Mar 12, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 12th March, 2016

Archives   IASbaba’s Daily Current Affairs – 12th March, 2016   INTERNATIONAL   TOPIC:   General studies 2 India and its neighborhood- relations.  Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.  Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora. Important International institutions, agencies and fora- their structure, mandate.   Mexican opportunity for India India-Mexico relations have consistently been friendly, warm and cordial, characterised by mutual understanding and growing bilateral trade and all-round cooperation. Though antipodes on the globe, they have striking similarities and commonalities - of geography, history, physiognomy, culture and civilisation, even of attitudes, mindsets and values of the people. Why Mexico matter to India? The position of Mexico in Latin America is of great importance to India. Mexico is a natural gateway for India to dive into one of the most dynamic regions in the world. Latin America is home to a potential market of 525 million people and includes three G-20 economies. It’s an important region for India’s energy security, providing at least 16 per cent of India’s crude oil import. Venezuela, Mexico and Brazil are among the top oil providers to India. As resource-rich countries, Latin America is filled with potential partners for renewable energy projects. The region is undertaking interesting projects like the Pacific Alliance, an integration initiative between Mexico, Chile, Colombia and Peru. It’s one of the most ambitious agreements of its kind and would constitute the eighth-largest economy and seventh-largest exporting entity worldwide. India is already involved with the Pacific Alliance as an observer.   Mexico: An exciting place to do business The Indian private sector is discovering that Mexico is an exciting place to do business. Approximately 60 Indian companies, mainly from the automotive, pharma and IT sectors, have invested in Mexico and have benefited from its position as part of two economic blocs. Mexico is a member of the North American Free Trade Agreement (NAFTA) and has agreements with most Latin American countries. Mexico is committed to free trade. Mexico has FTAs with 45 countries and recently joined the Transpacific Partnership Agreement (TPPA). It is the largest Latin American investor in India, with an influx of almost $1 billion during the last six years, comprising several Mexican companies that have made India their home in sectors such as auto-parts and entertainment. An opportunity for India to learn from Mexico: Mexico and India face similar challenges which can be overcome by learning from each other. India endeavours to become a world-renowned manufacturing hub through its Make in India programme, an effort in which Mexico already has some experience. During the 1970s, the launch of a “Made in Mexico” campaign allowed Mexico to position the country as a competitive manufacturing location. Today, half of all Latin American advanced manufactures are produced in Mexico and country ranks as the main exporter of flat TV screens and medical devices, the fourth exporter of light vehicles and auto-parts and the sixth supplier to the American industry.   Mexico and India also have a stimulating scientific and technological relationship, dating back to 1975. Through joint committee on these matters, both countries are encouraging research that will have important implications for understanding and advancement of topics such as biotechnology and health, seismology, solar energy and water resources. The implications go beyond research papers, and will surely have repercussions that will benefit populations’ way of life, economies and even security. Additionally, Mexico is mindful of the recent accomplishments of ISRO. Since 2014, Mexican space agencies have held a productive dialogue and are beginning to work on disaster management techniques to be used during geological phenomena like cyclones, floods and earthquakes.   Tourism: A powerful tool to bridge bridges In the new era of India- Mexican partnership, people-to-people contact should be made even stronger. Many believe in tourism as one of the most powerful tools for building bridges and as an engine of development. Last year, Mexico received more than 52,000 Indian visitors, a 52 per cent increase since 2013, and Mexico want to do even more. Mexico has a great variety of attractions like beaches, colonial cities, natural scenery, cultural diversity and ancient history, and it hope Indians get to see Mexico as a warm country that always receives its visitors with open arms.   Way ahead: Mexico wants to take longstanding friendship with India to the next level and take advantage of the realm of opportunities at their disposal. It is left to the foreign policy of the present government, as to how it takes forward the extended friendship from Mexico. Connecting the dots: Mexico is Indian gateway to Latin America. Critically analyse the statement wrt India Mexican relations.   NATIONAL TOPIC:   General studies 2 Indian Constitution- historical underpinnings, features, amendments, significant provisions and basic structure. Parliament and State Legislatures – structure, functioning, conduct of business, powers & privileges and issues arising out of these   Sponsored Amendment to the Motion of Thanks Rajya Sabha has adopted an Opposition-sponsored amendment to the Motion of Thanks on the President’s Address; being the second one in a row. 2015: The Motion of Thanks was amended on the issue of black money 2016: The Motion of Thanks amendment focussed on legislation passed by Bharatiya Janata Party governments in Rajasthan and Haryana The legislation limits the rights of citizens to contest panchayat elections (depriving almost 50 per cent of the population from contesting elections) The new rule disqualifies many poor rural women who have not had the benefit of education, from contesting elections, a basic right. Motion of Thanks: The President makes an address to a joint sitting of Parliament at the start of the Budget session, which is prepared by the government and lists its achievements It is then, discussed by both the Houses of Parliament, amendments may be suggested and put to vote (Motion of Thanks) This Motion must be passed, failing which it amounts to the defeat of the government leading to resignation   Would they have to resign if passed in the Rajya Sabha— No, but it has the potential to undermine the government’s ability at consensus-building This signals the fact that ‘Rajya Sabha’ cannot be taken for granted and the government in power should work hard to reach out to the Opposition and forge a working consensus on the legislative agenda. History: 1980: First instance; on the issue of engineering defections 1989: Six amendments— including on the Ram Janmabhoomi-Babri Masjid dispute and the India-Sri Lanka accord — were approved 2001: The House adopted an amendment on the sale of a public sector undertaking, Balco, to a private company.   Connecting the Dots: India needs a quantum jump, not merely incremental progress. Discuss Has the Haryana and Rajasthan Acts undressed the deficiency in the 73rd and 74th amendment as well as the deficiency which lies in Article 243(F) of the Constitution? Critically examine.   MUST READ The return of paternalism Hindu   Respect for nature is devotion Hindu   The US continues to stumble on Pakistan- The transfer of F-16s is meant to appease the army generals in Rawalpindi Live Mint   Vijay Mallya story is more about our easy embrace of cronyism- It exposes how we have built a giant power nexus where contacts and networks weigh more than balance sheets Business Standard MIND MAPS   1. Customs duty on drugs - Not a bad thing

Mar 11, 2016 AIR

All India Radio - Bad Debt Crisis in PSU Banks

ARCHIVES   BAD DEBT CRISIS IN PSU BANKS   The NPA’s in PSU banks has been spiralling since 2009. With almost 4.5 lakh crores bad debts at stake PSU banks are facing a crisis like never before. As per RBI data the five sub-sectors; infrastructure (which includes power generation, telecommunications, roads, ports, airports, railways [other than Indian Railways] and other infrastructure), iron and steel, textiles, mining (including coal) and aviation services contribute significantly to the level of stressed advances.   Reasons for increase in bad loans Slowdown in recovery in the global economy, uncertainty in the global markets. Sluggishness in the domestic growth during the recent past. External factors including the ban in mining projects, delay in environmental related permits affecting power, iron & steel sector, delay in collection of receivables and aggressive lending by banks during good times”   Why bad loans is a bad sign The high levels of NPAs indicates that India’s economy is not in great shape, Of 26 public-sector banks (nationalised Banks and the SBI Group), 19 reported Gross NPAs of 5% or more in the latest quarter (refer table below). Second to grow, banks need to raise fresh capital. High levels of NPAs mean weak fundamentals and poor valuation in the stock market, hurting their ability to raise funds for growth. This, again, means insufficient capital to make additional loans In comparison, private-sector banks seem to have done a much better job of managing risks. Private-sector lenders operate in the same space under the same economic factors as the public sector banks. Emulating their risk-management practices would appear to be top priority for government banks.   Way forward: Taking various steps for quicker recognition and resolution of stressed assets. Banks should carry out lending on the basis of objective and due diligence without being unduly conservative, in a completely transparent manner without fear or favour. Taking initiatives like, constituting a Board level Committee for monitoring of recovery, appointment of Nodal officers for recovery at the Head / Zonal Office / for each DRT, conducting special drives for recovery of loss assets, putting in place guidelines for early warning system, designating ARCs as Authorised Officers. Tightened norms to Asset Reconstruction Companies, increasing the minimum investment in security receipts to 15% from 5%. Early passing of Bankruptcy law. Name and shame policy of will full defaulters. Ruling of courts/Debt recovery tribunal should be implemented very quickly.  

