Posts

IASbaba's Daily Prelims Quiz : Day 7

  Click here to get all the Quiz @ one place ->    ARCHIVES     Q.1) Recently elections to upper house of parliament were in news. Consider the following statements with respect to Rajyasabha. The fourth Schedule of the constitution deals with the allocation of seats in the RajyaSabha to the states and union territories. The representatives of states in the Rajyasabha are elected by the elected members of state legislative assembly’s and municipalities. The president nominates 15 members to the RajyaSabha from the people who have special knowledge in the field of art, literature, science etc. Elections to the members of Rajya Sabha are held by proportional representation by means of List system. Select the incorrect option a) 1 and 2 only b) 2, 3, and 4 only c) 1, 3, and 4 only d) 1, 2 and 4 only Q.2) Recently “Superbugs” are in news. Consider the following statements with respect to Super bugs. A Superbug is also referred to as an Antibiotic resistant organism. Smartphone’s, ATM’s, Door handles etc are some of the common places were superbugs are found. Recently a group of scientists have proposed a transparent coating for everyday items as potential solution to protect against Superbugs. Select the correct option. a) 1, 2 and 3. b) 2 and 3 only c) 2 only d) 1 and 2 only Q.3) Recently India ratified Trade Facilitation Agreement of WTO. Consider the following statements with respect to Trade Facilitation Agreement (TFA). TFA will bring simplification and enhanced transparency in cross border trade in goods. TFA was concluded in recent WTO’s 2015 Nairobi ministerial conference. Select the correct option a) 1 only b) 2 only c) Both d) None Q.4) Recently the Participatory notes investment climbed new heights. Consider the following statements with respect to P-notes. P – Notes also known as Equity linked notes are derivative instruments issued by SEBI registered FII to foreign investors. P – Note holder enjoys partial voting rights in relation to security / shares referenced the FII. P – Notes are highly safe and lucrative route to invest the unaccounted or even illegal money in to Indian security market for huge profits. Select the correct option a) 1 and 2 only b) 2 and 3 only c) 1 and 3 only d) 1, 2 and 3. Q.5) 102 villages have been electrified across the country during last week (from 18th to 24th April 2016) under Deen Dayal Upadhyaya Gram Jyoti Yojna (DDUGJY). Consider the following statements with respect to DDUGJY The scheme aims to electrify all unelectrified villages within 1000 days from the launch of the programme. The scheme is implemented by Ministry of power in close coordination with Ministry of Rural development. Select the correct option a) 1 only b) 2 only c) Both d) None Download the Solution- Click here

RSTV Video

The Big Picture - Tackling the NPA Explosion: Privatisation or Bankruptcy Bill

Archives     The Big Picture - Tackling the NPA explosion: Privatisation or Bankruptcy Bill   The problem of NPA is more often in news nowadays. On one side with farmers committing suicides due to failure to repay loans and on the other side, 29 PSB writes off nearly 1.14 lakh crore rupees have raised serious concerns. With gross NPA’s at nearly 4.5 lakh crore for the fiscal 2015, the credibility and the way banking sector is working needs to be relooked. With huge NPA piling up, the banking sector has lost the ability to take back the loans from the customers. The sector which sometimes performs discreetly by giving away huge loans to big corporate houses and for small borrowers via government schemes has failed most of the time in servicing the loans. Another issue is lack of proper credit assessment. Banks tend to over value the assets before granting the loans. This happens more due to political patronage to vested interests. The lack of trained manpower to handle such risks related to credit assessment is only amplifying the problem. Way forward Banks need to function professionally without any political interference. Government needs to be more proactive in dealing with governance issues related to banks. Narasimhan committee which recommended diluting the government shareholding in banks and measures to bring in more diligence to bank governance has been ignored so far. A much awaited political will is necessary to absorb the recommendations given by the committee. The issue of recapitalisation cannot be ignored. Government has so far promised banks 75000 crore by 2018 is less than what is needed for full recapitalisation which stands at 1.18 lakh crores. Government needs to be innovative to garner more funds by making strategic disinvestments and by diluting shareholding etc. The role of RBI cannot be left out in this discourse. RBI needs to come up with more proactive and stringent guidelines on credit repayment and ensure they are followed by banks. The politicisation of banks is the biggest hindrance for effective functioning of banks. Every possible effort must be made to remove functioning of banks from the clutches of Ministry of Finance. Banks should be left to function professionally which not only allows a sustained growth but also put brake to mounting NPA’s. Also expediting cases related to insolvency by judiciary has a long way in reducing the impact of NPA’s. The quick passage of bankruptcy bill will help to bring in some air in tackling the NPA menace.

