Aug 22, 2015 IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs - 21st & 22nd August, 2015

Archives IASbaba's Daily Current Affairs- 21st & 22nd August, 2015   NATIONAL   Criminal justice system in India : A critical analysis   Criminal justiceis the system of practices and institutions of governments directed at upholding social control, deterring and mitigating crime, or sanctioning those who violate laws with criminal penalties and rehabilitation efforts. Although society maintains other forms of social control, such as family, school, religious institutions, they are designed to deal with moral not legal misbehaviour. Only the criminal justice system has the power to control crime and punish criminals. Of late, the relevance of our criminal justice system- both substantive and procedural- a replica of the British colonial jurisprudence, is being seriously questioned. The turn of events leading to Yakub Memon’s capital punishment, leaves scope for public to comment on the effectiveness of criminal justice system in India. Objectives of criminal justice system : To prevent the occurrence of crime. To punish the transgressors and the criminals. To rehabilitate the transgressors and the criminals. To compensate the victims as far as possible. To maintain law and order in the society. To deter the offenders from committing any criminal act in the future. Shortcomings in our criminal justice system : Serious human resource crunch in police personnel According to United Nations Office on Drugs and Crime (UNODC) ,the number of police personnel per one lakh people in India is only 138, compared to 525 in Spain and 196 in USA. Out of the 71 countries for which data is  available for 2013, India ranks 67. Low conviction and high undertrial rates According to National Crime Records Bureau (NCRB) data, the conviction rate for Indian Penal Code crime cases during 2013 was a mere 40.2%. On the other hand, NCRB prison statistics for 2013 show that more than 67% of the prisoners were undertrials. Overburdened and understaffed judiaciary According to National Court Management System of the Supreme Court for 2011 , more than 26 lakh cases are pending in India, in which almost 25% of the cases are more than five years old. Politicization of the police force is another biggest reason for underperformance of criminal justice system in India. Strengthening criminal justice system : (Iasbaba’s view) The criminal investigation system needs higher standards of professionalism and it should be provided with adequate logistic and technological support. The number of Forensic Science Institutions with modern technologies such as DNA fingerprinting technology should be enhanced. Citizen’s confidence in the police administration should be enhanced so as to co- operate in criminal investigation. The legal services authorities in the States should set up committees with the participation of civil society for bringing the accused and the victims together to work out compounding of offences. Understaffing in police and judiciary should be done away with. Politicization of police should be kept at minimal by implementing supreme’s court decision in Prakash Singh case. Connecting the dots: Critically analyse the shortcomings of criminal justice system in India , with special focus on the state police forces. Modernisation of police forces is the panacea for the shortcomings of criminal justice system in India. Comment Judicial independence from Executive is the need of the hour , to overcome the shortcomings of criminal justice system . Critically analyse     ECONOMICS Payment Banks: Banks for the unbanked aam aadmi The issuance of an in-principle approval to 11 applicants to start payments banks was a major landmark in the history of banking in India. For the first time we will have a new form of bank with unique features.   What are payment banks? Payments banks are a non-full service bank in India. The main objective of these banks is to accelerate financial inclusion. Financial inclusion  is the delivery of financial services like credit, insurance etc at affordable costs to sections of disadvantaged and low-income segments of society. Characteristics of payment banks: These are specialised banks that provide services to small businesses, migrated labour and low income households. Payments banks will provide small savings accounts to its customers. Payments banks will also allow mobile firms, supermarket chains and others to cater to small scale businesses. Payments banks do not carry lending activities. This means that the banks are not allowed to give credits to its customers. Such banks will only be allowed to accept deposits and offer payment services. These banks have to use 'Payments Bank' in its name which will differentiate it from other banks. Payments banks cannot form subsidiaries or undertake any non-banking activities. These banks are mainly based in rural parts of India, specifically areas which are unbanked. The deposits made in payments banks need to be invested in government bonds. Regulations for payment banks: Payments banks can hold a maximum balance of Rs 1,00,000 per customer. These banks can only issue debit and ATM cards. They cannot issue credit cards to its customers. Such banks should have a minimum paid-up equity capital requirement of Rs 100 crore. Under payments banks, the stake of a promoter should be minimum 40% for the first five years. As per the rules of the Foreign Direct Investment (FDI) these banks can allow foreign share holding. List of the companies, entities and people, that received an "in-principle" nod for payment banks: Reliance Industries Ltd Aditya Birla Nuvo Ltd Airtel M Commerce Ltd Vodafone m-pesa Ltd Tech Mahindra Ltd Dilip Shanghvi Fino PayTech limited National securities depository limited Vijay Shankar Sharma Department of Posts Cholamandalam Distribution Services Ltd. Some issues that can arise wrt payment banks: For this model to work well every bank has to have several branches or contact points so as to cover a larger geography and population. Given that the targets will be the lower income groups, to obtain a sizeable quantum of funds, the numbers to be included have to be high which is very challenging. When it comes to the postal department, there have to be changes in laws to enable a post office to do banking. Post Offices are the agency which already collects small savings which also includes savings accounts. But now with the postal bank having the potential to earn an income, how will the old savings accounts and the new ones be differentiated? This has to be worked out with the government. There is a case of cannibalisation of either payments banks by commercial banks and post offices or the other way round. The successful Jan Dhan Scheme implemented by commercial banks has garnered as many as 175 million accounts with an average balance of just Rs. 1,200, with 45 per cent being zero balance. These accounts are being used largely for various cash transfers and hence a large part of these balances. In this case how do the new banks convince people to open such accounts and maintain a positive balance? The use of technology is vital. The applicants will presumably have different approaches. The postal bank holds the biggest advantage of already having around 1.5 lakh offices. A technology that connects all the contact points is the need of the hour. There are regulatory issues which presumably have already been addressed by the RBI. For instance can telecom selling agents become staff for collecting deposits? We cannot have unqualified staff dealing with customers as there should be protection against mis-selling. Therefore, the RBI would have to set up a new cell to monitor these banks — which will be a logistical issue given the geographical spread. Way ahead: The concept of new payments bank is compelling as it opens another route for inclusive banking. While time will tell how successful this model will be in incremental terms, the RBI on its part has given permission to probably the best players who are capable of making this a reality. Connecting the dots: What are payment banks ? Explain its relevance to India in order to achieve financial inclusion. Critically analyse the issues associated with payment banks in India . Comment on the characteristics of payments banks.   Performance of Public Sector Banks in India : An analysis In a message to public sector banks (PSBs) that only performers will survive, the government, in an unprecedented move, has decided to allocate capital to only nine PSBs, which have shown efficiency in recent years. As a result, some PSB’s reeling under pressure due to mounting bad loans and depleted capital reserves have been left out. Issues that are a concern to the PSB’s: Asset quality The biggest concern in PSB’s today is the rise of NPA’s(non performing assets). In the year 2014, the Gross NPAs of the Public Sector Banks (PSBs) saw an increase of 38.2% while that of the private sector banks was comparatively lower at 13.6%. A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or instalment of principal has remained ‘past due’ for a specified period of time. In simple terms, an asset is tagged as non performing when it ceases to generate income for the lender. The NPAs are classified into two categories — gross NPAs and net NPAs. Gross NPAs are the sum total of all loan assets that are classified as NPAs as on balance sheet date, as per the Reserve Bank of India guidelines. Gross NPAs reflect the quality of loans made by banks. The rise in NPAs in 2014-15 has been attributed to the effects of global recession coupled with internal factors such as slowdown in the domestic economy. Credit growth As per RBI’s weekly statistical supplement, credit growth of Scheduled Commercial Banks (SCB) for the year 2014 stood at 14.8% which was slightly lower than 14.9% witnessed in FY13. The credit growth in PSB’s is around 14% compared to 16% from private sector banks. This shows PSB’s are lagging behind private banks w.r.t increase in credit disbursal. Deposit growth For the year 2014, SCBs showed a deposits growth of around 14% as compared to 13.1% for FY13. In this PSB’s account for around15% whereas private sector banks account for around 13%. Inspite of higher deposit growth in PSB’s , the credit growth does not match the figures of deposit growth. This shows the poor performance of PSB’s. Capital Adequacy Capital adequacy refers to the statutory minimum reserves of capital which a bank or other financial institution must have available. Capital Adequacy remained comfortable for the PSB’s but there is need for raising additional capital to meet Basel III norms. However with under performance of the PSB’s along with unfavourable market conditions, for PSB’s to meet the capital adequacy demand, the support from the government in form of capital infusion is needed. P J Nayak committee report on the governance of Board of Banks in India: The recommendations are as follows: Repealing of Bank nationalization Act (1970, 1980) and SBI and SBI subsidiaries Act as these acts mandate the Government to keep shareholding >50% in PSB’s and appointment of CMDs and board directors. Government should setup a Bank Investment Company (BIC), under Companies act, 2013 as a “Core investment company”. Government should transfer its shares of PSB’s, to BIC. Register all PSB’s as ‘subsidiary companies’ of BIC, under Companies act. Way ahead (Iasbaba’s view): The Centre’s plan to revive public sector banks is more an attempt to boost sagging public confidence in them rather than a radical effort at reform. Instead of focusing on capital infusion every time , the government can strengthen corporate governance in PSBs, infuse some much-needed professionalism, bring about greater transparency and accountability so that the banks can deliver  better return on its investments. Connecting the dots: Comment on the performance of public sector banks in India with special emphasis on non performing assets. Critically analyse the recommendations of P J Nayak committee on governance of Board of Banks in India. Should public sector banks be privatised? Critically analyse the statement with special emphasis on P J Nayak committee report.  

