Aug 23, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs 23rd Aug, 2017

IASbaba’s Daily Current Affairs – 23rd Aug 2017 Archives NATIONAL  TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States General Studies 1 Social empowerment Salient features of Indian Society, Diversity of India. Triple Talaq declared unconstitutional In news: The discriminatory practice of instant triple talaq was declared unconstitutional by the Supreme Court. Three of the five judges on the Constitution Bench have not accepted the argument that instant talaq, or talaq-e-biddat , is essential to Islam and, therefore, deserves constitutional protection under Article 25. Views: Majority view: It is important to note that the majority decision is only to set aside talaq-i-bidat and not to set it aside as unconstitutional. This is because only Justice Nariman and Justice Lalit — two of the five judges — have held the practice to be arbitrary and therefore violative of Article 14 of the Indian Constitution. The third judge who agrees to set aside the practice seeks to do so on completely different grounds. Justice Joseph holds that after the introduction of Section 2 of the Shariat Application Act, 1937, which made Muslim personal law (shariat) as the “rule of decision” where the parties were Muslims, “no practice against the tenets of Quran are permissible” and talaq-i-bidat, which is not permitted by the Quran is not part of shariat and consequently not applicable to Muslims in India. Thus, while three judges agreed to set-aside the practice of talaq-i-bidat, they have chosen to do so on very different sets of reasons. Justice Joseph straddles both these majorities, siding with two judges on setting aside the practice of talaq-i-bidat while siding with two others in effectively holding that most personal law that applies to Indian Muslims is beyond a constitutional challenge. Minority view: At the same time, the “minority view” of two judges, which includes, notably, Chief Justice of India J.S. Khehar, urged the courts to approach matters of personal law with “absolute restraint”, underlining that these laws have constitutional protection. In effect, no wide, overarching or immutable principle was laid down by the court — it has not held that all personal laws must henceforth meet the constitutionality or fundamental rights or essential practices test. Significance: This verdict comes three decades after a government with a decisive majority in Parliament overturned a progressive court intervention on Muslim personal law in the Shah Bano case. Since that moment in 1986, the demand for reform has only grown louder within the Muslim community, particularly among its women, and it has compelled even the All India Personal Law Board to pay attention, and, in many cases, to bend. But more recently, the coming to power of another government with a large mandate has sparked fears of majoritarianism among the minority. The verdict sent out a clear message that personal law can no longer be privileged over fundamental rights. Way ahead: Parliament, historically, has refrained from legislating on Muslim personal law, in part because it did not want to give the impression of majoritarian intimidation; and it did not feel it was as representative on these matters in relation to Muslims as it did to others. The net result was that personal law remained exempt from the burdens of justification, enforced by an obdurate Muslim Personal Law Board. With the verdict, it will now be possible for our politics to calmly discuss issues of personal law reform and gender justice across all communities, without communalising our politics. The silver lining in this moment is the fact that there is such a strong movement for reform among Muslims. The net effect of the judgment is that while the practice of talaq-i-bidat is gone, any future change in Muslim personal law as it presently applies will have to come from Parliament and not from constitutional challenges. A comprehensive legislation of Muslim personal law — as opposed to a uniform civil code — taking into account the global developments in Muslim personal law and the social realities of Indian Muslims today, after a detailed discussion with all stakeholders is the way forward. That is the space for the Muslim women’s movement to engage with next. Conclusion: The All India Muslim Personal Law Board, and all those who supported its regressive opinion that even an unworthy practice should not be dislodged by judicial verdict, should now accept the verdict in the interests of a modern social order. And there is no reason to contend that their faith has been unduly secularised. For, as Justice Joseph concludes, “what is bad in theology is bad in law as well.”  The cause of gender justice within the framework of personal laws and the Constitution still has a very long way to go. Connecting the dots: In a landmark judgement the Supreme Court declared the practice of Triple Talaq as unconstitutional. Discuss the grounds on which the decision was made and its implications. The Supreme Court judgement declaring triple talaq as unconstitutional is just the beginning. The Parliament now needs to act proactively and bring in a comprehensive legislation for Muslim personal law. Discuss. ECONOMICS TOPIC: General studies 3: Banking & related Issues; Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it Ensuring financial inclusion: Addressing real problems Background: Finance is the glue that holds all pieces of our life together. Financial inclusion is about providing financial tools to people — tools they can afford, are safe and properly regulated, that people can access conveniently from institutions that treat them with respect. These tools enable them to save and to responsibly borrow — allowing them to build their assets and improve their livelihoods. Challenges: In India, financial inclusion received a steroidal boost with Prime Minister’s Jan Dhan Yojana (PMJDY). By 4 January, 2017, there were over 265 million accounts under the scheme. But a disquieting feature is that public banks, regional rural banks (RRBs) and 13 private lenders have reported that as on 24 March 2017, 92,52,609 accounts were frozen under the PMJDY owing to inactivity. A survey of these accounts found that only 33 per cent of all beneficiaries were ready to use their Rupay cards. Lack of literacy: Merely opening physical accounts as flag posts of financial identity won’t help unless they are actively used by people for managing their money. To make this possible people have to be imparted an ability to understand and execute matters of personal finance, including basic numeracy and literacy, budgeting, investing, and risk diversification. Financial literacy is a combination of financial awareness, knowledge, skills, attitude and behaviours necessary to make sound financial decisions and ultimately achieve individual financial well-being. According to a global survey by Standard & Poor’s, less than 25 per cent of adults are financially literate in South Asian countries. For an average Indian, financial literacy is yet to become a priority. India is home to 17.5 per cent of the world’s population but nearly 76 per cent of its adult population does not understand even the basic financial concepts. On account of lack of proper awareness and failure of institutions to properly guide them, people buy insurance policies without proper planning and give up midway because they don’t have money to pay the premium. Aggressive selling prevents the agents from properly assessing the consistency n income streams of the buyers for servicing their policies. The customers end up losing heavily as penalties are very harsh. Challenges in going digital: Today, digital technology and mobile phones offer an unprecedented opportunity to connect poor people to services such as savings, loans, insurance and payments. But owning a phone or even opening a digital account does not ensure the account is used. Two-thirds of world’s 299 million mobile money accounts are dormant. India remains among the most cash-intensive economies in the world, with a cash-to-GDP ratio of 12 per cent. Around 97 per cent of all transactions in the country are carried out in cash, which explains why India remains among nations with the lowest access to digital payments. In a digital world, safety and security is important for everyone. Remaining safe is an individual’s own responsibility which has to be taken seriously. Payment providers can put in the most fool proof systems in the world but the human element of payments and hence actions resulting in fraud cannot be emphasised enough. Whether it is reducing risk, improving uptake and usage, enhancing consumer protection or avoiding over-indebtedness. Way ahead: Remodeling financial education programmes: Financial education programmes focused on just imparting knowledge rarely deliver unless they are backed by a suitable product, including the support to use the product. A recent UNDP survey on financial literacy programmes in India revealed that in areas where a service provider was involved in the programmes, the participants had better understanding of products and they had been using the products regularly. Some banks use a decision tree to help customers open the saving accounts that match their needs. The process of going through the decision tree in itself leads to understanding of improved product features by customers. Similarly, in one model, a bank undertook a project to deliver financial education training to young women in rural communities through a cascade training model where core trainers trained peer educators, who in turn trained community members. These examples provide evidence that using a model that involves experiential learning and use of products has greater chances of success. Customised products: To use financial services to their full potential, the low-income people need products well suited to their needs and appropriate training and education for adapting to these financial services. Bringing this about requires attention to human and institutional issues, such as quality of access, affordability of products, familiarity and comfort in use, sustainability for the provider of these services, proper training and outreach to the most excluded populations. Conclusion: Financial inclusion is thus much more than just opening of bank accounts. We need to address real pains like lack of financial literacy and of financial products well suited to needs of the poor. Only then we will be able to create a financial inclusive society. Connecting the dots: Financial inclusion is about providing financial tools to people — tools they can afford, are safe and properly regulated, that people can access conveniently from institutions that treat them with respect. Though PMJDY is a major step but financial inclusion is still elusive for Indian society. Discuss. MUST READ Shaping wilderness The Hindu The Doklam miscalculation Indian Express Fixing the trade deficit with China won't be easy Livemint Creating well paid jobs for Indians Livemint Gorakhpur and after Business Line

