality concerns.
more locations were added across the
country in partnership with Internet consumption in India
telecommunication companies, ISPs  India, specifically now has among the
and local authorities. cheapest mobile data per GB in the
world, with mobile data prices having
Why is it shutting down the reduced by 95% in the last 5 years, as
programme? per Telecom Regulatory Authority of
 Google believes that better data plans India (TRAI) in 2019. Today, Indian
and improving mobile connectivity users consume close to 10 GB of data,
have made it “simpler and cheaper” each month, on average.
for users to get online.  According to a TRAI report, globally
there is one WiFi hotspot for every 150
 However, users in India will be able people, and in India, 8 million
to continue using the existing additional hotspots needed to be
facilities at the over 400 stations via installed to achieve the same ratio,
244
creating new market opportunities for
infrastructure providers and internet
service providers. Currently, India is
said to have only 52,000 Wi-Fi
hotspots across the country.
 Besides the Indian government’s

continuous impetus for internet
penetration through the Digital
India programme, private sector
initiatives such as Vodafone’s
SuperWi-fi coupled with the entry of
Reliance Jio 4G services have
drastically brought down the cost of
internet subscription. This has been
instrumental to the growth of internet
users in India.
245
State of India’s Birds 2020 (SoIB) report

Syllabus subtopic: Conservation,  The report raises the alarm that
Environmental Pollution and Degradation, several spectacular birds, many of
Environmental Impact Assessment. them endemic to the sub-continent,
face a growing threat from loss of
Prelims and Mains focus: about the habitat due to human activity,
report: key findings and recommendations widespread presence of toxins
including pesticides, hunting and
News: The State of India’s Birds 2020 trapping for the pet trade.
(SoIB), a new scientific report was jointly
released by 10 organisations that included  Diminishing population sizes of many
ATREE, BNHS, Foundation for birds because of one factor brings
Ecological Security, NCF, National them closer to extinction because of
Biodiversity Authority of India, National the accelerated effects of others. For
Centre for Biological Sciences, SACON every bird species that was found to be
(Salim Ali Centre for Ornithology and increasing in numbers over the long
Natural History), Wetlands International, term, 11 have suffered losses, some
WII and WWF. catastrophically.
About the report  Of 101 species categorised as being of

 The SoIB was produced using a base High Conservation Concern — 59
of 867 species (among 1,333 birds ever based on range and abundance and the
recorded in India), and analysed with rest included from high-risk birds on
the help of data uploaded by the IUCN Red List — endemics such
birdwatchers to the online platform, as the Rufous-fronted Prinia, Nilgiri
eBird. Adequate data on how birds Thrush, Nilgiri Pipit and Indian vulture
fared over a period of over 25 years were confirmed as suffering current
(long-term trend) are available only for decline, and all except 13 had a
261 species. Current annual trends are restricted or highly restricted range,
calculated over a five-year period. indicating greater vulnerability to
man-made threats.
 The report is built on a large-scale
collaborative effort between  Among widely known species, the
thousands of citizen birders and a common sparrow, long seen as
consortium of researchers across declining in urban spaces, has a stable
multiple institutions. population overall, although the data
from major cities such as Mumbai,
Key findings of the report Delhi, Kolkata, Bengaluru, Hyderabad
 Over a fifth of India’s bird diversity, and Chennai confirm the view that
ranging from the Short-toed Snake they have become rare in cities and
Eagle to the Sirkeer Malkoha, has urban areas. Among the possible
suffered strong long-term declines reasons for this is a decrease in insect
over a 25-year period, while more populations as well as nesting places,
recent annual trends point to a but there is no conclusive evidence in
drastic 80% loss among several the scientific literature on radiation
common birds.
246
from mobile phone towers playing a particularly in the past five years, calls
part. for detailed investigation.
 Peafowl (peacock), on the other hand,  From a dietary viewpoint, meat-eater

are rising in numbers, expanding their populations have fallen by half, and
range into places such as Kerala, which birds that depend on insects
is drying overall, and areas in the Thar exclusively have also suffered over the
desert where canals and irrigation have long term. But there has been some
been introduced. Stricter protection stabilisation for omnivores, seed and
for peacocks under law also could be fruit eaters in recent years. Habitat
at work. impacts have decimated ‘specialist’
birds, which need specific
 One of India’s major conservation environmental conditions to survive,
concerns, the Great Indian Bustard particularly those dependent on forests.
(GIB), is being brought back from the This is followed by declines in
brink. Having lost about 90% of its numbers of grassland, scrubland and
population and range over a five- wetland species, the researchers said,
decade period, a viable population of calling for urgent investigation into the
GIB at Jaisalmer in Rajasthan is the causes.
focus of programmes run by the
Bombay Natural History Society Suggestions given in the report
(BNHS), Wildlife Institute of India  Forward-looking actions suggested by
(WII), Birdlife International and the report include an update to the
other agencies, to eliminate the threat Red List of endangered species
of fatal collisions with power lines. published by IUCN (International
Union for Conservation of Nature)
 Raptors: Looking at the health of using the SoIB, collaborative research
avifauna based on scientific groupings by scientists and citizens aided by
such as raptors (birds of prey), policy with special emphasis on
habitat, diet, migratory status and removing gaps in data, and urgent
endemicity (exclusively found in an emphasis on habitats of species of
area), the analysis concludes that high concern, notably grasslands,
raptors overall are in decline, with scrublands, wetlands and the
‘open country’ species such as the Western Ghats.
Pallid and Montagu Harriers, White-
bellied Sea Eagle and Red-necked
Falcon suffering the most. The severe
long-term decline of vultures,
recorded and analysed for years now,
is underscored by the report.
 Migratory shorebirds, along with

gulls and terns, seem to have declined
the most among waterbirds, the report
states, consistent with population
trends among Arctic-breeding
shorebirds based on independent
assessments. Within India, the losses
suffered by resident waterbirds,
247
Steps taken by the office of Chief of Defence

Staff (CDS)
Syllabus subtopic: Various Security Force will go to the peninsula
Forces and Agencies and their Mandate. command”.
Prelims and Mains focus: about Chief of  The Andaman and Nicobar
Defence Staff: mandate and significance; Command, the first tri-services
about other initiatives in the Indian command already in place, will not be
defence sector tampered with, and will continue to
report to the Integrated Defence
News: The office of Chief of Defence Staff. While the archipelago has
Staff is working on a tentative timeline “surveillance” threat, “for the
that will see the establishment of an air peninsula, the defence of territory” is
defence command by end of the year, a the main threat.
peninsula command by 2021-end, and
the first of the theatre commands by the 4. Theatre Command
end of 2022.  By the end of the year, studies for
theatre commands will be initiated.
1. Air Defence Command The first theatre command will be
It is the first joint command to be rolled out by the end of 2022.
created and will be headed by the Indian
Air Force (IAF). A study on the air  There could be two commands, for the
defence command, being headed by the eastern and the western borders, or up
Vice Chief of the IAF, has already been to five commands, with a single
initiated and a report is expected by April command looking after the entire
10. Jammu and Kashmir border, while the
rest of the western border could be
2. Peninsula Command handled by another command.
 The peninsula command, headed by
the Navy, will be created by merging 5. Joint Training Command
the eastern and western commands Apart from these, the idea of a joint
by treating the Indian Ocean Region training command is also under
(IOR) as one entity. consideration. There is a need for a
doctrine command so that all services have
 A study on the peninsula command the same doctrine and training of personnel
will be ordered March 31, with the will also happen as per the doctrine.
report expected in three to four
months, and it “will take shape by the 6. Synergy in Acquisition of equipment
end of next year”.  While the Department of Military
Affairs, headed by the CDS as
3. Joint Commands Secretary, has exclusive rights on
 Within these commands, which will revenue acquisitions, capital
be joint commands, “not all the assets acquisitions is with the Defence
of the Navy will go to the air defence Secretary but prioritisation is with the
command and not all assets of the Air office of CDS.
248
 The procurement of 114 fighter jets
for the IAF will happen in a staggered
manner and submarines could also be
bought in similar manner.
 The second aircraft carrier for the