Aug 20, 2015 IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs - 19th & 20th August, 2015

ArchivesIASbaba's Daily Current Affairs- 19th & 20th August, 2015 INTERNATIONALIndia – Israel ties : A close look       (Analysis on WEST ASIA- Part II) India and Israel established full diplomatic relations in 1992 and since then the bilateral relationship between the two countries has blossomed, with defence and agriculture forming two main pillars of the bilateral agreement. However, in recent years, relations have seen rapid growth across a broad spectrum of areas and the future vision of the cooperation is of a strong hi-tech partnership as befits two knowledge economies.Why Israel matters a lot to India ?DEFENCE: India is the largest buyer of Israeli military equipment and Israel is the second-largest defence supplier to India after Russia. From 1999 to 2009, the military business between the two nations was worth around $9 billion. India and Israel also closely cooperate on anti-terror activities and have signed agreements, among other matters, on homeland and public security and protection of classified materials and information. Israel has also pledged support to the ‘Make in India’ mission in the defence sector.AGRICULTURE: This has been an important facet in the Indo-Israel relationship. India has benefited from Israel’s expertise in the sector, evident from the number of bilateral agreements signed between the two nations. While Indian agriculture is largely dependent on rain and an erratic monsoon, Israel, a global leader in drip irrigation, has pioneered desert agriculture with sparse supplies of water. India has benefited from Israeli technologies in horticulture mechanisation, protected cultivation, orchard and canopy management, nursery management, micro- irrigation and post-harvest management, particularly in Haryana and Maharashtra. Maharashtra Chief Minister Devendra Fadnavis recently visited Israel, seeking agro-technology to address the farming crisis in the Vidarbha and Marathwada regions.WATER MANAGEMENT: Technologically adept Israel has developed water-management technologies, located as it is in a semi-arid region with limited sources of fresh drinking water. Israel’s expertise includes recycling waste water and desalination. Indian companies and official delegations regularly visit the biannual Water Technology & Environment Control Exhibition & Conference, which showcases Israel’s water and energy technologies. IDE, an Israeli company, has built several desalination plants in India, including a 100-million-litre per day desalination plant at Nemelli in Tamil Nadu, commissioned in 2013, the second such plant in Chennai.TRADE: India’s total trade with Israel is $6.06 billion in 2013-14, up 57% over 2009-10. The trade balance stood in India’s favour at $ 1.44 billion in 2013-14. Mineral fuels and oils are India’s leading export to Israel worth $1.45 billion in 2013-14. India’s major imports from Israel in 2013-14 included natural or cultured pearls and precious stones, worth $1.20 billion. Stones and pearls are the second-largest commodity, in terms of value, exported to Israel from India after mineral fuels. Israel ranks 44th in terms of foreign direct investment in India, investing $82 million between April 2000 and February 2015. Since 2010, the two countries have been negotiating a free-trade agreement for goods and services, which should boost investments and trade ties.Way ahead: (Iasbaba’s view) Notwithstanding cooperation in agriculture, defence etc, both countries see themselves as isolated democracies threatened by neighbours that train, finance and encourage terrorism, therefore both countries also view their cooperative relationship as a strategic imperative.Connecting the dots: Do you agree with the view that Israel is a “natural ally” of India ? Agriculture and Defence are the two pillars which determined the relationship of India with Israel. Comment. India needs to develop a strategic relationship with Israel ? Analyse the statement with reference to cross border terrorism in India.ECONOMICSCapital infusion in public sector banks In the past 15 years, the Government has infused more than Rs.81, 000 crore capitals in PSU banks but this capital is eroding due to rising bad assets. With non-performing assets of public sector banks (PSBs) soaring of late (as of the January-March quarter, gross NPAs stood at 5.20 per cent compared with 5.63 per cent in December), the Finance Ministry has announced that it will infuse Rs.70,000 crore over the next four years. The capital infusion will be done in three tranches - Rs 25,000 crore in this fiscal and the next followed by Rs 10,000 crore each in 2017-18 and 2018-19.What are Non-Performing Assets (NPA’s)? Non-performing assets, also called non-performing loans, are loans,made by a bank or finance company, on which repayments or interest payments are not being made on time. A loan is an asset for a bank as the interest payments and the repayment of the principal create a stream of cash flows. It is from the interest payments than a bank makes its profits.What is Capital Infusion? When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. In the context of venture capital, it can also refer to funds received from a venture capitalist to either get the firm started or to save it from failing due to lack of cash.How does Capital Infusion boost economy? Adding Capital to banks is to enable them to lend to borrowers in selected sectors such as two wheelers, consumer durable, etc, at lower rates in order to stimulate demand. Capital Infusion will lower the cost of lending to banks under the Marginal Standing Facility Window (MSF) to improve liquidity in the system. More capital to PSU banks will lower the borrowing cost and increase their capacity to lend, besides promoting investments.Is the Rocky Road ahead for PSB’s? PSB executives feel that the thrust on efficiency is welcome but the timing was questionable. For, most state-owned banks face challenges due to big asset quality pressures, large scale retirement and a leadership gap at the top. Capital raising efforts by PSBs other than the capital infusion by the government face challenges because of their relatively low equity valuations compared to their private sector peers.What does the Moody’s Report Says?According to the Moody’s Investors Service The government’s plan to recapitalise public sector undertaking (PSU) banks to the tune of Rs.70, 000 crore over four years is ‘credit positive, but not a game changer’. Although the capital infusion plan is credit positive, we note that the capital amount is a fraction of the overall capital requirements over the next four years. Moody’s report does credit the government with changing the previous policy of providing capital to only select banks.Connecting the Dots: “Though the capital infusion plan is credit positive, banks still need access to equity markets to materially improve their capital levels”. Explain. Is the money through Capital Infusion enough to take care of the capital needs, and, if it is not, how easy or difficult will it be for the public sector banks to raise money from the markets?ENVIRONMENTClimate Change and India- What to expect?Note- This issue is not yet completed. We will come up with more detailed analysis after the Paris Talk. Any assumption at this stage is of less useBackground In December 2015, UNFCCC COP-21 or The Paris Talk is going to take place. US, China and EU have already declared their intentions and plan about emission reduction (voluntary targets). India being the fourth largest emitter is going to declare its stance later in September 2015.What is the debate? From long time there is a tussle between Developed vs. Developing World on the issue of Climate Change and mitigation efforts. After failure of Kyoto Protocol and Copenhagen Summit, Paris Talk is touted to be a game changer. But, there are many hurdles as well as uncertainties on whether a stringent enforcement could be established or not.The debate around India’s commitment India’s national scenario demands growth considering the domestic needs and requirements. Being a developing country and demand for huge population, India’s growth in industries and economy is inevitable. Consequently the emission will also increase in the process. India is trying its best to shift to renewable energy but major demand is fulfilled by Coal as a raw material. This is the major agenda for other developed nations. The myth of clean coal is exposed the moment USA started banking on its Shale Gas resources as earlier US was the proponent of Clean Coal Technology but now silent on this. India cannot give away its dependency in Coal for years to come. U.S and China have announced voluntary reduction by the end of 2030 but after reaching to peak. This is not practical for India at this point of time. Even if China peaks its GHG emissions by 2030, as it has committed, and the US manages to slash its emissions by 32 per cent by that year, these countries will still be spewing an estimated 14-17 tonnes of GHGs per capita. This will be more than double India's most liberally projected carbon emission level, of seven to eight tonnes per head in 2030. At present, its per capita GHG emissions are merely 1.7 tonnes.IASbaba’s View: A voluntary commitment by US and China just before Climate Talk-Paris is seen as a covert measure to avoid pressure or compulsory commitment by other nations. Developed countries are blaming Developing countries for the consequences of Climate Change that has direct relevance to their past wrong doings. Developing and Least Developing countries are demanding compensation (Loss and Damage) in the form of Funding and Technology Transfer. Developed world is not in favour of any compulsory fund allotment neither Transfer of Technology. They want developing countries to share the burden without any demand, mostly favouring their economy. There is a need to look on the greater picture of Climate Change catastrophe. All these negotiations are more of political and economic dealings unlike Environmental Concern. The Paris Talk should not end up like KYOTO or COPENHAGUN. Blame Game will only accelerate the issue and make it even worse.Connecting the dots: “Do you think Paris Climate Talk will bring some solace to Environment”. Comment in the context of present situation. ‘Climate Change Negotiations have become political and economic business rather than Environmental Concern’. Do you agree? The whole process of Carbon Emission Reduction in itself is flawed. Critically Comment 