Aug 23, 2017 Daily Prelims CA Quiz

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 29]

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 29] Archives Q.1) Consider the following statements concerning Polymetallic Nodules (PMN) They are called as manganese nodules It contains nickel, cobalt and copper India has contract for exploration of PMN in Central Indian Ocean Basin with the International Seabed Authority (ISA) Which of the following statements is/are correct? Only 3 1 and 3 2 and 3 All of the above Q.2) Which of the following countries are landlocked by a single country? Lesotho San Marino Liechtenstein Select the correct code: 1 and 2 2 and 3 1 and 3 Only 1 Q.3) Consider the following statements about Long Term Irrigation Fund (LTIF) The funds will be raised by Small Industries Development Bank of India (SIDBI) through issuance of bonds These funds will be for the implementation of Accelerated Irrigation Benefits Programme (AIBP) only Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.4) Consider the following statements Amazon tropical rainforests are known as Selvas The majority of the Amazon rainforest is contained within Brazil Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.5) Which of the following statements is/are correct? Supreme Court held the practice of triple talaq unconstitutional. In case of talaq-e-bidat, even if the man realizes that he has made a mistake, the divorce cannot be revoked Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 To Download the Solution - Click here All The Best  IASbaba

Aug 22, 2017 AIR

All India Radio (AIR): Defence Acquisition Council Finalises Strategic Partnership Model

Defence Acquisition Council Finalises Strategic Partnership Model ARCHIVES Search 21st May 2017 http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General Studies 3 Indigenization of technology and developing new technology. In news: The Defence Acquisition Council (DAC), Ministry of Defence finalised the broad contours of a long-term strategic partnership with the Indian private sector in defence manufacturing. The policy will be implemented in a few select segments, initially the fighter aircraft, submarines, armoured vehicles and helicopters and others will be taken up later. In this model, the foreign companies will be allowed in India to have an Indian partner and make defence equipment in India, – like helicopters, fighter planes, submarines, armoured vehicles, tanks etc. The DAC is the top decision-making body on defence procurement, chaired by Defence Minister. Reason The policy aims to develop Indian defence-industrial ecosystem through involvement of both major Indian corporates and the micro, small and medium enterprises sector. The policy will provide a mechanism for a long-term strategic partnership with industry majors through a competitive process. Here the industry partners will tie up with global manufacturers to seek technology transfers and manufacturing knowhow to set up domestic manufacturing infrastructure and supply chains. The strategic partnership model is based on Dhirendra Singh Committee which suggested finding strategic partners for high-end defence production. As per the committee report, the defence manufacturing sector has been categorised into two groups. In every sector, there should be certain strategic sectors to be identified. It includes segments of aircraft, helicopters, aero engines, submarines, warships, guns, including artillery guns, armoured vehicles that include tanks. It was suggested that only one partner should be finalised in each segment in this group. In the second group, identify Indian companies, maximum two in each segment, who can undertake projects in those segments.it includes partners involved in metallic material and alloys, non-metallic material, including composites and polymers, and ammunition including smart ammunition Thus, MoD will identify certain Indian partners as strategic companies and also identify certain equipment platform to be built in India. These companies then would become the chosen production partners in India. SP Model The strategic partnership model shall identify few Indian private companies as Strategic Partners who would initially tie up with a few shortlisted foreign Original Equipment Manufacturers (OEMs) to manufacture defence equipment. As an idea, it is a good beginning. Anything which kickstarts production in India and encourages manufacturing industries is welcome. If the idea is to buy from the foreign companies even under this model, there is a need to tie up with Indian companies and make products in India. It looks more like buy and make Indian. But there shouldn’t be any micromanagement by MoD else it will disrupt the process. The selection SPs and their foreign OEM partners would be based on a competitive process to be undertaken simultaneously. Parallel to the shortlisting of OEMs, the MoD would also identify a list of Indian companies in each segment based on certain technical, financial and infrastructure-related parameters. One thing to be noted is that existing Strategic Partners would not be the automatic choice for future contracts. Advantage Indian companies will be a majority stakeholder in such partnership. There is a possibility of export of equipment to friendly countries. The policy will give a boost to the 'Make in India' initiative in the defence sector and set Indian industry on the path to acquire cutting-edge capabilities. Another possibility is that MoD may not have any holding rights over the equipment or IPR rights. However, no critical technology will be shared under this model. Concerns The past is not strong as earlier, the ‘Make’ and ‘Buy and Make (Indian)’ procedures, have failed to yield the desired results due to lack of institutional capacity and ability to guide the new process to its logical conclusion. Also, lack of reforms in the structures and decision-making processes create roadblocks for paths leading to fulfilment of goal. Defence Procurement Policy In DPP, there was a provision of buying from foreign companies, lot of equipment were license produced in India. There was a need of creating composite defence procurement organisation which would streamline mega arms acquisitions as well as leverage them to build a robust defence industrial base (DIB) in the country. Defence procurement board, defence acquisition council, capital acquisition wing, etc. everything are interrelated. There is a talk of separate wing in defence ministry- the defence acquisition wing which will amalgamate the purchase, offset, bringing in more technology, getting into R&D. If strategic partnership model is adopted by MoD, it will be handled by same organisation. A defence procurement procedure was introduced in 2006. Its been 10 years and not a single contract has been singed. It was an idea which encouraged the Indian industry to take up design and development of prototypes of futuristic equipment. These things should not be repeated now. Conclusion The foreign companies are not expected to transfer the state of the art technology. There will be current technology transfer. India can buy from the companies making things here but there should be a condition that after this process, there should be rights of upgrade with the Indian companies. The foreign companies can then tie up with other Indian companies through separate JVs. Hence this is a win win situation for both as they get to establish long term relationship. However, not much should be expected to be done in an instant. Once the draft is made, it will go to finance ministry, then cabinet committee on security and then final policy decision will be taken. This process will itself take few years and then the manufacturing will be carried out. Hence, the deliveries of the essential defence equipment shouldn’t be expected sooner than 5-6 years. Connecting the dots: Highlight India’s defence procurement policy 2016 in view of India being one of the largest importers of defence equipment in world. What is strategic Partnership model? Explain its impact on India’s defence manufacturing capability and economy.