Navy will come in 2021 and the need
for a third carrier can be assessed after
looking at the indigenously-built
second carrier’s performance.
249
Karbis against ST status for hill Bodos in

Assam
Syllabus subtopic: Security Challenges  After the conclusion of the latest Bodo
and their Management in Border Areas pact, the Karbi Longri and North
Cachar Hills Liberation Front
Prelims and Mains focus: about the issue (KLNLF), a militant group that
and concerns raised by Karbis; about Bodo signed a ceasefire pact with the
Accord; about CAA; Assam Accord Centre in 2009, has said a “political
settlement” should be reached soon.
News: An Assam-based insurgent group
of Karbis, which signed a ceasefire  The identity of Karbis will come under
agreement with the Centre, has threat if Bodos who live in the hill
demanded that the Bodos in the hill areas areas along with Karbis are also given
not be given the Scheduled Tribe status a Scheduled Hill Tribe status.
as it will affect the “identity of the
Karbis”.  The Karbi Anglong Autonomous
Council has 26 seats, and the
Background elections to the councils are due in
 The Home Ministry, the Assam 2022. It is one of the oldest councils in
government and Bodo groups signed existence since 1951. Nagaland and
the pact on January 27 to redraw and Mizoram that were autonomous
rename the Bodoland Territorial councils initially became States years
Area District (BTAD), spread over ago; only Karbi Anglong and Dima
Kokrajhar, Chirang, Baksa and Hasao remain. Karbis want a ST
Udalguri districts. status for the entire region so that
non-tribals will not be able to contest
 Under the agreement, the Bodos in the in the elections. The non-tribals
hills will be given the Scheduled Hill comprise 46% of the 9.6 lakh
Tribe status and villages dominated population of the council. According
by the Bodos outside the BTAD will to Karbis, the Bodos could not have
be included and those with non-Bodos a separate reservation in hills and
excluded. plains.
 The Bodos, an ethnic group in What next?

Assam, had been demanding a  After the peace accord with all Bodo
separate State since 1972, and are groups, the Centre is at a very
recognised as a Scheduled Tribe advanced stage of sealing a peace deal
(Plain). with other key militant groups,
including the pro-talks faction of the
Tribal composition in Assam United Liberation Front of Asom
In Assam, there are 14 recognised Plain (ULFA) and the Karbi insurgent
Tribe communities, 15 Hills Tribe group.
communities and 16 Scheduled Caste
communities.  But, with the Assembly election in
Assam due in April-May next year,
Why are Karbis against the move? the final announcements could be
250
tailored to suit the ruling BJP
electorally. The BJP is expected to do
well in the 15 Assembly constituencies
in the Bengali-dominated Barak
Valley because of the Citizenship
(Amendment) Act (CAA). The recent
Bodo peace deal will give the ruling
party an edge in 12 seats under the
BTAD. Similarly, a Karbi peace deal
will give the party an edge in the 5
seats in the hill districts.
Citizenship Amendment Act’s

applicability in Assam
There are 33 districts in Assam, and
seven have been exempted from the
CAA as they fall in the areas protected
by the Sixth Schedule of the
Constitution. The exempted districts
comprise three autonomous district
councils: BTAD, Karbi Anglong and
Dima Hasao.
251
Foodgrain production set to touch a record

high
Syllabus subtopic: Major Crops - 10% higher than the long-period
Cropping Patterns in various parts of the average for the season.
country
 This helped farmers rake in rabi or
Prelims and Mains focus: about the winter harvests that were larger-than-
foodgrain production in India and expected in almost all crops.
challenges associated
 Thus, the estimate for total foodgrain
News: The Agriculture Ministry’s second output of 291.95 million tonnes is
advance estimates were released recently. more than six million tonnes higher
than the 285.21 million tonnes
Key highlights produced in 2018-19.
 Total foodgrain production is projected
to scale an all-time high of almost 292  The Agriculture Ministry expects rice
million tonnes in 2019-20, propelled production to reach 117.47 million
by record production of both rice tonnes, slightly higher than the
and wheat. 116.48 million tonnes produced in
2019.
 Production of several crops, including
rice and major pulses, was lower  Wheat, which is only grown in the
than targeted in the kharif or the rabi season, will see a major surge in
monsoon season. However, the production at 106.2 million tonnes in
abundance of late monsoon rains the current year, from the 103.6 million
resulted in cumulative rainfall that was tonnes in 2018-19.
252
Challenges
 Despite the government’s drive to
encourage millets and nutri-cereals,
production failed to match targets
this year, with the estimate pegged at
45.24 million tonnes.
 Pulses production was also estimated

to come in lower-than targeted 23
million tonnes, although it was still
higher than the previous year’s harvest.
Most pulses are dry land crops,
grown on land without irrigation and
the delay in monsoons in many areas
hit kharif harvests although rabi
production improved.
 It was a similar story with oil seeds.

Production was estimated at almost
342 million tonnes, higher than last
year but still lower than the target for
this year.
 Sugarcane is the only major crop

where this year’s estimated production
of 3,538 million tonnes was
significantly lower than last year’s
output of 4,054 million tonnes. A glut
in sugar production over the last few
years had resulted in a crash in
prices and an increase in payment
arrears from sugar mills to cane
farmers.
253
The link between small savings and deficits

Syllabus subtopic: Government News: Getting rid of exemptions under a
Budgeting. new tax regime proposed by the budget
Prelims and Mains focus: about the could make small savings less attractive
exemptions in this year’s budget and its for individuals and dry up this source of
impact on savings and deficit funds for the government.
How do exemptions apply to small How are the rates of interest

savings? determined?
 Small savings schemes are savings  The central government fixes the
instruments such as the Public interest rates on small savings
Provident Fund, National Savings schemes. A committee led by former
Certificate and Sukanya Samriddhi. Reserve Bank of India (RBI) deputy
These are central government schemes governor Shyamala Gopinath has
that allow depositors tax exemption recommended that interest rates of
on such deposits up to a particular various schemes be 25-100 basis
amount in a fiscal. points more than the yields of
government bonds of similar
 The deposits received under these maturity.
schemes are held with the National
Small Savings Fund (NSSF). The  A high-level advisory group, however,
Centre offers an attractive tax-free argued for the need to link the small
rate of return on these instruments for savings rate with RBI’s repo rate to
depositors. Many depositors hold their allow rates to come to market level and
deposits in a combination of a not be kept artificially elevated. The
conventional savings account and government continues to have some
small savings schemes to save taxes to flexibility in determining the interest
get a higher return on deposits. rate of these schemes.
254
Okay, but how does the government
utilize NSSF?
The government uses NSSF as a source of
funds for some of its investments
through the National Highways
Authority of India (NHAI) bonds and
also to finance part of its deficit through
government securities. NSSF buys these
securities and collects the interest on them.
Without exemptions in the new tax regime,
this steady source of funds may not be
available to the government.
How do small savings impact deficits?

