Rau's Focus June2020 PDF

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

Current Affairs Analysis #Authority # Governance 33
02 PREVENTION OF CORRUPTION ACT

#Legislation # Judgement 35
INTERNATIONAL RELATIONS PM-CARES FUND

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

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

#Banking 70
DOLLAR SWAP LINE

15 #Finance 72
CONSTITUTION, POLITY AND GOVERNANCE SOCIAL STOCK EXCHANGES
# GS Paper (Prelims) & GS Paper II (Main) #Finance 73
INTER-STATE MIGRANT WORKERS – LEGAL STRUGGLE CRISIS IN MUTUAL FUND COMPANIES

#Legislation # Social Justice 15 #Finance 75
i
CHINA LAUNCHES NEW DIGITAL CURRENCY
#Banking 76
92
IRAN ADOPTS NEW CURRENCY "TOMAN" SOCIETY AND SOCIAL JUSTICE
#Banking 77
# GS Paper I & GS Paper II (Main)
CONSOL BONDS
SELF HELP GROUPS
#Finance 78
# Empowerment 92
RBI SAVINGS BONDS
SECULARISM IN INDIA
#Finance 79
#Ethos 94
COOPERATIVE BANKS BROUGHT UNDER SARFAESI ACT
AYUSHMAN BHARAT
# Banking 79
#Health # Empowerment 96
APMC REFORMS- A CRITIQUE
#Govt Policies 80
BOOSTING R&D ECOSYSTEM IN INDIA
#Govt Policies 82 99
MSP FOR MINOR FOREST PRODUCE (MFP)
#Govt Policies 83
SCIENCE & TECHNOLOGY
E-NAM PORTAL- RECENT DEVELOPMENTS
#Govt Policies 84 LUHMAN 16
#Space 99
DILEMMA OVER DECLINING OIL PRICES
#Govt Policies 85 STYRENE GAS LEAK
#Chemistry #Disaster 100

FSDC MEETING
#Govt Policies 86 INTERNATIONAL DAY OF LIGHT
#Physics 100
KISAN SABHA APP
#Govt Policies #Technology 86 NATIONAL TECHNOLOGY DAY
#Science 101
CHAMPIONS PORTAL FOR MSMEs
#Govt Policies #Technology 86 AFRICAN SWINE FEVER
#Biology 102
GOVERNMENT BORROW $ 500 MILLION FROM AIIB
#International Institutions 87 RAPID TESTS
#Bio-Technology 102
INDIA’S SOVEREIGN CREDIT RATING DOWNGRADED
# External Sector 87 WAY TO FIGHT ALZHEIMER’S DISEASE
#Bio-Technology 103
FDI STATISTICS FOR 2019-20
# External Sector 88 TROGLOMYCES TWITTERI
#Biology 103
GOVERNMENT INCREASES BORROWING TARGET
# Public Finance 89 PRACTICE QUESTIONS 104
ENERGY TRANSITION INDEX (ETI)
# International Report 90
ii
GOLCONDA FORT 122
105
VITTALA TEMPLE 122
GEOGRAPHY, ENVIRONMENT, BIODIVERSITY & LAKSHMI NARASIMHA TEMPLE 123
ORCHHA 123
DISASTER MANAGEMENT
TAWANG MONASTERY 123
# GS Paper (Prelims) and GS Paper I & III(Main)
QILA RAI PITHORA 124
AMPHAN CYCLONE
# Climate 105 MALCHA MAHAL 124
CLIMATE CHANGE: IMPACT ON HYDROSPHERE PURANA QILA 124
# Climate Change 109 KHAIR-UL-MANAZIL MOSQUE 125
HEAT WAVES SHER SHAH GATE 125

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

# Agriculture 116
128
SECURITY
# GS Paper III (Main)
118 MISSION SAGAR
# India and the World 128
HISTORY, HERITAGE & CULTURE
OPERATION SANJEEVANI
# GS Paper (Prelims) & GS Paper I (Main)
# India and its Neighbourhood 129
BOJJANNAKONDA 118
INTEGRATED BATTLE GROUPS
CHAUKHANDI STUPA 118
# Defence 129
BHITARGAON BRICK TEMPLE 119
MILITARY ENGINEERING SERVICE (MES)
MAMALLAPURAM 119
# Defence Personnel 130
ELEPHANTA CAVES 120
SHEKATKAR COMMITTEE
RANI KI VAV 120 # Defence # Committee 130
BRIHADEESWARAR TEMPLE 121 DEFENCE TESTING INFRASTRUCTURE SCHEME
VEERABHADRASWAMY TEMPLE, MOTUPALLI 121 # Defence 130
KONARK SUN TEMPLE 121 MP-IDSA

# Defence Studies 131
JAGANNATH PURI TEMPLE 121
EVENTBOT
RAMAPPA TEMPLE 121
# Cyber Security 131
PADMANABHASWAMY TEMPLE 122
iii
SMILING BUDDHA CASE STUDIES for Practice
# Nuclear Test 132 MAINS GS PAPER IV 144
EXERCISE PITCH BLACK

# India and the World #Defence Exercise 133
ASIAN SECURITY CONFERENCE Part Three

# India and the World 133
SIPRI REPORT
Essays of the month
# Report 133
146
TOUR OF DUTY
# Defence 134 ESSAY 1: SOMETIMES IT TAKES A NATURAL DISASTER TO
REVEAL A SOCIAL DISASTER
ZERO FIR
# Society
# Security 134
SUBMITTED BY: LOKESH SHARMA (RAU’S DELHI STUDENT)
147
ESSAY 2: THE HIGHEST EDUCATION IS THAT WHICH DOES NOT

MERELY GIVE US INFORMATION BUT MAKES OUR LIFE IN
HARMONY WITH EXISTENCE
Part TWO # Social Issue
SUBMITTED BY: VISIYA NIRALI J. (RAU’S DELHI STUDENT) 149
Ethics, Integrity and Aptitude ESSAY 3: NEARLY ALL MEN CAN STAND ADVERSITY, BUT IF
YOU WANT TO TEST A MAN’S CHARACTER GIVE HIM POWER
136 # Ethics 150
ESSAY 4: SIMULTANEOUS ELECTIONS: CAN THIS BE A FEASIBLE

ENVIRONMENTAL ETHICS
OPTION FOR INDIA?
#Ethics #Environment 137
# Governance 151
th
JUNE 5 IS THE WORLD ENVIRONMENT DAY 137
iv
Part ONE
Current
affairs
analysis
logical .simple .targeted
analysis & explanation
of all relevant news of the month
INTERNATIONAL RELATIONS
# GS Paper (Prelims) & GS Paper II (Main)
UNSC REFORMS
 10 non-permanent members: Along with the five
permanent members, the Security Council of the United
Nations has temporary members that hold their seats on a
#International Organisation rotating basis by geographic region.These members do not
have veto powers
• The reason behind Veto being limited to just five members
IN NEWS
has roots in WWII.
Syed Akbaruddin who has been India’s Permanent
• The United States and Soviet Union were the outright
Representative to the United Nations since many years, is
victors of the war, and, along with the United Kingdom,
succeeded by T S Trimurti.
they shaped the post war political order.
Also, the French envoy to the UN has asserted that India and
nations like Germany, Brazil and Japan are "absolutely WHY DOES INDIA WANT THE PERMANENT
needed" as permanent members of a reformed and enlarged MEMBERSHIP?
UN Security Council to better reflect contemporary realities India (or any other country for that matter) would want a
and the addition of these key members to the UN high-table is permanent membership to the UNSC for two reasons:
among France's "strategic" priorities.
• First, the veto power, which India could use to defend its
He underlined that Paris believes the enlargement of the interests, say against Pakistan (just like Russia did last year
Security Council with the addition of a few key members is over the civil war in Ukraine).
"one of our strategic priorities."
• Second, the sheer prestige associated with permanent
WHAT IS UNSC? membership of a multilateral forum. India’s elevation will
The Security Council, the United Nations’ principal crisis- also be an acknowledgment of its rise as a global power,
management body, is empowered to impose binding ready to play a key role in the council’s objectives of
obligations on the 193 UN member states to maintain peace. international peace and security.
Few major Roles: CASE FOR INDIA’S CLAIMS FOR PERMANENT
• Ensuring international peace and security; POSITION AT UNSC
th
• Recommending that the General Assembly accept new • Population: Around 1/6 of the global population.
members to the United Nations; • Democracy: With continuous and functional democratic
• Approving any changes to its charter. experience, India is best suited to provide these values into
UNSC which is often criticized for acting on behalf of few
So, no changes to the UN charter or no new member can be
nations.
admitted into UN without the approval of UNSC (as these
resolutions require agreement of all the P5 members). • Economy: India has become the fifth-largest economy in
2019, overtaking the United Kingdom and France. The
WHAT IS THE SECURITY COUNCIL’S STRUCTURE?
country ranks third when GDP is compared in terms of
• It comprises of two kinds of members: purchasing power parity.
 Five permanent members—China, France, Russia, the • Military: Responsible Nuclear power; 3rd largest military
United Kingdom, and the United States—collectively spender after USA and China.
known as the P5. Any one of them can veto a resolution.
FOCUS| JUNE 2020 | RAU’S IAS 2

International Relations
• Contributions to UN: India is the largest contributor to the term ‘BRIC’ to describe the four emerging economies of
the UN Peacekeeping Operations (UNPKO), with nearly Brazil, Russia, India, and China.
180,000 troops serving in 44 missions since it was o He published a paper 'The World Needs Better Economic
established. India is also among the highest financial BRICs’ for the Goldman Sachs ‘Global Economic Paper’
contributors to the UN, with the country making regular series.
donations to several UN organs.
o In this paper, he made a case for BRIC on the basis of
• Active participation in global affairs: India has not only econometric analysis projecting that the four economies
participated but has also taken lead roles in global matters would individually and collectively occupy far greater
like climate change, ozone depletion, counter terrorism economic space and become among the world’s largest
and rule based global order, etc. economies in the next 50 years or so.
• Member of G4 nations: Comprising Brazil, Germany, • So, these four nations paid heed to his article and met on
India, and Japan which support each other's bids for the side-lines of G-8 summit.
permanent seats on the United Nations Security Council.
• The grouping was formalized with the first meeting of BRIC
Although the case for India’s membership is a sound one, but Foreign Ministers in 2006.
it is not an easy and shredded with many challenges and
• The first BRIC Summit was held in Yekaterinburg,
factorsput forth by various nations and factors.
Russia, on June 16, 2009.
• A decision to expand BRIC into BRICS with the inclusion of
South Africa was taken at BRIC Foreign Ministers’ meeting
12th BRICS SUMMIT in 2010.

rd
• In the 3 BRICS Summit at Sanya, South Africa in 2011
#International Summit became member of expanded BRICS.
• The last summit to be held in India was the 8th BRICS
Summit in 2016 which culminated in the ‘Goa Declaration’.
IN NEWS India also invited the member countries of BIMSTEC, as
th
12 BRICS summit is scheduled to be held from July 21-23 in St. part of BRICS outreach program.
Petersburg, Russia. There are speculations as to the feasibility • 2018 marks a decade of BRICS with the 10th BRICS Summit
of conducting such a summit amidst covid-19 crisis. in South Africa.
Russian think-tank Valdai Club released a report named “BRICS • The 11th BRICS Summit was held in 2019 in Brazil.
and the Rivalry Pandemic” wherein the question of considering
SIGNIFICANCE OF BRICS GROUPING
BRICS as a global governance institution has come to the fore.
• The dominance of any group across the world is judged on
WHAT IS BRICS?
the basis of following parameters: Territory under control,
• BRICS is the acronym coined for an association of five Population, GDP and Trade.
major emerging national economies: Brazil, Russia, India,
• BRICS grouping has:
China and South Africa.
o 42% of the global population,
• South Africa is the latest entrant in the group
o 23% of the global GDP,
• Originally, the first four were grouped as "BRIC" (or "the
BRICs"), before the induction of South Africa in 2010. o 30% of the global territory
• The genesis of the idea of BRICS did not come from any o 18% of the global trade.
of the members but rather from a prominent • The BRICS members are also known for their significant
economist Banker, Jim O’Neill. influence on regional affairs; all are members of G20.
o In November 2001, Jim O’Neill, a British economist, then
chairman of Goldman Sachs Asset Management, coined

Successes so far BRICS ensure continued efforts to establish the BRICS Local
NEW DEVELOPMENT BANK (HQ: SHANGHAI) Currency Bond Fund with expected support from IMF.
• It is a multilateral development bank operated by the Note: CRA is generally seen as a competitor to the
BRICS states. International Monetary Fund (IMF) and New Development
• The bank's primary focus of lending is infrastructure Bank (NDB) as that of World Bank (WB).
projects with authorized lending of up to $34 billion
CHALLENGES FACED BY BRICS
annually.
• Geographical separation: Members are fragmented
• The bank has the starting capital of $50 billion contributed
equally by all the members. along 4 different continents.
BRICS CONTINGENT RESERVE ARRANGEMENT (CRA) • Political heterogeneity: For a long-lasting strong group,
there should be political homogeneity. (ex: EU). But China
• It is found that emerging economies that experienced
and Russia have authoritative government and rest have
rapid economic liberalization went through increased
economic volatility, bringing uncertain macroeconomic democracy.
environment. • Dominance of China: Chinese role in trade relations
• Hence, CRA is a framework for providing protection makes the BRICS much more a China-with-partners group
against global liquidity pressures. than a union of equal members.China is floating its own
• This includes currency issues where members' national organizations like,One Belt One Road (OBOR), Shanghai
currencies are being adversely affected by global financial Cooperation Organization (SCO), Asian Infrastructure
pressures. Investment Bank (AIIB).
• Thus, BRICS CRA is a mechanism that intends to forestall
• Lack of Mutual trust and Interests: China- India rivalry
short-term balance of payment pressures in member
(Territorial); Manufacturing (China, India); Russia and Brazil
countries.
rivalry (Mining)
• There was a successful test run conducted in 2018, with
expected operationalization in future with the functioning • So, although BRICS has all necessary conditions (political,
of the CRA System of Exchange in Macroeconomic military and economic influence) to act like a global
Information (SEMI). institution, but these conditions are not sufficient.
• Individual contribution of members:
BELT AND ROAD

INITIATIVE (BRI)
#International Project
IN NEWS
Despite several fissures in China’s ambitious Belt and Road
Initiative, Beijing pushes hard on the project to leverage its
influence worldwide.
ABOUT THE PROJECT

China's Belt and Road Initiative (BRI) development strategy
aims to build connectivity and co-operation across six main

economic corridors encompassing China and: Mongolia and other countries of the Indian sub-continent; and Indo-China.
Russia; Eurasian countries; Central and West Asia; Pakistan;
One Belt One Road (OBOR), the brainchild of Chinese • The second is called the “21st Century Maritime Silk Road,”
President Xi Jinping, is an ambitious economic development which is sea-based and is expected to will China’s southern
and commercial project that focuses on improving coast to the Mediterranean, Africa, South-East Asia, and
connectivity and cooperation among multiple countries Central Asia.
spread across the continents of Asia, Africa, and Europe. It The names are confusing as the ‘Belt’ is actually a network of
was dubbed as the “Project of the Century” by the Chinese roads, and the ‘Road’ is a sea route.
authorities, OBOR spans about 78 countries.
NEED & SIGNIFICANCE
The project covers two parts:
• Asia needs USD 26 trillion in infrastructure investment till
• The first is called the “Silk Road Economic Belt,” which is
2030 (Asian Development Bank, 2017), and China can
primarily land-based and is expected to connect China
certainly help to provide some of this.
with Central Asia, Eastern Europe, and Western Europe.
o Its investments, by building infrastructure, have positive
impacts on countries involved.

• To gain access to natural resources
• To strengthen transport infrastructure in the BRI corridors
• To deepen cultural exchanges in the region.
ASSESSMENT
1. No returns so far: The picture is not promising. The
hundreds of billions spent in these countries have not
produced returns for investors, nor political returns for
the party. Whether Chinese leaders actually seek a
financial return from the Belt and Road Initiative has
always been questionable—the sovereign debt of 27 BRI
countries is regarded as “junk” by the three main ratings
agencies, while another 14 have no rating at all.
2. Investment decisions often seem to be driven by

geopolitical needs instead of sound financial sense: In
South and Southeast Asia expensive port development is
an excellent case study. A 2016 CSIS report judged that
• China’s western regions have not seen so much
none of the Indian Ocean port projects funded through
development as compared to eastern coast (landlocked
the BRI have much hope of financial success. They were
and underdeveloped).
likely prioritized for their geopolitical utility. Projects less
• It will also help to develop markets for China’s products in
clearly connected to China’s security needs have more
the long term and to alleviate industrial excess capacity in
difficulty getting off the ground: the research firm RWR
the short term.
Advisory Group notes that 270 BRI infrastructure projects
• It will help in the expansion of Chinese standards across in the region (or 32 per cent of the total value of the
the globe. whole) have been put on hold because of problems with
• It will increase trading in Yuan hence increasing its share in practicality or financial viability.
global trade. 3. There is a vast gap between what the Chinese have
• Circumvent strait of Malacca. declared they will spend and what they have actually
spent.
OBOR is of prime significance to China as it aims to boost its
domestic growth and is also a part of the country’s strategy 4. Debt diplomacy: Critics use the term debt trap diplomacy
for economic diplomacy. By connecting the less-developed to claim China intentionally extends excessive credit to
border regions like Xinjiang with neighbouring nations, China another debtor country with the alleged intention of
expects to bump up economic activity. OBOR is expected to extracting economic or political concessions from the
open up and create new markets for Chinese goods. It would debtor country when it becomes unable to honour its
also enable the manufacturing powerhouse to gain control of debt obligations (often asset-based lending, with assets
cost-effective routes to export materials easily. including infrastructure). The conditions of the loans are
often not made public and the loaned money is typically
WHAT ALL WILL BE DONE UNDER BRI?
used to pay contractors from the creditor country.
• Free trade zones along the Silk Road
• To enhance financial co-operation in the region to fund

infrastructure

TAIWAN ISSUE
GEOGRAPHICAL LOCATION OF TAIWAN
#Geopolitics
IN NEWS
United States has backed participation of Taiwan at the United
Nations. However, this move of US has been condemned by
China as it considers Taiwan as its province and its inalienable
part.
• It is part of a string of islands off the coast of East and

Southeast Asia extending from Japan south through the
Philippines to Indonesia.
• Taiwan is bounded to the north and northeast by the East

China Sea, with the Ryukyu Islands (the southernmost part
of Japan) to the northeast.
• To the east there lies the great expanse of the Pacific

Ocean and to the south is the Bashi Channel, which
separates Taiwan from the Philippines.
• To the west is the Taiwan (Formosa) Strait, which

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

Absence of India from this meeting is a blow to India’s efforts WHY AFGHANISTAN IS IMPORTANT TO INDIA?
to bring peace in the civil war-torn Afghanistan and also to its
• Regional Balance of Power: Afghanistan is tied to India’s
role in being the leader in the South Asia.
vision of being a regional leader and a great power,
WHY WAS INDIA NOT INVITED? coupled with its competition with China over resources
• It was sighted that India shares no physical boundary with and its need to counter Pakistani influence.
Afghanistan. • India’s ability to mentor a nascent democracy will go a long
• India never announced its support to the US Taliban peace way to demonstrate to the world that India is indeed a
process. major power, especially a responsible one.
• India’s resistance to publicly talking to Taliban has also • India’s interest in Afghanistan relates to its need to reduce
contributed to absence of invitation. Pakistani influence in the region.
• Even Ashraf Ghani government is not leading, owning or • Energy Security: The pipeline project TAPI (Turkmenistan-
controlling the reconciliation process in this US Taliban Afghanistan-Pakistan-India), which seeks to connect an
peace deal. energy-rich Central to South Asia, will only see the light of
the day if stability is established in Afghanistan
• So, India’s voice in the reconciliation process has been
limited. It has weakenedIndia’s position with other leaders • Strategic Location: For access to the landlocked Central
of the deeply divided democratic setup in Kabul such as Asian countries that border Afghanistan.
the former chief executive Abdullah Abdullah. • Natural Resources: The country is home to resource
deposits worth one trillion dollars, according to the US
CONCERNS FOR INDIA
Geological Survey.
• India is hugely invested in the democratic government of
• Regional Security: A stable Afghanistan is important for
Afghanistan.India is a part of number of development
regional security in South Asia.
projects in Afghanistan which will be under threat from
terrorist groups including the Haqqani network, Al Qaeda, • As suggested by India, the peace process of Afghanistan
Islamic State. has to be Afghan-led, Afghan-owned and Afghan-
controlled. Afghanistan should build national consensus
• Groups like ISKP (backed by Pakistan) attacked Gurudwara
for talks with the Taliban. The peace process should not
in Kabul and killed 25 Sikhs.
leave any ungoverned spaces where terrorists and their
• Damage done to India’s goodwill because of the
proxies can relocate.
controversy over CAA.
WHAT SHOULD INDIA DO?

• India should act as a bridge between Ashraf Ghani and OPEN SKIES TREATY (OST)
showcase to the world that India’s role in Afghanistan is
significant and it cannot be neglected. #International Agreement
• India should also act as mediation channel between the US
and Iran as it is almost a precondition for peace in
IN NEWS
Afghanistan.
The United States of America (USA) has announced that it will
• The government must consider the appointment of a
exit the Open Skies Treaty (OST) due to changing environment
special envoy, as it has been done in the past, to deal with
of security and continuous violation of the treaty by Russia.
its efforts in Afghanistan, which need both diplomatic
USA is expected to formally pull out of Open Skies in six
agility and a firmness of purpose at a watershed moment
months.
in that country’s history.
USA accused Russia of non-compliance with OST protocols, of
obstructing surveillance flights on its territory and misusing its
own missions for gathering key tactical data.

Russia has denied the allegations, and has called Washington’s INTERMEDIATE-RANGE NUCLEAR FORCES (INF)
exit as “very regrettable”. TREATY
ABOUT OPEN SKIES TREATY • US has officially withdrawn from the treaty. Russia has
• It was first proposed in 1955 by former US President announced that it would also withdraw from the treaty.
Dwight Eisenhower as a means to deescalate tensions • INF Treaty required the United States and the Soviet
during the Cold War. Union to eliminate and permanently eliminate all of their
• The landmark treaty was eventually signed after the nuclear and conventional ground-launched ballistic and
demise of the Soviet Union in 1992 between NATO cruise missiles with ranges of 500 to 5,500 kilometres.
members and former Warsaw Pact countries. • The treaty marked the first time the superpowers had
• The treaty entered into force on January 1, 2002, and agreed to reduce their nuclear arsenals, eliminate an
currently 34 states are party to the treaty while a 35th, entire category of nuclear weapons, and employ extensive
Kyrgyzstan, has signed but not ratified it. on-site inspections for verification.
• The OST aims at building confidence among members • INF treaty ban originally applied only to U.S. and USSR but
through mutual openness, thus reducing the chances of the treaty's membership expanded in 1991 to include
accidental war. successor states of the former Soviet Union. Today, active
participants included in implementation of the treaty are
• Under the treaty, a member state can “spy” on any part of
Belarus, Kazakhstan, Ukraine, Russia and the United
the host nation, with the latter’s consent. A country can
States.
undertake aerial imaging over the host state after giving
notice 72 hours before, and sharing its exact flight path 24
hours before. The treaty permits each state-party to
conduct short-notice, unarmed, reconnaissance flights
over the others' entire territories to collect data on military
INDIA AND CHINA
forces and activities.
#India and its Neighbourhood
• The information gathered, such as on troop movements,
military exercises and missile deployments, has to be
shared with all member states. IN NEWS
• All of a state-party's territory can be overflown. No Indian and Chinese troops have been involved in as many as
territory can be declared off-limits by the host nation. Even four incidents in recent weeks along the undefined Line of
the treaty allows for multiple states-parties to take part in Actual Contact (LAC). Flashpoints primarily occurred in Galwan
an overflight. Valley in the western sector and Demchok in Ladakh.
• India is not a member country. INDIA - CHINA BOUNDARY DISPUTE
OTHER TREATIES BETWEEN USA AND RUSSIA: • India shares a 3488-long boundary with China along the
states of Jammu and Kashmir, Uttarakhand, Himachal
NEW START TREATY
Pradesh, Sikkim and Arunachal Pradesh.
• It will lapse in February 2021 unless extended for a five-
• However, the border between India and China is not
year period.
clearly demarcated throughout and there is no mutually
• It is a treaty between the USA and the Russian Federation
agreed Line of Actual Control (LAC).
on measures for the further reduction and limitation of
• The difference in perception of boundary lines between
strategic offensive arms. It entered into force on 5th
India and China has resulted in one of longest political
February, 2011.
battles over boundaries in the history.
• It is a successor to the START framework of 1991 which
was signed after Cold War.

HISTORY OF BOUNDARY FORMATION • Western sector is blurred because of the fluid approach
that the British adopted. It was guided more by their own
British India had failed to produce a single integrated and
geo-political interests (to check the Russian advance in the
well-defined northern boundary separating the Indian
Xinjiang region at the time) rather than the requirements
subcontinent from Xinjiang and Tibet.
of nation states.
• The British themselves were not clear in that. Sometimes

they advocated farther northern Kashmiri border in the
form of Johnson Line where Aksai Chin was part of
Kashmir. And sometime they advocated McDonald line
under which Aksai Chin falls under Xinjiang Province of
China.
• As a result, the disagreement prevails with India claiming

Johnson Line to be correct and China claiming McDonald
Line to be correct.
• In the official map of India in 1950, India marked east of

Karakoram range as “Boundary Undefined”.
• Currently though the LAC at present separates India and

WESTERN SECTOR I.E. AKSAI CHIN SECTOR
China in the absence of a mutually agreed boundary, there
• The two sides differ over the boundary line that is a difference in perceptions about the alignment of the
separates Jammu and Kashmir from Xingjiang province line.
of China.
EASTERN SECTOR: MCMAHON LINE
• India accuses China of illegally occupying Aksai Chin, and
some other parts of Ladakh region. Background
• According to China, Aksai Chin is the extension of Tibet • In the eastern sector, the boundary was delineated in the
plateau whereas India claims it as an extension of Ladakh 1914 Shimla conference of British India, China and Tibet.
plateau. Accordingly, the British proposed the formation of Outer-

Tibet bordering India and Inner-Tiber bordering China.
• The region is mostly uninhabited.
• A boundary demarcating Tibetan region of China and the
• Significance for China: Aksai chin is important for China
North-east Frontier Areas of India (current Arunachal
as it connects two backward provinces of China i.e. Tibet
Pradesh) was agreed upon by British and Tibetan
and Xinjiang.
representatives which came to be called the McMahon
BACKGROUND Line.
• This is another contentious issue because China does not

recognize the McMahon line as it was signed between
British and Tibet which was not a sovereign state at the
time.
• As a result, China claims Arunachal Pradesh especially

Tawang as a part of Tibet.
• Though India recognizes Chinese suzerainty over Tibet, it

considers McMahon line to be the official boundary.
A missed opportunity in History?
• India and China were very close to coming to a boundary

settlement when in 1954 China was settling boundary

issues with the then Burma, recognized McMahon line to SHIMLA AGREEMENT OF 1914
be an “accomplished fact”.
• Through this agreement, MacMohan Line was recognized
• However, this did not materialize into a settlement as as the legal boundary between India and China.
India-China relations deteriorated over the issue over Dalai
• However, China rejects the Shimla agreement and the
Lama in 1959 when he was provided asylum by India.
McMahon line, contending that Tibet was not a
• Further, there was an opportunity in 1960 when China sovereign state and therefore did not have the power to
declared that it was prepared to accommodate the Indian conclude treaties.
point of view in the eastern sector if India accommodated
PANCHSHEEL AGREEMENT OF 1954:
Chinese position in the western sector.
• The “Agreement on Trade and Intercourse between the
• However, Govt. of India was against this as it saw Chinese
Tibet region of China and India” was signed in 1954. It is
proposal to be instructive in nature.
remembered as the Panchsheel Agreement.
MIDDLE SECTOR: SETTLED
• The doctrine indicated the willingness to ‘Respect each
• It is the least controversial of the three sectors. other’s sovereignty and territorial integrity’.
• Both sides do not have much disagreement over this area. CONFIDENCE BUILDING MEASURES (CBMS)
• It is the only sector where India and China have exchanged • The two countries are also engaged in Confidence Building
maps on which they broadly agree. Measures (CBMs) on the border with bilateral agreements
INDIA, CHINA AND BHUTAN signed in 1993, 1996, 2005, 2012 and 2013.
The Sino-Bhutan border dispute is ‘almost a non-entity to • In 2003, the two sides agreed on the appointment
China’. of Special Representatives (SRs) for consultations aimed
at arriving at a framework for a boundary settlementthat
However, by virtue of three key features of its geography,
would provide the basis for the delineation and
Bhutan is of vital strategic importance to both China and
demarcation of the border.
India.
• By the beginning of the 21st century, the two sides had
A. Bhutan is landlocked country
agreed not to let the border dispute affect bilateral
B. Bhutan controls a number of Himalayan passes engagements. This was inked into the Agreement on
C. Bhutan is a strategic buffer for the Siliguri Corridor Political Parameters and Guiding Principles for the
The reason for the stalemate is essentially the strategic Settlement of the India-China Boundary Question
implications for India and Bhutan of accepting China’s signed in 2005.
‘package deal’ settlement, which consists of a territorial • In 2012, India and China agreed on the establishment of a
exchange rather than a traditional sectoral approach to working mechanism for Consultation and
border resolution. Coordination on India China borders.
In essence, the exchange would involve China trading 495 • In November 2018, the Special Representatives of China
square kilometres of territory in the central Bhutan border and India held border talks at Chengdu in southwest
area in return for 249 square kilometres of territory in China. The talks were aimed to achieve an early solution to
northwestern Bhutan. The latter is where the territories of the dispute and to maintain peace and tranquility at the
India, Bhutan and China intersect in an area called the borders
Doklam Plateau, adjacent to the Chumbi Valley. Conclusion: Currently boundary settlement continues to
INITIATIVES TO RESOLVE BORDER ISSUES dominate the bilateral relationship between India and China.
nd
With 22 Special Representative meeting due to happen,
A solution to the Sino-India border dispute continues to elude
India is in favour of a ‘package deal’, essentially clarification of
the two countries after nearly 45 rounds of talks since 1960.
LAC by China. China is proposing a Border Code of Conduct

as a new Confidence Building Measures (CBM), which India is • It also ensures that the majority of the travel is in India (84
open to if it respects the sovereign rights of both countries. per cent) as compared to other routes where 80 percent of
the road travel is through China.
KALAPANI ISSUE
INDIA AND NEPAL
#India and its Neighbourhood
IN NEWS
Nepal has strongly objected to the new link road from India to
China which was recently inaugurated by the Defence Minister.
Nepal said the decision to build the road through territory at

the Lipulekh pass that it claims as its territory is a breach of an
agreement reached between the two countries to discuss the
matter.
• Kalapani is a 35 square kilometre area, which is claimed by
It referred to the agreement between India & Nepal in 2014 for
both India and Nepal. River Mahakali, earlier known as
Foreign Secretaries to work out the “outstanding boundary
River Kali, flows through Kalapani, which is situated on the
issues” on Kalapani (where Lipulekh lies) and Susta.
eastern bank of the river.
CAUSE OF THE DISPUTE • Both India and Nepal claim Kalapani as an integral part of
• The Treaty of Sugauli signed by Nepal and British East their territories — India as part of Uttarakhand’s
India Company in 1816defined River Mahakali as the Pithoragarh district and Nepal as part of the Darchula
western border of Nepal. River Mahakali has several district.
tributaries, all of which merge at Kalapani. • Kalapani is also a tri-junction point, where the Indian,
• In essence, the source of River Mahakali is at the heart of Nepalese and Tibetan (Chinese) borders meet. The region
the dispute between the countries. has been manned by the Indo-Tibetan Border Police since
1962.
• India claims that the river begins in Kalapani as this is
where all its tributaries merge. But Nepal claims that it OTHER INDIA-NEPAL BORDER ISSUES
begins from LipuLekh Pass, the origin of most of its
• India and Nepal share a 1,800km open border such that
tributaries
Nepal is surrounded by India from three sides. Relations
ABOUT THE ROAD between the two countries were strained after Nepal
blamed India for imposing a border blockade in 2015,
• The road that starts from Dharchula in Uttarakhand and
which crippled supplies to the landlocked nation.
runs 80 km to the Lipulekh pass, was built by the Border
Roads Organisation to help shorten the travel time to • Susta area in southern of Nepal remains as another area
reach Kailash Mansarovar in Tibet by about three days of territorial dispute.
each way. Way forward: Nonetheless, India held that boundary
• The new road makes this route the shortest and the least delineation exercise with Nepal is ongoing under the existing
expensive way to reach Mount Kailash as it is just a fifth of mechanism. It has further reiterated its commitment towards
the distance when compared to other routes. finding a solution through dialogue in the spirit close and
friendly bilateral relations.

MISSION SAGAR
In line with its time-tested role as the first responder in the
region, India has already supported the efforts of the
Governments of Maldives, Sri Lanka, Mauritius and Seychelles
#India and the World by providing them consignments of Covid-19 related essential
medicines. A team of select medical personnel was also
dispatched to Maldives to augment the preparedness of the
IN NEWS
Maldivian Government to fight this crisis.
Responding to the requests for assistance in dealing with the
Covid-19 pandemic, India has sent Indian Naval Ship Kesari to
Southern Indian Ocean as part of Mission Sagar initiative. The
ship carries on board two Medical Assistance Teams, VANDE BHARAT MISSION
consignments of Covid related essential medicines and
essential food items. #India and the World
• The supplies are sent to five island nations -- Maldives,
Mauritius, Madagascar, Comoros and Seychelles.
IN NEWS
• The Mission involves two major ministries of India--
Ministry of Defence and Ministry of External Affairs-- along India has launched a massive evacuation operation to bring
with several other Government agencies. back Indians stranded in different parts of the world due to
the coronavirus pandemic with the help of Air India.
• ‘Mission Sagar’ is inspired by Prime Minister’s vision of
SAGAR - Security and Growth for All in the Region. • The mission aims at operating non-scheduled commercial
flights.
KEY ASSISTANCE PROVIDED INCLUDES
• Under the mission, the people evacuated are to
• The Medical Assistance Teams to Mauritius and Comoros.
compulsorily download “Arogya Setu” application. After
• Consignments of Covid related essential medicines to returning to India, these people are to be kept under
Mauritius, Madagascar, Comoros and Seychelles and quarantine for 14 days.
about 600 tonnes of food items to Maldives.
• The flights are being operated based on the Standard of
• In case of Mauritius, a special consignment of Ayurvedic Procedure (SOP) issued by Ministry of Home Affairs.
medicines is also being sent. • This should not be confused with Vande Bharat Express
• The consignments meant for Madagascar and Comoros which is Semi High-Speed Train.
also includes Hydroxychloroquine tablets, which have
already been sent earlier to Mauritius, Maldives and
Seychelles.
practice questions
MCQs
Q1. Where did the first BRICS summit held? (c) Russia (d) China
(a) Brazil (b) India

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

countries? 3. Bhutan
(a) Bhutan and China (b) India and Nepal Select the correct answer using code given below:
(c) India and China (d) India and Pakistan (a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Q3. Which of the following states does not share any
boundary with China? Q5. Panchsheel agreement was signed between which of
(a) Uttarakhand (b) Uttar Pradesh the following countries?
(c) Himachal Pradesh (d) Sikkim (a) Bhutan and China (b) India and Nepal
(c) India and Pakistan (d) India and China
Q4. Which of the following countries is/are landlocked?
1. Nepal
descriptive Questions
Q1. Why should India be granted permanent membership of UNSC? Discuss its significance for India. (250 Words)
Q2. Discuss the relevance of peace in Afghanistan for India as well as the world. (250 Words)
Answers to above MCQs: 1 (c), 2 (b), 3 (b), 4(c), 5(d)

CONSTITUTION, POLITY AND
GOVERNANCE
# GS Paper (Prelims) & GS Paper II (Main)
Lead Article
INTER-STATE MIGRANT
situation has drawn attention to a beneficial legislation
dedicated to the welfare of migrant workers. So, in this
WORKERS – LEGAL
backdrop, let us understand this topic from the following
dimensions –
STRUGGLE • Central Legislation on Migrant Workers and Labours
• Dilution of Labour Laws by certain state government and

#Legislation # Social Justice its impact
• Use of Disaster Management Act to curb movement across

state borders
• Role of Supreme Court to protect migrant workers’

IN NEWS fundamental right
The government in order to contain the spread of COVID-19

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

Constituti0n, Polity and
Governance
important to understand as to who can be considered as • Employers and contractors have to provide terms and
Inter-State Migrants. conditions of the work including - the remuneration, hours
• Inter-State Migrant Workman - means any person who is of work, fixation of wages and other essential amenities.
recruited by or through a contractor in one State under an • The wage rates, holidays, hours of work and other
agreement or other arrangement for employment in an conditions of service of an inter-State migrant workman
establishment in another State, whether with or without shall be the same as those extended to other workmen in
the knowledge of the principal employer in relation to such the same establishment, if the nature of their work is
establishment. similar.
• Principal Employer Means the following: • An inter-state migrant worker shall not be paid less than
1. In relation to any office or department of the Government the wages fixed under the Minimum Wages Act, 1948.
or a local authority, the head of that office, department or • It has the provision for the payment of a displacement
authority or such other officer as the Government or the allowance (equal to 50% of monthly wage) and a journey
local authority. allowance (fare from place of residence to place of work)
2. In relation to a factory, the owner or occupier of the to inter-State migrant workers.
factory or manager of the Factory as per The Factories Act, OTHER IMPORTANT DUTIES OF THE CONTRACTOR
1948.
(i) to ensure regular payment of wages to such workmen;
3. In relation to a mine, the owner, agent or manager of the
(ii) to ensure equal pay for equal work irrespective of sex;
mine.
(iii) to ensure suitable conditions of work to such workmen
4. In relation to any other establishment, any person
having regard to the fact that they are required to work
responsible for the supervision and control of the
in a State different from their own State;
establishment.
(iv) to provide and maintain suitable residential
Workman means any person employed in or in connection
accommodation to such workmen during the period of
with the work of any establishment to do any skilled, semi-
their employment;
skilled or unskilled, manual, supervisory, technical or clerical
work for hire or reward, whether the terms of employment (v) to provide the prescribed medical facilities to the
workmen, free of charge;
be express or implied, but does not include any person who is
employed mainly in a managerial, supervisory or administrative (vi) to provide such protective clothing to the workmen as
capacity. may be prescribed;
Applicability of the Act - It is applicable to every (vii) in case of fatal accident or serious bodily injury to any
establishment and contractor which employs five or more such workman, to report to the specified authorities of
migrant workmen from other States. both the States and also the next of kin of the workman.
Compulsory Registrationof Establishment–Every Principal SERIOUS CONCERNS ON LACK OF IMPLEMENTATION

Employer and Contractor must register their establishment OF THE ACT- Despite many safeguards to the inter-state
and obtain Registration Certificate from the government. workman provided under the law, the state as well as centre
Without the registration certificate, principal employer or has failed to implement the Act in right earnest. Let us go
contractor cannot employ inter-state migrant worker. through some of the serious concerns on non-
Benefit of Registration - Registration of establishment implementation of this important legislation.
creates a system of accountability and helps in keeping a (i) Mandatory Registration not done -The Act calls for
track of inter-state migrant work force employed in mandatory registration of establishment without which
industries/establishments in a given area or district. inter-state migrant workman cannot be employed. If the
REGULATION OF CONDITIONS OF SERVICE AND states would have followed this process, then the central
WAGES government would have been in a better situation to

Governance
know the exact numbers of migrant workers employed in (iii) The Dock Workers (Safety, Health and Welfare) Act, 1986
different cities. (iv) The Building and Other Construction Workers
(ii) Lack of Statistics on inter-state migrant worker -This (Regulation of Employment and Conditions of Service)
statistics would have helped both the centre and state Act, 1996
governments to arrange for the travel facilities of such (v) The Plantations Labour Act, 1951
migrant workers back to their native place.
(vi) The Contract Labour (Regulation and Abolition) Act, 1970
(iii) Rights Issues -Further, lack of implementing the central
(vii) The Inter-State Migrant workmen (Regulation of
act has also impacted the fundamental right to a dignified
Employment and Conditions of Service) Act, 1979
life as part of Article 21 as some migrant workers because
of lack of job were forced to travel back to their native (viii) The Working Journalist and other News Paper
place on foot, loaded in trucks and in various inhuman Employees (Conditions of Service and Misc. Provision)
conditions. Act, 1955
(iv) Negligence by Government -This has happened because (ix) The Working Journalist (Fixation of rates of wages) Act,
of negligence, apathy and lack of governance to provide 1958
adequate means of transport by the government in due (x) The Motor Transport Workers Act, 1961
course of time.
(xi) Sales Promotion Employees (Condition of Service) Act,
(v) Consolidation of the present law into Labour Code on 1976
Safety - In efforts towards consolidating and reforming
(xii) The Beedi and Cigar Workers (Conditions of
labour law, a Bill has been introduced in Parliament called
Employment)Act, 1966 and
the Occupational Safety, Health and Working Conditions
Code, 2019. The proposed law seeks to repeal 13 Acts (xiii) The Cine Workers and Cinema Theatre Workers Act,
including the Inter-State Migrant Workmen (Regulation of 1981
Employment and Conditions of Service) Act, 1979. The Code SECTION 59 OF CODE ON OCCUPATIONAL SAFETY,
contains provisions similar to the 1979 Act regarding HEALTH AND WORKING CONDITIONS PROVIDES FOR
registration of establishments, licensing of contractors FACILITIES TO INTER-STATE MIGRANT WORKERS.
and the inclusion of terms and conditions on hours of
It shall be the duty of every employer of an establishment
work, wages and amenities. Further, both the old Act and
employing inter-State migrant worker in connection with the
the proposed Code envisage the payment of a
work of that establishment -
displacement allowance and a journey allowance to inter-
State migrant workers. • to ensure suitable conditions of work to such worker
having regard to the fact that they are required to work in
(vi) Concerns highlighted by Labour Unions & Activists -
a State different from their own State;
However, some activists fear that specific safeguards
given to migrant workers may be lost as a result of • in case of fatal accident or serious bodily injury to any such
consolidation of labour laws.Even the labour unions feel worker, to report to the specified authorities of both the
that preserving separate enactment and enforcing it well States and also the next of kin of the worker;
is a better option than subsuming it under a larger code. • to provide and maintain suitable residential
THE CODE ON OCCUPATIONAL SAFETY, HEALTH AND accommodation to such worker during the period of their
WORKING CONDITIONS BILL, 2019 employment;
• to provide the prescribed medical facilities and periodical