Aug 22, 2017 RSTV Video

RSTV- The Big Picture : Can Compensating Loss-Making Routes Change Railways Fortunes?

Can Compensating Loss-Making Routes Change Railways Fortunes? Archives TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes In news: PMO recently directed the Union Ministry of Finance to fund the losses incurred by the Ministry of railways for operating non-profitable trains on strategic line and backward area rail routes. The directive ends a tussle that began after the merger of railway and general budget when union finance ministry discontinued the practice of providing annual subsidy to the railways. Background Every year, the Indian Railways used to get subsidy from the Finance Ministry for losses incurred on railway operations on strategic lines. After the Budget merger, the Finance Ministry had discontinued the practice of providing annual subsidy to the Railways for operating loss-making strategic routes as the Railways was no longer required to pay an annual dividend. Rationale These lines mainly cater to defence movements on border areas and development of social and backward region, hence the Standing Committee on Railways recommended that reimbursement of operational losses on strategic lines and railway lines in hilly, coastal and backward areas should be continued. The compensation helped the Railways in providing relief towards “socially desirable projects” which are usually loss-making projects. Will it benefit railways? When a state electricity board subsidizes consumption of power by farmers, the government is supposed to give that money as a subvention from budget. So in principle, railways should be treated similarly. However, this is not the only area where the railways are subsidizing people which has nothing to do with the commercial viability of railways. The passenger trains are heavily subsidized along with many other quota benefits like ladies, senior citizens, sports, defence etc. Also, the suburban passenger fares in Mumbai are subsidized whose burden is borne by railways. Such kind of subsidies do not encourage profitability or at most viability of running passenger trains. Present railway policy Today, in the system of railways, whatever new line is to be made, it is known that it will be set at losses. The general budget would pay for the capital cost. For the strategic lines, the defence ministry would pay for the capital cost. So the capital costs subsidy was always there. But the reimbursement of operating losses was not there. All over the world, transport profits are driven by freight traffic and the passenger traffic, whether road or railways, India or Europe, are always subsidized.  Now unless there is a freight traffic, and there is need to run the passenger trains on low traffic lines, the railway will make losses. However, unless the railways extend a line to particular area, that area will not develop. Hence the static analysis that traffic is low is not justifiable. Once the lines are established, there is scope for new communication and transportation channels. New industries and migration of people can happen. Thus, a dynamic approach is required while determining the viability of establishing new lines. Way forward There is a need of robust regulator otherwise rail policies will always remain an announcement. Railways will give some calculation about losses incurred on certain tracks and there will be a tendency to inflate it. It may also happen that the authority sanctioning subsidy may question railways’ efficiency and decline to provide for subsidies. Thus a subjective element will always persist while undertaking the accounting as well as other railways related decisions. Hence, an independent regulator will fill in the gap. A holistic approach is needed and not a piece meal approach always undertaken. If the government makes some decisions, before implementing it, all the known and related issues should be sorted out. For example, once the government had decided that there would be no two budgets, the compensation topic should have been resolved before rather than waiting for it to be challenged and then sort it. Before the merger, there was a populist approach to announce uneconomic lines. But now, decisions should be made in interest of passengers, freight customers as well as railways. Railways is a monopoly unlike airways. So there is only scope of reform in it. There have been various committees that have made various recommendations. These recommendations can be implemented considering their long term merit and viability and short term required changes. Post-independence, railways has become purely a central subject. Hence it doesn’t allow the states to identify their own needs and fix relative prices for the rail services provided. A serious lookin is required to consider shifting railways to concurrent list. Pre independence, this freedom was there with the state government and also power to fix the fares for whatever line they fixed. Cooperative federalism in railways should be encouraged with states having more independence to manage rail affairs. Currently, the railways is not working at its full potential and lot of resources are being wasted. Unless the railways provide confidence to the passenger and freight customer that railways will provide transportation to their choice and will be charged accordingly, railways do not see a bright future. India is a highly mobile country. People travel daily for work and vacation. But putting too much emphasis on its social obligation, not enough finances remain for assuring infrastructure for passengers’ security or new capacity building. Proper commercial accounting methods and change in business rules if need be, should be done to let the railways survive as country’s lifeline. Connecting the dots: ‘Railways have a social obligation to fulfill even it is non-viable’. Do you agree with the statement? Analyse How can Indian railways can become the keystone of India’s multimodal network? Explain in detail.  