Mar 11, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 11th March, 2016

ArchivesIASbaba’s Daily Current Affairs – 11th March, 2016NATIONALTOPIC:  General studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation.  Important aspects of governance, transparency and accountability The Real Estate Bill In order to regulate the real estate sector, the Rajya Sabha has cleared the Real Estate Regulatory Bill. Real estate contributes nine per cent to the national GDP and the Bill’s passage was seen as crucial to ensuring better regulatory oversight and orderly growth in the industry. The Bill puts a mandate for the developers to deposit, in a separate account, 70 per cent of the project’s cost – inclusive of land and construction cost. This is in opposition to the deposit of 50 per cent of the construction cost recommended by the Parliamentary Select Committee Global Real Estate Transparency Index compiled by property advisory JLL in 2014— India falls in the ‘semi-transparent’ category; India’s tier-I property markets ranked 40th in the list, while the tier-II cities are at 42nd position The UK and the US topped the list in the ‘highly transparent’ categories. The 70% figure: Will ensure that builders do not squander away this amount for any other purpose, apart from construction Developers can pump in a major part of the sales proceeds into lucrative deals for purchase of more land, instead of focusing on completion of the respective project In case of metropolitan cities, the land cost makes for a large chunk of the total project cost and according to the bill, developers can withdraw the money stipulated to this, leaving behind a meager amount in a separate account for taking care of the construction The bill allows for a one year extension to the builders for completion of the project What is good about the bill? Will lead to regularisation of the real estate industry, bringing relief to consumers and other stakeholders Enhanced credit flows will enrich the industry Developers may get rid of exorbitant borrowing costs owing to the infrastructure status, that may be granted by Ministry of Finance after enactment of this bill Ensure efficiency in all property related transactions and improve accountability of developersKey highlights:Laws— Setting up of Housing Regulatory Authority and Appellate Tribunal(s) within each state and within six months’ time, rules will have to be made by the state governments for its functioning. At every level, it has to be ensured that cases are cleared within 60 days This legislation will apply to all projects that have yet not received a completion certificate and have an area of more than 500 sq. m or have over eight flats It will be mandatory for the projects to be registered and the regulator’s website should have all the necessary public disclosure of details related to each project; in addition, a quarterly progress report will have to be made public on the website If a developer does not receive a response on his application within one month, the project will automatically get registered Mandatory for every real estate agent to be formally registered A committee having the Chief Justice of High Court, the law secretary and the housing secretary will be selected by the members and chairmen of appellate tribunals as well as regulatory authorities Projects beyond the coverage of urban areas will also come under the regulator’s purview In case a project completion is delayed for genuine reasons, an extension of maximum one year can be granted by the authority If the builder fails to observe orders given by the appellate tribunal, they may face imprisonment of up to three years and/or attract monetary fines. In case of buyers and estate agents, the imprisonment will last for one year or/and a monetary fine The matters mentioned in the legislation, cannot be taken up by the Civil Courts. But the aggrieved parties may still approach various (644 in total) consumer courts. In case of dissatisfaction from the ruling passed by the tribunal, the party can approach the High Court within 60 daysThe Pact— A model pact between consumers and developers will have to be provided If a developer engages in fraudulent activities, it can lead to revocation of the registration and in case like these, the project’s account may be frozen and the money can be utilised for its completion If builders are unnecessarily delaying the possession, they will be liable to pay interest equivalent to what they levy on buyers who default In order to make changes to the original plans, permission of two- thirds of the buyers is mandatory, irrespective of sanctions received by the planning body It is obligatory for the developers to get their projects insured Passage of property to home buyers within three months is compulsory Till five years after completion, any structural defects are the developer’s liability After three months of majority units being allotted, the buyers will have to form an association within three months, which will take care of the common facilities and areas Steps will be taken to implement Single window project clearance, project grading and digitisation of land recordsIASbaba’s Views: Industry figures available for the last seven years show that of the 25 lakh residential projects launched in eight cities in the country, 88 per cent have been delayed. Thus, the demand of the Bill to be a pro-consumer measure is an important characteristic. For instance, the builders will be granted a one-year additional extension to finish their projects but at the same time, some punitive measures need to be introduced so that this one-year extension is not sought needlessly. The Bill formulated should work upon weeding out malpractices and unscrupulous builders from the industry. These measures will help in bringing transparency and lead to projects getting completed on time since the punitive measures include imprisonment of builders.Connecting the Dots: Is the inclusion of the land cost as a part of 70% rule— a real-time possibility for the future of the Real Estate business in the country? DiscussNATIONALTOPIC:  General studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation.  Important aspects of governance, transparency and accountabilityNew regime in oil and gas exploration The Union Cabinet, chaired by the Prime Minister, has approved the Hydrocarbon Exploration and Licensing Policy (HELP).Main facets of the policy:Four main facets of this policy are: Uniform license for exploration and production of all forms of hydrocarbon: This will allow energy companies to produce whatever form of hydrocarbon is available from a licensed block—coal bed methane, shale gas/oil, tight gas and gas hydrates etc without seeking separate permission for producing each of the fuels. An open acreage policy: Under this companies can bid to explore certain blocks and then the hydrocarbons regulator will subsequently examine their geological findings. This means that companies can start to look at blocks that have not already been put out for bidding by the government. Easy to administer revenue sharing model: The government has prospectively replaced the existing profit-sharing arrangement in hydrocarbon exploration with a revenue-sharing formula. The revenue-sharing formula may help prevent future disputes over pricing and cost recovery of the kind the government has been embroiled in with Reliance Industries Ltd (RIL). Marketing and pricing freedom for the crude oil and natural gas produced:How will the new policy help? The policy will enhance domestic oil & gas production, bring substantial investment in the sector and generate sizable employment. The policy is also aimed at enhancing transparency and reducing administrative discretion.The policy eases doing business in India: Present fiscal system of production sharing based on Investment Multiple and cost recovery /production linked payment will be replaced by a easy to administer revenue sharing model. The earlier contracts were based on the concept of profit sharing where profits are shared between Government and the contractor after recovery of cost. Under the profit sharing methodology, it became necessary for the Government to scrutinize cost details of private participants and this led to many delays and disputes. Under the new regime, the Government will not be concerned with the cost incurred and will receive a share of the gross revenue from the sale of oil, gas etc. This is in tune with Government’s policy of “Ease of Doing Business”.In tune with policy “Minimum Government –Maximum Governance”: Recognising the higher risks and costs involved in exploration and production from offshore areas, lower royalty rates for such areas have been provided as compared to NELP royalty rates to encourage exploration and production. A graded system of royalty rates have been introduced, in which royalty rates decreases from shallow water to deepwater and ultra-deep water. At the same time, royalty rate for on land areas have been kept intact so that revenues to the state governments are not affected. On the lines of NELP, cess and import duty will not be applicable on blocks awarded under the new policy. This policy also provides for marketing freedom for crude oil and natural gas produced from these blocks.  This is in tune with Government’s policy of “Minimum Government –Maximum Governance”.Connecting the dots: Critically examine the problems associated with oil and natural gas sector in India along with measures taken by the government to overcome them. Critically evaluate the provisions of the proposed new Hydrocarbon Exploration and Licensing Policy (HELP).MUST READ Azaadi from a colonial rule bookHinduRelated Articles:Sedition: An unconstitutional toolFor Detailed Analysis on ‘Section 377’, refer the followinghttp://iasbaba.com/2015/09/iasbabas-daily-current-affairs-18th-september-2015/http://iasbaba.com/2015/06/iasbabas-daily-current-affairs-30th-june-2015/ Cyber security- Internet of Things creates new avenues for attacksHinduRelated Articles:Upgrading India’s cyber security architecture They dare to hate this minority - How is it that a religious objection to freeing India’s LGBT community can pass muster in a democracy?HinduRelated Articles:The LGBT agenda in India Lobbed into tennis’s courtHindu The rot in drug regulationBusiness StandardRelated Articles:Drug Pricing: Critical Illness—A Gold minePharmaceutical Sector: India’s Drug Policy Private schools fill just 15% of 2.2 mn seats reserved for poor students-In 2014-15, only 346,000 seats were filled out of the total available seats under Section 12(1)(c), reveals an IIM-A surveyLive MintMINDMAPS1. What China's rise means for India?