PIB

IASbaba Press Information Bureau (PIB)- 18th April to 24th April, 2016

ARCHIVES GS-2 MoU between India and Bhutan— Technical Cooperation in the Field of Capacity Building, Benchmarking and Bilateral Exchange in Infrastructure Engineering (Topic: Bilateral, regional and global groupings and agreement involving India and/or affecting India’s interests) India-Bhutan Relation- India and Bhutan have had a long standing— Diplomatic + Economic + Cultural relations with each other India-Bhutan friendship treaty signed in New Delhi in February (2007) also strengthens the mutual relations.   About MoU- MoU is in furtherance of— Article 2,7 and 8 of the India-Bhutan friendship treaty MoU will provide an Umbrella for— Educational + Scientific & technical research+ Environment protection which are also stated aim of the India-Bhutan foundation established in August 2003 Existence of an ongoing Hydro Power Cooperation between the two countries which provides an exemplary template for mutual cooperation. Importance- Through this MoU, the Central Public Works Department will stand to gain in terms of experience in hills road construction which is of paramount importance in—J&K + Himachal Pradesh + Uttarakhand and various States of North-East Region CPWD also expects to garner some road construction projects in Bhutan.   MoU—Youth Exchange Programmes with foreign countries (Topic: Bilateral, regional and global groupings and agreement involving India and/or affecting India’s interests) About- MoU signed with Bahrain, Kuwait, Nepal, South Korea, Sri Lanka, Vietnam and BRICS Nations on Organising Youth Exchange Programmes with these countries Importance- Promote exchange of ideas and values amongst youth of different countries and help in developing international perspective among the youth. Further, through people-to-people contacts, these Programmes promote peace and understanding and strengthen friendly relations between countries.   Cabinet approves signing the Paris Agreement (Topic: Bilateral, regional and global groupings and agreement involving India and/or affecting India’s interests) Aim- To enhance the implementation of the Convention and recognize the principles of equity and common but differentiated responsibilities and respective capabilities in the light of different national circumstances Features of the Paris Agreement- Paris Agreement acknowledges the development imperatives of developing countries. Agreement recognizes the developing countries' right to development and their efforts to harmonize development with environment, while protecting the interests of the most vulnerable. Paris Agreement recognizes the importance of sustainable lifestyles and sustainable patterns of consumption with developed countries taking the lead, and notes the importance of 'climate justice’ in its preamble. Agreement seeks to enhance the 'implementation of the Convention' whilst reflecting the principles of equity and common but differentiated responsibilities and respective capabilities, in the light of different national circumstances. Objective of the Agreement further ensures that it is not mitigation-centric and includes other important elements such as- Adaptation, Loss and damage, Finance, Technology, Capacity building Transparency of action and support. Developed country parties are urged to scale up their level of financial support with a complete road map to achieve the goal of jointly providing US $ 100 billion by 2020 for mitigation and adaptation by significantly increasing adaptation finance from current levels and to further provide appropriate technology and capacity building support.   Expansion of India - Chile Preferential Trade Agreement (Topic: Bilateral, regional and global groupings and agreement involving India and/or affecting India’s interests) India-Chile PTA- India's export basket with Chile is diversified and keeping in view the wide variety of tariff lines offered by Chile, the expanded PTA would immensely benefit India. Under the expanded PTA- Chile has offered concessions to India on- 1798 tariff lines with Margin of Preference (MoP) ranging from 30%-100% India has offered concessions to Chile on-1031 tariff lines at 8-digit level with MoP ranging from 10%-100%. Under the proposed expanded PTA, 86% of India's exports to Chile will get covered with concessions, which is likely to result in doubling of our exports in the near future.   Importance- Expansion would be an important landmark in India-Chile relations and consolidate the traditional fraternal relations that have existed between India and LAC countries. India-Chile relations- India has friendly relations with Chile— Chile has been cooperating with India at the International fora and expansion of India Chile PTA will enhance the trade and economic relations between the two countries. Empowering Women Officers: Progressive initiatives by Indian Navy (Topic: Women empowerment) About-Several progressive and first-time initiatives have been taken by the Indian Navy in the last few months towards empowering women officers. Steps taken- Recognising the importance of providing equal opportunities to women officers, seven women officers from the batch of Short Service Commission officers of the Educationbranch and Naval Constructor cadre, who joined in 2008-09, have been granted Permanent Commission. Additional avenues for employment of women officers have also been opened up. Starting in 2017, women officers can choose to join as Pilots of Maritime Reconnaissance planes viz. Boeing P8I, Dornier, etc, as also in the Naval Armament Inspectorate cadre. Total of eight branches/cadres will be opened for women officers in the Navy. Navy is also finalising the policy for women officers to serve on select warships that have appropriate facilities for women. To demonstrate that women are second to none in tough adventure activities, a crew of six Naval women officers including the skipper, is meticulously preparing for the first, all-women, circumnavigation of the world in 2017by an Indian team, in an indigenously built ocean sailing vessel, Mhadei II.   Public Sector Energy Blue Chips Companies Likely to Launch Masala Bonds to Tap the UK Investor Community (Topic: Effect of policies of developed and developing countries on India’s interests) Context- India gears up to meet its ambitious renewable energy targets of 175 GW of installed capacity by 2022, the country is exploring international mechanisms of funding and is evaluating new and innovative tools to finance the renewables sector. Steps taken- Indian public sector giants are likely to examine rupee denominated debt instruments like Masala Bonds to create and develop a new market and identify benchmark prices for these new instruments. Issuances which would be offered by blue chip government companies are expected to help evolve new vistas of funding for the renewable energy space. Companies including NTPC, Neyveli Lignite Corporation, Power Finance Corporation, Power Trading Corporation and Rural Electrification Corporation are likely to launch these Masala Bonds totalling $1 billion in the next three or four months in the UK to gauge the investor appetite. Tenure of these bonds is likely to be limited to a band of five to seven years and these are going to be in smaller denominations ranging from $150-250 million. In 2015, IFC issued the first Masala bond listed on the London Stock Exchange.   Railway Minister directs to develop an online system for grievance redressal of both serving as well as retired Railwaymen (Topic: Government polices and interventions for development in various sectors and issues arising out of their design and implementation) About- In an innovative measure aimed at staff welfare, Minister of Railways has directed railway administration to develop an online system for the redressal of grievances of Railway Employees both serving as well as retired. NIVARAN- IT Department of Indian Railways has started working on developing this system which will be called “NIVARAN” and will come into operation by 24.06.2016. Under this system, railway personnel will be able to submit his grievances online and can also track the progress in resolution or disposal of the grievances.   