Economists has said how state
governments till 2003 could borrow from
people in the form of postal savings. The
rates on postal savings were above the
average interest rates and there was no
limit on borrowings for the states. The
high interest rate led to a 15.2% growth in
small savings rates per annum from 1995-
2003 compared to 11% nominal growth.
This coincided with high state deficits as
there was no fiscal discipline and state
governments could borrow as much as
they wanted through postal savings.
Will a new tax regime bring fiscal

discipline?
The removal of exemptions will have
implications for the quality of our fiscal
statistics. The magnitude of the impact in
the short run would depend on how many
people switch to the new tax regime. As
more people move to the new regime, the
Centre will find limited funds in NSSF,
which it could earlier tap to finance its
deficit or utilize it for off-budget
borrowing. Removing exemptions will
bring in self-discipline in the way the
Centre uses public money.
255
Pledging of Shares
Syllabus subtopic: Effects of  Further, according to the lenders — as
Liberalization on the Economy, Changes stated in an order by the Securities
in Industrial Policy and their Effects on Appellate Tribunal — Karvy Stock
Industrial Growth. Broking had even given an
undertaking that the securities that
Prelims and Mains focus: about the were being pledged were its own and
move; benefits and significance; about that they did not belong to clients.
share pledging
Changes made
News: The Securities and Exchange  Onus of bonafide pledge created from
Board of India (SEBI) has amended the margin account of a stock broker will
SEBI (Depositories and Participants) now lie with the depository following
Regulations by including an additional the SEBI amendment.
explanation that states that ‘pledge’
would also refer to ‘re-pledge of  In the past, pledge from the margin
securities for margin or settlement account was directly routed by the
obligations.’ stock broker using the power of
attorney route, without the active
Why? consent or approval of the beneficiary
A minor tweak in the manner ‘pledge’ is holder of shares. Now consent of
defined in the regulatory laws is beneficial owner will be necessary.
expected to go a long way in minimising
instances where stock brokers misuse Likely benefits
client securities by pledging such shares  Instances where a client’s
for their own benefit in terms of meeting funds/securities were diverted or
their margin requirements. misutilised by brokers toward margin
or settlement obligations of itself, or
Background for some third party, or for raising
 This assumes significance as the recent loans against shares on its own
past has seen few instances of account, will be minimised.
brokers pledging client securities to
raise funds from banks and non-  With the insertion of this explanation,
banking finance companies (NBFCs). depository participants of both the
More importantly, this was done pledger and the pledgee will have to
without the clients being aware that inform the pledger and the pledgee
their securities were being misused in respectively of the entry of creation
such a manner. of the re-pledge.
 The most high-profile matter in the The latest SEBI move comes close on the
recent past was of Karvy Stock heels of the regulator developing an in-
Broking in which the Hyderabad- house system to track the movement of
based firm raised funds from entities client securities that are collected as
such as Bajaj Finance, ICICI Bank, collateral by the brokers.
HDFC Bank and IndusInd Bank by
pledging client securities.
256
What is a pledged share? What should be the approach of retail
Simply put, it is taking loan against the investors in stocks with high pledged
shares one holds. It can be done by both promoter holding?
investors and promoters.  Shares of companies with high pledged
promoter holding tend to witness
Why do promoters pledge shares? higher volatility. The risk is assessed
One of the methods promoters use to raise on the basis of the amount of pledged
finance is to take loans against their shares as a percentage of the total
holding in their company from banks or shareholding.
non-banking financial companies. For
these financial institutions, these shares  A stock is considered a risky bet if
are collateral. Promoters can raise funds pledged shares are more than 50% of
for various reasons-for meeting the total shares in the company so
requirements of the business or personal ideally, retail investors should avoid
needs. such stocks.
Can banks sell the shares pledged by

promoters?
 Banks can sell the pledged shares if
the price of the stock falls closer to
the value agreed in the contract
between them and the company.
Typically, the amount that is lent by
banks/NBFCs to promoters is less
than the market value of the shares.
 This shortfall is the margin is the

amount that these lenders retain as
security. In case the stock price falls,
lenders ask the promoter to provide
more cash or shares to top up this
margin. If the promoters are not able
to top up the collateral, the lenders
can sell the shares to maintain this
margin. Conversely, revoking of
pledged shares by promoters is seen
as a positive sign.
What is the risk for retail investors in

this?
High promoter pledged shares can wreak
havoc in a stock if price continues to fall
and lenders sell these shares in the
market. The sudden supply of shares can
lead to further price fall and is a risk for
retail investors who may have to sell the
shares for a significant loss.
257
Force Majeure Clause

Syllabus subtopic: Indian Economy and liability or obligation when they are
issues relating to Planning, Mobilization of prevented by such events from
Resources, Growth, Development and fulfilling their obligations. It is an
Employment. extraordinary provision that allows
them to wriggle out of liabilities in
Prelims and Mains focus: about the move case they are unable to fulfill their
and its implications; about force majeure contractual obligations.
clause
Significance
News: The government said supply chain The move is a potential relief for
disruptions caused by the novel companies facing difficulty in receiving
coronavirus (Covid-19) outbreak in shipments from China due to issues like
China would allow companies to invoke shutdown of operations there or a hold-up
force majeure clause at the ports in India.
Background Sectors facing supply chain issues

 The announcement comes a day after  Sectors like pharmaceutical, chemicals
Finance Minister met several industry (such as paints and tyre manufacturing)
representatives to take stock of the and solar equipment were “very vocal”
situation, announcing the government about disruptions in their supply chain.
would “speedily” formulate measures
to minimise its impact on sectors.  Today, when their raw materials have
to come, there is a delay, or the
 The Department of Expenditure in a products come, but the papers
notification dated February 19 advised (necessary paperwork from China for
ministries that the impact on supply Indian customs) don’t come. So the
chains due to the spread of the virus disruption is felt increasingly by these
was a fit case for the invocation of the three.
force majeure clause.
 Some micro, small and medium
What is the force majeure clause? enterprises (MSMEs) had been facing
 A ‘force majeure’ means delayed and staggered raw material
extraordinary events or supply, which had been impacting
circumstances beyond human their ability to manufacture and send
control, including events like natural out their products. These MSMEs had
calamities that could be described as sought flexibility from the banks, as
an ‘act of god’. Other events include their operations were affected due to
wars, strikes, riots and crimes. the outbreak.
However, events like negligence or
wrongdoing and predictable or Impact of supply chain disruption (CII
seasonal rain are not considered force analysis)
majeure.  The Indian industry is heavily
dependent on China, especially for raw
 A force majeure clause in the contract materials for various products sold
frees both parties from contractual here and exported to other countries.
258
 China accounts for a significant share

of the top 20 products that India
imports from the world, according to
an analysis paper by the
Confederation of Indian Industry
(CII).
 According to CII, this includes a 45

per cent share in India’s total
electronics imports, a third of
machinery and almost two-fifths of
the country’s global organic
chemical imports. India also sources
about 65-70 per cent of active
pharmaceutical ingredients used to
make several medicines here as well as
close to 90 per cent of certain mobile
phone parts from China.
 “With supply chains disrupted, many

enterprises will face working capital
shortages and be unable to meet their
credit obligations. This will
particularly impact smaller firms
which can go under, leading to huge
disruption in jobs and incomes,” stated
CII’s analysis.
 The industry body had proposed a

“one-time emergency waiver” of
NPA regulations under a force majeure
clause “given the exigencies of the
situation” to quell fears of the impact
of the outbreak on credit ratings of
enterprises.
259
Operation Control Centre for goods trains

Syllabus subtopic: Infrastructure: Energy,  For the Eastern corridor, targeted to
Ports, Roads, Airports, Railways etc. be completed by December 2021, The
World Bank loan stands at about $1.86
Prelims and Mains focus: about DFCs billion.
and their significance; about DFCCIL  The Western corridor will have a
similar operation control system at
News: The world’s second-biggest Ahmedabad.
Operation Control Centre for goods trains,  Once operational, the freight corridor
built in India by the Dedicated Freight will help decongest the existing
Corridor Corporation of India Indian Railway network, while also
(DFCCIL) is ready to begin operations. helping increase the average speed of
goods trains to 70 kmph, from the
About the centre existing 25 kmph.
 The centre, built at Prayagraj in  It will connect the existing ports and
Uttar Pradesh, will be the ‘nerve- industrial areas for faster movement of
centre’ of the over 1,800 km-long good and will help increase the rail
eastern dedicated freight corridor. share in freight transportation from
 The control centre has a theater which the existing 30% to 45%.”
measures 1560 sq m, with a video
wall of more than 90 m and will be About Dedicated Freight Corridor
used as a one-stop shop for Corporation of India (DFCCIL)
controlling and monitoring rail  DFCCIL is a Public Sector
systems, including train operations Undertaking (PSU) corporation run
and the power supply system. by government of India's Ministry of
Railways to undertake planning,
About Dedicated Freight Corridor development, and mobilisation of
(DFC) financial resources and construction,
 The Dedicated Freight Corridor, maintenance and operation of the
touted as one of the biggest Dedicated Freight Corridors.
infrastructure projects in the  The DFCCIL was registered as a
country, is a 3,360 km stretch company under the Companies Act
consisting of the Eastern and 1956 in 2006.
Western corridors.  It is both enabler and beneficiary of
 Upgrading of transportation other key Government of India
technology, increase in productivity schemes, such as and Industrial
and reduction in unit transportation corridor, Make in India, Startup India,
cost are the focus areas for the project. Standup India, Sagarmala, Bharatmala,
 Carbon emission reduction from DFCs UDAN-RCS, Digital India, BharatNet.
will help DFCCIL claim carbon  Carbon emission reduction from DFCs
credits. will help DFCCIL claim carbon
 The Eastern corridor, which is being credits.
funded by the World Bank, will run
from Ludhiana in Punjab to Dankuni
near Kolkata, traversing Haryana, Uttar
Pradesh, Bihar and Jharkhand.
260
Wildlife Crime Control Bureau (WCCB)