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

Governance
• Their rights must be entailed in detail along with suitable a home-based worker, or as a temporary or casual worker,
authorities to whom they can approach in case of violation or as a migrant worker, or workers employed by
of their rights by the contractor or state governments. households including domestic workers, with a monthly
• A specific provision of compulsory payment of at least wage of an amount as may be notified by the Central
three months must be provided in case they are Government and State Government.
retrenched from their work without due notice. • Social Security Benefits – Both the Central and State
• Government must provide for a mechanism to ensure that governments shall provide certain social security benefits
number of inter-state migrant workers must be registered to the workers of the unorganised sector. The Central
with suitable district authorities specially assigned for this Government may formulate suitable welfare schemes for
purpose. life and disability cover, health and maternity benefits, old
age protection whereas the State Government can
• Having exact count of inter-state migrant workers working
formulate schemes for provident fund, employment injury
in different cities will not only help the government in
benefit, housing, educational schemes for children, skill
keeping track of workers but will also allow the
upgradation of workers, funeral assistance and old age
government to be better prepared in case of any future
homes for the unorganised workers.
epidemic or emergency situation which may trigger
reverse migration of such workers. • Funding of the Scheme - Any scheme notified by the
Central Government may be
THE UNORGANISED WORKERS’ SOCIAL SECURITY
 wholly funded by the Central Government, or
ACT, 2008
 partly funded by the Central Government and partly
Objective – It aims to provide for the social security and
funded by the State Government
welfare of unorganised workers. This Act defines some
important terms like unorganised sector, unorganised worker  partly funded by the Central Government, partly funded by
and wage worker. Let us go through these definitions to the State Government and partly funded through
understand them completely. contributions collected from the beneficiaries of the
scheme or the employers
• Unorganised Sector - means an enterprise owned by
individuals or self-employed workers and engaged in the National Social Security Board – Chaired by Union Minister
production or sale of goods or providing service of any of Labour and Employment, the board shall recommend
kind whatsoever, and where the enterprise employs less suitable schemes to the central government for the welfare
than 10 workers. of workers of unorganised sector. The Board shall also
advise, monitor and review the implementation of the
• Unorganised Worker means a home-based worker, self-
schemes including progress of registration and issue of
employed worker or a wage worker in the unorganised
identity cards to the unorganised workers and record keeping
sector and includes a worker in the organised sector who
functions performed at the State level for such unorganised
is not covered by any of the Acts mentioned in Schedule II
workers.
to this Act.
State Social Security Board – Chaired by Minister of Labour
• Schedule II includes The Workmen's Compensation Act,
and Employment of the concerned State, the board shall
1923; The Industrial Disputes Act, 1947; The Employees'
perform similar functions as performed by National Board
State Insurance Act, 1948; The Employees' Provident Funds
although at state and district level.
and Miscellaneous Provisions Act, 1952; The Maternity
Benefit Act, 1961 & The Payment of Gratuity Act, 1972. Record Keeping by District Administration – The record
keeping functions for the unorganised sector shall be
• Wage Worker means a person employed for
performed by the District Administration. However, state can
remuneration in the unorganised sector, directly by an
also direct such record keeping exercise to be performed by
employer or through any contractor, irrespective of place
District Panchayat in rural areas and the Urban Local Bodies
of work, whether exclusively for one employer or for one
in urban areas.
or more employers, whether in cash or in kind, whether as

Governance
Workers Facilitation Centre – The State Government may unemployment,welfare of labour including conditions of work,
set up such centre to disseminate information on available provident funds, employers' liability, workmen's compensation,
social security schemes for the unorganised workers, invalidity and old age pensions and maternity benefits” have
facilitate the filling, processing and forwarding of application been provided under Entry 22, 23 and 24 of Concurrent List
forms for registration of unorganised workers, assist under Seventh Schedule of the Indian Constitution. Some
unorganised worker to obtain registration from the District states have amended provisions of Factories Act, 1948 for
Administration and facilitate the enrollment of the registered more rigorous working hours without due consideration of
unorganised workers in social security schemes. worker’s human right or other hardships. So, in this regard,
Eligibility for registration and social security benefits - first of all let us understand certain provisions of The
Every unorganised worker shall be eligible for registration if Factories Act, 1948 to understand what changes has been
they have completed fourteen years of age and must self- proposed by different state governments in the Factories Act
declare in the application that they are unorganised and other Acts on Labour Laws. Then, we shall try to
workers. The district administration upon registration of understand the impact of such changes on the rights of
such unorganised worker shall issue an identity card which workers.
shall be a smart card carrying a unique identification number THE FACTORIES ACT, 1948
and shall be portable.
The Act regulates working conditions in the factories and
Way Forward – Inter-state migrant workman does not only industries of India and also provides for working hours of
get statutory recognition through central legislation of 1979 adults including women, adolescents and children,
but are entitled for social security benefits as per 2008 employment of young persons and children in factories and
legislation. Now, after the migrant crisis post COVID-19, the also certain penalties. The Act defines a child as someone
government at centre and states could have utilised the who has not completed 15 years of age whereas Adolescent
provisions of these two Acts to extend helping hands to the means a person who has completed his/her 15 years but has
migrants who had lost their livelihood because of economic not completed 18 years of age.
shutdown. So, they started their long walk towards their
Factory – A premises can be said to be a factory –
home bracing difficulties on their way. However, even now,
• If it employs 10 or more workers for the last 12 months
once these migrant workers have reached back to their
where manufacturing process is carried with the help of
villages, the central government must direct the district
power.
administration to implement The Unorganised Workers’
Social Security Act, 2008 by registering such unorganised • If it employs 20 or more workers for the last 12 months
workers and issuing them identity cards as per the provisions where manufacturing process is carried without the aid of
of the Act. This will help in legal recognition of such power.
unorganised workers in government rolls and government • However, a Mine operating under the Mines Act, 1952
would be better served to provide social and economic does not constitute factory.
benefits to such workers in future events of similar
SECTION 5 - POWER TO EXEMPT DURING PUBLIC
pandemic.
EMERGENCY
• If there is a public emergency, the State Governmentcan
2. DILUTION OF LABOUR LAWS BY CERTAIN exempt any factory from all or any of the provisions of this
STATES Act. (Except Section 67 - Prohibition of employment of
young children)
Seeing reverse migration of workers back to their native state
and using this opportunity to boost economic activities in • As per Section 5, “Public Emergency” means a grave
states, some state governments has proposed certain emergency whereby the security of India or of any part of
relaxation in labour laws. These steps have been taken by the the territory thereof is threatened, whether by war or
state governments as“Trade unions, industrial and labour external aggression or internal disturbance.
disputes, Social security and social insurance employment and

Governance
• However, the term public emergency in Section 5 of than four and half hours in any day and shall not work
Factories Act, 1948 does not mention any kind of disaster during night.
or epidemic.
CHANGES BROUGHT INTO LABOUR LAWS BY
• Thus, different state governments under Section 5 of the DIFFERENT STATES
Factories Act, 1948 has relaxed certain protection and
►Uttar Pradesh
working conditions of workers granted under the Act in the
interest of reviving the economy. 1. UP Government issued a notification under Section 5 of
The Factories Act, 1948 whereby it directed that all the
WORKING HOURS OF ADULTS & WOMEN
factories shall be exempted from various provisions
A. Daily & Weekly Working Hours - The Factory Act relating to weekly hours, daily hours, overtime, intervals
provides for Weekly working hours as well as daily etc. of adult workers under section 51, 54, 55, 56 and 59 of
working hours. So, no adult worker shall be required or the Factories Act.
allowed to work in a factory for more than 48 hours in any
2. Further, the UP Government has also enhanced daily and
week unless he is paid for extra time. For daily working,
weekly working hours to 12 hours and 72 hours
the act stipulates that no worker shall work on a given day
respectively. Earlier the daily and weekly working hours
for more than 9 hours. The Act also lays down provisions
were 9 hours and 48 hours. Even the half-hour interval has
for weekly holidays, extra wages for overtime, leave with
been increased from earlier 5 hours to six hours. So, the
wages, provisions of night shifts and measures for health,
employer can make the labour work for 6 hours at a
hygiene and safety.
stretch which earlier was 5 hours. However, the wages
B. Restriction on Working Hours - The Act also restricts have been increased proportionately.
working hours for women as women cannot work in any
3. UP Government has also issued an ordinance titled Uttar
factory premises after 7 PM in the evening and until 6 AM
Pradesh Temporary Exemption from Certain Labour Laws
in the morning. So, women can only be employed in
Ordinance, 2020. The Ordinance aims to exempt all
factory premises between 6AM and 7 PM.
factories and manufacturing establishments from all
C. Intervals for Rest - The periods of work of adult workers labour laws for a period of three years’ subject to
in a factory each day shall be so fixed that no period shall fulfillment of certain conditions.
exceed 5 hours and that no worker shall work for more
4. So, this ordinance issued by the UP Government in a way
than five hours before he has had an interval for rest of at
prevails over all the legislations made by the Central
least half an hour.
Government. Now, this in itself seems draconian and
EMPLOYMENT OF CHILD & ADOLESCENTS arbitrary and goes against the spirit of the federal
(i) Factory cannot employ child below 14 years -Any child structure as envisaged in the constitution of India. All
who has not completed 14 years of age shall not be labour laws of the Union cannot be suspended by the state
allowed to work in any factory. through an ordinance. Further, such an ordinance goes
against the human spirit of workers as it suspends all
(ii) Certificate of Fitness for Adolescents -However, if a
social security allowed through different legislation of the
young person who has crossed 14 years of age wish to
centre and tramples upon the basic and fundamental
work in the factory, then he/she must obtain Certificate
rights of its own citizens.
of Fitness provided by a certified Surgeon. Such Certificate
of Fitness shall be valid only for a period of 12 months 5. The changes proposed in labour laws are in the interest of
and needs to be renewed before its expiry. Such industries as it gives them more flexibility regarding hiring
certificate of fitness can also be revoked by the Certifying and firing of employees, determining their working hours
Surgeon if in his opinion the young person is no longer fit and reducing their social security benefits. So, overall the
to work in the factory. legislations proposed goes against the interests and rights
of workers and labourers.
(iii) Child not to work during Night -No child shall be
employed or permitted to work, in any factory for more

Governance
►Similar changes proposed by Gujarat, Haryana, Himachal (b) Empowerment of Employers at the cost of Hapless
Pradesh, Uttrakhand, Punjab and Madhya Pradesh Workers - The drastic and brazen steps taken by state
• The Government of Gujarat through notification of April governments further increases the hardships of the
workers employed in factories or industries as it gives the
2020 has directed that all factories registered under the
Factories Act, 1948 shall be exempted from various factory owners absolute right without any responsibility to
hire or fire workers at will, to pay them such
provisions related to weekly hours, daily hours, interval for
rest etc. for adult workers and Spread over hours and has remuneration as per their choice and to demand larger
amount of work at lesser pay as the working hours has
also extended working hours to 12 hour per day with half
hour interval after 6 hours of working at a stretch. been increased by state governments.
(c) Driving Down Wages -The changes might actually drive

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

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

Governance
state governments of UP, MP and Gujarat. Let us wait for human suffering or damage to, and destruction of,
the final verdict of the Supreme Court. property, or damage to, or degradation of, environment,
and is of such a nature or magnitude as to be beyond the
coping capacity of the community of the affected area.
3. USE OF DISASTER MANAGEMENT ACT TO • Constituting NDMA - Section 3 of the Act establishes
CURB MOVEMENT ACROSS STATE BORDERS National Disaster Management Authority (referred as
th National Authority) chaired by the Prime Minister of India.
On 30 May, 2020, notification pertaining to extension of
th
lockdown in containment zone upto 30 June 2020 was • Powers & Functions of National Authority - Section 6
issued by Ministry of Home Affairs. The notification provides for the powers and functions of National
mentioned that in exercise of powers under Section 6 (2) (i) of Authority. Section 6 (2) (i) mentions that the National
Disaster Management Act, 2005, National Disaster Authority may take such other measures for the
Management Authority (NDMA) has directed to issue an prevention of disaster, or the mitigation, or preparedness
order to extend the lockdown in Containment Zones upto and capacity building for dealing with the threatening
th
30 June, 2020 and to re-open prohibited activities in a disaster situation or disaster as it may consider necessary.
phased manner in areas outside the Containment Zones. • National Executive Committee - Section 8 provides for
Further guidelines have been issued pertaining to relaxing of constitution of National Executive Committee to assist the
lockdown as per Section 10 (2) (l) of The Disaster National Authority in the performance of its functions
Management Act, 2005. So, we understand that apart from under this Act. As per this provision, Union Home
Epidemic Diseases Act, 1897 (which has been recently Secretary shall be the ex officio Chairperson of the National
amended), the government has been using National Disaster Executive Committee.
Management Act, 2005 to issue directions to the state
• Allocation of Business Rules - As per Second Schedule of
governments and various authorities to contain the spread of
Allocation of Business Rules, 1961, Ministry of Home
novel corona virus as the situation has been considered as a
Affairs is mandated to look after the matters relating to
disaster by the Ministry of Home Affairs.
loss of human life and property due to all natural and
• So, first of all let us go through the legal nuances of man-made calamities, other than drought or epidemics.
decision making by the Central Government to implement The Disaster Management (DM) Division is the nodal
national lockdown. division in Ministry of Home Affairs (MHA) for disaster
• Then we shall look into Report onCrisis Management by management. So, the government has termed the present
Second Administrtative Reform Commission. This deals epidemic caused by novel corona virus a disaster.
with situations and crisis which led to the enactment of • Powers & Functions of National Executive Committee
Disaster Management Act, 2005 and other (NEC) - Section 10 provides for the powers and functions
nd
recommendations of 2 ARC on Crisis Management of NEC. As per Section 10(2)(l) - National Executive
including locating Disaster and Epidemics in the Seventh Committee may lay down guidelines for, or give directions
Schedule of the Indian Constitution. to the concerned Ministries or Departments of the
• After understanding the legal nuances and certain Government of India, the State Governments and the State
nd
recommendations of 2 ARC, we shall try to understand Authorities regarding measures to be taken by them in
the social issues pertaining to inter-state migrant workers response to any threatening disaster situation or disaster.
and the problems faced by such workers due to loss of IMPORTANT: PRELIMS POINTERS – THE DISASTER
jobs and extension of national lockdown.
MANAGEMENT ACT, 2005
A - Legal Provision - Disaster Management Act, 2005  NDMA Chairperson of National Disaster Management
Authority - Prime Minister
• Disaster – The Act has defined disaster as a catastrophe,
mishap, calamity or grave occurrence in any area, arising  National Executive Committee to assist NDMA -
from natural or man-made causes, or by accident or chairperson –Home Secretary. National Executive
negligence which results in substantial loss of life or

Governance
Committee can constitute sub-committee for the efficient • Thus, a crisis is an unstable or crucial time or state of
discharge of its functions. affairs in which a decisive change is impending and there
 National Plan - plan for disaster management for the is a distinct possibility of a highly undesirable outcome.
whole of the country to be called the National Plan • In the context of public policy, an event or occurrence can
 The National Plan shall be prepared by the National be termed as a crisis situation if it poses a threat to
Executive Committee having regard to the National Policy human life and property or causes or threatens to cause
and in consultation with the State Governments and large-scale disruption of normal life.
expert bodies or organisations in the field of disaster • Thus, ‘crisis’ may be defined as “an emergency situation
management to be approved by the National Authority. arising out of natural or human activity which poses a threat
 SDMA Chairperson - Chairperson of State Disaster to human life and property or leads to large scale disruption
Management Authority (SDMA) - Chief Minister of normal life”.
 State Executive Committee - Chief Secretary to the State • This emergency situation may arise suddenly or it may be
Government - Chairperson an outcome of a simmering problem or issue, which could

not be foreseen or stopped earlier.
 State Plan - There shall be a plan for disaster
management for every State to be called the State Disaster • A crisis may degenerate into a disaster if it is not properly
Management Plan. The State Plan prepared by the State managed resulting in avoidable loss of human life and
Executive Committee and shall be approved by the State property on a large scale.
ND
Authority. TYPES OF CRISIS AS PER 2 ARC
 District Disaster Management Authority - Collector or Crises can be classified into the following categories:
District Magistrate or Deputy Commissioner shall be the
• Crises caused by acts of nature. These can further be
Chairperson, the elected representative of the local
divided into the following sub-categories:
authority who shall be the co-Chairperson; In the Tribal
• Climatic events: cyclones and storms (associated sea
Areas, as referred to in the Sixth Schedule to the
Constitution, the Chief Executive Member of the District erosion), floods and drought and
Council of autonomous district, shall be the co- • Geological events: earthquakes, tsunamis, landslides and
Chairperson. avalanches
 District Plan - There shall be a plan for disaster • Crises caused by environmental degradation and
management for every district of the State. disturbance of the ecological balance
 National Institute for Disaster Management • Crises caused by accidents. These, again, can be further
classified into: industrial and nuclear mishaps and fire
 National Disaster Response Force - specialist response
related accident.
to a threatening disaster situation or disaster.
 National Disaster Response Fund - to meet any • Crises caused by biological activities: public health crises,
epidemics etc.
threatening disaster situation or disaster; an amount
deposited after due appropriation made by Parliament by • Crises caused by hostile elements: war, terrorism,
law, includes any grants made by person or institution. extremism, insurgency etc;
• Crises caused by disruption/failure of major infrastructure

B - Report on Crisis Management by Second Adminis-
facilities including communication systems, large-scale
trtative Reform Commission
strikes etc; and
WHEN CRISIS BECOMES DISASTER • Crises caused by large crowds getting out of control.
• According to Oxford dictionary, the term crisis means a
CHANGE IN APPROACH TO MANAGE CRISIS AS PER
time of great danger, difficulty, or confusion when
THE ‘YOKAHAMA DECLARATION’ OF 1994
problems must be solved or important decisions must be
made.

Governance
• The ‘Yokahama Declaration’ of 1994, enunciated during • The Yokohama ‘Declaration’ elucidates how prevention
the International Decade for Natural Disaster Reduction and mitigation are the keys to minimize, if not prevent,
signaled a radical shift in disaster management. The earlier distress caused by natural disasters and thus form the
practice of disaster management being regarded as the bedrock of integrated disaster management.
most efficient manner of responding to acute emergencies • The subsequent Hyogo Framework of Action,
was replaced by a ‘holistic’ approach embracing all aspects recommended a comprehensive prevention and mitigation
of crisis management that is response, prevention, strategy, with the ultimate goals of protecting people and
mitigation and preparedness. structures from disasters and increasing the effectiveness
of response and recovery.
HIGH POWERED COMMITTEE ON DISASTER • In 1999, Indian Government constituted a High Power
MANAGEMENT, 1999 Committee (HPC) on Disaster Management. The mandate
of the HPC was to suggest institutional measures for
• A paradigm shift in the approach to crisis management
effective management of both natural and man-made
from relief and rehabilitation to prevention and mitigation
disasters, in the country.
and towards a holistic and comprehensive framework,
took place with the United Nations deciding to observe • After the devastating earthquake of Gujarat in January,
the 1990s as the International Decade of Natural Disaster 2001, the HPC submitted its final report in October 2001
Reduction (IDNDR). outlining a vision to create a disaster-free India through
adherence to the culture of preparedness, quick
response, strategic thinking and prevention.

Governance
• The HPC came out with a large number of • While the post-Gujarat earthquake reform initiatives were
recommendations, dealing with the constitutional and still in their initial phase of implementation, a devastating
legal framework, organizational structures and tsunami hit many countries on the rim of the Indian
institutional mechanism in the overall disaster Ocean including several states of India in December,
management system of the country. 2004.
IMPORTANT POLICY DECISION TAKEN BY INDIAN • This experience brought home the necessity of further
GOVT. POST JANUARY 2001 GUJARAT EARTHQUAKE reforms in the system. Taking the institutional reform
TO REVAMP DISASTER MANAGEMENT IN INDIA process further, the Union Government decided to
formulate comprehensive disaster management
• Disaster management with reference to rapid onset
legislation, providing for a legal and institutional
disasters was moved from the purview of the Ministry of
framework of crisis management at all levels in the
Agriculture to the Ministry of Home Affairs. The Ministry
country.
of Agriculture retained the responsibility for droughts, pest
• Thus, The Disaster Management Bill was introduced in
attacks and hailstorms.
Parliament in May 2005 and was finally enacted in
• State Governments were advised to reorganize their Relief
December 2005 as an Act of the Indian Government.
& Rehabilitation Department into a separate Disaster
Management Department.
• State Governments were further advised to constitute

State Disaster Management Authority under the
Chairmanship of State Chief Ministers and the District
Disaster Management Committee under the
Chairmanship of District Collectors.
• A specialized force comprising eight battalions to be

named as National Disaster Response Force to be
constituted with state-of-the-art equipment and training to
respond to various natural and man-made disasters.
• An advanced fail-proof disaster communication network

was set up through Emergency Operation Centres (EOC)
at national, state and district levels.
• The National Institute of Disaster Management was set

up at Delhi for training, capacity building, research and
nd
documentation on different aspects of disaster 2 ARC ON ‘DISASTER MANAGEMENT’ AS PART OF
management in the country. CONCURRENT LIST
• Basics of disaster management to be introduced in • The Second Administrtative Reform Commission in its
school education, disaster resistant technologies to be Report on Crisis Management has specifically mentioned
introduced in engineering and architecture courses and that the subject of disaster management does not find
emergency health management to be introduced in mention in any of the three lists in the Seventh Schedule of
medical and nursing education. the Indian Constitution.
• A community based disaster risk management • A subject not specifically mentioned in any of these lists
programme to be launched in multi-hazard districts comes under the Residuary Powers of the Union under
throughout the country. entry 97 of the Union List. According to one view,
Parliament therefore has the competence to legislate on
WHAT MADE THE LEGISLATION ON DISASTER
this subject. However, by practice and convention the
MANAGEMENT SEE THE LIGHT OF THE DAY?

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

Governance
controlling of the epidemic is done mostly by the Ministry scenario became challenging without much adequate state
of Home Affairs through Disaster Management Act. support.
• While surveillance and management of epidemics are the • The centre and states amid much protest by migrants
responsibility of public health professionals, it is clear that started arranging for trains and buses for the migrants to
a particularly severe outbreak could overwhelm the go back home. However, most of such efforts were mired
capacities of our health infrastructure. The Ministry of in centre-state rivalry and political slugfest.
Health and Family Welfare and the State Governments • Thus, overall it can be said that the workers’ right to go
must ensure that ‘standard operating procedures’ are home was curbed using the Disaster Management Act,
devised to assign roles and responsibilities of agencies and 2005.Further, no provisions were made by the state
personnel outside the line organisations wherever a authorities for the food, shelter, or medical relief for such
situation so warrants. migrant workers. Wage payments were not ensured, and
C-Problems faced by inter-state migrants due to the state’s cash and food relief did not cover most
workers.
extension of Lockdown
WAY FORWARD
►What are the problems faced by inter-state migrant
workers? (i) The migrants have faced and will continue to face apathy
from the central and state governments. The immediate
Now here are two sets of problems encountered by the
problems are about their food security and logistics for
migrant workers in the informal sector who mostly comprise
them to travel to their native place.
of construction workers, painters, delivery boys, cooks,
cleaners and factory workers, among others. (ii) These workers are the backbone of the economy and
must be treated like humans with compassion and not
• Problem 1 – The epidemic has resulted in their loss of job
with contempt.
and hence no source of livelihood. This is more so for
those workers living in mega urban cities like Mumbai and (iii) In the longer run, say three months if these workers do
Delhi. not return back for work, then it will create another set of
challenges for the state and central government which
• Problem 2 – These migrant workers and labourers who do
they must understand and be prepared for.
not had any source of income for their sustenance
because of lack of economic activities are travelling back to (iv) This is because these migrant workers (by certain
their home state in whatever ways possible. standards) consist of 10 per cent of India’s GDP and hence
cannot be taken granted for especially in times of
• Prior to start and extension of national lockdown, the
rebuilding our economy after the epidemic.
plight of daily wage earners, migrant workers and those in
the informal sector were not given due consideration by (v) The centre and state must create enabling environment
the government and it resulted in economic hardship for for their safety, livelihood and health and must ensure
such people because of sudden closure of all economic that their basic human rights and social security benefits
activities by the state. are not taken away by their employers.
• Now, most of such workers and labours are inter-state

migrant workers belonging to different states. So, once 4. IMPORTANCE OF SUPREME COURT IN
national lockdown was extended, their daily livelihood
PROTECTING FUNDAMENTAL RIGHTS OF
became a big challenge and because of which they started
to reverse migrate back to their native villages far away VULNERABLE SECTION OF THE SOCIETY
from most cities in whatever way possible. “In the midst of the executive imposed Covid-19 lockdowns, the
• Extension of lockdown by centre and states became a Hon’ble Supreme Court cannot retreat into a self-effacing
barrier for such migrants to travel across states. So, deference, leaving millions of Indian citizens, especially those
freedom of movement for migrant workers in such who are poor, vulnerable and impoverished, to the mercy of the
executive, reminding us of ADM Jabalpur when detenues were left

Governance
to the tender mercy of the executive with “Diamond bright labourers working in the cities was triggered by panic created
Diamond hard” hope that something would be done,” by fake news that the lockdown would continue for more than
3 months”. However, this was not true as the migrants
IMPORTANCE OF SUPREME COURT
wanted to go travel back home because of the following
1. The above mentioned paragraph is a part of the letter
reasons -
written by senior advocates to the Chief Justice of India
• They had no source of income as most of these migrant
and other Justices reminding the Supreme Court of its
workers were employed on daily wage or were working in
constitutional duty to protect the fundamental rights of
the informal sector;
hapless migrant workers who are forced to travel back to
their native village because of lack of any source of • They had no idea about the time or period for which the
livelihood in conditions not suitable for humans. lockdown would have continued.
2. Supreme Court in an earlier decision, had rejected the • So, considering both these aspects, they considered it wise
Public Interest Litigation filed which sought Supreme enough to travel back bracing so many difficulties.
Court’s intervention to help migrant workers in providing ►What could have been done by SC?
them food, shelter and a safe transport facility to their
• Now, the Supreme Court could have asked the central and
home by the government. st
state government back on 31 March to make necessary
3. So, in this part, let us go through the reasons given by arrangements for the migrant workers when the number
Supreme Court in rejecting the earlier petition and also of COVID Positive cases in India was comparatively less.
the importance of Supreme Court in protecting Thus, migration of workers by the government could have
fundamental right of citizens. been arranged in a better and organised way.
 Article 142 of the Indian Constitution empowers the • Rather, the migrants were put in cramped conditions for
Supreme Court to pass such orders as is necessary for weeks and this further aggravated the risk of infection
doing complete justice in any cause or matter pending without proper amenities.As per several reports, more
before it and such order shall be made enforceable than 90 per cent of migrant workers did not receive
throughout the territory of India in such manner as may government rations in many states and were suffering
be prescribed by or under any law made by Parliament. from dire food shortages. So, the migrants which were
DECISIONS OF SUPREME COURT – CHANGE OF HEART willing to go home as early as March were cramped up for
AT LAST food and basic necessities. This in itself can be equated
with abrogation of fundamental rights of the vulnerable
►Late March, 2020
and poor sections by the Supreme Court.
• In the case of Alakh Alok Srivastava v. Union of India,
►Early May
while hearing a PIL on the plight of the migrant workers,
th
Supreme Court considered the Status Reportof the • On 15 May, a three-judge bench of the Supreme Court
government filed by the Solicitor General. The report dismissed an application seeking immediate directions to
referred to the government’s circular of 29

th
March all the district magistrates to identify the migrant workers
whichprohibited movement and transportation of migrant who are walking on roads, provide them with appropriate
labourers and directed the authorities to shift such food and shelter facility and facilitate their travel back to
migrant labourers to relief shelter homes or in relief their home states free of cost.
camps. • Here again, the Supreme Court could have directed the
• The Solicitor General submitted in the Court that as of 31

st district authorities to do the needful but did not show
March, no migrant person was walking on the roads in an much sympathy for the migrant workers. Rather, they
attempt to reachtheirhome. Now this reply was clearly far were left to their situation based on executive belief that
away from truth but still the Court was satisfied by the things will be taken care off.
steps taken by the Central Government to combat COVID-

19 and proceeded to observe that “the migration of

Governance
►Late May – Directions given by Supreme Court dignity of individualsare preserved and state does not
abdicate from its duty of social welfare especially in times
• Supreme Court after months of silence on the issue of
migrant crisis, decided to take suo moto cognizance of the of crisis and disasters.
matter. SUPREME COURT – DEFENDER OF FUNDAMENTAL

• Supreme Court directed that fare for travel of migrants RIGHTS
stranded across India should not be charged by centre or ►Past History of SC in defending dignity of humans
state governments.
• Earlier in the past cases, Supreme Court has defended the
• Originating stations must provide meal and water at the cause of fundamental rights and has not only provided
station whereas it must be the responsibility of Indian guidelines but also given path breaking judgments which
Railways to provide meal and water to the travellers during still holds the test of time in case of legislative or executive
the entire journey. vacuum. Some of the examples are Basic Structure
• States should also oversee registration of migrant workers Doctrine, Vishakha Guidelineson sexual harassment in the
and ensure they are made to board the train or bus at an workplace, Various Judgments on Environment Protection,
early date and the government must give adequate Coining Absolute Liability Law against environmental
publicity to the steps it proposes to take on this account. pollution, Right to Food, Right to Privacy as part of Article
21, Fundamental Rights for LGBT Community, Judgments
• Those who are found walking on the roads shall be taken
on Land Reforms and Ninth Schedule within Judicial
to shelters immediately and provided with food.
Review etc.
• The directions also included asking states to bring on
• In the case of Hussainara Khatoon v Home Secretary,
record necessary details regarding the number of migrants
State of Bihar, Justice Bhagwati allowed a postcard written
waiting for a transport, plan for transportation and
to him to be treated as a Public Interest Litigation (PIL) and
registration of the labourers.
inaugurated the idea of epistolary jurisdiction (where
►Did the Court fail in performing their constitutional
petitions were entertained via mere letters) in India. The
duties?
case pertained to inhuman conditions of prisons and
The letter stated that Supreme Court has a pivotal undertrials languishing in jail.
constitutional role in protecting and safeguarding the
• Thus, Public Interest Litigation serves as a legal tool at the
fundamental rights and freedoms of the citizens of this
hands of all citizens alike and it can be used in a Court of
country, and particularly the vast swathes of our population
Law in case of injustice done by the executive. PIL has also
who eke out a living near or below the poverty line or
been used to ensure the protection of the rights of the
minimum wages, and are even in normal times barely able to
poor, downtrodden and vulnerable, and “any member of
survive with dignity and respect.
the public” can seek appropriate directions by the High
The Supreme Court’s constitutional role and duty assumes Court or Supreme Court on their behalf.
even greater importance in the time of a crisis, such as the
• Government is a party in majority of legislations and
present when the entire country and its economy was “locked
government always defends their case to the best of their
down” from 24th March by an order of the Central
lawyering abilities. Despite this, it is the fundamental and
Government.
constitutional responsibility and duty of the Supreme
• Amid the executive-imposed COVID-19 lockdowns, the Court of India to decide cases as per its merit irrespective
Court cannot retreat into self-effacing deference, leaving of the parties in dispute. This has been and will further
millions of Indian citizens, especially those who are poor strengthen our firm belief and resolve in the values of
and vulnerable, to the mercy of the executive. justice administered by India’s top Court.
• This Court has the power bestowed by the Constitution of
India under Article 142 to undertake any measure to do
complete justice. Thus, the Court needs to fulfil its
constitutional obligation to ensure right to life, liberty and

Governance
POLITY VERSION OF
• The Court directed the State Government to issue an order
directing all private hospitals in Visakhapatnam to accept
STYRENE GAS LEAK

patients showing symptoms of gas leak.
• The State Government was directed to appoint a

#Judgement # Liability Committee of officers not below the rank of Principal
Secretaries to monitor the activities and file compliance
report within a week.
• The Court asked the State Legal Services Authority to

appoint an officer an appropriate officer from the District
IN NEWS Legal Services Authority, Visakhapatnam to supervise the
On 7
th
May, 2020, Styrene Monomer (SM) gas leaked in activities and directed the District Judge to coordinate with
Vishakhapatnam from South Korean Company LG Polymers state officials on the issue. The Court also appointed
India Private Limited causing severe injury and death of Amicus Curiae in the case. Amicus Curiae is considered as
residents of the city. The issue of Styrene Gas Leak was friend of the court. He/She is a person who is not party to
immediately taken up by Andhra Pradesh High Court and the case but assist the Court with their intellectual prowess
subsequently by National Green Tribunal and National Human in court proceedings.
Rights Commission. Another case was also filed in Supreme DECISION OF NATIONAL GREEN TRIBUNAL (NGT) –
Court of India. So, parallel judicial proceedings have been 8TH MAY, 2020
initiated against the gas leak. Number of Enquiry Committees
• The National Green Tribunal also took up the matter of
has also been constituted at different level by the Central
styrene gas leak suo moto. NGT stated that it had power
Government, State Government of Andhra Pradesh, by
under Section 14 and 15 of National Green Tribunal Act,
National Green Tribunal and others.
2010 to take up the matter of Styrene Gas Leak in Vizag.
In this regard, let us go through the important highlights of
• NGT’s suo moto power to take up the case was also legally
the judgment given by High Court of Andhra Pradesh, National
challenged before the Supreme Court. However, NGT has
Green Tribunal as well as Supreme Court of India.
said, “NGT has the purpose and power to provide relief and
IMMEDIATE DECISION OF ANDHRA PRADESH HIGH compensation to victims of environment damage, restitution
COURT of property, and restoration of environment. To effectuate this
• The Andhra HC took on its own motion i.e. suo moto took purpose, NGT has wide powers to devise its own procedure. In
cognizance of the gas leak. appropriate circumstances, this power includes the power to
institute suo-moto proceedings and not keep its hands tied in
• The High Court noted that Styrene has been listed as
the face of drastic environmental damage and serious
Hazardous and Toxic Chemicals as per The Chemical
violation of right to life, public health and damage to
Accident (Emergency Planning, Preparedness, and
property”.
Response) Rules of 1996. These Rules have been
prepared under TheEnvironment (Protection) Act, 1986. • Let us go through Section 14 and 15 of National Green
Tribunal Act, 2010 to find out the powers of NGT and then
• Accordingly, the HC directed the state government to take
we shall carry on further with the rest of the judgment.
"immediate steps" to bring down the effect of styrene gas
leak by sprinkling water or other substances which may RELATED INFORMATION: NATIONAL GREEN TRIBUNAL
curtail further damage and its devastating impact. ACT, 2010
• The Court further requested deployment of fire services Aim & Purpose – It establishes the National Green Tribunal
from nearby areas to curtail immediate damage to human for the effective and expeditious disposal of cases relating to
life and property and asked to check for any subsequent environmental protection and conservation of forests and
gas leak from the factory premises. other natural resources including enforcement of any legal
right relating to environment and giving relief and

Governance
compensation for damages to persons and property. Section authorizing and regulating such activities may also be
14 and 15 of NGT Act comes within Chapter III which deals accountable for their lapses.
with Jurisdiction, Powers and Proceedings of the Tribunal. • The Tribunal stated that it is its statutory obligation to
Section 14 - Tribunal to settle disputes: The Tribunal shall provide relief and compensation to the victims of
have the jurisdiction over all civil cases where a substantial “environmental damage”, and also to restore damaged
question relating to environment (including enforcement of property or environment to their former position.
any legal right relating to environment), is involved and such • Accordingly, NGT has issued notice to Andhra Pradesh
question arises out of the implementation of the enactments State Pollution Control Board, District Magistrate,
specified in First Schedule. Vishakhapatnam, Central Pollution Control Board (CPCB),
First Schedule of NGT Act, 2010 provides for the following Ministry of Environment, Forests & Climate Change
enactments – (MoEF&CC) and LG Polymers India Pvt., Limited.
 The Water (Prevention and Control of Pollution) Act, 1974 • NGT constituted Five Member Committee
 The Water (Prevention and Control of Pollution) Cess Act, • The National Green Tribunal (NGT) further directed LG
1977 Polymers India to deposit an initial amount of Rs. 50
 The Forest (Conservation) Act, 1980 crorewith the District Magistrate, Vishakhapatnam. The
amount is being fixed is with respect to the financial worth
 The Air (Prevention and Control of Pollution) Act, 1981
of the company and the extent of the damage caused by
 The Environment (Protection) Act, 1986 the gas leak which killed and severely injured number of
 The Public Liability Insurance Act, 1991 persons.
 The Biological Diversity Act, 2002 SUBSEQUENT JUDGEMENT OF ANDHRA PRADESH

RD
Section 15 - Relief, compensation and restitution: The HIGH COURT – MAY 23
nd
Tribunal may, by an order, provide –  In its later decision of 22 May, the Andhra High Court
 relief and compensation to the victims of pollution and ordered the State Government to seize the company
other environmental damage arising under the premises of the LG Polymers chemical plant at
enactments specified in the Schedule I (including accident Vishakhapatnam from where the leakage of styrene gas
occurring while handling any hazardous substance). occurred.
 for restitution of property damaged.  The Court also restrained the Directors of the Company
from leaving the country without the leave of the court.
 for restitution of the environment for such area or areas.
The Court ordered not to release surrendered passports of
• NGT stated that Styrene gas is a hazardous chemical as Directors of the Company without permission of the Court.
defined under Rule 2(e) read with Entry 583 of First Schedule
 The Court after noticing several lapses on account of
to The Manufacture, Storage and Import of Hazardous
functioning of the factory, has asked the government to
Chemical Rules, 1989. The Rules require on-site and off-
reply on the following issues –
site Emergency Plans to ensure prevention of damage.
There appears to be failure to comply with the said Rules  Functioning of LG Polymer without a valid Environmental
and other statutory provisions. Clearance from the Ministry of Environment, Forests and
Climate Change.
• Leakage of hazardous gas at such a scale adversely
affecting public health and environment, clearly attracts  Net worth of LG Polymers India Pvt. Ltd as per the
the principle of ‘Strict Liability’ against the enterprise Companies Act, 2013 and not as per book value
engaged in hazardous or inherently dangerous industry.  Transport of Styrene Monomer to South Korea without any
• Such an entity is liable to restore the damage caused valid permission and the person and authorities
under the Environment Law, apart from other statutory responsible for the same.
liability. The statutory authorities responsible for

Governance
QUESTIONS RAISED BEFORE THE SUPREME COURT proper care of such hazardous substance), if such hazardous
substance escapes from the premises thereby causing
• The jurisdiction and authority of NGT to take up the matter
damage to life or property of others.
of Styrene Gas Leak in Vishakhapatnam from LG Polymer
plant suo moto was challenged before Three Judge Bench However, there are certain exceptions under which
of Supreme Court. However, this challenge of jurisdiction defendant can run off his liability in cases of Strict Liability.
of NGT was rejected by the Bench stating that the issue of Same principle of Strict Liability was applied by NGT in the
jurisdiction should be raised before NGT and not before present case of Styrene Gas Leak when they invoked the
the Supreme Court. principle of Strict Liability against LG Polymer India Private
• After Andhra Pradesh High Court’s judgment of sealing the Ltd. as they had also held hazardous Styrene Monomer Gas
factory in Vishakhapatnam, the Supreme Court has within their factory premises in Vishakhapatnam.
permitted LG Polymers India Ltd to have restricted access ESSENTIAL CONDITIONS FOR STRICT LIABILITY RULE
at its sealed plant at Visakhapatnam in Andhra Pradesh,
Based on this judicial decision, the concept of strict liability
where there was a gas leakage and has asked the
came in vogue. There are certain essential conditions to be
company to provide a list of 30 personnel who could be
fulfilled to categorize a liability under strict liability.
allowed the entry.
• Things kept on one’s premises are “dangerous” and can
• Supreme Court directed that list of 30 individuals of LG
cause damage if it escapes.
Polymers must be provided to the District Collector.
• The dangerous thing kept must have escaped outside the
• Further, the issue of multiple committees was also raised
premises (despite no fault of the owner) and has damaged
before the Three Judge Bench as different Enquiry
other’s property, goods or person.
Committees have been constituted by NGT, by Central
Pollution Control Board, by State Government and also by • Use of such thing must be Non-natural for the land or not
National Human Rights Commission. normal in ordinary circumstances.
DIFFERENCE BETWEEN STRICT LIABILITY & EXCEPTIONS TO STRICT LIABILITY RULE

ABSOLUTE LIABILITY • By the plaintiffs own default - So, if the plaintiff suffers
Rule of Strict Liability is generally a principle of negligence damage by his own intrusion into the defendant’s
where damage is caused because of negligent act of others property, then he has no right to complain about the
and such damage must be compensated. With negligence, it damage so caused.
is always “unintentional fault” for which a person or • By Act of God - If an incident occurs due to an
institution is penalised and that is why it is also called “No unforeseeable event, which human body can’t have any
Fault Liability”. control over it, then in such circumstances the person
The rule of strict liability was laid down in the year 1868 in the cannot be held responsible for any liability arising or any
case of ‘Rylands vs. Fletcher. According to the rule of Strict incident occurs there out of it. Eg. Leakage of hazardous
Liability, in this case, it was laid down that any person keeping Gas due to Earthquake or Severe Storm etc.
any hazardous substance on his premises would be held • Consent of Plaintiff - Where the plaintiff has voluntarily
liable if that substance escapes from there and harms others. consented to suffer the harm for the common benefit of
At the point in time when the hazardous substance escapes both then at that situation the defendant won’t be held
causing damage to others, it would be irrelevant liable.
• whether the person holding hazardous substance had • Act by Third Party – If damage is suffered by the plaintiff
taken due care or not or because of an act done by any Third Party where the
defendant is not involved.
• whether the person was negligent or not.
ABSOLUTE LIABILITY
Thus, as per the Principle of Strict Liability, the person who
holds dangerous or hazardous substances in their premises • The rule of Absolute liability was laid down by the
would be held liable or accountable (even if he/she had taken Honourable Supreme Court of India in the case of M.C.

Governance
Mehta v Union of India famously referred as the Oleum appointee without any discretionary power at the level of
Gas Leakcase. state.
• This case was a landmark judgment case for the principle ALLOCATION OF BUSINESS RULES
of absolute liability. Absolute Liability Principle is a kind
• Article 77 of the Constitution of India mentions about
ofStrict Liability with No Exception.
Conduct of Government Business. Article 77 (3) -
• The Rule of Ryland V Fletcher applies only to the non- President shall make rules for the more convenient
natural use of land but the principle of Absolute Liability transaction of the business of the Government of India,
applies to even the natural use of land. and for the allocation among Ministers of the said
• So, If a person/organisation keeps dangerous/hazardous business.
substance within their premises which may be natural use • Thus, accordingly President has amended the Government
of such land but if such dangerous/hazardous substance of India (Allocation of Business) Rules, 1961 and has placed
escapes the premises, then the person or the organisation CWMA under the administrative control of Union Ministry
storing such hazardous substance shall be held liable of Jal Shakti.
under Absolute Liability Principle even though it was
RELATED INFORMATION: HISTORICAL BACKDROP TO
properly taken care of.
THE FORMATION OF MINISTRY OF JAL SHAKTI
• September 1985 - In re-organization of the Ministries by
CAUVERY WATER the Central Government in September 1985, the then

Ministry of Irrigation and Power was bifurcated and the
MANAGEMENT Department of Irrigation was re-constituted as the

Ministry of Water Resources. This recognition of the
AUTHORITY necessity of planning for the development of the country’s

water resources in a coordinated manner resulted in a
#Authority # Governance change in the character of the Ministry and it assumed a
nodal role regarding all matters concerning the country’s
water resources.
• In July, 2014, the Ministry of Water Resources was

renamed as Ministry of Water Resources, River
IN NEWS Development & Ganga Rejuvenation. National Ganga River
Cauvery Water Management Authority (CWMA) which is a part Basin Authority was constituted under the new ministry
of Cauvery Draft Water Management Scheme constituted by and was assigned with National Mission for Clean Ganga
the central government as per the directions of Supreme Court and other related matters of Ganga Rejuvenation.
has been brought within the administrative control of Union • In June, 2019 the Ministry has again been renamed
Ministry of Jal Shakti. This has been accomplished by as “Ministry of Jal Shakti with two Departments namely: -
amending the Government of India (Allocation of Business) Department of Water Resources, River Development and
Rules, 1961. Apart from CWMA, the amendment to Allocation Ganga Rejuvenation, andDepartment of Drinking Water and
of Business Rules has also included National Water Informatics Sanitation.
Centre (NWIC), North Eastern Regional Institute of Water and
BACKGROUND OF CWMA
Land Management (NERIWALM), Krishna River Management
Board (KRMB) and Godavari River Management Board (GRMB) • Supreme Court in its judgment of February, 2018 had
under the administrative control of Union Ministry of Jalshakti. directed the Central Government to draft a scheme under
However, some opposition party as well as some farmers’ Section 6A of the Inter-State River Water Dispute Act,
association in Tamil Nadu is upset with this move of the 1956 within a span of six weeks to implement the
central government as it makes CWMA more of a central Tribunal’s Award.