Mar 11, 2016 IASbaba's Monthly Current Affairs Magazine

IASbaba Monthly Magazine- FEBRUARY 2016

Hello Friends This is the NINTH edition of IASbaba’s Current Affairs Monthly Magazine for UPSC Civil Services Examination. This edition covers all important issues that were in news in the month of FEBRUARY 2016 Click on the image to download the file

Mar 11, 2016 RSTV Video

The Big Picture - Legislative Backing for Aadhaar: How will it help?

ArchivesThe Big Picture - Legislative Backing for Aadhaar: How will it help? The Narendra Modi government introduced the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 in the Lok Sabha on Thursday. The legislation seeks to provide statutory backing to Aadhaar and enable targeted delivery of subsidies and other benefits to the intended beneficiaries.The Bill was introduced as a money Bill in the Lower House as it can be tabled and passed only in the Lok Sabha. However opposition parties have expressed concerns about calling Aadhar as Money bill. The issue of privacy has also been one of the sticky points in this regard. The article briefly deals with the issues involved.What makes the Aadhaar platform suitable for direct benefit transfer? It is transparent and has the potential to eliminate leakage. It does so by assigning a unique identity number to each resident. The identity remains unique because of the inclusion of biometrics like finger prints and iris. The platform offers benefits like portability to the beneficiaries.There are three important issues that are debated around:Tabling the Aadhaar as money bill the government is setting up a dangerous precedent. With this, the Rajya Sabha cannot make amendments to money bill passed by the Lok Sabha and can only make recommendations. It also has to return money bills to the Lok Sabha within 14 days from the date of their receipt, thus ensuring a time-bound process.Privacy concerns around the Aadhaar project have been numerous, given that it requires the use of biometric information such as fingerprints and iris scans of citizens. Critics claim that without appropriate checks and balances, this information isn’t secure, and that it can be misused by the state itself—to profile people. There needs to have a effective robust law to protect privacy of the citizens.The efficacy of biometric finger print is another issue that is not properly addressed. UIDAI in its various reports has come up with certain glitches that it faced during taking biometric details of a person. There are instances where people (especially in Villages) fail get proper thumb impression, apparently making them not eligible for subsidies. The government should come up with innovative solutions to address this issue.Of course the process of moving over to an Aadhaar-enabled system may have its own set of complications. But they are not going to be insurmountable. The government must ensure that Aadhaar’s coverage extends to the poorest sections of the society so that they are not excluded from the subsidies.Mains Question:Q.1) Recently government tabled Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 as a money bill in the Lok Sabha thus completely bypassing Rajya sabha. Do u think this act of the government is harmful for the fedarilism of India. Comment.Q.2) Address the outstanding issues associated with converting Aadhar in to an Act of Parliment?

Mar 10, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 10th March, 2016

ArchivesIASbaba’s Daily Current Affairs – 10th March, 2016NATIONALTOPIC:  General studies 1 Salient features of Indian Society, Diversity of India. Social empowerment, communalism, regionalism & secularism.A tale of two communalisms On February 18, 1983, 2,191 Muslims, mainly women, children and the old, were hacked to death with machetes and daggers in Nellie, Assam. For a massacre of genocidal proportions, not a single person has been brought to book in 33 years. Nellie does not even exist in the public memory. The tragic irony is that a nation threatened by anti-national slogans in not threatened by actual slaughter, whether it is Nellie, Delhi 1984, Gujarat 2002 or Muzaffarnagar 2013.Majoritarian logic present in India: The majoritarian logic is based on the premise that the majority religious community can commit any act of mass violence, but that will not be anti-national. What is anti-national is only minority violence. This logic was clearly evident in the response to the Malda riot in January, something that acquires criticalness with the looming West Bengal elections.Emergence of two communalism: The aftermath of Malda riot, saw the emergence of Hindu majoritarian communalism and Muslim minority communalism and thesecularism was termed as merely pseudo-secularism.Equalising the unequal: There is a growing demand within the country to equalise the two communalisms and to stop the communal tensions and riots between the two communities. However it is precisely this demand for equivalence that is dangerous at the moment, for it ignores some fundamental distinctions between the two types of communalism. First, it equalises what cannot be equalised, for equality is not the equal treatment of unequal entities. And second, it participates in the increasing conflation of Hindu communalism with nationalism.Comparing the two communalisms: Minority communalism can never be compared with majority communalism, for the former is ghettoised and mainly feeds upon its own people (think the ulemas and Shah Bano), the very people it claims to represent, while the latter thrives by feeding off the society at large, including the minorities. Other than the brute power that being 80 per cent of the population brings, majority communalism is infinitely more consequential for it determines the socio-political discourse, leaving minority communalism to defend itself and ghettoise further.Dangerous majority communalism: Majority communalism, dangerous in itself, becomes deadly when it becomes the official ideology of the Indian state, as the Sangh Parivar would want it to be. Minority communalism can never dream of state power. Here Jawaharlal Nehru’s words are valid even now: both Hindu and Muslim communalism are bad. “But Muslim communalism cannot dominate Indian society and introduce fascism, that only Hindu communalism can.” Therefore whether it is the communal riots of Gujarat, Moradabad, Bhagalpur, Bombay or Muzaffarnagar, the overwhelming number of those killed are Muslims. Thus it is counterintuitive for the minority Muslims to provoke riots, for they would be the primary victims, as fatalities and as refugees in camps.Second class citizens: The Indian Muslim today feels like a second-class citizen, an emotion which can only be understood by looking at intolerance as discrimination at a quotidian level (for example, the state witch-hunt through draconian anti-terror laws). No society built on religious discrimination or of caste oppression can be termed as tolerant. But what is new after 2014 is that this now mixes with the ballast of state-backed Hindutva, which sees the Muslim as well as the politically radical Dalit (RohithVemula, for instance) as dangerous anti-nationals.The above trend is very dangerous for the political social and economic framework of the country along with its unity in diversity.Way ahead: Only a coalition of the oppressed castes, classes and gender across religions can overcome communalism. But that struggle for secularisation has to go along with the resistance to the majoritarian attempt to equate majority and minority communalism. The scourge and cycle of communal hatred and violence can be stopped only by ending first the history of false equivalences and selective silences.Connecting the dots: Explain the difference between communalism and fundamentalism along with measures taken by the government to check communalism in India. INTERNATIONALTOPIC:General studies 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.  Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora. Important International institutions, agencies and fora- their structure, mandate.General studies 3: Infrastructure- Energy Relations require strengthening—Energy Benefits to India The S.-Japan-India trilateral has gained momentum in recent years, with regular meetings and a variety of collective exercises; but much needs to be done on the ground limited to some meetings and naval exercises only) This quadrilateral relationship is typically depicted in defence terms but what remains insignificant is the fact that a closer relationship between these four key democracies can also boost India’s tenuous energy security in a big way.The Energy Appetite: For Indian economic growth to return to double digits, energy supplies must increase by three to four times over the next few decades Deficits being immense, India is thriving on overseas energy for sustenance—Imports: 80 per cent- Oil 20 per cent-Coal; we have witnessed the coal imports increasing by as much as 56 per cent in a single year 40 per cent: Uranium As well as increasing imports of Natural GasImport-dependent energy policies: Fraught withGeographical Risks: Most of India’s hydrocarbon imports come from unstable or faraway regions Two thirds of its oil comes from West Asia, and distant Venezuela The gas-rich Central Asia- Holds the key to India’s security needs as well Pakistan’s denial to grant India transit rights to Afghanistan- no direct access to the region Has secured some cooperation with Kazakhstan w.r.t. ‘Uranium’ (9th ranking oil power; much remains undiscovered) Turkmenistan: World’s fourth largest gas giant-home to Galkynysh gas field Tajikistan- Asia’s water giant; can generate 500 terawatt hours of electricity every year Looking forward to developing the Chabahar port in southern Iran for ease of access The lifting of sanctions on Iran following its nuclear deal with the U.S. opens up energy possibilities Burdened by history, trapped by Geography: Regional instability of Afghanistan Increasing competitive importers to make use of Iran energy supplies Pakistan’s creating a dent on the TAPI gas pipeline dream Transportation: Landlocked-mountainous terrains- impenetrable forestsThe entry in the quad—Australia Can provide immense energy benefits to India; Greater research collaborations for effective affordable solutions 4th largest producer of LNG 11th largest known reserves of Natural Gas Expertise in large scale deployment of rooftop solar- ‘A marriage waiting to happen’Building energy efficiency Solar scheduling & forecasting Two way metering and tariffs Joint research in the area of wave energyIndia’s Import Bill w.r.t. Australia comprises of— Sizeable quantities of coal Technology Development- Clean coal technologies-Supercritical-Ultra Supercritical Adopting best mining practices Environment Management: Limiting the emission of harmful pollutants (strict pollution norms issued by MOEF) Development of Skills: Technological-Managerial-Operational Improvement of Safety- Proper training Exploration and cooperation w.r.t Uranium LNG can be a good commodity to capitalise the relations upon- The top current source of India’s LNG imports-Qatar lies in a geographically volatile region and thus, India seeks a more stable relationship as well as supply from the exporter’s end for smooth functioning of the economy Indonesia: Provides India more than 60 per cent of its current coal imports Cultivating deeper relationships with Indonesia will help boost and advance New Delhi’s “Act East” policy; both have committed to reduce carbon emissions by 35% and 29% respectively by 2030 Would also ease the burden on India’s naval forces of protecting energy assets in areas more far-flung than Southeast AsiaIASbaba’s Views For India, it’s very important to not just secure its energy engagement but also enhance and deepen its security cooperation with these countries. This will, strengthen its engagement with U.S and Japan as well. Both Indonesia and Australia are relatively stable countries and would put to rest some of India’s concerns regarding the security of Indian energy assets and imports originating in these two countries Clever diplomacy can help India assert its influence in Central Asia and secure greater access to the region’s abundant natural resources i.e., re-invigorating a diplomatic activism with the CARs, Pakistan and Afghanistan and doing away with logistical complexities. Need to moderate the nationalist rhetoric that antagonizes Pakistan Play a more constructive role in Afghanistan Use the unmatched expertise in setting up refineries as well as fertilizer plants Develop a complementary relationship with Russia though enhanced security cooperation-stabilizing AfghanistanConnecting the Dots: Does there exist an opportunity to make inroads into the energy-rich region ‘Central Asia’? Discuss the major impediments as well as a viable solution to it. MUST READGood economics is good politicsHindu Why India must heed geographyHindu Maria Sharapova and a poser for sportHinduOpening up- There will be women fighter pilots in the Indian Air Force. It’s a watershed moment too long in the makingIndian ExpressOpacity international- Government must not communicate ‘privately’ with multinational interests on intellectual property rightsIndian ExpressGauging the worthiness of Basel III- All the complexity and the increase in capital to comply with it would be justified if it achieved the objective of the taxpayer not having to bail out banksBusiness StandardIn light of DIPAM - Department of Investment and Public Asset ManagementBusiness StandardMIND MAPS1. Why Carbon tax is a good idea