Main focus areas of the grievance redressal- Reimbursement of medical claims Pension claim Compassionate appointment Improvement in staff quarters   GS-3 Indo-Thai Coordinated Patrol (CORPAT) (Topic: Security challenges and their management in border areas; linkages of organised crime with terrorism) About- INS Karmuk, an indigenously built Missile Corvette based at the Andaman and Nicobar Command, along with a Dornier Maritime Patrol Aircraft, are participating in the 22nd Indo-Thai Coordinated Patrol (CORPAT), scheduled from 19-27 Apr 16 in the Andaman Sea. 22nd edition of the CORPAT- Include participation of one warship and one Maritime Patrol Aircraft from both sides with the Closing Ceremony being held at Port Blair, Headquarters Andaman and Nicobar Command (HQANC) It would bolster the already strong bilateral relationship between the two nations and contribute significantly to enhancing maritime security in the region.   Aim- Keeping this vital part of the Indian Ocean Region safe and secure for commercial shipping and international trade. Importance- CORPAT has strengthened understanding and interoperability between the navies and facilitated institution of measures to prevent unlawful activities at sea as well as conduct Search and Rescue (SAR) operations. India-Thailand Relation- India and Thailand have traditionally enjoyed a close and friendly relationship covering a wide spectrum of activities and interactions, which have strengthened over the years. Maritime interaction between India and Thailand has been growing steadily with frequent port visits, participation in multilateral exercises and training exchanges. Under the broad ambit of this strong maritime relationship, the two navies have been carrying out CORPATs along the International Maritime Boundary Line (IMBL) twice a year since 2005.   15 Point Action Plan—Facilitating Large Scale Integration of Renewables  (Topic: Conservation, environmental pollution and degradation, environmental impact assessment, renewable energy) About- Union Minister of State (IC) for Power, Coal and New and Renewable Energy released Report of the Technical Committee on Large Scale Integration of Renewable Energy, Need for Balancing, Deviation Settlement Mechanism (DSM) and associated issue. Launched Ancillary Services Operations in India.   Committee recommendation- Bringing flexibility in the conventional generation Frequency control Generation reserves Ancillary services Forecasting Scheduling Deviation settlement mechanism Balancing requirement Data telemetry and communication Renewable Energy Management Centres (REMCs) Transmission system augmentation and strengthening as well as certain compliance actions at renewable generation front. Committee has put forth a 15 point Action Plan for facilitating large scale integration of renewables in the country, in a secure and reliable manner. Focus has also been given on Capacity Building of State Load Despatch Centres (SLDCs) particularly in RE Rich States. Report also talks about the Newer Technologies say- Micro-Grids Demand Response Prosumers Electricity Storage Plug-in Hybrid Electric Vehicles etc.   Recommendations aim at- Making the grid secure and reliable even with large scale integration of renewable. Ancillary Services- In an electricity grid, the basic services are- Power generation Energy supply Power delivery from the producer to the consumer. Some system support services such as frequency and voltage control are required for secure & reliable grid operation. These support services are known as ‘Ancillary Services’ and are basically procured and pressed into service by the System Operator. Amendment to the Tariff policy has also been notified, which mandates implementation of Ancillary Services. Regulatory framework for implementation of Ancillary Services Operations has been notified by CERC. National Load Despatch Centre (NLDC) operated by POSOCO has been designated as Nodal agency for implementation of Ancillary Services. Ancillary Services is being implemented for the first time in the country. Help in- Better grid management even with large scale renewable generation addition in the grid Importance-  Initiative undertaken by the committee would not only lead to smooth and secure grid operation with large scale integration of renewable but is also environment friendly and would help in fulfilling our commitment to green and clean environment. Reduce the carbon foot print and help in meeting our commitment towards reduction in carbon emission.   Textiles Minister launches Eco Friendly Jute Bag initiative in Delhi (Topic: Conservation, environmental pollution and degradation, environmental impact assessment, renewable energy) Context- Indiscriminate use of polythene bags is one contributor to the pollution problem in the national capital. National Green Tribunal (NGT) has on multiple occasions, tried to ban use of plastic carry bags in Delhi. However, plastic carry bags continue to be used commonly.   Aim- To provide attractive, low cost jute bags at the thousand-odd booths of Mother Dairy/Safal in Delhi – NCR. Joint Venture of- Mother Dairy + National Jute Board (NJB) + Birds Jute & Exports Ltd.(BJEL) have joined hands in this green venture. Venture promoted by- NJB Bags manufactured by- BJEL Supplied to- Mother Dairy for distribution at its booths Initiative- Through this scheme, one can purchase one’s daily requirement of perishables from reliable outlets of Mother Dairy and Safal, along with the option of buying environment friendly, attractive, low cost jute bags too. Available in the price range of Rs 25/- to Rs. 35/-, these bags are strong, washable and can be used several times over, making them cost effective. Bags are provided at Mother Dairy and Safal outlets by Birds Jute & Exports Limited (BJEL), a PSU under the administrative control of Ministry of Textiles, Government of India. Mother Dairy has placed an initial order of 20,000 jute bags - 10,000 units each for Mother Dairy and Safal. Based on the response of residents of Delhi/NCR, repeat orders shall be placed. Bags are being supplied by BJEL on cost to cost basis; any profit earned in future will be passed on to the artisans and members of the WSHGs.   India Urges Developed World to Declare Enhanced Action Plan (Topic: Conservation, environmental pollution and degradation, environmental impact assessment, renewable energy) About- India has urged the developed world to declare its enhanced action plan for the second period of Kyoto Protocol. Highlights- India has levied a Clean Environment Cess of $6 (Rs. 400) per tonne on coal and Minister added that if the developed world follows India in taxing its coal production, $100 billion can be raised. Developed world must provide technological support to the developing nations in the fight against Climate Change. India is leading by example on mitigation and adaptation. India’s action on Climate Change after the Paris Agreement, 175 GigaWatt of Renewable Energy has been targeted by 2022, out of which 40 GW Renewable Energy capacities has been achieved by March 2016. Government has decided to leapfrog from Bharat Stage IV (BS-IV) to Bharat Stage VI (BS-VI) emission norms by April 1, 2020, thereby skipping BS-V emission norms altogether. To promote blending of ethanol with petrol and its use as an alternative fuel and has taken a decision to tax SUVs and diesel vehicles. Distribution of 93 million LED bulbs till April 12, 2016,resulted in energy savings of more than 33.3 million kWh every day Emphasising the initiatives taken by the government on adaptation front, the Minister stated that farmers can get their inefficient agricultural pumps sets free of cost replaced with energy efficient pumps. Some of the other initiatives taken by the Government include - Pradhan Mantri Krishi Sinchayee Yojana to improve water use efficiency, sustainable agriculture and efficient water use. On the issue of pollution of lakes in Bengaluru, Ministry has issued directions under section 5 and section 18 of Environment Protection Act on pollution of lakes in Bengaluru. Centre has extended an assistance of Rs. 800 crore under AMRUT scheme for cleaning up the lakes in Bengaluru. Out of this, Rs. 500 crore is for laying down a 74 kms trunk sewage pipeline and Rs 162 crore have been provided to construct 4 Sewage Treatment Plant (STPs) in Bellandur lake.   