Aug 22, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs 22nd Aug, 2017

IASbaba’s Daily Current Affairs – 22nd Aug 2017 Archives INTERNATIONAL  TOPIC: General Studies 2: India and its International relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora. Rebooting India-Nepal Relations Background: With global geopolitics on the boil, and the Hindi-Chini relationship in free fall, it should be in India’s interest to secure its own neighbourhood, and that can only be through letting national politics and governance of the smaller neighbours evolve without interference. India-Nepal relationship in past decade: India played a valued role in ending the Maoist insurgency in 2006. The period thereafter was marked by escalating micro-meddling in Nepal’s internal affairs. The presence of India’s heavy hand contributed in numerous ways to the distortion of consensual governance needed in transitional times. India ‘noted’ rather than welcomed the Constitution. A society trying to emerge from the April 2015 Great Earthquake was slapped with the punitive Great Blockade. New Delhi's heavy-handedness: While keeping silent for years on Nepal’s post-conflict transitional justice process, in November 2015 India’s representative in Geneva cynically utilised the forum of the Human Rights Council to influence government change in Kathmandu. Motives behind heavy-handedness: At the tactical level, New Delhi’s motives behind the heavy-handedness of the recent past may have to do with electoral calculations related to the Bihar and Uttar Pradesh polls. On the Constitution, the idea of a ‘buffer’ province is thought to have been floated either to prevent third country militant infiltration or to control national-level politics in Kathmandu. Some point to an agenda to try to take Nepal back to ‘Hindu state’ constitutional status. For the long term, Indian strategists may be seeking ways to get Kathmandu to allow the construction of high dams and deep reservoirs on Nepal’s rivers — for flood control, navigation, urban use and irrigation in Bihar and Uttar Pradesh. A particular federal demarcation might make Kathmandu more amenable. Backfiring: The Great Blockade forced the Kathmandu political leadership to reach out to Beijing and sign a slew of trade, transit and infrastructural agreements with it. Few know that Nepal is today better connected by air to Chinese cities than to India. Pending matters: The two nations need to concentrate on the numerous matters that need concentration and resolution. The open border: It is a unique joint heritage of the two countries. While it is Nepal’s Left that has traditionally demanded restrictions on the border, the call now rises from the Indian security establishment. There are border disputes pending between the two countries — at Susta, Kalapani and the ‘tri-junction’ of Lipulekh. Floods: A permanent bilateral mechanism is required to save the plains population of Nepal from suffering. The Kosi Barrage and attendant embankments have the possibility of wreaking havoc because siltation of six decades has raised the riverbed within the levees far above the outlying tracts. Options like high dam in the hills of Nepal or redistribution of waters into various older channels of the Kosi in Bihar must be discussed. Economy: The impact of demonetisation and the application of Goods and Services Tax on Nepal’s economy and citizenry. Similarly, Kathmandu prefers not to discuss the fact that the Nepali rupee is pegged to the Indian rupee and what it means for the long run. Trade: The arbitrary blockages and go-slow at Indian Customs at border points, the selective use of quarantine for the export of Nepali agricultural produce, the increasing high-handedness of the Sashastra Seema Bal (India’s frontier force in this sector) in dealing with Nepalis crossing over — these are only some of the other challenges on the bilateral plane. Rights of migrants: The rights of migrant Indian labour in Nepal and Nepali labour in India is a topic that rarely comes up. Hydropower: Nepal has since long planned to sell electricity to India once it has a hydropower surplus, and the completion of the much-delayed Dhalkebar-Muzaffarpur transmission line was supposed to facilitate that. An Indian government directive that it will not allow import of electricity other than from power companies with more than 51% Indian equity is an issue here. Conclusion: As Nepal is moving towards normalcy under its new Constitution, and with India seemingly changing gears on its Nepal policy, one hopes for a threshold of maturity in relations between South Asia’s oldest nation-state and its largest democracy. New Delhi must use the visit of Nepal’s newly anointed Prime Minister, Sher Bahadur Deuba, as an opportunity to hit the reset button on Nepal-India relations. Indian interventionism having backfired, the Nepal PM’s visit is an opportunity to raise the level of bilateral ties. Connecting the dots: India needs to reboot its relationship with Nepal. There are many issues ranging from open border, hydropower, trade to flood protection that needs serious attention from the leadership of both the nations. Elaborate. NATIONAL/ECONOMY TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Fundamental right to create jobs Background: During his fourth Independence Day address, Prime Minister Narendra Modi asked the youth to generate employment rather than just seek jobs. He listed out several initiatives of his government to facilitate entrepreneurship. These include access to credit, ease of getting clearances, and skill development. Modi also called for a collective resolve to build a “New India” by 2022. A secure, prosperous and strong nation cannot be built without providing every able-bodied individual an opportunity to create jobs. Limited impact of government initiatives: It appears that government initiatives on job creation are having limited impact. According to the Centre for Monitoring Indian Economy, 1.5 million jobs were lost during the first four months of 2017. Simultaneously, the number of people declaring themselves unemployed fell by 9.6 million. Seasonal jobs, demonetization, underemployment, reskilling, a reduction in investment, and a shift towards entrepreneurship, are being offered as explanations. If none of these is true, there is a danger of unemployed youth straying towards undesirable activities. Fundamental right to create jobs: A fundamental right to create jobs will aid in unshackling growth in key sectors like agriculture and allied activities, by repeal of restrictive policies and practices. To ensure that jobs are created on a large scale, we need to treat the freedom to create jobs on a par with other freedoms guaranteed under the Constitution. A comprehensive strategy is required: There is a need for an urgent rethink on the strategy for creating job creators, while considering population control measures to regulate job seekers. An incremental siloed approach has been adopted. We have lacked a coherent and comprehensive strategy. There is a need to recognize that all sectors, from commercial sex services to defence manufacturing, have the potential to generate direct and indirect employment. Personal inclination, and not regulatory provisions, must guide professional choices. These will also help in mainstreaming practices considered unlawful. According legal recognition to activities like commercial sex services, betting, and manufacturing medical marijuana (as suggested by Union minister Maneka Gandhi recently) will help in optimal regulation, prevent abuse, and enable access to medical and insurance facilities. This will be no different from the government’s approach to alcohol or tobacco—which are not banned in spite of known adverse impacts, but only regulated, thus letting consumers make the final choice. These avenues also bring in huge revenue which can be used for development projects. Even today, close to half of the working population is engaged in agriculture, including tobacco production. Farmers have the potential to emerge as the largest direct and indirect job creators in the economy. The potential of a rural non-farm economy has also remained untapped in creating job creators. Due to lack of opportunities, the rural population is migrating to urban centres. However, if there is a fundamental right of job creation, then the divergence in delivery and quality of basic education, health and social service between urban and rural residents will be narrowed. What should be done? The Startup India programme is focused on information technology and related sectors, and restricted to urban centres. It should be replicated in rural areas, with a focus on the non-farm sector. If the infrastructure is in place, investments in retail will open opportunities along the agriculture value chain, including processing, packaging, warehousing and transportation. Rural job creators should be involved in these plans. For every smart city, a smart village or cluster will need to be created. Despite the hardships, micro, small and medium enterprises (MSMEs) continue to create more jobs than large enterprises. MSMEs cannot be treated like large enterprises—they bear a disproportionately higher burden of compliance, while having fewer resources at their disposal. Government and financial institutions must realize this and treat them accordingly. A digital economy aimed at curing asymmetry in information, finance and data can help in operationalizing the fundamental right to create jobs. The existing trinity of Jan Dhan accounts, Aadhaar and mobile can act as a stepping stone. Digital tools transmitted through mobile phones can aid in providing information about technology, markets and price. Expanding the direct benefits transfer programme can help in expanding access to finance. Informed consent to share Aadhaar-linked data, with adequate privacy protections, can aid in designing customized policies, products and services that cater to the needs of job creators, creating an ecosystem that stimulates job creation. Conclusion: If Modi expects citizens to create jobs in “New India”, enabling conditions will need to be created. There is no better way to do this than by recognizing that job creators are as important as the creation of jobs. Connecting the dots: The issue of jobless growth in India remains despite various steps taken by the government. A comprehensive strategy is thus required. It's time we recognize that job creators are as important as the creation of jobs. Discuss. MUST READ Between sophistry and silence The Hindu Recasting the steel frame The Hindu Derailed priorities The Hindu Beware the Trump effect Indian Express Doklam foretold Indian Express More than toilets Indian Express Clear the track Indian Express Is the draft national energy policy actionable? Livemint Arvind Subramaniam is wrong Business Line Virtual control Business Line  

Aug 22, 2017 Daily Prelims CA Quiz

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 28]