Syllabus subtopic: Conservation, Guwahati, Amritsar and Cochin; and
Environmental Pollution and Degradation, five border units at Ramanathapuram,
Environmental Impact Assessment. Gorakhpur, Motihari, Nathula and
Moreh.
species and conservation status; about Mandate
WCCB and its mandate Under Section 38 (Z) of the Wild Life
(Protection) Act, 1972, it is mandated
News: Four rare Indian Tent Turtles 1. to collect and collate intelligence
were rescued by the Delhi police in north related to organized wildlife crime
Delhi and were handed over to officials of activities and to disseminate the same
the Delhi zoo after inspection by Wildlife to State and other enforcement
Crime Control Bureau (WCCB). agencies for immediate action so as to
apprehend the criminals;
Indian Tent Turtle (kachuga tecta tecta)
 The Indian tent turtle is a species of 2. to establish a centralized wildlife
turtle in the family Geoemydidae. The crime data bank;
species is endemic to India and
Bangladesh. 3. co-ordinate actions by various agencies
in connection with the enforcement of
 It is listed in schedule I of the the provisions of the Act;
Wildlife Protection Act, 1962.
Possession of this species is prohibited. 4. assist foreign authorities and
international organization concerned to
 IUCN status: Least Concern (LC) facilitate co-ordination and universal
action for wildlife crime control;
5. capacity building of the wildlife

crime enforcement agencies for
scientific and professional
investigation into wildlife crimes and
assist State Governments to ensure
success in prosecutions related to
About Wildlife Crime Control Bureau wildlife crimes; and
(WCCB)
 IT is a statutory multi-disciplinary 6. advise the Government of India on
body established by the Government issues relating to wildlife crimes
of India under the Ministry of having national and international
Environment and Forests, to combat ramifications, relevant policy and laws.
organized wildlife crime in the
country. 7. It also assists and advises the
Customs authorities in inspection of
 The Bureau has its headquarter in the consignments of flora & fauna as
New Delhi and five regional offices at per the provisions of Wild Life
Delhi, Kolkata, Mumbai, Chennai and Protection Act, CITES and EXIM
Jabalpur; three sub-regional offices at Policy governing such an item.
261
Consumer Price Index (CPI)

Syllabus subtopic: Indian Economy and News: The RBI governor has stressed the
issues relating to Planning, Mobilization of need to review the monetary policy
Resources, Growth, Development and framework. An inflation targeting
Employment. framework is effective when the measure
Prelims and Mains focus: about CPI and of inflation is accurate. But there are
its significance; about inflation targeting concerns about CPI’s composition.
What is CPI and how is it computed? consumers in a country purchase.

 The consumer price index (CPI) The weights are adjusted with changes
measures the changes in the prices of in consumption patterns.
goods and services that are
consumed by households. The rural How are these weights for CPI derived?
CPI index is based on the  In India, the National Statistical
consumption basket of rural India, Office conducts the Consumption
while urban CPI focuses on the urban Expenditure Survey (CES) that helps
basket of consumption. us understand the consumption basket
 The index is a monthly series, which of various consumers.
measures inflation in the form of a
change compared to the same month  Suppose a consumer spends Rs.10 out
in the previous year. of Rs.100 on food, then the share of
 A simplistic understanding of the food in his consumption is 10%. CES
computation of CPI would be to gives us these shares for the overall
consider it as a weighted average of economy. The government has not
the goods and services that the released the 2017 CES because of
262
inconsistencies. Therefore, the weights
of the CPI series would not be adjusted
using this survey.
 Our current CPI weights are based on
the 2011-12 survey and will be
updated once we have a new and
reliable consumption survey.
Why is it important to update CPI

weights?
As our consumption pattern shifts, a CPI
based on old weights is likely to
underestimate or overestimate inflation.
For example, the share of expenditure
on transistors, which have become
obsolete, has gone down. If prices of
transistors increase, old shares would give
a higher inflation rate than what consumers
experience.
How will this impact inflation targeting?

An inflation targeting regime is as good as
the quality of inflation statistics. This is
important as several other inflation
indicators seem to be below 4%, even as
food inflation rose, driven by onion prices.
As such, we may be overestimating
inflation, but there have been times when
we have underestimated it. Recently, some
authors argued the need to move to a
broader measure of inflation target that
could combine the GDP deflator,
wholesale price index and CPI to avoid
overdependence on a single indicator.
How do we get a right estimate of

inflation?
The share of consumption expenditure has
changed between the 2011 and 2017
National Accounts Statistics (NAS), with
a decline in the share of expenditure on
food. The official CPI series could be more
sensitive to food inflation. Given that the
quality and reliability of the survey data
have been questioned over the years,
moving towards a CPI derived from the
private final consumption data from NAS
must be considered.
263
Thal Sena Bhawan

Syllabus subtopic: Various Security  The ‘Thal Sena Bhawan’ is
Forces and Agencies and their Mandate. conceptualised as a multi-storey green
building adopting Green Rating for
Prelims and Mains focus: about the Integrated Habitat Assessment
details of new structure and its (GRIHA) norms and will house
significance; about GRIHA offices, residential area for security
personnel and basic amenities.
News: Defence Minister performed the
stone-laying ceremony for the proposed  Approximately 7.5 lakh sq.m. of area
‘Thal Sena Bhawan’ of the Army in will be constructed to house the office
Delhi cantonment. complex and parking. A total of 6,014
offices will be constructed, which will
About Thal Sena Bhawan house offices for 1,684 officers — both
 The building spread over 39 acres military and civilian — and 4,330 sub
opposite Manekshaw centre in Delhi staff.
cantonment will bring together Army
headquarters split in eight pockets  It is proposed to construct this
across Delhi. Presently, the Army structure in five years. The Army chief
Headquarters is split into eight would continue to sit in South Block in
pockets across South Block, Sena close proximity to the Defence
Bhawan, Hutments Area, R.K. Puram, Minister and the present Army HQ
Shankar Vihar and other places, the ‘Sena Bhawan’ will continue to exist,
Army said. The work was sanctioned though some functions would be
to make up the existing deficiency of shifted to the new complex.
44% and also to accommodate the
Army Headquarters in one place.
264
Significance aspects such as energy consumption,
 The new structure will bring together waste generation, renewable energy
various pockets of the Army adoption, etc. so as to manage, control
headquarters spread across Delhi under and reduce the same to the best
one roof thereby improving the possible extent.
working efficiency, while reducing
the carbon footprint and logistics  With over two decades of experience
requirements. It would also allow on green and energy efficient
more family time for all personnel at buildings, The Energy and Research
peace posting in Delhi. Institute (TERI) has developed
GRIHA (Green Rating for
 Earlier there was movement of about Integrated Habitat Assessment),
3,000-4,000 vehicles every day from which was adopted as the national
the various Army establishments in rating system for green buildings by
the city. This would be not required the Government of India in 2007.
once the ‘Thal Sena Bhawan’ comes
up.
 This tool has been adopted by the
 The newly created Department of Ministry of New and Renewable
Military Affairs (DMA) headed by Energy. This tool, by its qualitative
the Chief of Defence Staff (CDS) will and quantitative assessment criteria, is
work from here. This will help in able to ‘rate’ a building on the degree
jointness. of its ‘greenness’.
About Green Rating for Integrated