Aug 19, 2015 PIB

IASbaba Press Information Bureau (PIB) - July 2015

Press Information Bureau-July 2015ArchivesNote- You might have missed other important articles on IASbaba. We request to subscribe immediately so as to not miss out anyone of them :) Enter your email at the right hand side, below 'Subscribe' button. General Studies-IHastkala exhibitions The exhibition aims to promote the majestic and decorative craft traditions of India.a The exhibition showcases Dhokra artefacts, oil lamps from the south, metal jali work on wood, Koftgiri craft such as shield with sword, Surahi (replicas from Mehrangarh fort), tile paintings, stone dust paintings, Venkatgiri wall hangings, Sanjhi art, Gond paintings, wooden patina finish panels, painted tiles, marble gold leaf artefacts and a host of other decoratives.Important terms for Art & CultureBrief highlights of some of the products on display Bell metal craft: The bell metal craft or Dhokra is one of the earliest known methods of metal casting. It is the original creative instinct of traditional tribal people of Bastar, Chhattisgarh and is 100% eco-friendly. Gond art: The word Gond means ‘Green Mountains’. The work of Gond artists is rooted in their folk tales and culture and thus story telling is a strong element of every Gond painting. Koftgiri: Ornamentation on armaments and weaponry was integral to Mughal and Rajput cultures. Motifs cover a wide variety of themes from flora and fauna, mythology to scenes from the lives of kings. Koftgiri is one such majestic craft embellished with precious metals. Sanjhi Art:Sanjhi is the art of hand cutting designs on paper. Sanjhi art products are created in stencil, filled with vibrant colors and are used for festive decorations.Women Entrepreneurs in FPI For promotion and development of food processing sector in the country, the Ministry is implementing a Central Sector Scheme for Infrastructure Development for Food Processing having components of Mega Food Parks and Integrated Cold Chain, Value Addition and Preservation Infrastructure. Under the scheme, financial assistance is provided in the form of grant-in-aid to eligible entrepreneurs, including women entrepreneurs, @ 50% in general areas and @ 75% in North-Eastern Region and difficult areas, subject to a maximum of Rs. 50.00 crore for establishment of Mega Food Park and Rs.10.00 crore for establishment of Cold Chain Infrastructure.Swadhar Scheme The Swadhar scheme was launched by the Union Ministry of Women and Child Development in 2002 for rehabilitation of women in difficult circumstances. The scheme provides shelter, food, clothing and care to the marginalized women/girls who are in need. The beneficiaries include widows deserted by their families and relatives, women prisoners released from jail and without family support, women survivors of natural disasters, women victims of terrorist/extremist violence etc. The implementing agencies are mainly NGOs.General Studies-IIDigital ‘Guddi-Gudda Board’ The Union Ministry of Women and Child Development has adopted the ‘Digital Guddi-Gudda Board’ as a Best Practice under BetiBachaoBetiPadhao scheme on the occasion of Digital India Week being observed from 1st July to 7th July, 2015. The digital Board has been popularized in the district of Jalgaon, Maharashtra and works as a platform for dissemination of IEC Material on BBBP as well as updating monthly birth statistics.National Skill Development Mission The National Skill Development Mission will provide a strong institutional framework at the Centre and States for implementation of skilling activities in the country. The Mission will have a three-tiered, high powered decision making structure. At its apex, the Mission’s Governing Council, chaired by the Prime Minister, will provide overall guidance and policy direction. The Steering Committee, chaired by Minister in Charge of Skill Development, will review the Mission’s activities in line with the direction set by the Governing Council. The Mission Directorate, with Secretary, Skill Development as Mission Director, will ensure implementation, coordination and convergence of skilling activities across Central Ministries/Departments and State Governments.Common Norms for Skill Development Schemes Currently, over 70-odd Skill Development Programmes (SDPs) are being implemented by Government of India, each with its own norms for eligibility criteria, duration of training, cost of training, outcomes, monitoring and tracking mechanism etc. Common Norms define the activities constituting ‘Skill Development’ in the country, skill development courses and their alignment with the National Skills Qualification Framework, broad input standards for training programmes and the outcomes expected from these programmes. Cost norms include support for components like mobilisation of candidates, trainers’ training, placement expenses, post-placement tracking/monitoring and infrastructure costs.Pradhan MantriKrishiSinchayeeYoiana (PMKSY) The major objective of the PMKSY is to achieve convergence of investments in irrigation at the field level, expand cultivable area under assured irrigation (HarKhetkopani), improve on-farm water use efficiency to reduce wastage of water, enhance the adoption of precision-irrigation and other water saving technologies (More crop per drop), enhance recharge of aquifers and introduce sustainable water conservation practices by exploring the feasibility of reusing treated municipal based water for peri-urban agriculture and attract greater private investment in precision irrigation system. The scheme also aims at bringing concerned Ministries/Departments/Agencies/Research and Financial Institutions engaged in creation/use/recycling/potential recycling of water, brought under a common platform, so that a comprehensive and holistic view of the entire "water cycle" is taken into account and proper water budgeting is done for all sectors namely, household, agriculture and industries.CCI Amends its Combination Regulations As part of its ongoing and regular efforts to make M&A filing requirements simpler and readily acceptable to various stakeholders, the Competition Commission of India (CCI) has revised its Combination Regulations, making them more forward looking, in keeping with some of the best practices in other jurisdictions. A key change brought about by the present amendments is in relation to the definition of the term “other document”. Further, the proposed amendments provide flexibility to parties regarding signing of the notice.RAA Launched by Dr. Kalam RashtriyaAvishkarAbhiyan (RAA) Seeks to Develop Scientific Temper Among School Children. RashtriyaAvishkarAbhiyan is a unique concept developed by the Ministry of Human Resource Development that aims to inculcate a spirit of inquiry, creativity and love for Science and Mathematics in school children. Under RashtriyaAvishkarAbhiyan, government schools will be mentored by Institutes like IITs/ IIMs/ IISERs and other Central Universities and reputed organisations through innovative programmes, student exchanges, demonstrations, student visits, etc to develop a natural sense of passion towards learning of Science and Maths.India & USA Launch of a New Initiative “PEACE” India and the United States of America signed a Memorandum of Understanding (MoU) on Cooperation to Establish the PACESetter Fund. A fund to support the Promoting Energy Access Through Clean Energy (PEACE) track of the U.S.-India Partnership to Advance Clean Energy (PACE) to accelerate the commercialization of off-grid clean energy through early-stage grant funding grants to develop and test innovative products, systems, and business models. It was agreed to cooperate through technical and commercial innovation and the advancement of clean energy in off-grid space.Repealing and Amending (Third) Bill, 2015 The Union Cabinet gave its ex-post facto approval for Repealing and Amending (Third) Bill, 2015, which was introduced in Lok Sabha for repealing 187 Acts. The Cabinet also approved introduction of a new Bill, namely, the Repealing and Amending (Fourth) Bill, 2015 in the Lok Sabha for the repeal of 295 Acts, identified for repeal by the concerned Ministries/Departments and the Legislative Department. As an ongoing process, the Repealing and Amending Bill is one of the periodical measures by which enactments which have ceased to be in force or have become obsolete or the retention whereof as separate Acts become unnecessary are repealed, or by which the formal defects detected in enactments are corrected.Jan Aushadhi Scheme The Government has launched ‘Jan Aushadhi Scheme’ to make available quality generic medicines at affordable prices to all, especially the poor, throughout the country, through outlets known as Jan Aushadhi Stores (JASs). Under the Jan Aushadhi Scheme, the State Governments are required to provide space in Government Hospital premises or any other suitable locations for the running of the Jan Aushadhi Stores (JAS). Bureau of Pharma PSUs of India (BPPI) is to provide one-time assistance of  Rs.2.50 lakhs as furnishing and establishment costs, start up cost for setting up a Jan Aushadhi Outlet. Any NGO/Charitable Society/Institution/Self Help Group with experience of minimum 3 years of successful operation in welfare activities, can also open the Jan Aushadhi store outside the hospital premises.  A margin of 16% on the sale price is built in the MRP of each drug.Voting by Overseas Electors The Government is considering to allow the alternative options of voting to overseas electors in the form of ‘e-Postal Ballot System’ which envisages making available bank postal ballot electronically to the NRI voters and thereafter return of the same by normal post and ‘proxy voting which would allow such voters to appoint a proxy after following certain formalities and exercise his franchise through the medium of the proxy so appointed. Since the proposal of amendment of the Representation of the People Act, 1950 and 1951 require consideration and approval of both the Houses of the Parliament; no time frame can be indicated.One Rank One Pension Scheme Government is aware that Ex-Servicemen Associations have been agitating for implementation of One Rank One Pension (OROP) Scheme from 2008 onwards. The policy of “One Rank One Pension” has been adopted by the Government to address the pension disparities, in the budget 2014-15. The modalities for implementation of OROP are under consideration of the Government. It will be implemented once the modalities are approved by the Government.Achievements Under Millennium Development Goals Under the Millennium Development Goals (MDGs), the MDG 5 target is to reduce maternal mortality ratio (MMR) by three quarters between 1990 and 2015. This translates to reducing the MMR from 560 in 1990 to 140 in 2015. India is likely to reach an MMR of 140 if the current compound rate of annual decline continues. MDG 4 target is for reduction of child mortality by two-third between 1990 and 2015. In terms of Infant Mortality Rate (IMR), this translates into IMR of 29/1000 live births to be achieved by 2015. As per the latest, Sample Registration System (SRS) Report published by the Registrar General of India(RGI) in 2013, the IMR in India is 40/1000 live births. As per SRS 2013, 15 States/UTs have already achieved MDG 4 (IMR ≤ 29) namely Kerala, Tamil Nadu, Goa, Andaman & Nicobar Islands, Chandigarh, Daman & Diu, Delhi, Lakshadweep, Puducherry, Manipur, Maharashtra, Nagaland, Tripura, Sikkim, Punjab. No targets have been set under MDG for Total Fertility Rate (TFR). The progress however for TFR as per SRS in 2011 and 2012 was 2.4 and has declined to 2.3 in 2013. 24 States and UTs having already achieved the replacement level of fertility of 2.1.ATAL Innovation Mission NITI Aayog has constituted an Expert Committee to work out the detailed contours of Atal Innovation Mission (AIM) and Self-Employment & Talent Utilisation (SETU).The Terms of Reference of the Expert Committee are as under: To review the existing initiatives aimed at promoting innovation and entrepreneurship in India, especially those efforts that result in widespread job growth and the creation of globally competitive enterprises; To make short and medium term recommendations for actionable policy initiatives aimed at creating an innovation and entrepreneur friendly eco-system including such elements as creation of world class innovation hubs and digital SMEs and innovation driven entrepreneurship in such sectors as education and health. To address any other related issues.Welfare/Pension Scheme for Artists Ministry of  Culture is implementing “Artistes Pension Scheme and Welfare Fund” to give pension to Persons Distinguished in Letters, Arts and such other walks of Life who may be in indigent Circumstances and their Dependents. Under the Scheme, artists whose personal income (including income of the spouse) does not exceed Rs. 4,000/- per month and who are not less than 58 years of age are considered for financial assistance of Rs. 4,000/- p.m. under Central Quota and  Rs. 3,500/- p.m. under Central-State Quota. The eligible artists should have made significant contribution in the field of arts, letters, etc. for being considered for financial assistance under this Scheme.Janani Suraksha Yojna The Janani Suraksha Yojana (JSY) is a centrally sponsored Scheme which is being implemented with the objective of reducing maternal and infant mortality by promoting institutional delivery among pregnant women. Under the JSY, eligible pregnant women are entitled for cash assistance irrespective of the age of mother and number of children for giving birth in a government or accredited private health facility. The scheme focuses on poor pregnant woman with a special dispensation for states that have low institutional delivery rates, namely, the states of Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh, Assam, Rajasthan, Odisha, and Jammu and Kashmir. While these States have been named Low Performing States (LPS) under the scheme, the remaining States/UTs have been named High Performing States (HPS).  