Progress on Ease of Doing Construction   (Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth) About- Three Municipal Corporations of Delhi have reported substantial progress in respect of ensuring single window clearances for construction projects in the stipulated 30 days time Reviewed progress towards enhancing ease of doing business in Delhi and Mumbai with all the concerned agencies Common Application Form- Introduced by the MCDs of North, South and East for enabling single window clearances aimed at enhancing the ease of doing construction business in the national capital. Common form enabling online approvals by other agencies like Delhi Fire Services, Delhi Urban Arts Commission, National Monuments Authority- applicants may be required to furnish even much less information if approvals of such agencies are not required. Introduction of Common Application Form for construction projects, urban local bodies should stop receiving applications in the old format. Progress scenario- Airports Authority of India, National Monuments Authority etc for coming out with Color Coded Maps empowering respective urban local bodies to accord approvals, directed all the concerned to make it clear by explaining in details areas exempted for obtaining their approvals and otherwise. MCDs reported that 10 agencies including DUAC, Heritage Conservation Committee, Delhi Fire Services, Delhi Jal Board etc. have already been integrated with the Common Application Form thereby doing away with the need for the applicant to separately approach these agencies for no objection certificates Integration of Airports Authority of India into the online process will be ensured this week and tree cutting approvals by the end of this month.   PM exhorts official youth organizations to join hands for water conservation (Topic: Water conservation) About-Prime Minister reviewed the functioning of official youth organizations, including the NCC, NSS, Bharat Scouts and Guides, Indian Red Cross Society, and NYKS. Highlights- Discussed the immediate tasks ahead, where these organizations could play an important role. PM said that in the next couple of months, there would be a massive effort under MGNREGA for water conservation and storage mechanisms and urged these youth organizations to mobilize to the greatest extent possible, to dovetail and contribute to these efforts. Mentioned the tasks of Swachhta, creation of open-defecation free clusters, and inculcation of a fresh national spirit among the youth, as key objectives that the youth organizations should strive for. Youth organizations can aid in Government's Mission Indradhanush initiative to reach the unvaccinated children. PM also called for synergy among various initiatives and programmes organized on National Youth Day on January 12th, so that a more meaningful impact could be achieved. Youth organizations to keep a more active presence on social media, to generate a wider appeal, and better connect with the youth   Water Revolution in the Country  (Topic: Water Conservation)  About- Union Minister for Water Resources, River Development and Ganga Rejuvenation has called for water revolution in the country. Seminar organised by- Central Water Commission under Ministry of Water Resources, River Development and Ganga Rejuvenation as a part of 125th Birth Anniversary celebrations of Dr. BR Ambedkar to highlight Ambedkar’s contribution in water sector and discuss the way forward to realize his vision. Highlights- Announced that 100 villages dominated by SCs in the country will be selected under Jal Gram Scheme for water conservation. Jal Gramis a scheme under Jal Kranti Abhiyan of Ministry of Water Resources, River Development and Ganga Rejuvenation, in which two water starved villages will be selected from every district in the country for all round development of water resources. Minister referred to little known contributions of Baba Saheb in water resources sector and announced that from next year her Ministry will celebrate Dr. Ambedkar’s birth anniversary as Jal Divas Dr. Bhimrao Ambedkar contribution- During his tenure as Member (Labour) of the Viceroy’s Executive Council (1942-1946), Dr. Ambedkar steered formation of a definite All-India Policy for the development of water resources in the country. Laid foundation of Central Waterways, Irrigation and Navigation Commission (CWINC) which was forerunner of the present day Central Water Commission (CWC). Advocated the concept of River Valley Authority or corporation for integrated development of the rivers. Introduced the concept of multi-purpose development of river basin in the country and his efforts in this direction have culminated with multipurpose development of Damodar, Mahanadi and other rivers immediately after independence. He was instrumental in inclusion of Entry 56 of List 1 and introduction of Article 262 regarding the adjudication of disputes related to waters of inter-sate rivers or river valleys.   Mandatory standards for piped drinking water (Topic: Consumer protection, quality of drinking water) About- Central Consumer Protection Council (CCPC),has expressed concern over quality of drinking water being supplied through pipeline and has recommended mandatory standards for drinking water irrespective of its source. CCPC recommendation- FSSAI should formulate standards for water being supplied through pipeline and steps to be taken to monitor its quality. There should be guidelines for brand ambassadors of products and services and in the case of gross misrepresentation of the facts or misleading advertisements, brand ambassadors should also be made responsible. “Grahak Suvidha Kendras” set up by Consumer Affairs Ministry are being directed to take up consumer complaints with the sector regulators or consumer courts on behalf of consumers (so far 5 such centres have been set up in Ahmadabad, Bangalore, Jaipur, Kolkata, Patna and Delhi and more will be set up in other parts of the country soon). National Consumer Helpline is being strengthened; its capacity to attend consumer complaints is being enhanced three times more.   Smart Cities asked to pose projects for loan support from World Bank, ADB and BRICS Bank (Topic: Important international institutions, agencies and further structure, mandate) About- Ministry of Urban Development has urged the 20 Smart Cities selected in the first round of competition to quickly firm up bankable projects for obtaining loan assistance from the Asian Development Bank (ADB), the World Bank and the BRICS Development Bank. Highlights- Informed the cities that the ADB has in principle agreed to extend a loan of US $ 1 Billion while the World Bank is willing to extend a loan of US $ 0.50 billion for the implementation of Smart City Mission. BRICS Development Bank is keen to support smart city projects. Stressing the importance of mobilization of resources through Municipal Bonds issue- urged the cities to act quickly to obtain credit ratings from agencies approved by the SEBI. (Municipal Bond?) Process for credit rating of 85 cities has already been initiated under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and all the 500 Mission cities shall complete this process in the next one year. During the discussion on resource mobilization through Municipal Bonds, it was informed that the US Treasury has expressed willingness to be the Transaction Advisor for such an issue by Pune Municipality which enjoys credit rating of ‘AA Stable’. Eight cities that participated, furnished details of the projects that could be launched by June include- Affordable housing projects, 24 X 7 water supply projects, Sewage Treatment Plants, Transport projects, Smart street lighting, Roof top mounted solar paneling, Solid Waste Management and waste water recycling projects Technology based Pan-city projects like- Intelligent Transport Solutions, e-governance, Provision of wifi services, Common Payment Cards, RFID based tags for individual household dustbins etc.  