Governance
• Section 6A authorises the Central Government to make QUORUM & VOTING
schemes to implement decision of Tribunal constituted for
• Six Members shall form a quorum and the concurrence of
adjudication of disputes.
the majority shall be necessary for transaction of the
• The Central Government as per the directions of the business of the Authority except such business as the
honourable Court had submitted the Cauvery Draft Authority may from time to time prescribe as routine. The
Water Management Scheme. Members shall have equal powers.
• The Cauvery Draft Water Management Scheme comprised • The decision of CWMA shall be final and binding on all the
– Cauvery Water Management Authority (CWMA) and party States.
Cauvery Water Regulation Committee (CWRC) to give effect
POWERS, FUNCTIONS & DUTIES OF CWMA
to the decision of Cauvery Water Dispute Tribunal (CWDT)
as modified by the Hon’ble Supreme Court as per its 2018 • The Authority shall exercise such power and shall
judgment. discharge such duty to ensure compliance of Judgment of
Supreme Court regarding –
COMPOSITION OF CWMA
(i) Storage, apportionment, regulation and control of
• Chairman - To be appointed by the Central Government,
Cauvery waters.
who shall have tenure of five years or till sixty-five years of
(ii) Supervision of operation of reservoirs and with regulation
age, whichever is earlier. The Chairman can be either
of water releases there from with the assistance of
(i) senior and eminent engineer with wide experience in
Regulation Committee.
water resource management, handling of inter-State
(iii) Regulated release by Karnataka, at the inter-State contact
water sharing issues, construction, operation and
maintenance of irrigation projects or point presently identified as Billigundulu Gauge and
discharge station, located on the common border of
(ii) an All India Service Officer, in the rank of Secretary or
Karnataka and Tamil Nadu.
Additional Secretary to the Government of India with
• The Authority may constitute one or more sub-committees
experience in water resources and inter-State water
and assign to them such of its functions and delegate.
sharing issues.
• Two whole-time Members - To be appointed by the CONCERNS HIGHLIGHTED BY SOME OPPOSITION &
Central Government for a term of three years which may FARMERS’ ASSOCIATION
be extendable upto five years • Cauvery Water Management Authority (CWMA) was
(i) One Member (Water Resources) – an engineer not below created on the direction of the Supreme Court in February
the rank of Chief Engineer from the Central Water 2018.
Engineering Services (CWES) cadre • It is also argued that between June 2018 and May 2019,
(ii) One Member (Agriculture) – not below the rank of a when the Union Ministry of Water Resources was in
Commissioner from the Ministry of Agriculture and existence prior to existence of Ministry of Jal Shakti, CWMA
Farmers’ Welfare was not designated as an organisation under the Ministry
through any notification.
• Two Part-Time Members – Representatives of the Central
Government of the rank of Joint Secretary to be nominated • So, bringing CWMA under Jal Shakti Ministry will erode its
by the Ministry of Jal Shakti and Ministry of Agriculture and autonomy and will be subject to the diktat of the Central
Farmers’ Welfare respectively. Government. This will further erode the bargaining power
of states and undermine their presence in the CWMA.
• Four Part-Time Members from party States –
Administrative Secretaries in charge of Water Resource • This is another step by the central government whereby
Departments of each State Government of Kerala, the centralisation of power seems eminent.
Karnataka, Tamil Nadu and Union territory of Puducherry
who shall be nominated by the State Governments and
Union territory administration respectively.

Governance
PREVENTION OF
(iii) while holding office as a public servant, obtains for any
person any valuable thing or pecuniary advantage without
CORRUPTION ACT
any public interest.
Section 13 (2) - Any public servant who commits criminal

#Legislation # Judgement misconduct shall be punishable with imprisonment for a term
which shall be not less than four years but which may extend
to 10 years and shall also be liable to fine.
POST 2018 AMENDMENT IN PCA – SECTION 13

(1) A public servant is said to commit the offence of criminal
IN NEWS
misconduct –
The Delhi High Court has declined to release former Jharkhand
(a) if he dishonestly or fraudulently misappropriates or
Chief Minister MadhuKoda who is convicted in coal scam. The
otherwise converts for his own use any property
Court said that it will not be desirable to allow him to contest
entrusted to him or any property under his control as a
for any public office till he is finally acquitted. The conviction
public servant or allows any other person so to do; or
of Mr. Koda disallows him from contesting elections until he is
acquitted. (b) if he intentionally enriches himself illicitly during the
period of his office.
BACKDROP
A person shall be presumed to have intentionally enriched
• In December 2017, MadhuKoda was sentenced to three
himself illicitly if he or any person on his behalf, is in
years’ rigorous imprisonment under the Indian Penal Code
possession of or has, at any time during the period of his
and Prevention of Corruption Act by a Special CBI Court, in
office, been in possession of pecuniary resources or property
relation to one of the coal scam cases.
disproportionate to his known sources of income which the
• Koda was convicted for irregularities in the allocation of public servant cannot satisfactorily account for.
Rajhara North coal block in Jharkhand to Vini Iron and
(2) Any public servant who commits criminal misconduct shall
Steel Udyog Ltd (VISUL) in 2008.
be punishable with imprisonment for a term which shall be
• Koda had moved bail application in Delhi Court praying not less than 4 years but which may extend to 10 years and
that the operation of the order of convicting him of shall also be liable to fine.
criminal misconduct under Section
Note* 2018 Amendment of Section 13 of PCA meant that
13(1)(d)(ii) and (iii) read with section 13(2) of the
demand of illegal gratification was no longer a necessary
Prevention of Corruption Act, 1988, be stayed.
ingredient of the offence of criminal misconduct.
• As per 2018 amendment, Section 13 of Prevention of
DELHI HC OBSERVATION
Corruption Act, 1988 was amended.
• The Court held that there was no reason to assume that
PREVENTION OF CORRUPTION ACT, 1988 – PRIOR TO
the legislative intent of repealing Section 13 of the PC Act
AMENDMENT was to exclude the offence of criminal misconduct from
• Section 13 – Criminal Misconduct by Public Servant the scope of PC Act with retrospective effect.
(1) (d) - A public servant is said to commit the offence of • The Court held that there was no doubt that it had the
criminal misconduct, if he power to stay the conviction. However, such power ought
to be exercised in exceptional circumstances.
(i) by corrupt or illegal means, obtains for himself or for any
other person any valuable thing or pecuniary advantage; • The Court also referred to Supreme Court's decision in this
or regard in PUCL vs UOI regarding increasing criminalisation
of politics.
(ii) by abusing his position as a public servant, obtains for
himself or for any other person any valuable thing or
pecuniary advantage (demand for illegal gratification)

Governance
• Supreme Court in Public Interest Foundation and Ors. Vs.
REPRESENTATION OF PEOPLE ACT, 1951
Union of India and Anotherrequested the Law Commission
Section 8 (1)(m) – As per this provision, if a person has been
to expedite recommendation on the following issues:
convicted under Prevention of Corruption Act, 1988, shall be
disqualified, where the convicted person is sentenced to 1. Whether disqualification should be triggered upon
conviction or upon framing of charges by the court or
(i) only fine, for a period of six years from the date of such
upon the presentation of the report by the Investigating
conviction,
Officer.
(ii) imprisonment, from the date of such conviction and shall
2. Whether filing of false affidavits under Section 125A of the
continue to be disqualified for a further period of six
Representation of the People Act, 1951 (RPA) should be a
years since his release.
ground for disqualification.
TH
DECRIMINALISATION OF POLITICS 244 LAW COMMISSION RECOMMENDATIONS
th
• Decriminalisation of politics means prevention of people • Electoral Disqualification: 244 Law Commission Report
having a criminal background or those involved in criminal did not favour electoral disqualification at the stage of
offences to enter into political arena. filing of the police report as it can be easily misused
• Section 8 of Representation of People Act 1951 provides against rival political parties.
for disqualifications to stand for election in case of • Filing False Affidavits: increase imprisonment upto
conviction of certain grounds. minimum of 2 years under Representation of People Act
• Thus, to prevent criminalisation of politics, it was (RPA), 1951 and make filing false affidavit a corrupt
necessary to know about such people involved in criminal practice under RPA, 1951. Corrupt Practice under RPA,
cases so as to prevent them from entering the political 1951 is punishable upto 3 years along with fine.
arena. • Disqualification on framing of charge for certain
• Accordingly, Supreme Court of India in the year 2002 in a offences – A candidate should be disqualified for 6 years,
landmark judgment (Union of India v Association for if charges framed by Court include such offences whose
Democratic reforms and Another) directed the Election punishment is five years or more.
Commission to call for information on affidavit under
Article 324 on criminal background including:-
 previous conviction; PM-CARES FUND
 acquittal or discharge along with fine;
#RTI
 declaration of assets of the candidate and his/her spouse
along with number of dependants;
 liabilities including debts owed to any financial institution IN NEWS

or otherwise ; and A law student had filed RTI request asking the Prime Minister’s
 educational qualification of the candidate. Office (PMO) to provide Prime Minister's Citizen Assistance and
• Again in the year 2005, the Supreme Court in Ramesh Relief in Emergency Situations Fund - PM CARES Fund’s trust
Dalal vs. Union of India held that a sitting Member of deed and all government orders, notifications and circulars
Parliament (MP) or Member of State Legislature (MLA) shall relating to its creation and operation. However, PMO has
also be subject to disqualification from contesting replied that PM CARES Fund is not a Public Authority under the
elections if he is convicted and sentenced to not less than ambit of Section 2(h) of the RTI Act, 2005. This has increased
2 years of imprisonment by court of law. These judgments layers of secrecy by the government regarding operation of
effectively disallowed people having criminal background fund donated under PM-CARES. So, in this context, let us
to enter political field. understand about Public Authority as defined in RTI Act, 2005
as well as about PM-CARES Fund.

Governance
PUBLIC AUTHORITY shall qualify as admissible expenditure towards fulfilling
their Corporate Social Responsibility (CSR) obligations
• RTI Act, 2005 gives citizens the right to secure access to
under Section 135 of Companies Act, 2013.
information under the control of public authorities, in
order to promote transparency and accountability in the • The government has also appealed to companies to spend
working of every public authority. generously to PM CARES Fund including any unspent CSR
Amount.
• RTI Act explains “Public Authority” asany authority or
body or institution of self- government established or • Even if such companies have already contributed their
constituted— prescribed amount towards CSR, government has urged
companies to contribute over and above the minimum
 by or under the Constitution;
prescribed amount which can later be offset against CSR
 by any other law made by Parliament;
obligations in subsequent years, if the company so desires.
 by any other law made by State Legislature;
• Ministry of Corporate Affairs has also clarified that
st
 by notification issued or order made by the appropriate contributions made to PM CARES Fund before 31 March,
Government, and includes any:-Body owned, controlled or 2020 will also qualify for exemption under Section 80G of
st
substantially financed; Non-Government organization Income Tax Act, 1961. Whereas from 1 April, 2020, only
substantially financed, directly or indirectly by funds those companies that have chosen to remain in the old tax
provided by the appropriate Government. structure will get the benefit under Section 80G of Income
Tax Act.
ABOUT PM-CARES FUND
• PM-CARES Fund has been created as a Public Charitable
MAHARASHTRA
Trust where individuals and corporates can donate. This
fund was created keeping in mind the need for having a
dedicated national fund with the primary objective of
dealing with any kind of emergencies or distress situation, GOVERNOR AMENDS
like posed by the COVID-19 pandemic and to provide relief
to those affected by the epidemic.
FOREST RIGHT ACT
• Membersof the Trust - Prime Minister is the Chairman of #Governor #Fifth Schedule
the trust and its members include Defence Minister, Home
Minister and Finance Minister.
• Tax Exemption –Donations to this fund will be exempted IN NEWS

from income tax under section 80(G). Maharashtra Governor has modified The Scheduled Tribes and
• Mode of Payment – A new account in the name of “PM Other Traditional Forest Dwellers (Recognition of Forest Rights)
CARES” has been opened in State Bank of India, New Delhi Act, 2006, allowing rightful claimants of forest rights to appeal
Main Branch. It allows the following mode of payments: against decisions of the District Level Committee (DLC) by
 Debit Cards and Credit Cards amending Section 6 of the Act. The right to appeal against the
decision of DLCs was not available prior to the amendment.
 Internet Banking
This amendment has been proposed under sub-paragraph (1)
 UPI (BHIM, PhonePe, Amazon Pay, Google Pay, PayTM, of paragraph 5 of the Fifth Schedule to the Constitution of
Mobikwik, etc.) India. However, activists are concerned that this will lead to
 RTGS/NEFT further delays in implementation of forest laws in the
Scheduled Areas in the state of Maharashtra.
DONATION MADE TO PM CARES FUND COUNTED AS
CSR POWER OF GOVERNOR UNDER FIFTH SCHEDULE OF
THE INDIAN CONSTITUTION
• Ministry of Corporate Affairs has clarified that any
contribution made by companies to the PM CARES Fund

Governance
• The Fifth Schedule finds reference in Article 244 of the • The act Grants legal recognition to the rights of traditional
Constitution which deals with administration of scheduled forest dwelling communities and makes a beginning
areas and tribal areas. towards giving communities and the public a voice in
• Article 244 - The provisions of the Fifth Schedule shall apply forest and wildlife conservation.
to the administration and control of the Scheduled Areas and RIGHTS GRANTED UNDER FRA, 2006
Scheduled Tribes in any State other than the States of Assam,
• Title rights – i.e. ownership to land that is being farmed by
Meghalaya, Tripura and Mizoram.
tribals or forest dwellers subject to a maximum of 4
• The purpose of Para 5 of Schedule V is to establish an hectares; ownership is only for land that is actually being
egalitarian society and to ensure socio-economic cultivated by the concerned family, meaning that no new
empowerment of Scheduled Tribes. lands are granted.
• Para 5 of Schedule V - Governor by public notification • Use rights – to minor forest produce (also including
can direct the following: ownership), to grazing areas, to pastoralist routes, etc.
 That any particular Act of Parliament or of State Legislature • Relief and development rights – to rehabilitation in case
shall not apply to a Scheduled Area or any part of of illegal eviction or forced displacement; and to basic
Scheduled Area in the State; or amenities, subject to restrictions for forest protection.
 That any particular Act of Parliament or of State Legislature • Forest management rights – to protect forests and
shall apply to a Scheduled Area or any part of Scheduled wildlife.
Area in the State and the Governor can specify any
Section 6 of FRA - Authorities to vest forest rights in
modification or exception regarding implementation of
forest dwelling Scheduled Tribes and other traditional
any law made by Parliament or State Legislature.
forest dwellers and procedure thereof
 Governor is empowered to issue notification giving it
• The Gram Sabha shall be the authority to initiate the
retrospective effect.
process for determining the nature and extent of
THE SCHEDULED TRIBES AND OTHER TRADITIONAL individual or community forest rights or both that may
FOREST DWELLERS (RECOGNITION OF FOREST be given to the forest dwelling Scheduled Tribes and other
RIGHTS) ACT OF 2006 - AIM & OBJECTIVE traditional forest dwellers within the local limits.
• The 2006 Act is also referred as Forest Rights Act (FRA). FRA • Gram Sabha shall, then, pass a resolution to that effect
recognises and vest the forest rights and occupation in and thereafter forward a copy of the same to the Sub-
forest land to such Scheduled Tribes living in forest area Divisional Level Committee.
and other traditional forest dwellers who have been • The Sub-Divisional Level Committee constituted by State
residing for generations but whose rights could not be Government shall examine the resolution passed by the
recorded. Gram Sabha and prepare the record of forest rights and
• So, FRA provides for a framework to record forests rights forward it through the Sub-Divisional Officer to the
by having relevant evidence of such residence in forest District Level Committee for their decision.
lands. • So, the Act also provides for a Procedure for Appeal –
• It provides such Scheduled Tribes living in forest area and  Any person aggrieved by the resolution of the Gram
other traditional forest dwellersresponsibility and Sabha may prefer a petition to the Sub-Divisional Level
authority for sustainable use, conservation of biodiversity Committee.
and maintenance of ecological balance.
 Any person aggrieved by the decision of the Sub-
• It also ensures livelihood and food security of the forest Divisional Level Committee may prefer a petition to the
dwelling Scheduled Tribes and other traditional forest District Level Committee within sixty days from the date
dwellers. of decision of the Sub-Divisional Level Committee

Governance
• District Level Committee considers and finally approves • The decision of the Divisional Level Committee, subject to
the record of forest rights prepared by the Sub-Divisional the directions and orders of the State Monitoring
Level Committee. Section 6(6) of FRA says that the Committee shall be final.
decision of the District Level Committee on the record of IMPORTANCE OF THE AMENDMENT
forest rights shall be final and binding.
• The notification is considered significant because
Note*-The above aspect has been amended by the Maharashtra it empowers tribal people of the state to appeal against
Governor. So, the Governor of Maharashtra by using his power the decision of District Level Committee. Earlier Individual
under sub-paragraph (1) of paragraph 5 of the Fifth Schedule to or Community Forest Rights of Tribals were rejected by the
the Constitution of India has proposed to add sub section 6A to DLCs and there was no provision of appeal. So, this
Section 6 of FRA, 2006. amendment will strengthen tribal’s rights in Maharashtra
CHANGES MADE IN FOREST RIGHTS ACT BY under Forest Rights Act.
MAHARASHTRA GOVERNOR • The notification applies to areas covered in the Panchayats
(Extension to Scheduled Areas) Act in the State and allows
• New Provision for Maharashtra - Section 6 (6A) -Any
appeal provision against the DLC’s decision.
person aggrieved by the order of the District Level
Committee may prefer an appeal to the Divisional Level READ:THE PANCHAYATS (EXTENSION TO SCHEDULED
Committee headed by Divisional Commissioners. AREAS) ACT, 1996 (PESA)
• In case of order passed by District Level Committee before • Article 243M of the Constitution, while exempting the
th
the commencement of this notification (18 May, 2020), Fifth Schedule areas from Part IX of the Constitution
the application for appeal shall be made within six (Panchayats), provides that Parliament may by law extend
months from the date of issue of notification. its provisions to the Scheduled and Tribal Areas subject to
• In case of order passed by the District Level Committee such exceptions and modifications as may be specified in
after the commencement of this notification (18 May,
th such law and no such law shall be deemed to be an
2020), application of appeal may be preferred within a amendment to the Constitution.
period of ninety days from the date of communication of • On the basis of the report of the Bhuria Committee
order of the District Level Committee. submitted in 1995, the Parliament enacted The Panchayats
• For the purpose of Appeal against decision of DLC, the (Extension to Scheduled Areas) Act, 1996 (PESA)to extend
notification states that divisional level committees under Part IX of the Constitution with certain modifications and
the chairmanship of Divisional Commissioners have been exceptions to the Scheduled V areas.
constituted to hear the appeals against the DLC’s • At present Scheduled V areas exist in 10 States viz. Andhra
decisions. Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh,
• The notification states that for the purpose of Section 6 Jharkhand, Madhya Pradesh, Maharashtra, Odisha,
(6A) of FRA, 2006, Divisional Level Committee shall Rajasthan and Telangana. The Ministry of Panchayati Raj
consists of – is the nodal Ministry for implementation of the provisions
of PESA in the States.
 Divisional Commissioner—Chairman
• Election to PRI - All posts of Chairpersons of Panchayati
 Chief Conservator of Forests or his representative not
Raj Institutions (PRIs) in the areas covered under PESA are
below the rank of Deputy Chief Conservator of Forests—
reserved for tribal community and only persons belonging
Member
to tribal community can contest for these posts.
 Three Members of Scheduled Tribes, of whom at least one
shall be woman to be nominated by the state government IMPORTANT POWERS PROVIDED TO GRAM SABHA
UNDER PESA
 Additional Tribal Commissioner or an officer nominated by
the Tribal Development Department, where post of Following three types of powers have been given to a Gram
additional Tribal Commissioner is not available at the Sabha under PESA:
divisional headquarters- Member Secretary. 1. Developmental: consultation before land acquisition,
prevent land alienation, power to enforce prohibition,

Governance
prior approval of all developmental projects and control 9. Ownership of minor forest produce.
over tribal sub-plan, power to issue utilization certificate 10. Power to prevent alienation of land in the Scheduled
for developmental expenditure, selection of beneficiaries Areas and to restore any unlawfully alienated land of a
of poverty alleviation and other schemes of individual Scheduled Tribe.
benefits, control over institutions and functionaries of
11. Power to manage village markets.
social sectors.
12. Power to exercise control over money lending to the
2. Dispute resolutionas per traditional laws and
Scheduled Tribes.
customs: collective resolution of disputes on the basis of
customs, traditional laws and religious beliefs of tribal 13. Power to exercise control over institutions and
areas. functionaries in all social sectors.
3. Ownership and management of natural resources: 14. Power to control over local plans and resources for such
maintaining ownership of local tribal community over plans including tribal sub-plans.
water resources, common lands, minor forest produce, IMPORTANCE OF PESA
minor minerals, etc. as well as effective implementation
• Effective implementation of PESA will not only bring
and monitoring of related laws.
development but will also deepen democracy in Fifth
OTHER POWERS GIVEN TO GRAM SABHA/ PRIS Schedule Areas.
UNDER PESA ACT
• It will enhance people’s participation in decision making.
Following legal powers have been given to Gram Sabha/PRIs PESA will reduce alienation in tribal areas as they will have
under PESA Act: better control over the utilisation of public resources.
1. Safeguard and preserve the traditions and customs of the • PESA will reduce poverty and out-migration among tribal
people, their cultural identity, community resources and population as they will have control and management of
the customary mode of dispute resolution. natural resources which will help in improving their
2. Approve plans, programmes and projects for social and livelihoods and incomes.
economic development before such plans, programmes • PESA will minimise exploitation of tribal population as they
and projects are taken up for implementation by the will be able to control and manage money lending,
Panchayat at the village level. consumption & sale of liquor and also sell their produce in
3. Identification or selection of persons as beneficiaries village markets.
under the poverty alleviation and other programmes. • Effective implementation of PESA will check illegal land
4. Certification of utilisation of funds by the Panchayat for alienation and also restore unlawfully alienated tribal land.
the plans, programmes and projects for identification or PESA will promote cultural heritage through preservation
selection of persons as beneficiaries under the poverty of traditions, customs and cultural identity of tribal
alleviation and other programmes. population.
5. Right to be consulted before making acquisition of land in

the Scheduled Areas for development projects and before
re-settling or rehabilitating persons affected by such LEGISLATIVE COUNCIL
projects in the Scheduled Areas.
6. Right to plan and manage minor water bodies in the
#State Legislature
Scheduled Areas.
7. Recommendations prior to grant of prospecting licence or
mining lease for minor minerals and for grant of IN NEWS
concession for the exploitation of minor minerals by Mr. Uddhav Thackeray was sworn in as Chief Minister of
auction in the Scheduled Areas. Maharashtra on 28th November, 2019 and to continue as Chief
8. Power to enforce prohibition or to regulate or restrict the Minister, he had to become a member of either House of
sale and consumption of any intoxicant. Legislative Assembly or Legislative Council of Maharashtra

Governance
before 27th May, 2020 as per Article 164(4) of the Constitution • Comparison of members Legislative Assembly - Under
of India. The Legislative Council elections for the nine vacant Article 171, the Legislative Council of a state shall not have
seats which was to be held in late March was postponed due to more than one-third of the total number of MLAs of the
national lockdown imposed because of the novel corona virus. state, and not less than 40 members. But this provision
So, amidst national lockdown and rising COVID cases in was not applicable to the erstwhile state of Jammu and
Maharashtra, elections to the Legislative Council prior to 27th Kashmir because as per Section 50 of the state’s
May seemed difficult and because of this, there was an Constitution, the Assembly had 87 members and the
atmosphere of political uncertainty in the state. However, Legislative Council had 36 members.
elections were held and Mr. Thackrey was elected unopposed • Election & Nomination of members - Of the total
on 14th May, 2020 to the Legislative Council thereby fulfilling number of members of the Legislative Council of a State,
the constitutional obligations to continue as Chief Minister. So, nearly 1/3rd of the MLCs are elected by the state’s MLAs,
in this backdrop, let us go through the constitutional another 1/3rd by a special electorate comprising sitting
provisions regarding Legislative Councils in certain states. members of local governments such as municipalities and
IMPORTANT: PRELIMS POINTER district boards, 1/12th by an electorate of teachers and
another 1/12th by registered graduates.
• Article164 (4) – Chief Minister or Other Minister of State: It
states that a Minister who for any period of six consecutive • The remaining members shall be nominated by the
months is not a member of the Legislature of the State Governor having special knowledge or practical experience
shall at the expiration of that period cease to be a Minister. in the field of Literature, science, art, co-operative
movement and social service.
• Article 75 (5) – Prime Minister or Other Minister of Union:
A Minister who for any period of six consecutive months is • Chairman & Deputy Chairman - Every state having
not a member of either House of Parliament shall at the legislative council must chose two members of the Council
expiration of that period cease to be a Minister. as Chairman and Deputy Chairman of the Legislative
Council.
ABOUT LEGISLATIVE COUNCIL
BENEFITS OF HAVING LEGISLATIVE COUNCIL
Legislative Council also referred as VidhanParishad is the
second house of discussion depicting bicameralism at the  A second chamber in states provides as an institution of
state level. However, every state in India does not have check and balance on every Bill as it prohibits hasty
Legislative Council and can be created or abolished as per passing of Bills
constitutional provisions.  It enhances diversity by enabling non-elected citizens to
• Permanent Body - The Legislative Council of a State shall contribute to the legislative process.
not be subject to dissolution. But, one-third of the  It allows more debate and sharing of work allocation
members of the Council shall retire on the expiration of between the two houses.
every second year.
LEGISLATIVE COUNCIL VS. COUNCIL OF STATES
• Qualifications - He/she must be a citizen of India and
• The legislative power of Legislative Councils are limited as
must not be less than 30 years of age.
compared to Council of States or Rajya Sabha. Rajya Sabha
• Creation & Abolition of LC - Under Article 169, has substantial powers to shape non-financial legislation
Parliament may by law provide for creation or abolition of whereas Legislative Councils lack a constitutional mandate
Legislative Council in a state if the Legislative Assembly of to do so.
the State passes a resolution to that effect by a majority of
• Assemblies can override suggestions/amendments made
the total membership of the Assembly and by a majority of
to a legislation by the Council. Member of Councils cannot
not less than two-thirds of the members of the Assembly
vote in elections for the President and Vice President
present and voting. Parliament can then pass a law to this
whereas members of Rajya Sabha can vote. MLCs also
effect by simple majority.
can’t vote in the elections of Rajya Sabha members.

Governance
PASSING OF BILLS IN STATE ASSEMBLY (c) the Bill is passed by the Council with amendments to
which the Legislative Assembly does not agree;
• A bill pending in state legislature does not lapse because
of prorogation of the House or Houses – Article 196(3). The Bill shall be deemed to have been passed by the Houses
of the Legislature of the State in the form in which it was
• When state assembly is dissolved –
passed by the Legislative Assembly for the second time
(i) A Bill pending in Legislative Council which has not been
with such amendments as have been made or suggested by
passed by legislative assembly, does not lapse - Article
the Legislative Council and agreed to by the Legislative
196(4)
Assembly.
(ii) A Bill pending in legislative assembly, or which having
been passed is pending with the Legislative Council,
lapses - Article 196(5)
A.P. GOVT. TO REINSTATE
(iii) A Bill passed by Legislative Council and pending in the
Assembly will lapse ITS STATE ELECTION
COMMISSIONER
(iv) A Bill passed by the Legislative Assembly, when there is
only one House, or passed by both Houses and pending
assent of Governor or of the President does not lapse.
#Judgement #State Election Commissioner
ARTICLE 197 - RESTRICTION ON POWERS OF
LEGISLATIVE COUNCIL AS TO BILLS OTHER THAN
MONEY BILLS
If after a Bill has been passed by the Legislative Assembly of a
IN NEWS
State having a Legislative Council and transmitted to the
Legislative Council— The Andhra Pradesh High Court has struck down an ordinance
promulgated by state government of Andhra Pradesh as the
(a) the Bill is rejected by the Council; or
ordinance curtailed the tenure of the State Election
(b) more than three months elapse from the date on which Commissioner (SEC) from five to three years. The High Court
the Bill is laid before the Council without the Bill being also quashed government order appointing retired Judge V.
passed by it; or Kanagaraj as the new State Election Commissioner. Justice
(c) the Bill is passed by the Council with amendments to Kanagaraj, a former judge of the Madras High Court, had
which the Legislative Assembly does not agree. assumed charge as the SEC on April 11 by replacing Ramesh
The Legislative Assembly may, pass the Bill again in the same Kumar. However, the High Court has restored retired
or in any subsequent session with or without such bureaucrat Dr. N. Ramesh Kumar as the State Election
amendments, if any, as have been made, suggested or Commissioner.
agreed to by the Legislative Council and then transmit the Bill A.P. PANCHAYAT RAJ ACT, 1994 - CONSTITUTION OF
to the Legislative Council. ANDHRA PRADESH ELECTION COMMISSION FOR
LOCAL BODIES.
nd
2 time: If after a Bill has been so passed for the second 1. There shall be constituted a State Election Commission for
time by the Legislative Assembly and transmitted to the Local Bodies for the superintendence, direction and
Legislative Council— control of the preparation of electoral rolls for, and the
(a) the Bill is rejected by the Council; conduct of elections to, all the Panchayat Raj Institutions
governed by this Act.
(b) more than one month elapses from the date on which the
Bill is laid before the Council without the Bill being passed 2. The said Andhra Pradesh Election Commission for Local
by it; or Bodies shall consist of a Andhra Pradesh Election
Commissioner for Local Bodies. The Governor on the

Governance
recommendation of the Government shall appoint a Election Commission consisting of a State Election
person who is holding or who has held an office not less Commissioner to be appointed by the Governor.
in rank than that of a Principal Secretary to Government 2. Subject to the provisions of any law made by the
as Andhra Pradesh Election Commissioner for Local Legislature of a State, the conditions of service and tenure
Bodies. of office of the State Election Commissioner shall be such
3. The conditions of service and tenure of office of the as the Governor may by rule determine: Provided that
Andhra Pradesh Election Commissioner for Local Bodies the State Election Commissioner shall not be removed
shall be such as the Governor may, by rule, determine. from his office except in like manner and on the like
Provided that the Andhra Pradesh Election Commissioner grounds as a Judge of a High Court and the conditions of
for Local Bodies shall not be removed from his office service of the State Election Commissioner shall not be
except in like manner and on the like grounds as a Judge varied to his disadvantage after his appointment.
of a High Court and the conditions of service of the ARTICLE 243ZA - ELECTIONS TO THE MUNICIPALITIES
Andhra Pradesh Election Commissioner for Local Bodies
1. The superintendence, direction and control of the
shall not be varied to his disadvantage after his
preparation of electoral rolls for, and the conduct of, all
appointment.
elections to the Municipalities shall be vested in the State
Accordingly, the 1994 Rules of Business framed by the Election Commission referred to in Article 243K.
Governor has prescribed a tenure of 5 years for State Election
2. Subject to the provisions of this Constitution, the
Commissioner of Andhra Pradesh.
Legislature of a State may, by law, make provision with
CHANGES BROUGHT THROUGH THE ORDINANCE respect to all matters relating to, or in connection with,
• The state government issued The Andhra Pradesh elections to the Municipalities.
Panchayat Raj (Second Amendment) Ordinance, 2020 STATE ELECTION COMMISSIONER

modifying the Andhra Pradesh Panchayat Raj Act, 1994 to
The following provisions under Article 243K ensures
change the tenure, eligibility and appointment of the State
independence of State Election Commissioner -
Election Commissioner.
1. Removal Procedure: Though the SEC is appointed by the
• Thus, the ordinance effectively -
governor of the respective state, he/she can be removed
• Reduced SEC’s tenure from 5 to 3 years; and by the President only in the manner a Judge of a High
 Amended the eligibility criterion for appointment of SEC (from court is removed which is constitutionally prescribed
being an officer of the rank of Principal Secretary and above under Article 217(1)(b).
to one who had served as a High Court judge). 2. Conditions of service cannot be varied: Though the
• In effect, the above changes resulted in termination of the conditions of service is determined by the Governor with
then SEC N. Ramesh Kumar and appointment of retired aid and advice of political executive, it cannot be varied to
Judge V. Kanagaraj as the new State Election his disadvantage after his appointment.
Commissioner who was a judge of Madras High Court. NOTE: REMOVAL OF JUDGE OF HIGH COURT &
• The legality of the ordinance was challenged in the High SUPREME COURT
Court by the then SEC through a petition on the ground
Article 217(1)(b) - A Judge may be removed from his office by
that it had violated the constitutional principle of
the President in the manner provided in clause (4) of article
independence of Election Commission.
124 for the removal of a Judge of the Supreme Court.
ARTICLE 243K - ELECTIONS TO THE PANCHAYATS Article 124(4) - A Judge of the Supreme Court shall not be
1. The superintendence, direction and control of the removed from his office except by an order of the President
preparation of electoral rolls for, and the conduct of, all passed after an address by each House of Parliament
elections to the Panchayats shall be vested ina State supported by a majority of the total membership of that
House and by a majority of not less than two-thirds of the
members of that House present and voting has been

Governance
presented to the President in the same session for such absolute entrustment, but is “conditional upon satisfaction
removal on the ground of proved misbehaviour or incapacity. that circumstances exist rendering it necessary to take
immediate action”.
JUDGEMENT GIVEN BY THE HIGH COURT
• “There is no public interest or constitutional necessity to
(A) On Change of Tenure and Conditions of Service for SEC
take immediate action by the governor for promulgation of
• The appointment of SEC may be made by the Governor, in
Ordinance”. “They (chief minister and Council of Ministers)
exercise of discretionary power under Article 243K (1) of
have brought narcissist Ordinance to remove him and to
the Constitution. The only power, which is given to the
bring the person of their choice.
State legislation, is with respect to the conditions of
service and the tenure that too qualifying the test of
• The court said that, "it is actuated by fraud on power
and does not qualify the test of rationality and
Article 14 of the Constitution. Therefore, inserting
reasonableness specified in Constitution of India.”
eligibility conditions for appointment of SEC by amending
Section 200 of Andhra Pradesh Panchayat Raj Act, 1994by • Procedure under article 21 of the Indian constitution must
way of ordinance is illegal. be Just, Fair and Reasonable established by Just, Fair and
• The promulgated Ordinance by state government under Reasonable Law. (Mrs. Maneka Gandhi Vs. Union of
Article 213 (1) is hereby set-aside and as it is actuated by India (UOI) case)
fraud on power and does not qualify the test of rationality • The Ordinance was in violation of Article 243K, which
and reasonableness specified in Article 14 of the states that a SEC could not be removed, except in the
Constitution of India. Consequently, The Andhra Pradesh same manner as provided for a High Court judge.
Panchayat Raj (Salaries and Allowances, Conditions of Service,
• Holding free and fair elections is part of the “basic
Tenure of State Election Commissioner) Rules, 2020 are also
structure” of the Constitution and that it has to be
set-aside.
protected forever.
• Tenure of five years of Dr. N. Ramesh Kumar cannot be
(B) On Difference between Article 324(2) and Article 243K
taken away without completion of the tenure for which he
(2)
was appointed. Thus, the provisions of Ordinance cannot
• The High Court held that the power of appointment of CEC
take away SEC’s subsisting right as Dr. N. Ramesh Kumar
given to the President, under Article 324(2), is subject to
can only be removed as per the provisions of Article 243K
any law made by the Parliament in that behalf, but the
(2). Hence, Dr. N. Ramesh Kumar should be reinstated at
power so given to the Governor to make appointment of
his position as State Election Commissioner.
SEC, under Article 243K (1) is at his discretion and is not
• Thus, the tenure of the SEC so prescribed for a period of
subject to any law made in that behalf by the State
five years can only be curtailed by way of impeachment, in
Legislature.
case the SEC is required to be removed prior to the
completion of tenure so prescribed. Without following the
• Further, Clause (2) of Article 243K and Clause (5) of Article
324 provide for the conditions of service and tenure of the
said procedure, passing an order by the State Government
office of the SEC and CEC respectively. Therefore, it safely
directing cessation of the office of SEC is contrary to law
understood that the power of appointment, as conferred
and such order of the State is void ab initio.
under Article 324(2) to the President of India and Article
Whether any circumstances existed for Governor to
243K(1) to the Governor of the State, are to be exercised in
promulgate an Ordinance?
different manner.
• Power conferred under Article 213 of the Constitution to
• Thus, the intention of the framers of the Constitution was
promulgate ordinances was not an absolute entrustment,
clear that the appointment of the CEC and Election
but was conditional on the satisfaction that the
Commissioners must be made by the President subject to
circumstances existed for such an action.
the law made by the Parliament and not on the basis of
• Krishna Kumar Singh v. the State of Bihar Case - SC the recommendation of the Prime Minister so as to
held that the authority to issue ordinance is not an

Governance
remain uninfluenced by the ideology or decision of the based on discretion uninfluenced by the proposal of the
Government in power. Council of Ministers and Chief Minister. In any case, the
• However, as per Article 243(K), the intention of the appointment of SEC cannot be made by the Governor as
Constitution is very clear that the appointment of SEC shall per the proposal made by the Chief Minister.
be made as per discretion on the Governor. • The functions of the Election Commission should not be
affected by the influence of the Executive fiat and it must
• The Court further observed - Here, it is necessary to
understand that under the Constitution, discretion has not be independent so as to maintain the basic structure,
been conferred to the President of India, but conferred so to independence of Commission to safeguard democracy in
the Governor. it is apparent that the framers of the the Country by holding free and fair elections.
Constitution gave discretionary power to the Governor as • Therefore, the power of appointment of SEC has been
specified in Article 163 of the Constitution but not given to the given on the discretion of the Governor but not on the
President of India Executive fiat of the Government. The conditions of
service and tenure of office so prescribed has been
• Thus, the High Court conclusively held that in the matter of
discretionary power to appoint the SEC in exercise of the checked by way of proviso specifying the manner of
power under Articles 243K(1) and 243ZA of the removal, as provided under Articles 243K(2) and 324(5) of
Constitution, the Governor is not required to take the aid the Constitution.
and advise of the Council of Ministers in view of the

Business Rules. The manner of appointment of SEC is
practice questions
MCQs
Q1. The Labour Code on Occupational Safety, Health 2. Record Keeping for workers of unorganised sector is to
and Working Conditions subsumes which of the be done by district administration.
following central legislations? 3. Every unorganised worker shall be eligible for
1. The Factories Act, 1948 registration if they have completed fourteen years of
2. The Plantations Labour Act, 1951 age.
3. The Contract Labour (Regulation and Abolition) Act, Which of the statements given above is/are correct?
1970 (a) 1 and 2 only (b) 2 and 3 only
4. The Industrial Disputes Act, 1947 (c) 1 and 3 only (d) 1, 2 and 3
5. The Trade Unions Act, 1926
Select the correct answer using the code given below: Q3. Consider the following statements about National
(a) 1, 4 and 5 only (b) 1, 2 and 3 only Disaster Management Act, 2005:
(c) 2, 3 and 4 only (d) 1, 3 and 5 only 1. National Disaster Management Authority is chaired by
Union Home Secretary.
Q2. Consider the following statements about The 2. State Executive Committee shall be chaired by Chief
Unorganised Workers’ Social Security Act, 2008: Minister of the State concerned.
1. It provides for constituting National and State Social Which of the statements given above is/are correct?
Security Board. (a) 1 only (b) 2 only

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

Governance
4. Consider the following statements about National 1. It provides for a framework to record forests rights by
Green Tribunal Act, 2010: having relevant evidence of such residence in forest
1. It extends jurisdiction of National Green Tribunal over lands.
all civil cases related to environment and enforcement 2. The Gram Sabha shall be the authority to initiate the
of legal right relating to environment. process for determining the nature and extent of
2. An award passed by National Green Tribunal is final individual or community forest rights.
and cannot be appealed in the Supreme Court of India. 3. The decision of Gram Sabha cannot be appealed
Which of the statements given above is/are correct? against under the Act.
(a) 1 only (b) 2 only Which of the statements given above is/are correct?
(c) Both 1 and 2 (d) Neither 1 nor 2 (a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Q5. Consider the following statements about the

Scheduled Tribes and Other Traditional Forest
Dwellers (Recognition of Forest Rights) Act of 2006:
Q1. How has the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act of 2006 benefitted
Scheduled Tribes living in forest area and other traditional forest dwellers? Give reasons for your answer.
(150 words) (10 Marks)
Q2. Why was the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) legislated? Discuss the important powers given to
Gram Sabha under PESA. (250 words) (15Marks)
Answers to above MCQs: 1 (b), 2 (d), 3 (d), 4(a), 5(a)

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

of both Prelims and Mains. This discussion of ours has been
divided into the following dimensions as outlined below:
RELIANT INDIA 1. Broad Contours of the Package
2. First Tranche of Package- Relief and Support for MSMEs

#Government Policies and NBFCs
3. Second Tranche - Relief for the Poor and Vulnerable

sections
4. Third Tranche - Reforms in the Agriculture Sector including

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

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

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

Economic Development
The outbreak of CoVID-19 is considered to be a significant business operation. Accordingly, the Government has come
because it has impacted both demand and supply side out six-point economic package to infuse liquidity into the
simultaneously leading to twin shocks, which is considered MSMEs.
to be quite unprecedented.
COLLATERAL FREE AUTOMATIC LOANS FOR THE
The COVID-19 has dealt a severe blow to some of the most STANDARD MSMEs
critical sectors such as MSMEs, NBFCs, Real Estate and so
• Announcement: Banks and NBFCs to extend collateral
on. These sectors are facing huge cash crunch leading to
free loans worth Rs 3 lakh crores to the MSMEs.
supply side disruption, loss of employment opportunities and
consequently decline in the demand within the economy. • Eligibility: Applicable to only standard MSMEs (The MSMEs
who have not defaulted on their repayment of loans and
According to some of the estimates, the Banks within India
their accounts are categorized as Standard Assets by
are sitting on surplus cash of around Rs 8 lakh crores. These
Banks).
Banks are apprehensive of extending loans to some of the
critical sectors such as MSMEs, NBFCs etc. due to the fear of • Features of Loans: Loans to have 4-year tenor with
increase in the NPAs. So, the question which arises here is moratorium of 12 months on the Principal repayment.
"How to incentivise/ nudge the Banks to extend the loans Interest rate to be capped.
to these sectors”? The answer is simple. Give Government • Government's role: 100% Credit guarantee cover to
guarantee on the repayment of the loans extended by the banks and NBFCs on principal and Interest. This guarantee
Banks to certain critical sectors such as MSMEs, NBFCs, MFIs, is provided by government through the Credit Guarantee
HFCs etc. The sovereign guarantee extended by the Fund Trust for Micro and Small Enterprises (CGTMSE)
Government would nudge the Banks to give their surplus
• Benefits: 45 lakh MSMEs would be benefitted leading to
cash in the form of loans to these sectors.
employment creation.
Hence, a major part of the first set of economic packages has
SUBORDINATE DEBT FOR STRESSED MSMEs
been geared towards the sovereign guarantee to be
extended to the Bank loans given to MSMEs, NBFCs and so What is Subordinate Debt? The loans raised by a company
on. Now, this is considered to be a smart move by the could be categorized as Subordinated Debt and Non-
Government. The Government is fiscally constrained to Subordinated Debt. The non-subordinated debt enjoys higher
provide direct fiscal stimulus package due to higher Fiscal priority over the subordinated debt in terms of repayment.
deficit. Hence, extension of sovereign guarantee on the loans When the company is on the verge of closure, the company
extended by the Banks would serve dual purpose. On one would be required to pay back its borrowings.
hand, it would lead to greater credit creation within the Now, here, first and foremost, the company would repay back
economy leading to improvement in supply, increase in its non-subordinated Debt. Only if the company has sufficient
employment creation and overall push to demand for Goods. money left, the subordinated debt would be repaid. Hence,
On the other hand, it would enable the Government to the subordinated debt is riskier as compared to non-
efficiently manage its Fiscal deficit. subordinated debt and hence carry higher rate of Interest.
In short, a Subordinate Debtis a debt owed to an unsecured

FIRST TRANCHE OF PACKAGE- RELIEF AND creditor that in the event of a liquidation can only be paid
SUPPORT FOR MSMES AND NBFCS after the claims of secured creditors (like banks) have been
met.
ECONOMIC PACKAGE FOR THE MSMEs
Budget 2020-21 Announcement: In the Budget 2020-21, the
The MSME sector employs around 111 million people and is
Finance Minister had announced that a scheme would be
the second largest employer after agriculture. It
introduced to provide subordinated debt to the
contributes 30% of India's GDP and 45% of our
entrepreneurs of the MSMEs. Under this Scheme, the Banks
manufacturing export. These MSMEs which have been
would provide subordinated debt to the MSMEs. This
badly hit by COVID-19 need additional funding to meet their
subordinated debt provided by the Banks shall be in the form
operational liabilities, buy raw materials and kickstart their

of Quasi-Equity i.e. the Bank could acquire stakes in the ups, Electronics Manufacturing Industries, MSMEs etc. For
ownership of the MSMEs. example, the Government has set up Fund of Funds for the
New Announcement: The new announcement seeks to Start-up companies. This fund is managed by SIDBI. This
provide shape to the Budget proposal. The Government fund invests money in the various Alternate Investment
would facilitate provision of Rs 20,000 crore as subordinated Funds (AIF) registered with the SEBI for funding the start-up
debt to around 2 lakh MSMEs. companies. The AIFs which are supported by Government
financed Fund of Funds would be required to invest at least
Role of the Banks: Banks are expected to provide the
twice the contribution received from fund-of- funds. These
subordinate-debt to promoters of such MSMEs equal to 15%
AIFs which are supported by Fund-of-funds are also referred
of his existing stake in the unit subject to a maximum of Rs 75
to as "daughter Funds". Hence, in this case, the Fund-of-
lakhs.
funds would be considered as Father Fund and the funds in
Government' role: The Government would provide Rs 4,000 which it fund-of-funds invest, they are considered as
crores to Credit Guarantee Fund Trust for Micro and "daughter funds".
Small Enterprises (CGTMSE). The CGTMSE would in turn
Similarly, the Government of India has also set up Electronics
provide partial Credit Guarantee support to Banks. (This
Development Fund as Fund-of-Funds for development of
means any loss incurred by Banks on providing subordinated
Electronics Manufacturing Industries. This fund invests in
Debt to MSMEs would be partially repaid back by the
SEBI registered Venture Capital funds ("Daughter Funds") that
CGTMSE).
in turn invest in equity of companies involved in the
EQUITY INFUSION THROUGH MSME FUND OF FUNDS development of new technologies in the field of electronics.
What is Fund of Funds? The Fund of Funds is a fund that
makes indirect investment in various sectors such as Start-
U.K. Sinha Committee Recommendations: Based upon the firms which provide equity support the MSMEs. This fund
previous experiences, the U.K. Sinha Committee on MSMEs should be managed by SIDBI.
had recommended for the setting up of Fund-of-funds worth New Announcement: The Government has now decided to
Rs 10,000 crores for the MSME sector. According to this implement this recommendation of setting up fund-of-fund
committee, this fund of funds should invest in venture capital worth Rs 10,000 crores.