The scheme also provides performance based incentives to women health volunteers known as ASHA (Accredited Social Health Activist) for promoting institutional delivery among pregnant women.General Studies-IIIDigital India Week (01/07) Several initiatives have been taken for introduction of Information Technology to empower people.  Some of the initiatives have resulted in development of products to extend various services in areas relating to health, education, labour and employment, commerce etc. The vision of Digital India programme also aims at inclusive growth in areas of electronic services, products, manufacturing and job opportunities etc.The vision of Digital India is centred on three key areas - Digital Infrastructure as a Utility to Every Citizen Governance & Services on Demand and Digital Empowerment of Citizens4 World-Class Broadband Products Developed by C-DOT India launched four world class Broadband products by C-DOT. With this India has become at par with all other developed countries in the world in respect of quality telecommunication services and effective penetration of advanced broadband based services. Two Wi-Fi products launched by C-DOT viz. Long Distance Wi-Fi and Solar powered Wi-Fi address the connectivity problem of rural areas, hilly terrain, highways, dense vegetation, tunnels etc.55 Cities Approved for Solar Cities So far, 55 existing cities in 27 States/UTs are being developed as solar cities in the country under ‘Development of Solar Cities programme’.PSLV successfully launches five UK satellites In its thirtieth flight, conducted from Satish Dhawan Space Centre (SDSC) SHAR, Sriharikota  (July 10, 2015), ISRO's Polar Satellite Launch Vehicle PSLV-C28 successfully launched three identical DMC3 commercial Earth Observation Satellites, along with two smaller satellites from United Kingdom, into a polar Sun Synchronous Orbit which was very close to the intended orbit of 647 km height. The five satellites together weighed about 1440 kg at lift-off. These five satellites were launched as part of the agreement entered into between DMC International Imaging (DMCii), a wholly owned subsidiary of Surrey Satellite Technology Limited (SSTL), UK and Antrix Corporation Limited, the commercial arm of the Indian Space Research Organisation (ISRO), a government of India Company under the Department of Space (DOS). This was the twenty ninth consecutively successful flight of PSLV.E-Nose for Environmental Monitoring Nagpur based National Environmental Engineering Research Institute (NEERI) of Council of Scientific and Industrial Research (CSIR) and the Centre for Development of Advanced Computing (C-DAC) have jointly developed an ‘Electronic Nose’ for environmental monitoring that can help sniff out a variety of volatile organic compounds (VOCs) and odorants at a pulp and paper mill industry with a prime objective to protect the health of thousands of workers working in this industry. This portable device measures odour concentration and odour intensity. This has been the first attempt in India to develop such a product using odour sensors that make use of intelligent software to identify odorous molecules.Civil Aviation Minister Launches GAGAN System GAGAN system (GPS AIDED GEO AUGMENTED NAVIGATION) is the first SBAS (Satellite Based Augmentation System) in the world certified for Approach with Vertical Guidance operating in the Equatorial Ionospheric region and the third SBAS to have achieved this feat, after WAAS of USA and EGNOS of Europe. GAGAN is a joint effort of Airport Authority of India (AAI) and Indian Space Research Organization (ISRO). In the aviation field, GAGAN will support more direct air routes, reduce fuel consumption and improve safety. In addition, GAGAN provides benefits to agriculture, all modes of transportation and public services such a defence services, security agencies and disaster recovery management by aiding in search and rescue to locate the disaster zone accurately.48% Growth in FDI Equity Inflows after Make in India The growth in FDI has been significant after the launch of Make in India initiatives. The FDI inflow under the approval route saw a growth of 87% during 2014-15 with inflow of US$ 2.22 billion despite more sectors having been liberalized during this period and with more than 90 percent of FDI being on automatic route. These indicators showcases remarkable pace of approval being accorded by the government and confidence of investors in the resurgent India. The increased inflow of Foreign Direct Investment (FDI) in India especially in a climate of contracting worldwide investments indicates the faith that overseas investors have imposed in the country's economy and the reforms initiated by the Government towards ease of doing business.IPR Policy to fully protect patents, GIs and copyrights The draft policy, focusses on stronger enforcement of IPR by increasing the manpower strength in IP offices and reducing the pendency of IPR filings. Most of the offices have done away with manual interface as all applications, queries and decisions are made online. Minister felicitates Micromax for acquiring 1.25th Million International Trademark. GOI sought to allay apprehensions in the minds of foreign investors about the strength of the Indian IPR regime, stating that final draft of the National IPR Policy has been arrived at through a transparent process with inputs from all stakeholders.Marketing of Indian Food Brands Agricultural and Processed Food Products Exports Development Authority (APEDA) under the administrative control of the Department of Commerce is implementing various schemes to extend financial assistance to the eligible exporters registered with it to boost the overall agri products exports. APEDA has initiated following special measures to promote agri& processed food in the international markets:- APEDA has introduced financial assistance to exporters in XIIth Five year plan for their Brand promotion in overseas markets for those brands which are of Indian origin through advertisement in international print/ electronic media etc. APEDA has also been providing financial assistance for undertaking activities like buyer-seller meet, product promotion, exchange of delegation and participation in international exhibitions/ fairs/ events etc.Food Processing Units During the 12th Five Year Plan, Ministry of Food Processing Industries (MoFPI) had launched a Centrally Sponsored Scheme - National Mission on Food Processing (NMFP). Under this scheme, State / UT Governments have been empowered to receive applications, and where found eligible sanction the applications with the approval of State Level Empowered Committee (SLEC) and release the grant-in-aid accordingly. Under the said scheme of National Mission on Food Processing, financial assistance for setting up of new food processing units is provided under the scheme of Technology Upgradation / Establishment / Modernization of Food Processing Industries, which aims at creation of new processing capacity and up-gradation of existing processing capabilities in the sector.Impact of Climate Change in Incidence of Diseases No increase in incidence of contagious diseases due to unprecedented changes in environment and climate has been documented by the National Centre for Disease Control (NCDC), Delhi. There is increasing concern, globally as well as in India, over the effects of climate change on human Health. As per World Health Organization (WHO), climate change affects the social and environmental determinants of health. Climate change can lead to extreme weather events such as storms, floods, cyclones etc. which could enhance the spread of diseases like vector borne diseases, food and water borne diseases, heat stroke etc.Objectives of PYKKA SchemeThe objectives of the Panchayat YuvaKridaAur Khel Abhiyan (PYKKA) scheme, which has since been revised and renamed as Rajiv Gandhi Khel Abhiyan (RGKA) Scheme To provide universal access to sports in rural areas and promote a sports culture among both boys and girls; To harness available and potential sporting talent among rural youth through a well designed competition structure from the block level; To put in place an effective mechanism to identify and nurture sporting talent in rural areas; To make focused efforts to give adequate training and exposure under existing schemes of the Ministry of Youth Affairs & Sports (MoYAS) and Sports Authority of India (SAI), to promising sportspersons coming out of this process; To promote both indigenous and modern games; and To create seamless integration between the competition structure right from the panchayat level through to the national level in order to facilitate exponential growth in the number of high performing sportspersons.India ranks at 12th position in terms of power generation There are thirty one countries including India in the world which generate electricity from nuclear source. According to the data published in May 2015, by Power Reactor Information System (PRIS) of International Atomic Energy Agency (IAEA), India ranked at 12th position in terms of power generation. However, it stood at 6th position in terms of number of reactors in operation country- wise, globally. India has signed Nuclear agreements with USA, France, Russia, Namibia, Mongolia, Republic of Korea, Argentine Republic, United Kingdom, Republic of Kazakhstan, Canada, Sri Lanka and Australia. India is open to negotiation with other friendly countries who seem to have potential to make contribution to India’s nuclear energy programme.Model Police Act The Model Act emphasized the need to have a professional police ‘service’ in a democratic society, which is efficient, effective, responsive to the needs of the people and accountable to the Rule of Law. The Act provided for social responsibilities of the police and emphasizes that the police would be governed by the principles of impartiality and human rights norms, with special attention to protection of weaker sections including minorities (preamble to the Act).Amendment in the Foreign Contribution Regulation Act The acceptance and utilization of foreign contribution is regulated under Foreign Contribution (Regulation) Act, 2010 (FCRA) and Foreign Contribution (Regulation) Rule, 2011 (FCRR) framed thereunder. They provide for procedure to grant registration and prior permission for receipt of foreign contribution and its utilization, maintenance of accounts, inspection of accounts of the association, etc. They also prescribe various offences and penalties that may be imposed, including suspension and cancellation of registration in case of violation of the provisions of FCRA and FCRR.Space co-operation agreement between India and Russia India and Russia pursue joint programmes in a few areas of space research. Indian Space Research Organisation (ISRO) and Russian Federal Space Agency (ROSCOSMOS) have signed a new Memorandum of Understanding (MoU) on expansion of cooperation in the field of the exploration and use of outer space for peaceful purposes. There is no transfer of space technology envisaged under this MoU. This new MoU provides scope for developing joint activities in areas of mutual interest, including satellite navigation; launch vehicle development; critical technologies for human spaceflight programme; remote sensing of Earth; space science and planetary exploration; and use of ground space infrastructure.'Make in India' Programme The ‘Make in India’ programme aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation. The ‘Make in India’ initiative does not target manufacturing sector alone, but also aims at promoting entrepreneurship in the country. The initiative is further aimed at creating a conducive environment for investment, modern and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between government and industry through positive mindset. 25 sectors have been identified under the ‘Make in India’ initiativeChinese Incursions There is no commonly delineated Line of Actual Control (LAC) between India and China. There are areas along the border where India and China have differing perception of LAC. Due to both sides undertaking patrolling upto their perception of the LAC, transgressions do occur. To resolve the border disputes, the two sides have appointed Special Representative (SR) to explore the framework for a boundary settlement from the political perspective of the overall bilateral relationship. The 18th round of Special Representative talks on the India-China boundary question was held in New Delhi from March, 2015. India and China are committed to resolve bilateral issues through dialogue and peaceful negotiations and in a fair, reasonable and mutually acceptable manner.Amendment in Negotiable Instrument Act The President of India has promulgated the Negotiable Instruments (Amendment) Ordinance, 2015 (No.6 of 2015). The Ordinance provides for determination of territorial jurisdiction of courts for trying cases relating to offence of dishonour of cheques under Section 138 of the Negotiable Instruments Act, 1881 (NI Act).Akash Missile System Indigenously designed, developed and produced Akash missile system has been inducted in Indian Air Force. Indian Air Force (IAF) has placed production order for 8 Squadrons out of which 4 Squadrons have already been delivered to IAF for deployment. Project for development of Akash Missile was started in 1983 under Integrated Guided Missile Development Programme (IGMDP). The infrastructure created during development and testing of systems/sub-systems, knowledge and expertise gained during development and production of various missile systems will help to bring down expenditure and time of development and production for future missile systems.Thank You :)All the Best !!