IASbaba’s Daily Current Affairs – 25th April, 2016

Archives   IASbaba’s Daily Current Affairs – 25th April, 2016   NATIONAL   TOPIC:  General studies 1: Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclone etc., geographical features and their location - changes in critical geographical features (including waterbodies and ice-caps) and in flora and fauna and the effects of such changes. General studies 3: Conservation, environmental pollution and degradation, environmental impact assessment. Disaster and disaster management.   Permanently fighting drought in India This year India is facing severe drought conditions coupled with acute water shortages across many regions.   Definition of drought: A drought is a period of below-average precipitation in a given region, resulting in prolonged shortages in its water supply, whether atmospheric, surface or ground water. Types of droughts recognised in India: Meteorological Drought: It describes a situation where there is a reduction in rainfall for a specific period (days, months, seasons or year) below a specific amount (long term average for a specific time). The Indian Meteorological Department (IMD) has defined meteorological drought as a situation occurring in any area when the mean annual rainfall is less than 75% of the normal rainfall. IMD has further classified droughts into the broad categories viz., a severe drought when the deficiency of rainfall exceeds 50% of the normal rainfall and moderate drought when the deficiency of rainfall is between 25 and 50% of the normal rainfall. Hydrological Drought: Hydrological drought is associated with reduction of water. A meteorological drought often leads to hydrological drought. There are two types of hydrological droughts viz., (i) surface water drought and (ii) ground water drought. Agricultural Drought: Agricultural drought is concerned with the impact of meteorological/hydrological drought on crop yield. When soil moisture and rainfall conditions are not adequate enough to support a healthy crop growth to maturity thereby causing extreme moisture stress and wilting of major crop area, it leads to agricultural drought. Soil Moisture Drought: This is a situation of inadequate soil moisture particularly in rainfed areas which may not support crop growth. This happens in the event of a meteorological drought when the water supply to soil is less and water loss by evaporation is more. Socio-Economic Drought: It reflects the reduction of availability of food and income loss on account of crop failures endangering food and social security of the people in the affected areas. Famine: A famine occurs when large scale collapse of access to food occurs which, without intervention, can lead to mass starvation.   The present drought condition in India is manmade: In the 1990s, it was the drought of a poor India. This 2016 drought is of richer and more water-guzzling India. This classless drought makes for a crisis that is more severe and solutions more complex. The fact is that the severity and intensity of drought is not about lack of rainfall, it is about the lack of planning, foresight and criminal neglect. Drought is man-made.   Failure of MGNREGA to prevent drought: In the decade of 2000, there were rain deficiency years and there were government programmes designed to build water structures across the country. Under the Mahatma Gandhi National Rural Employment Scheme (MGNRES) millions of check dams, ponds and other structures were even constructed. But as the intention was not to fight against drought, only provide employment, the impact of this labour has never shown up in the country's waterline. The structures in most cases were holes in the ground - that quickly filled up with soil by the next season. Modern day drought and climate change: The modern day drought of rich India has to be combined also with another development: climate change. The fact is that rain is becoming even more variable, unseasonal and extreme. This will only accelerate the crisis. It is time we understood that as drought is man-made, it does not have to stay. It can be reversed. It can be managed. But then we really need to get our act together. What needs to be done now? Do everything we can to augment water resources - catch every drop of water; store it; recharge groundwater. To do this we need to build millions more structures, but this time based on planning for water and not just employment. And also giving people the right to plan, where to locate the water body and the right to manage it for their need. Revise and update the drought code. It is not as if the richer parts of the world do not have droughts - Australia and California have gone through years of water scarcity. But their governments respond by shutting off all non-essential water use from watering lawns to washing down cars and much more. This is what is needed in India.   Obsessively work to secure water in all times. This means insisting on water codes for everyday India (National Water policy 2012). We need to reduce water usage in all sectors - from agriculture, urban to industry. NDMA and Drought Management: Source : http://www.ndma.gov.in/images/guidelines/droughtguidelines.pdf Connecting the dots: Delineate the chronic drought prone regions of India along with specific reasons for existence of drought in those regions over the years. To what extent do you think availability of water influences the socio economic conditions of people and the economic growth of the country.   NATIONAL TOPIC:  General Studies 2 Indian Constitution- historical underpinnings, evolution, features, amendments, significant provisions and basic structure.  Government policies and interventions for development in various sectors and issues arising out of their design and implementation.    Human-centric Laws - Maharashtra Protection of People from Social Boycott (Prevention, Prohibition and Redressal) Act of 2016 Historically— Mid-19th century— Intra-community battles over access to public goods under the colonial state had begun 1856—the Bombay government denied admission to a Christian Mahar convert into a public school on the ground that caste Hindus did not wish to “associate” with a Mahar student. Towards the end of the 19th century, Dalit students were allowed to attend public schools, but were directed to sit separately in a verandah outside the classroom; also barred from accessing the common water supply. Late 1920s: B.R. Ambedkar’s contribution—“The issue is not entry, but equality” Ambedkar – Exclusion occurs along multiple axes: Through boycott, Through stigmatisation, and Through segregation (the case of the school verandah) Launched famous Mahad satyagraha directed towards opening up access to community water tanks that had been barred to Dalits Launched a movement for entry into public temples, basing his claims on the right to an equal standing within the community Conceptualised legal solutions to the problem of community oppression, and in his submissions to the Minorities Committee of the Round Table Conference, he identified social boycott as “the most formidable weapon in the hands of the orthodox classes with which they beat down any attempt on the part of the Depressed Classes to undertake any activity if it happens to be unpalatable to them” He quoted the Starte Committee Report of 1928, which had observed that “[the social] boycott is often planned on such an extensive scale as to include the prevention of the Depressed Classes from using the commonly used paths and the stoppage of sale of the necessaries of life by the village Bania… cases have been by no means rare where a stringent boycott has been proclaimed simply because a Depressed Class man has put on the sacred thread, has bought a piece of land, has put on good clothes or ornaments, or has carried a marriage procession with the bridegroom on the horse through the public street.” Proposed an anti-boycott law which would specifically prohibit the practice of social boycotts— few of Ambedkar’s proposals found their way into the post-Independence Protection of Civil Rights Act of 1955 Proposed to bring within the definition of boycott, “refus[al] to let or use or occupy any house or land, or to deal with, work for hire, or do business with another person, or to render to him or receive from him any service”. Part of this was covered by Article 15(2) of the Constitution, in its guarantee of access to shops, which was understood by the framers to include non-discriminatory access to services. Present—Religion-driven housing discrimination, leading to segregation is emerging as a serious problem, especially in urban areas Against the practice of excommunication 1949: State of Bombay passed a law called the Bombay Prevention of Excommunication Act, which outlawed the practice of excommunication within religious communities. The constitutionality of this Act was challenged by the head of the Dawoodi Bohra community, who argued that by curtailing his powers of excommunication, the law interfered with his religious freedom. In 1962, a divided Supreme Court struck down the Act— The judges in the majority held that the practice of excommunication was an essential tool for maintaining community discipline and cohesiveness, and consequently, was protected by Article 26(b) of the Constitution, which guaranteed to all religious denominations the right to manage their own affairs in matters of religion.   Correctness of the majority opinion in the Dawoodi Bohra case— Undeniably, the Constitution guarantees religious freedom to communities, and also guarantees the freedom of association but at the same time; however, the Constitution also recognises that punitive community action can severely harm individual freedom, dignity, and access to basic public goods. Therefore, it curtails the power of groups in various ways—prohibition of untouchability, guarantee of non-discriminatory access to “shops, public restaurants, hotels, and places of public entertainment” (Article 15(2)) – “horizontal application of rights”: that is, the Constitution grants individuals rights not merely against the State, but also against other individuals (and groups) Maharashtra Protection of People from Social Boycott (Prevention, Prohibition and Redressal) Act of 2016— Represents another chapter (1st: first in the country to enact anti superstition law) in a long-standing battle to secure individual freedom from the suffocating grasp of ascriptive communities, whether based on caste or religion Carries forward the judicially-aborted goals of the 1949 Excommunication Act, and the rarely-used Protection of Civil Rights Act Purpose: To prevent and punish the continuing community-driven practice of social boycotts Provides 15 examples of “social boycott”, which include Obstructing individuals from observing religious practices or customs, Severing social or commercial ties, Causing intra-community “discrimination”, Expulsion from the community, etc Who will be penalised—Persons who Directly engage in social boycott, Instigate others to do so, or Participate in the deliberations of any meeting organised with the purpose of imposing a boycott (On the basis of “morality, social acceptance, political inclination, [or] sexuality”) 7-year jail, Rs 5-lakh fine for guilty; trial within 6 months of filing charge-sheet The victim or any member of the victim’s family can file a complaint either to police or directly to the magistrate. To ensure time-bound results, it indicated speedy trial within six months of filing charge-sheet. Focus: Directed against caste panchayats which often function as community-based parallel forums of justice, and whose diktats are invariably directed against recalcitrant individuals who have been deemed to transgress the bounds of caste or community morality. Criticism: Extensive focus on caste-panchayat driven community boycotts leading to a failure in addressing the issue of discrimination. Therefore, a comprehensive anti-discrimination law, on the lines of the Civil Rights enactments in the United States and the United Kingdom, can be enacted to fill the gap.   Additional Steps that can be taken— (Add-on’s- For building up your perspective, should a question like this appears in ‘Ethics’ Section) The provision of ‘Social Boycott Prohibition Officer’ to detect the commission of offences under the provisions of this Act; will also assist magistrate and police officers to discharge their duties (Proper delegation as well as a coordinated response- Effective Monitoring) Need to also evolve the law for other states like Haryana, Rajasthan, Telengana and Andhra Pradesh, where local panchayats play a major role in governing the lives of people - to ensure their local system is not completely uprooted, and yet there is a check on ill-treatment of the disadvantaged Connecting the Dots: What do you mean by the term ‘social boycott’? Will the decision to evolve a ‘new law’ on the same lines as that of the Maharashtra Law- yield positive benefits for the society or will it stay riddled with inefficient laws just to please the voters?   MUST READ Keep it parliamentary- As the two Houses meet today, there is a significant legislative backlog and lots of questions about scrutiny of ministerial accounts Hindu   Concern over India's nuclear liability law still remains: French firm- French firm EDF also said that it will give a fresh pricing proposal for the six nuclear reactors for the Jaitapur plant Business Standard Related Articles: Come clean on Nuclear Security   India's first small finance bank launched-Capital Small Finance Bank opens 10 branches in Punjab; to add nine more in FY17 Business Standard   Making skills self-healing- One solution to India's challenges of education, employment, employability lies in state govts adopting apprenticeships on a large scale Business Standard   New rule applies on service tax Business Standard   US-India partnership: Full speed ahead?-The partnership can help India build up its capacity to deter potential conflicts with China (and Pakistan) and become a net security provider with the US. This is vital for India and global security Live Mint Related Articles: India- US relationship- a Strategic Imperative   Govt to increase checks on private universities- Fake degrees, irregularities in finance, threefold increase in complaints have forced the govt and UGC to take a close look at state private universities Live Mint   A case to revisit India’s land laws-Two-thirds of civil cases in district courts relate to land and property matters Live Mint   The importance of IP rights for innovation- Protecting intellectual property of our innovators ensures future generations will enjoy art forms as rich, diverse and creative as those we enjoy today Live Mint Related Articles: India lagging behind in Innovation Legally Knotted ‘Innovations’