Mar 9, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 9th March, 2016

Archives   IASbaba’s Daily Current Affairs – 9th March, 2016   DEFENCE/SECURITY   TOPIC: General studies 3: Science and Technology - developments and their applications and effects in everyday life Achievements of Indians in science & technology; indigenization of technology and developing new technology.  Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges, basics of cyber security; money-laundering and its prevention.  General studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.    Upgrading India’s cyber security architecture India’s National Cyber Security Policy aims to build a secure and resilient cyberspace for citizens, business and government. However the cyber security architecture in India lacks potential to regulate various cyber-crimes that happen.   Comparing digital space of India and the world: Two things set aside India’s digital spaces from that of major powers such as the United States and China: Design and Density Design: India is a net information exporter. Its information highways point west, carrying with them the data of millions of Indians. This is not a design flaw, but simply reflects the popularity of social media platforms and the lack of any serious effort by the Indian government to restrict the flow of data.    Density: Equally important is the density of India’s cyberspace. Nearly 500 million Indians use the Internet today, but they do not access the Internet from the same devices. Apple’s market share in the U.S., for instance, is 44 per cent, but iPhones account for less than 1 per cent in India. The massive gap between the security offered by the cheapest phone in the Indian market and a high-end smart phone makes it impossible for regulators to set legal and technical standards for data protection.   Digital intrusions: India’s infrastructure is susceptible to four kinds of digital intrusions:  Espionage: Involves intruding into systems to steal information of strategic or commercial value. Cybercrime: Referring to electronic fraud or other acts of serious criminal consequence. Attacks: Intended at disrupting services or systems for a temporary period. War: Caused by a large-scale and systematic digital assault on India’s critical installations. India lacks a national security architecture: Recognising the strategic dimensions of cyberspace, the Prime Minister’s Office (PMO) created the position of the National Cyber Security Coordinator in 2014, however it failed to deliver the various dimensions of cyber security. There is, however, no national security architecture today that can assess the nature of cyber threats and respond to them effectively. India’s civilian institutions have their own fire-fighting agencies, and the armed forces have their own insulated platforms to counter cyber-attacks. Overall India needs an agency to supervise the cyber security aspects. What could such an agency look like?  The first requirement is to house it with permanent and semi-permanent staff that is technically proficient in cyber operations, both defensive and offensive.  India faces a shortage of officers trained in creating and breaking encrypted platforms as well as using digital networks for intelligence gathering. Were such a National Cyber Security Agency (NCSA) to be created, it should have a functional “nucleus” or secretariat. The second requirement is to coordinate the agency’s policy functions and operations. The current cyber security policy, articulated in 2013 by the Ministry of Communications and Information Technology, is basically a statement of first principles. The NCSA should be guided by a document outlining India’s cyber strategy, much like its nuclear doctrine. India should not hesitate to build its offensive cyber capabilities. This would involve the development of software designed to intrude, intercept and exploit digital networks. The deployment of cyber weapons is not a low-cost affair, as the digital trail allows adversaries to track and possibly predict the development of future technologies. Nevertheless, a cyber-arsenal serves the key function of strategic deterrence. India’s cyber command should be the primary agency responsible for the creation and deployment of such weapons. Way ahead: A fully operational cyber command will take years to complete. It is the need of the hour, given that India’s digital capabilities lag significantly behind regional and global players. Whatever final form India’s cyber command takes, the government should do well to pursue the ultimate objective of a robust cyber security platform to fight digital intrusions. Connecting the dots: Critically examine the need of a robust cyber security architecture for India to tackle the growing digital intrusions. Critically evaluate the provisions of National Cyber Security Policy 2013.   NATIONAL TOPIC: General studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation; Important aspects of governance, transparency and accountability, e-governance-applications, models, successes, limitations and potential   The Aadhaar Revolution Aadhaar Project: An ambitious project that seeks to provide unique identification numbers to each individual in a country of over a billion people, collecting demographic and biometric information in the process Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016: To provide for “efficient, transparent, and targeted delivery of subsidies, benefits and services” Legislative Vacuum? Any advanced technology needs to be designed in a simple way to enable it to be used conveniently on an open platform, satisfying multiple stakeholders and ensuring privacy in the flow. The infrastructure, if properly developed can help government go paperless, presence-less and cashless; catapulting India to the front of the league of nations whose governments use technology to create an effective, efficient and modern welfare state that treats its people with dignity. But the question over the much-required legal validity for Aadhaar has garnered attention once again, with the Aadhaar Bill resting amidst many legal and political challenges and a change in government; being issued already for over 98 crore in numbers. The regulatory legitimacy thus, is much sought after, to let it operate at its full potential. Aadhaar Bill— Enrolment is voluntary; shall only be used as proof of identity and not as proof of citizenship Will enable the government to prevent fraud, corruption and waste by requiring the Aadhaar number for delivery of any benefit, subsidy or service from the Consolidated Fund of India, such as LPG subsidy, MGNREGA wages, various insurance schemes, provident fund schemes, government scholarships, and much more Does not prohibit the usage of Aadhaar for any other purpose by any public or private entity Provision of privacy protection – Use limitation— it can only be used for the purpose for which the user gives consent Collection limitation— no information other than demographic (name, address, date of birth, sex and, optionally, email id/ mobile number) and biometric (photo, fingerprint and iris scan) will be collected. No other personal information of an individual will be in the Aadhaar database Access and Rectification— the user can access his own information and has an obligation to rectify it if it needs updating No demographic information or identity information received from the Unique Identification Authority of India can be displayed publicly Only exception to certain confidentiality (but not security) obligations is national security: Provided an order to disclose information is issued either (limited time period)- By a court or By a joint secretary or Higher officer, and Vetted by a high-powered committee headed by the cabinet secretary No core biometric information can be shared is a principle without exception — people saying that core biometric information will be shared are wrong because Clause 29(1) is not overridden by Clause 33(2) Bill includes stringent penalties, including imprisonment for breach of privacy and other violations Section 29(4)- No Aadhaar number or biometric information will be made public “except for the purposes as may be specified by regulations” Section (33)- The inbuilt confidentiality clauses will not stand when it concerns national security Potential: To be used as a powerful instrument against retail corruption To deepen financial inclusion To eliminate the usage of more than 2,000 crore pages of paper (a low guesstimate) Enable more than 300 million daily seekers of government services to save at least two hours every day Eliminate fraud in government subsidies of at least Rs. 50,000 crore every year Enable linking individuals to an organisation that has a unique enterprise number, shifting enforcement to big data Unclog our highways and eliminate waiting rooms in hospitals as well as eliminate fraud in degrees and substantially improve labour market matching Way Ahead- Danger of “Digital Colonisation”: The concern over the increased access to the information over the internet is a matter to be seriously thought over as the ball going in the field of a few internet ‘gatekeepers’ tracking all our digital activities is extremely high. Therefore, need for the Aadhaar platform, to promise an open, secure and privacy-protected digital ID to a billion Indian residents to access the internet, will be a critical bulwark to ensure our digital independence.   Connecting the Dots: What do you mean by Digital Colonization? What are the steps that India can take to overcome the danger of digital colonisation?   MUST READ Cooling the earth down Hindu   Constitution Bench to decide if MPs, MLAs can be disqualified upon framing of charges Hindu   Government cuts its losses on EPF Hindu Related Articles: Employees’ Provident Fund (EPF) Tax- Is it a Healthy proposal?   Cashing in on Libya’s power vacuum Hindu Related Articles: A country in free fall: Syria   More Mollycoddling- Latest sale of F-16s by the US to Pakistan carries a message for India. Indian Express   Raja-Mandala: Trading places- On the South China Sea, Delhi speaks less in public while Washington can’t stop talking. Indian Express Related Articles: Storm on the South China Sea   Protecting privacy in democracies Business Standard MIND MAPS   1. Need for Aadhaar Law