Aug 18, 2015 IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs - 18th August, 2015

Archives IASbaba's Daily Current Affairs- 18th August, 2015   INTERNATIONAL   India’s ties with West Asia : An analysis  (Part I) India’s relationship with the Middle East or the official United Nations term of "West Asia" is driven by the cold, hard logic of realism. India’s foreign policy establishment is devoting no small amount of effort to understand their country's role in a politically unstable, but exceedingly important, area of the world for Indian interests. The government is poised to launch its high-level engagements with West Asia, which is in the intense of changing political dynamics in the wake of growing threat from Islamic State (IS) and Iran nuclear deal. Also the government is looking at leveraging the position India enjoys as a country with world’s second largest Muslim population and which has robust ties with key players in the region, including UAE, Saudi Arabia, Israel and Iran, to play a befitting role. India and UAE economic relations: An analysis It is estimated that about 2.6 million Indians live in UAE with a remittance value of about $10 billion. UAE, is India's top trading partner in the entire West Asia North Africa (WANA) region, as it alone represents 25% of India's export to Gulf Cooperation Council(GCC) Indian exports to the UAE account for 5% of India's global exports. The main items of exports from India to UAE includes mineral fuels, natural or cultured pearls, cereals, gems and jewellery, manmade yarn, fabrics, metals, cotton yarn, marine products, machinery and equipment, plastic and linoleum products, tea and meat . In 2008-09, India emerged as one of the biggest trade partner of the UAE with bilateral trade between the two countries exceeding US$1.5 billion. India imports about 10% of its crude oil demand from UAE. Major items of imports from UAE include mineral fuels, mineral oils, natural or cultured pearls, precious or semi-precious stones, metal ores & metal scrap, sulphur and unroasted iron pyrites, electrical machinery and equipment and parts thereof, iron and steel etc.   Way ahead in India UAE economic relations : (Iasbaba’s view) There is a potential of about $1 trillion investments into India from UAE. Infrastructure development and real estate offer tremendous opportunities for UAE businesses in India. In agriculture sector, India can benefit from cold storage and warehousing network technology from UAE. Tourism sector is one of the areas that has good potential for future growth, especially medical tourism. Immigrants coming to India are already utilising Indian health services, including the ayurvedic establishments and spas. Another area with considerable scope for cooperation in tourism is construction and maintenance of hotels. There is good scope for UAE to invest in the over-all tourism sector in India, which would help pull tourists visiting the UAE to India as well. Since UAE is focusing on knowledge based industries and with India emerging as world leader in space, agriculture, pharmaceuticals and bio-technology, there is considerable scope for cooperation in technology transfer, R&D and for joint ventures.   Background : Gulf Cooperation Council: It is a regional intergovernmental political and economic union consisting of all Arab states of the Persian Gulf.  Its member states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Connecting the dots: Eventhough UAE’s economic, political and cultural links with India, dates back to more than a century , the relationship has not matured to the extent that was expected. Critically analyse.   ECONOMICS   Diminishing credibility of Indian Pharma A foreign drug safety regulator identifies serious data integrity issues provided by an Indian company. Yet, instead of investigating the accusations in a transparent manner, the Centre predictably cries foul. Instead of crying foul, Indian regulators should be examining the evidence and acting upon it. On What basis did EU ban Indian drugs? The European Commission stresses that the decision concerning a ban on 700 generic drugs was based on scientific and not trade considerations and in accordance with the advice of the scientific committee of the European Medicines Agency (EMA). The EU-wide step came following several country-specific bans, in Germany and France among others. Indian industry has argued that these medical products have been in use in Europe for several years without any specific vigilance reports against them - though the Europeans may well retort that a vitiated testing and approval process is sufficient reason for a ban, even in the absence of compound-specific reports. India has been in touch with European drug regulators to allay their apprehensions about the testing procedures in the Hyderabad facility.   How does this move effects Indian pharmaceutical industry? The country could lose about $1-1.2 billion worth of drug exports because of the decision taken by the European Commission to ban the drugs, according to Pharmaceuticals Export Promotion Council (Pharmexcil). India exported $15.4 billion worth of pharmaceutical products in 2014-15, with Europe accounting for $3 billion, or 20 per cent of the total. Out of the $3 billion, exports of generic medicines constituted about $1 billion and drug ingredients accounted for the rest. Is the “quick fix’’ culture and “chaltahai’’ attitude of India Increasing? If Indian companies have to export to western markets, where the returns are much higher than African or Latin American countries, they will have to meet their stringent standards. There is no question of any government compromising on quality in the case of a product as critical as medicine. The Indian regulators will also have to pull up their socks and ensure that the best global standards are being met instead of waiting for their western counterparts to point out the mistakes and then go on the defensive. The "non-tariff barriers’’ argument that is often raised to defend Indian goods against western curbs is not easy to accept in relation to faults found in the production of life-saving drugs . A few black sheep can give the entire nation a bad name and a hawk’s eye needs to be kept to check such malpractices. The US government has also been mounting pressure on India to tighten patent laws. However, the fact that MNCs have been “ever-greening’’ patents with cosmetic changes in their drugs merely to keep out competition has strengthened India’s case. Several court rulings have gone against the MNCs on the issue. India cannot afford to fritter away the competitive advantage that it has painstakingly built up in the pharma sector over the years and the huge benefit that flows from it to the sick and suffering.   Is Indian Pharma and drugs safety being recognized as the symbol of LOBBY & MANIPULATION? The fact that another Indian clinical research organization based in Chennai landed in trouble this time with the World Health Organization (WHO) makes matters even worse. The “notice of concern’’ issued by the United Nations health agency last month comes close on the heels of the 700 generic drugs being withdrawn in Europe. WHO stated that there had been critical lapses in a trial of HIV drugs, including the fact that two-thirds of patients' electrocardiograms (ECGs) turned out to be fake as details and dates had been changed by the Chennai firm. The WHO inspectors also criticised the standard of record-keeping in the trial, including apparent attempts to conceal documents from inspectors. Multinational pharma companies, that sell branded drugs at exorbitant prices, represent a formidable lobby opposed to Indian competitors who they have often accused of infringing patent rights. How the Drug Circulation in the world does actually works? A country’s drug regulator is well within its rights to decide which medicines are suitable for its population and which ones aren’t. What matters is whether it has systems in place to discharge its responsibilities. In what pharmaceutical companies call “established” markets such as western Europe and the US, where new drugs are almost always launched first, regulatory agencies approve a drug based on the results of safety and efficacy trials on human volunteers. As no drug is entirely free of side-effects, agencies take a decision based on the risk-benefit ratio. It is the regulator who decides that certain risks are acceptable when compared with the drug’s benefit.   How far is the DRUG REGULATOR responsible? Regulators in so called emerging markets such as India take their cues from the West. They usually prescribe a safety and efficacy trial on roughly 100 Indian volunteers so long as the drug is approved in its home country or a major market. Since India is predominantly an off-patent drugs market, a number of companies other than the drug’s innovator have traditionally made their copies of the drug available here, sometimes before the innovator. Since the regulatory barriers to entry are relatively low, India has hundreds of companies selling thousands of drug formulations. What are the Major Pitfalls in the Indian Approach? First, while in most cases drugs pass muster with all major regulators, in some cases that does not happen. So one country may approve a new drug, another might not for any number of reasons, including politics. Second, more relevant to the issue of banned drugs is that a medicine may prove unsafe after it has been marketed. Even a drug approved after rigorous clinical trials might throw up unacceptable risks when given to a larger population. That is why well-regulated markets have systems to monitor new drugs post-approval. This is usually a combination of post-market surveillance of new drugs and regulatory activity to get information about side-effects from doctors, hospitals, patients etc. The system works imperfectly, but it does work. Connecting the Dots: Why India still sells medicines banned elsewhere in the world? If two major market regulators (USA & France) take contradictory positions on ban of drugs, what should India do? (Example drug pioglitazone)

Aug 17, 2015 IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs - 15th & 17th August, 2015

Archives IASbaba's Daily Current Affairs- 15th & 17th August, 2015   NATIONAL   The Killer Scam-Vyapam Scam What is this scam about? The scam is an admission and recruitment scam involving politicians, senior government officials, business-persons and others in Madhya Pradesh. In it, undeserving candidates bribed politicians and MPPEB officials, through middlemen, to get high ranks in the entrance tests or secure jobs. Many of those who discovered these sordid facts whistleblowers and journalists responsible for unearthing the details have died in a spate of suspicious incidents.   How did they deceive authorities? The following tricks were used by those involved in the scam: Impersonation: All the information of the candidate remained the same, except the photograph. The candidate’s photograph was replaced by that of the impersonator and after the exam, it was changed back to the original. Obviously, the impersonators were brilliant students and they received huge sums to keep their mouths shut. Engine and bogie system: A person was strategically made to sit in front of the candidate in question. The person let them copy from his sheet or exchanged the sheet with them at the end of the exam. OMR sheets: The candidates in question were asked to leave their answer sheets blank and were given high marks in the exam. Or they were supplied with solved OMR sheets before they took the exam. Are the Whistle Blowers in India protected? The fact remains that in the absence of an institutional structure designed to protect witnesses, mere administrative enthusiasm can never serve the purpose. The nearest we have come to such a structure is in passing the Whistleblower Protection Act, 2011, which finally received Presidential assent. The Centre has moved to substantially amend it to ensure that whistleblowers are prevented from disclosing a wide variety of information including commercial secrets and IPR.   What is Whistleblowers Protection (Amendment) Bill, 2015? No public interest disclosure may be if it contains: Information likely to prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the state, relations with foreign state, or lead to incitement of an offence; Cabinet papers including records of deliberations of the Council of Ministers, secretaries and other officers except as provided for under the Right to Information Act, 2005. The information relates to commercial confidence, trade secrets, intellectual property (and such disclosure would harm a competitor). Information is received in confidence from a foreign government; The disclosure of the information would endanger the life or physical safety of a person, or identify the source of information given in confidence for law enforcement or security purposes. The disclosure of personal information if it has no relationship to any public interest, or if it causes unwarranted invasion of privacy. However, if such information has been made available under the Right to Information Act, 2005, then it may be disclosed.   What are the basic features of any law that addresses corruption? First and foremost, the man most competent to prove bribery is the man who gave it. On the principle that the man giving a bribe is being forced to pay his way, bribe-giving should be legal but bribe-taking should not. Absolute secrecy is the second must-have for any whistleblower law. Witness protection is not about being followed on a morning walk by a baton-wielding policeman. Witness protection is about specialist security servicemen, safe houses, new identity papers, secret relocation and resettlement. This presumes an institutional structure grounded in a legal framework riding on a generous budget. Next we have the problem of persecution and hounding. This occurs at two levels depending on whether the whistleblower is on the inside or outside. The insider suffers the fate of IAS officer Ashok Khemka. He is transferred 40 times in 22 years because he refuses to engage in dirty dealings. Finally, we come to the question of who investigates the data and who deals with the witnesses. Connecting the Dots: Is Vyapam scam reflecting the real face of Indian corruption? Do you agree with the statement “Educational extravaganza became an invitation to corruption bonanza”? Yes or No. Justify your answer   INTERNATIONAL India- Bangladesh: Time to Look at Teesta Having resolved the longstanding issue of enclaves during the prime minister’s recent visit to Bangladesh, New Delhi has to focus now on other bilateral issues, the most contentious one being the sharing of Teesta waters. In the case of Teesta River, which originates in Sikkim and flows through West Bengal into Bangladesh, settlement has not been arrived at for decades now.   What is the Teesta Issue all about? In 2013, an agreement was drafted which allowed for the 50:50 allocation of teesta waters between the countries during the lean season, when the real problems of allocation crop up. However, that was not acceptable. India and Bangladesh share 54 rivers between them. West Bengal has been opposing the treaty fearing that the loss of higher volume of water to the lower riparian would cause problems in the northern region of state, especially during drier months. It is estimated that the Teesta River has a mean annual flow of 60 billion cubic meters but a significant amount of this water flows only during wet season(June-Sept) leaving scant flow during the dry season(October-May) wherein the average flow gets reduced to about 500 million cubic metres (MCM) per month. This creates issues of equitable sharing during lean season. Bangladesh has claimed that West Bengal’s Gazaldoba barrage is ‘unilaterally’ channelizing a large volume of water on the Teesta, due to which the country’s historic flow has been reduced to only 10% and its Teesta Irrigation Project has suffered. This is further compounded by the downstream nature of Bangladesh wherein any construction by India affects the water flow available to Bangladesh. Furthermore, there are proposals to build 31 dams in the upper catchment area of the Teesta in Sikkim, along with the 4 dams that are already underway. One of the important factors responsible for diminishing flow of water is the building of about 12 hydel power projects over the Teesta in Sikkim where the river originates.   What proposals are made to augment the river flows during the non-monsoon months? The deficit in flows can be met by the transfer of water from other water-endowed basins. In this connection, the proposals made in the Indian River Linking (IRL) project could be considered. The Manas-Sankosh-Teesta-Ganga (MSTG) link canal is one of the links proposed under the Himalayan component of the IRL. It envisages diversion of the surplus waters of the Manas and Sankosh rivers to the Teesta, Ganga and beyond, to meet the requirements of water-deficit areas. By making suitable provisions in the link canal, it should be possible to release the required water into the Teesta during the summer to augment river flows, thus meeting the requirements being proposed for water-sharing with Bangladesh. What is Indian River Linking Project (IRL)? The Indian Rivers Inter-link is a proposed large-scale civil engineering project that aims to link India's rivers by a network of reservoirs and canals and so reduce persistent floods in some parts and water shortages in other parts of India. The Inter-link project has been split into three parts: a northern Himalayan rivers inter-link component a southern Peninsular component and starting 2005 An intrastate rivers linking component.   What is (MSTG) link canal? The Manas-Sankosh-Teesta-Ganga (MSTG) link canal is one of the links proposed under the Himalayan component of the IRL. The Manas-Sankosh-Teesta- Ganga link canal envisages diversion of surplus water of Manas and Sankosh rivers with supplementation from the intermediate major streams for the benefit of augmenting the flows of Ganga at Farakka. It aims to further transfer it to water short areas of Krishna, Pennar and Cauvery basins and providing irrigation facilities to the enroute command areas. This link will comprise two dams on rivers Manas and Sankosh inside Bhutan territory and a gravity flow canal for diverting substantial quantum of water to river Ganga upstream of Farakka barrage. How is India working for a permanent solution? A possible option considered was that since the regeneration of flow in the river channel between the Gajoldoba and Dalia barrages is about 25 per cent, which would be available at the downstream barrage the additional 25 per cent demanded by Bangladesh could be released by West Bengal from the upstream barrage. But the state had its own compulsions for meeting irrigation needs as the summer flows are generally erratic. Hence, West Bengal did not want to commit to releasing water from the upstream barrage, at the cost of its major project envisaging the irrigation of 9.22 lakh hectares in the ultimate stage. Thus, the water-sharing arrangement got embroiled in domestic hydro-politics, stalling further action to find an acceptable solution to the dispute.   IAS BABA’s View Teesta water is an absolute right of Bangladesh, which is recognised by many international instruments and customary international law. Earlier, Indo-Pakistan Krishenganga water sharing disputes was settled under the World Bank as a third party. Now it is high time for Bangladesh to seek remedy by such kinds of international Organizations and International courts. Connecting the Dots: Historically, the progress of the India-Bangladesh relationship has always hinged on issues of water-sharing. Critically Analyze. Discuss all the realistic concerns that make it essential for the Indian government to provide a fair deal to Bangladesh.   ECONOMICS   New financial commission While countries in the West are giving their central banks more authority and regulatory powers, India is proposing a system to reduce the RBI to a shadow of itself. The code, if implemented, will undermine RBI's ability to rein-in inflation. This will also discourage investors in taking risks in the future as RBI has been viewed by many as an anchor for financial stability in the country. What does the new draft says? The Monetary Policy Committee (MPC) will be chaired by the RBI governor It will also comprise a member of the RBI board and an RBI employee Decisions at MPC meetings will be taken by a majority vote of the members present and voting The previous draft had suggested the RBI governor have the power to supersede any MPC decision Each member of the MPC will have to state the reasons for voting in favour of or against proposed resolutions What is the proposed shift in the structure? At present, the monetary policy is framed by the central bank after factoring in the recommendations of an expert advisory committee, assessing multiple economic indicators in domestic and global markets and, finally, consulting with the finance minister on the broader policy direction. The final decision, however, rests with the governor. But, under the proposed framework, RBI governor will be one of the several members of the committee and the government will dictate the policy. In effect, the power to decide the country’s monetary policy will be shifted from an independent, credible institution to the political interests of the government, for whom monetary policy will then be among the many tools under disposal to work operate in line with its political agenda. What are the Possible Conflicts of the new proposal? The potential for conflict of interest is vast. So far, the government has been interested in securing high growth rates, not only as an electoral plank but also as a means to finance various expenditure schemes proposed in each Budget. The RBI, on the other hand, is tasked with controlling inflation, which often accompanies high growth rates. Raising interest rates is the best tool to achieve this, but it also puts a dampener on growth. This will give room to major conflict of interests in the functioning of the MPC. For instance, a government-controlled MPC can push for a rate cut, even if the RBI is not fully convinced with the signals emanating from the inflation-front. The RBI will then be forced to sing the same tune of the finance ministry. This can put the economy in serious trouble in the long term. IAS BABA’s View Sidelining the central bank according to political whims and fancies of politics, the government will risk making India’s economy a black spot in the eyes of rest of the world with no credible, independent monetary policy framework. An RBI, with little control on the monetary policy, will not be a favorite in the eyes of global investors and international rating agencies, which would do no good for India, which is aspiring to become a global economic power. Connecting the Dots: What is the exact aim of the proposed Indian Financial Code (IFC)? What is it trying to fix? Is a need for a fix at all? Is the Government undermining the RBI’s Independence with its new proposals?    