2. MSMEs due to their informal and small scale of operations

often do not maintain proper books of accounts and hence
NEW DEFINITION OF MSME
find it difficult to get classified as MSMEs as per the current
Problems with the existing Definition of MSME: The definition.
definition of MSMEs has been provided under MSMED Act,
3. Presently, the MSMEs get number of benefits from the
2006. Presently, MSMEs are defined in terms of their
government such as collateral free loans, tax concessions
investment in plant and machinery or equipment as shown
etc. Hence, if they lose the status of MSME, then they
below. There are a number of problems with the existing
would no longer be able to avail these benefits. Hence, in
definition of the MSMEs.
order to avoid losing the status of MSME, the industries
1. Definitions based on investment limits in plant and deliberately keep their investment levels below the
machinery/ equipment were decided when the Act was
threshold mentioned in the MSMED act.
formulated in 2006 and does not reflect the current
Hence, in a way, the existing definition has incentivised the
increase in price index of plant and machinery /
MSMEs to remain smaller rather than incentivising them to
equipment.
grow bigger and create more number of jobs.
New Announcement: As shown in the above table, PREFERENCE TO MSMEs FOR GOVERNMENT
important changes have been introduced in the new TENDERS
definition of MSMEs:
Present Scenario: Whenever the Government has come out
1. The Investment limit has been increased. with the tenders for the procurement of goods and services,
2. An additional criterion of annual turnover has been such tenders have had higher benefit for the foreign
introduced. companies. The MSMEs within India are unable to compete
with the deep-pocketed and technologically advanced foreign
3. The distinction in the definition of Manufacturing and
companies to get the government tenders.
service sector enterprises has been done away with.
New Announcement: General Financial Rules (GFR) of the
4. It has also been decided that the turnover with respect to
Government will be amended to disallow global tender
exports will not be counted in the limits of turnover for any
contracts in procurement of Goods and Services of value of
category of MSME.
less than Rs 200 crores. This means, going forward, if the
Government seeks to award tenders for goods and services

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

invested in investment grade bonds, commercial papers
issued by the NBFCs.
PREVIOUS ANNOUNCEMENT UNDER PRADHAN

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

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

obligations could be in the nature of extending the time for tax liability. Similar, on winning lottery prize, the tax amount
the completion of a project or procurement of goods and of 5% would be deducted as TDS.
services. Some of the payments on which the TDS is applicable include
RELIEF TO REAL ESTATE PROJECTS Interest on Securities, Dividend income, Payment of
contractors, Lottery prize, Payment for availing professional
Present Status: Presently, the Real Estate (Regulation and
services etc.
Development) Act, 2016 provides for time bound completion
of real estate projects. Section 6 of the Real Estate (Regulation Tax Collected at source is the tax that is collected by the
and Development) Act, 2016 provides for the extension of Seller from the buyer and then paid to the Government.
real estate project by the Real estate development authority For example, Let’s say a seller “ABC” sells goods worth Rs 100
by invoking Force Majeure clause. Under this clause, the to a buyer “XYZ”. Let’s say in this case, the Government has
extension of real estate project could be given on account of prescribed TCS rate of 5%. Then the seller “ABC” would collect
war, flood, drought, fire, cyclone, earthquake or any other Rs 105 from the buyer, out of which Rs 100 would remain
calamity caused by nature affecting the regular development with ABC and remaining Rs 5 would be paid to the
of the real estate project. Government in the form of tax.
New Announcements: Due to the impact of COVID-19, most Some of the payments on which TCS is applicable include
of the real estate projects have got struck and accordingly the Sale of Tendu leaves, Scrap, Mineral ores such as Iron ore,
timeline for the completion of real estate projects need to be coal, Sale of motor vehicles above Rs 10 lakhs etc.
extended.Accordingly, the Ministry of Housing and Urban
Affairs will advise States/UTs and their Regulatory Authorities TAX DEDUCTED AT SOURCE TAX COLLECTED AT
the following: (TDS) SOURCE (TCS)
• Treat COVID-19 as an event of ‘Force Majeure’ under RERA. Tax that is deducted at the Tax which is collected at the
• Extend the registration and completion date Suo-moto by time of making payment time of selling certain
6 months Goods
• Regulatory Authorities may extend this for another period Deducted by the entity that Collected by the entity that
of up to 3 months, if needed. makes the payment sell the Goods
REDUCTION IN THE RATE OF TAX DEDUCTION AT
Deducted on Payments like Collected on sale of certain
SOURCE (TDS) AND TAX COLLECTION AT SOURCE salary, Interest, professional specified goods such as
(TCS) fee, Lottery prize, payment to tendu leaves, scrap, Mineral
Understanding Tax Deduction at source (TDS) and Tax contractors, Rent, purchase ores, Motor vehicles etc.
collection at Source (TCS): TDS and TCS was introduced to of immovable property etc.
collect the tax at the source from which individual’s income is
New Announcement: The TDS rates for all non-salaried
generated. Both these tools are used to minimise tax evasion
payment to residents, and tax collected at source rate will be
by taxing the income at the time when it is generated rather
reduced by 25 percent of the specified rates for the
than at a later date.
remaining period of FY 20-21. This will provide liquidity to the
Tax Deducted at Source is the tax that is deducted by tune of Rs 50,000 Crore.
Payer or buyer. For example, let’s say you earn interest on
the fixed deposit with the Bank. Here, as part of TDS, the SECOND TRANCHE - RELIEF FOR THE POOR
bank would deduct the tax income and pay only the
AND VULNERABLE SECTIONS
remaining amount to you. The tax deducted by the Bank
would then be paid to the Government on your behalf. Later, The Second tranche of the Economic Stimulus package has
while filing Income tax returns, TDS would be considered as focused on providing relief to the poor and vulnerable
tax paid and this amount would be adjusted against the total sections of the Indian Society. It has sought to ameliorate
the hardships faced specifically by migrant labours, street

vendors, migrant urban poor, small traders, self-employed Special Credit Facility for Street Vendors :Government will
people, small farmers etc. The broad contours of the second launch a special scheme within a month to facilitate easy
tranche of package is as given below: access to credit to street vendors. Under this scheme, bank
Free food grains supply to migrants for 2 months: credit facility for initial working capital up to Rs. 10,000 for
Additional food grain to all the States/UTs at the rate of 5 kg each enterprise will be extended. This scheme will cover
per migrant labourer and 1 kg Chana per family per month urban as well as rural vendors doing business in the adjoining
for two months i.e. May and June 2020 free of cost. Migrant urban areas.
labourers not covered under National Food Security Act or EXTENSION OF CREDIT LINKED CAPITAL SUBSIDY
without a ration card in the State/UT in which they are SCHEME TO BOOST HOUSING SECTOR
stranded at present will be eligible.
About Credit linked Capital Subsidy Scheme: It is a
AFFORDABLE RENTAL HOUSING COMPLEXES component of Pradhan MantriAwasYojana (PMAY). Under this
Government will launch a scheme under Pradhan Mantri component, the Government pays certain part of interest on
Awas Yojana (PMAY) for migrant labour/urban poor to the home loans taken by the home buyers from Banks and
provide ease of living at affordable rent. This would be done NBFCs.
through: Beneficiaries of Economically Weaker Section (EWS)/Low
1. Converting government funded housing in the cities into Income Group (LIG), Middle Income Group (MIG)-I and Middle
Affordable Rental Housing Complexes (ARHC) under PPP Income Group (MIG)-II seeking housing loans from Banks,
mode; Housing Finance Companies and other such institutions for
acquiring/constructing houses are eligible for an interest
2. Incentivizing manufacturing units, industries, institutions,
subsidy of 6.5%, 4% and 3% on loan amount up to Rs. 6 lakhs,
associations to develop Affordable Rental Housing
Rs. 9 lakhs and Rs. 12 lakhs respectively.
Complexes (ARHC) on their private land and operate; and
The Interest subsidy is credited upfront to the loan account of
3. Incentivizing State Government Agencies / Central
beneficiaries resulting in reduced effective housing loan and
Government Organizations on the similar lines to develop
Equated Monthly Instalment (EMI).
Affordable Rental Housing Complexes (ARHC) and operate.
New Announcement: The Credit Linked Subsidy Scheme for
INTEREST SUBVENTION FOR MUDRA-SHISHU LOANS
Middle Income Group has been extended by one more year
About Mudra Scheme: The Pradhan Mantri MUDRA Yojana st st
from 31 March 2020 to 31 March 2021.
(PMMY) providing for loans up to Rs. 10 lakhs to the non-
Creating employment using CAMPA funds: Approximately
corporate, non-farm small/micro enterprises. Under PMMY,
Rs 6,000 crore of funds under Compensatory Afforestation
all banks are required to lend to non-farm sector income
Management & Planning Authority (CAMPA) will be used
generating activities below Rs.10 lakhs. These loans are
for Afforestation and Plantation works, including in urban
classified as MUDRA loans under PMMY as given below:
areas, Forest management, soil & moisture conservation
• Shishu (loans up to Rs. 50,000); works, forest and wildlife related infrastructure development
• Kishore (loans from Rs. 50000 to Rs. 5 lakhs); etc.This will create job opportunities in urban, semi-urban
and rural areas and also for Tribals.
• Tarun (loans from Rs.5 lakhs to Rs. 10 lakhs)
Emergency Working Capital for farmers through NABARD:
New Announcement: The total loan disbursed under the
NABARD will extend additional re-finance support of Rs
MUDRA-Shishu is around Rs 1.62 Lakh crore. Government of
30,000 crore for meeting crop loan requirement of Rural
India will provide Interest subvention of 2% for prompt
Cooperative Banks and RRBs.
payees for a period of 12 months (applicable only to Mudra-
Shishu loanees) Concessional credit through Kisan Credit Cards (KCC):
Special drive to be undertaken to provide concessional credit
Note: The Interest subvention means that the Government
to PM-KISAN beneficiaries through Kisan Credit Cards.
pays a part of Interest taken on loans.
Fishermen and Animal Husbandry farmers will also be
included in this drive.

THIRD TRANCHE - REFORMS IN THE exports. Accordingly, the policy calls for diversification of
India's export basket.
AGRICULTURE SECTOR INCLUDING
AGRICULTURAL MARKETING The policy also calls for substantial value addition in our
agricultural exports. The value addition would boost India's
rd
As part of 3 tranche, the Government has converted the
exports and give an added thrust to food processing
COVID-19 crisis into a reform opportunity by undertaking
Industries. Further, PM has recently outlined the vision for
long pending reforms in the agriculture marketing. These
‘Vocal for Local with Global outreach’ wherein we need to
reform measures are considered to be quite significant and
brand the Indian products so that they have global outreach.
reduce the agrarian distress in the country.
Hence, there is a need to support the micro food processing
Out of 11 measures announced by the Finance Minister, 8 Industries to attain these goals.
measures are for improving agricultural infrastructure and 3
New Announcement: The Government has launched Rs
measures are for administrative and governance reforms,
10,000 crores Scheme for Formalisation of Micro-food
including removing restrictions on sale and stock limits of
enterprises. Under this scheme, the Existing micro food
farm produce.
enterprises, Farmer Producer Organisations, Self Help
AGRI INFRASTRUCTURE FUND FOR FARM-GATE Groups and Cooperatives would be supported for
INFRASTRUCTURE FOR FARMERS undertaking technical upgradation.
Background: The agriculture marketing infrastructure in Doing so, would enable them to meet international food
India continues to remain outdated and highly fragmented. In standards, build brand value and market their products.
spite of increase in the production of agricultural The focus of the Government would be on Cluster based
commodities, the farmers have not got benefit due to the approach (e.g. Mango in UP, Kesar in J&K, Bamboo shoots in
poor marketing infrastructure. North-East, Chilli in Andhra Pradesh, Tapioca in Tamil Nadu,
A High-level Expert Committee constituted by Ministry of Ragi in Karnataka, Turmeric in Telangana etc.)
Agriculture has estimated that 25 to 30 % of fruit and Benefits: Improved health and safety standards, integration
vegetables and 8 to 10 % of food grains are wasted annually with retail markets, improved incomes. It will also help in
due to lack of post-harvest technology and non-existence of diversifying our export basket with substantial amount of
integrated transport, storage and marketing facilities, etc. The value addition.
total estimated post-harvest losses amounts to around Rs
PRADHAN MANTRIMATSYASAMPADAYOJANA
92,000 crores.
(PMMSY)
New announcement: The Government has unveiled Rs 1
Background: Presently India is the second largest fish
lakh crore worth Agri Infrastructure Fund to improve the
producing and second largest aquaculture nation in the world
farm-gate infrastructure such as collection centres, storage,
after China. The Fisheries sector is an important sector of
cold chain infrastructure etc. This fund would provide
food production providing nutritional security, livelihood
necessary funding support to Primary Agricultural
support and gainful employment to more than 14 million
Cooperative Societies, Farmers Producer Organizations,
people. It also accounts for around 10% of the total exports
Agriculture entrepreneurs, Start-ups, etc. to invest in post-
and nearly 20% of the agricultural exports, and contribute to
harvest management infrastructure.
about 0.91% of the GDP.
FORMALISATION OF MICRO FOOD ENTERPRISES
However, the fisheries sector faces number of challenges and
(MFE)
problems such as
Background: The agriculture export policy 2018 calls for
• Traditional techniques of fishing
doubling India's exports of agricultural commodities from $
30 bn to $ 60 bn by the end of 2022. Further, the agricultural • Lack of Modernised fishing vessels
exports from India are basically dominated by Rice, Marine • Lack of quality inputs in terms of seed, feed.
products and Meat, which comprise of around 50% of our
• Lack of Cold chain infrastructure

• Higher post-harvest loses Mouth Disease (FMD) and for brucellosis. Till date, 1.5 crore
cows & buffaloes tagged and vaccinated.
• Poor health management and marketing support.
Hence, in order to solve these problems, the Finance Minister ANIMAL HUSBANDRY INFRASTRUCTURE
had launched Pradhan MantriMatsyaSampadaYojana DEVELOPMENT FUND - RS. 15,000 CRORES
(PMMSY) in the Union budget 2019-20. Background: India is the largest producer of Milk in the
New Announcement: The Government has now given final world with an annual milk production of around 180 MT. The
shape to the Pradhan MantriMatsyaSampadaYojana (PMMSY) per-capita availability of milk has increased to 375 grams/day
and decided to launch it immediately. The scheme would as against the global average of 300 grams/day. Most of the
focus on integrated, sustainable, inclusive development of milk in the country is produced by small, marginal farmers
marine and inland fisheries. The scheme would have total and landless laborersand hence considered vital to promote
outlay of Rs 20,000 crores out of which Rs 11,000 crore is inclusive growth and development in India.
earmarked for activities in Marine, Inland fisheries and New announcement: There are number of high milk
Aquaculture and the remaining Rs 9,000 crores is earmarked producing areas within India that have great potential for
for improving fishing infrastructure such as Fishing Harbours, attracting private sector investment in Dairy. The private
Cold chain, Markets etc. Emphasis would also be given to sector can make substantial amount of investment in Dairy
Cage Culture, Seaweed farming, Ornamental Fisheries as well Processing, value addition and cattle feed infrastructure.
as New Fishing Vessels. Hence, in order to incentivise private sector investment, the
Benefits: It will lead to additional Fish Production of 70 lakh Government has launched Rs 15,000 crores worth Animal
tonnes over 5 years. Employment to over 55 lakh persons; Husbandry Infrastructure Development Fund.
double exports to Rs 1 lakh crores. Under this fund, financial incentives would also be given for
NATIONAL ANIMAL DISEASE CONTROL PROGRAMME private sector investment in certain niche products such as
Milk powder, Ghee, butter, Cheese etc.
Background: India has the world's largest livestock
population comprising of cattle, buffalo, sheep, goats, pigs, PROMOTION OF HERBAL CULTIVATION
poultry birds etc. The livestock sector is an important source Background: India is one of the richest countries in the world
of livelihood and employment generation and contributes in terms of biodiversity. Out of the 17000-18000 species of
around 25% to the overall agricultural GDP. However, one of flowering plants, more than 7000 are estimated to have
the biggest problem of this sector is the occurrence of Food medicinal usage in folk and documented systems of medicine
and Mouth disease and Brucellosis among the livestock. The like Ayurveda, Unani, Siddha & Homoeopathy (AYUSH System
economic loss due to these diseases is tremendous due to of Medicine). Medicinal plants are not only a major resource
death of young animals, marked reduction in milk yield, base for the traditional medicine & herbal industry but also
abortion in advance stage of pregnancy and reduced working provide livelihood and health security to a large segment of
ability of drought animals, decline in quality of meat, Indian population.
reduction in fertility and poor quality of semen in breeding
In order to promote medicinal plants sector, the Government
bull etc. The diseases also restrict the possible export of
of India has set up National Medicinal Plants Board (NMPB) in
livestock and livestock products in the overseas.
2000. Currently, the board is located in Ministry of AYUSH
Hence, in order to prevent the occurrence of Food and Mouth (Ayurveda, Yoga & Naturopathy, Unani, Siddha &
disease and Brucellosis, the Government had launched Homoeopathy).
National Animal Disease Control Programme in September
New announcement:
2019.The NADCP aims to control these two diseases by 2025,
and to eradicate them by 2030. • The National Medicinal Plants Board (NMPB) has so far
supported 2.25 lakh hectare area under cultivation of
New Announcement: The Government has stated that it
medicinal plants.
would ensure 100% vaccination of cattle, buffalo, sheep, goat
and pig population (total 53 crore animals) for Foot and • Additional 1 million hectares will be covered under Herbal
cultivation in next two years with outlay of Rs. 4,000

crores. This will lead to Rs. 5,000 crore income generation reduction of price of perishable fruits and vegetables at the
for farmers. farm level needs to be prevented. Accordingly, Operation
• NMPB will bring 800-hectare area by developing a corridor Greens will be extended from Tomatoes, Onion and Potatoes
of medicinal plants along the banks of Ganga. (TOP) to ALL fruits and vegetables (TOTAL).
The Scheme features will be as follows:

• Network of regional Mandis for Medicinal Plants would also
be set up. • 50% subsidy on transportation from surplus to deficient
markets.
BEEKEEPING INITIATIVES – RS 500 CRORE
• 50% subsidy on storage, including cold storages.
Background: Beekeeping or Apiculture is an important allied
activity which can emerge as source of income and • Pilot for 6 months – Will be expanded and extended
employment generation in India. Apiculture also increases Expected outcomes: Better price realisation to farmers,
yield & quality of crops through pollination. Hence, the reduced wastages, affordability of products for consumers.
Government had earlier launched new Central Sector Scheme
AMENDMENTS TO ESSENTIAL COMMODITIES ACT
entitled “National Beekeeping & Honey Mission (NBHM)” for
overall promotion and development of scientific beekeeping Essential Commodities Act and its rationale: The Essential
in mission mode to achieve the goal of “Sweet Revolution” in Commodities Act was enacted in 1955 to make available
the country. It gave an added thrust on capacity building & certain commodities to the consumers at fair prices. It is used
trainings, setting up of Integrated Beekeeping Development by the Government to regulate the production, supply and
Centres (IBDCs), processing, value addition, market support distribution of commodities which are declared as essential
etc. & R&D. under the act. The list of items under the Act includes drugs,
fertilizers, pulses and edible oils, and petroleum and
New announcement: Taking forward the previous initiatives,
petroleum products. The Central Government may add or
the Government has now announced a new scheme for
remove a commodity from the schedule in consultation with
boosting beekeeping activities within India. The scheme
the State Governments.For instance, in March 2020, the
would focus on:-
Union Government declared masks and hand-sanitisers as
• Infrastructure development related to Integrated essential commodities under the Essential Commodities Act,
Beekeeping Development Centres, Collection, Marketing 1955. This was done in order to ensure that they are available
and Storage Centres, Post-Harvest & value Addition to people at the right price and in the right quality.
facilities etc;
How does it work? If the Centre finds that a certain
• Implementation of standards & Developing traceability commodity is in short supply and its price is increasing, it can
system; notify stock-holding limits on it for a specified period.
• Capacity building with thrust on women; Anybody trading or dealing in a such a commodity, be it
wholesalers, retailers or even importers are prevented from
• Development of quality nucleus stock and bee breeders.
stockpiling it beyond a certain quantity. This improves
FROM ‘TOP’ TO TOTAL - RS 500 CRORE supplies and brings down prices.
Background: Operation Greens was announced in the HOW ESSENTIAL COMMODITIES ACT HINDERS THE
Budget 2018-19 with an outlay of Rs 500 crores to stabilize
AGRICULTURAL MARKETING?
the supply of Tomato, Onion and Potato (TOP) crops. It seeks
to ensure availability of TOP crops throughout the country • Fails to realize stocking is essential: The fear of bringing
round the year without price volatility. This scheme is the agricultural commodities under the act has prevented
implemented by the Ministry of Food Processing Industries the traders and processors from undertaking bulk
and NAFED acts as the nodal agency. procurement of agricultural commodities during bumper
harvest season. Hence, the increase in the agricultural
New announcement: The COVID-19 pandemic has disrupted
production has not translated into higher income levels.
the supply chains and farmers are not being able to sell their
Further, since almost all crops are seasonal, ensuring
produce in the markets. Hence, the distress sale and

round-the-clock supply requires adequate build-up of are required to compulsorily sell their produce only to the
stocks during the season. registered traders in the APMCs. They cannot sell their
• Poor investment in Storage infrastructure: With produce directly to the end consumers, processors or
frequent stock limits, traders have not invested in better exporters. Similarly, some of the states have restricted the
storage infrastructure. farmers from selling their produce outside their APMC Zones.
However, such kind of restrictions are not applicable to sale
• Adverse impact on Food Processing Industry: Food
of industrial goods.
processing industries need to maintain large stocks to run
Accordingly, in order to bring about agriculture marketing
their operations smoothly. Stock limits curtail their
reforms, the Central Government has come out with Model
Operations. In such a situation, large scale private
Agriculture produce and livestock marketing act, 2017. It has
investments are unlikely to flow into food processing and
been persuading the state government to adopt the features
cold storage facilities.
of this model legislation.
• Impact on agriculture exports: Whenever the
New Announcement: The Inter-state trade and commerce is
Government declares an agricultural commodity as
placed under the Union list. So, accordingly, the Centre can
essential, it imposes a number of restrictions on it
formulate a law to promote, regulate and restrict the inter-
including ban of export of such commodities. This
state trading of various goods. As discussed before,
prevents the Indian farmers to get the best prices on their
presently, the APMC Acts are highly restrictive and prohibit
agriculture produce from the international markets.
the farmers from selling their produce to whomsoever they
• Outdated Act: The Act is not in tune with present times. want to. We need to give adequate freedom to the farmers to
This act was enacted in 1955 when we used to frequently sell their produce anywhere within India where they are likely
face shortage of agricultural commodities. Hence, it to get higher prices. We need to dismantle fragmented
needed government intervention to clamp down on black agriculture marketing infrastructure and move towards
marketing and hoarding. However, now situation has integrated domestic market or agriculture goods.
changed completely. Now, we have surplus production of
In pursuance of such an objective, the Government had
agricultural production. Hence, accordingly, we must give
declared that it would come up with a new central law. Such a
the necessary freedom to the traders, aggregators and
central law would incorporate the following:
food processing industries to undertake bulk procurement
of the agricultural commodities. • Adequate choices to farmer to sell produce at attractive
price;
New Announcement: The Government will amend Essential
Commodities Act. Agriculture food stuffs including cereals, • Barrier free Inter-State Trade;
edible oils, oilseeds, pulses, onions and potato shall be • Framework for e-trading of agriculture produce.
deregulated. Stock limit will be imposed under very
FACILITATIVE LEGAL FRAMEWORK FOR CONTRACT
exceptional circumstances like national calamities, famine
with surge in prices. Further, no such stock limit shall apply to FARMING
processors or value chain participant, subject to their What is Contract farming?Under contract farming,
installed capacity or to any exporter subject to the export agricultural production (including livestock and poultry) can
demand. be carried out based on a pre-harvest agreement between
AGRICULTURE MARKETING REFORMS TO PROVIDE buyers (such as food processing units and exporters) and
producers (farmers or farmer organizations). The producer
MARKETING CHOICES TO FARMERS
can sell the agricultural produce at a specific price in the
Background: Agriculture is a subject which is placed under future to the buyer as per the agreement. These benefits
the State List. Accordingly, the state governments have both the producers as well as the buyers. The producer can
enacted their respective APMC Acts to regulate the marketing get support from the buyer for improving production through
of agriculture commodities. However, the APMCs are inputs (such as technology, pre-harvest and post-harvest
considered to be highly restrictive and prohibitive and hence infrastructure) as per the agreement. The producer canalso
go against the interest of farmers. For example, the farmers reduce the risk of fluctuating market price and demand. On

the other hand, the buyer can reduce the risk of non- with processors, aggregators, large retailers, exporters etc. in
availability of quality produce. a fair and transparent manner. Risk mitigation for farmers,
Current Legal Framework: Currently, contract farming assured returns and quality standardization shall form
requires registration with the Agricultural Produce Marketing integral part of the framework.
Committee (APMC) in few states. This means that contractual

agreements are recorded with the APMCs which can also FOURTH TRANCHE- STRUCTURAL REFORMS
resolve disputes arising out of these contracts. Further, IN SECTORS SUCH AS COAL, MINERAL, CIVIL
market fees and levies are paid to the APMC to undertake AVIATION, DEFENCE ETC.
contract farming. The central government has formulated
The 4th structural reforms in the eight sectors of Coal,
Model Agriculture Produce and Livestock Contract Farming
Minerals, Defence production, Civil Aviation, Power Sector,
and Services (Promotion & Facilitation) Act, 2018 which
Social Infrastructure, Space and Atomic energy.
provides for contract farming. Accordingly, the central
Government has asked the states to use this as reference Coal Sector: In the previous Editions of Focus Magazine, we
while enacting their respective laws. had discussed various reforms introduced by the
Government in the coal sector. The same has been
New Announcement: The Government will finalise
summarized as below:
a facilitative legal framework to enable farmers to engage
Taking these reforms forward, some new announ- 3. Coal Gasification / Liquefication will be incentivised
cements were made in the coal Sector. through rebate in revenue share. This will result in
1. Auction of Coal mine blocks through the Revenue sharing significantly lower environment impact and also assist
mechanism instead of present fixed Rupee/tonne India in switching to a gas-based economy.
mechanism.
2. The entry norms will be liberalised. Nearly 50 Blocks will be

offered immediately.

MINERAL SECTOR or geochemical surveys and geological mapping. Prospecting

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

The Government has now proposed the introduction of a Aircraft Maintenance, Repair and Overhaul (MRO): The
seamless composite exploration-cum-mining-cum-production aircraft MRO is the overhaul, repair, inspection or
regime. modification of an aircraft or aircraft component to keep it
New Mining Blocks: Around 500 mining blocks would be operational and air worthy. The global MRO market is
offered through an open and transparent auction process. estimated to be around $60 billion. However, this MRO
industry in India is still as nascent stage and accounts for only
DEFENCE SECTOR
1% of the global market. Only around 5-10 per cent of MRO
The following steps have been taken to promote "Make in work for Indian airlines is carried out in India and most of it is
India" for defence production and reduce India's import of outsourced to third-party service providers outside India.
defence Goods. Thus, the rapidly growing aircraft fleet, growth in domestic
Corporatisation of Ordnance Factory Board (OFB): traffic and the increasing age of Indian aircrafts (both civil and
Presently, the OFB is a subordinate/attached office of the defence) needs well developed world-class MRO Industry in
Department of Defence Production and has 41 factories. India. Against this backdrop, the Government has laid down a
Since, it is a government department directly managed by the roadmap for India to become a global hub for Aircraft
Government, it faces number of problems: Maintenance, Repair and Overhaul (MRO).
1. Lack of functional and operational flexibility--> Almost all POWER SECTOR

the approvals related to Human resource, finance, Tariff Policy laying out the following reforms will be released:
modernisation etc. need to be taken from government.
Consumer Rights: DISCOM inefficiencies not to burden
2. Bureaucratic delays and red-tapism--> More focus on rules consumers. Standards of Service and associated penalties for
and regulations rather than meeting the production goals. DISCOMs. DISCOMs to ensure adequate power. Load-
3. Low capacity to innovate and improve the efficiency. shedding to be penalized
4. Restrictions on entering into joint venture partnerships Promote Industry: Progressive reduction in cross subsidies.
with private sector entities etc. Time bound grant of open access. Generation and
transmission project developers to be selected competitively
Nair Committee (2000), Kelkar Committee (2005)
recommended for corporatisation of corporatisation of OFB Sustainability of Sector: Timely payment of power
to do away with the above-mentioned problems. generation companies. DBT for Power subsidy. Installation of
Smart prepaid meters.
Liberalisation of FDI norms: The FDI limit in the defence
manufacturing under automatic route will be raised from BOOSTING PRIVATE SECTOR INVESTMENT IN SOCIAL
49% to 74%. INFRASTRUCTURE
Reducing Defence Import Bill: Government to notify a list of Viability Gap Funding (VGF) Scheme: The Ministry of
defence weapons whose import would be banned. Idea here Finance is presently implementing Viability Gap Funding
is to boost their domestic production. Scheme in order to provide financial support to the PPP
CIVIL AVIATION SECTOR projects that are socially and economically desirable but
financially unviable on account of lower returns, long
Efficient utilisation of Air Space: Currently, only 60 percent
gestation period etc. For such projects, the Ministry of
of the Indian airspace is freely available for passenger
Finance provides one-time grant of up to 20% of the project
aircrafts and rest is controlled by military. Utilizing the rest of
cost.
the airspace will reduce flying cost of Rs 1000 crore by saving
fuel and time. The Government has stated that restrictions on The Government or statutory entity that owns the project
utilisation of the Indian Air Space will be eased so that civilian may provide additional grants out of its budget up to further
flying becomes more efficient. 20% of the project cost.
Airports through PPP: 6 more airports have been identified New Announcement: In order to boost Social Infrastructure,
for Operation and Maintenance on Public-Private Partnership the Government will enhance the quantum of Viability Gap
(PPP) basis. Funding (VGF) up to 30% each of Total Project Cost as VGF by

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

existing support of 20 % each from Government of India and
States/Statutory Bodies shall continue.
SPACE SECTOR: BOOSTING PRIVATE PARTICIPATION

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

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

2. Lack of dedicated hospitals to deal with COVID-19 like Satyanarayana to create a framework for leveraging digital
pandemics. technology in the field of health.
3. Absence of dedicated labs for testing at the block level and The committee has recommended for the adoption of
in rural areas. National Digital Health Blueprint- a document which would
Announcement: As stated before, we need to turn this crisis act as reference for the creation of National Digital Health
into opportunity, learn from our past mistakes and be better Ecosystem (NDHE). It had also recommended the
prepared to deal with such situations in future. Accordingly, Government to set up National Digital Health Mission
the Finance Minister has outlined the following Health (NDHM) to implement the National Digital Health Blueprint.
Reforms and Initiatives: New announcement: The Government has accepted the
Increased investments in Public Health recommendations of the committee and has decided to
implement the National Digital Health Blueprint under the
• Public Expenditure on Health will be increased. (This was
National Digital Health Mission.
already provided under the National Health Policy 2017).
Analysis of the decision: Some of the measures announced
• Investments in grass root health institutions: Ramp up
by the Government such as National Digital Health Mission,
Health and Wellness Centres in rural and urban areas.
setting up of district level Infectious Diseases Hospitals,
Note: Under the Ayushman Bharat Scheme, the existing 1.5 ramping up of diagnostic labs are noteworthy. However,
lakh Sub Health Centres and Primary Health Centres being these initiatives would be successful only when the private
transformed into Health and Wellness Centres. The HWCs are sector entities and state governments are willing to come
to provide preventive, promotive, rehabilitative and curative forward. For example, diagnostic labs in the rural areas
care for an expanded range of services encompassing would be set up by the private sector only when the
reproductive and child health services, communicable Government comes out with attractive incentives.
diseases, non-communicable diseases, palliative care and
Similarly, Health is a subject under the state list and hence
elderly care etc.
ultimately, the state Governments would have to take
Preparing India for any future pandemics responsibility for ramping up investments in healthcare
• Setting up of Infectious Diseases Hospital Blocks in all infrastructure.
districts to deal with COVID-19 like pandemics in future. 3. Technology Driven Education with Equity
• Strengthening of lab network and surveillance by setting post-COVID
up integrated Public Health Labs in all districts & block
Background: Amidst the nationwide lockdown, schools and
level Labs & Public Health Units to manage pandemics.
universities are depending on the online modes of teaching
• Setting up of National Institutional Platform for One health in order to maintain continuity of education. Hence, this gives
under ICMR. This platform seeks to bring together various us an opportunity to deploy new tools to make education
Indian institutions involved in the R&D of infectious delivery meaningful to students. It is a chance for us to make
diseases such as COVID-19. This platform seeks to develop our education system more efficient and productive by
core capacity to deliver the One health Approach to leveraging digital technology.
prevent, detect, and respond to infectious disease
New Announcement:PM eVIDYA programme for multi-
outbreaks in animals and humans.
mode access to digital/online education to be launched
National Digital Health Mission: immediately. It would consist of:
Background: The National Health Policy 2017 emphasises • DIKSHA for school education in states/UTs; e-content and
that lofty health ideals such as Citizen centricity, quality of QR coded Energized Textbooks for all grades (one nation,
care, better access, universal health coverage, and one digital platform).
inclusiveness could be achieved by leveraging the power of
• One earmarked TV channel per class from 1 to 12 (one
the digital technologies. In order to give shape to such an
class, one channel)
endeavour, the Ministry of Health and Family welfare
appointed a committee under the leadership of • Extensive use of Radio, Community radio and Podcasts

• Special e-content for visually and hearing impaired. provide relief to the MSME sector. The increase in the
threshold limit was put into effect in March 2020 and the
• Top 100 universities will be permitted to automatically
same was reiterated by the Finance Minister as part of 5th
start online courses by 30th May, 2020.
tranche of Economic measures.
Note:National Teacher Platform (NTP) known as "DIKSHA"
is an initiative of the Ministry of Human Resource • Special insolvency resolution framework for MSMEs:
Development. It is a state-of-the-art platform built to host Section 240A of the IBC empowers the central
Open Educational Resources (OER) and tools for Teachers in Government to come up with a special insolvency
Schools. resolution for the MSMEs. Accordingly, the Finance

Minister has now announced that the Government would
• Manodarpan- An initiative for psychosocial support of
soon come up with a notification for the special insolvency
students, teachers and families for mental health and
framework for MSMEs.
emotional wellbeing to be launched immediately.
Halt on IBC Proceedings: Suspension of fresh initiation of
• National Foundational Literacy and Numeracy Mission for insolvency proceedings up to one year depending upon the
ensuring that every child attains Learning levels and
pandemic situation.
outcomes in grade 5 by 2025 will be launched by
December 2020. 5. Decriminalisation of Companies Act defaults
Analysis of the decision:Undoubtedly, these decisions of the Background:
government should be welcomed. However, we need to • The Companies Act, 2013 was enacted to consolidate and
ensure that these initiatives do not lead to disparities in the amend the law relating to companies. However, violations
educational outcomes due to digital divide. According to India of number of provisions under this law are treated as
Internet Report 2019, only 36% of India’s population have criminal offences and hence considered to be constraint
access to Internet. Hence, Going forward, we need to on ease of doing business.
leverage the Digital India Programme to bridge the digital
• Accordingly, Company Law Committee (CLC) appointed by
divide and ensure equitable and inclusive outcomes for
the Ministry of Corporate affairs has given number of
digital learning.
recommendations to decriminalise various provisions of
4. Ease of Doing Business through IBC related the Companies Act to improve the ease of doing business.
measures • Accordingly, the Government had introduced Companies
• Background: The supply side disruption caused by the (Amendment) Bill, 2020 before the Lok Sabha in March
COVID-19 has made it difficult for the MSMEs to repay 2020 to decriminalise number of provisions.
their loans. There is a genuine apprehension that such New Announcement: TheCompanies (Amendment) Bill,
MSMEs may default on the loan repayment and hence fall 2020 was not taken up for discussion in the Parliament due
under the resolution process as provided under the to COVID-19. The Government would go for ordinance route
Insolvency and Bankruptcy code (IBC). in order to give effect to the amendments to the Companies
• Presently, the threshold for invoking IBC for the corporate Act.
entities is Rs 1 lakh i.e. if a company defaults on the loan 6. Direct listing of Indian Companies in Foreign
repayment of Rs 1 lakh and above, then it would
Jurisdictions
automatically come under the resolution process of the
IBC. (For individuals, the threshold is Rs 1000). Background:The existing legal framework in India does
not permit the direct listing of equity shares of
• New Announcement:
companies incorporated in India on foreign stock
• Increase in threshold for invoking IBC for the Corporate: exchanges. Similarly, companies incorporated outside India
Since, the COVID-19 pandemic has made it difficult for the cannot directly list their equity shares on Indian stock
MSMEs to repay their loans, the Government has decided exchanges.
to increase the threshold for invoking IBC for the
corporate entities from Rs 1 lakh to Rs 1 crore. This would