Mar 8, 2016 PIB

IASbaba Press Information Bureau (PIB)- 29th Feb to 6th March, 2016

ARCHIVES   GS-1 Security cover for important religious and cultural places (Topic: Indian Culture, Art Forms, Literature and Architecture from ancient to modern times) About- Archaeological Survey of India (ASI) under Ministry of Culture has intimated that a committee has recommended creation of a Special Force for protection of Museums, objects and protected monuments as part of a comprehensive security policy Steps Taken- Provide security to public places including places of religious and/or cultural importance- rests primarily with the State Governments/Union Territory (UT) Administrations Threat inputs, if any, received by the Union Government through the Central Security Agencies should be promptly shared with the State Governments/UT Administrations concerned Central Security Agencies to carry out periodic security reviews of important places, including places of religious or cultural importance Reports of such security reviews to be forwarded to the State Governments/UT Administrations concerned for necessary action In order to augment the security arrangements made by the State Governments/UT Administrations for important places and / or important events, festivals etc, based on the requests made by them; Central Armed Police Force (CAPF) personnel are to be placed at the disposal of the State Governments / UT Administrations.   GS-2 MoUs with Japan and Russia - Railways (Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests) About- Union Cabinet apprised of the following MoC and MoUs- MoC signed between- Ministry of Railways (MoR) and Ministry of Land, Infrastructure, Transport and Tourism (MLIT), Japan on technological cooperation in Rail Sector. MoU signed between- Ministry of Railways and Joint Stock Company "Russian Railways" on technical cooperation in railway sector. MoU signed between- Research Design & Standards Organization (RDSO) and Railway Technical Research Institute (RTRI), Japan on technological cooperation in railway sector.  Areas of cooperation include- High speed corridors, Speed raising of existing routes, Development of world class stations, Heavy haul operations and modernization of rail infrastructure, etc. Faciliate- Provide a platform for Indian Railways to interact and share the latest developments and knowledge in the railway sector Exchange of- Technical experts + Reports and technical documents+ Training and seminars/workshops Focusing on - Specific technology areas and other interactions for knowledge sharing   ASEAN Plus Multinational Field Training Exercise ‘Ex Force 18’ commences at Pune (Topic: Important International institution, agencies and further structure, mandate)  About- Multinational Field Training Exercise (FTX) – Exercise FORCE 18, involving ASEAN Plus countries commenced at Pune Largest Ground Forces Exercise ever conducted on Indian soil and would be conducted from 02 to 08 March 2016 Themes- ‘Humanitarian Mine Action’ and ‘Peacekeeping Operations’ First phase- Over 28 foreign trainers were trained by the Indian Army from 24 Feb to 01 Mar 2016 Trainers will form the training backbone for the conduct of ‘Exercise FORCE 18’. Importance of ASEAN Defence Ministers Meeting (ADMM) Plus forum- To meet the regional aspirations of à Peace+ Security + Addressing issues related to mitigating the effects of Mine Menace in many of the South East nations Exercise FORCE 18, would build common understanding and achieve interoperability amongst the 18 ASEAN Plus countries.   Ek Bharat Shreshtha Bharat Programme to be Launched (Topic: Government policies and initiatives) About- ‘Ek Bharat Shrestha Bharat’ programme launched Aim- To link States and Districts in an annual programme that connects people though exchanges in areas of language, trade, culture, travel and tourism. To strengthen understanding of each other, it is proposed to create a closer engagement between States and Districts in a structured manner.   PM launches “Setu Bharatam” (Topic:  Government schemes and policies) About- PM launched “Setu Bharatam” – an ambitious programme to build bridges for safe and seamless travel on National Highways Aim- Making all national highways Railway Level Crossing free by 2019 208 new “road over bridges / road under bridges” are envisaged for construction, while 1500 bridges will be widened, rehabilitated or replaced   National Dialysis Services Programme to be launched (Topic: Government schemes and policies) About- New Health Protection Scheme launched in the Budget 2016-17 Concerns- Serious illness of family member(s) causes severe stress on the financial condition of poor and economically weak families, shaking the foundation of their economic security. It is to- Help families (under severe stress due to the poor financial condition); scheme would provide health cover up-to rupees one lakh per family Beneficiaries- Senior citizens of the age 60 years and above belonging to this category, an additional top-up package up to Rs.30, 000 will be provided. Key Challenge- Making quality medicines available at affordable price  Steps Taken- Funds available through PPP Mode under the National Health Mission, to provide dialysis services in all district hospitals To reduce the cost, proposed to exempt certain parts of dialysis equipment from basic customs duty, excise/CVD and SAD To supply generic drugs. 3,000 stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17   Agreement signed to provide a loan of Rs 1,000 Crore to FACT  (Topic: Agreement signed between various Governmental bodies) About- Agreement to release Rs. 1000 Crore to the Fertilizers and Chemicals Travancore Limited (FACT), a Central Public Sector Undertaking, for its revival Aim- To revive the organisation which has been facing financial crunch for more than a decade To ease its liquidity crisis Facilitate- Making operational profits, after induction of funds Reduction in gas prices Clearing long pending dues of the Company, and facilitating much needed working capital, as well as for augmenting production FACT to maintain production at optimum level on a sustainable basis in the coming years Initiative will not only help in fulfilling the objective of ‘Make in India’ but also meet the mantra of ‘Sabka saath, Sabka vikas’ FACT: Done excellent job in educating the farmers of Southern India about modern inputs for improving productivity Madhya Pradesh Higher Education Quality Improvement Project (Topic:  Issues relating to development and management of Social Sector/ Services relating to Health, Education, Human Resources) About- Financing agreement for IDA credit of US$ 300 (equivalent) for the "Madhya Pradesh Higher Education Quality Improvement Project" was signed with the World Bank. Objective- To improve student outcomes especially of disadvantaged groups in selected Higher Education Institutions (HEIs) To increase the effectiveness of the Higher Education System in Madhya Pradesh Project Components- Grants Support to Higher Education Institutions State Level Initiatives Improving System Management Project designed A result based financing programme, implying that funds will be released based on the achievement of specific results or disbursement linked indicators (DLls). DLls have been designed to ensure outcomes such as- Increase in enrolment of full time students, Increase in transition rate, Achievement of NAAC accreditation criteria by participating HEls, Better transparency in the affairs of participating institutions and strengthening of governance structure   India and United States Partner on Cancer and Traditional Medicine Research Efforts (Topic: Issues relating to development and management of Social Sector/ Services relating to Health, Education, and Human Resources) About- First U.S.-India Workshop on Traditional Medicine Highlights- Participants will share current traditional medicine therapies and practices for cancer in U.S. and India Review available evidence for AYUSH products and interventions, which could reduce pain/morbidity from cancer treatments and improve the quality of life. Scientists will explore opportunities to collaborate on mutually-identified research in the areas of natural products, palliative care and other support studies. Professional training and scientific exchanges will be an important aspect of this cooperation. Importance- Incorporating more scientific inputs from both sides in Traditional Medicines which can help mainstreaming AYUSH systems in patient health care across the globe. India is also collaborating with World Health Organization (WHO) in the area of Traditional Medicine which will help in achieving international acceptability and positioning of AYUSH systems   GS-3 Development of National Waterway-1 under Jal Marg Vikas Project  (Topic: Infrastructure – Energy, Ports, Roads, Airports, Railways etc) About-Government is developing National Waterway-1 (NW-1) under the Jal Marg Vikas Project, with assistance from the World Bank. NW-1- Refers to 1620 km Haldia-Allahabad stretch of River Ganga. Phase-I of the project covers the Haldia-Varanasi stretch. Project includes- Development of fairway, Multi-modal terminals, Strengthening of open river navigation technique, Conservancy works, Modern River Information System (RIS), Digital Global Positioning System (DGPS), Night navigation facilities, Modern methods of channel marking, Construction of a new navigational lock at Farakka etc. Multimodal Terminals with rail and road connectivity are to be constructed at- Varanasi, Haldia and Sahibganj   Indo-Seychelles Joint Training 'Ex Lamitye' (Topic: Various security forces and agencies and their mandate) About- Exercise ‘Lamitye – 2016’, seventh in the series of Indo-Seychelles Joint Training Exercises, was conducted at Victoria, Mahe Island, Seychelles Objective-To improve interoperability between both Armies in jointly fighting Counter Insurgency / Counter Terrorism ‘Exercise Lamitye’ meaning ‘Friendship in Creole’ has been a bridge between the Armed Forces of India and SPDF since 2001 Handling over of Ajadiv Island to the Defence Ministry (Topic: Security challenges and their management in border areas; linkages of organised crime with terrorism)   About- Island called Anjadiv Island off the coast of Goa was given by the State Government of Goa to the Ministry of Defence About Island- Island was given by the State Government to the Ministry of Defence in the year 1989 with the terms and condition that the Navy should allow on the island the celebration of customary feast of “St Francis de Assis” & “Nossa Senhore de Brotas” subject to security considerations. Anjadiv Island has been declared as a prohibited place by the State Government of Goa December 1989 under Official Secrets Act, 1923. After completion of North Break Water linking Binaga Point with Anjadiv Island & setting up of sensitive facilities in the vicinity thereof, the permission to hold feasts was withdrawn due to security considerations. Project Sea Bird at Karwar is strategically located project of sensitive nature, wherein access of people cannot be allowed freely irrespective of any caste or religion, as apart from creating local law and order problem, it involves serious security implications.   