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 28] Archives Q.1) Consider the following statements about Crime and Criminal Tracking Network & Systems (CCTNS) It is under the Ministry of Electronics and Information Technology It aims at creating a comprehensive and integrated system for enhancing the efficiency and effectiveness of policing through adopting of principle of e-Governance It is implemented by National Crime Records Bureau Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above Q.2) Consider the following statements The Landing Craft Utility (LCU) is a type of boat used by amphibious forces to transport equipment and troops to the shore IN LCU L52 has been indigenously designed and built by Garden Reach Shipbuilders and Engineers Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.3) Consider the following statements about Atal Tinkering Laboratories (ATLs) It is part of Atal Innovation Mission (AIM) Mentor India Campaign will engage leaders who can guide and mentor students at Atal Tinkering Labs ATLs can be established in schools (Grade VI – XII) managed by Government, local body or private trusts/society. Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above Q.4) Consider the following statements An Inner Line Permit is required to visit the Pangong Tso Depsang Plains are located at the Line of Actual Control that separates the Indian- and Chinese-controlled regions. Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.5) ‘Swasth Bachche, Swasth Bharat’ is concerned with which of the following ministries? Ministry of Human Resource Development Ministry of Health and Family Welfare Ministry of Food Processing Industries None of the above To Download the Solution - Click here All The Best  IASbaba

Aug 21, 2017 PIB

IASbaba PIB Weekly: Press Information Bureau - 13th Aug to 19th Aug , 2017

IASbaba PIB Weekly: Press Information Bureau - 13th Aug to 19th Aug , 2017 ARCHIVES GS-2 The Ganga Gram initiative (Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation) Under this, the villages the villages located along the main stem of river Ganga which have historic, cultural, and religious and/or tourist importance, will be developed as model villages by developing sustainable sanitation infrastructure and cleanliness practices The Ganga Gram initiative would help in the river Ganga rejuvenation process by: Making the village open defecation free Abate direct discharge of untreated liquid wastewater from such villages into river Ganga Facilitate adequate infrastructure for crematoria Develop proper solid waste disposal facilities in order to avoid any pollution to river Ganga Promote better sanitation practices in the villages through IEC activities Must Read: Rivers as a living entity: Implications and Challenges Rivers as a Living being Rivers of India Solve: Question   Launch of GeMSamvad: The GeM -Industry forum (Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation) GeM Samvaad - A participative and collaborative approach with the industry for promoting Indian industry and entrepreneurship As part of this initiative GeM & the Indian industry shall work together to: Create GeM related awareness and onboard industry members from across the country. Create a GeM-Industry Forum for collaboration with the Indian Industry for, seeking inputs on the technical specifications of products and SLAs of services to be procured by the Government agencies, improving the quality of products/services procured especially from the MSMEs, organize annual Public Procurement Convention of all stakeholders and set up GeM Resource Centres at CII Regional Offices   MoU between India and Sweden in the field of Intellectual Property (IPRs) (Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests) Both countries can exchange best practices and work together on training programs and technical exchanges to raise awareness on IPRs and better protect intellectual property rights. Will enable India to exchange experiences in the innovation and IP ecosystems that will substantially benefit entrepreneurs, investors and businesses on both sides. The exchange of best practices between the two countries will lead to improved protection and awareness about India's range of Intellectual creations which are as diverse as its-people. It will be a landmark step forward in India's journey towards becoming a major player in global Innovation and will further the objectives of National IPR Policy, 2016. Features Exchange of best practices, experiences and knowledge on IP awareness among the public, businesses and educational institutions of both countries Collaboration in training programmes, exchange of experts, technical exchanges and outreach activities Exchange and dissemination of best practices, experiences and knowledge on IP with the industry, universities, R & D organisations and Small and Medium Enterprises (SMEs) through participation in programs and events in the matter, organized singly or jointly by the Parties Exchange of information and best practices for disposal of applications for patents, trademarks, industrial designs, copyrights and Geographical Indications, as also the protection, enforcement and use of IP rights Cooperation in the development of automation and implementation of modernization projects, new documentation and information systems in IP and procedures for management of IP Cooperation to understand how Traditional Knowledge is protected; and the exchange of best practices, including traditional knowledge related databases and awareness raising of existing IP systems Exchange of information and best practices regarding Intellectual Property law infringements in the digital environment, especially regarding Copyright issues Must Read: India and IPR- what now and what next Solve: Question GS-3 Metro Rail Policy (Topic: Infrastructure: Energy, Ports, Roads, Airports, Railways, etc.) Aim: To enable realization of growing metro rail aspirations of a large number of cities in a responsible manner PPP component mandatory for availing central assistance for new metro projects – Private investment and other innovative forms of financing of metro projects have been made compulsory to meet the huge resource demand for capital intensive high capacity metro projects. A catchment area of five kms on either side of metro stations – to provide necessary last mile connectivity through feeder services, Non-Motorised Transport infrastructure like walking and cycling pathways and introduction of para-transport facilities Mandates Alternate Analysis, requiring evaluation of other modes of mass transit like BRTS (Bus Rapid Transit System), Light Rail Transit, Tramways, Metro Rail and Regional Rail in terms of demand, capacity, cost and ease of implementation Mandatory to set up Urban Metropolitan Transport Authority (UMTA) to prepare Comprehensive Mobility Plans for cities for ensuring complete multi-modal integration for optimal utilization of capacities Mandates Transit Oriented Development (TOD) to promote compact and dense urban development along metro corridors since TOD reduces travel distances besides enabling efficient land use in urban areas States need to adopt innovative mechanisms like Value Capture Financing tools to mobilize resources for financing metro projects by capturing a share of increase in the asset values through ‘Betterment Levy’. States would also be required to enable low cost debt capital through issuance