IASbaba's Daily Prelims Quiz : Day 6

  Click here to get all the Quiz @ one place ->    ARCHIVES     Q.1) Recently a group of scientists discovered a new species of a Macaque in Arunachal Pradesh. Consider the following statements with respect to Macaque The Macaques are the most widespread primate genus, ranging from Japan to the Indian subcontinent. Macaques are the distant relatives of Langurs and Gibbons. The famous lion tailed macaque is endemic to Western Ghats and is declared endangered as per IUCN red list. Select the correct answer using the codes given below a) 1, 2, and 3 only b) 2 and 3 only c) 1 and 3 only d) 1, and 2 only Q.2) Recently Chief Justice of India made an appeal to central government to increase the number of judges and also a suggestion to bring retired judges on temporary basis to fill the vacancies. With respect to this consider the following statements At any time CJI can appoint a retired judge of SC or HC on temporary basis. Before appointing the retired judges the CJI must consult President on this regard. Although the appointed judge has all the powers and privileges of SC judge he will not otherwise be deemed to be judge of SC. Select the correct answer using the codes given below a) 1 and 2 only b) 2 and 3 only c) 1 and 3 only d) 1, 2, and 3 Q.3) The president of India recently witnessed celebrations of Khongjam day. Consider the following statement with respect to Khongjam day.   Khongjam day marks the occasion of battle of Khongjam which was fought in the year 1891 between British and people of Manipur. It is the last battle fought by the British on Indian soil. With this battle Manipur became the last nation to come under British Empire. Select the correct answer using the codes given below a) 1 and 2 only b) 1, 2, and 3 c) 2 and 3 only d) 1 and 3 only Q.4) Recently Copper plate dating back to times of Harsha and Pulakesin 2 was found. Consider the following statements with respect to Pulakesin 2. Pulakesin 2 ruled from Chalukyan capital of Badami. Pulakesin 2 defeated the army of Harsha in 618-619 AD. The copper plate also shows that the ruler made lands grants known as Nivarthanas’ to Brahmins (Vedic scholars). Select the correct answer using the codes given below a) 1 and 2 only b) 2 and 3 only c) 1 and 3 only d) 1, 2, and 3 Q.5) Recently CORPAT was in news. Consider the following statements with respect to CORPAT. CORPAT, also known as coordinated patrol conducted between the navies of India and Malaysia. It was started in 2005 and is held every year. Select the correct option a) 1 only b) 2 only c) Both d) None Download the Solution- Click here

RSTV Video

The Big Picture - Crowd Management in Temples: Lessons from Kollam Fire

Archives     The Big Picture - Crowd Management in Temples: Lessons from Kollam Fire Recently at the Puttingal Temple, kollam, Kerala a massive fire cracker tragedy took place claiming the lives of more than 100 people and leaving several injured. This leaves lot of room for introspection when it comes to handling such crowds. Crowd management is something which is the sole responsibility of district administration. District administration must make all necessary arrangements regarding to coordination of crowd, exit paths, safety precautions, etc. However in this case despite district administrations repeated interventions the temple authorities seem to have ignored all the orders. It is time now for district administration to take actions against all the perpetuators. Laxity of procedure and respect for law: the shocking news that permission was denied for the fireworks display and that the fireworks were set off anyway is grim reminder of the callous attitude of the temple authorities and helplessness of the district administration. The whole incident seems to be highly negligent about the prevailing rule of the land. Supreme Court says that fire crackers should not be used post 10PM but nobody seems to give heed to such things. Political interference in issues related to safety and security of devotees should not be made. It is to be known from the reports that officer from the Kerala fire services was transferred last year when he was trying to enforce safety norms at fire cracker celebration. Finally it is high time that authorities take proper measures so that incidents like this will not occur. It is necessary to bring all the stakeholders together (all temple authorities)  and arrive at a common consensus on how such incidents can be self regulated by temple authorities by following safety norms and how they can cooperate more with police so that the proper laws are enforced and safety is ensured. The accident at the Puttingal Devi temple, if accident it is determined to be, will haunt us for a long time to come. But it is time to examine - and rectify - the trends in our society that have helped shape the contours of this tragedy, if we want to ensure it never happens again.

RSTV Video

The Big Picture - B R Ambedkar: Mascot or Philosopher?

Archives     The Big Picture - B R Ambedkar: Mascot or Philosopher?   Recently 125th birth anniversary of Dr B R Ambedkar was celebrated all over India with much excitement and vigour. Ambedkar was no less a leader compared with Gandhi whose contribution for upliftment of downtrodden people deserve applauds. The values that he stood is beyond all party lines, however there are elements in the society who interpret his teachings for gaining undue advantage. This article deals with certain interpretations by scholars to understand whether Ambedkar was a mascot or a philosopher. Ambedkar in a sense can be summed as both philosopher and mascot for not just the downtrodden but for all the kind of inequality that is existing in the society. He is contemporary and modern whose thoughts align with inequality. Also there are efforts by certain elements who glorify Ambedkar as if he belongs to one particular community or so. But on a larger side Ambedkar and his thoughts are obscured or beyond the comprehension of a common man. Political parties have appropriated Ambedkar legacy through various means like elections etc. However the Inherent contradiction that exists between the political parties on reclaiming the legacy is something which is not desirable. Even though various governments have made sustained efforts to instil the values of Ambedkar at the same time certain elements in the society are just reducing him to mere statues and posters by forming numerous associations etc. Finally political parties need to play pragmatic politics when it comes to appropriating icons of great stature. Regardless of party lines there should be synchronisation of philosophy with the philosophy of the icons they are appropriating. If these things do not happen then it should be condemnable and  is highly disrespectful for the icon.

Motivational Articles

Creative Guidance – Success is a Way of Life – Inspirational & Educative Articles

Success is a Way of Life: Most people look at success as an accomplishment of a goal, attainment of a vision, fulfillment of a purpose, completion of a journey, the end of a struggle. Very rarely do people recognize success for what it truly is; a way of life. If you study the lives of successful and unsuccessful people, one thing stands out the most; a successful person seems to succeed at almost everything and a failure fails at everything. It is not the chosen field or activity that defines success; it’s always the way in which one approaches things. Spend some time to reflect on various aspects of your life. How are you managing your time and resources, how are you managing your relationships, how are you managing your feelings and emotions, how are you managing your desires. If the answer to any of these questions is a no, then probably you have not figured out the secret of success. There is no way you can succeed at one thing, while you are failing at all others. Success is a holistic approach to life. You either know how to succeed at everything or you don’t. When you study the lives of those who have succeeded in your chosen field, don’t just study their success in that particular area; study their entire life. There is a part of you that gets imprinted on everything, and there is a part of everything that gets imprinted on you. You have to observe each and every aspect of your life to make the necessary changes to move towards success. Your life is a house with many rooms. Even if one of the rooms is not clean, the whole house will stink. Your approach to success cannot be just about keeping one particular chosen room clean; you have to take care of all other aspects as well. Anyways, how long do you think you can keep your hall clean, if you have a dead rat in your room! The single most important reason why people fail is because they are too obsessed with just one particular area of their life and they ignore all others. They forget that they cannot succeed at one thing while failing at others. Eventually all the things you have ignored will catch up on you. This doesn’t mean that you stop preparing for your exams till, your friends, family, girlfriends and neighbors are all happily settled in life. Only one goal should get all your attention, and for that to happen you cannot leave too many loose ends. You have to clear out the unwanted distractions so that you have all the time and energy to accomplish that one all important goal of yours. “The articles are a copyright of The Ahamo Movement and IASBABA.” Read more such articles– Click Here