Aug 16, 2015 Motivational Articles

Creative Guidance - Footprints of Success! - Inspirational & Educative Articles

  Footprints of Success   A tree doesn’t grow tall to reach the sun, nor does it grow to compete with its neighboring tree. It grows because growing is its very nature. Growing, evolving and attaining to your true potential has very little to do with what is happening around you and has everything to do with what is happening within you. Reading a success story of a person, and attaining to one are two completely different things. Dissect a human being into thousand parts, you will find everything there except life. Dissect the life of a successful person, you will find everything except success. Let us understand the word success. What is success all about, who defines it, why is it necessary and is it as glamorous as people project it to be? We have heard people talk about discipline, dedication, hard work, punctuality and a host of other qualities one has to cultivate in order to attain to success. But honestly, how many of these qualities can you actually remember and practice, how many of these qualities can become the bedrock on which you can build your temple of success. History has given us all kinds of successful people. Success of simplicity in Gandhi, success of stupidity in Hitler, success of innovation in Edison, success of imagination in Disney, success of silence in Buddha. If at all we can learn something from the rich vibrant past of human evolution, it is that with forceful assertion of your individuality, you can turn anything into success. It is not a certain quality of yours that will determine your success; it is the understanding of yourself and your individuality. To attain to any kind of success, knowing who you are is infinitely more important than knowing what you do. Success is simply the afterglow of your individual creative self shinning bright in the darkness of human struggle. You cannot spread the light, unless you possess it yourself. You cannot succeed in the world unless you find success within yourself first. In reality, success is simply a journey inward. The deeper you reach within yourself, the farther you can go in the world. Finding the method, system and process of self discovery is the first step on your ladder of success. The day you understand yourself fully, every single expression of yours becomes a source of creativity, inspiration and drive. You don’t have to strive to succeed; success simply becomes your second nature. Then the word success will only make sense to those who are trying to understand your life. As for you, it just doesn’t matter.  Anyways success is neither the destination nor the journey; it is simply the footprints you leave behind.     Copyright Disclaimer “No part of the articles in this section, in part or in full shall be reproduced without the written consent of the author. The articles are a copyright of The Ahamo Movement and IASBABA.”

Aug 14, 2015 IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs - 14th August, 2015

Archives IASbaba's Daily Current Affairs- 14th August, 2015   NATIONAL   Shed the taboo around organ donation Organ donation and transplantation provides a second chance at life for thousands of people each year. The growing disparity between the rich and poor, demand for human organs and availability of technology in the country makes the trading of organs a quick means to riches for some and a relief for others. Invariably Organ trade leads to exploitation of the poverty-stricken people by tempting them with financial gains to meet their immediate short-term financial needs. The sad reality is that India has one of the lowest organ donation rates among developed and developing nations. What are the Reasons for the lowest organ Donation in India? Finding a donor is the main issue in the country. Lack of awareness and improper infrastructure facilities are the main reasons behind the existing scenario. Administrative hurdles and conservative mindset further affect organ transplantation scenario in India. What are the Myths about organ Donation in India? There are a lot of myths associated with organ donation which needs to be addressed to solve this problem. Most Indians generally believe that it is against the nature and religion that body parts are mutilated. Some are suspicious that the hospital staff may not work hard to save their lives if they want organs. Others believe that there might be a temptation to declare them dead before they are actually dead. What are the Administrative drawbacks? Lack of a centralized registry for organ donation acts as another major hurdle for the people to donate organs or get data about donors. Also, there is a problem of certifying brain deaths; if people are not aware of brain deaths; it becomes difficult to convince the relatives of the patients for organ donation. India currently follows a very loose version of the ‘opt-in’ framework. Under this framework, harvesting of organs is only done after the donor explicitly agrees to it. Countries such as the US, UK, Germany, and Netherlands have a ‘family consent’ system in place which helps raise the number of donors. What is the Donor Card? Signing a donor card is the first step in making your wishes about donation known. A donor card is not a legal document but an expression of one’s willingness to donate. While signing a donor card demonstrates one’s desire to donate organ after death, letting the family or friends know about the decision is very important. That is because family members will be asked to give consent for the donation. The decision will be considered final when they give consent. Vital organs such as heart, liver, lungs, kidneys, pancreas and intestines, and tissues such as corneas, heart valves, skin, bones, ligaments, tendons, veins, etc. can be donated in case of brain death. What is Green Corridor Concept? Several new initiatives have come up to facilitate smoother and better transplants, and hasten the process of organ retrieval. The Green Corridor concept is a great idea as it involves the unhindered transport of an organ to the hospital, through a series of alerts at traffic junctions, airports and so on. Experts propose a formalisation of the Green Corridor by creating a new code, akin to those used in natural disasters, to be used for any organ retrieval or transport, which will ensure that all stakeholders’ civic bodies, traffic police, ambulance operators and doctors align to ensure the timely movement of organs. What are the Legal Provisions w.r.t Organ Donation? The Government passed the Transplantation of Human Organ Act (THO) in 1994 which made unrelated transplants illegal and deceased donation a legal option with the acceptance of brain death. Government of India enacted the ‘Transplantation of Human Organs (Amendment) Act in 2011 which made provisions for simplifying the procedure for human organ donation. The recently notified Transplantation of Human Organs and Tissues Rules(THOT), 2014 has many provisions to remove the impediments to organ donation while curbing misuse/misinterpretation of the rules. IAS BABA’s View The availability and optimal utilisation of organs can be enhanced through a national declaration on cadaveric donation that puts forth an ‘opt-out’ framework in place. Such a framework, through the use of IT, will ensure that only those who opt out willingly will not be used as organ donors. This declaration will give India the unique position of having taken up a visionary public health initiative on such a large scale. Connecting the Dots: What are the Reasons behind the imbalance between the number of organs donated and the number of people waiting for a transplant? “Making organs a commodity is fraught with erosion of social, moral, and ethical values and is not an alternative that can be acceptable to meet organ requirements in a civilized society”. Critically analyze.   China factor in India Maldives relation: an analysis Maldives is located south of India's Lakshadweep Islands in the Indian Ocean. Eight degree channel separates Lakshadweep islands from Maldives. Over the years India and Maldives have developed close strategic, military, economic and cultural relations with each other. Both nations are founding members of the South Asian Association for Regional Cooperation (SAARC), the South Asian Economic Union and signatories to the South Asia Free Trade Agreement.   What is the issue now? On July 22, 2015 the People’s Majlis, the unicameral parliament of the Maldives, passed a bill amending the 2008 Constitution to allow foreign ownership of land. The bill amended Article 251, and added a new chapter to the Maldives Constitution. What was article 251 all about? Article 251 of the Constitution, in its previous form, prohibited foreign ownership of land. It said that: (a) no foreign party, shall own or be given ownership of any part of the territory of the Maldives, (b) a foreign party shall not receive a lease of, or be given in any other way, any part of the territory of the Maldives for a period exceeding 99 years and,(c) no part of the territory of the Maldives shall be used for foreign military purposes without the approval of the majority of the total membership of the People’s Majlis. What is the amendment? It allows foreigners to own freehold land, as long as they meet certain criteria, including that the project built on the land must be approved by Parliament, there must be a minimum investment of US $ 1 billion “in the territory of the Maldives”, and upon the project’s reaching completion, “at least 70 per cent of the land must have been reclaimed from the ocean and be visible at medium tide”. It also declares that allowing a foreign party to own land under these specific circumstances “does not undermine the Maldivian state’s sovereignty over its territory and does not amount to loss of territory”. Should India be worried regarding the amendment? Indian government officials have voiced concern that the law will be used by China to extend its military influence and that the Indian Ocean would not remain as a demilitarized zone. Also with the amendment, Chinese investments will easily flow into Maldives and China is known for reclamation of land from the sea, with its immense dredging capabilities on display in the South China Sea. This move by Maldives will further strengthen the maritime silk route project of china and also provides greater access to Indian ocean. With china taking a keen interest in expanding its strategic footprint in South Asia and the Indian Ocean, India has good reasons to worry. Connecting the dots: Comment on geo-strategic importance of Maldives to India, in maintaining supremacy over Indian ocean. India supports Asian Infrastructure and Investment Bank initiative of China, should it also be a part of Maritime silk route initiative. Critically analyse.