Laser Walls along riverine stretches of India-Pakistan Border (Topic: Security challenges and their management in border areas; linkages of organized crime and terrorism) About- Border Security Force (BSF) has taken various measures to check the infiltration of the terrorists along Indo-Pakistan border. Highlights- Installing laser walls is one of the integrated measures taken by BSF. Laser technology developed by BSF has been designed to cover all the shortcomings experienced in the use of laser wall at various places in the past. Approach to contain cross border infiltration, includes-                 Strengthening of border management and multi-tiered deployment along the International Border, Monitoring of infiltration routes, Construction of border fencing including plugging the gaps through technological solutions, Weapons and equipments for Security Forces, Improved intelligence and operational coordination.   NIDM to organise a two day National Workshop on Management of Animals in Emergencies (Topic: Disaster and Disaster management) About- National Institute of Disaster Management (NIDM) is organizing a two day workshop on ‘Management of Animals in Emergencies’.  Organised by- National Institute of Disaster Management in association with Department ofà Animal Husbandry + Dairying & Fisheries + Ministry of Agriculture and Farmers’ Welfare + Policy Perspectives Foundation (PPF) + World Animal Protection Aim- To sensitize the key State Government Authorities of State Animal Husbandry Departments in exploring strategies for effectively managing the animal welfare needs during emergencies and protecting the livelihood of communities reliant on them for survival National Workshop on “Strengthening National Response Capabilities” (Topic: Disaster and Disaster Management) About- National Disaster Response Force (NDRF) is organizing a National Workshop on “Strengthening National Response Capabilities”. It is to- Provide a platform and to prepare a roadmap to strengthen national disaster response capabilities. Workshop aims- To share view on effective disaster response in India- Strengths, Weaknesses Role of NDRF, Localizing preparedness at the community level to strengthen National capabilities and preparedness towards Trauma care and CBRN emergencies. NDRF- Committed to make a disaster resilient Nation by providing specialized response to people in distress during disaster not only within the country but also beyond the National boundaries. Since 2006, the Force has saved more than 4.73 lakh precious lives during various calamities and crisis. Continuously been engaged in community capacity building of masses through its workshop, seminar, awareness programs and training   Bio Pharmaceuticals provide an alternative to Small Molecule Drugs for Novel Treatments of previously Untreatable Diseases (Topic: Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology and issues relating to intellectual property rights) About- Biopharmaceutical drugs are important therapeutic options as they provide an alternative to small molecule drugs for novel treatments of previously untreatable diseases   Help- Drugs provide affordable options for addressing the healthcare needs of humankind. DBT- Department of Biotechnology (DBT) is supporting cutting edge research for development of new Biopharmaceutical drugs in different universities, research institutes and laboratories across the country Through Biotechnology Industry Research Assistance Council (BIRAC) a Public Sector of DBT a number of Start-ups, SMEs and Biotech companies are developing such new drugs.   Conservation of endangered medicinal plants (Topic: Conservation, environmental pollution and degradation, environmental impact assessment)   About- Government of India has set up National Medicinal Plants Board (NMPB) under Department of AYUSH (now Ministry of AYUSH) in year 2000. It is to- Look into all matters related to medicinal plants NMPB- Working towards conservation and development of medicinal plants along with promotion of medicinal plants cultivation on farmers land to meet the ever increasing demand. NMPB, Ministry of AYUSH is implementing the following two schemes for overall development of medicinal plants sector in the country Schemes- Central Sector Scheme for Conservation, Development and Sustainable Management of Medicinal Plants Aim- Conservation of medicinal plants is being carried out mainly through in-situ conservation by way of plantation/ resource augmentation of species in their natural habitat Establishing Medicinal Plants Conservation and Development Areas (MPCDAs) etc., and through ex-situ conservation by developing herbal gardens Centrally Sponsored Scheme of National AYUSH Mission (NAM)Aim- To reduce the pressure on wild population of medicinal plants species Promoting large scale cultivation of medicinal plants on farmers land and in this regard provides financial assistance as subsidy @ 30%, 50% and 75% of cost of cultivation to farmers for cultivation of medicinal plants including endangered species. Botanical Survey of India (BSI)— Out of 8,000 medicinal plants only 53 species are under threatened categories like Critically Endangered, Endangered, Vulnerable, etc. Use of Radiation Technology in FPI (Topic: Science and Technology- Developments and their applications and effects in everyday life) About- Government of India has cleared several commodities under new Atomic Energy (Radiation Processing of Food & Allied Products) Rules 2012 in Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 for preservation through irradiation. Objective- Arresting post-harvest losses of horticulture & non-horticulture produce, Value Addition and Preservation Infrastructure for grant of financial assistance for setting up inter alia, Highlights- Energy involved in irradiation is not strong enough to cause changes at the atomic level, and since the food is never in contact with a radioactive source, the food cannot become radioactive Several extensive reviews of toxicological data by regulatory and health organizations, have determined that food irradiated at doses below 10 kGy is safe. Food is safer after being irradiated because the process destroys harmful bacteria that may be present Research studies- Tried to identify problems resulting from eating irradiated foods but failed to disclose any health risks. A joint study group of FAO/IAEA/WHO in 1997 evaluated data on wholesomeness of food irradiated with doses above 10 kGy and recommended that food irradiated with any dose to achieve technical objectives is safe and nutritionally adequate. No upper limit, therefore, needs to be imposed as long as food is irradiated based on prevailing good manufacturing practices.                                                                  Sagarmala Programme: Over 150 Projects identified as part of National Perspective Plan (Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development, development and employment) About- More than 150 projects have been identified as part of the National Perspective Plan (NPP) under the ambitious Sagarmala Programme About Projects- Mobilize more than Rs. 4 lac crore of investment and enable creation of 1 crore new jobs, including 40 lac direct jobs, in the next 10 years. Projects will be showcased in the maiden Maritime India Summit 2016, for attracting potential investors and their implementation will be taken up starting FY 16-17 Projects have been identified across the areas of- Port Modernization & New Port Development, Port Connectivity Enhancement, Port-led Industrial Development and Coastal Community Development. Aim- To promote port-led development in the country by harnessing India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade routes. National Perspective Plan has been developed under this programme for the comprehensive development of India’s coastline and maritime sector.   Environment Ministry releases new categorisation of industries (Topic: Conservation, environmental pollution and degradation, environmental impact assessment) About- Government released a new categorization of industries based on their pollution load. New category of White industries which is practically non-polluting will not require Environmental Clearance (EC) and Consent and will help in getting finance from lending institutions Re-categorization of industries results as- Old system of categorization was creating problems for many industries and was not reflecting the pollution of the industries. Aim-                                     To ensure that the industry is established in a manner which is consistent with the environmental objectives New criteria will prompt industrial sectors willing to adopt cleaner technologies, ultimately resulting in generation of fewer pollutants. Feature of the new categorization system lies in facilitating self-assessment by industries as the subjectivity of earlier assessment has been eliminated. ‘Re-categorization’ is a part of the efforts, policies and objective of present government to create a clean & transparent working environment in the country and promote the Ease of Doing Business. Other efforts- Installation of Continuous Online Emissions/ Effluent Monitoring Systems in the polluting industries, Revisiting the CEPI (Comprehensive Environment Pollution Index) concept for assessment of polluted industrial clusters, Revision of existing industrial emission/effluent discharge standards, Initiation of special drive on pollution control activities in Ganga River basin and many more in the coming days. Range of Pollution Index-   Industrial Sectors having Pollution Index score of 60 & above - Red category Industrial Sectors having Pollution Index score of  41 to 59 - Orange category Industrial Sectors having Pollution Index score of  21 to 40 - Green category Industrial Sectors having Pollution Index score incl.&upto 20- White category