Habitat Assessment (GRIHA)
 GRIHA is a rating tool that helps
people assesses the performance of
their building against certain
nationally acceptable benchmarks. It
evaluates the environmental
performance of a building holistically
over its entire life cycle, thereby
providing a definitive standard for
what constitutes a ‘green building’.
The rating system, based on accepted
energy and environmental
principles, will seek to strike a balance
between the established practices and
emerging concepts, both national and
international.
 GRIHA attempts to minimize a

building’s resource consumption,
waste generation, and overall
ecological impact to within certain
nationally acceptable limits /
benchmarks. It attempts to quantify
265
Water table dipping in Bihar

Syllabus subtopic: Conservation, table across Bihar. A recent survey by the
Environmental Pollution and Degradation, state government showed that 34,559
Environmental Impact Assessment. water bodies had been encroached upon.
So far, temporary encroachment has been
Prelims and Mains focus: about the cleared from 20,432 water bodies and
findings of the report; challenges and steps permanent encroachment from 2,123 water
taken bodies.
News: The latest telemetry report by the Challeneges and their remedies
Bihar Minor Water Resources Department  The depleting groundwater level is a
was released recently. crisis that is emerging worldwide, but
in Bihar it is getting acute due to
Key findings of the report 1. loss of forest and vegetation,
 The Water table has dipped 2. dependency on groundwater and
alarmingly across Bihar between depletion in surface water resources,
August 2019 and February 2020. 3. overexploitation of groundwater with
the coming of powerful pumps, and
 The dips in water table range from 13 4. cultivation of high water-consuming
feet to 25 feet. The situation is crops.
particularly alarming in the
Seemanchal and the southern part of  There is an urgent need to check soil
the state. erosion, revive traditional water
management practices and more
 About 10 districts, including Katihar efficient use of water in agriculture.
and Begusarai, reported a dip of 17 feet Also, roof rainwater harvesting
to 25 feet in its water table and Patna system should be used to take care of
too reported a 17-feet dip. The report urban needs.
also says the water table in the state
has gone down from 10 to 200 feet in  The State govt. have initiated several
the last 10 years. measures under the Jal, Jeevan,
Hariyali mission to improve the water
 According to the report, the table. An exercise to remove
groundwater level in Bihar earlier encroachment from water bodies and
ranged from 40 feet to 200 feet, but the clear them of silt is being conducted on
recent dips have brought down the a mass scale and the results could start
range to between 60 and 250 feet. showing from next year. Under the
While this could lead to water crisis mission, about 3,000 ponds are being
during summers, a drought could cleaned and over 2,000 checkdams
aggravate the problem. have been planned in small rivers. All
these measures are part of the project
Why water table is dipping in Bihar? due for completion by 2022.
Uneven distribution of rains, lack of water-
harvesting measures and encroachment
upon water bodies are being cited as the
major reasons for the alarming dip in water
266
Olive Ridley Turtles

Syllabus subtopic: Conservation, inform about the debris deposited by
Environmental Pollution and Degradation, the sea, prevent entry of predators like
Environmental Impact Assessment. stray dogs and search for turtle
carcasses.
Prelims and Mains focus: about Olive
Ridley Turtles and steps taken for their
conservation; about IUCN
News: Preparations are almost done at the

Rushikulya rookery on the Odisha coast
to welcome and protect Olive ridley
turtles during mass nesting. Odisha has
half of the world’s Olive Ridley turtle
population and 90% of India’s turtle
population lives in the state.
Steps taken by the state government About Olive Ridley Turtles

 To provide security to mother turtles as  There are five species of turtles in
well as the eggs from human and Indian waters — Leatherback
predator intervention, the forest (Vulnerable), Loggerhead
department is erecting an over 5-km- (Endangered), Hawksbill (Critically
long fence of metal net from Endangered), Green (Endangered) and
Gokharkuda to Bateswar. This stretch Olive Ridley.
is the most preferred location for mass
nesting in the Rushikulya rookery.  In India, sea turtles are protected under
the Indian Wildlife Protection Act of
 The forest officials have already 1972.
completed two to three rounds of
awareness drive at all villages near  The Olive ridley turtles are the
the rookery. smallest and most abundant of all
sea turtles found in the world,
 Fishing in mechanised boats, inhabiting warm waters of the
including trawlers, has been banned. Pacific, Atlantic and Indian oceans.
The forest department officials are also
patrolling the region in two trawlers,  The Olive ridley is the most numerous
two speed boats and a country boat. among the sea turtles found in India
and is well known for its arribadas,
 Debris and plastic waste, like pieces or annual mass nestings when
of fishing net, are being removed with thousands of turtles migrate to the
the help of locals. There will be breeding ground to nest
regular monitoring of the beach. simultaneously.
 The department has set up 11 onshore  Recognized as Vulnerable by the

camps. Personnel at these camps IUCN Red list of Threatened
regularly document beach condition, Species.
267
 International trade in these turtles and

their products is banned under CITES
Appendix I.
 ‘Operation Kachhapa’: Conservation

of the Olive Ridley Sea Turtle was
launched by the Wildlife Protection
Society of India in collaboration with
the Orissa State Forest Department and
the Wildlife Society of Orissa and
other local NGOs.
To reduce accidental killing in India, the

Orissa government has made it mandatory
for trawls to use Turtle Excluder Devices
(TEDs), a net specially designed with an
exit cover which allows the turtles to
escape while retaining the catch.
268
Malai Mahadeshwara Wildlife Sanctuary

Syllabus subtopic: Conservation, What’s next?
Environmental Pollution and Degradation,  The sanctuary will be renamed as
Environmental Impact Assessment. Malai Mahadeshwara Hill Tiger
Reserve (MMH TR) with a core area
Prelims and Mains focus: about MM of 670.95 sq km spread across Malai
wildlife sanctuary and the tiger reserves Mahadeshwara Reserve Forest, Hanur
mentioned; about NTCA Reserve Forest and Yediyarahalli
Reserve Forest. The buffer will be
News: Decks have been cleared to notify spread over 235.19 sq km.
the Malai Mahadeshwara Wildlife
Sanctuary in Karnataka’s About MM Wildlife Sanctuary
Chamarajanagar district as a tiger  The sanctuary presently has about 20
reserve. The approval from the National tigers as evident in photographs from
Tiger Conservation Authority (NTCA) camera traps in Hanur, Ramapura, P.G.
is expected any time now. Palya, Hoogyam, M.M. Hills and Palar
ranges, and wildlife experts vouch for
Background its potential to rival the Bandipur-
State Board for Wildlife had given its Nagarahole-Wayanad-Mudumalai
concurrence to declare M.M. Hills landscape in the years ahead.
sanctuary as a tiger reserve in January
2019. A proposal was submitted in May  This optimism stems from the fact that
2019 but it was returned as additional the MM Hills wildlife sanctuary –
clarification was required with respect to which is spread over 906.18 sq km – is
the delineation of the boundary in the core contiguous to BRT Tiger Reserve
area, list of existing settlements and the (584 sq km) on one side,
need to spell out the religious and tourism Satyamangalam Tiger Reserve
zone, etc. Hence, a revised proposal was (1,412 sq km) in Tamil Nadu on the
submitted in January 2020 and a other, while the Cauvery Wildlife
presentation made before the NTCA in Sanctuary (1,027 sq km) also borders
Delhi. it, thus providing a contiguous forest
cover of over 3,500 sq km that can act
What does it signify? as a sink to absorb surplus tiger
 Once notified, Chamarajanagar district population and help increase their
will have the rare distinction in the numbers.
country of harbouring three tiger
reserves. It already has Bandipur  Implementation of strict wildlife
and Biligiri Ranganatha Temple management and protection measures
(BRT) Tiger Reserve within its will enhance the landscape value in
territorial limits. increasing the tiger densities as the
forests has an abundance of prey
 Also, with this, Karnataka will have species like gaur, sambar, chital,
six tiger reserves, the others being four-horned antelope, wild boar,
Nagarahole, Bhadra, and Anshi- etc., according to authorities who say
Dandeli, apart from Bandipur and that studies have proved that the prey
BRT Tiger Reserves. density was 5.05 animals per sq km.
269
Being part of Mysore Elephant
Reserve, these forests also support
nearly 300 elephants.
 There are 39 anti-poaching camps in