of corporate bonds for metro projects. States can take up metro projects exercising any of the three options for availing central assistance (WITH MANDATORY PRIVATE PARTICIPATION) – PPP with central assistance under the Viability Gap Funding scheme of the Ministry of Finance, Grant by Government of India under which 10% of the project cost will be given as lump sum central assistance 50:50 Equity sharing model between central and state governments The Policy stipulates a shift from the present ‘Financial Internal Rate of Return of 8%’ to ‘Economic Internal Rate of Return of 14%’ for approving metro projects, in line with global practices. FASTags for Electronic Toll Collection (ETC) (Topic: Infrastructure: Energy, Ports, Roads, Airports, Railways, etc.) National Highways Authority of India launched two mobile Apps – MyFASTag and FASTag Partner, to facilitate the availability of FASTags for Electronic Toll Collection. A consumer can purchase or recharge FASTags on this App The App also helps to keep track of transactions and provides for online grievance redressal. Will give the much needed push to the ETC project that aims to make travel more convenient, faster and environment friendly for people   Global Environment Facility (GEF) of the World Bank and India (Topic: Conservation, environmental pollution and degradation, environmental impact assessment) Project: Ecosystems Service Improvement Project Size of Project: USD 24.64 million (will entirely be financed by the World Bank out of its GEF Trust Fund) Project’s duration: 05 years States involved: Chhattisgarh and Madhya Pradesh through Indian Council of Forestry Research & Education under the National Mission for Green India. Objective of the Project: Strengthen the institutional capacity of the Departments of Forestry and Community Organizations to enhance forest ecosystem services and improve the livelihoods of forest dependent communities in Central Indian Highlands. Global Environment Facility (GEF) – Established on the eve of the 1992 Rio Earth Summit to help tackle our planet’s most pressing environmental problems ‘Gaj Yatra’ (Topic: Conservation, environmental pollution and degradation, environmental impact assessment) What: A nationwide campaign to protect elephants on the occasion of World Elephant Day. The campaign is planned to cover 12 elephant range states. To prepare a strategy for a more even distribution of the elephant population in all the states of the country To bring to an end the chapter of man-animal conflict - a war must be waged against poachers and hunters who harm elephants and other wildlife To broad-base the movement for conservation of elephants and to involve people from all walks of life in the conservation of elephants and other wildlife World Elephant Day It is an annual global event celebrated across the world on August 12, dedicated to the preservation and protection of elephants Goal of World Elephant Day - To create awareness about the plight of elephants and to share knowledge and positive solutions for the better care and management of captive and wild elephants. To improve enforcement policies to prevent illegal poaching and trade in ivory To conserve elephant habitats and provide better treatment for captive elephants Reintroduce captive elephants into sanctuaries Statistics: African elephants are listed as “vulnerable” and Asian elephants as “endangered” in the IUCN Red List of threatened species. As per the available population estimates, there are about 400,000 African elephants and 40,000 Asian elephants. World Honey Bee Day (Topic: Conservation, environmental pollution and degradation, environmental impact assessment) Aim: To create awareness about Beekeeping and uses of its products including Honey Importance: Beekeeping has been useful in pollination of crops, thereby, increasing income of the farmers/beekeepers by way of increasing crop yield and providing honey and other beehive products, viz. royal jelly, bee pollen, propolis, bees wax, etc. that serves a source of livelihood for rural poor. Therefore, honeybees/beekeeping has been recognized as one of the important inputs for sustainable development of agriculture/ horticulture. Tribal Cooperative Marketing Development Federation of India Limited (TRIFED) Functions under the administrative control of Ministry of Tribal Affairs Serving the interests of Tribals, who are engaged in collection of NTFP and making of Tribal Art & Handicraft Products for their livelihood so as to ensure better remunerative price for their products as well as for the socio-economic betterment through Self Help Groups, Empanelled NGOs, State level Tribal Development Corporations, Forest Development Corporations for undertaking marketing development of the tribal products. Playing a lead role in protecting, promoting and multiplication of Honey Bees by Scientific, Non-destructive collection practices, thereby increasing the livelihood of tribal people living in various forest areas of the country, contributing to the growth of Honey Bees population and reducing the mortality rate of Honey Bees drastically About 90% of the Scheduled Tribes of the country live in and around forest areas and the forests provide 60% of the food & medicinal needs of tribals and 40% of their income from Minor Forest Produce (MFP) mostly of which come from Honey. Please Note: The New India Movement 2017-2022 envisages an India free of Poverty, Corruption, Terrorism, Communalism, Casteism and Un-cleanliness - Sankalp Se Siddhi (Attainment through Resolve) All 4480 villages on the bank of River Ganga in 52 districts and 5 states (Uttarakhand, Uttar Pradesh, Bihar, Jharkhand & West Bengal) were declared Open Defecation Free (ODF) under Namami Gange initiative. Government has fixed the ceiling prices of orthopaedic implants used in knee surgeries – to prevent Unethical Profiteering and ensure Affordable and Quality Healthcare for the Last Man World Health Organization (WHO) Estimates – By 2020, osteoarthritis is going to be the fourth largest cause of immobility in the world. India has about 1.2 to 1.5 crore orthopaedic patients who require orthopaedic implant surgery, and most of the diagnosed people requiring knee surgery are not able to afford because of very high cost. 2017 - 75th anniversary of Quit India, 100th anniversary of Champaran Satyagraha, 125th anniversary of Ganesh Utsav. Lokmanya Tilak’s call “Swaraj is my birth right” – 2017 marks the 125th Anniversary of the Ganesh Utsav which led to the rise of community awakening through the celebrations. Lal Bahadur Shastri had given the slogan “Jai Jawan Jai Kisan.” The North Koel Reservoir is located in the most backward tribal areas in Palamau and Garhwa districts of Jharkhand The project is situated on North Koel river which is a tributary of Sone river finally joining the river Ganga. The Cabinet approved storage of water in dam restricted at lower level than envisaged earlier to reduce the submergence and to protect Betla National Park and Palamau Tiger Reserve. Navika Sagar Parikrama is a project wherein a team of women officers of the Indian Navy would circumnavigate the globe on an Indian-built sail boat INSV Tarini. This is the first ever Indian circumnavigation of the globe by an all-women crew. The Government of India’s Street Lighting National programme (SLNP) has illuminated 50,000 KM of Indian roads with installation of 30 lakh LED street lights across the country.