The only available routes for companies incorporated in securities directly in the stock markets of the other countries.
India to access the equity Capital markets of foreign New Announcement:The Government would soon come out
jurisdictions is through the American Depository Receipts with the necessary regulatory framework to enable the Indian
(“ADR”) and Global Depository Receipts (“GDR”) regime. companies to list their securities directly on the stock markets
Companies incorporated in India can list their debt securities in other countries. It will enable the Indian companies to raise
on foreign stock exchanges directly through the masala overseas capital directly.
bonds and/or foreign currency convertible bond 7. Public Sector Enterprise Policy for a New,
(“FCCB”)/foreign currency exchangeable bonds (“FCEB”)
Self-reliant India
framework.
New Announcement: Government will announce a Public
On the other hand, companies incorporated outside India
Sector Enterprise Policy. The broad contours of the policy is
can access the Indian capital markets only through the
as given under:
Indian Depository Receipts (“IDR”) framework
• All the sectors would be opened up for private sector. The
UNDERSTANDING ADR/GDR/IDR
Public sector enterprises would play important role in
certain strategic sectors only.
• List of strategic sectors requiring presence of PSEs in

public interest will be notified. In such strategic sectors, at
least one enterprise will remain in the public sector but
private sector will also be allowed
• To minimise wasteful administrative costs, number of

public sector enterprises in strategic sectors will ordinarily
be only one to four; others will be privatised/ merged/
brought under holding companies.
The ADRs/GDRs are the financial instruments through which • In other non-strategic sectors, PSEs will be privatized.
the Indian Companies can raise capital from the equity
8. Support to State Governments
markets based in other countries. Indian companies are
prohibited from directly issuing rupee denominated Background:
securities which can be listed abroad on foreign stock • The Constitution of India confers the power of borrowing
exchanges. Thus, the equity shares of an Indian company on both the Centre (Article 292) and the States (Article
cannot be directly listed on, say, the New York Stock 293). However, the centre and states are not placed on
Exchange. To overcome this problem, Indian companies equal footing with respect to borrowing powers.
adopt the ADR/ GDR route.
• The Central Government has unrestricted powers of
An ADR is quoted in US dollars and one ADR represents a borrowing in India and from abroad subject only to such
certain number of equity shares in the Indian company. limits as may be fixed by the Parliament by law (Article
The foreign investors can then directly buy and sell the ADRs 292). On the contrary, the borrowing powers of the States
as if they were the shares of a foreign corporation. are limited (Article 293).
While ADRs are specific to US i.e. they are issued by the • They have no power to raise loans outside India. Within
Indian companies in US Market. The GDRs are issued by the India, a State may raise loans from the Government of
Indian companies in the other countries. India or float public loans. However, a State cannot raise a
Similarly, the Indian Depository Receipts (IDRs) are issued by public loan without the consent of the Government of
the foreign companies in India to raise capital from the indian India if there is still outstanding any part of a loan which
investors. has been advanced to it by the Government of India.
In 2018, a committee appointed by SEBI had recommended • Since all the State Governments have been and continue
that Indian companies should be allowed to list their to be indebted to the Central Government, the Central

Government effectively controls the amount of public debt 2. The Government's package of Rs 20 lakh crore also
raised by State Governments. includes the Rs 8 lakh crores liquidity injection measures
• This constitutional mechanism has been used by the introduced by the RBI. These measures do not entail any
Central Government to ensure that State Governments do fiscal support of the Government.
not exceed annual borrowing limits that are set at the 3. Some of the announcements made by the Government
beginning of every year. Presently, these limits are set in simply include the frontloading of budget announcements.
accordance with a formula that ensures that the fiscal Case in point is the Rs 17,000 crores under PM-KISAN
deficit of no State exceeds 3% of Gross State Domestic Scheme, which in anyway was required to be spent for the
Product. financial year.
New Announcement: Why is it concerned to be a problem?
• The finances of the States have been adversely affected According to an assessment by the National Institute of Public
due to pandemic. Accordingly, the Centre has decided to Finance and Policy (NIPFP), the way things are going, India’s
increase the borrowing limit of the States from 3% to 5% GVA will contract by a whopping 13% this year under the Base
for 2020-21. This will give States extra resources of Rs. 4.28 case scenario. The Base case scenario refers to a scenario
lakh crores. where governments (both Centre and states) bring down
their expenditure in line with their falling revenues to
• However, the increase in the borrowing limit of the states
maintain their fiscal deficit target. This report has
is conditional wherein the state governments are required
highlighted that only if the government spends 3% of the GDP
to bring in reforms to avail the enhanced limit. Some of
over and above what it promised to do in the Union Budget
these reform measures are: universalisation of ‘One
2020-21, will the economic growth stay in the positive
Nation One Ration card’, Ease of Doing Business, Reforms
territory or else the Indian economy will contract. Hence, to
in Power distribution and Improvement in Urban local
lift GDP growth, the governments would have to spend more
body revenues
and counteract the natural downward spiral of the economy.
ECONOMIC STIMULUS PACKAGE- THE Economic Package - More on Supply Side rather than
Demand side: The main pillar of the Economic package rests
GOOD, BAD AND UGLY
on boosting the supply side of the economy i.e. boosting the
CONCERNS WITH THE ECONOMIC PACKAGE production--> Creation of employment opportunities-->
Economic Package - More on monetary side rather than increase in income levels--> Increase in demand--> Increase
Fiscal Policy side in the GDP growth. (Indirectly boost demand in economy).
The Government has announced the total economic stimulus Why is it concerned to be a problem? The consumption
package of Rs 20 lakh crores. However, some of the expenditure accounts for 60% of India's GDP and hence it is
economists have pointed out that the total fiscal support considered to be major driver of India's GDP. Hence, some of
extended by the Government amounts to mere Rs 1 lakh the economists have pointed out that boosting consumption
crores (less than 1% of GDP). expenditure by higher government expenditure in creation of
infrastructure, reducing the tax rates, direct cash transfers to
The huge difference between the benefits and the actual cost
the poor and vulnerable sections etc.
is on account of number of reasons:
The other side of the Debate- A Pragmatic and Prudent
1. Most of the support extended by the Government is in
approach of Government
form of bank guarantees on the loans extended by the
Banks and hence the fiscal support of the Government is 1. According to some of the estimates, the Banks within India
lower than the economic package. For example, the are sitting on surplus cash of around Rs 8 lakh crores. The
Government has announced collateral free loans of Rs 3 sovereign guarantee extended by the Government would
lakh crores to MSMEs wherein the Government would act nudge the Banks to give their surplus cash in the form of
as guarantor. So, the overall fiscal support is not Rs 3 lakh loans to these sectors. Hence, a major part of the first set
crores but depends upon the extent of loan defaults. of economic package has been geared towards the

sovereign guarantee to be extended to the Bank loans

#Monetary Policy
given to MSMEs, NBFCs and so on. Now, this is considered
to be a smart move by the Government.
On one hand, it would lead to greater credit creation

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

NEED TO INTRODUCE SDF IN INDIA

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

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

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

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

BAD BANK-PROS AND
FACED BY STATE GOVERNMENTS
CONS
Consolidated Sinking Fund (CSF) of State Governments -
Relaxation of Guidelines #Banking
What is Sinking Fund? The Sinking Fund is a separate
dedicated fund that may be set up in order to meet the debt
repayment obligations on bonds. For example: - Let's say a
company issues Bond worth Rs 1000 crores with a maturity
period of 10 years. Now, in order to manage its debt IN NEWS
efficiently, the Company may set up separate dedicated The twin balance sheet problem in India has led to decline in the
sinking fund. Every year, the company may decide to transfer credit creation, investment rates and consequent slowdown of
Rs 100 crores to this fund for the next 10 years. This would the Indian Economy. The Gross NPAs of the scheduled Banks
enable the company to fulfil its debt obligations of Rs 1000 stands at around 9.3%, which is considered to be the worst NPA
crores when the Bond matures after 10 years. among the emerging economies. So, how do we solve the
Consolidated Sinking Fund (CSF): Just like how the problem of NPAs?
companies borrow money from market, even the State Recently, the Indian Banks Association (IBA) proposed the
Governments also borrow money. So, even the State Government to set up a Bad Bank. Prior to this, the Economic
Governments may set up Consolidated Sinking fund to Survey 2016-17 had recommended the Government to set up
efficiently manage their debt. In this regard, the RBI had centralised Public Sector Asset Rehabilitation Agency (PARA) to
introduced Consolidated Sinking Fund (CSF) as a scheme for

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

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

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

coordination and delays in

the recovery of NPAs.
DOLLAR SWAP LINE
Setting up of Bad Bank
would enable the multiple
#Finance
Banks to transfer their NPAs
simultaneously to Bad Bank
and improve their balance IN NEWS
sheets
Recently, there has been large-scale outflow of FPIs from India
Way Forward: The Economic Survey 2015-16 emphasized leading to shortage of dollars and consequently record fall in the
that addressing the stressed assets problem would require 4 value of Rupee vis-a-vis dollars. Hence, in order to address the
R’s: Reform, Recognition, Recapitalization, and current volatility in the exchange rate and to make available
Resolution. The setting up of Bad Bank without focussing on dollars in the domestic market, India is in discussion with US for
these 4 R's would mean that the fundamental problems that Dollar Swap line. India has already entered into currency swap
led to NPAs in first place continue to remain. Hence, the agreements with number of countries such as Japan, UAE, SAARC
Government has to first focus on 4 R's before setting up Bad countries etc. So, let us understand as to how the Currency Swap
bank. agreement actually works?
PROPOSED DOLLAR SWAP LINE
The Currency swap agreement between India and USA would fixed in the first leg. Hence, there is no exchange rate risk
work in the following manner (Let's say, the Swap is for $ 100 involved in the Currency Swap agreement.
applicable for 3 months) Let' say, during the second leg of transaction (after 3
1. First Leg: The RBI would provide $100 worth Indian months), the exchange rate may have changed to $ 1 = Rs
Rupees to US Fed Bank at prevailing exchange rate. In 80 or $ 1 = Rs 60, but still the swap takes place at the
return, the Fed Bank would provide equivalent value of exchange rate used in the first leg of the transaction. Thus,
dollars ($ 100) to the RBI. the swap agreement prevents both the Central Banks from
Let’s say the prevailing exchange rate is $ 1 = Rs 70. So, any kind of exchange rate risk.
here RBI would provide Rs 7000 to Fed Bank and in return HOW WOULD IT BENEFIT INDIA?
it would get $ 100.
• The dollars availed under this route would act as second
2. Second Leg (After 3 months): US Fed Bank would return line of defence after the Forex Reserves to deal with the
Rs 7000 and take back $ 100 from the RBI. Now, this volatility.
transaction takes place at the exchange rate which was
• Reduce the speculation in the forex market and provide
stability to the exchange rate.

SOCIAL STOCK
In the Union Budget 2020-21, the Finance Minister had proposed
to establish Electronic platform- Social Stock Exchange (SSE) to
EXCHANGES
enable social enterprises such as NGOs to raise capital to meet
their social cause.
#Finance Accordingly, the Capital Market regulator, SEBI had appointed a

task force under the Chairmanship of Ishaat Hussain to
recommend the various modalities related to the working of
Social Stock Exchanges. The committee has recently submitted its
recommendations as to how SSE should work in India. Let us
IN NEWS
understand the highlights of the recommendations.
WHAT IS SOCIAL STOCK EXCHANGE (SSE)?
India needs huge amount of capital for social sector world include- UK Social Stock Exchange, South Africa's SASIX,
expenditure such as Education, Health, Sanitation, Housing Canada's Social Venture Connexion.
etc. Usually, the investors are reluctant to invest in these
RATIONALE FOR SETTING UP OF SSE IN INDIA
sectors due to poor financial returns. However, the
investment in these sectors has huge socio-economic returns • Conventional capital focusses more on financial returns
in terms of improvement of standard of living, poverty and not on socio-economic returns and hence does not
alleviation, women empowerment etc. invest in social sectors.
Hence, in order to increase investment in the social sector • India has over 3 million non-profit organizations. However,
expenditure, the Government has proposed Social Stock they face financial constraints. Hence, the SSE would
Exchange (SSE). It enables various societies, trusts, not-for- enable the non-profit organizations to raise capital for
profit companies to raise capital for undertaking expenditure social sector expenditure and thus enable India to meet
in social sectors. various Sustainable Development Goals (SDGs)
For example, Brazil's Socio-environmental Impact Exchange

(BVSA) was the first SSE. Some of the other SSEs across the

• Provides a great opportunity for donors, philanthropic • Helps to rebuild livelihoods affected by the COVID-19
foundations, companies with CSR obligations to contribute pandemic.
to socio-economic cause.
HOW CAN THE ORGANIZATIONS RAISE CAPITAL THROUGH SSE?
BROAD PRESENT ROUTE FOR

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

Fund. However, the returns generated are
channelled towards the financing of NPOs. The
returns will be considered as donations made by
the investors to NPOs.
Section 8 Promotion of Social Allowed to issue shares and Enable them to issue Zero Coupon Zero Principal
Companies Welfare, Charity, bonds. Bonds.
(Companies set up religion, art, science, However, these companies SEBI to work out appropriate regulatory
under Section 8 of Education etc. have failed to attract investors framework to enable section 8 companies to
Companies Act for due to their inability to provide raise capital.
charitable and non- financial returns to investors.
profit objectives)
For-Profit Companies Shares and Bonds SEBI would enable such companies to directly list
Organizations registered under the their shares and bonds on the SSE platform
Companies Act and
willing to invest in
Social Sectors.
OTHER IMPORTANT RECOMMENDATIONS: existing infrastructure and client relationships of the

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

• Allow funding to NPOs on SSE to count towards CSR interest rates and hence attractive returns to the investors.
commitments of companies But at the same time, being low investment grade, they are
• Provide tax benefits to NPOs and donors to increase considered to be riskier ( greater probability of default on
investment in social sector. For example, the investors repayment of such instruments). Further, there is no lock-
could be exempted from paying Capital gains Tax (CGT) in period for investment in such funds i.e. the investors
and Securities Transaction tax (STT) for transactions done can sell off their MF units anytime and redeem their
on SSE platform. money.
CRISIS IN MUTUAL FUND

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

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

CHINA LAUNCHES NEW

WHAT IS CENTRAL BANK DIGITAL CURRENCY
DIGITAL CURRENCY (CBDC)?
• Firstly,It is a digital currency backed by the Central bank of
#Banking a country. Just like currency notes issued by the Central
Bank, the CDBC is a legal tender and accepted for the
payment of various transactions within a country.
IN NEWS
• Secondly, unlike the cryptocurrencies, the CBDC is backed
The launch of Digital currency "Libra" by privately owned firm by the Central Bank and hence enjoy more amount of
"Facebook" has raised concerns among the Central Banks across stability and less volatility.
the World. They are quite worried that the launch of • Thirdly, it is considered as "programmable money" . The
Central Bank can enable the usage of CBDC for certain
cryptocurrencies by large number of private sector entities would
selected users - either the people or only the Financial
pose a threat to the existing paper-based currencies and may
Institutions. If the CBDC is enabled to be used by the
have an adverse impact on the monetary stability. Accordingly, a people, it would be referred to as "Retail CBDC". So, just
number of Central banks across the World have been like how people use cash for day-to-day transactions, they
would also be allowed to use CBDC.
experimenting with the idea of issuing their own digital Currency
• On the other hand, the CBDC can be enabled to be used
i.e. Central Bank Digital Currency (CBDC). Such an idea has been
only by the Financial institutions such as Banks, NBFCs etc
supported by both IMF and Bank of International Settlement. and in such case it would be referred to as "Wholesale
CBDC". The CBDC can be used by financial institutions for
China has finally decided to experiment CBDC in a pilot mode.
settling the transactions amongst them as well as for
The Chinese Central Bank has recently decided to test its CDBC carrying out transactions with the Central Bank. The
named as "Digital Currency Electronic Payment (DCEP)" in four people would not be allowed to use such wholesale CBDC.
Chinese cities. Subsequently, it wants to carry out a trial run of its • Further, the CBDC is also referred as a programmable
money because it can be programmed only for certain
CDBC during the 2022 Winter Olympics in Beijing.
selected transactions or they may be enabled in certain
specific regions of the country only.
• Lastly, just like cryptocurrencies, the CBDC works on

Blockchain technology and hence details of every

IRAN ADOPTS NEW

transaction- amount, accounts involved, purpose etc. is
recorded.
BENEFITS OF CBDC
CURRENCY "TOMAN"
• Promotes cashless society.
• Increase in Financial Inclusion

#Banking
• Increase in effectiveness of Monetary Policy
• Push to development of Fintech sector IN NEWS

• Provide a real time picture of economic activity and hence The Iranian Parliament has recently passed a bill to introduce
better GDP estimates and efficient monetary policy new currency "Toman" in order to replace its existing currency
formulation. Rial. The Value of the new currency "Toman" has also been
recalibrated wherein 1 Toman would be equal to 10,000 Rials.
• Traceability of transactions would crack down on
The Rial will remain legal tender alongside the Toman during a
corruption and money laundering.
two-year transition period. So, let us understand the concept of
• Counter the monopoly of private sector issued Redenomination and why has Iran decided to adopt new
cryptocurrencies. currency.
Details about the Digital Currency issued in China: The REDENOMINATION
Digital Currency issued in China is a programmed retail CBDC
• The Redenomination is the process of replacing the
which would be used by the people for certain selected
existing currencies with new currencies of different face
transactions in the four Chinese cities. So, in a way, it is not
value. It is basically undertaken in the event of
yet a full-fledged digital currency. It is still in experimental hyperinflation. Now, during the hyperinflation, the
stage. Based upon the learning of pilot stage and its success, excessive increase in the prices of goods and services
Chinese Central Bank may decide to upscale the issuance of leads to decrease in the purchasing power of the currency.
Digital currencies in future.
• For example, in 2008, Zimbabwe experienced an
Experiments of CBDC in other Countries: Tunisia became unprecedented hyperinflation of 79,600,000,000%. This
one of the first countries in the world to issue a block chain meant that the daily inflation rate was whopping 98% and
based national currency called eDinar also known as prices of goods and services doubled almost every day. For
Digicash and BitDinar. Ecuador, which officially banned example, price of loaf of bread had increased to almost 55
Bitcoin in 2014, introduced SISTEMA de DineroElectronico, its million Zimbabwe dollars. Just imagine a scenario of a
own digital currency. Venezuela has also launched its own oil- person having 50 million Zimbabwe dollars and yet unable
based cryptocurrency to circumvent US sanctions that had to buy bread. This was a classical case of starving
adversely impacted the economy. millionaires. At the same time, if a person had to purchase
the goods, the person would be required to pay truck
Issuance of CBDC in India: The Committee to study issues
loads of money (hypothetically).
related to Virtual Currencies (2019) headed by Subhash
Chandra Garg has recommended that we need to have an • So, how do you solve this problem? Replacing the existing
low-value currency notes with new currency notes of
open mind regarding the introduction of an official digital
higher face value. In case of Zimbabwe, the Government
currency in India. It recommended that, if required, a
issued currency note with one hundred trillion dollars
Committee may be setup to examine and develop an
denomination.
appropriate model of digital currency in India. If such a digital
currency is issued, RBI should be the regulator. ISSUE OF NEW CURRENCY TOMAN IN IRAN
The Draft National Blockchain Strategy tabled by the National • The value of Iran’s currency has been steadily declining
Institute for Smart Governance has also called for India to since the Islamic Revolution in 1979. The decline in value of
develop a Central Bank Digital Rupee. currency has accelerated in recent years fuelled by U.S.
sanctions. The value of Iran’s currency has fallen by
roughly 60% since 2015. For example, the Iranian rial has

fallen from 1 dollar = 71 Rials (1970s) to 1 dollar = 42,000 For example, the British Government had issued CONSOL
Rials (presently). Apart from that, since the Islamic Bond in 1917 to finance its first world war. The Bonds carried
Revolution in 1979, Iran has experienced inflation on a an interest rate of 5%. In 2014 (almost a century later), the
regular basis. There have been only four financial years British Government repaid 10% of the total outstanding
with single-digit inflation. CONSOL Bond debt.
• In response, Iran has long been contemplating to WHAT ARE THE BENEFITS AND RISKS FOR INVESTORS?
redenominate the currency since number of years and Benefits:
finally now, it has decided to introduce new currency
• Investors get annual interest payments through
Toman. The value of Toman would be equal to 10,000
investment in CONSOL Bonds
Rials.
• Risk-Free Investment (Issued and guaranteed by the
Governments)
CONSOL BONDS • Enables the Citizens to contribute financially to the cause

of a country. This would give them a sense of participation
#Finance and promote unity within the country.
Risks: One major risk is that these bonds are not
redeemable. The repayment of these bonds is at the
IN NEWS discretion of the Government.
Recently, the Union Finance Minister has announced Rs 1.70 Lakh Examples of CONSOL Bonds issued in past: The first
Crore relief package under Pradhan MantriGaribKalyanYojana CONSOL Bond was issued by the British Government in 1751
for the poor to help them fight the battle against Corona Virus. and carried an interest rate of 3%. Subsequently, between the
However, the fiscal stimulus provided by the Government is years 1914 and 1917, the Britain Government issued CONSOL
hardly around 1% of India's GDP which is insufficient. But the Bonds to finance the First World War.
question which arises here is how do we raise extra financial Similarly, the US Government issued CONSOL bonds in 1870s
resources without affecting the macro-economic stability of to raise finances.
India? This is so because, on one hand, the revenue receipts of
WAY FORWARD
the Government is set to decline due to COVID-19. On the other
hand, the Fiscal deficit of the Centre is already much higher. • Looking at the advantages associated with the CONSOL
Hence, financing the COVID-19 pandemic would be extremely bonds, the Indian Government need to deliberate on the
tricky question for the Government. issue of such bonds to finance the fiscal stimulus package
for COVID-19. Instead of donating money to PM-CARES
In this regard, some of the economists have highlighted that, we
fund, the Indian citizens can park their money in the
need to look at war-time methods of raising finances. One such
CONSOL Bonds. The proceeds of the bonds can then be
innovative method of financing is CONSOL Bonds.
used for everything ranging from Personal Protective
UNDERSTANDING CONSOL BONDS Equipment for doctors to a stimulus for small and
What are CONSOL Bonds? The CONSOL Bonds are the medium-sized enterprises.
perpetual interest-bearing bonds which are issued by the • Further, since the Indian Economy is facing slowdown,
Governments to raise finances during war-like situations. there are no attractive investment options for Indian
Being perpetual bonds, these bonds do not have maturity investors except Gold. Hence, the CONSOL Bonds can act
period. The investor is paid only interest on such bonds. as attractive risk-free investment option for the retail
When will the Bonds be redeemed? Since the Bonds do not investors within India. The government can consider a
have maturity period, the Government is not under any phased redemption of these bonds after the economy is
obligation to pay back the money. Usually, the Government put back on a path of high GDP growth.
repays back its borrowings, when its financial position is
strong enough.

RBI SAVINGS BONDS

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

ABOUT SARFAESI ACT, 2002 principal amount etc). Hence, in order to solve these
problems, Insolvency and Bankruptcy (IBC) has been
The SARFAESI Act essentially empowers banks to directly
introduced.
auction residential or commercial properties that have been
pledged with them to recover loans from borrowers. As per PRESENT JUDGEMENT OF THE SUPREME COURT
the SARFAESI Act, if a borrower defaults on a loan, the Banks Initially, the Multi-state Co-operative banks were not covered
can give a notice period of 60 days to the borrower to repay under the definition of banks for which the SARFAESI Act was
the loans. If the borrower fails to repay within 60 days, the applicable. In 2003, a notification was issued (without
Banks can take the following actions: amending the law) to bring co-operative banks within ambit
1. Take possession of the pledged assets and then lease or of SARFAESI. Later, in 2013, the government amended the Act
sell it off to recover the loan amount. to include multi-state co-operative banks formally under the
2. Take over the management of the business of the definition of banks.
borrower. This was challenged by the petitioners arguing that the
3. Appoint a person to manage the assets. Parliament lacks the legislative competence to regulate
financial assets related to the non-banking activity of a co-
Note:
operative society. They argued that the Banking business
1. If the total money recovered through the sale of pledged carried out on by the cooperative societies are merely an
assets is lower than the loan amount, then the Bank can incidental/ ancillary activity and hence doctrine of pith and
approach the Debt Recovery Tribunals. substance should be applied to hold that the regulation of
2. One of the biggest drawbacks of SARFASEI Act is that it is such activities is outside the ambit of subject matter on which
not applicable to unsecured loans. Further, it does enable Parliament can legislate. The SC has now ruled that the
the Banks to carry out restructuring of loans (reducing SARFAESI act shall be applicable to the multi-state
interest rate, extending the duration of loan, reducing the Cooperative Banks as well.
GOVERNMENT POLICIES/
INTERVENTIONS
APMC REFORMS- A
sector investment etc. which are as important as APMC reforms
itself.
CRITIQUE AGRICULTURAL MARKETING REFORMS SO FAR

In order to bring about agriculture marketing reforms, the
#Govt Policies Central Government has come out with Model Agriculture
produce and livestock marketing Act, 2017. It has been
persuading the state government to adopt the features of
IN NEWS this model legislation. Accordingly, around 17 State
The Government must realize that reforming APMCs is only a governments having amended the APMC Act to make it more
small aspect of agriculture marketing and hence focusing on only liberal.
this aspect alone would not lead to benefits. For example, Kerala does not have an APMC Act and Bihar
There are other aspects of agricultural marketing such as density repealed it in 2006. Other states such as Karnataka,
of agriculture markets, strong and efficient procurement system, Maharashtra etc. deregulated fruits and vegetables trade,
world- class infrastructure of APMCs, enhancing the private allowed private markets, introduced a unified trading licence
and have introduced a single-point levy of market fee.

Many States have also introduced direct marketing of farm

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

realize that no amount of marketing reforms will lead to and has nearly tripled from Rs. 40,000 crores in 2007- 08 to
higher price realisation for farmers if the underlying Rs. 1.2 lakh crores crore in 2018-19.
macroeconomic conditions are unfavourable to agriculture
and farmers.Hence, going forward, the reforms in the
agriculture marketing should be accompanied by fiscal
measures to boost the demand within the economy.
BOOSTING R&D
ECOSYSTEM IN INDIA
#Govt Policies
IN NEWS
The National Science and Technology Management Information
(NSTMIS) has recently published the R&D Statistics and Indicators
2019-20. The report captures the R&D landscape of the country
through various Input-Output S&T Indicators such as R&D
investments, number of S&T personnel, number of patents filed,
scientific papers published etc.
MAJOR HIGHLIGHTS OF THE REPORT India’s per capita R&D expenditure has increased to PPP $
47.2 in 2017-18 from PPP $ 29.2 in 2007-08.
Increase in GERD: The Gross expenditure on R&D (GERD) in
India’s GERD as percentage of GDP remained at 0.7% during
the country has been consistently increasing over the years
the years 2017-18 and 2018-19 respectively.

Number of researchers: The number of researchers per • Encourage Investigator-led Research: Provide necessary
million population in India has increased to 255 in 2017 from funding and support to the researchers to take up
218 in 2015 and 110 in 2000. India occupies 3rd rank in terms research.
of number of Ph. D.’s awarded in Science and Engineering • Increase funding by Private Sector and State Governments.
(S&E) after USA (39,710 in 2016) and China (34,440 in 2015).
• Leverage scientific diaspora: There are today more than
Scientific Publications: According to National Science 100,000 people with PhDs, who were born in India but are
Foundation, India has been placed at 3rd position across the now living and working outside India. There is a need to
world in terms of publication of scientific journals. attract these scientists back to India.
Filing of Patents: According to WIPO, India’s Patent Office • Improve the culture of Research in Universities.
stands at the 7th position among the top 10 Patent Filing
Offices in the world.
CONCERNS WITH R&D ECOSYSTEM IN INDIA MSP FOR MINOR FOREST

The Economic Survey 2017-18 in its chapter "Transforming
Science and Technology" has highlighted number of PRODUCE (MFP)
problems with R&D ecosystem in India. Some of the concerns
are as highlighted below:
#Govt Policies
• Stagnation in R&D expenditure as percentage of GDP:
Even though the R&D expenditure has increased in terms
IN NEWS
of absolute value, the R&D Expenditure as % of GDP at
0.7% has remained stagnant in the last 2 decades. The Ministry of Tribal Affairs recently decided to increase the MSP
for the Minor Forest Produce of 49 items. The increase across
• Lower Expenditure on R&D: India’s spending on R&D is
various items of minor forest produce ranges from 16% to 66%.
well below that in major countries such as the US (2.8),
The increase is expected to provide an immediate and much
China (2.1), Israel (4.6) and South Korea (4.6).
needed momentum to procurement of Minor Tribal Produce in at
• Lower Share of Private Sector Investment: Unlike
least 20 States. Let us understand various aspects related to MSP
developed economies, the R&D expenditure in India is
for Minor Forest Produce.
mainly driven by public sector.
BACKGROUND
• Lower R&D investment in Health: The Public Sector
investment in R&D is mainly driven by Defence, Space and • Minor Forest produce include Tamarind seeds, Honey, Sal
Atomic Energy. The amount of investment in critical sector Seed, Mohua Seed, Neem Seeds etc. Around 100 million
such as Health (R&D investment by ICMR) is too low. forest dwellers depend on MFP for food, shelter,
medicines, income etc. The price of MFP is often
• Role of Universities in India: Universities in many
determined by traders rather than based upon demand
countries play a critical role in both creating the talent pool
and supply. Most of the MFP rich states are affected by
for research as well generating high quality research
Naxalism which makes it easier for the traders to exploit
output. However, the Universities in India have largely
the tribals.
focussed only on teaching.
• Accordingly, in order to ensure fair prices to the tribals on
RECOMMENDATIONS TO IMPROVE R&D ECOSYSTEM
the MFP, the Government introduced the MSP for the MFP
IN INDIA in 2013-14. This was done based upon the
• Improve Math and Cognitive Skills at the school level. recommendations of Sudha Pillai Committee and Haque
(Unless the foundation of Primary Education is strong, the Committee.
superstructure of R&D cannot be strengthened)
DETAILS ABOUT THE MSP FOR MFP

• Declaration of MSP: Declared by the Ministry of Tribal IN NEWS

Affairs. It is done based upon the recommendations of
The lockdown imposed due to COVID-19 has made it difficult for
Pricing Cell set up within TRIFED.
the farmers and traders to carry out physical trading of
• Coverage: Initially, the scheme included 10 MFPs in 9 PESA agricultural commodities. Hence, farmers and traders have now
States. Subsequently, it has been expanded to cover all the shifted to electronic trading through the E-NAM Portal. Post
states and 50 MFPs. lockdown, the number of agriculture Mandis connected to E-NAM
• Nodal Agency: TRIFED portal has increased by 65% to reach 965 throughout India.
• Procurement by: State Level designated agencies ABOUT E-NAM PORTAL
PRADHAN MANTRI VAN DHANYOJANA What is E-NAM? Pan-India electronic trading portal which
networks the existing APMC mandis to create a unified
• Retail marketing led value addition plan for Minor Forest
national market for agricultural commodities.
Produce (MFP), meant for forest-based tribes.
How is different from existing Mandis?eNAM is not a
• The tribals are organised into SHGs. These SHGs are in
parallel marketing structure but rather a device to create a
turn linked to district level Van dhankendras.
national network of physical mandis which can be accessed
• These centres cater to 10 Self Help Groups of and each online. It seeks to leverage the physical infrastructure of the
group consists of thirty tribal gatherers. They are trained mandis through an online trading portal, enabling buyers
and provided with working capital to add value to the situated even outside the Mandi/ State to participate in
MFPs. These SHGs can then market their products within trading at the local level.
and outside the States through a retail network.
Why do we need E-NAM? Agriculture marketing is
• Training and technical support is provided by TRIFED. administered by the States as per their agri-marketing
ABOUT TRIBAL COOPERATIVE MARKETING regulations, under which, the State is divided into several
DEVELOPMENT FEDERATION OF INDIA LIMITED market areas, each of which is administered by a separate
Agricultural Produce Marketing Committee (APMC) which
(TRIFED)
imposes its own marketing regulation (including fees). This
• Multi-State Cooperative Society set up in 1987 under the
fragmentation of markets hinders free flow of agri
Multi State Cooperative Societies Act, 1984 (now Multi-
commodities from one market area to another and multiple
State Cooperative Societies Act, 2002).
handling of agri-produce and multiple levels of mandi
• Functions both as a service provider and market developer charges ends up escalating the prices for the consumers
for tribal products. It markets tribal products through the without commensurate benefit to the farmer.
network of its retail outlets ‘TRIBES INDIA’ in the country.
NAM addresses these challenges by creating a unified market
• As a capacity builder, it also imparts training to ST Artisans through online trading platform, both at State and National
and Minor Forest Produce (MFP) gatherers. level.
• The Ministry of Tribal Affairs (MoTA) organises National Conditions for joining E-NAM: States interested to integrate
Tribal Festival titled “AadiMahotsav” in collaboration with their mandis with eNAM are required to carry out following
TRIFED. three reforms in their APMC Act.
a) Single trading license (Unified) to be valid across the state;
E-NAM PORTAL- RECENT

b) Single point levy of market fee across the state; and
c) Provision for e-auction/ e-trading as a mode of price
DEVELOPMENTS discovery
Who operates the E-NAM platform? The Ministry of

#Govt Policies Agriculture & Farmers' Welfare, Govt. of India has appointed
Small Farmers' Agribusiness Consortium (SFAC) as the Lead
Implementing Agency of eNAM.

Recent Developments: e-NAM has also been integrated with

the Unified Market Platform (UMP) of Karnataka’s Rashtriya e-
Market Services (ReMS), an e-trading platform promoted by
the Karnataka State Agriculture Marketing Board. This is for
the first time in India that two different e-trading platforms
for Agri commodities of this scale has been made
interoperable. This will help farmers of Karnataka to sell their
produce to large number of traders registered with e-NAM
and even farmers from e-NAM mandis in other States will be
able to sell their produce to Karnataka traders who are
enrolled with ReMS platform of Karnataka. This will also NEED TO INCREASE THE TAXES ON FUEL
promote inter-State trade between the States on-boarded on The Centre has recently decided to increase the excise duty
e-NAM platform & Karnataka. on Petrol and diesel for a second time in last 2 months on
account of declining crude oil prices. Some of the benefits of
this increase can be seen as under:
DILEMMA OVER 1. Helps Government to raise more revenue particularly
DECLINING OIL PRICES when there is decline in the tax collections due to COVID-
19.
#Govt Policies 2. Helps Government to raise finances to deal with
emergency expenses during COVID-19.
3. Helps the Government to increase its savings which can

IN NEWS
then be used later when the crude oil prices increase.
The International Crude oil prices has reduced by almost 45% in
the year 2020 as compared to the previous year 2019. India 4. Act as De-Facto Carbon Tax and hence incentivizes giving
imports almost 80% of its crude oil requirements. Hence, decline up fossil fuel and adopt more environment friendly and
in the crude oil prices would help us reduce our import bill, green fuels.
reduce CAD and keep inflation under control.
NEED TO PASS ON THE BENEFIT
But the question here is " What should be the response of the
Government to decline in International Crude oil Prices?". Should • Decline in the demand-->Slowdown in the economy-->
the Government raise taxes on fuels to supplement its declining Reduction in the crude oil prices--> Boost consumption
revenue collection amid COVID-19 or Should it pass on this expenditure and revive economy.
benefit to the Indian Consumers?.
• Increase in taxes on fuels--> Higher burden on the
GOVERNMENT'S RESPONSE SO FAR consumers--> Centre's tax alone accounts for almost 45%
The lockdown imposed due to COVID-19 and the subsequent of the cost of 1 litre of petrol.
slowdown has led to decline in the tax collection. Hence, in
• Increase in taxes on fuels--> Lead to decrease in demand
response, the Government has been increasing the excise
in the economy--> Affect Industrial Activity and Investment
duty rates on the petrol and diesel to garner more revenue.
As can be seen in the picture below, in spite of decline in rates.
crude oil prices, the petrol prices have continued to be on • Curbs on Inter-state travel, decline in the household
higher side due to increase in the taxes. budgets, decline in automobile sales, loss of jobs etc.
would lead to decline in demand for petrol and diesel.
Hence, increase in taxes of fuels may not lead to increase
in Government's tax collection.

FSDC MEETING
IN NEWS
The lockdown imposed due to COVID-19 has made it difficult for
#Govt Policies the farmers to sell their produce and buy various inputs such as
seeds, fertilizer etc. Accordingly, recently, KISAN Sabha App was
launched to streamline the supply chain management and
benefit the farmers.
IN NEWS
ABOUT KISAN SABHA APP
The Union Finance Minister has called for the meeting of the
Financial Stability and Development Council (FSDC) to discuss the • Connects the farmers, transporters, Service providers (like
impact of COVID-19 on the financial sector and the economy. pesticides/ fertilizer/ dealers, cold store and warehouse
owner), mandi dealers, customers (like big retail outlets,
FINANCIAL STABILITY DEVELOPMENT COUNCIL
online stores, institutional buyers) and other related
(FSDC) entities.
The Financial Stability and Development Council (FSDC) • Acts as a single stop for every entity related to agriculture-
was set up as the apex level forum in 2010 with a view to a farmer who needs better price for the crops or mandi
strengthening and institutionalizing the mechanism for dealer who wants to connect to more farmers or truckers
maintaining financial stability, enhancing inter-regulatory who invariably go empty from the mandis.
coordination and promoting financial sector development.
• Developed by CSIR-Central Road Research Institute (CSIR-
Composition: The Chairperson of the Council is the Finance CRRI).
Minister of India. Members include Minister of State for
Finance, the heads of the financial sector regulators (RBI,
CHAMPIONS PORTAL FOR

SEBI, PFRDA & IRDA) and Secretaries of the relevant
ministries/ departments of the Government of India.
Role: The Council monitors macro prudential supervision of
the economy, including functioning of large financial
MSMEs
conglomerates, and addresses inter-regulatory coordination #Govt Policies #Technology
and financial sector development issues. It also focuses on
financial literacy and financial inclusion.
The FSDC is supported by a Sub-Committee (FSDC-SC),
IN NEWS
chaired by the Governor RBI. Excluding the Chair of the FSDC
(Union Finance Minister), all members of the FSDC are also Recently, the Union Ministry of MSME has launched CHAMPIONS
the members of the Sub-Committee. Additionally, all four portal aimed at assisting Indian MSMEs march into big league as
Deputy Governors (DG) of RBI are also the members of the National and Global CHAMPIONS.
Sub-Committee. DETAILS
Here, the CHAMPIONS stands for Creation and Harmonious
KISAN SABHA APP

Application of Modern Processes for Increasing the Output
and National Strength. The portal is basically for making the
smaller units big by solving their grievances, encouraging,
#Govt Policies #Technology supporting, helping and handholding. It is a real one-stop-
shop solution of MSME Ministry.

EXTERNAL SECTOR
GOVERNMENT BORROW $ Authorised
Capital
The Initial capital of
$ 50 bn has been
500 MILLION FROM AIIB contributed

BRICS
by
countries
#International Institutions equally.
Voting Same contribution Voting depends

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

Bank Infrastructure
INDIA’S SOVEREIGN
Investment bank
CREDIT RATING
Establishment BRICS Countries China-led DOWNGRADED
through Fortaleza multilateral Bank in
declaration in 2014 2016 # External Sector
Number of BRICS member Around 80

Members countries members IN NEWS
Approved: The Global Credit ratings agency Moody’s has recently

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

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

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

8.9 74.7 5.5
06 stable
BBB-
Jan-07 9.0 71.4 4.1
20
stable
BBB-
Feb-09 5.5 72.2 8.6
negative
Mar- BBB-
6.7 70.6 9.5 # External Sector
10 stable
Apr-12 6.2 67.4 7.8
BBB-
Jun-12 6.2 67.4 7.8
negative IN NEWS
BBB-
Jun-13 5.7 67.1 6.7 Recently, the Department for Promotion of Industry and Internal
stable
BBB- Trade (DPIIT) has come out with FDI Statistics for the financial
Sep-14 6.4 66.6 6.7
stable year 2019-20.
Apr-15 Baa3- 7.6 68.6 6.9

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

Mauritius, Singapore
• Increase in FDI Inflows: In the year 2019-20, India
attracted total FDI inflows of $ 49.97 bn, which was 13% • Sectors attracting highest FDI (Both in terms of
higher as compared to FDI inflows in 2018-19 ($ 44.36 bn). Cumulative value and in FY 2019-20): Services, Computer
Software & Hardware, Telecommunications.
• Top Sources for FDI (2019-20): Singapore, Mauritius,
Netherlands, USA, Japan
Taxation
GOVERNMENT INCREASES
The return to the investors is the difference between the
maturity value (Rs 100) and the issue price ( Rs 98).
BORROWING TARGET • Dated Securities: Used for raising long term loans. In
India, the Central Government issues both, treasury bills
# Public Finance and bonds or dated securities while the State
Governments issue only bonds or dated securities, which
are called the State Development Loans (SDLs). G-Secs
IN NEWS carry practically no risk of default and, hence, are called
The Union Budget 2020-21 had targeted the Fiscal Deficit of the risk-free gilt-edged instruments.
Government at 3.5% of India’s GDP in the Financial year 2020-21. • Ways and means advances (WMA): Borrowings from the
In terms of absolute value, it was around Rs 7.8 lakh crores. The RBI to meet immediate cash requirements which can arise
Outbreak of COVID-19 has led to large scale decline in the due to temporary mismatches in receipts and expenditure.
revenue receipts of the Government. At the same, there is a need
• Sovereign Gold Bonds: Government securities
to announce higher financial package to provide fiscal stimulus
denominated in terms of Gold.
measures.
• Bank Recapitalization Bonds: Bonds issued by the
Taking into account, these two factors, the Government has
Government to raise loans for undertaking recapitalization
decided to increase the borrowing limit for the financial year
of Public Sector Banks (PSBs)
2020-21 by almost 50% to Rs 12 lakh crores. According to some
• Securities issued against NSSF: The money collected
of the estimates, the Fiscal Deficit could rise to 5.6% of India’s
under various small savings schemes such as Post Office
GDP.
Deposits, National Savings Certificate, PPF etc. is deposited
WHAT ARE THE MAJOR SOURCES OF BORROWING under National Small Savings Fund (NSSF) which is
FOR THE CENTRE? maintained as part of Public Account of India. Certain
• Treasury Bills: Instruments to raise short-term loans. percentage of funds under the NSSF is used to investment
They are issued in three tenors of 91 days, 182 days and in special G-Secs and hence considered to be
364 days. Treasury bills are zero coupon securities and pay Government's borrowings.
no interest. Instead, they are issued at a discount and
redeemed at the face value at maturity. For example, a 91
day Treasury bill of Rs 100/- (face value) may be issued at
say Rs 98, that is, at a discount of say, Rs 2 and would be
redeemed at the face value of Rs 100/-.