MM Hills Wildlife Sanctuary and the
plan is to double their number once
it is elevated to the status of a tiger
reserve. This sanctuary and the
adjoining landscape – which was once
Veerappan’s den and out of bounds
for the forest department – had a
history of poaching by local
community for meat, especially along
the forest boundary and fringes. But it
has been curtailed over the years thus
increasing the density of the prey.
 In the justification to declare the

sanctuary a tiger reserve, the
authorities have stated that this is a
unique geographical zone that acts
as a bridge between the Western and
Eastern Ghats. There are about 285
bird species documented in this
landscape as per a 2014 survey. The
forests are important not only for tiger,
elephants and leopards but also chitals,
honey badgers, smooth-coated otter,
striped hyena, wild dogs, sloth bear,
grizzled giant squirrels, Mahseer fish,
etc.
270
RBI study on digital payments

Syllabus subtopic: Indian Economy and reflected in decrease in average value
issues relating to Planning, Mobilization of per digital payment transaction.
Employment.  Many merchants, especially in rural
areas, remain unable or unwilling to
Prelims and Mains focus: about the RBI accept digital transactions due to
study and its key findings network connectivity issues and a
reluctance to pay charges for what are
News: A Reserve Bank of India (RBI) often low-value transactions.
study on the progress of digitisation from
cash to electronic was recently released. Cash is still dominant
 It is assumed that having high
Key findings of the study currency in circulation (CIC)
 Cash still rules, but it is increasingly relative to GDP indicates that cash is
seen as a way to store value as an highly preferred as a payment
economic asset rather than to make instrument. Based on this assumption,
payments. India continues to have a strong bias
for cash payments.
 Although cash is deeply embedded in
the payment systems in India, planned  Demonetisation and an active
efforts post-demonetisation have growth in GDP brought down the
shown a marked shift from cash to CIC as a percentage of GDP to 8.70
digital payments. Over the past five per cent in 2016-17. This increased to
years, the demand for high value 10.70 per cent in 2017-18 and to 11.2
denominated currency has outpaced per cent in 2018-19 which, however, is
low value denominated currency, less than the pre-demonetisation level
which may indicate that “cash is of 12.1 per cent in 2015-16. The rate of
increasingly used as a store of value increase is lower indicating a
and less for making payments. perceptible shift away from cash.
 Both cash and non-cash payment  The notes in circulation (NIC), i.e.
instruments fulfil unique needs, and as CIC minus coins in circulation,
long as these needs do not change, increased at an average rate of 14
both types of payment instruments are per cent between October 2014 and
required to meet the full spectrum of October 2016. Assuming the same
user’s needs. growth rate, NIC would have been Rs
26,04,953 crore in October 2019.
 India’s growing use of retail digital However, it was Rs 22,31,090 crore,
payments, along with the radical indicating that digitisation and
reconstruction of its cash economy, reduction in cash usage helped
indicates a shift in its relationship reduce NIC by over Rs 3.5 lakh
with cash. This is evidenced by the crore.
steep growth observed in the retail
digital payments. Increasing Conclusion
acceptance and convenience of Overall, digital payments in the country
digital payments vis-à-vis cash is also have witnessed a compounded growth of
271
61 per cent and 19 per cent in terms of
volume and value, respectively, over the
past 5 years, demonstrating a steep shift
towards digital payments. Within the
digital payments, retail electronic
payments comprising credit transfers
(RTGS, NEFT, IMPS and UPI) and direct
debits (ECS and NACH) showed rapid
growth at 65 per cent and 42 per cent in
terms of volume and value, respectively.
Stored value cash issued in the form of
wallets and prepaid cards showed an
increased adoption, with a growth of 96
per cent and 78 per cent in terms of
volume and value, respectively.
272
Central Vista Redevelopment project

Syllabus subtopic: Conservation, land-use change not in conformity
Environmental Pollution and Degradation, with Delhi’s Master Plan.
Environmental Impact Assessment.
 The petitioner also prayed that no
Prelims and Mains focus: about the permission be granted to cut trees
project; about EAC for the expansion and renovation of
the Parliament building,
News: The Expert Appraisal Committee
(EAC), an apex environmental screening About Parliament redevelopment
committee has deferred a decision on project
clearance to the Parliament  It is part of the Central Vista
redevelopment project. Redevelopment project and involves
redeveloping the 3-km stretch from
Why? Rashtrapati Bhavan to the India
 This has been done on the grounds that Gate in Lutyens’ Delhi.
there was a dispute, being heard in the
Delhi High Court, regarding the land  The revamp, which was announced in
on which some of the proposed September, envisages a new
structures were to come up. triangular Parliament building that
is targeted to be constructed by
 The petitioner in the Delhi High Court August 2022, when the country will be
has pleaded that no environment celebrating its 75th Independence Day.
clearance be given, as the alterations
which are proposed will involve
273
Expert Appraisal Committee (EAC) of  The EC process begins with the project
the Environment Ministry proponent submitting an application
 Recommendations of EACs, expert with relevant information about the
committees appointed by the proposed project to the relevant
Environment Ministry play a crucial regulatory authority (the MoEFCC or
role in the Ministry’s decision to clear the SEIAA). The next stage is the
a developmental/infrastructure project. issuance of detailed and
comprehensive Terms of Reference
 The EACs’ primary role in the (ToRs) for the preparation of an EIA
environmental clearance (EC) process report by the project proponent. The
is to give recommendations to the EACs may intervene to amend
Ministry of Environment, Forest and standardised ToRs to address specific
Climate Change (MoEFCC) on issues with regard to particular
project proposals after considering projects.
the potential impacts of the project.  The draft EIA report prepared by the
 Based on these recommendations, the project proponent, based on the ToRs
MoEFCC either rejects the proposal or and other relevant documents, is then
grants a clearance with conditions made available in the public domain
which would mitigate the impacts or (offices of local and regional
compensate for the same. authorities and official websites) for
public consultation. Certain projects
What is the process of getting an are exempt from the public
Environmental Clearance (EC)? What consultation process, and these are
kinds of projects require one? listed in the EIA Notification. The
 The Central Government issued a outcome of the public consultation is
Notification under the Environment sent to the project proponent who is
(Protection) Act 1986 on 14 expected to respond to the material
September, 2006 requiring certain concerns raised and finalise the draft
categories of projects to obtain an EC EIA report.
prior to commencing any project work.  The final EIA report, the outcome of
This Notification is popularly referred the public consultation (including
to as the EIA Notification 2006 as minutes and video recording of the
EIA studies form an important part hearing), and other relevant documents
of the EC process. are then appraised by an EAC. The
 The categories of projects that require EAC is expected to undertake a
a prior EC, listed in the Schedule to detailed scrutiny of the documents
the EIA Notification, include thermal and the project proponent’s
power projects, river valley presentation, and then recommend
power/irrigation projects, mining, the proposal for grant (or rejection)
industries, airports, highways, solid of EC or recommend additional
waste management projects, etc. studies before making a final
Depending on the size and capacity of decision. Based on the EAC’s
these projects, the EC is either sought recommendations, the MoEFCC issues
from the MoEFCC or from the State its final decision. The MoEFCC
Environment Impact Assessment normally accepts these
Authority (SEIAA), which is recommendations, but it could
constituted by the Central Government disagree and ask the EAC to
in each state for this purpose. reconsider its recommendations.
274
FDI policy regarding Special Economic Zones