Aug 21, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs 21st Aug, 2017

IASbaba’s Daily Current Affairs – 21st Aug 2017 Archives ENVIRONMENT  TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General Studies 3 Conservation, Environmental pollution and degradation, environmental impact assessment. Ecology versus Development In news: Ecological destruction has always been a serious consequence of humankind’s push for development. Needless to say, the ecology versus development conundrum has been hotly debated. In the post-liberalization era, it is said India lost over 14,000 sq km of pristine forest to industrial and infrastructural projects. Some may say it is a small price to pay to be on the right side of development. More often than not, proponents of development want us to believe that the cost-benefit calculation of environmental devastation is reckoned correctly before such a call is made. But this is seldom the case. Rich wildlife diversity: India is uniquely placed in terms of wildlife diversity. It is considered to be a custodian of many species that are either extinct or found only in very low numbers elsewhere. Besides, having successfully implemented initiatives such as Project Tiger — the biggest such when launched in 1973 — India is looked upon as a global leader in conservation. India has one of the highest densities of carnivores — 58 to every sq km. Arbitrary decisions: Arbitrary decisions are being made, mostly under pressure from unscrupulous politicians and greedy industrialists. Those who have been entrusted with the task of guarding our natural heritage have been surrendering themselves to these powers. Any resistance to this rampant destruction of the environment is often stubbed either by withholding information from those fighting for the cause or by feeding them half-baked information. Transformation and erosion: While the 1970s and 1980s saw the enactment of many progressive pieces of legislation such as the Wildlife Protection Act 1972 and the Forest (Conservation) Act 1980, the subsequent decades, particularly the 1990s, were a dampener for conservation efforts in the country. The decade that witnessed a dramatic transformation in India’s political and economic situation, also saw an erosion in political support for the environment. During that period, many sanctuaries were dismembered to make way for industry and infrastructure. During the PV Narasimha Rao regime, the focus was completely on economic liberalisation. The ensuing climate of deregulation saw the loosening of environmental safeguards painstakingly built over the preceding two decades. During this period, laws concerning the environment were either manipulated or bypassed with quiescent, if not active political and bureaucratic support. The Indian Board of Wildlife, which was later rechristened as the NBWL, did not meet even once for eight years, between 1989 and 1997. In 2002, through an order, the Supreme Court ruled that all major projects — industrial or infrastructural — should be placed before the standing committee of the NBWL, before clearance was given. But on the ground, having such a checks and balances mechanism did nothing to improve environmental governance in the country. On the contrary, it became a convenient tool in the hands of politicians and bureaucrats in the ministry of environment and forests to issue environmental clearances with impunity. Whenever they faced a stumbling block, they unabashedly diluted the provisions of the law. Collapsing environmental governance: In India, it is rather rare that an industry or project has been turned down for possible environmental impact. The environment ministry turned down none of the 1,086 industrial and thermal power projects submitted between 2006 and 2008.  The MoEF has shed its fig leaf of a protection agenda, and positioned itself as a ministry tasked with the Government’s mission of ‘ease of doing business’, and in a series of measures diluted and dissolved regulatory regimes. Case Study: The 3,000 MW Dibang multipurpose project in Arunachal Pradesh. The dam, which is twice the size of the controversial Sardar Sarovar dam on the Narmada river, was denied forest clearance twice in 2013. But a year later, it received the green signal not because the project was modified consequently but because the constitution of the Forest Advisory Committee was tweaked suitably. Negligent EIA: Monumental decisions which lay to waste our natural heritage, and destroys lives and livelihoods, are based on shoddy Environmental Impact Assessments (EIAs). Case Study: The EIA of the much-talked about Ken-Betwa river linking project is a case in point. It is factually inaccurate, inept, mala fide and misleading. The dam of the Ken-Betwa link, powerhouse and a large part of the reservoir will submerge nearly 90 sq km of the Panna National Park, an important tiger reserve. Out of this, over 58 sq km is in the core critical tiger habitat, deemed inviolate and sacrosanct according to the wildlife protection laws in the country. The initial EIA said 32,900 trees would go, and when independent experts pointed out the incongruity, the number was revised to a shocking 13.96 lakh, of which over 11 lakh are within the national park. Conclusion: Thus, in the discourse of development and ecology, it can be said that its development which is being focused upon. The government needs to create a synergy between the two and adopt a balance approach. Steps like revamping process of EIA, strengthening environmental regulatory authorities etc. Should be taken on urgent basis. Connecting the dots: Ecological destruction has always been a serious consequence of humankind’s push for development. While, proponents of development want us to believe that any development initiative is taken only after ensuring environment is protected, this is seldom the case. Discuss. NATIONAL TOPIC: General Studies 1 Social empowerment General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes Invisible Expansion of Unfreedom Background: As India completes 70 years of its existence as a free nation-state, two contradictory tendencies mark its collective existence. One is the ambition to make India a global power. This search for power is based on a perception of national greatness as a society, as a culture, and increasingly, also, as a market. But at the same time, clouds of unfreedom hover over our existence as individuals, as consumers and as groups within the would-be great nation-state. Signs of unfreedom: The case of the cow- Those from the Muslim community who earn their livelihood from the meat trade are targets of suspicion and mob attacks with impunity. We seem to ignore that a sacred animal for one community need not be made forcibly sacred for others too. Forced devotion is not freedom. The implicit argument is that being a Hindu majority society, what some Hindus think to be part of Hinduism has to be acceptable as a norm for everyone. We also ignore the fact that trade and livelihood interests of sections of Dalits are also at stake or the fact that the cow might not be a sacred animal for many Dalits and Adivasis — despite their formal adherence to, and inclusion in, the Hindu fold. The case of nationalism- Our newly enforced ideas of patriotism and nationalism imply that it is not enough for a citizen to be a law-abiding person, co-operative and compassionate towards other citizens, ready for occasional service to the collective cause and proud of the national community in an inarticulate and diffuse manner. These are times when people are forced to do what they don't want to when it comes to nationalism. Playing the anthem in cinema halls has become a new test of nationalism; shouting Bharat Mata ki Jai has become a new insurance for personal security from nationalist hoodlums, playing Vande Mataram has become judicially ordained. All this becomes enforceable by private armies of vigilantes. They have all the freedom. Citizens have only duties. The censor board is an important flagbearer of this unfreedom. The argument is that what is not “Indian” culture, should not be allowed on the screen. And this argument believes that sexuality and sensuality are un-Indian. So, no artistic freedom or creative space. Culture trumps freedom. Beyond politically more sensitive and publicised matters, our private persons and public lives and spaces are being gradually subjected to an unwritten censorship. Slowly, the ethic of vegetarianism is being extended to formal and semi-formal occasions. While official patronage to vegetarianism expands, the informal pressure against non-vegetarians is becoming palpable in many residential locations. Instances of powerful communities demanding a ban on the trade of meat for long durations are gaining acceptance. Violent protests have already taken place against women going to pubs. Implicit in such instances are small, disparate cultural norms that are emerging afresh to define what it means to be a good woman. Dress codes are becoming prevalent and glorified. While sexual violence against women is indeed a problem, we are ready with an effective solution — segregation of the two sexes (indeed, in this scheme of things there can only be two sexes), and a strict monitoring of their possible interactions. The Hindu religious motif is so strong in regulating male-female interaction that recently a circular was issued (subsequently withdrawn) by an officer of the government of Daman & Diu ordering all women employees to tie a rakhi to their male colleagues. This diktat ordained a particular relationship between men and women — anything else is not “Indian”. Issues: We do not recognize the expanding realm of fear and unfreedom. Instead of thinking of issues of freedom as a matter of principle, we treat them as matters of prudence. So, we ignore what happens to Muslims, we ignore what happens to Dalits, the worries of film producers and distributors are far from our lives. The freedom of women does not matter to us. We are ready to ignore others’ loss of freedom without realising that the messengers of unfreedom are knocking at our own doors. The other aspect is about agencies of unfreedom. The usual suspects in the business of unfreedom are state and religion. But new social energies are involving themselves with the task of restricting the freedoms of individuals and groups. There is an army of self-appointed vigilantes who would define the limits of our freedom. The state seems happily complicit in allowing them a free run. But more fearsome is the invisible expansion of the realm of unfreedom. Not the state, not religion, nor even the vigilantes. It is simply a cultural norm and the fear of being singled out that reins in freedoms. As a society and as individuals, we are quick to succumb to this fear and to the temptation of being unfree. Connecting the dots: The public needs to take the signs of unfreedom ranging from cow vigilantism, forced nationalism, censorship of movies, enforced rules and dress codes for women etc. Seriously. Discuss. MUST READ Patriot games at Attari-Wagah The Hindu Safeguarding the interests of farmers The Hindu The foreign façade The Hindu Who owns my data? Indian Express Seize the Doklam Indian Express How armed forces can aid defence manufacturing Livemint Finding the right balance on crowdfunding Livemint The Trump conundrum Business Line  

Aug 21, 2017 Daily Prelims CA Quiz

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 27]

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 27] Archives Q.1) Which of the following are types of Value Capture Finance (VCF)? Land Value Tax Betterment levy Fees for changing land use Select the correct code: 1 and 2 2 and 3 1 and 3 All of the above Q.2) Consider the following statements about National Electric Mobility Mission Plan (NEMMP) 2020 It was launched by Ministry of New and Renewable Energy (MNRE) It aims to achieve national fuel security by promoting hybrid and electric vehicles FAME India was launched under NEMMP 2020 Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above Q.3) Rohingyas are Muslim refugees from eastern Sri Lanka settled in Tamil Nadu An anti-communist political group in Syria A political group fighting for autonomy in Catalonia Muslim refugees migrating from Myanmar to India and Bangladesh Q.4) With the 14th Finance Commission allocating Rs 4144.14 crore, the Centre has now asked states to set up a total of 1,800 fast track courts for a period of five years. Fast Track Courts will be dealing with Civil disputes involving land acquisition and property/ rent disputes pending for more than 5 years Civil cases involving senior citizens, women, children, disabled and litigants afflicted with HIV/AIDS and other terminal ailments Both (a) and (b) Neither (a) nor (b) Q.5) The Monroe Doctrine Established American pre-eminence in the Western Hemisphere Indicated the United States’ desire to support revolts against the British government in Canada Called for the United States’ to join democratic movements stirring in Europe None of the above To Download the Solution - Click here All The Best  IASbaba  

Aug 21, 2017 RSTV Video

RSTV- The Big Picture : LPG Subsidy Cut: Do Subsidies Make Economic Sense?