Important Note: Presently, major part of Government’s

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

ENERGY TRANSITION
The Energy transition refers to shift in the energy system
from fossil-based fuels towards renewable energy. The ETI
INDEX (ETI)
measures the extent of energy transition taking place across
115 countries, including India.
# International Report HIGHLIGHTS OF REPORT

• Of the 115 countries monitored, 94 countries have
improved their composite ETI score over the past six years.
IN NEWS These nations represent more than 70% of the global
India has improved its positions by 2 places to rank 74th on a population and 70% of global CO2 emissions from fuel
Global ‘Energy Transition Index (ETI)’ 2020 published by the combustion.
World Economic Forum (WEF). • Sweden leads the rankings table for the third consecutive
ABOUT THE ‘ENERGY TRANSITION INDEX (ETI)’ year, followed by Switzerland and Finland. France and the
United Kingdom are the only G20 countries in the top 10.
practice questions
MCQs
Q1. With reference to Voluntary Retention Route (VRR), 2. Investment in Government Securities (G-Secs) is not
consider the following statements: allowed under this route.
1. This is a new channel which enables the FPIs to invest Which of the statements given above is/are correct?
in both equities as well as debt market in India. (a) 1 only (b) 2 only

(c) Both 1 and 2 (d) Neither 1 nor 2 (c) 2 and 3 only (d) 1, 2 and 3
Q2. Consider the following statements: Q4. With reference to Consolidated Sinking Fund (CSF),
1. The existing legal framework in India does not permit consider the following statements:
the direct listing of equity shares of Indian companies 1. It is a dedicated fund set up by the State Governments
on foreign stock exchanges. to meet their committed expenses such as salaries
2. The Indian Companies can raise capital from the and pensions, subsidies etc.
equity markets based in other countries through the 2. This fund is placed at the disposal of RBI.
issuance of American Depository Receipts/ Global Which of the statements given above is/are correct?
Depository receipts. (a) 1 only (b) 2 only
Which of the statements given above is/are correct? (c) Both 1 and 2 (d) Neither 1 nor 2
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2 Q5. With reference to Minimum Support Price (MSP)
for Minor Forest produce (MFP), consider the
Q3. With reference to Standing Deposit Facility (SDF), following statements:
consider the following statements: 1. The MSP for the Minor Forest produce (MFP) is
1. This tool enables the RBI to absorb excess liquidity declared by the Ministry of Tribal Affairs.
from the economy. 2. It is implemented only in PESA States.
2. This tool does not require the G-Secs to be used as 3. The TRIFED is the nodal agency under this scheme.
collateral. Which of the statements given above is/are correct?
3. The SDF rate would always be higher than Repo Rate. (a) 1 only (b) 1 and 2 only
Which of the statements given above is/are correct? (c) 2 and 3 only (d) 1 and 3
(a) 1 only (b) 1 and 2 only
Q1. Do you think the Government has adopted pragmatic and prudent approach in its declaration of Economic stimulus
package to deal with COVID-19? Give arguments in support of your answer.
Q2. 2. The APMC reforms cannot be considered as the magic bullet to address various problems in the agricultural marketing.
In this regard, illustrate with the help of examples as to why the state Governments have to go beyond the APMC reforms
for the benefit the farmers.
Answers to above MCQs: 1 (d), 2 (c), 3 (b), 4(b), 5(d)

SOCIETY AND SOCIAL JUSTICE
# GS Paper I & GS Paper II (Main)
TOPICS OF IMPORTANCE
SELF HELP GROUPS

• Self-Help Group (SHG) is a small voluntary association of
poor people, preferably from the same socio-economic
# Empowerment background.
• They come together for the purpose of solving their

common problems through self-help and mutual help.
IN NEWS The SHG promotes small savings among its members.
COVID-19 has thrown many challenges to the members of • The savings are kept with a bank. This common fund is in
SHGs with regard to conducting physical meeting, mobilising the name of the SHG. SHG is a group formed by the
savings (physical currency notes) of the group, rotating the community, which has specific number of members like 15
money for internal lending among the members, depositing or 20. Usually, the number of members in one SHG does
the physical cash towards repayment of loans, and not exceed twenty.
maintaining hard copy of records, digital channels, however, • The SHG shouldn’t have more than one member from a
made their life simple. particular family. This allows the inclusion of many
Specifically, the SHG members can overcome the digital divide families.
by operating their cash transactions through electronic • In such a group, the poorest would come together for
banking; they can meet their peers through social/digital emergency, disaster, social reasons, economic support to
media without meeting in person; they can maintain their each other have ease of conversation, social interaction
records in e-Shakti (a digital initiative of NABARD for and economic interactions.
maintaining SHGs’ books of accounts, thereby improving their • NABARD introduced SHG-Bank Linkage Programme in
credit score). 1992-1993 as a microfinance innovation.
On the note, let us understand the meaning and purpose of • SHGs have been an effective mechanism for poor women
SHGs. in the rural areas who usually are unbanked.
WHAT ARE SELF-HELP GROUPS? FUNCTIONS OF THE SHGs
• Initiate and maintain savings within the group: All
members must regularly save at least a small amount.
These savings allow them to get future credits for their
group.
• Lending loans to the members: The savings made by the

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

Society and Social Justice
• Solving common problems: SHGs mostly consist of survival. In case these agencies withdraw their support, the
individuals who face similar problems. The grouping SHGs are vulnerable to downfall.
should essentially help the individual overcome these • Lacks qualified facilitator: The facilitators do not have
problems through discussions and interactions within the professional training with regards to organising SHGs.
group and overcoming the problems and finding a
• Lacks up-gradation of skills: Most SHGs are not making
common and united solution to the problems.
use of new technological innovations and skills. This is
• Bank Loans: SHGs must work on getting a collective because there is limited awareness with regards to new
guarantee system so that they can avail loans from official technologies and they do not have the necessary skills to
sources. make use of the same. Furthermore, there is a lack of
ADVANTAGES OF SHGS effective mechanisms that promote skill developments in
rural areas.
• Combating social evils: The SHGs play a crucial role in
overcoming social evils like alcoholism, drug addiction, • SHGs are run by non-professionals: There is no
gambling, etc. professionalism within the SHGs. This does not promote
the expansion and improvement of the SHGs. This does
• Women empowerment: Women SHGs make its members
not allow for the increase of wages of the members and
independent from social constraints and allow them to
improvement in their living conditions. This also leads to
make independent decisions. They can even actively
error in accounting and mismanagement of the funds.
participate in the gram sabha.
• Lacks security: SHGs are mostly not registered. They are
• Active participation in democracy: SHGs can actively
run based on the trust between the members. The savings
participate in the aspects of local governance. This would
made by the SHG members may not be safe, which brings
mean the inclusion of weaker and marginalised sections of
in the mistrust between the members.
the society in the local governance.
• Increase employment opportunities in rural India: It

MEASURES TAKEN BY THE GOVERNMENT
allows for micro-level entrepreneurship within the rural The government plays a crucial role as a facilitator for the
society and reduces too much dependence on agriculture. SHGs. There various government schemes dedicated to the
• Easier access to government schemes: The government promotion of the SHGs. Some of them are as follows:
schemes are mostly meant for the marginalised sections of • Swarn Jayanti Gram Swarojgaar Yojana (SGSY): It seeks
the society. The inclusion and identification of these to form SHGs and develop the skills of its members to
people are highly difficult. If they are grouped together, it promote self-employment in rural areas. Launched in
is easier for the government to identify those who are in 1999.
need of assistance quickly and efficiently. It also prevents • This programme evolved to be a national movement in
the exploitation and corruption of the government at the 2011 to become the National Rural Livelihood Mission.
ground level. National Rural Livelihood Mission (NRLM) is the largest
• Improves the standard of living: The collective team poverty alleviation program in the world. It was launched
effort by the SHGs for financial inclusion allows for the by the Ministry of Rural Development in 2011.
improvement in the living standard, family planning, • It was succeeded by Deendayal Antyodaya Yojana (DAY)
healthcare, of the vulnerable sections of the society. in 2015.
• Financial discipline: The members of the SHGs are • SHG-Bank Linkage Programme: It is a landmark model
encouraged to open savings accounts in banks. This initiated by National Bank for Agriculture and Rural
assures improved living conditions, increased spending on Development (NABARD) in 1992 to deliver affordable
education, health, etc. doorstep banking services as part of financial inclusion
LIMITATIONS OF SHGs drive in India.
• Too much dependence on government and NGOs: Many • Today, the SHG-BLP is regarded as the largest micro-
SHGs are dependent on the promoter agencies for their finance programme in the world — with a total

membership of 100.14 lakh groups (covering nearly 12 Preamble. It is the mirror to the spirit of the constitution. The
crore households) across India and having extended arrangement of the words in the preamble is also very
collateral-free loans of ₹87,098 crores to 50.77 lakh SHGs significant. Indian society is a multi–religious society, it is
as on March 31, 2019. It is interesting to note that more having different caste, religion along with several religion
than 90 per cent of the SHG members are women. diversification. So, all these are the divisive factor in some
way or the other and if not handled carefully then can cause
WAY FORWARD
a threat to the unity and integrity of the nation.
• SHGs are seen as drivers of rural development. However,
The constituent assembly has visualized the peculiar
the successful SHGs are only rarely seen as the living
situations of the country and a very deliberate sequence has
conditions in the rural areas remains underdeveloped. The
been followed while arranging the preamble. It aims to
government must take a pro-active role in the promotion
secure to citizens justice, equality and liberty. The basic
of the SHGs at the grass-root level.
aim is to promote fraternity while assuring unity and
• Constant monitoring of the SHGs is the need of the hour. A
integrity of the nation along with individual dignity. So, it is a
separate government body to monitor the functioning and cause and effect relationship. .Justice is also a subjective and
the progress of the SHGs can make it more successful.
circumstantial concept. It implies the balancing of rights.
• New financial mechanisms based on the individual needs These concepts of justice, liberty and equality revolves
of the particular area is also essential for the SHGs to around fraternity which is the prime goal of the country has
achieve their aims and objectives.Therefore, the private to achieve through these constitutional provisions.
banks and National Banks for Agriculture and Rural
Regarding the concept of justice social justice is given
Development (NABARD) in cooperation with the local prime importance because without social justice economic
governing bodies must ensure that the financial inclusion
justice cannot be achieved and without economic political
is provided at the ground level – based on the diverse would be futile. So all these terms given in the Preamble are
needs of rural India.
having their own significance and all efforts have been made
to ensure that the real spirit of the constitution shall be
SECULARISM IN INDIA
expressed in the Preamble. It contains the essential principles
and goals of the Constitution.
#Ethos Fraternity is a very significant tool to combat the divisive
forces. Religious harmony is a must to promote fraternity
particularly in Indian context. So, it’s a constitutional mandate
A PIECE OF THOUGHT upon the state to combat the factors which curtails religious
fraternity. It is also incumbent upon the state to take positive
Secularism demonstrates modernity and remains the best
as well as negative actions to promote fraternity. Article
option for any progressive nation. Is it not a fact that it made
25(1) guarantees to every person the freedom of conscience
us a global power and Pakistan a failed state?
and the right to profess, practise and propagate religion.
Secularism simply refers to the equal status and treatment of
So, it is the manifestation of state neutrality in the matter of
all religions. Indian perspective is totally different from
religion as it implies equal conservations of all religion and
western perspective. Western perspective alienates state from
equal religious right to all the citizens. Along with that it
religion while Indian perspective constructively engages State
prohibits discrimination on the ground of the religion race,
in religious matters.
caste, sex or place of the birth. Article 29(2) prohibits
THE CONCEPT OF SECULARISM: AN INDIAN discrimination in matters of admission into educational
PERSPECTIVE institutions on grounds only of religion, race, caste, language
The Preamble of Indian Constitution aims to constitute India or any of them. This provision guarantees the rights of
a Sovereign, Socialist, Democratic Republic. The terms individual irrespective of the community to which he belongs.
Socialist and Secular were added to it by the 42nd S.R. Bommai vs. UOI:It was held that Religious tolerance and
amendment. The whole constitution is summarized in the equal treatment of all religious groups and protection of their

life and property and the places of their worship are an caste marriage shall be promoted, protected and conserved
essential part of secularism enshrined in our constitution. by the state to promote greater secular values. This is also a
While the citizen of this country are free to profess, practice part of secularization process. The concept of secularism is
and propagate such religion, faith or belief as they choose, so not merely a positive attitude of religion tolerance. It is also a
for as the state is concerned i.e. from the point of view of the positive concept of equal treatment of all religions.
state, the religion, faith or belief of a person is immaterial to As Article 25, 15(3), 29 reflect the state neutrality in the
it, all are equal and all are entitled to be treated equally. matters of religion. These are the restrictive dimensions of
Further, the Court while emphasizing upon the significance of secularism.Now the question for consideration is that
Secularism declared it as the basic structure of the whether this state neutrality or such restricted role is
Constitution. sufficient to fulfill the constitutional goal which is incumbent
The concept of secularism was not expressly incorporated in upon the state.
the constitution at the stage of its making. However, its To answer this question the nature of Indian secularism has
operation was visible in the fundamental rights and directive to be keenly observed. The western secularism implies the
principles. The concept of secularism, though not expressly state neutrality in the matters of religion because they are
stated in the constitution, was, nevertheless deeply having a uni-religious society. So state neutrality is sufficient
embedded in the constitutional philosophy. The concepts of and no further action is required on the part of the state to
secularism are not static; it is elastic in connotation. In this create religious harmony.
area, flexibility is most desirable as there cannot be any fixed
In Indian context the state as a neutral entity in a matter of
views in this concept for all time to come. The courts decide
religion was never an issue because all elements enshrined in
from time to time the contours of the concepts of secularism
the constitution are interwoven and we have adopted our
and enforce it in practice.
society with all its peculiar features thereby automatic
M Ismail faruqui vs. UOI: It was held that it is clear from the adoption of the multi religiosity also. It’s a constitutional
constitutional scheme that it guarantees equality in the mandate upon the state to bring a harmonization between
matters of religion to all individuals and groups irrespective various religions. So, Indian secularism has to be seen in its
of their faith emphasizing that there is no religion of the state own light as compared to the western secularism. In Indian
itself. The preamble of the constitution read in particular with context mere state neutrality in the matters of religion is not
articles 25 to 28 emphasises this aspect and indicates that it sufficient as articles 25 , 15(1) ,29(2) manifest non declaration
is in this manner this concept of secularism is embodied in of any state religion or talk about a mere guarantee of
the constitutional scheme. fundamental right to religion to the citizens. These are the
The concept of Secularism is one facet of the Right to Equality restrictive or narrow aspects of secularism in Indian context.
Woven as the Central golden thread in the fabric depicting Indian secularism requires something more than the above
the pattern of the scheme in our Constitution. Any steps mentioned things. It’s a way of life in India as it is deep rooted
inconsistent with these mandates are unconstitutional. The in Indian society. So to promote the constitutional goal of
Court further held that any state Government which pursues fraternity, for promotion and assurance of individual dignity
unsecular policies or unsecular course of action acts contrary and unity and integrity the proactive role of the state is
to the Constitutional mandate and renders itself amenable to required for religious harmony and tolerance.
action under article 356. To make assurance doubly sure, the 42
nd
amendment of the
Aruna Roy vs. UOI: The court held that concept of secularism constitution inserts the term “secular” in the preamble of
is not endangered if the basic tenets of all religions all over the constitution.
the world are studied and learned. Value based education will
WAY FORWARD
help the nation to fight against fanaticism, ill-will, violence,
• Since secularism has been declared as a part of the basic
dishonesty and corruption. These values can be inculcated if
structure of the Constitution, governments must be made
the basic tenets of all religions are learned. The Hon’ble
accountable for implementing it.
Supreme court has held in Lata Singh vs. State of U.P ,” that
caste barriers in societal interactions are anti – secular. Inter

• Define the word “minority”. The concept of secularism is launched in September 2018 providing health insurance
based on recognition and protection of minorities. The two coverage of a maximum sum insured amount of Rs.5 lakh.
cannot be separated. The government health insurance scheme covers most of the
• Setting up of a commission on secularism for ensuring medical treatment costs, medicines, diagnostics and pre-
adherence to the constitutional mandate on secularism. hospitalisation expenses. Additionally, the scheme offers
• Separation of religion from politics. It is of such urgency cashless hospitalisation services through the Ayushman
that no time should be wasted in bringing this about. Bharat Yojana e-card which you can use to get healthcare
services at any of the empanelled hospitals across the
• It is the duty of the secular and democratic forces to rally
country. Beneficiaries of the scheme can avail hospitalisation
behind those political forces that really profess and
for necessary treatment by showing their PMJAY e-card.
practice secularism.
WHAT IS COVERED UNDER THE SCHEME?
• In a secular state, religion is expected to be a purely
personal and private matter and is not supposed to have With the intention to provide accessible healthcare to the
anything to do with the governance of the country. poor and needy, the Ayushman Bharat Yojana Scheme offers
coverage of up to Rs.5 lakh per family per year for secondary
• Electoral reforms are imperative if secularism is to be
and tertiary hospitalisation care.
strengthened.
The health insurance under AB-PMJAY includes
hospitalization costs of beneficiaries and includes the below
AYUSHMAN BHARAT components:
• Medical examination, consultation and treatment.

#Health # Empowerment • Pre-hospitalisation.
• Non-intensive and intensive care services.

IN NEWS • Medicine and medical consumables.
According to World Health Organization (WHO), the COVID-19 • Diagnostic and laboratory services.
pandemic, which has presented challenges for several nations, • Accommodation.
could be an opportunity for India to speed up the health
• Medical implant services, wherever possible.
insurance scheme Ayushman Bharat, especially with a focus on
primary healthcare • Food services.
The Pradhan Mantri Jan Arogya Yojana (PMJAY) popularly • Complication arising during treatment.
known as Ayushman Bharat Yojana Scheme is the flagship • Post-hospitalisation expenses for up to 15 days.
scheme by the Government of India. It is essentially a health
• COVID-19 (Coronavirus) treatment.
insurance scheme to cater to the poor, lower section of the
society and the vulnerable population. The scheme offers WHAT IS NOT COVERED UNDER THE SCHEME?
financial protection in case of hospitalization due to medical Similar to other types of health insurance policies, the
emergencies. On this note, let us understand about the scheme Ayushman Bharat Yojana Scheme has some exclusions.
in detail. Below components are not covered under the scheme:
WHAT IS AYUSHMAN BHARAT YOJANA SCHEME • Out-Patient Department (OPD) expenses.
(PMJAY)? • Drug rehabilitation.
Considered as one of the biggest healthcare schemes in the • Cosmetic surgeries.
world, Ayushman Bharat Yojana aims to cover more than 50
• Fertility treatments.
crore Indian citizens. It is designed especially for the
economically weaker sections of the country. The PMJAY was • Individual diagnostics.
• Organ transplant.

FEATURES OF THE SCHEME the PM Jan Arogya Yojana.In the rural areas, the PMJAY health
cover is available to:
• Coverage of Rs.5 lakh per family per annum for secondary
and tertiary care across public and private hospitals. 1. Those living in scheduled caste and scheduled tribe
households;
• Approximately 50 crore beneficiaries (over 10 crore poor
and vulnerable entitled families) are eligible for the 2. Families with no male member aged 16 to 59 years;
scheme. 3. Beggars and those surviving on alms;
• Cashless hospitalisation. 4. Families with no individuals aged between 16 and 59
• Covers up to 3 days of pre-hospitalisation expenses such years;
as medicines and diagnostics. 5. Families having at least one physically challenged member
• Covers up to 15 days of post-hospitalisation expenses and no able-bodied adult member;
which include medicines and diagnostics. 6. Landless households who make a living by working as
• No restriction on the family size, gender or age. casual manual labourers;
• Can avail services across the country at any of the 7. Primitive tribal communities;
empanelled public and private hospitals. 8. Legally released bonded labourers;
• All pre-existing conditions covered from day one. 9. Families living in one-room makeshift houses with no
• The scheme includes around 1400 medical procedures. proper walls or roof;
• Includes costs for diagnostic services, drugs, room charges, 10. Manual scavenger families
physician’s fees, surgeon charges, supplies, ICU and OT PMJAY Urban: According to the National Sample Survey
charges. Organisation (71st round), 82% of urban households do not
• Public hospitals are reimbursed at par with private have access to healthcare insurance or assurance. Further,
hospitals. 18% of Indians in urban areas have addressed healthcare
expenses by borrowing money in one form or the other.
ELIGIBILITY CRITERIA FOR RURAL AND URBAN
Pradhan Mantri Jan Arogya Yojana helps these households
POPULATION
avail healthcare services by providing funding of up to Rs. 5
The scheme has been launched to cover the bottom 40% of lakh per family, per year. PMJAY will benefit urban workers’
poor and economically weaker sections of the country. This families in the occupational category present as per the
was based on the deprivation and occupational criteria of the Socio-Economic Caste Census 2011. Further, any family
Socio-Economic Caste Census 2011 for rural and urban enrolled under the Rashtriya Swasthaya Bima Yojana will
areas. The eligibility is designed with pre-conditions so that benefit from the PM Jan Arogya Yojana as well.In the urban
only the underprivileged people of the society benefit from areas, those who can avail of the government-sponsored
the initiative. scheme consist mainly of:
PMJAY Rural: The 71st round of the National Sample Survey 1. Washerman / chowkidars;
Organisation reveals that a staggering 85.9% of rural
2. Rag pickers;
households do not have access to any healthcare insurance
3. Mechanics, electricians, repair workers;
or assurance. Additionally, 24% of rural families access
healthcare facilities by borrowing money. PMJAY’s aim is to 4. Domestic help;
help this sector avoid debt traps and avail services by 5. Sanitation workers, gardeners, sweepers;
providing yearly assistance of up to Rs. 5 lakh per family. The
6. Home-based artisans or handicraft workers, tailors;
scheme will come to the aid of economically disadvantaged
families as per data in the Socio-Economic Caste Census 7. Cobblers, hawkers and others providing services by
2011. Here too, households enrolled under the Rashtriya working on streets or pavements;
Swasthya Bima Yojana (RSBY) will come under the ambit of 8. Plumbers, masons, construction workers, porters, welders,
painters and security guards;

9. Transport workers like drivers, conductors, helpers, cart or 3. Those who have Kisan cards with a credit limit of Rs.50000;
rickshaw pullers; 4. Those employed by the government;
10. Assistants, peons in small establishments, delivery boys, 5. Those who work in government-managed non-agricultural
shopkeepers and waiters. enterprises;
People not entitled for the Health Cover under Pradhan 6. Those earning a monthly income above Rs.10000;
Mantri Jan Arogya Yojana:
7. Those owning refrigerators and landlines;
1. Those who own a two, three or four-wheeler or a
8. Those with decent, solidly built houses;
motorised fishing boat;
9. Those owning 5 acres or more of agricultural land.
2. Those who own mechanised farming equipment;
practice questions
Q1. Self Help Groups (SHGs) are important non-state actors in socio-economic empowerment of women alongwith increasing
women stake in improving grass root governance and implementation. Critically analyse.
Q2. Secularism demonstrates modernity and remains the best option for any progressive nation. Critically comment.
Q3. A highly efficient primary health care system is must for the success of PMJAY and also for ensuring universal health care
for the poor and deprived. Comment.

SCIENCE & TECHNOLOGY
LUHMAN 16
16A which has less brightness variation due to a band of
clouds.
#Space • Understanding the cloud system over a brown dwarf can

shed light on the pressure, temperature and climate on
the surface of the celestial body.
IN NEWS BINARY STARS SYSTEM

Recently, a group of astrophysicists have found that the closest • Binary stars are two stars orbiting a common centre of
known brown dwarf, Luhman 16A, shows signs of cloud bands mass.
similar to those seen on Jupiter and Saturn.They used the • The brighter star is officially classified as the primary
technique of polarimetry to determine the properties of star, while the dimmer of the two is the secondary star.
atmospheric clouds outside of the solar system. In cases where the stars are of equal brightness, the
designation given by the discoverer is respected.
• They are very important in astrophysics because
calculations of their orbits allow the masses of their
component stars to be directly determined, which in turn
allows other stellar parameters, such as radius and
density, to be indirectly estimated.
BROWN DWARFS
• Brown dwarfs are also called failed stars, because their
masses are heavier than planets but lighter than stars.
• Due to their small masses, they are unable to sustain
LUHMAN 16 fusion of their hydrogen to produce energy.
• Luhman 16A is part of a binary system (Luhman 16) • It is believed that some of the more massive brown dwarfs
containing a second brown dwarf, Luhman 16B. This pair fuse deuterium or lithium and glow faintly.
of brown dwarfs Luhman 16A and Luhman 16B orbit each POLARIMETRY
other.
• Polarimetry is the study of polarization. Polarization is a
• It is situated at a distance of about 6.5 light years from the property of light that represents the direction that the
Sun and the third closest system to the Sun after Alpha light wave oscillates.
Centauri and Barnard’s star.
• When light is reflected off of particles it can favour a
• Despite the fact that Luhman 16A and 16B have similar certain angle of polarization. By measuring the preferred
masses and temperatures and presumably formed at the polarization of light from a distant system, astronomers
same time, they show markedly different weather. can deduce the presence of clouds.
• Luhman 16B shows no sign of stationary cloud bands, • However, in case of Luhman 16A, the researchers have
instead showing evidence of more irregular, patchy clouds. found the actual structure of the clouds (not only their
• Luhman 16B, therefore, has noticeable brightness presence).
variations as a result of its cloudy features, unlike Luhman

Science & Technology
• The polarimetry technique isn't limited to brown dwarfs. It • It is a flammable liquid that is used in the
can also be applied to exoplanets orbiting distant stars, manufacturing of polystyrene plastics, fiberglass,
or even stars. However, light from brown dwarfs is ideal rubber, and latex.
for the study. • It is also reported that styrene is also found in vehicle
exhaust, cigarette smoke, and in natural foods like
STYRENE GAS LEAK

fruits and vegetables.
• Styrene is named after storax balsam, the resin of
#Chemistry #Disaster Liquidambar trees of the Altingiaceae plant family. Styrene
occurs naturally in small quantities in some plants and
foods (cinnamon, coffee beans, balsamic trees and
IN NEWS peanuts) and is also found in coal tar.
In a grim reminder of Bhopal Gas Tragedy, LG plant in • Styrene is an organic compound with the chemical formula
Vishakhapatnam faced malfunction and it led to release of C6H5CH=CH2. This derivative of benzene is a colourless
Styrene gas, which caused the death of 11 people and oily liquid, although aged samples can appear yellowish.
hundreds being hospitalized. The compound evaporates easily and has a sweet smell,
although high concentrations have a less pleasant odour.
WHAT IS STYRENE GAS?
• In 1839, the German apothecary Eduard Simon isolated a
volatile liquid from the resin (called storax or styrax (Latin))
of the American sweetgum tree (Liquidambar styraciflua).
He called the liquid "styrol" (now styrene).
WHAT HAPPENS WHEN EXPOSED TO STYRENE GAS?

• Short-term exposure to the substance can result in
respiratory problems, irritation in the eyes, irritation in the
mucous membrane, and gastrointestinal issues.
• Long-term exposure could drastically affect the central
nervous system and lead to other related problems like
peripheral neuropathy. It could also lead to cancer and
depression in some cases.
• Symptoms of exposure to styrene gas are headache,
hearing loss, fatigue, weakness, difficulty in concentration
etc.
INTERNATIONAL DAY OF
LIGHT
#Physics
IN NEWS
The International Day of Light is a global initiative that
provides a platform for the continued appreciation of light and
the role it plays in science, culture and art, education and

sustainable development, and in fields as diverse as medicine, • Promote the importance of lighting technology and the
communications and energy. The broad theme of light will need for access to light and energy infrastructure in
allow many different sectors of society worldwide to sustainable development, and for improving quality of life
participate in activities that demonstrates how science, in the developing world.
technology, art and culture can help achieve the goals of
UNESCO – education, equality and peace.
NATIONAL TECHNOLOGY
DAY
#Science
WHY IS THE INTERNATIONAL DAY OF LIGHT IN NEWS

CELEBRATED? May 11 is observed as the National Technology Day. This day
• The International Day of Light is celebrated on 16 May marks the anniversary of Pokhran nuclear tests of 1998 and
each year, the anniversary of the first successful India's technological advancements in this space.
operation of the laser in 1960 by physicist and engineer, SIGNIFICANCE
Theodore Maiman.
• It is the day India successfully tested nuclear bombs in
• In 2015, to raise global awareness of the achievements Pokhran on May 11, 1998.
of light science and its applications, the UN observed
• India successfully test-fired its Shakti-1 nuclear missile in
the International Year of Light and Light-based
operation called Pokhran-II, also codenamed as
Technologies 2015 (IYL 2015).
Operation Shakti.
• Following the success of IYL 2015, Ghana, Mexico, New • The nuclear missile was tested at the Indian Army's
Zealand and Russia placed a resolution before the
Pokhran Test Range in Rajasthan. This was the second test
UNESCO Executive Board supporting the idea of an
which was conducted after Pokhran-I codenamed
International Day of Light. It was adopted on September
Operation Smiling Buddha, in May 1974.
19, 2016 at the Board’s 200th session at the UNESCO
• The day which was first observed on 11 May, 1999, aims to
HQ in Paris, France.
commemorate the scientific and technological
OBJECTIVES BEHIND THE IDL achievements of Indian scientists, engineers. The day was
According to lightday.org, the major objectives of the IDL named by the former Prime Minister Atal Bihari Vajpayee.
include: • On the same day i.e. May 11, 1999, India performed a
• Improve the public understanding of how light and successful test firing of the Trishul Missile (surface to air
light-based technologies touch the daily lives of short range missile) and had test flown the first indigenous
everybody, and are central to the future development of aircraft – ‘Hansa – 3’.
the global society. • Every year, the Technology Development Board of India (a
• Highlight and explain the intimate link between light statutory body under the Ministry of Science and
and art and culture, enhancing the role of optical Technology) celebrates the day by awarding individuals
technology to preserve cultural heritage. with National Award for their contribution to science and
technology in India.
• Emphasise the importance of basic research in the
fundamental science of light, the need for investment in • The focus this year is ‘Rebooting the economy through
light-based technology to develop new applications, and Science and Technology.’
the global necessity to promote careers in science and
engineering in these fields.

AFRICAN SWINE FEVER

• The swine flu viruses are spread among pigs through close
contact and through contaminated objects moving
#Biology between infected and uninfected pigs.
• Symptoms include fever, depression, coughing, discharge

from the nose and eyes, eye redness or inflammation.
IN NEWS • Swine flu viruses don’t typically infect humans, cases have
been reported in the past (for instance during the 2009
Many pigs have died in the Assam due to African Swine Fever
H1N1 pandemic), most commonly when humans have
(ASF), which does not affect humans but can be catastrophic
contact with infected pigs.
for pigs.Officials believe ASF came into India through Tibet into
Arunachal Pradesh and then into Assam, the state with the • When humans are infected with swine flu viruses, the
highest population of pigs in the country. symptoms are similar to human seasonal influenza and
include fever, lethargy, lack of appetite and coughing.
WHAT IS AFRICAN SWINE FEVER (ASF)?
• ASF is a severe viral disease that affects wild and
domestic pigs typically resulting in an acute RAPID TESTS
haemorrhagic fever. The disease has a case fatality rate
(CFR) of about 100 percent. #Bio-Technology
• Its routes of transmission include direct contact with an
infected or wild pig (alive or dead), indirect contact
through ingestion of contaminated material such as food IN NEWS
waste, feed or garbage or through biological vectors such After allowing rapid tests in certain zones for COVID-19, ICMR
as ticks. has asked states to return test kits to suppliers. A look at how
• The disease is characterised by the sudden deaths of such tests work, why states have been demanding it, and how
pigs. Other manifestations of the disease include high their debate with ICMR has unfolded.
fever, depression, anorexia, loss of appetite, WHAT IS RAPID TEST?
haemorrhages in the skin, vomiting and diarrhoea
• A rapid test essentially is a test that takes less time than
among others.
the 8-9 hours that the standard RT-PCR test result takes. In
• It is important that determination of ASF is made through the Indian context, a rapid test means the serological
laboratory testing and it is differentiated from Classical tests with kits that India had imported from China,
Swine Fever (CSF), whose signs may be similar to ASF, which have now failed quality tests.
but is caused by a different virus for which a vaccine
• The difference between the two procedures is that the RT-
exists.
PCR (Reverse transcription polymerase chain reaction) test
• Even so, while ASF is lethal, it is less infectious than looks to find the virus in nasal or throat swabs of the
other animal diseases such as foot-and-mouth disease. patient, while the serological test usually looks for
But as of now, there is no approved vaccine, which is also antibodies in the blood, which the body develops to fight
a reason why animals are culled to prevent the spread of the virus.
infection.
• The serological test is faster, taking less than 30 minutes,
RELATED INFORMATION: SWINE FLU while the PCR-based test takes up to nine hours. The long
• Swine influenza or swine flu is a respiratory disease of wait time is also because the nasal or throat swab is first
pigs, which is caused by type A influenza virus that subjected to a screening test to decide the family of the
regularly causes outbreaks of influenza in pig populations. virus; if that test confirms that it is a coronavirus, then a
Specific swine influenza vaccines are available for pigs. second test is done to ascertain if it is indeed the novel
coronavirus SARS-CoV2.

• Blood has two components, a matrix called plasma over Troy. The other is the application of a low-voltage
and the blood cells. The plasma minus the components electric field toward preventing amyloid plaques from
of whole blood that cause it to clot, known as serum, is aggregating to cause memory loss. The cause of
examined in a serological test. Alzheimer’s is the accumulation of amyloid-beta peptides
• Serology tests are blood-based tests that can be used to in the brain.
identify whether people have been exposed to a particular • Metaphorically, a "Trojan horse" has come to mean any
pathogen. trick or stratagem that causes a target to invite a foe into a
• Serology-based tests analyze the serum component of securely protected bastion or place. A malicious computer
whole blood. The serum includes antibodies to specific program that tricks users into willingly running it is also
components of pathogens, called antigens. These called a "Trojan horse" or simply a "Trojan".
antigens are recognized by the immune system as foreign • The trojan peptide is roughly like the peptide in the
and are targeted by the immune response. body. But while it goes along with the other peptides, its
function is contrary to aggregation. Through intravenous
WAY TO FIGHT
injection of the trojan peptide, scientists can retard the
degeneration of nerve cells by 17-35%, translating into a
ALZHEIMER’S DISEASE 10-year delay in the onset of the disease.
• This peptide is akin to the plaque that blocks arteries

#Bio-Technology over a period of time, affecting blood supply and leading
to cardiovascular diseases. Its aggregation, meaning the
formation of one over the other, deforms the cortex of the
IN NEWS brain leading to Alzheimer’s disease.
Researchers at the Indian Institute of Technology-Guwahati • The use of an external electric or magnetic field modulates
(IIT-G) after a five-year study have arrived at methods for these molecules to “pull back the possibility of Alzheimer’s
preventing the accumulation of neurotoxic molecules in the to a certain extent”.
brain, which leads to memory loss.
WAY FORWARD
WHAT IS UNIQUE ABOUT THE METHOD DEVELOPED
• The next step for the researchers is to work with these
BY IIT GUWAHATI? techniques on mice induced with Alzheimer’s at the
National Institute of Pharmaceutical Education and
Research in Guwahati.
• The development of a cure for the disease is important for

India, which is third behind China and the U.S. in the
number of number of Alzheimer’s patients.
TROGLOMYCES TWITTERI
#Biology
IN NEWS
A new species of parasitic fungus named Troglomycestwitteri
has been discovered by a Danish researcher.
• One is the use of “trojan peptides” that does what the
Trojan horse did for the ancient Greeks in their victory

WHAT IS TROGLOMYCESTWITTERI? • The researchers was scrolling though Twitter and the
species was discovered by closely observing the images of
• Troglomycestwitteri belongs to an order called
millipedes shared through twitter and hence the name
Laboulbeniales, are tiny fungal parasites that attack
Troglomycestwitteri.
insects and millipedes.
• They look like tiny larvae. These fungi live on the outside
of host organisms; in this case, on the reproductive
organs of millipedes.
practice questions
MCQs
Q1. Consider the following statements: Choose the correct statement/s from the code given below:
1. Binary stars are two stars orbiting a common centre of (a) 1 only (b) 2 only
mass. (c) Both 1 and 2 (d) Neither 1 nor 2
2. Brown Dwarfs are able to sustain fusion of their
hydrogen to produce energy. Q4. Consider the following statements:-
3. Polarization is a property of light that represents the 1. African Swine Fever is a severe viral disease that affects
direction that the light wave oscillates. wild and domestic pigs.
Which of the statements given above are correct? 2. African Swine Fever routes of transmission is only
(a) 1 and 2 only (b) 2 and 3 only direct contact with an infected or wild pig with no sign
(c) 1 and 3 only (d) All of the above of spreading due to indirect contact.
Choose the correct statement/s from the code given below:
Q2. Which of the following statements is/are correct? (a) 1 only (b) 2 only
1. National Technology Day is celebrated to (c) Both 1 and 2 (d) Neither 1 nor 2
commemorate Pokhran-I codenamed Operation
Smiling Buddha. Q5. Consider the following statements:-
2. The theme of National Technology Day 2020 is 1. Rapid test looks to find the virus in nasal or throat
‘Rebooting the economy through Science and swabs of the patient.
Technology.’ 2. RT-PCR (Reverse transcription polymerase chain
(a) 1 only (b) 2 only reaction) test is a serological test.
(c) Both 1 and 2 (d) Neither 1 nor 2 Choose the correct statement/s from the code given below:
Q3. Consider the following statements: (c) Both 1 and 2 (d) Neither 1 nor 2
1. Styrene is a derivative of benzene and is a colourless
oily liquid..
2. Styrene occurs naturally in small quantities in some
plants and foods and is also found in coal tar..
Answers to above MCQs: 1 (c), 2 (b), 3 (c), 4(a), 5(d)

Geography, Environment,
Biodiversity & Disaster
Management
# GS Paper (Prelims) and GS Paper I & III (Main)
AMPHAN CYCLONE
(But keep in mind that these are just necessary conditions
and not sufficient.)
# Climate ARE THEY CALLED SOMETHING ELSE ALSO?

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

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

bad weather.
• There are six main requirements for tropical cyclogenesis: WHEN DOES A “DEPRESSION” BECOMES A
 sufficiently warm sea surface temperatures; “CYCLONE”?
 atmospheric instability; • The World Meteorological Organisation uses the term

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

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

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

In 2020, the first name to be used will be the one not used yet from the list below: Amphan.
Contributors List 1 List 2 List 3 List 4 List 5 List 6 List 7 List 8
Bangladesh Onil Ogni Nisha Giri Helen Chapala Ockhi Fani
India Agni Akash Bijli Jal Lehar Megh Sagar Vayu
Maldives Hibaru Gonu Aila Keila Madi Roanu Mekunu Hikaa
Myanmar Pyarr Yemyin Phyan Thane Nanauk Kyant Daye Kyarr
Oman Baaz Sidr Ward Murjan Hudhud Nada Luban Maha
Pakistan Fanoos Nargis Laila Nilam Nilofar Vardah Titli Bulbul
Sri Lanka Mala Rashmi Bandu Viyaru Ashobaa Maarutha Gaja Pawan
Thailand Mukda Khai Muk Phet Phailin Komen Mora Phethai Amphan
WMO/ESCAP Panel Column 1 Column 2 Column 3 Column 4

Member countries
Name Pron' Name Pron' Name Pron' Name Pron'
Bangladesh Nisarga Nisarga Biparjoy Biporjoy Arnab Ornab Upakul Upokul
India Gati Gati Tej Tej Murasu Murasu Aag Aag
Iran Nivar Nivar Hamoon Hamoon Akvan Akvan Sepand Sepand
Maldives Burevi Burevi Midhili Midhili Kaani Kaani Odi Odi
Myanmar Tauktae TauTe Michaung Migjaum Ngamann Ngaman Kyarthit Kjathi
Oman Yaas Yass Remal Re-Mal Sail Sail Naseem Naseem
Pakistan Gulab Gul-Aab Asna As-Na Sahab Sa-Hab Afshan Af-Shan
Qatar Shaheen Shaheen Dana Dana Lulu Lulu Mouj Mouj
Saudi Arabia Jawad Jowad Fengal Feinjal Ghazeer Razeer Asif Aasif
Sri Lanka Asani Asani Shakhti Shakhti Gigum Gigum Gagana Gagana
Thailand Sitrang Si-Trang Montha Mon-Tha Thianyot Thian-Yot Bulan Bu-Lan
United Arab Mandous Man-Dous Senyar Sen-Yaar Afoor Aa-Foor Nahhaam Nah-Haam
Emirates
Yemen Mocha Mokha Ditwah Ditwah Diksam Diksam Sira Sira
But there are few conditions which need to be abided by • It should not be very rude and cruel in nature;
while submitting the names: • It should be short, easy to pronounce and should not be
• The proposed name should be neutral to (a) politics offensive to any member;
and political figures (b) religious believes, (c) cultures • The maximum length of the name will be eight letters;
and (d) gender;
• The proposed name should be provided with its
• Name should be chosen in such a way that it does not pronunciation and voice over;
hurt the sentiments of any group of population over the
globe;

• The names of tropical cyclones over the north Indian used again. Thus, the name should be new.
Ocean will not be repeated. Once used, it will cease to be
IS IT REALLY TRUE THAT FREQUENCY OF CYCLONES IS INCREASING?
TIMELINE OF CYCLONES IN 2019 (ABOVE) REASON OF INCREASED FREQUENCY: WARMING OF
• Yes. If you see in 2019, there were 3 Very Severe Cyclonic BAY OF BENGAL
Storms and 2 Extremely Severe Cyclonic Storm. Temperature plays a big role in over-all process, let us see
• This year, just before the beginning of monsoon we have what has happened with Temperature in the Bay of Bengal.
Super cyclone (highest in intensity in last 20 years). Cyclones gain their energy from the heat and moisture
generated from warm ocean surfaces.

CLIMATE CHANGE:
The colour towards red denotes T reaching 30 and you
can see increasing dominance of red colour in the Bay
through last 5 decades.
Higher than normal temperatures in the Bay of Bengal (BoB)

IMPACT ON
HYDROSPHERE
may be whetting ‘super cyclones’ and the lockdown,
indirectly, may have played a role.
What could be the reasons behind the warming of Bay? # Climate Change
• Long term climate change (as can be seen in the graphs)
• Lockdown:
o Reduced particulate matter emissions during the

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

continuously rising since past two decades.
Warming Oceans: The ocean does an excellent job of absorbing excess heat from the atmosphere. The top few meters of the
ocean stores as much heat as Earth's entire atmosphere. So, as the planet warms, it's the ocean that gets most of the extra
energy.
Shrinking of Cryosphere:
Shrinking of Ice sheets:
The Greenland and Antarctic ice sheets

have decreased in mass.

Frost-free Season (and Growing Season)

will Lengthen
The length of the frost-free season (and the

corresponding growing season) has been
increasing since the 1980s.
Glacial retreat
Glaciers are retreating almost everywhere

around the world — including in the Alps,
Himalayas, Andes, Rockies, Alaska and
Africa.
Decreased snow cover
Satellite observations reveal that the

amount of spring snow cover in the
Northern Hemisphere has decreased over
the past five decades and that the snow is
melting earlier.
Ocean Acidification:
Since the beginning of the Industrial

Revolution, the acidity of surface ocean
waters has increased by about 30 percent.
This increase is the result of humans

emitting more carbon dioxide into the
atmosphere and hence more being
absorbed into the oceans. The amount of
carbon dioxide absorbed by the upper layer
of the oceans is increasing by about 2
billion tons per year.
HEAT WAVES
during the summer season in the North-Western parts of
India.
# Climate • Heat Waves typically occur between March and June, and
in some rare cases even extend till July.
• The extreme temperatures and resultant atmospheric

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

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

two consecutive days and it will be declared on the second
day.
b) Based on Actual Maximum Temperature (for plains only)
Left: Maximum T across India (Stations crossing 40 Degree C • The sky should be practically cloudless (To allow maximum
denoted in Red) insulation over the region).
Right: Stations Observing departure from Mean maximum T • Large amplitude anti-cyclonic flow over the area.
by more than 4.5 degree C denoted in Red (regions of heat • Heat waves generally develop over Northwest India and
wave) spread gradually eastwards & southwards but not
WHAT ARE FAVOURABLE CONDITIONS FOR HEAT westwards (since the prevailing winds during the season
WAVE? are westerly to north westerly).
• Transportation / Prevalence of hot dry air over a region • But on some occasions, heat wave may also develop over
(There should be a region of warm dry air and appropriate any region in situ under the favourable conditions.
flow pattern for transporting hot air over the region).
• Absence of moisture in the upper atmosphere (As the

presence of moisture restricts the temperature rise).