(SEZs)
Syllabus subtopic: Effects of  The department stated that compliance
Liberalization on the Economy, Changes with all the conditions enumerated in
in Industrial Policy and their Effects on the FDI policy and as notified under
Industrial Growth. the Foreign Exchange Management
Prelims and Mains focus: above the Act (FEMA) would continue to be
move and its significance; about SEZs the responsibility of the
News: Goods procured from units in manufacturing entity.
special economic zones (SEZ) by single
brand retailers, owned by foreign What are the FDI rules regarding
companies, would qualify for meeting SEZs?
the mandatory 30% local sourcing As per the foreign direct investment (FDI)
norms, the government said in a rules, 100% overseas investment is
clarification. allowed in the sector but sourcing of
30% of the value of goods procured is
Background mandatory from India for such
The statement came in the wake of the companies having FDI beyond 51%.
government having received
representations from various business What are Special Economic Zones?
entities seeking clarification whether  SEZs, developed as export hubs, are
sourcing of goods from units located in treated as foreign territory in terms
SEZs would qualify as sourcing from India of customs laws. Procurement of
as per the FDI policy. goods and services from units in these
zones are treated as imports.
Details  In January 2018, the government
The Department for Promotion of allowed 100% FDI in the sector,
Industry and Internal Trade (DPIIT) permitting foreign players in single
said goods which are proposed to be brand retail trade to set up own
sourced by a single brand retailer from shops in India without government
SEZ units will have to be manufactured approval.
in India.
275
100% FDI in Insurance Intermediaries share holding of foreign investors
 DPIIT notified the government's shall undertake measures including
decision to allow 100% FDI in incorporation as a limited company
insurance intermediaries under the under the provisions of the Companies
automatic approval route. Act 2013 and that at least one from
among the chairman of the board of
 Intermediary services include directors or the CEO or principal
insurance brokers, reinsurance brokers, officer or MD of the company shall
insurance consultants, corporate be a resident Indian citizen.
agents, third-party administrators,
surveyors and loss assessors.  It also said the intermediary shall
take permission of the Insurance
 The FDI policy earlier allowed 49% Regulatory and Development
foreign investment in the insurance Authority (IRDA) for repatriating
sector, which includes insurance dividend and not make payments to the
intermediaries. foreign group or promoter or associate
entities beyond what is necessary or
 As per the press note, the insurance permitted.
intermediary that has majority
276
Centre to sell partial stake in LIC

Syllabus subtopic: Effects of Present Scenario
Liberalization on the Economy, Changes  LIC is currently governed by the
in Industrial Policy and their Effects on LIC Act of 1956, which enables the
Industrial Growth. state-owned insurer to obtain a special
dispensation in several areas, including
Prelims and Mains focus: about the higher stakes in companies beyond the
disinvestment plan and its benefits; about limit set by the insurance sector
LIC regulator.
News: The government is working on the  The government currently owns 100
modalities of Life Insurance per cent stake in LIC and 47.11 per
Corporation of India (LIC) share sale cent equity in IDBI Bank, which is
which is India’s largest and oldest life majority-owned by LIC with 51 per
insurer. cent equity in the stressed lender.
Background What’s next?

 The Budget 2020-21 announced an  The govt. is examining a number of
ambitious disinvestment agenda, legal issues post which a proposal will
aiming to raise Rs 2.1 lakh crore be taken to the Cabinet for its
through stake sales next year, approval. Discussions are underway
including plans to sell part of the with the law department.
government’s stake in LIC, the
country’s largest insurer, through an  The government will have to first
initial public offering (IPO). amend the LIC Act before taking the
Corporation public. The Department
 The Centre also proposed to sell its of Financial Services is working on the
equity in the stressed IDBI Bank to structuring, modalities and timing of
private, retail and institutional the proposed IPO of LIC.
investors through the stock exchange.
What could be the benefits?
About the move  Listing of the Corporation’s shares on
 The sale of govt’s stake in LIC will be the market is expected to lead to more
carried out depending upon stability disclosures of investment and loan
of markets, and an initial 5 per cent portfolios of the Corporation as well
equity can be sold in the market. as better corporate governance.
 It is a complex exercise and the work  Share sale of LIC, which was set up in
has already started to seek necessary 1956, is expected to generate
approvals for selling shares in the significant investor interest given its
market. dominant position. LIC had 66.24 per
cent market share in total first-year
 Even after the listing of LIC, the premium and 74.71 per cent share in
government will continue to provide new policies in 2018-19, as per the
sovereign guarantee for all policies insurer’s latest available Annual
issued by the Corporation. Report.
277
About LIC
 Life Insurance Corporation of India is
an Indian state-owned insurance
group and investment corporation
owned by the Government of India.
 It was founded on September 1, 1956

when the Parliament of India passed
the Life Insurance of India Act that
nationalized the insurance industry
in India. Over 245 insurance
companies and provident societies
were merged to create the state-owned
Life Insurance Corporation of India.
 Life Insurance Corporation of India

settled 26 million claims in 2018-19. It
has 290 million policy holders.
 The insurer’s total assets had touched

an all-time high of Rs 31.11 lakh crore
in 2018-19, an increase of 9.4 per cent.
 The Corporation realised a profit of Rs

23,621 crore from its equity
investment during financial year 2018-
19, down 7.89 per cent from Rs 25,646
crore in the previous fiscal.
Other disinvestments on the anvil

 The share sale in IDBI Bank is
likely through the offer for sale
route. Even though IDBI Bank is
categorised as a private bank,
sale of government stake could act
as a test case for privatisation of
state-owned banks.
 Apart from LIC and IDBI Bank

stake sale, the government has also
lined up privatisation of BPCL,
Container Corporation of India,
Shipping Corporation of India
and Air India in the next financial
year.
278
Fiscal deficit touches 128.5% of Budget

Estimate
Syllabus subtopic: Indian Economy and every year to bridge the gap between
issues relating to Planning, Mobilization of its income and expenditure.
Employment. 3. Capital and revenue expenditure:
Expenditure that does not create any
Prelims and Mains focus: about the asset, such as subsidies and interest
govt’s fiscal deficit target; about various payments, is revenue expenditure.
terms used in the budget Spending to create assets such as
highways, buildings and dams as well
News: The fiscal deficit touched 128.5 per as loans given by the centre to the
cent of the whole-year Budget target states come under capital
during the April-January period. expenditure.
Background 4. Direct and Indirect Taxes: Direct

 The deficit in the year-ago period was taxes are the one that fall directly on
121.5 per cent of the corresponding individuals and corporations. For
target. example, income tax, corporate tax
etc. Indirect taxes are imposed on
 The government had targeted to goods and services. They are paid by
restrict the fiscal deficit (RE) at Rs consumers when they buy goods and
7,66,846 crore for the year ending services. These include excise duty,
March 31, 2020. customs duty etc.
 Finance Minister had raised the fiscal 5. Revenue Deficit: The difference
deficit target to 3.8 per cent of the between revenue expenditure and
GDP, from 3.3 per cent pegged revenue receipt is known as revenue
earlier for 2019-20 due to revenue deficit. It shows the shortfall of
shortage. government's current receipts over
current expenditure.
Budget related terms you should know
An annual financial statement for the 6. Tax revenue: The primary source of
Union of India that contains the income for the government. The
government's revenue and expenditure for government funds its expenditure by
a given fiscal year, the Union Budget is a either directly taxing income of
massive and complex document. individuals/companies or by taxing
goods and services consumed by
1. Gross domestic product (GDP): The people (indirect taxes).
added value of output of all productive
sectors in the economy as measured by 7. Non-tax revenue: Additional sources
the Central Statistics Office. of revenue for the government other
than taxes. This includes revenues
2. Fiscal deficit: Total additional from interest receipts, spectrum
borrowings made by the government auction and disinvestment, among
other things.
279
8. Fiscal policy: It is the government 14. Revised Estimates: Revised Estimates