Mar 8, 2016 AIR

All India Radio - Launch of Sethu Bharatam Project

ARCHIVES   LAUNCH OF SETHU BHARATAM PROJECT   Recently Prime Minister Narendra Modi launched the Setu Bharatam programme for building bridges for safe and seamless travel on National Highways. The ‘Setu Bharatam’ project Aims to make all national highways free from railway level crossing by 2019 to ensure road safety. Under the project, 208 rail-over bridges and rail-under bridges will be built at the cost of Rs. 20,800 crore. Also, 1,500 decade-old bridges will be reconstructed and revamped for Rs. 30,000 crore. The scheme has come at a right time when there are plethoras of infrastructural loopholes that are choking the Economy. Given the low capacity utilisation especially in Capital goods and slowdown in global economy, it is right time to develop/upgrade the existing infrastructure in the country. In this regard Sethu Bharatam project has a long way in delivering seamless connectivity to masses. The project aims at removing all bottlenecks that are present in the existing infrastructure. Given the necessity to have a strong broad based infrastructure that caters to all the section of people. Sethu Bharatham project address all such necessary concerns. Sethubharatham project lays emphasis on revamping of bridges than building new bridges. Indian Academy for Highway Engineer in Noida, is responsible to carry out conditions survey and inventorization of all bridges on National Highways in India by using Mobile Inspection Units. The scheme requires effective coordination among various ministries (Waterways, Urban development, Rural development etc) so that a good synergy is present among them for effective implementation of the scheme. The collections of Infrastructure database helps in conserving the history of bridges and also helps to have a framework as to how bridges were constructed and how it is to be maintained by future generation. This data base will be the largest of its kind and will also help in smoothening the movement of Over-Dimension and Over-Weight consignments on National Highways. Good infrastructure network is vital for the growth and development of a nation. In order to satisfy the aspirations and long felt needs of people, Sethu Bharatham project envision bringing in a qualitative change and a comprehensive, integrated approach in developing infrastructure in the country.