LPG Subsidy Cut: Do Subsidies Make Economic Sense? Archives TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Background Subsidised LPG now costs Rs 477.46 per 14.2-kg cylinder in Delhi. It was priced at Rs 419.18 in June 2016. The rate of non-subsidised LPG, which consumers pay after exhausting their quota of below-market priced bottles, costs Rs 564. Recently, the government decided to hike the LPG price by Rs. 4, implicitly stating that LPG subsidy cannot be continued for perpetuity. If Rs. 4 hike is made every month from 2017 and global crude prices remain constant, the subsidy would be Rs. 10 or down per cylinder. In three years, subsidies have fallen down from Rs. 54000 crore in FY 2014 to Rs. 15000 crore in FY 2017. Efficiency of subsidy Subsidy is an important component in any civilised society. Because citizens are at different levels of well being. Logical case on subsidies can be made on two grounds Private benefit is less than social benefit. The things are subsidised to encourage people to use it. Using LPG has a social benefit as people are moving away from firewood. A case on redistributive grounds. There is a system which is allows certain people to reach a minimum level of dignified living. Using subsidies in such case will promote social growth. Some examples In India, much money is wasted in name of subsidy. It was decided to give food subsidy to those who cannot afford it at market price. But instead it subsidised large scale inefficiency into Food Corporation of India. Pilferage, spoiling of food, excessive labour cost in handling of food was subsidised. Subsidy on irrigation, fertiliser, power for farmers is not showing desired results. All the money is being wasted. If the same amount is being invested in the farm economy, then the farm and economy would gain far more and there would be much better productivity. National Rural Employment Guarantee Scheme though portrayed as employment scheme is actually a subsidy scheme. When there is no work in certain seasons of the year, the people who deserve to have subsidy are asked to turn up for manual work. This kind of subsidy is required as it allows people to lead a dignified life. There has been increase in number of households using LPG to 23 crores. This proves that LPG subsidy has indeed helped the people rise the social status as well as getting better health. Hence, there are two kinds of subsidies-merited and unmerited. Good quality education subsidy is merited subsidy as it meets requirements of large section of population. Subsidies in health care, especially primary healthcare is towards building healthy society. These subsidies cater to long term benefits of society. There are many which can come under unmerited subsidies- Though there has been increased number of LPG users, the LPG gas subsidy has 85% users in urban areas. Of this, majority are middle class and higher class users. Thus, the idea of bringing subsidies in LPG might not be effective in long term. Some of the subsidy is paid to the fertilisers company to enable the small and marginal farmers purchase fertilisers at subsidised rate. However, these are majorly consumed by large farmers having average 5-10 acres of irrigated land. The dry lands of India which accounts for 60% of total land don’t use fertilisers and subsidy. 90% of procurement of such subsidy is from Punjab, Haryana and coastal Andhra and only 10% by rest of India. Electricity to farms is also subsidised. Now, mostly prosperous farmers possess such pumps in their farms who then avail such benefit. And also in most cases, the electricity is not regular, thereby diluting the purpose of providing subsidy for boosting farm economy. This shows the huge cascade of unmerited, unwanted, unknown, unwritten subsidies adding to the burden.  As a reason of this, there is not enough resources to build anything new or invest in new infrastructure or schemes. The problem with demerit subsidies is that not much thought is put to who actually is going to benefit from it. Today, the demerited subsidies are little more than 5% of GDP, which is a huge number. The LPG subsidy Oil subsidies have been target of respective governments for years. Especially the gas subsidy as it forms a part of domestic cooking option. In domestic cooking option between LPG and firewood, LPG is the most desirable option. Firewood is harmful for the health for the family using it. However, with regards to fossil fuels, India has to import 80% of the hydrocarbon demand. Hence, it is not good idea to use an imported item at a subsidised rate for domestic cooking. Instead, there can be a possible cycle such as using domestic coal to generate power, supply the power effectively to all rural areas and urban household, encourage cooking using electricity. Though it is a long term solution, it is possible and beneficial in future.  This will also mean that domestic coal will be optimally utilised without depending absolutely on imported energy. Also, the gas subsidy amounts are matter of friction. Unless there is open competition in the marketing of LPG gas with private players also competing with PSUs, there is not real knowledge of gas prices available. How the depreciation on cylinders is calculated will change the prices of cylinders is not known. Additionally, there is an element of cross subsidy which is charged to commercial LPG consumers. Thus, too many levels of subsidies make it more complicated and inefficient. The real question is should LPG be used as a fuel for this purpose? In cities and town, piped natural gas makes more sense. It doesn’t have subsidy and still the price is low. Also, there should be complete elimination of kerosene for cooking as its primary purpose was only for lighting. Using it for cooking is thorough misallocation of resources and thus shouldn’t be subsidised. For lighting, there should be solar lanterns if unsure that rural areas will not get electric connection soon. Thus there is scope to rationalise subsidies without doing much damage to consumers. Conclusion The way forward lies in efficiently using the government resources, expenditure and effort on purposeful ends. The present problem lies in inefficiency and ineffectiveness of public expenditure. The subsidies given, the tax collected, the way in which public delivery mechanism works as part of it requires thorough analysis. Along with it, there is a need to have a coherence in tasks taken. One year government says in parliament that NREGA is biggest monument to failure in India’s history. Next year, after drought, the government takes credit for increasing outlay in NREGA. Thus, there is no coherence in government’s approach on how and what to spend money on or how and where expenditure can be saved. Thus there requires a holistic assessment of government finances, tax collections. Subsidies can be tackled as part of an overall consolidation and nationalisation of total public finances. Not only subsidies, but also there are exemptions worth rs. 7000 crore which need to be rationalised. This issue shouldn’t be perceived as investment vs. subsidy tussle. That reduction in subsidy will increase investments. Instead, a vision is required to make efficient use of resources with determination of goals and where the money will come from to fulfil them. Connecting the dots: Is a subsidised economy sustainable? Critically analyse Subsidies form a critical part of developing nation. However, they may also strangle growth in long term. Evaluate The habit of subsidies is not beneficial for society as well as economy in long term. Do you agree? substantiate.