IASbaba’s Daily Current Affairs – 23rd April, 2016

Archives   IASbaba’s Daily Current Affairs – 23rd April, 2016   ECONOMICS   TOPIC:  General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General Studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.   Need of the hour: Inclusive growth of small enterprises Background: Small enterprises are the best bet right now to create the millions of jobs that India needs to create every year if it is to maintain social stability. New data released by the Reserve Bank of India last week provides a good glimpse into how small enterprises are the champions of the Indian growth story right now. The data on 237,398 small private limited companies that are neither owned by the government nor are in the business of financing shows that output by these enterprises has been growing faster than the underlying nominal gross domestic product. This is in contrast to the more sluggish growth in the 5,788 listed companies whose financial performance dominates public discourse—especially the over-leveraged giants that are so important in the various stock market indices.   What is a micro, small and medium enterprise all about? Two classes of enterprise –manufacturing and service are recognized by the MSME (Micro, Small and Medium Enterprises) Act of 2006. The MSME Act 2006 provides the legal framework for recognizing the concept of enterprise, facilitating its development and enhancing its competitiveness. These can be defined as micro, small and medium depending upon their investment levels. A manufacturing enterprise is termed as micro small and medium based upon its investment in plant and machinery – up to Rs. 25 Lakhs for Micro, Rs. 25 lakhs to Rs. 5 crore for small and Rs. 5 crore to Rs. 10 crore for Medium Enterprise. For a service enterprise, an investment in equipment up to 10 Lakh qualifies as micro, Rs. 10 Lakh to 2 Crore as Small and Rs. 2 Crore to 5 crore as medium.   Why India needs vibrant small enterprises? Small enterprises account for less than a tenth of GDP but nearly 45% of industrial output and 40% of exports. Small enterprises employ an estimated 60 million people because small enterprises generally have lower capital intensity. Data from the Organization of Economic Cooperation and Development shows that even the US is not an exception: small and medium enterprises made up 98.9% of its total enterprises in 2005 and were responsible for 57.9% of jobs in that country. The recent economic census showed that India has millions of tiny enterprises that seem to have absorbed the millions who have left farming out of desperation. What was the growth story of small enterprises in recent past? India had tried to encourage small companies after the 1970s with the help of two barriers of protection. Firstly the ridiculously high levels of import tariffs for the entire economy. Secondly, reserving the production of certain goods for small companies. These two policies created inefficient small firms that were neither capable of scaling up nor facing global competition after the 1991 reforms.  A government committee headed by T.K.A. Nair, in its 2010 report, identified credit constraints as one of the key problems faced by small enterprises. It remains to be seen whether new institutions such as MUDRA Bank can open up credit markets for small enterprises. What are the recent initiatives take by government to encourage Small enterprises? India Aspiration Fund (IAF): India Aspiration Fund (IAF) would invest in venture capital funds for meeting the equity requirement of MSME start-ups and for this the initial corpus of Rs. 2,000 crore has been set. Life Insurance Corp. of India (LIC) will be a partner and co-investor in this fund.   SIDBI Make in India Loan for Enterprises (SMILE): It is a debt-fund which will carter soft term loans to MSMEs to meet debt-to-equity norms and pursue growth opportunities. SIDBI has set Initial corpus of Rs. 10, 000 crore under SMILE fund.   Scheme of Fund for Regeneration of Traditional Industries (SFURTI): To develop clusters of traditional industries in various parts of the country over a period of five years commencing 2005-06 To make traditional industries more competitive with more market-driven, productive, profitable and sustained employment for traditional industry artisans and rural entrepreneurs To strengthen the local governance systems of industry clusters, with the active participation of the local stakeholders, so that they are enabled to undertake development initiatives by themselves   Prime Minister Employment Generation Programme(PMEGP) A credit linked Scheme to facilitate participation of financial institutions for higher credit flow to micro sector. Its objectives are to generate continuous and sustainable employment opportunities in Rural and Urban areas of the country through start-ups.   Connecting the dots: Can inclusive growth of small enterprises is considered as means to generate jobs and elevate people out of poverty? Comment. What is a micro, small and medium enterprise all about? Mention the recent initiatives taken by the government to encourage small enterprises and also throw light on how can these small enterprises add value in a big way to India’s growth story?   MUST READ India – U.S- Realism of the second year Hindu Related Articles: India- US relationship- a Strategic Imperative   Growing cracks in the U.S.-Saudi alliance Hindu   On going beyond Bommai - Uttarakhand High Court’s verdict on President’s Rule Hindu Related Articles: Article 356—Arunachal Pradesh: Is President’s rule being misused?   No proof required- GDP debate: RIP- Now that the new GDP data have implicitly received the RBI good housekeeping seal of approval, perhaps we can all move on to more challenging appraisals of the Indian economy Indian Express   Going on 60- Policymakers and politicians can no longer afford to ignore India’s rising elderly population Indian Express   India among 170-plus countries to sign Paris climate deal- The move marks a major step for beginning work on cutting down greenhouse gas emissions to combat global warming Business Standard Related Articles: The Balancing Act: Paris Agreement India’s Carbon Caution in Paris   Villains or victims ? The parliamentary panel’s blanket decrees on celebrity endorsements may end up penalising the innocent Business Line MIND MAPS   1. Traditions Vs Constitutional Principles