Aug 13, 2015 IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs - 13th August, 2015

Archives IASbaba's Daily Current Affairs- 13th August, 2015   NATIONAL   Higher education sector in India : An analysis India's higher education system is the third largest in the world, next to the United Statesand China and it is likely to surpass the US in the next five years and China in the next 15 years to be the largest system of higher education in the world. Higher education in India has recorded impressive growth since Independence. As of 2011, India has 42 central universities, 275 state universities, 130 deemed universities, 90 private universities, 5 institutions established and functioning under the State Act, and 33 Institutes of National Importance. University Grants Commission (UGC), by designing programmes and implementing various schemes through academic, administrative and financial support, has contributed in the growth and development of Indian higher education.   Critical analysis of higher education sector in India: The gross enrolment into higher education has remained at about 20% over the years. We have only 722 universities, as against the National Knowledge Commission recommendation of 1,500. Another challenge that confronts India is in the disparities in access to education, especially in terms of economic class, gender, caste and ethnic and religious belonging. In 2008, as against an all-India enrolment rate of 17 per cent, the break-up for these categories was 7 per cent for Scheduled Tribes (ST), 11 per cent for Scheduled Castes (SC), 28 per cent for Other Backward Classes (OBC) and 47 per cent for higher castes. In addition, it was 9 per cent for Muslims, 18 per cent for Hindus and 30 per cent for Christians. Between 1996 and 2008, private institutions expanded every year at the rate of 10 per cent. The corresponding decline in government and private-aided institutions, by 1.65 per cent yearly, resulted in increase in the share of students in the private institutions. The quality of higher education is an equally serious problem in higher education sector in India. According to Industry reports supported by NASSCOM, only 25% of technical graduates and about 15% of other graduates are considered employable by IT/ITES industry due to lack of basic skills required for the job. Apart from these, there is the issue of ensuring the access of Indian education to global frontiers. In this, a popular view is to allow global universities to set up campuses in India. Enabling an education that is relevant to the economy and society is another challenge. Another issue relates to reform in the University Grants Commission(UGC) w.r.t its structure and functioning.   Yashpal committee recommendations on reforms in higher education sector: All universities must be teaching cum research universities. All research bodies must connect with universities in their vicinity and create teaching opportunities for their researchers. There should be no discrimination between Central and State funded universities. All benefits extended to Central Universities must also be extended by State Governments to the state universities and the Centre must incentivise the States to do so. All private universities must submit to a national accreditation system. Private degree-granting universities must not be confined to select areas like technology, medicine, management, finance etc. They must be required to be comprehensive universities covering the arts and social and natural sciences too. There must be tight regulation of private universities in terms of auditing of accounts, payment of minimum salaries to teachers, certain percentage of seats reserved for meritorious students who are to be provided scholarships etc. Granting of Deemed University status to be put on hold. All existing Deemed Universities to be given three years to shape up (to have strong research programmes, and become a comprehensive university as defined in this report) failing which their Deemed University status is to be withdrawn. National tests like the GRE must be organised round the year to get admissions into universities. Students from all over India must be allowed to take the tests as many times as they like and their best score can be sent to the universities for admission. Setting up National Commission for Higher Education and Research (NCHER) under which the various functions of the existing regulatory agencies would be subsumed and it becomes an apex regulating agency of the higher education sector. Connecting the dots: Examine the issues associated with higher education sector in India ? Suggest measures to overcome the same. Implementation of Yashpal committee report acts as a game changer in higher education sector of India. Critically analyse. Enrolment ratio in higher education is only 20% in India .At this backdrop critically analyse preparedness of India in reaping Demographic Dividend.   ECONOMICS Capital infusion in public sector banks In the past 15 years, the Government has infused more than Rs.81, 000 crore capitals in PSU banks but this capital is eroding due to rising bad assets. With non-performing assets of public sector banks (PSBs) soaring of late (as of the January-March quarter, gross NPAs stood at 5.20 per cent compared with 5.63 per cent in December), the Finance Ministry has announced that it will infuse Rs.70,000 crore over the next four years. The capital infusion will be done in three tranches - Rs 25,000 crore in this fiscal and the next followed by Rs 10,000 crore each in 2017-18 and 2018-19. What are Non-Performing Assets (NPA’s)? Non-performing assets, also called non-performing loans, are loans,made by a bank or finance company, on which repayments or interest payments are not being made on time. A loan is an asset for a bank as the interest payments and the repayment of the principal create a stream of cash flows. It is from the interest payments than a bank makes its profits. What is Capital Infusion? When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. In the context of venture capital, it can also refer to funds received from a venture capitalist to either get the firm started or to save it from failing due to lack of cash. How does Capital Infusion boost economy? Adding Capital to banks is to enable them to lend to borrowers in selected sectors such as two wheelers, consumer durable, etc, at lower rates in order to stimulate demand. Capital Infusion will lower the cost of lending to banks under the Marginal Standing Facility Window (MSF) to improve liquidity in the system. More capital to PSU banks will lower the borrowing cost and increase their capacity to lend, besides promoting investments. Is the Rocky Road ahead for PSB’s? PSB executives feel that the thrust on efficiency is welcome but the timing was questionable. For, most state-owned banks face challenges due to big asset quality pressures, large scale retirement and a leadership gap at the top. Capital raising efforts by PSBs other than the capital infusion by the government, face challenges because of their relatively low equity valuations compared to their private sector peers. What does the Moody’s Report Says? According to the Moody’s Investors Service The government’s plan to recapitalise public sector undertaking (PSU) banks to the tune of Rs.70, 000 crore over four years is ‘credit positive, but not a game changer’. Although the capital infusion plan is credit positive, we note that the capital amount is a fraction of the overall capital requirements over the next four years. Moody’s report does credit the government with changing the previous policy of providing capital to only select banks. Connecting the Dots: “Though the capital infusion plan is credit positive, banks still need access to equity markets to materially improve their capital levels”. Explain. Is the money through Capital Infusion enough to take care of the capital needs, and, if it is not, how easy or difficult will it be for the public sector banks to raise money from the markets?

Aug 12, 2015 IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs - 12th August, 2015