actions with respect to aggregate levels are mid-year review of possible
of revenue and spending. Fiscal policy expenditure, taking into account the
is implemented though the budget and rest of expenditure, New Services and
is the primary means by which the New instrument of Services etc.
government can influence the Revised Estimates are not voted by
economy. the Parliament, and hence by itself do
not provide any authority for
9. Capital Budget: The Capital Budget expenditure. Any additional
consists of capital receipts and projections made in the Revised
payments. It includes investments in Estimates need to be authorized for
shares, loans and advances granted by expenditure through the Parliament's
the central Government to State approval or by Re-appropriation
Governments, Government companies, order.
corporations and other parties.
15. Excess Grants: If the total expenditure
10. Revenue Budget: The revenue budget under a Grant exceeds the provision
consists of revenue receipts of the allowed through its original Grant and
Government and it expenditure. Supplementary Grant, then, the excess
Revenue receipts are divided into tax requires regularization by obtaining the
and non-tax revenue. Tax revenues Excess Grant from the Parliament
constitute taxes like income tax, under Article 115 of the Constitution
corporate tax, excise, customs, service of India. It will have to go though the
and other duties that the Government whole process as in the case of the
levies. The non-tax revenue sources Annual Budget, i.e. through
include interest on loans, dividend on presentation of Demands for Grants
investments. and passing of Appropriation Bills.
11. Finance Bill: The Bill produced 16. Minimum Alternative Tax (MAT):
immediately after the presentation of The Minimum Alternative Tax is a
the Union Budget detailing the minimum tax that a company must
Imposition, abolition, alteration or pay, even if it is under zero tax limits.
regulation of taxes proposed in the
Budget.
12. Vote on Account: The Vote on

Account is a grant made in advance by
the parliament, in respect of the
estimated expenditure for a part of new
financial year, pending the completion
of procedure relating to the voting on
the Demand for Grants and the passing
of the Appropriation Act.
13. Budget Estimates: Amount of money

allocated in the Budget to any ministry
or scheme for the coming financial
year.
280
Delhi water fails to clear ISO norms

Syllabus subtopic: Conservation,
Environmental Pollution and Degradation,  It was found that all the drinking water
Environmental Impact Assessment. samples drawn from Delhi were non-
conforming in one or more
Prelims and Mains focus: about the requirements as per IS 10500:2012
contamination in drinking water; about [specification for drinking water],
BIS; about ISO standards concluded a 64-page report filed by the
Department of Laboratory Policy and
News: None of the drinking water samples Planning Department of the BIS.
randomly collected from across Delhi
conforms to the ISO standards of purity Reasons for water contamination
in one or more requirements, the Bureau  One of the main reasons for
of Indian Standards (BIS) informed the contamination in Delhi was leaking
Supreme Court. pipes.
Background  Coliform contamination occurs when

 On January 13, the court ordered the faecal matter gets mixed with treated
pollution control board and the BIS to water supplied to consumers.
conduct a random check of water Ultimately, consumers face dangerous
quality in Delhi and submit a report in gastrointestinal diseases, like
a month. The BIS report said it drew dysentery, as a result of this
samples from various locations across contamination.
Delhi and 20 other State capitals under
an integrated scheme. About Bureau of Indian Standards
(BIS)
 The Delhi government has maintained
that potable water in the national 1. The Bureau of Indian Standards (BIS)
capital is safe. The re-inspection has is the national Standards Body of
been ordered for further clarity. India working under the aegis
of Ministry of Consumer Affairs,
About the report and its findings Food & Public Distribution.
 In its report, ‘Report of Testing of
Piped Drinking Water Samples Drawn 2. It is established by the Bureau of
from Delhi’, filed on February 19 in Indian Standards Act, 1986.
the court, the BIS said it had focused
on water supplied by city 3. The Minister in charge of the
municipalities, corporations, water Ministry or Department having
boards, local bodies. It said the administrative control of the BIS is the
samples were sent for testing against ex-officio President of the BIS.
47 out of 48 parameters (excluding
radiological test). These covered 4. Composition: As a corporate body, it
organoleptic and physical test, has 25 members drawn from Central or
chemical test, toxic substance, State Governments, industry, scientific
bacteriological, virological and and research institutions, and consumer
biological test. organisations.
281
5. It also works as WTO-TBT specifications for products, services
(Technical Barriers to Trade and systems, to ensure quality, safety
Agreement) enquiry point for India. and efficiency. They are instrumental
in facilitating international trade.
About International Organization for
Standardization (ISO)  ISO has published 23056 International
Standards and related documents,
 ISO is an independent, non- covering almost every industry, from
governmental international technology, to food safety, to
organization with a membership of agriculture and healthcare. ISO
164 national standards bodies. International Standards impact
everyone, everywhere.
 Through its members, it brings
together experts to share knowledge  Regulators and governments count on
and develop voluntary, consensus- ISO standards to help develop better
based, market relevant International regulation, knowing they have a sound
Standards that support innovation and basis thanks to the involvement of
provide solutions to global challenges. globally-established experts.
 Its Central Secretariat in Geneva,

Switzerland, coordinates the system
and runs day-to-day operations,
overseen by the Secretary General.
Governance Structure
 The General Assembly is the
overarching organ and ultimate
authority of the Organization. It is an
annual meeting attended by our
members and our Principal Officers.
 The ISO Council is the core

governance body of the Organization
and reports to the General Assembly. It
meets three times a year.
 The management of the technical work

is taken care of by the Technical
Management Board, which reports to
Council. This body is also responsible
for the technical committees that lead
standard development and any strategic
advisory boards created on technical
matters.
Whar are standards?

 International Standards make things
work. They give world-class
282

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Easy to PICK - “UPSC Monthly Magazine”

S.No. Topic Page

Iranian Revolution, 1979

Hampi World Heritage site

Prelims and Mains focus: about the SC About Hampi

 Hampi continues to be an important

Hampi has around 500 of monuments and

2. Hampi Bazaar, also known as

3. Courtesans' Street : Once the liveliest

4. Achyuta Raya's Temple : This temple

6th International Conference on Climate

Significance of the new system

 Once the system was established, it

Gold deposits found in Sonbhadra (Uttar

Vittala Temple at Hampi

Global Health Emergency

Reason for the declaration  The responsibility of determining

Appointments in minority-run institutions

What was the SC judgement in T.M.A Cultural and Educational Rights

 Article – 30 : Right of minorities to

(2) The state shall not, in granting aid to

National Seed Fund

 In their interactions with the  Apart from the employee-benefit

 This means that employees of start-ups

 It will help start-ups in further

Data Centre Parks

Data Centre Market: Key figures

 According to Research and Markets,

Revenue Deficit grants for states

What does it mean? 3. Primary Deficit:

 Set up under Article 280 of the  The reorganisation of the State of

 Its recommendations are also geared

 First Finance Commission was set

 The Fifteenth Finance Commission

Organisation of Islamic Cooperation (OIC)

CAG report on army provisioning

Audit of provisioning and procurement  The Union Cabinet accorded in-

India extends reach in Indian Ocean Region

 Madagascar’s Defence minister will  In March 2018, to facilitate its

NCRB report on missing children and women

b) Mumbai and Pune recorded the

c) In West Bengal, the number of

b) In Madhya Pradesh, Indore reported

c) In West Bengal, Kolkata district had

WHO report on cancer

 The six most common cancer types

1. breast cancer (1,62,500 cases),

Customs Act, 1962

Present Scenario Case of Solar Equipments and measures

About Bureau of Indian Standards

 BIS has been providing traceability

 BIS has its Headquarters at New

Keeping in view, the interest of

Bhutan ends free entry for Indian tourists

What is it about? Concerns raised against the move

 In contrast to other international

 In the past year, Bhutanese

UNESCO certificate for Jaipur

Background  The city was established on the plains

 The International Council on

About Intangible Heritage Promotion

GST lottery offers