IASbaba’s Daily Current Affairs – 22nd April, 2016

Archives   IASbaba’s Daily Current Affairs – 22nd April, 2016   ECONOMICS   TOPIC:  General Studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development ; Banking & related issues Inclusive growth and issues arising from it. General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Issues relating to poverty and hunger.   Waging a minimum wage battle in the labour market Background: Welfare economists support minimum wages for their redistribution effects. Mainstream economists argue that minimum wages drive down demand for labour by companies. And—especially relevant to India—minimum wages coupled with rigid labour laws send firms scurrying outside the regular formal job market. As per recent Economic Survey, firms thus hire contract labourers at suboptimal rates, which reduces the chances of a Pareto improvement ( A pareto improvement is a neoclassical economics, an action done in an economy that harms no one and helps at least one person.) In this context, the executive decision by the government to provide a minimum wage of Rs.10,000 per month to contract labourers. However, the policy has come a step “closer to universal wages” rather than minimum wages. What is 'Minimum Wage'? Minimum wage is the minimum amount of compensation an employee must receive for performing labor. Minimum wages are typically established by contract or legislation by the government. As such, it is illegal to pay an employee less than the minimum wage. The minimum wage attempts to protect employees from exploitation, allowing them to afford the basic necessities of life. The minimum wage rate fluctuates between countries, and sometimes between states or provinces.   Why Minimum wage is important? Minimum wages help in lifting people out of poverty, helps low-income families make ends meet and narrows the gap between the rich and poor. The wages payable to contract workmen right now cannot be less than the rates prescribed under the Minimum Wages Act 1948. But this is restricted to just 45 economic activities. What are the recent trends? Policy has come up to have universal wages rather than minimum wages. Minimum wage widens the wedge between the two wage rates, by taking care of permanent employees and contract workers, whereas universal wages involves paying an optimal amount to every employed person. Economic Survey estimates that wages are on an average 20 times higher in the formal sector than the informal sector in India. The new minimum wage for contract labour, an integral part of the informal sector, seeks to fix this wedge, at least partially. According to an estimate by V.V. Giri National Labour Institute, only 16.6% of the informal sector gets covered under the existing Contract Labour (Regulation and Abolition) Act, which deals with the wage norms of contract labourers among other things. What are the concerns plaguing labour market? The Article 246 (with 7th schedule) of the Indian constitution puts the issues related to labour and labour welfare under the concurrent list. However, the exceptional matters related to labour and safety in mines and oilfields and industrial disputes concerning union employees come under Union List. The irony of putting labour in concurrent list is that today we have around 47 central labour laws and 200 state labour laws. For instance: We have separate laws for cine workers, dock workers, motor transport workers, sales promotion employees, plantation labour, working journalists and workers in mines. There are varied definitions on child, contract labour, wages, employee, workman, factory, industry, etc. Though most of these laws are archaic, yet many of them are relevant for welfare of the labourers. Contract workers have over the years become a way to circumvent India’s rigid labour laws. The Economic Survey duly notes that contract labour is growing rapidly in states with more rigid labour laws, despite it not being the preferred first option for most firms due to the contracting costs involved. The new executive order will bring an amendment to Rule 25 of the Contract Labour Central Rules will be in favour of workers but apprehensions doing rounds is that the move would restrict workers to the informal sector rather than helping them move into the formal sector.   Way ahead: Labour reforms in areas such as industrial relations, small factories and employee’s provident fund must be coupled with job creation to fix the issues of unemployment and underemployment and facilitate the ease of doing business. While ensuring contract workers’ financial security is important and it is equally necessary to pursue labour reforms that can facilitate a faster transition to the formal sector. A reformed labour market is also a prerequisite for the success of Make in India and improving the ease of doing business, and not a substitute to job creation. Broader interests of the employers and the workers should be taken into consideration, to use contract labour in non-core activities and also to some extent in core activities. The first requirement is to have a clear distinction between core and non-core activities. Multiplicity of the labour laws should be addressed. Unification and harmonization of the labour laws should be done. As employment is in the concurrent list of the Constitution, the support of the states is also crucial for securing a flexible, transparent, thriving labour market. In fact, the minimum wage determination for contract labour should be left to the discretion of the states as part of cooperative federalism. Connecting the dots: Minimum wages only treat the symptoms of a struggling labour market but the cure would be to entail a more flexible labour market. Comment Will fixing a minimum wage for contract labour resolve labour market issues? Elucidate.   NATIONAL   TOPIC:  General studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation; Governance Issues General studies 3 Science and Technology - developments and their applications and effects in everyday life    ‘Surge pricing’ Economics - A misguided ban in Delhi Surge pricing is essentially an algorithm-based mechanism that determines fares based on supply and demand Based on sound economic theory— App-based services match demand ("riders") with supply ("taxis")— Both are variables, depending on external factors such as time of day, location of pick-up and drop-off, as well as traffic conditions. Thus, if high demand exists in one area without matching supplies, Uber's (and Ola's) surge/dynamic pricing mechanism ensures greater supply to meet an increase in demand (signalling mechanism for both drivers and riders) Credibility— The economics behind matching is what earned game theorists Alvin Roth and Lloyd Shapley their Economics Nobel in 2012 Other Transportation— Airlines have the flexibility to raise fares depending on demand, subject to a cap Railways sets aside some seats for those willing to pay more, based on the knowledge that demand generally outdoes supply when it comes to train tickets.   Aggregators & the new Economy— Use modern technology to disrupt the traditional, and often moribund, market Have succeeded by bringing in efficiencies in both cost and convenience, which have been central to their popularity Utility of the services— More taxi options Reduced prices Drivers under an aggregator’s brand earn more on an average than they would otherwise No fear about monopoly operations by multinational players Ban on surge pricing—Misguided: Odd-even dimension: The surge pricing ban has flowed from the imposition of the odd-even licence plate rule, which has increased the demand for taxis. A steady supply of transport vehicles to allay any disruption to lives and livelihoods is necessary and such a diktat, at this time is almost like straddling a fine line between incomprehensibility and inconvenience. Cancelling or capping surge pricing will not only lead to a disruption in cab services in the city, it is also poised to meddle with livelihoods that are dependent on these transportation services. Has proven to be counterproductive—the number of taxis plying on Delhi’s roads has dropped Politically Incorrect: the signal the Delhi government has sent is that if the private sector wishes to operate in Delhi, it is subject to government interference and control (Core vote banks be troubled) (how retrograde politics compromises public interest) Consequences for drivers operating, and commuters living and working on Delhi's periphery— Without dynamic pricing, which allows drivers from outside the city to compensate for the long distances, the number of taxi operators coming into the city from these areas would be limited; it would also push existing supplies towards areas where no such laws exist. The curious case of taxi unions and auto-rickshaw drivers— a large vote bank, which is demanding a revision of fares Odd-even experiment: Would directly benefit this section by increasing public dependence on public transportation Collapse of private companies like Uber and Ola will give these unions the opportunity to regain monopolistic tendencies - the same tendencies that gave many taxi and auto operators powers to arbitrarily set prices based on distances, time and moods – force the public to accept the proposed fare hikes for auto-rickshaws in the event of the odd-even formula becoming permanent Alternate Solutions-At a glance: Enhance options in terms of Better modes of public transport, Greater frequency of bus and metro services during rush hour Adoption by mass transport of applications using similar algorithms to allow passengers to plan their commute better Enhance public awareness about how these algorithms work in commuters’ favour Cap surge pricing to a predetermined multiple of the regular rate   MUST READ The underbelly of India’s silicon valley-What happened in Bengaluru this week has a lesson for every Indian city. It’s a warning that growing disparities must be addressed urgently Hindu Related Articles: Employees’ Provident Fund (EPF) Tax- Is it a Healthy proposal?   Reasons and excuses for violence Hindu   Paris treaty: a lot of cost for doing very little Hindu Related Articles: The Balancing Act: Paris Agreement India’s Carbon Caution in Paris   Grain of truth- Punjab’s wheat payment crisis strengthens the case for direct transfers in MSP operations. Indian Express   The right reply- High court scraps president’s rule in Uttarakhand. The Centre must heed the message. Indian Express Related Articles: Article 356—Arunachal Pradesh: Is President’s rule being misused?   Modi government’s Vodafone moment-Arbitrarily invalidating private contracts, as with Bt cottonseed royalties, will dissuade investors Indian Express   Innovation in priority sector lending- It has the potential to increase efficiency in banking without sacrificing on larger inclusion and equity goals Live Mint MIND MAPS 1. Irrelevance of Sedition