The health impacts of Heat Waves typically involve

dehydration, heat cramps, heat exhaustion and/or heat
stroke. The signs and symptoms are as follows:
• Heat Cramps: Ederna (swelling) and Syncope (Fainting)

generally accompanied by fever below 39 i.e.102*F.
• Heat Exhaustion: Fatigue, weakness, dizziness, headache,

nausea, vomiting, muscle cramps and sweating.
• Heat Stoke: Body temperatures of 40*C i.e. 104*F or more

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

LOCUST ATTACK
# Environment
IN NEWS
Over the past several weeks, locust attacks emanating from
the desert area in Pakistan have struck parts of Rajasthan and
Gujarat, causing heavy damage to standing crop. The situation
is being closely monitored by agri-experts in the states and the
Centre. In the desert locust, the gregaria nymphs become darker with
strongly contrasting yellow and black markings, they grow
ABOUT LOCUSTS
larger, and have longer developmental periods.
• Locusts are a collection of certain species of short-horned
grasshoppers in the family Acrididae that have a HOW DO THESE LOCUSTS HARM AGRICULTURE?
swarming phase. • The swarms eat leaves, flowers, fruits, seeds, bark and
• Swarm behaviour, or swarming, is a collective behaviour growing points, and also destroy plants by their sheer
exhibited by animals, of similar size which aggregate weight as they descend on them in massive numbers.
together, perhaps milling about the same spot or perhaps
moving en masse or migrating in some direction. • Desert locusts can have about 40 million to 80 million
locust adults in each square kilometre of a swarm and
WHAT ARE LOCUST ATTACKS AND HOW ARE THEY
travel up to 150 kilometres a day, according to the FAO.
CAUSED?
• There is an exponential increase in locust numbers with
Normal situation: These grasshoppers are innocuous, their
numbers are low, and they do not pose a major economic every new generation of breeding and a swarm the size of
threat to agriculture. one square kilometre, containing about 40 million locusts,
Attack situation: However, under suitable conditions of eats the same amount of food in one day as about 35,000
drought followed by rapid vegetation growth, serotonin in people.
their brains triggers a dramatic set of changes: they start to
breed abundantly, becoming sociable and nomadic (loosely
described as migratory) when their populations become
dense enough.
Is the difference in environmental condition also
reflected on their morphology? Yes, differences in
morphology and development are seen.
Fig: The locusts coming to India (Rajasthan and Gujarat)

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

What are the situations which exacerbate these attacks?

The task is more difficult because of political instability in
some countries. In Somalia, for example, the FAO says that
aerial spraying has been ruled out in areas not controlled by
the government. The civil war in Yemen may also have
contributed to the outbreak.
IMD MONSOON
PREDICTION
# Climate
IN NEWS
In the season of the abnormal, the IMD has announced that
the monsoon this year would likely be normal but delayed.
What is the procedure which the agency follows for

Fig: Areas impacted due to locust attack in India predicting the Monsoon?
HOW MANY SPECIES OF LOCUSTS ARE NATIVE TO The agency follows a two-stage forecast system:
INDIA? 1. April Forecast: In this forecast it tells if there are chances
Only four species of locusts are found in India: of drought or any other anomaly.
1. Desert locust (Schistocerca gregaria), 2. June Forecast: This forecast is more detailed (as Monsoon
usually arrives by this time). This notification contains
2. Migratory locust (Locusta migratoria),
answers to specific questions like how the monsoon will
3. Bombay Locust ( Nomadacris succincta)
likely distribute over the country and whether danger signs
4. Tree locust (Anacridium sp.). are imminent.
• The desert locust is regarded as the most important in So what does “Normal” means? ‘Normal’ means India will
India as well as internationally. get 100% of its long period average, with a potential 5%
• The attack of 2019-2020 has been caused mainly due to error margin.
Desert locust (Schistocerca gregaria) So do we take this forecast seriously? The past experience
HOW DOES INDIA PLANS TO CONTROL THESE suggests that the April forecast very poorly aligns with the
eventual monsoon outcome. In 2019, IMD had predicted
ATTACKS?
normal monsoon and on the contrary India received highest
• India has a locust control and research scheme that is rains in 25 years.
being implemented through the Locust Warning
What are the reasons behind incorrect prediction? There
Organisation (LWO) under Ministry of Agriculture.
are two reasons for that:
• The LWO’s responsibility is monitoring and control of the
Incorrect Modelling: Most important reason is that our
locust situation in Scheduled Desert Areas, mainly in
weather models are not able to accommodate innumerable
Rajasthan and Gujarat, and partly in Punjab and Haryana.
parameters which affect/impact the monsoon rains. The April
India is most at risk of a swarm invasion just before the onset forecast is a done using ‘statistical forecast system’ where
of the monsoon. The swarms usually originate in the Arabian values of selected meteorological parameters are recorded
Peninsula and the Horn of Africa.

until March 31 and permutations of these are computed and • A statement from LG Polymers said that stagnation and
compared to the IMD’s archive of weather data. changes in temperature inside the storage tank could have
Bureaucratic style of functioning: Second reason is that resulted in auto polymerization and could have caused
IMD after all is a govt. agency (also part of bureaucratic set vaporization.
up) and hence it shies away from making any “Not so Normal” WHAT HAPPENS WHEN EXPOSED TO STYRENE?
claims.
• Short-term exposure to the substance can result in
Has IMD made changes in its models? It has made two key respiratory problems, irritation in the eyes, irritation in the
changes this year: mucous membrane, and gastrointestinal issues.
• Reduced the definition of ‘normal’ rainfall by 1 cm, to 88 • Long-term exposure could drastically affect the central
cm nervous system and lead to other related problems like
• Updated the monsoon onset and arrival dates for many peripheral neuropathy.
States. • It could also lead to cancer and depression in some cases.
Why were these changes made? These changes in the SUBSEQUENT NGT INTERVENTION
model recognize the changing weather pattern. Just like any
Payment of Penalty: The National Green Tribunal (NGT)
other weather phenomenon, Monsoon has been deeply
directed LG Polymers India to deposit an initial amount of 50
impacted by climate change. For example, the monsoon is
crore for the damage caused by the gas leak at its plant in
arriving later in many places, having long weak spells, and is
Vishakhapatnam, which left at least 11 people dead and a
staying for longer periods.
affected several others.
Constitution of a five member fact finding committee:
STYRENE GAS LEAKAGE The Committee may specifically report on the sequence of
events, causes of failure and the persons and authorities
# Disaster responsible, the extent of damage to life, human and non-

human, public health and the environment, including water,
steps to be taken for compensation of victims and restitution
of the damaged property and environment and the cost
IN NEWS
involved.
Styrene gas was released in Vishakhapatnam Plant of LG
THE PRINCIPLE OF STRICT LIABILITY AND ITS
Chemicals. Many people lost their life and a lot of people were
APPLICATION IN INDIA:
hospitalized.
• It imposes legal responsibility for damages or injuries
WHAT IS STYRENE GAS?
caused by hazardous substances in his premises even if
• It is a flammable liquid that is used in the manufacturing of the person did not act with fault or negligence.
polystyrene plastics, fiberglass, rubber, and latex.
• According to the absolute liability rule, no exceptions of
• Styrene is also found in vehicle exhaust, cigarette smoke, strict liability shall apply in certain cases. Therefore, the
and in natural foods like fruits and vegetables. people who cause damage will have unlimited liability to
WHAT LED TO LEAKAGE? compensate victims adequately. Courts in India have
applied this rule in many cases to create deterrence.
• Styrene has to be stored in gas tanks under 20°C to keep
it stable. The temperature has to be continuously COMPLIANCE ISSUES ON BEHALF OF OPERATOR
monitored, and any exposure to light or heat may result in Styrene gas was defined as a hazardous chemical under
polymerization. If temperature rises, inhibitors have to be Manufacture, Storage And Import Of Hazardous Chemical
added to keep the styrene stable. As a safety measure, the (Amendment) Rules. Accordingly the rules require onsite and
styrene tanks are never filled to capacity. offsite emergency plans to ensure prevention of damage.

LG Polymers handed over critical operations to untrained  Seeds can be sown much before monsoon;
casual workers. Hence, there appears to be failure to comply  Weeds in the field are removed;
with rules and other statutory provisions.
 Multiple branches.
DIRECT SEEDING OF RICE (DSR) TECHNIQUE
DIRECT SEEDING OF RICE • It involves sowing pre-germinated seed into a puddled soil
surface (wet seeding), standing water (water seeding) or
# Agriculture dry seeding into a prepared seedbed (dry seeding).
• Crops matures 7-10 days earlier than puddle transplanted

rice. They are not subjected to stress like being pulled from
IN NEWS the soil of the nursery and do not need to reproduce fine
Farmers in rice growing region are shifting from conventional rootlets.
puddled transplanted rice method to Direct Seeding of Rice • Hence it gives more time for the management of paddy
(DSR) this khairf season because of labour shortage. straw, for the timely sowing of next wheat crop.
Rice is one of the most important food crops in the world, ADVANTAGES OF DSR TECHNIQUE
and staple for more than half of the global population.
 Seed depth is kept uniform - results in better growth of
Looming water crisis, water-intensive nature of rice
crop.
cultivation and escalating labour costs drive the search for
alternative management methods to increase water  DSR involves more precision in timing and greater
productivity in rice cultivation. accuracy in operations.
Direct seeded rice (DSR) has received much attention because  Fast Sowing speed.
of its low-input demand. It involves sowing pre-germinated  Sowing distance and depth can be set as per the
seed into a puddled soil surface (wet seeding), standing water requirement.
(water seeding) or dry seeding into a prepared seedbed (dry
 It helps in saving irrigation water
seeding).
 Less labour intensive
Traditional practice: Paddy is grown in nursery and then
 No puddling - no damage to soil texture and quality.
transplanted to puddled field –
 Reduced incidence of nutrient deficiency, especially iron,
• By growing in nursery, it is ensured that only the
owing to lesser leaching of nutrients
germinated seeds are shifted to main field and hence
plants per unit area is maximum. Comparative yields in DSR can be obtained by adopting
various cultural practices viz., selection of suitable cultivars,
• As it is easy to irrigate a small area, seeds can be sown
proper sowing time, optimum seed rate, proper weed and
much before monsoon and hence the main monsoon can
water management.
be used for watering the transplanted crop in fields.
The development of early-maturing varieties and improved
• Main field is puddled just before transplanting. Thus all the
nutrient management techniques along with increased
weeds in the field are removed.
availability of chemical weed control methods has
• Paddy plants shoot out as a single branch. Once disturbed
encouraged many farmers in the Philippines, Malaysia,
either by crushing them or by transplanting them, they
Thailand and India to switch from transplanted to DSR
shoot out multiple branches and thus the growth is
culture. This shift should substantially reduce crop water
naturally increased. This is the most important reason of
requirements, soil organic-matter turnover, nutrient
transplanting.
relations, carbon sequestering, weed biota and greenhouse-
ADVANTAGES OF CONVENTIONAL TECHNIQUE gas emissions.
 Plants per unit area is maximum; Still, weed infestation can cause large yield losses in DSR. In
addition, recent incidences of blast disease, crop lodging,

impaired kernel quality and stagnant yields across the years are major challenges in this regard.
practice questions
MCQs
Q1) Consider the following statements: (c) Both 1 and 2 (d) Neither 1 nor 2
1. According to IMD, ‘Normal’ monsoon means India will
get 100% of its long period average, with a potential 5% Q4) Consider the following statements:
error margin. 1. Heatwave event is declared when the maximum (day)
2. IMD follows March and May forecasting system. temperature for a location in the plains crosses 40
Which of the statements given above is/are correct? degrees Celsius.
(a) 1 only (b) 2 only 2. Any location where maximum temperature crosses 45
(c) Both 1 and 2 (d) Neither 1 nor 2 degrees or shows a departure of over 6 degrees from
normal, it is a severe heatwave condition.
Q2) Consider the following statements: Which of the statements given above is/are correct?
1. Styrene has to be stored in gas tanks under 30°C to (a) 1 only (b) 2 only
keep it stable. (c) Both 1 and 2 (d) Neither 1 nor 2
2. Exposure of Styrene to light or heat may result in

polymerization. Q5) Consider the following statements:
Which of the statements given above is/are correct? 1. The names of tropical cyclones over the north Indian
(a) 1 only (b) 2 only Ocean will not be changed.
(c) Both 1 and 2 (d) Neither 1 nor 2 2. The name of a tropical cyclone from south China Sea
which crosses Thailand and emerge into the Bay of
Bengal as a Tropical cyclone will not be repeated.
Q3) Consider the following statements:
Which of the statements given above is/are correct?
1. Locust Warning Organisation (LWO) is under Ministry
of Rural Development. (a) 1 only (b) 2 only
2. Locusts impacting India originate in Central Asia. (c) Both 1 and 2 (d) Neither 1 nor 2
Which of the statements given above is/are correct?

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

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

ARCHITECTURE
BOJJANNAKONDA CHAUKHANDI STUPA

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

History, Heritage & Culture
• It is maintained, conserved and preserved by • The architecture of Pallavas influenced everyone including
Archaeological Survey of India (ASI). Chinese. Pallavas also had trade relations with the
• The art found in this stupa includes some images of Chinese.
Buddha, such as the image of buddha in • The Descent of the Ganga/Arjuna’s Penance, a rock
Dharmachakra Pravartana mudra. carving commissioned by Narasimhavarman I, with its
• Other statues found during excavations at this Stupa are depiction of the Bhagirathi flowing from the Himalayas. It
believed to be rare artefacts and classic examples of art may serve as a reminder of the geography of India-China
from Gupta period. relations, and their shared resources.
• While Narasimhavarman I is credited with excavating the

stone caves of Mamallapuram, it was Mahendravarman I,
BHITARGAON BRICK Narasimhavarman’s father who ruled from 600 AD to 630

AD, who was the pioneer of Pallava rock-cut
TEMPLE architecture.
• The successors of Narasimhavarman I, especially his

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

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

the Straits of Malacca, essentially to protect their trade • The cave complex has been given the status of world
routes to China and the rest of the region. heritage by UNESCO in 1987.
• Among the colonial outposts on this coast is • The logo of the Maharashtra Tourism Development
Sathurangapattinam, or Sadras, right next to Corporation shows a 20 ft high monolith of the three-
Kalpakkam, where the Dutch East India Company built a headed Trimurti Sadashiva representing the three
fort, their second one on the east coast after establishing aspects of Shiva. This awe-inspiring piece of carving, hewn
a capital at Pulicat, north of Chennai. out of rocks similar to Ellora in the same State, is the
• Sadras became a huge centre for the Dutch-controlled focal point of the Elephanta Caves.
manufacture of cotton and muslin. The Dutch presence in
the region grew rapidly after they established themselves
in Java in 1603. RANI KI VAV
• They traded within Asia, buying textiles, metal, and
• Rani-ki-Vav, or the ‘queen’s stepwell’ is located in Gujarat’s
porcelain, importing and exporting between India, China
Patan city.
and Japan, to keep the spice trade going.
• It is believed to have been built by Rani Udayamati, in
memory of her husband Bhimdev I, the founder of the
ELEPHANTA CAVES Solanki dynasty of Patan.
• The construction began in 1063 A.D. and continued for

• Elephanta was anciently known as Gharapuri.This island several years.
was the capital of Konkan Mauryas. • The Vav was later flooded by the Saraswati River and
• It is celebrated for its colossal image of Mahesamurti silted over until 1960s, when it was excavated by the
with three heads each representing a different form. Archaeological Survey of India.
• The island was renamed by Portuguese invaders after a • It is estimated that Vav had nearly 800 sculptures of which
giant stone sculpture of an elephant, which was removed approximately 500 are found in pristine condition.
from the island and now stands outside the Dr. Bhau Daji • It is an architectural marvel so famous that it made it to
Lad Museum. the new ₹100 currency note last year.
• The cave temple, dedicated to Lord Shiva, was excavated • This 11th century subterranean water storage system
sometime in the 8th century by the Rashtrakuta kings, happens to also be a World Heritage Site.
who ruled the area between A.D. 757-973.
• Rani-ki-Vav is a highly decorated monument with
• The Elephanta caves is a conglomeration of seven caves,
ornamented panels of sculptures and reliefs
out of which the most important is the Mahesa-murti
representing the height of Maru-Gurjara style of
cave.
architecture.
• The main body of the cave, excluding the porticos on the
• Most of the sculptures are in devotion of Vishnu, in the
three open sides and the back isle, is 27 metres square
forms of Dashavatar, with eye-catching images
and is supported by rows of six columns each.
of Varaha, Narasimha, Rama and Kalki.
• The gigantic figures of 'dvarapalas' or doorkeepers are
very impressive. • There is a particularly beautiful statue of Mahishasur-
Mardini -the Mother Goddess slaying
• There are sculptured compartments in this cave with
demon Mahishasur. Apsaras – the celestial beauties
remarkable images of Ardhanarisvara, Kalyana-sundara
showcasing 16 different styles of makeup (Solah Singar)
Shiva, Ravana lifting Kailasa, Andhakari-Murti (slaying
is another highlight.
of Andhaka demon) and Nataraja Shiva.
• There are also ancient Buddhist stupa mounds on the

same island.

• Near the water level, there is a carving of Sheshashayi • The temple was built in A.D. 1250, during the reign of the
Vishnu, in which the lord reclines on the thousand- Eastern Ganga King Narasimhadeva-I (A.D. 1238-64).
hooded serpent Shesha. • It is a monumental representation of the sun God Surya's
chariot; its 24 wheels are decorated with symbolic designs
and it is led by a team of six horses.
BRIHADEESWARAR • The monument was also called the Black Pagoda'(Kaala

Pagoda) by the European sailors. In contrast, the
TEMPLE Jagannath Temple in Puri was called the White Pagoda.

• The temple was originally built at the mouth of the river
• Brihadeeswarar Temple or Peruvudaiyar Kovil or Chandrabhaga, but the waterline has receded since then.
Rajrajeshwaram temple at Thanjavur is the world’s first
• The temple was made on the traditional style of Kalinga
complete “granite” temple.
architecture and is constructed from Khondalite rocks.
• It was built by Rajraja Chola-I and is a part of UNESCO’s
• The wheels of the temple are sundials which can be
world Heritage sites.
used to calculate time accurately to a minute including day
• It was dedicated by lord Shiva to Rajraja Chola I, when he and night.
triumphed Ilam (Sri Lanka) Island.
• The Vimana or the temple tower (known as Raja
Gopuram) is one of the tallest buildings of its kind.
JAGANNATH PURI TEMPLE
• The Nandi is carved out of a single rock.
• The Jagannath Temple was built in the city of Puri by
• Other important Chola temples include: Vijayalaya
King Anatavarman Chodaganga Deva of the Eastern
Cholisvara Temple, Thanjore; Koranganatha Temple,
Ganga Dynasty in the 12th century.
Srinivasanallur; Muvarkovil, Pudukkottai; Tiruvalisvaram
temple, Tiruneveli and Brihadeeswarar Temple, • He has also built the Sun temple of Konark.
Gangaikondacholapuram. • Both these temples are located on the eastern coast,
at Puri, Odisha.
VEERABHADRASWAMY
• There are three main deities in the temple i.e. Lord
Jagannath, Balabhadra, and Subhadra.
TEMPLE, MOTUPALLI • The temple is a part of Char Dham (Badrinath,

Dwaraka, Puri, Rameswaram) pilgrimages that a
• Veerabhadraswamy temple was built during the reign of Hindu is expected to make in one’s lifetime.
Chola dynasty. • When most of the deities in the temples of India are
• Veerabhadraswamy is a fiery form of Lord Shiva. made of stone or metal, the idol of Jagannatha is
• This temple contains inscriptions in Telugu and Tamil. made of wood which is ceremoniously replaced in
every twelve or nineteen years by using sacred trees.
• The temple also hosts Panchaloha idols of gods and
goddesses including that of Lord Nataraja in dancing • The Jagannath Temple is famously called the White
posture and Bhadrakali. Pagoda by the Europeans.
• The temple is famous for its annual Ratha Yatra or
Chariot festival.
KONARK SUN TEMPLE
• Konark Sun Temple, located in the eastern State of
Odisha near the sacred city of Puri, is dedicated to the RAMAPPA TEMPLE
sun God or Surya. It was given the tag of world heritage
• Ramappa Temple is located at Palampet near Warangal.
site in 1984.

GOLCONDA FORT
• It is considered to be a jewel of the Kakatiya dynasty.
• An inscription in the temple dates it to the year 1213 AD
and says it was built by a General Recherla Rudra, during • Golconda Fort is situated in Hyderabad, the capital of
the period of the Kakatiya ruler Ganapati Deva. Andhra Pradesh.
• This temple is dedicated to Lord Siva. • Built by the Kakatiya dynasty in the 13th century.Later,
the fort came into the possession of the Bahmani
• It is perhaps the only temple in the country that is known
dynasty.
by the name of the architect rather than the king who
commissioned it or its presiding deity. • It was then acquired by the Qutub Shahi dynasty who
then made Golconda their capital. In this respect,
• The main structure is in a reddish sandstone.
Golconda fort owes much of its present grandeur to
• The temple columns are made of black basalt. Mohammad Quli Qutub Shah.
• Among the sculptural details are the stunning dance
• By the 17th century, Golconda was famous as a diamond
sculptures and friezes of the temple.These appear as if market. It gave the world some of the best-known
they have been machined into shape on black dolomite,
diamonds, including the 'Kohinoor'.
rather than being chiselled.
• Structures in the fort range from military and defensive
• The temple is built on a valley and it rests on bricks that
structures, mortuary baths, silos, mosques, gardens,
are scientifically shown to float in water. residential quarters, pavilions and royal courts,
showcasing the entire range of structures that catered to
life in a medieval fortified town in India.
PADMANABHASWAMY • The magnificent architecture of the fort is evident from
the colossal gate at the entrance studded with long iron
TEMPLE spikes, to deter invading armies from battering it down.
• The gate leads to the portico known as the Balahisar gate,
• Sree Padmanabhaswamy temple is located in
magnificent as the gate itself. It includes the modern
Thiruvananthapuram, Kerala.
acoustic system, which was so designed that a handclap
• The presiding deity of this temple is Lord Vishnu, reclining sounded at the Balahisar gate of the fort could be heard
on Anantha, the hooded Serpent. right up in the citadel.
• This temple is one of the 108 sacred Vishnu temples or
VITTALA TEMPLE
Divya Desams in India.
• Divya Desams are the holiest abodes of Lord Vishnu that
are mentioned in the works of the Tamil Alvars (saints). • This temple reflects a high degree of craftsmanship of the
• It is a blend of the Kerala and Dravidian styles of temple architecture that reached its zenith under the
architecture. Vijayanagara rulers who reigned from 14th to 17th
century CE.
• This temple is believed to be the world’s richest temple.
• Vittala, after whom the temple is known, is a form of
• Thiruvananthapuram, the capital city of Kerala takes its
lord Vishnu.
name from the presiding deity of the Sree
Padmanabhaswamy Temple, who is also known as • This aspect of Vishnu was worshiped in this part of the
Anantha (one who reclines on the Serpent Anantha). country as their cult deity by the cattle herds.
• Sree Padmanabhaswamy temple recently became a part of • The temple was originally built in the 15th century AD
the Prime Minister’s project “Development of Spiritual based on Dravidian architecture.Many successive kings
Circuit: Sree Padmanabha Swamy Temple-Aranmula- have enhanced the temple campus during their regimes to
Sabarimala” which being implemented under the the present form.
Swadesh Drashan Scheme of Ministry of Tourism. • The highlight of Vittala temple is its impressive
pillared halls and the stone chariot.

• The halls are carved with an overwhelming array of • Orchha has a number of architectural specimens
sculptures on the giant granite pillars. belonging to synthesis of traditional Hindu, Indo-Saracenic
• The stone chariot located inside the campus is almost an and ornate Mughal art which include a palace, fortress,
iconic structure of Hampi. temple and a cenotaph.
• In addition to the typical spaces present in contemporary • The architectural heritage of Orchha town has been
temples, it boasts of a Garuda shrine fashioned as a included in the tentative list of UNESCO’s world
granite ratha and a grand bazaar street. heritage sites.
• This complex also has a large Pushkarani (stepped • The word Orchha or Urchha means ‘hidden’. The reason
tank) with a Vasantotsava mandapa (ceremonial for this naming is because the Bundelkhand Kings wanted
pavilion at the centre), wells and a network of water to retreat from the control of Delhi.
channels. • Established in 1501 by Maharaja Rudra Pratap Singh,
• Most of the structures at Hampi are constructed from Orchha has witnessed tough times as well as friendly
local granite, burnt bricks and lime mortar. The stone relations with the Mughal Dynasty.
masonry and lantern roofed post and lintel system were • The most fascinating of all the magnificent surroundings is
the most favoured construction technique. the Orchha’s Fort complex. It is known for
• The massive fortification walls have irregular cut size its chaturbhuj temple.
stones with paper joints by filling the core with rubble • The grand Orchha Complex is divided into three mesmeric
masonry without any binding material. sections; Jahangir Mahal, Raj Mahal and Sheesh
• The gopuras over the entrances and the sanctum proper Mahal.It is also famous for its 2 elevated minarets –
have been constructed with stone and brick. Saavan and Bhadon;
• The roofs have been laid with the heavy thick granite slabs • The Raj Mahal was once the prime residence of
covered with a water proof course of brick jelly and lime Bundela kings and their queens.
mortar. • In ‘Sri Ram Raja Mandir’, Lord Ram is worshipped as a King,
not as a deity. It is the only temple in India to do so.
LAKSHMI NARASIMHA
TAWANG MONASTERY
TEMPLE • It is the largest monastery in India and second
• The historical 13th century Lakshmi Narasimha temple is largest in the world after Potala Palace in Tibet.
located inBhadravati, Shivamogga district, Karnataka. • It is known in Tibetan as Gaden Namgyal Lhatse.
• The temple was built during the Hoysala rule in the early • It was founded in 1680-81 by a monk named Merag
13th century.
Lodre Gyatso of the Gelug sect after the 4th Dalai
• It is a ‘trikuta’ — a temple with three shrines — Lama gave him a painting of goddess Palden Lhamo
dedicated to deities Lakshmi Narasimha, to be kept in the monastery.
Venugopalaswamy, and Purushothama.
• An eight-metre high gilded statue of Lord Buddha
• The temple attracts a large number of devotees on dominates the sanctum of the monastery.
Vaikuntha Ekadashi and during the month of Karthika.
• The Tawang Monastery was built according to the
wishes of the 5th Dalai Lama, Ngawang Lobsang
ORCHHA Gyatso.
• Orchha town in Niwari district of MP’s Bundelkhand

region has a peculiar style of architecture used by the
Bundela dynasty.

QILA RAI PITHORA

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

KHAIR-UL-MANAZIL
• According to Hindu literature the fort marks the site of
Indraprastha, the magnificent capital of the Pandavas.
• The construction was carried out under Sher Shah Suri

between 1538 to 1545.
MOSQUE
• It was intended to be the sixth city of Delhi. • Khair-ul-Manazil means, the ‘most auspicious house’.
• Today, only two isolated gateways survive. Its northern • An inscription engraved on the centre of the façade of the
prayer hall states that it was constructed in 1561 CE by the
gate is known as the Talaqi Darwaza also translated by
efforts of Maham Angah, one of the influential wet nurses
some scholars as the Forbidden Gate.
of Mughal emperor Akbar.
• The Qila also hosts a mosque inside it known as the Qilsi
• The construction of the mosque was supervised by Shiha-
Kuhna Masjid which was built about 1542 inside bu’d- Din Ahmad Khan, a powerful noble of Akbar’s court
the Purana Qila citadel. and relative of Maham Angah.
ARCHITECTURE OF PURANA QILA ►Architecture
• In the architectural scheme of this mosque, the facade of • The mosque with attached courtyard is made of rubble
the prayer hall is divided into five arched bays, the masonry and covered with plaster.
central one larger than the others, each with an opcn • The façade of the prayer hall was profusely decorated with
archwayrecessed within it. coloured plaster and glazed tiles.
• The facade is richly carved in black and white marble • The finial of the dome resembles that of the Qila-e-Kuhna
and red sandstone. mosque in Purana Qila.
• One notable feature in this building is the shape of the • The mosque represents a leading example of mosque cum
madarsa of early Mughal period.
arches - there is a slight drop, orflatness, in the curve
towards the crown.
• It is indicative of the last stage before thedevelopment of

the "Tudor" arch of the Mughals.
SHER SHAH GATE
ABOUT TALAQI DARWAZA • The Sher Shah Gate is situated towards the north of Khair-
ul-Manazil Masjid.
• The gate has a panel showing a man fighting a lion,
• This Gate is believed to be the entrance to the extensive
considered unusual in a Moghul-era monument.
city of Delhi built by Sher Shah, in front of his citadel of
• Perhaps the panel commemorates the fight Sher Shah had Purana Qila.
when, as a young man he killed a ‘Sher’. • Another gate on the periphery of Sher Shah’s city is said to
• Since then Farid Khan came to be known as Sher Afghan. be the Kabuli or Khuni Darwaza. It is also known as Lal
Darwaza as it is clad with Red Sandstone.
• The marble panels are more than the tale of Sher Shah
and his fight with the king of beasts. • The double storey, imposing gateway is constructed of
rubble masonry and externally encased with grey
• Such depictions were a common feature in ancient
quartzite and red sandstone.
Babylon. The lion, besides man, is among the four living
• The spandrels of the gateway arch as also of the main arch
creatures (one ‘full of eyes in front and behind’) that are
are decorated with medallions and marble inlay.
believed to surround the highest seat of heaven.
• This is part of the Semitic story of creation and the panel of

the Talaqi Darwaza may well have been inspired by it, RED FORT, DELHI
though Sher Shah killed a tiger, not a lion.
• The Red Fort Complex was built as the palace fort of
Shahjahanabad – the new capital of the fifth Mughal

Emperor of India, Shah Jahan. It was completed in the • It was built during Adil Shahi era in Karnataka’sand is
year 1648. now set to get funding for restoration.
• It is adjacent to an older fort, the Salimgarh, built by • The monument has been selected under the “Ancient
Islam Shah Suri in 1546, with which it forms the Red Fort Water System of the Deccan Plateau” by the World
Complex. Monuments Fund (the NGO), which monitors restoration
• The fort is famous for its massive enclosing walls made of of ancient monuments across the globe.
red sandstone. • With this, the Suranga Bawadi is expected to get funds for
• The interiors of the fort are decorated with white restoration within the next two years.
marble, inlay works and pietra dura. • The NGO would also coordinate with the authorities
►Architectural planning and influences concerned for restoration and create awareness on its
• The planning of the palace is based on Islamic importance.
prototypes, but each pavilion reveals architectural • The World Monuments Fund works in collaboration with
elements typical of Mughal building, reflecting a fusion of the local stakeholders, including the district
Persian, Timurid and Hindu traditions. administration, the Archaeological Survey of India and
• Form the Lahore Gate, a visitor has access to the Chatta local explorers of ancient monuments, in highlighting the
Chowk (vaulted arcade) which as once a royal market need for restoration of ancient monuments.
and housed court jewellers, miniature painters carpet • In this case, it will be working on the ancient water system
manufacturers, workers in enamel, silk weavers and ‘Karez’.
families of specialized craftsmen.
ABOUT KAREZ SYSTEM
• The road from the royal market leads to the
• It is believed to be one of the best ancient water systems
Nawabarkhana (band house) where the royal band
in the world.
played five times a day.
• According to historians, the Adil Shahis built the Karez
• The Diwan-e-Aam is the Red Fort's hall of public audience
which is built of sandstone and covered with shell plaster underground water system in the 16th century to supply
polished to look like ivory.The most imposing feature of water to Vijayapura in Karnataka.
the Diwan-e-Aam is the alcove in the back wall where • The Karez system was built in the 16th century by Ali Adil
the emperor sat in state on a richly carved and inlaid Shah–I.
marble platform. In the recess behind the platform are • His successor, Ibrahim Adil Shah–II, brought in several
fine examples of Italian pietra-dura work. changes by adding more structures to strengthen it.
• The Diwan-e-Khas was the hall of private audience. It is a
• The Adil Shahis built the magnificent underground system
pavilion of white marble supported by intricately carved
to supply water to the city, which had a population of
pillars. Richly decorated with flowers of inlaid mosaic work
nearly 12 lakhs then.
of cornelian and other stones, the Diwan-e-Khas once
housed the famous Peacock Throne, which was then
BIBI KA MAQBARA
plundered by Nadir Shah in 1739.
• The Red Fort’s innovative planning and architectural style,
including the garden design, strongly influenced later • Bibi Ka Maqbara is the famous 17th century Mughal-era
buildings and gardens in Rajasthan, Delhi, Agra and further monument in the city of Aurangabad, Maharashtra.
afield.
• It was commissioned by Emperor Aurangzeb in 1660 in
the memory of his wife Dilras Banu Begum.
SURANGA BAWADI • The structure is also known as the ‘Taj of the Deccan’
because of its striking resemblance to the Taj Mahal.
• Suranga Bawadi is an integral part of the ancient Karez • Its domes and minarets are built in marble.
system of supplying water through subterranean
tunnels.

PHUTI MASJID ARCHAEOLOGICAL

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

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

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

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

Security
• Move indicates salience of Indian Ocean Region (IOR) in IN NEWS

India’s foreign policy making. The region is getting the
Indian Army’s new Integrated Battle Groups to be introduced
same importance as immediate neighbours.
in this year.
• The move conveys Indian readiness to deploy manpower
and also shows the faith in Indian expertise in these FEATURES
countries.
• Integrated Battle Groups (IBGs) are self-contained, agile,
• All assistance was extended on request and shows Delhi’s brigade-sized fighting units, which were proposed in one
readiness and capability to help despite challenges at of four studies initiated by ex-Army chief General
home.
BipinRawat on the overall restructuring of the force.
• Mission cements India’s status as first responder in Indian
• They are to replace the current Cold Start Doctrine, which
Ocean Region (IOR). The region is key to Delhi's Indo-
Pacific vision and also fulfils idea behind SAGAR - Security called for defensive corps to carry out shallow cross-
and Growth for All in the Region. border thrusts within 72 hours for limited objectives such
as the capture of territory.
• The IBGs are to perform both offensive roles, involving

OPERATION SANJEEVANI cross-border operations, and defensive roles to withstand
an enemy attack.
# India and its Neighbourhood
• Each IBG will be headed by a major general. The integrated
units for the border will be all-encompassing, with artillery,
IN NEWS armoured, combat engineers and signal units.
IAF launched `Operation Sanjeevani’ with the help of the
• Resources for the IBGs would depend on ‘Threat, Terrain
Indian Army. Medicines including influenza vaccines, anti-viral
and Task’, and should be able to mobilise in 12 to 48 hours
drugs such as Lopinavir and Ritonavir (these two medicines are
being used in other countries to treat COVID-19) have gone to based on where they are located.
the Maldives. • The composition of every IBG would differ on the basis of
ROLE OF THE INDIAN FORCES IN HUMANITARIAN the terrain where it is located — an IBG operating in a
CRISIS IN THE MALDIVES desert needs to be constituted differently from one
• Operation Cactus (1988) - The Indian Armed Forces have operating in the mountains.
helped the government of Maldives in the neutralization of SIGNIFICANCE
the coup attempt.
• Enhancing command efficiency and the capacities for
• Operation Neer (2014) - India supplied drinking water to
rapid response and coordinated operations.
Maldives to deal with the drinking water crisis.
• The two Advanced Light Helicopters (ALH) given by India to • Ensure faster punitive and defensive operations.
the Maldivian armed forces have been used in saving • The overall transformation will also see a reduction in the
Maldivian lives.
size of the 1.3 million Army.
NOTE: The ‘Cold Start’ doctrine of the Indian Armed Forces
INTEGRATED BATTLE envisages swift deployment of troops on the western border

within days if a situation of a full-blown war arises. This
GROUPS doctrine aims to allow Indian forces to conduct sustained

attacks while preventing a nuclear retaliation from Pakistan.
# Defence The operation would be carried out by a unified battle group
involving various branches of India’s military.

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

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

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

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

Security
MP-IDSA
announced establishment of Defence Industrial Corridors
(DICs) in Uttar Pradesh and Tamil Nadu.
• One of the main impediments for domestic defence # Defence Studies

production is lack of easily accessible state-of-the-art
testing infrastructure. Defence Testing Infrastructure is
often capital intensive requiring continuous upgradation IN NEWS
and it is not economically viable for individual defence
The Union Defence Minister presided over first ever virtual
industrial units to set up in-house testing facilities.
Executive Council (EC) meeting of Manohar Parrikar Institute
• The Scheme aims at setting up of Greenfield Defence for Defence Studies and Analyses (MP-IDSA).
Testing Infrastructure (required for defence and aerospace
MP-IDSA
related production), as a common facility under private
sector with Government assistance mainly in DICs. • It is a non-partisan, autonomous body dedicated to
objective research and policy relevant studies on all
OBJECTIVE
aspects of defence and security.
The objective of the proposed Scheme is to promote
• It was formerly known as Institute for Defence Studies and
indigenous defence production, with special focus on
Analyses (IDSA).
participation of MSMEs and Start Ups by bridging gaps in
defence testing infrastructure in the country. Setting up of • It was established as a registered society in New Delhi on
Defence Testing Infrastructure will provide easy access and November 11, 1965.
thus meet the testing needs of the domestic defence • Its mission is to promote national and international
industry. security through the generation and dissemination of
ABOUT THE SCHEME knowledge on defence and security-related issues.
• The Scheme would run for the duration of five years and
envisages to setup six to eight new test facilities in
partnership with private industry.
EVENTBOT
• This will facilitate indigenous defence production, # Cyber Security
consequently reduce imports of military equipment and
help make the country self-reliant.
IN NEWS
• The projects under the Scheme will be provided with up to
75 percent government funding in the form of ‘Grant-in- As per the advisory issued by the Computer Emergency
Aid’. The remaining 25 per cent of the project cost will have Response Team of India (CERT-In), Android users who use
to be borne by the Special Purpose Vehicle (SPV) whose mobile banking might be vulnerable to a new malware called
constituents will be Indian private entities and State ‘EventBot’.
Governments. • This new malware steals personal and sensitive
• The SPVs under the Scheme will be registered under information.
Companies Act 2013 and shall also operate and maintain • The Trojan virus may masquerade as a legitimate
all assets under the Scheme, in a self-sustainable manner application such as Microsoft Word, Adobe flash and
by collecting user charges. others using third-party application downloading sites to
• The equipment/systems tested will be certified as per infiltrate into victim device.
appropriate accreditation. • It is a mobile-banking Trojan and info-stealer that abuses
• While majority of test facilities are expected to come up in Android's in-built accessibility features to steal user data
the two Defence Industrial Corridors (DICs), the Scheme is from financial applications, read user SMS messages and
not limited to setting up Test Facilities in the DICs only. intercept SMS messages, allowing malware to bypass two-
factor authentication.

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

Business, Revolut, Barclays, UniCredit, CapitalOne UK,
HSBC UK, TransferWise, Coinbase, paysafecard etc.,"
• So far, the virus has not spotted on any Google Playstore

application but it can use third party app markets to mask
themselves and enter operating systems.
• Once the virus has entered the device it can retrieve

notifications about other installed applications and read
contents of other applications.
• Over the time, it can also read Lock Screen and in-app PIN
that can give attacker more privileged access over victim
device.
KEY FACTS
COUNTERMEASURES ISSUED BY CERT-IN
• The test was conducted on May 18, 1974 under the
• Do not download and install applications from untrusted
supervision of Raja Ramanna, who was then the director of
sources like unknown websites and links on unscrupulous
India's premier nuclear research institute Bhabha Atomic
messages.
Research Centre (BARC).
• Install strong AI (artificial intelligence) powered mobile
antivirus. • The test was named 'Smiling Buddha' because it was
• Prior to downloading or installing apps (even from Google conducted on Buddha Purnima that year.
Playstore), always review the app details, number of • With this feat, India became the first country outside the
downloads, user reviews, comments and the 'additional
five permanent United Nations Security Council (UNSC)
information' section.
members to conduct the test.
• Avoid using unsecured, unknown Wi-Fi networks.
NOTE
NOTE
Computer Emergency Response Team of India (CERT-In),
• After the 1974 tests, nuclear test was conducted by India in
the national technology arm to combat cyber-attacks and May 1998 under codename 'Operation Shakti'. It was also
guard the Indian cyber space. It is under the Union Ministry called Pokhran II and was a series of 5 tests of nuclear
of Electronics and Information Technology. bombs.
• The National Technology Day is observed on 11 May
SMILING BUDDHA commemorating the nuclear tests conducted at Pokhran in

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

Security
EXERCISE PITCH BLACK ASIAN SECURITY

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

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

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

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

Security
• India’s tensions and rivalry with both Pakistan and China • Individuals who opted for ToD would get a much higher
are among the major drivers for its increased military salary than their peers on an average who started a career
spending. in the corporate sector and would also have an edge after
• The $71.1 billion spent by India on defence in 2019 was leaving the Service and going to the corporate sector.
2.4% of its Gross Domestic Product (GDP). India was at the • The proposal states that as per an initial survey,
fourth position in 2018 with Saudi Arabia at the third. corporates favour individuals who have been trained by
the military at 26 or 27 years of age after ToD.
• Global military spending in 2019 represented 2.2% of the
global GDP and this was an increase of 3.6% from 2018 • Analysing the cost of training incurred on each personnel
and the largest annual growth in spending since 2010. compared to the limited employment of the manpower for
• In Asia and Oceania, other than India and China, Japan and three years, the proposal calculates that it will indeed have
South Korea were the largest military spenders a positive benefit.
respectively. • The nation and the corporates are likely to benefit from a
trained, disciplined confident, diligent and committed men
IN CONTEXT TO INDIA
and women who have completed the ToD.
• Stating that India’s expenditure in 2019 was 6.8% more
• Reduce financial burden on Army and free funds for its
than that in 2018, the report says the country’s military
modernisation.
expenditure has risen significantly over the past few
decades. “It grew by 259% over the 30-year period of
1990–2019, and by 37% over the decade of 2010–19.
However, its military burden fell from 2.7% of GDP in 2010 ZERO FIR
to 2.4% in 2019.”
# Security
• While India’s defence spending excluding pensions, which
constitute a significant part, has been growing in absolute
terms, it has been going down as a percentage of its GDP
IN NEWS
as noted by the report. For instance, the defence allocation
in the latest budget for 2020-21 which was ₹3.37 lakh ‘Zero FIR' to help victim of out-of-jurisdiction crime.
crore, excluding defence pensions, accounts for about BACKGROUND
1.5% of the country’s GDP, the lowest in recent times.
The notion of Zero FIR was introduced by the
recommendation of the Justice J. S. Verma Committee in
the Criminal Law Amendment Act, 2013 after the ghastly
TOUR OF DUTY Delhi rape case. The 2012 Nirbhaya case led to several legal
consequences through the Criminal Law Amendment, one of
# Defence which was the concept of Zero FIR.
• A “Zero FIR” can be registered in any police station where

IN NEWS the information about a cognisable offence is registered,
irrespective of whether it has got territorial jurisdiction or
In a first of its kind proposal. the Army plans to take civilians
not, but such FIR shall not be numbered and then be
on a three- year ‘Tour of Duty’ (ToD) or ‘three-year short
forwarded to the police station with jurisdiction, where it
service’ on a trial basis to serve in the force as both officers
gets numbered and investigation commences.
and other ranks initially for a limited number of vacancies and
then expanded later. • There are Supreme Court verdicts, where this policy of law
has been reiterated in public interest like in State of AP Vs
SIGNIFICANCE
PunatiRamulu and others.
• The scheme would benefit those who did not want a full
career in the Army but still wanted to put on the uniform.