Archives IASbaba's Daily Current Affairs- 12th August, 2015   NATIONAL   Privatisation of Air India : A no from the government Air Indiais the flag carrier airline of India owned by Air India Limited (AIL), a Government of India  It is the third largest airline in India (after IndiGo and Jet Airways) in domestic market share, and operates a fleet of Airbus and Boeing aircraft serving various domestic and international airports. It was once the largest operator in theIndian subcontinent with a market share of over 60%. Indifferent financial performance and service, labour trouble pushed it to fourth place in India, behind low cost carriers like IndiGo, SpiceJet, and Jet Airways. Between September 2007 and May 2011, Air India's domestic market share declined from 19.2% to 14%, primarily because of stiff competition from private Indian carriers. At this backdrop, question of Air India privatisation has come up and is making news for over a decade. Why the issue now? The demand for supplementary grants presented to the parliament on 31st july 2015, government asks for an additional Rs 800 crore to Air India as equity infusion. This demand will be met through additional expenditure from public money and not by any savings of air india. The significance of above lies, not in the amount of money, but in the political context and the economic policy implications of the manner in which the taxpayer's money is being spent. The logic becomes even more questionable when one realises that the Budget for 2015-16 had already provided Rs 2,500 crore for equity infusion into the loss-making Air India. It would appear, therefore, that so weak is Air India's financial situation that this amount is considered inadequate, prompting the government to raise capital infusion by Rs 800 crore. But if we look back, the government's approach to an ailing PSU looks even more problematic. For the last several years, the government has been infusing additional capital into Air India - Rs 5,780 crore in 2014-15, Rs 6,000 crore each in 2012-13 and 2013-14, Rs 1,200 crore each in 2010-11 and 2011-12 and Rs 800 crore in 2009-10.   Probable reason behind non privatisation: (Iasbaba’s view) The government needs what is called as national airline to keep ferrying political leaders in power and even government officials across the country or even abroad on terms that are easy for them, but expensive for the nation. Take a look at the costs the government has incurred on chartering Air India flights for ferrying the Prime minister. Former Prime Minister Manmohan Singh undertook 73 foreign visits between 2004 and 2014, entailing a travel time of 246 days. But the problem is that for as many as five of his last visits (17 days), the bills for chartering the Air India aircraft are still under process and the chartering costs for the remaining 68 foreign visits came to around Rs 700 crore. For Prime Minister Narendra Modi, who has so far used the Air India chartered flights for 55 days during his 13 foreign visits, no bills for as many as eight visits have been received by the government, bills for four visits are under process and the bill for only one visit has been computed. Which other airline will agree to offer such easy terms for settling bills for chartering its aircraft? How is government trying to defend the move: Following financial unrest in 2006-07 , Air India has undergone lot of restructuring plans which are still in progress. In July 2009,SBI Capital Markets was appointed to prepare a road map for the recovery of the airline. Air india now is a part of the global star alliance. Following restructure in 2012, the aircraft has done well and the statistics speak for it. The post-tax losses suffered by the national carrier had come down from Rs 7,560 crore in 2011-12 and Rs 5,490 crore in 2012-13 to Rs 5,389 crore in 2013-14. Its operating loss was also on the decline from Rs 5,141 crore in 2011-12 and Rs 3,807 crore in 2012-13 to Rs 2,124 crore in 2013-14. The airline was expected to be EBIDTA (earnings before interest, depreciation, taxes and amortisation) positive by Rs 771 crore in 2013-14 as against Rs 192 crore in 2012-13. After joining Star Alliance, Air India’s passenger revenue is expected to rise by 3-5 per cent as a result of cross-feed to and from the partner airlines of this global airlines’ grouping, this move would benefit the passengers as well. Is the government defence justified? Since the financial restructuring has been done in 2012 and is still going on , we have to wait for another couple more years , to look into the statistics and comment on whether the government defence for Air India is justified or not. Connecting the dots: Should Air India be privatised ? Critically analyse. Comment on the feasibility of privatisation of national air carrier Air India.   Sugar industry of india under turmoil: India is the world’s largest producer of sugarcane and second largest producer of sugar after Cuba. This industry involves a total capital investment of Rs. 1,250 crore and provides employment to 2.86 lakh workers. In addition, 2.50 crore sugarcane growers also get benefit from this industry. Characteristics of sugar industry in india: Sugar industry in India is controlled. The price of sugarcane which the farmers receive from the mills is fixed by the government in form of FRP and FRP-Fair Remunerative Price fixed by union government and is generally low. SAP-State Administered Price decided upon by state government and is generally high (the mill owners are compelled to agree with SAP over FRP). The mill owners must give 10% of their production to the union government which they use to supply to the state governments for their state Public Distribution Systems (PDSs). The market is also heavily government controlled. The export and import of sugar is decided by the government depending upon the domestic demand.   Low yield of sugarcane: Although India has the largest area under sugarcane cultivation, the yield per hectare is extremely low as compared to some of the major sugarcane producing countries of the world. For example, India’s yield is only 64.5 tonnes/hectare as compared to 90 tonnes in Java and 121 tonnes in Hawaii. Short crushing season: Manufacturing of sugar is a seasonal phenomena with a short crushing season varying normally from 4 to 7 months in a year. The mills and its workers remain idle during the remaining period of the year, thus creating financial problems for the industry as a whole. Fluctuating production trends: Sugarcane has to compete with several other food and cash crops like cotton, oil seeds, rice, etc. Consequently, the land available to sugarcane cultivation is not the same and the total production of sugarcane fluctuates. This affects the supply of sugarcane to the mills and the production of sugar also varies from year to year. Regional imbalances in distribution: Over half of sugar mills are located in Maharashtra and Uttar Pradesh and about 60 per cent of the production comes from these two states. On the other hand, there are several states in the north-east, Jammu and Kashmir and Orissa where there is no appreciable growth of this industry. Low per capita consumption: The per capita annual consumption of sugar in India is only 16.3 kg as against 48.8 kg in the USA., 53.6 kg in U.K., 57.1 kg in Australia and 78.2 kg in Cuba and the world average of about 21,1 kg. This result in low market demand and creates problems of sale of sugar. The turmoil : The industry is facing liquidity crunch with unpaid cane prices arrears built up to around Rs 14,000 crores to farmers. Falling sugarcane prices due to increased supply in the market. Due to faulty pricing of FRP and SAP, farmers tend to produce more and thereby a decrease in sugarcane prices. Mill owners are not able to export excess sugar do to control from the union government. Government’s effort to solve the disturbance: Looking into Rangarajan committee report on decontrol of sugar industry. The report talks about two-phased cane price payment system which involves paying the FRPto the farmers at the time of the cane delivery and adjusting it later against the final payment amounting to 70 per cent of the total revenue generated from the sale of sugar and its by-products. Such a pricing formula would strike a balance between the prices of sugar and sugarcane, on the one hand, and between the demand and supply of sugar on the other. Export of surplus sugar to address domestic over-supply and price decrease. Increase in mixing ethanolwith petrol from the present two per cent to five per cent to begin with and 10 per cent subsequently. Strengthening co-operative mills w.r.t their structuring and democratic functioning. Connecting the dots: Write a note on decontrol of sugar industry in India with special reference to Rangarajan committee report. Enumerate the problems faced by sugar industry in India. Delineate the sugarcane growing regions of India with special focus on factors that contribute to the growth.   DO YOU KNOW ?? Swachh Bharat rankings Mysuru tops the Swachh Bharat rankings among 476 cities in the country. Also three more from Karnataka - Hassan, Mandya and Bengaluru – have figured in the list of 'the best 10' in the country. West Bengal had 25 cities/towns in the first 100, according to the survey. The data was released by the Union Ministry of Urban Development (MoUD). The MoUD’s report was mainly based on the assessment of municipal areas for minimal open defecation, effective solid waste management where the city awaits major reforms in the last couple of years. Nepal – New Constitution Nepal finally signed a breakthrough pact on the new Constitution on 8th August, 2015 Sundar Pichai India-born Sundar Pichai was named CEO of Google on Tuesday by the company's founders Larry Page and Sergei Brin in course of a re-organization that created a mother company called Alphabet.

Aug 11, 2015 IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs - 11th August, 2015

Archives IASbaba's Daily Current Affairs- 11th August, 2015   NATIONAL   Railway safety in India: A keen look The recent incident of twin train derailment in Madhya Pradesh has provoked people to ask the question, are railways safe in India? Between January 2007 and September 2011, more than 2,000 people have died in 738 railway accidents across the country. A statistical look into railway accidents and safety: Derailments constitute 50% of the total rail accidents, followed by 36% accidents at unmanned level crossings gates, 5% collisions, 4% accidents at man level crossing gates , 2% fire accidents and 3% due to misc reasons. Collisions which are 5% of total tally are responsible for 24% of total deaths and 26% of total injuries. Derailments with half of total train accidents constitutes to 4% deaths and 27% injuries. Unmanned level crossing gates accounted to 59% of total deaths and 39% injuries. Fire accidents resulted in 2% deaths and 1% injuries.    Reasons for lack of railway safety: Lack of fire detection systems:Most trains in India still lack effective systems to detect smoke and fire. In some trains, the fire alarm systems have been installed in air-conditioned coaches, while other compartments have been neglected. In open compartments, it is more difficult to detect smoke. Lack of anti-collision technologies: These are devices that automatically halt the train if it overshoots a red signal. “India, which has the world’s fourth-largest railway network after the U.S. China and Russia, still doesn’t have such safety devices. Such technologies could have helped prevent the 32 train collisions that took place in India since 2008, according to official figures. Staff deficit: Speeding and skipping red signals are the main causes of concern, human error is another common cause of accidents. The reason for this is partly that there is a shortage of staff, meaning that workers are often overworked. According to official figures, there were 18 train accidents last year due to faults of drivers and other railway staff. Inappropriate maintenance of tracks: A significant number of accidents in India are caused by derailments and for this derelict tracks are to be blamed. There were 273 train derailments in India since 2008, 28 of which took place last year, according to official figures. A step towards railway safety: Anil Kakodkar committee recommendations on railway safety would be appropriate at this backdrop . The three vital functions of rule making, operations and the regulation are all vested in the Railway Board. There is need for an independent mechanism for safety regulation. Creation of a statutory Railway Safety Authority with enough powers to have a safety oversight on the operational mode of Railways would do the need. The Research Design and Standards Organization (RDSO), the apex technical wing of the Railways, is highly constrained. This has hampered the ability of the system to internalize emerging technologies. Restructuring of RDSO for greater empowerment is the need of the hour. The adoption of an Advanced Signalling System (akin to the European Train Control System) for the entire trunk route length of 19,000 km within 5 years. All Level Crossings (both manned and unmanned) should be eliminated over a fixed period of time say five years. Also a switch over from the ICF (Integral Coach Factory) design coaches to the much safer LHB(Linke Hofmann Busch) German design coaches. Connecting the dots: Enumerate the various safety concerns present in Indian railways and suggest measures to overcome the same. Implementation of Anil Kakodkar’s committee recommendations on rail safety act as a game changer w.r.t to railway safety in India. Critically analyse.   Parliament stalemate : An analysis The monsoon session of the 16thLokSabha which started from 21st July is going to end on 13th August 2015. The legislative agenda in this session included 11 legislative bills that had to be taken up for consideration which are currently pending in Parliament and 9 new Bills that were proposed to be introduced and passed. Three Bills were listed for withdrawal. The Parliament which had to discuss on important legislations like GST, Medical Health Care bill etc suffered huge losses with repeated adjournments demanded by the opposition. NDTV claims that a washout of the monsoon session would waste Rs 35 crore of taxpayer money. Times Now claimed the figure to be Rs 260 crore. Why the present stalemate? The government has a clear majority in the LokSabha and it lacks in RajyaSabha. There are mainly two reasons for stalemate. The government has stuck up with scandals like the Vyapam scam, Lalitgate etc and the opposition is demanding sacking of the ministers involved. With respect to content of the bills which are proposed to be taken up for consideration during the session like the GST bill , land acquisition amendment bill etc.   Analysis of 15thloksabha: During the 15th LokSabha, frequent disruptions of Parliamentary proceedings had resulted in the LokSabha working for 61% and RajyaSabha for 66% of its scheduled time. In comparison, the 13th and 14th LokSabhas worked for 91% and 87%, The 15th LokSabha passed 179 Bills of the 328 Bills during its five year tenure. This is the least number of Bills passed by a full five year term LokSabha. In comparison, the 13th and 14th LokSabhas had passed 297 and 248 Bills, respectively. Of the 116 Bills, other than finance and appropriation Bills, passed by the 15th LokSabha, a significant percentage of Bills were passed without adequate debate in the House. In the LokSabha, 36% of the total Bills passed were debated for less than thirty minutes. Of these, 20 Bills were passed in less than five minutes. In the RajyaSabha, 38% of the total Bills passed were debated for more than two hours, and 7 Bills were debated for less than five minutes. During the 15th LokSabha, Question Hour was a major casualty to disruptions. Question Hour is the first hour of every Parliamentary sitting, devoted to questions posed by MPs, to be orally answered by Ministers. LokSabha lost 61% of the time scheduled for Question Hour and RajyaSabha lost 59%. In the last five years, only 29 % of total productive time was spent on discussing the Budget , which is an important tool in hands of parliament to make executive financially accountable. A bigger picture: The main reason for such parliamentary stalemate lies in the parliament itself, its composition i.e the MP’s who make up the parliament. In India politics has become a business. People get into politics to protect their business establishment. While doing so they tend to forget the purpose for which they have been elected by the people. Criminalization of politics is a major hindrance in achieving an urbane parliamentary behaviour. In 15thloksabha, around 30% of MPs had criminal charges and around 14% of the MPs had serious criminal charges on them. The current LokSabha has 76 MPs accused of multiple serious crimes with an average of three cases each. Way Forward: Indian parliament is evolving itself over the years. Supreme Court’s decision wrt criminalization of politics is a welcome step in this regard. Common man’s perspective -What best one can do here is to elect deserving candidates to the LokSabha who heeds and provides solution to the problems of a common man. Election commission’s work in preventing election malpractices should be praised and the work should be continued and strengthened further. Connecting the dots: Parliament over the years is losing its role as “guardian of democracy”. Critically analyse. How does the present-stale mate impact the Indian economy and general public in particular? Your thoughts on ‘Criminalization of Politics’. What are the instruments or provisions available in the constitution to ensure smooth functioning of the Parliament? How effective are they? The role of individual MPs (Members of Parliament) has diminished over the years and as a result healthy constructive debates on policy issues are not usually witnessed. How far can this be attributed to the anti-defection law, which was legislated but with a different intention? (2013- GS Paper 2)