Mar 8, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 7th March, 2016

Archives   IASbaba’s Daily Current Affairs – 7th March, 2016   ECONOMICS   TOPIC:  General studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Government Budgeting. General studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.   Budget 2016 fails to lay out a clear roadmap for the petroleum industry Energy has been an important part of the present Prime Minister’s agenda. However the 2016 budget lacked clarity on certain principles affecting the petroleum industry because of which the stock prices of oil companies fell (ONGC stock prices fell by around 10%). Fundamental outlook: Three fundamental questions that arises at the backdrop of the announcement of budget 2016 wrt the petroleum industry are Does the government appreciate the severity of the crisis facing the petroleum industry? Is it serious about reviving domestic oil and gas exploration. Is its emphasis on clean energy substantive?   A critical evaluation of the Policy announcements in the budget 2016: The Finance Minister(FM) made three policy announcements The first was that the price of gas from newly discovered fields would be determined through the market and linked to the price of alternative fuels. It was not clear, at least initially, whether “newly discovered” meant discoveries yet to be made or those already made but not monetised. It was also not clear whether the price would be linked to low-priced coal, the higher-priced imported liquefied natural gas or to a fuel between these two price points.  The second was to switch the calculation of cess on oil production from a specific rate (fixed rupees per barrel produced) to ad valorem (percentage of value). This is what the companies had lobbied for and it was a sensible move. The fixed charge of $9.1 per barrel produced was affordable when prices were hovering around $100 per barrel but a crushing burden in the current low price regime of around $35 per barrel. What took the wind out of this proposal was the ad valorem rate of 20 per cent. For, at that rate, the tax burden came down by only $2 per barrel from $9 to $7 and for so long as the price of oil remained in the current range. In the event prices rise to the average level predicted by analysts of $45 per barrel in 2016, this benefit will be wiped out and companies will find themselves in the same financial straits they are in today.   The third one was to double the cess on coal production from Rs 200 to Rs 400 per tonne, and to direct that this money be used for financing clean energy. Again, like the switch to ad valorem, this was a positive. However there was a lingering concern, that this money would be diverted for other purposes. So far, the clean energy fund has been managed by the finance ministry. The money has not always gone towards clean energy research but for financing unrelated activities like cleaning the Ganges. This concern might have been allayed somewhat had the FM assured listeners that the money would be managed by people with domain expertise and not subject to political or financial exigency.   Hard truths that the government should digest: The government must internalise three hard truths: India’s dependence on oil and gas imports will increase in the short to medium term. We currently import around 75 per cent of our requirements. This will go up to near 90 per cent by the end of this decade. We are and will remain hugely vulnerable to the vicissitudes of the international market. The petroleum industry is in terrible shape. According to consultants Wood Mackenzie, every private oil company loses cash at $30 per barrel. All are now on a massive cost-cutting exercise. They estimate that over the period 2015-2017, the companies will take out $200 billion of expenditure and that exploration investment will drop from around $95 billion in 2015 to less than $40 billion in 2016. Cost-cutting will not save the highly leveraged companies from bankruptcy and there will be a plethora of stranded assets available for sale at a discount. Our environment is under stress. Our cities are amongst the most polluted in the world, our forest cover is denuding; the water tables are receding — the list is long. Clean energy is the sine qua non for breaking the currently unhealthy linkage between growth, energy demand and environmental degradation. These three hard truths present the government with three clear choices. If it wishes to accelerate exploration, it will have to stop milking the ONGC cow. Private investors will not step into the breach. A downward recalibration of the ad valorem tax rate would be a positive first step. If it wishes to increase domestic production, it should do what many oil-producing countries, including China, the US, the UK and Malaysia, have done in response to the current low oil price regime and offer tax credits and exemptions for incremental production from marginal fields and enhanced oil recovery. If it wishes to give a fillip to clean energy, it should put together a more robust package of subsidies and concessions, promote electric vehicles and cement R&D partnerships between government entities, private corporations, universities and research laboratories. Connecting the dots: Critically examine the problems faced by petroleum industry in India along with measures taken by the government to overcome them. What do you understand by clean energy? Explain various sources of clean energy in India along with measures taken by the government to promote them.   ECONOMICS TOPIC:  General studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Government Budgeting. General studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.   FRBM act: Reality check and to review the fiscal consolidation path Background: Recently there was a suggestion that fiscal expansion or contraction should be aligned with credit contraction or expansion respectively, in the economy indicating a paradigm shift in how to determine fiscal deficit. Currently, the Fiscal Responsibility and Budget Management (FRBM) Act insists on a blanket 3 per cent arithmetical limit on fiscal deficit. Idea is to recognize the possibility of an inverse correlation between fiscal deficit (fiscal expansion) and bank credit (monetary expansion) i.e If credit growth falls, fiscal deficit may need to rise and if credit rises, fiscal deficit ought to fall — to ensure adequate money supply to the economy. As the FRBM Act ignores the possible inverse link between monetary and fiscal economies, time is ripe for an objective basis for fiscal deficit and to recheck FRBM act to review the Act, and if necessary, amend it significantly.   What is FRBM act all about? The Fiscal Responsibility and Budget Management (FRBM) Act was legislated by the Parliament in the year 2003. Its objectives can be identified as: To institutionalize fiscal discipline Reduce Fiscal Deficit Improve Macroeconomic Management. The law aims at promoting Fiscal Stability for the country on a long-term basis. It emphasizes a Transparent Fiscal Management System and a more equitable distribution of debts over the years. This law also gives flexibility to the Reserve Bank of India to undertake monetary policy to tackle inflation and take corrective measures in order to give an impetus to the economic environment. FRBM Act was notified in response to the need felt to curb broadening Fiscal Deficit. The FRBM rules specify annual reduction targets for fiscal indicators. Originally, the act envisaged Revenue Deficit to be reduced to nil in five years beginning 2004-05 and fiscal deficit was required to be reduced to 3 percent of GDP by 2008-09. The Act also provides exception to the government in case of Natural Calamity and whenever there is a threat to National Security. As Government is in need of resources for funding various kinds of developmental schemes and routine expenditures, resources are raised through taxes and borrowing. The government can raise funds by borrowing from the Reserve Bank of India, financial institutions or from the public by floating bonds.   What does fiscal deficit mean? The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included. However, uncontrolled Fiscal Deficit is harmful not only for the health of economy but also for the Growth of the economic indicators and finally the development prospects in the road towards Inclusive Growth.   What was the need which compelled FRBM act to be introduced? In 1980s, India saw a sharp deterioration of the fiscal situation, which ultimately culminated in the balance of payments crisis of 1991. Within a decade of economic liberalization, the fiscal deficit and debt situation again seemed to head towards unsustainable levels around 2000. At that time, a need to institutionalize a new fiscal discipline framework. FRBM Bill was introduced to institutionalize the fiscal discipline at both the centre and state level.  Under the Fiscal Responsibility and Budget Management Act (FRBMA) 2003, both the Centre and States were supposed to wipe out revenue deficit and cut fiscal deficit to 3% of GDP by 2008-09, thus bringing much needed fiscal discipline. How rational is fixation of fiscal deficit with 3 per cent limit? The magic number made its debut in the famous Maastricht Treaty to form the European Union (EU) in 1992. The treaty prescribed four criteria which EU members had to comply to be eligible to adopt the Euro as the common currency. One criterion was the 3 per cent fiscal deficit limit — the others being limits on inflation, long-term interest rates and public debt. It was an open secret that the FRBM Act enacted in 2003 and implemented from 2004, had adopted the ready-made EU limit of 3 per cent.   What is the logic behind the correlation between credit expansion and fiscal deficit?  The economic debate on the money-growth link dates back to the Great Depression of the 1930s. While the celebrated Nobel laureate, Milton Friedman, talked about inadequate money supply as the cause of the Great Depression. The logic of correlation between credit expansion and fiscal deficit has five sequential limbs explaining inverse relation: Money is the blood of economic growth. Most money that fuels the economy is created by banks, not by government. Banks and financial institutions fund business and it is that credit money which drives the economy. If there is lack of business confidence in the economy then bank credit will not grow too and growth will also suffer due to lack of adequate money. This is the situation budget needs to step in, to pump money into the economy by incurring deficit (spending more than the income). For this money need to be borrowed lying with the bank or print more money. The fifth limb ensures that growth does not decelerate for want of enough money circulating in the economy. The FRBM law has ignored the fourth and fifth limbs of the logic and fixed the 3 per cent fiscal deficit as inviolable.   Working of FRBM act and its reality check: The combined fiscal deficit (fiscal expansion) and credit growth (monetary expansion) as a percentage of GDP has halved from 17.4 per cent in 2009-10 to 8.8 per cent, which is less than nominal GDP growth. Three things are obvious. Money supply growth has reduced. Credit expansion has fallen. And even fiscal deficit and credit growth put together have declined, all pointing to the growing economy being starved of the needed money needed, in which the FRBM Act has also lent its hand. If bank credit growth falls, fiscal deficit may need to go up. If bank credit growth rises, fiscal deficit should reduce. This is particularly true for a growing economy like India. Had the fiscal deficit not been above the FRBM ideal limit of 3 per cent in the last four years, the growth would have suffered even more. It does not need a seer to say that the FRBM law as it stands harms the economy. Thus need of the hour is to review FRBM act, and if necessary, amend it significantly.   Way ahead: Review the fiscal consolidation path Possibility of adopting a target range rather than a specific number (3 percent) The suggestion that fiscal expansion or contraction should be aligned with credit contraction or expansion, as mentioned in the Budget speech, is worth exploring.   Connecting the dots: Recently there was a suggestion to amend FRBM act and to review the fiscal consolidation path. Throw light on the short fall of the current FRBM act and what needs to done to bring more fiscal discipline?   MUST READ Don’t let down the children Hindu   Unequal by birth: time to break the vicious cycle Hindu   Bigger isn’t better- Before initiating consolidation, public sector banks will need to be nursed back to health Indian Express   Apple Vs National Security- There is an opportunity for a global treaty to balance security concerns and privacy Indian Express   Lessons from Bhagat Singh- By Bhagat Singh’s dedication to a cause and fearlessness reinforced by his extensive reading is worthy of emulation Live Mint