Security
• After the Nirbhaya incident, the Union Ministry of Home information about cognisable offence may invite
Affairs has issued umpteen numbers of guidelines to the prosecution of the police officer under section 166-A of
States for registration of Zero FIR. Indian Penal Code and it may also invite departmental
action against them.”
• The Karnataka High Court held that “The police officers
should be clearly informed that the failure to comply with NOTE: There is no explicit provision in the Code of Criminal
the direction of registration of FIR and receipt of Procedure to accommodate Zero FIR.
practice questions
MCQs
Q1. ‘Shekatkar Committee’ is sometimes mentioned (b) Institute for Economics and Peace
in news in reference to (c) Reporters Without Borders
(a) Employment (b) Environment (d) World Economic Forum
(c) Finance (d) Security
Q4. ‘Asian Security Conference’ is sometimes
Q2. Consider the following pairs: mentioned in news is organised by
1. Operation Cactus Seychelles (a) Indian Ocean Naval Syposium
2. Operation Neer Mauritius (b) Indian Ocean Rim Association
3. Operation Sanjeevani Maldives (c) Institute of Defence Studies and Analysis
Which of the pairs given above is/are correctly matched? (d) NITI Aayog
(a) 3 only
(b) 1 and 2 only Q5. Zero FIR was introduced by the recommendation
(c) 2 and 3 only of the
(d) 1, 2 and 3 (a) Justice A.P. Shah Committee
(b) Justice RanjanMisra Committee
Q3. ‘Global Terrorism Index’ is sometimes mentioned (c) Justice Ramaswamy Committee
in news is prepared by (d) Justice J.S. Verma Committee
(a) Amnesty International
Answers to above MCQs: 1 (d), 2 (a), 3(b), 4(c), 5 (d)

Part TWO
Ethics, Integrity
& Aptitude
Coverage from varied sources
Ethics, Integrity & Aptitude
ENVIRONMENTAL ETHICS
#Ethics #Environment
JUNE 5th IS THE WORLD ENVIRONMENT DAY
CONTEXT: One of the positives that emerged due to COVID-19 • The environmental Kuznets curve (EKC), shows the
lockdown across the world is improvement in environment relationship between economic progress and
across the world. Before the start of the COVID-19 pandemic, environmental degradation through time as an economy
the air around us deemed very toxic to breathe due to the progresses.
amount of greenhouse gases that had been emitted over the • It describes that as countries develop initially, pollution
centuries. The Earth faced rising temperatures, which in turn increases. But later, as the economy achieves further
led to the melting of glaciers and rising of sea levels. development, pollution decreases.
Environmental degradation was happening fast due to the
• Empirical studies show that usually environmental factors
depletion of resources such as air, water and soil. But after the
like water, air etc. shows this path for several countries.
coronavirus lockdown commenced, there have been changes in
Following diagram shows that relationship between
the environment.
economic development and level of economic
This clearly shows that Earth has the power to heal but greed degradation.
for more and more unlimited economic growth in a planet of
• The curve is known after economist Simon Kuznets who
limited resources is proving detrimental. Majorly, the world
made a well-known study about the relationship between
has yet to make sustainable development as its utmost
inequality and economic development.
priority. US, the largest economy in the world has withdrawn
from Paris Climate Agreement. • In that study also, the relationship between inequality
and economic development gives an inverted U shape;
showing an increase in inequality first with economic
POST-COVID WORLD: HAVE WE LEARNT OUR LESSONS TO development and then, inequality decreases with further
RESPECT THE ENVIRONMENT OR IS THIS CHANGE SHORT development and per capita income.
LIVED?
Question: Should we keep on polluting till all the countries in
ONGOING TUSSLE: ECONOMIC GROWTH VS. ECOLOGICAL the world achieve standardised development? Will it not be
SUSTAINABILITY too late for the planet and the entire existence?
CURRENT SCENARIO: In the initial days of the nationwide

lockdown, social and print media were flooded with
photographs of blue skies and clearer water bodies. Images
of peaks of lower Himalayas visible from rooftops in
Jalandhar gained traction on the internet. Several cities in
India recorded over 60 per cent drop in air pollution levels
but emergence from lockdown will lead to revival of
economic activities as fast as possible with chances of
overlooking environmental concerns.
Now public transport and industrial production as well as

infrastructure projects have already started in some parts —
reportedly with social distancing and personal hygiene
norms. Domestic flights, too, resumed on May 25.

STRENGTHENING ENVIRONMENTAL ETHICS
On the road towards a quick economic revival, however, ►QUESTIONS FOR OURSELVES
environmental concerns seem secondary. In the last few
1) Is it important for us to preserve nature for the future
months of lockdown, a large number of infrastructure
generation? If so, are we even making an effort to do
projects were stealthily given clearance. Some of these
that?
included the Etalin Hydro project in the Arunachal Pradesh’s
Dibang Valley, a highway project expected to cut through the 2) Is the human race alone important on the face of this
Mahavir Wildlife Sanctuary in Goa and the Central Vista earth? If not, then aren't our actions proving otherwise?
project in New Delhi. In all the cases, the recommendations 3) What would happen if animals, plants, and other species
and grants came through video conferencing without crucial are destroyed or there are more and more endangered
component of site inspection. species? Would we be affected or would we care?
In Telangana, the State Environmental Impact Assessment 4) Are our future generations entitled to a clean and green
Authority granted clearance to 55 projects in one sitting after environment? Do they even have a right?
the lockdown was partially lifted in the state. The Vizag-based 5) Is it right for us to be responsible for the extinction of
LG Polymers Pvt Ltd devastating gas leak is a classic example certain species only for the sake of our consumption
of lax environmental compliance with catastrophic and greed?
consequences.
6) Is it our moral right to keep on clearing rain forests for
the sake of human consumption?
The final blow was allowing open-access auctioning of coal 7) In spite of knowing that gasoline run vehicles lead to the
mines as a part of the fiscal stimulus to cushion economic destruction of natural resources, is it right for us to
shocks of COVID-19. Such quick clearances are bound to have continue manufacturing and using them?
a detrimental effect on the local air quality and larger flora
8) Are the guidelines which are drawn to protect the
and fauna of the area.
environment and nature effective? What is causing their
This shows that given priority is to continue with same failure?
model of voracious and unsustainable economic growth
9) Is there a need to reform the way in which we deal with
with least concern for the environment. More the
protection laws and clauses?
degradation of environment can bring more health hazards
and even emergence of new and frequentviral attacks and 10) What is environmental pollution and pollution of the air,
diseases. soil and water doing to the world?
COMMON VISIBLE PATTERN OF ENVIRONMENT ENVIRONMENTAL ETHICSis thus like the questioning post,
DEGRADATION it chooses to question the human race about certain key
factors that are associated with environmental issues. They
hope to make the human race aware that they are not the
only ones who inhabit the planet and that there are other
species as well that need to be looked after and taken into
consideration before mindlessly hogging the entire planet for
themselves.
THINGS TO UNDERSTAND
Definition of Environmental Ethics:It is the discipline that

studies the moral relationship of human beings to, and also
the value and moral status of, the environment and its
nonhuman contents.
Coincides with the definition of education: Rabindranath

Tagore gave a definition on ‘Education’ which coincided with

Environmental ethics. The definition is:“The highest education human beings only have an instrumental value; they are
is that which does not merely give us information but makes our meant to serve as 'instruments' for human beings.
life in harmony with all existence”. • From an anthropocentric point of view (which lays
Elaboration: The definition of environmental ethics rests on emphasis on human beings), the use of other living
the principle that there is an ethical relationship between elements in nature by humans is only right. Causing them
human beings and the natural environment. Human harm or destroying them is wrong only because it
beings are a part of the environment and so are the other eventually affects human life.
living beings. • With this view, cruelty to animals is wrong because it
When we talk about the philosophical principle that guides develops insensitivity, and not because animals should
our life, we often ignore the fact that even plants and animals not be harmed. Or the felling of trees is wrong because it
are a part of our lives. They are an integral part of the eventually causes loss of food sources for humans, and
environment and hence cannot be denied their right to live. not because it is simply unethical.
Since they are an inseparable part of nature and closely Second: Intrinsic Value
associated with our living, the guiding principles of our life “Eco-centrism”
and our ethical values should include them. They need to be
• A key figure in modern environmental ethics was Aldo
considered as entities with the right to co-exist with human
Leopold, an American author, scientist, environmentalist,
beings.
ecologist, forester, and conservationist, who focused on
Eco-centrism.
EMERGENCE OF ENVIRONMENTAL ETHICS • Eco-centrism deems the whole ecosystem as important as
• The Earth Day celebration of 1970 was one of the factors opposed to anthropocentrism that believes humans to be
which led to the development of environmental ethics as a the most important in the universe.
separate field of study. • According to eco-centrism, there are no existential
• This field received impetus when it was first discussed in differences between the human and non-human entities
the academic journals in North America and Canada. in nature, which means humans are not more valuable
Scientists like Rachel Carson and environmentalists who than any other component of the environment. Humans
led philosophers to consider the philosophical aspect of as well as plants, animals, and other constituents of
environmental problems, pioneered in the development of nature have an inherent value.
environmental ethics as a branch of environmental • Theologian and environmental philosopher Holmes
philosophy. Rolston III says that protection of species is our moral
• Today, environmental ethics is a widely discussed topic. It responsibility as they have an intrinsic value. In his view,
covers aspects such as ethical principles that guide our use the loss of a species spells disrespect to nature's process
of natural resources, our duty to take efforts towards of speciation. According to him, biological processes
environmental protection, and our moral responsibility deserve respect. Thus, any action that translates into
towards animals. disregard for the environment is unethical.
Prevalence of (Twin) THOUGHT PROCESSES • The concept of plant rights is worth discussing in this
First: Instrumental Value context. Philosopher Paul Taylor is of the view that plants
have intrinsic value and that they are entitled to respect
“Anthropocentric point of view”
but not rights. In his 1972 paper "Should Trees Have
• An important point that the field of environmental ethics Standing?", Christopher D. Stone said that if corporations
is concerned with, is whether non-human beings only can be assigned rights, so should trees.
have an instrumental value or whether they also have an
Emerging concept: The emerging concept of environmental
intrinsic value. Aristotle said that "nature has made all
ethics brings out the fact that all the life forms on Earth have
things specifically for the sake of man", which means non-

the right to live. By destroying nature, we are denying the life

forms this right. This act is unjust and unethical. Poor solid waste management, plastics and polythene pile
ups, clogging of drains and water bodies, impacting even
The food web clearly indicates that human beings, plants,
remote oceanic islands.
animals, and other natural resources are closely linked with
each other. All of us are creations of nature and we depend Harm to Animals: Due to habitat loss, animals may enter
on one another and the environment. human settlements, thus posing a threat to the people living
there. In some cases, these animals are killed. Secondly,
Respecting the existence of not just other humans but
animals serve as food sources of humans, for which they are
also the non-human entities, and recognizing their right
killed. Also, animal studies cause harm to animals and even
to live is our primary duty. With environmental ethics,
their deaths. This destruction has led to the extinction of
morality extends to the non-human world.
many animal species. The reduction in the populations of
several other animal species continues.
ACTIONS CONTRADICTORY TO ENVIRONMENTAL ETHICS How can we deny the animals their right to live? How are we
Voracious consumption of Natural Resources: Our natural right in depriving them of their habitat and food? Who gave
environment is not a storehouse to rob resources from. It is a us the right to harm them for our convenience? These are
reserve of resources that are crucial to the existence of life. some of the ethical environmental issues that need to be
Their unscrupulous depletion is detrimental to our well- addressed.
being. We are cutting down forests for making our homes.
Our excessive consumption of natural resources continues.
APPLICATION OF ENVIRONMENTAL ETHICS
The undue use of resources is resulting in their depletion,
risking the life of our future generations. Is this ethical? This In these uncertain times, we need to look ahead and work
is an environmental ethics issue. towards creating a better world. Emissions reductions are
urgently needed, but while a pandemic and the resultant
Destruction of Forests:When industrial processes lead to
global shutdown have shown a drastic way that this can be
destruction of resources, is it not the industry's responsibility
achieved, it is not a sustainable path nor what anyone would
to restore the depleted resources? Moreover, can a restored
ever wish to have happened. But how do we move forward?
environment make up for the original one?
That is the question for society to address in the coming
Mining processes disrupt the ecological balance in certain weeks and months. In this regard, the ThreeTHINGS THAT
areas. They harm the plant and animal life in those regions. WILL DETERMINE HOW WE AS A SOCIETY CAN BRING A
Slash-and-burn techniques are used for clearing land, that POSITIVE CHANGE are given below:-
leads to the destruction of forests and woodland. The land is First: Internal Consciousness
used for agriculture, but is the loss of so many trees
For that, there is no better place to look than our glorious
compensated for?
past. Respect for nature is at the core of India’s traditions.
Environmental degradation:Many human activities lead to The Atharvaveda contains the Prithvi Sukta, which contains
environmental pollution. The rising human population is unparalleled knowledge about nature and the environment.
increasing the demand for nature's resources. As the It is beautifully written in Atharvaveda: Salutations to Mother
population is exceeding the carrying capacity of our planet, Earth. In Her is woven together Ocean and River Waters; in
animal and plant habitats are being destroyed to make space Her is contained Food which She manifests when ploughed;
for human habitation. Huge constructions (roads and In Her indeed is alive all Lives; May She bestow us with that
buildings for residential and industrial use) are being made at Life.
the cost of the environment. To allow space for these
The ancients write about the Panch Tatvas – Prithvi (Earth),
constructions, so many trees have to lose their lives. The
Vayu (Air), Jal (Water), Agni (Fire), Akash (Sky) – and how our
animals that thrive in them lose their natural habitats and
life systems are based on the harmonious functioning of
eventually their lives. However, the cutting down of trees is
these elements. The elements of nature are manifestations of
seldom even considered as loss of lives. Isn't this
divinity. Mahatma Gandhi wrote extensively on the
unethical?

environment and even practised a lifestyle where 9) Choose natural cleaning products and lead-free paints.
compassion towards the environment was essential. He 10) Use pesticides and fertilisers more efficiently and
propounded the Doctrine of Trusteeship, which places the choose natural alternatives.
onus on us, the present generation, to ensure that our
11) Use clean technologies to light and power home
coming generations inherit a clean planet. He called for
sustainable consumption so that the world does not face a 12) Collect and use rain water.
resource crunch. Finally, take a pledge to teach a younger person to
Leading lifestyles that are harmonious and sustainable are a protect the environment
part of our ethos. Once we realise how we are flag bearers of There's an old saying: "If you give someone a fish, he can eat
a rich tradition, it will automatically have a positive impact on for a day. If you teach someone to fish, he can eat for a
our actions. lifetime." The same is true when it comes to protecting the
planet — we need to ensure that future generations are given
the tools to sustain themselves. Share the good information
Second: Need for public awareness
you get at work or school with a younger person. Invite
The second aspect is public awareness. We need to talk, experts to speak at your church or community groups. And
write, debate, discuss and deliberate as much as possible on don't forget to teach by example.
questions relating to the environment. At the same time, it is
vital to encourage research and innovation on subjects
relating to the environment. This is when more people will ►COMMUNITY ACTIONS
know about the pressing challenges of our times and ways to # REVIVING THE SPIRIT OF ‘CHIPKO MOVEMENT’
mitigate them.
The movement's biggest triumph was opening the eyes of
When we as a society are aware of our strong links with people to their rights to forests, and how grass roots activism
environmental conservation and talk about it regularly, we can influence policy-making regarding shared natural
will automatically be proactive in working towards a resources.
sustainable environment.
In 1973, villagers in Uttar Pradesh’s Chamoli district (now
Uttarakhand) took to hugging trees to prevent their felling at
Third: pro-activeness in actions the hands of contractors and to protect trees from the
deforestation that accompanied rapid industrialisation in the
► INDIVIDUAL ACTIONS
years following independence.
# BECOME BEAT POLLUTION GURU
The word 'chipko', which means to hug, soon became the
Which of these actions are you willing to take? name of the eponymous movement, and the catchphrase for
environmentalists the world over. However, the practice of
1) Never throw rubbish, chemicals or solvents in drains embracing trees, both literally and figuratively, predate the
and sewers. Chipko movement. The Bishnoi community in Rajasthan were
2) Stop using disposable shopping bags and other single- the pioneers in protecting forest resources.
use plastic The first Chipko movement in independent India took place in
3) Never burn waste and minimise burning of wood. April 1973 in the upper Alakananda valley, where the
government of Uttar Pradesh had allotted a plot of land
4) Let my electronics be used longer, then dispose of them
inside forest territory to a manufacturer of sports goods.
responsibly.
With aid from a non-governmental organisation, DGSS (Dasoli
5) Compost and recycle Gram Swarajya Sangh), the women of the village united under
6) Use public transport, carpool, cycle or walk. Chanda Prasad Bhatt and adopted the strategy of hugging
7) Eat less meat and more organic and unpackaged foods. trees to protect them from the men contracted to clear the
forest. By putting their bodies on the line, many trees were
8) Refuse to buy cosmetics with microbeads.
saved by the heroics of the women who formed human

chains around them. They ensured that the forest would in influencing natural resource policy. Other notable green
remain inviolable unless the men resorted to bloodletting. warriors include Sunderlal Bahuguna, a Gandhian activist and
Since the leaders and proponents of the Chipko movement philosopher, who was instrumental in garnering the support
were mainly rural women, it came to be identified with eco- of Indira Gandhi, then Prime Minister of India, in enacting a
feminism. law to ban the felling of trees in ecologically sensitive forest
This instance of successful grassroots activism soon spilled lands. He also coined the Chipko slogan: 'ecology is
over into other parts of the country, and became a means of permanent economy'.
►GLOBAL COLLECTIVE ACTION: Paris Climate Talks
To achieve the Paris climate goals, the private sector and sub- States and regional governments have committed to
national governments need to fill the void left by unambitious decarbonizing at a rate of 6.2% a year to 2050, a rate that is
national government efforts. A new report by the Climate roughly 3% faster than G20 governments. In recognition of
Group and CDP (previously known as the Carbon Disclosure the multifaceted nature of climate change and the limits of
Project), in cooperation with PricewaterhouseCoopers, shows mitigation, 40% of the 120 sub-national governments
that state and regional governments have committed to surveyed report action to both mitigate and adapt to climate
emissions reductions that are far more ambitious than change.
national governments. Corporate response to climate change, though growing, is
incomplete. Although most companies in high-emitting
sectors have taken steps to explicitly recognize climate

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

CASE STUDIES for Practice

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

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

Part Three
Essays
of
the month
Selected essays from Rau’s GSI students
ESSAY 1: SOMETIMES IT TAKES A NATURAL
DISASTER TO REVEAL A SOCIAL DISASTER
# Society
SUBMITTED BY: LOKESH SHARMA (RAU’S DELHI STUDENT)
Disclaimer: The viewpoints in the topic are

strictly personal of the writer above. The
role of Rau’s IAS Study Circle is to present
the write-up in its original form, hence the
study circle neither endorses nor rejects any
viewpoint in the submission. The purpose is only to
showcase the manner of writing.
Therefore, it is the sole responsibility of the reader to use
his/her intellect to check the veracity of viewpoints.
Further, this social disaster affects various sectors of the
Disaster is a phenomenon which leads to a large scale society in varying degrees. The most vulnerable to the
destruction of life and property. It has a huge impact on the adverse impacts of the social disaster are:
social and economic factors of the country. For instance, the
1. Workers in the informal sector
super-cyclone “Amphan” in West Bengal caused havoc and
lead to destruction of thousands of crores. Apart from 2. Women
physiographical disaster such as earthquakes, cyclones or 3. Farmers
heat waves, biological disaster such as viral pandemics have
also emerged as a threat to human existence. Impact on the Workers
The world has witnessed global pandemics such as the The workers, especially those working in the informal sector
Spanish influence in 1918 or the SARS in 2004. Recently, a find themselves on the receiving end wherever any disaster
new pandemic named Covid-19 (SARS – Cov2) has brought hits the country. Their vulnerability was exposed in the recent
the entire world to a standstill. It is believed to have emerged Covid-19 pandemic. Nor did they only lose their jobs but also
in the Wuhan Province of China and then spread across the found themselves without any means of survival post the
globe. This has led to the entire world to come in a lockdown, lockdown. In the absence of any government help, they were
halting all the economic activities worldwide. This has further forced to walk-back to their home states. This has led to
lead to widespread unemployment. Thus, this natural deaths of some workers.
disaster has revealed a social disaster which the world is Moreover, workers in the informal economy have to fight at
staring at. two fronts whenever any disaster hits them; first, as they are
A social disaster can be defined as a situation in which the bread-earners of the house they have to work
majority of the masses find themselves devoid of any work irrespective of the dangerous conditions prevailing outside.
i.e. unemployment, which further leads to poverty, poor and This need to earn exposes them more to the disaster, in this
sub-standard living. The following figure describes social case the Corona – Viruses. On the other end people
disaster: employed in the formal sector have the facility of work-from-
home. This reduces their exposure to such deadly viruses.
Moreover, people in informal sector are not covered under

Essays OF THE MONTH
any social security measures, hence increasing their taken a back-seat and capitalism has been placed in the
vulnerability. All these factors push these workers into a driver’s seat.
perpetual cycle of poverty.
Thus, it has become the need of the hour to re-design our
Impact on Women policies and construct our framework so that the difficulties
of the vulnerable section are addressed.
The role of the women in the 21st century has changed
drastically. Today, women have to fight at two fronts; first In pursuit to achieve this, the first step can be to have a
they have to manage the household tasks and second they bottom-up approach of governance. Such an approach shall
also have to manage their jobs. This increased responsibility frame policies by focusing on the needs of vulnerable section
have made them more vulnerable to the impacts of disaster. rather than addressing the aspirations of the capitalist class.
This is because it is the women who face the threat of NITI AAYOG’s Aspirational District Programme is an example
unemployment the most. Further, in case of poor living in this direction. Second, there is a dire need to ramp up
conditions it is always the women who goes to bed with a primary and secondary health and wellness centers and
hungry stomach. This further leads to conditions such as increase their penetration in the remote areas. Further, it has
anaemia or under nourishment. to be ensured that quality medicines are available at
affordable costs.
Further, domestic violence is another impact of a disaster as
was evident during the recent Covid-19 pandemic. Due to the Moreover, India needs to increase its expenditure on health
imposed lockdown the cases of domestic violence reached its to atleast 2.5% of GDP. All these measures will ensure a
peak during this period as highlighted by an international healthy population and thereby enable India to reap the
study. maximum benefit of its demographic dividend.
Impact on Farmers Third step in this direction is to bring the informal workforce
under some social security scheme. According to the
Agriculture is dependent on nature and any calamity by the
Economic Survey 2018-19, almost 90% of the workforce is
nature has adverse impact on the agriculture and thereby on
employed in the informal sector.
the farming community. In 2019, heavy rainfall caused floods
in Maharashtra. These floods washed away all the Kharif Fourth, India needs to provide employment to its vast
crops thus causing a huge loss to the farmers. The impact workforce. Currently, unemployment in India stands at 6.1%,
was so severe that the farmers could not even get back the which is at a 45 year high. The solution to this issue is setting
principal amount that they had invested, leave aside the up of more labour-intensive industries and simultaneously
profits. codification of the labour laws.
Such losses push the farming community into a vicious cycle Fifth, there is a dire need for India to diversify its agricultural
of poverty which often ends with the farmers committing basket. Such diversification will have a dual benefit; first it will
suicide. Furthermore, the lack of penetration of institutional rectify the skewed cropping pattern and thereby ensure
sources of credit in some rural areas make the farmers income to the farmers and second it will give a boost to the
vulnerable to the local money lenders. This vulnerability leads nutritional intake. Also boost must be given to the Model
to instances such as forced labour which are still prevalent in Agricultural producer and Livestock Marketing Act to help
certain remote areas of India. farmers better realize the value of their products.
All these issues have bought into light the idea of welfare All these above measures will surely aid in minimizing the gap
state that the Constitution of India states. 70 years post- between the haves and the have nots. Further, it shall
independence some sections of the population find decrease the vulnerabilities of the lower sections of the
themselves the most vulnerable whereas some enjoy the society thereby giving an impetus to the idea of welfarism.
perks of being born into a high class society. The policies and
approaches have widened the gap between the haves and
the have nots. Further, it seems that the idea of socialism has

Essays OF THE MONTH
ESSAY 2: THE HIGHEST EDUCATION IS THAT

WHICH DOES NOT MERELY GIVE US
INFORMATION BUT MAKES OUR LIFE IN
HARMONY WITH EXISTENCE
# Social Issue
SUBMITTED BY: VISIYA NIRALI J. (RAU’S DELHI STUDENT)
Disclaimer:The viewpoints in the topic are strictly personal But today if someone having a good job, he is considered as
of the writer above. The role of Rau’s IAS Study Circle is to highly educated. We generally see parents telling their
present the write-up in its original form, hence the study children to study hard so that they could get a good job and
circle neither endorses nor rejects any viewpoint in the could earn money. They see education as means of getting
submission. The purpose is only to showcase the manner of job, earning money and getting status symbol in society. Are
we limiting our ideas about education to these things only? Is
writing.
our education becoming purely materialistic?
Therefore, it is the sole responsibility of the reader to use
Education has been the core foundation of our rich culture
his/her intellect to check the veracity of viewpoints.
and heritage for many centuries. It is a process of holistic
development of child. Due to lack of this holistic and value
Our world today may be described as an age of added education, despite having informative and high
confusions and tensions, both within and education, there is no stopping of personal social, political,
outside us. A beautiful life is one that is ‘in economical, national and global problems.
harmony’ with all the situations in life. It can be said that Even in past, these problems prevailed. Despite of awareness,
“Harmony is a precious treasure of human life.’ Real success, higher education, scientific innovation, Industrial revolutions
satisfaction and happiness are different facets of harmony. If across globe, world has seen World War I, World War II,
one wants to enjoy the benefits of life to the fullest, it is nuclear attack, race for emerging as global power, etc. Also
necessary to develop and maintain harmony. In this context, many part of globe were victims of colonization which led to
Rabindranath Tagore’s philosophy of education is very exploitation of wealth and resources.
relevant according to which ‘True education is in harmony
Today also world is witnessing lack of harmony. In society,
with all existence.’
people fight with each other in name of religion. Minorities
In order to maintain harmony, education is a must tool which get ignored. Women, Children, poor, differently abled, senior
can help in moulding and shaping the human mind, body and citizens have to suffer a lot. Also there is lack of compassion
character in such a manner that they may act as the means to towards other living beings like plants and animals which
achieve joy and efficiency according to Gandhian perspective. shows that there is no natural harmony. People are using
Mahatma Gandhi said that education can play the vital role in natural resources recklessly which is creating problem of
establishment of peace not only at the national level but also global warming and depletion of non-renewable natural
at the international level. resources. Also there is a lack of social and political harmony
which become a big obstacle in way of nation’s development.

Essays OF THE MONTH
One of the solution of these all problems is education which love, happiness, generosity, empathy, truthfulness,
is a must condition to make our life in harmony with all brotherhood and compassion towards others. These should
existence by developing scientific temper, humanism. be the main aim of educational institutions, rather than
Because greatly affected victims of these problems are manufacturing degrees to students.
children. Their childhood and value added development With education, there should also be different curriculums
seems to have been disappeared. They are living in stress, which include intellectual development, natural harmony, self
trauma and feelings of intolerance and there are many realization, place for the arts, moral and spiritual
incidents noticed of firing and attacking by children and development along with social development which help
teenagers. children to learn practical and realistic approach towards
There is a need of introduction of value added education their life and all other existence which makes them able to
system which include thoughts of Buddha, Mahavir and grow as responsible and happy adults. Then only saying of
ideology of Gandhi and Swami Vivekananda. Schools and Rabindranath Tagore will become noteworthy and there will
colleges should introduce moral and ethical education which be a new and peaceful future world.
inculcate different values in students like honesty, integrity,
ESSAY 3: NEARLY ALL MEN CAN STAND

ADVERSITY, BUT IF YOU WANT TO TEST A
MAN’S CHARACTER GIVE HIM POWER
# Ethics
Disclaimer:The viewpoints in the topic are ‘Adversity’ is a state or substance of serious or continued
strictly personal of the writer above. The role difficulty or misfortune. It might be a debilitating injury or
of Rau’s IAS Study Circle is to present the illness, or an abusive relationship or crushing poverty.
write-up in its original form, hence the study Every person face adversity in life but some use adversity for
circle neither endorses nor rejects any viewpoint in the learning lessons and transforming it into opportunity. It tests
submission. The purpose is only to showcase the manner of ones character. When someone face adversity, most pressing
writing. need is survival and nearly all can stand adversity.’
Therefore, it is the sole responsibility of the reader to use It is better to give power to someone to taste the character.
his/her intellect to check the veracity of viewpoints. Mahatma Gandhi and Adolf Hitler faced adversities and rose
differently in their respective countries. Gandhi chose the
“Power tend to corrupt, path of non-violence, on the other hand Hitler is hated as an
embodiment of evil responsible for genocide of millions of
Absolute power corrupts absolutely.”
Jews.
- Lord Acton

Essays OF THE MONTH
Adversity and misfortune makes us more mature, humble in Mughal Emperor “Akbar” despite having enormous power
life. The goal here is survival, whether a person is in injury, used it for welfare of his subjects and maintains religions
prison or living in poverty. On the other hand, ‘power’ as tolerance. Another example could be of “Gautam Buddha”
seducing as might seem, has succeeded in changing the who was born in a royal family having all comforts, but he
behaviour of many people. It make a person the centre of abandoned it for the search of truth. He had so many
attraction where everyone asks for favours, this makes a followers, but he never deviated and focused on finding the
person not only corrupt but also uppish and big-handed. So, cause of sorrow in the world and advocated enlightenment.
“power is referred as character tester.” Fall of “Godman” in Also in present time we have officers like “U Sagyam IAS,” son
recent pasts shows how money, influence and power turned of a farmer who was first IAS to upload asset details on
them criminals. India’s biggest corporate scam, ‘ Satyam’ district website. As a great civil servant of character, he slept
showed how ‘Ramalinga Raju’, founder of Satyam computers in a graveyard to guard important evidence in a multi-crore
indulged into the corrupt practices. quarrying scam of Madurai.
Power can also be misused for killing animals, spoiling Many people use power to advance their own agenda and
biodiversity and environment. Example – When Eskimos were fulfill their own selfish ends. So, it’s their power which reveals
given guns by Americans, they hunted animals and spoiled their character not the adversity. So, question arises – how to
the environment and resources in the ecosystem. Today, man build such sound characters? People with sound characters
with the help of technology has immense control over nature. are assets to society. Such characters are developed through
However, human greed is responsible for making life on moral upbringing. Gandhiji observed - “Literacy education is
earth unsustainable by causing global warming, climate of no value, if it is not able to build up a sound character”.
change, pollution, shortage of portable water, etc. This character building is possible by setting up examples by
teachers, political leaders, bureaucrats, journalists, scientists,
Unlike adversity with only few options, power offers many
spiritual leaders etc. Rewarding such people will create
options to survive. Those having power have choices. The
positive influence on others.
more power one has, greater options are available. Power
may come along with large amount of money, a position of Only a man of strong character uses power for wider social
authority, or physical strength, freedom to choose options. aims. “Nothing discloses real character like the use of power.
Example – A powerful person can choose to be the ally of It is easy for the weak to be gentle. Most people can bear
other person or, make decisions that help others or hurt adversity. But if you wish to know what a man really is, give
others. But people with unshakable character are also there him power. This is the Supreme test.”
who held power for common good. “People with good
intentions make promises, while people with good character
keep them.”
ESSAY 4: SIMULTANEOUS ELECTIONS: CAN THIS

BE A FEASIBLE OPTION FOR INDIA?
# Governance
The call for holding simultaneous elections simultaneous elections to Lok Sabha and State Assemblies to
have grown recently and the incumbent utilise maximum time for governance which is otherwise lost
government has advocated holding due to political campaigns and rallies.

Essays OF THE MONTH
India got independence on 15th August, 1947, adopted its and now we are witnessing coalition government in various
Constitution on 26th January, 1950 and held its first general states. Compulsion of coalition politics have often resulted in
election between October 1951 and March 1952 under the premature dissolution of both Central and respective state
guidance of Sukumar Sen who was the first Chief Election governments. This has led to different election years for
Commissioner of India. It was a stupendous and colossal task different states. On this note, let us understand the merits
of gigantic proportion to conduct election for around 4500 and demerits of conducting simultaneous elections of such
seats including the Parliament and State Assemblies for the gargantuan level in a culturally and topographically diverse
first time in India. This process of simultaneous elections country.
continued till the year 1967. One thing to remember here is
Possible Merits: Simultaneous elections to Lok Sabha and all
that Congress governed both at the Centre and in majority of
State Assemblies will provide continuity, consistency and
the states and it became easy to conduct such simultaneous
stability in governance throughout the country. The entire
elections till Congress enjoyed stupendous majority.
country after the completion of election process can focus on
However, with time, clout of Congress as a political party
governance for an uninterrupted period of five years. It will
reduced giving rise to political instability both at the centre
reduce the massive expenditure done during elections
and in the states. This instability and rising local demands
throughout the year. Every year some states witness
also led to the emergence of many regional parties across
assembly elections and even the political party in power at
India. This led to instability of many state governments and
the Union gets involved during the election process. This
slowly this process of simultaneous elections came to a pause
diverts much of Central Government’s time from important
due to the constitutional need of having a majority in the
national and domestic concerns and it consumes energy and
state assemblies. Even Lok Sabha got prematurely dissolved
resources to ensure victory in such state assemblies.
in 1970 and this disrupted the chain of holding simultaneous
Elections in states lead to the imposition of Model Code of
elections completely.
Conduct which effectively restricts introduction of new
On this, let us now understand the feasibility of conducting development programmes and schemes in the state.
simultaneous polls in present times where multi-party Irregular elections at different time of the year affect
democracy, centre-state relations and use of technology productivity and have an adverse impact on the economy of
through social media have assumed greater importance as the nation as a whole.
compared to our distant past.
If all elections to state assemblies and Lok Sabha are held at
The Constitution of India establishes a two-tier government one time, it will give a stable five-year term to the political
system with the Union Government at the Centre and parties in power to focus towards implementing their political
respective State governments at the provinces. The manifestos and government schemes. This will prove
Constitution has demarcated each level of government by beneficial both for the government and the public. Finally,
devising an elaborate scheme of distribution of legislative, simultaneous election would reduce the type of manpower
administrative and financial powers between the Centre and and resource deployment necessary for the conduct of
the States. In this respect, Article 246 of the Constitution elections. This will also help in controlling corruption to a
clearly enumerates the Federal character of the Indian large extent as use of unaccounted money through illegal
Constitution. It empowers Parliament to make law under sources such as hawala is very common. Even though
Union List, States to make law under State List and both the Election Commission with the help of other administrative
Parliament and States to make law under Concurrent List. and regulatory bodies keeps a tight vigil, yet to do so
Thus, the Constitution through its Articles has created a continuously through the year becomes burdensome. It also
separate existence for the state government independent deviates much of the resources and manpower into such
from the existence of the Centre. Thus, elections are regulations which in general course of event can be utilised
conducted every five years in different states as per their for their regular work.
constitutional existence. Over the period of years, stability of
Demerits: India has a federal structure and a multi-party
the various governments at state level has been lost.
democracy where elections are held for State Assemblies and
Coalition politics have emerged slowly over a period of years
the Lok Sabha separately. The voters are better placed to

Essays OF THE MONTH
express their voting choices keeping in mind the two different elections six months prior to the end of the terms of Lok
governments which they would be electing by exercising their Sabha and state assemblies. The Committee recommended
franchise. This distinction gets blurred somewhat when that elections could be held in two phases. It stated that
voters are made to vote for electing two types of elections to some Legislative Assemblies could be held
government at the same time, at the same polling booth, during the midterm of Lok Sabha. Elections to the
and on the same day. When state assembly elections will be remaining legislative assemblies could be held with the
held along with Lok Sabha, then the local issues concerning end of term of Lok Sabha.
the state may get swept by emotive issues of national
The NITI Aayog in its Three Year’s Action Agenda has
importance. Voters in such a scenario in the past have always
suggested that all elections in India should happen in a free,
went for the same party whenever simultaneous elections
fair and synchronised manner so as to cause minimum
were held. Assembly elections are fought on local state issues
campaign mode disruption to governance. In this direction,
and, in the true spirit of federalism, parties and leaders are
NITI Aayog has suggested to move towards switching to a
judged in the context of their work done in the state.
synchronised two-phase election to the Lok Sabha. This
Clubbing them with the general election could lead to a would require a maximum one-time curtailment or extension
situation where the national narrative submerges the of some state assemblies. To implement this in the national
regional problems and issues. In case of simultaneous polls, interest, a focused group of stakeholders comprising
bigger political parties who are better funded have constitution and subject matter experts, think tanks,
advantage over smaller regional parties. Even the government officials and representatives of various political
corporates would favour a uniform government parties should be formed to work out appropriate
throughout India for their benefit hence could pour their implementation related details. This may include drafting
entire fund in one or two strong national political parties. This appropriate constitution and statutory amendments,
may act as a huge disadvantage for the smaller political agreeing on a workable framework to facilitate transition to
parties thereby distorting the very idea of federalism in India. simultaneous elections, developing a stakeholder
There are other situations which may arise and cannot be communication plan and various operational details.
pre-empted currently due to lack of practical experience. One
Any proposal to strengthen the roots of democracy is always
such instance that can happen is that due to constitutional
a welcome step and all stakeholders must be willing and
failure in a state, the state assembly has to be dissolved.
accommodative to explore options for the same. In this
Then, will the state be allowed to carry on or President’s rule
respect, the proposal to introduce simultaneous elections in
under Article 356 will be imposed? Similarly, if Union
India both to Lok Sabha and State Assemblies is a bold
government dissolves prematurely due to coalition politics
reform and must be carried forward with the consensus of all
or passing of no-confidence motion or some other reasons,
state assemblies. Simultaneous elections if at all possible
then will this amount to dissolution of all state
should be complied within the constitutional constraints and
governments? Thus these are certain practical constraints in
without disturbing the federal structure of India as it is also a
having simultaneous elections. There will be other practical
Basic Structure of the Indian Constitution. However, if any
difficulties in terms of logistics and movement of personnels
state is unwilling to come to the terms of simultaneous
involved in the election process.
elections then, the Central Government shall patiently listen
Recommendations of various Reports: Law Commission of to their concerns. If the concerns are genuine, then effective
India has suggested that election of Legislation Assemblies steps and alternatives must be suggested so as to bring all
where term is ending six months after the General election to stakeholders at one common platform.
Lok Sabha can be clubbed with it but election result can be
declared at the end of their tenure. This can be possible with
the cooperation of political parties.
The Standing Committee on Personnel, Public Grievances,

Law and Justice noted that the Representation of People Act,
1951 permits the Election Commission to notify general

Rau's Focus June2020 PDF

Uploaded by

Copyright:

Available Formats

Rau's Focus June2020 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Rau's Focus June2020 PDF

Uploaded by

Copyright:

Available Formats

editorial

LET'S PLEDGE ON WORLD ENVIRONMENT DAY

CAUVERY WATER MANAGEMENT AUTHORITY

02 PREVENTION OF CORRUPTION ACT

INTERNATIONAL RELATIONS PM-CARES FUND

AFGHANISTAN PEACE DEAL

PRACTICE QUESTIONS 13 BAD BANK-PROS AND CONS

DOLLAR SWAP LINE

CONSTITUTION, POLITY AND GOVERNANCE SOCIAL STOCK EXCHANGES

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

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

BOOSTING R&D ECOSYSTEM IN INDIA

#Govt Policies 84 LUHMAN 16

#Govt Policies 85 STYRENE GAS LEAK

#Chemistry #Disaster 100

#Govt Policies 86 INTERNATIONAL DAY OF LIGHT

#Govt Policies #Technology 86 NATIONAL TECHNOLOGY DAY

#Govt Policies #Technology 86 AFRICAN SWINE FEVER

#International Institutions 87 RAPID TESTS

# External Sector 87 WAY TO FIGHT ALZHEIMER’S DISEASE

# External Sector 88 TROGLOMYCES TWITTERI

# Public Finance 89 PRACTICE QUESTIONS 104

ENERGY TRANSITION INDEX (ETI)

GEOGRAPHY, ENVIRONMENT, BIODIVERSITY & LAKSHMI NARASIMHA TEMPLE 123

CLIMATE CHANGE: IMPACT ON HYDROSPHERE PURANA QILA 124

# Climate Change 109 KHAIR-UL-MANAZIL MOSQUE 125

HEAT WAVES SHER SHAH GATE 125

DIRECT SEEDING OF RICE

BRIHADEESWARAR TEMPLE 121 DEFENCE TESTING INFRASTRUCTURE SCHEME

VEERABHADRASWAMY TEMPLE, MOTUPALLI 121 # Defence 130

KONARK SUN TEMPLE 121 MP-IDSA

EXERCISE PITCH BLACK

ASIAN SECURITY CONFERENCE Part Three

ESSAY 2: THE HIGHEST EDUCATION IS THAT WHICH DOES NOT

136 # Ethics 150

ESSAY 4: SIMULTANEOUS ELECTIONS: CAN THIS BE A FEASIBLE

FOCUS| JUNE 2020 | RAU’S IAS 2

12th BRICS SUMMIT in 2010.

FOCUS| JUNE 2020 | RAU’S IAS 3

BELT AND ROAD

ABOUT THE PROJECT

FOCUS| JUNE 2020 | RAU’S IAS 4

connectivity and cooperation among multiple countries Central Asia.

impacts on countries involved.

FOCUS| JUNE 2020 | RAU’S IAS 5

• To gain access to natural resources

• To strengthen transport infrastructure in the BRI corridors

• To deepen cultural exchanges in the region.

2. Investment decisions often seem to be driven by

• To enhance financial co-operation in the region to fund

FOCUS| JUNE 2020 | RAU’S IAS 6

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

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

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

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

FOCUS| JUNE 2020 | RAU’S IAS 7

Afghanistan. • India’s ability to mentor a nascent democracy will go a long

process. major power, especially a responsible one.

contributed to absence of invitation. Pakistani influence in the region.