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MAY 2020 CURRENT AFFAIRS MAGAZINE

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CONTENTS

GS 1 : Heritage and culture ,Geography of the World and Society 1. Kheer Bhawani Mela gets cancelled amidst COVID-19 pandemic 2. ‘Heatwave to severe heatwave’ conditions forecasted in India 3. Katkari tribe generate income through Pradhan Mantri Van Dhan Yojana 4. Karnataka govt. takes efforts to solve mystery over birthplace of Purandara Dasa 5. Monsoon will arrive on June 5, says IMD 6. Hotter oceans spawn super cyclones

GS 2 : Polity, Governance, International Relations

1. J&K and Article 54 2. Permanent Mission to UN 3. Taiwan’s coronavirus protocol shows how it is done 4. Open Budget Survey 2019: IBP

5. Tripura groups oppose settlement of Brus

6. African swine fever: Assam told to go for culling

7.Combating Bioterrorism

8.MPLADS, its suspension, and why it must go

9. Tripura groups oppose settlement of Brus

10. African swine fever: Assam told to go for culling

11.Combating Bioterrorism 12.MPLADS, its suspension, and why it must go 13.Covid-19 in States with High Swine Flu Rates 14.Coronavirus Causes Blood Clots 15. Saras Collection on Government e-Marketplace 16.Opportunity to strengthen the 73rd and 74th amendment 17. Resuscitating multilateralism with India’s help

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18.Epidemic Disease Act, 1897 19.Development of the Nanomaterials Based Supercapacitors 20. Virus attack worse than Pearl Harbor 21.Green tribunal directs LG Polymers to deposit 50 cr.

22. How different is the PM CARES Fund from the PM’s National Relief Fund?

23.The trends shaping the postCOVID19 world

24.The epidemic and ensuring safety in courts

25.Face-off Between India and China

26. Relaxation in labour laws due to COVID-19 outbreak and their impacts

27. Equal freedom and forced labour

28. JDY or NREGA card: What is better option for cash transfers?

29. Do numbers matter in Rajya Sabha ?

30. Migrant workers to get free foodgrains

31. Is the suspension of labour laws a silver bullet?

32. NEET is not student-friendly, merit-promoting

33. West Bengal Major Irrigation and Flood Management Project

34. Where is health in the stimulus package? 35.Economic Stimulus-IV 36. Economic Stimulus-V 37. Ashwagandha and Anti-Covid-19 Drug 38. Working safely 39. Keeping the peace

40.Covid-19 Halts Global Vaccination Programme

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41. What explains the India China border flare up? 42.Grand Ethiopian Renaissance Dam on Nile and Various Issues 43. Importance of the Pangong Tso Lake 44. Moving beyond geopolitics 45. Aarogya Setu app is now open source 46. COVID-19 pandemic may create opportunities to deepen India’s engagement with Africa 47. Anchoring ties with Canberra the virtual way

GS 3 : Economy, Science and Technology,Environment

1. GDP growth slows to a 11-year low of 4.2%, Q4 slumps to 3.1% 2. How India can become self reliant 3. The problem with the liquidity push 4.Time to evaluate and merge income support schemes 5.Hardly the 1991 moment for agriculture 6.RBI cuts repo rate again, down to 4% 7. Amphan Cyclone (A double disaster: On a cyclone amid the coronavirus) 8.Grasping the defence self reliance nettle 9.Criteria for ‘medium’ units to be revised 10.Super Cyclone Amphan closer to mainland 11. Objections to Etalin Hydroelectric Project 12. Labour rights are in free fall 13. Economic Stimulus-III 14. New law for contract farming 15. Stop the return to laissez faire 16.“Tour of Duty (ToD) Scheme” for Short Service in Indian Army 17. Riding roughshod over State governments 18. PM announces 20 lakh crore economic stimulus package 19. Andhra Pradesh to send back 13,000 tonne styrene to South Korea 20 . RBI’s Gold Reserve Increased 21. Economy and the challenges ahead 22. Vizag gas leak claims 11 lives; over 350 hospitalised 23. India needs to enact a COVID-19 law

24. Is the perpetual bond a suitable option to raise money?

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25. The evergreen debate of Food versus Fuel 26. What makes MSMEs, most vulnerable to Covid-19 disruptions? 27. Pathways to a more resilient economy 28.Manufacturing Hits Record Low 29. Environmental regulations: go or no go? 30. How Remdesivir tricks coronavirus? 31. Why liquor sale matters to states? 32. A grain stockist with a role still relevant 33.Drop in FPI Outflows 34. RBI Cancels Licence of CKP Co-op Bank 35. Economic recovery may take over a year, says CII 36. Global Energy Review 2020 37.Can antibody tests help tackle COVID-19? 38. National Infrastructure Pipeline (NIP) 39.Demo-2 Mission 40.China to Launch Official Digital Currency 41.WHO raises concern over use of BCG vaccine 42. It’s about food, nutrition and livelihood security 43.Core Sector Shrinks by 6.5% 44 .Plasma therapy is no silver bullet 45.Rethinking the role of Intellectual Property in Corona crisis 46.Global Energy Review 2020 : IEA

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GS 1 : Heritage and culture ,Geography of the World and Society

1. Kheer Bhawani Mela gets cancelled amidst COVID-19 pandemic

In News:

• The Annual Kheer Bhawani Mela was cancelled recently because of COVID-19 pandemic in the Union Territory of Jammu and Kashmir.

Kheer Bhawani Mela

• It is an Annual Festival celebrated by Kashmiri Pandits. • The devotees of the Goddess Mata Kheer Bhawani fast and gather here on the day of “Zeshta Ashtami,” the eighth day of the full moon in the month of May/June. • According to belief, the Goddess changes the colour of the spring’s waters during this month. • Ragyna Devi Temple in Tulmulla Ganderbal village, near Srinagar (J&K) is popularly known as “Mata Kheer Bhawani temple”. • The temple is dedicated to the Goddess kheer Bhawani. • The term kheer refers to rice pudding that is offered in the spring located in the temple to Please the Goddess. • This is the most important temple for Kashmiri Pandits.

2. ‘Heatwave to severe heatwave’ conditions forecasted in India

In News:

• Recently, the India Meteorological Department (IMD) forecasted the heatwave to severe heatwave conditions over northwest, central and adjoining peninsular India. • Increase in temperatures was observed in parts of Andhra Pradesh, Odisha and Maharashtra as well, triggering heatwave conditions • The heat wave was due to dry northwesterly winds present over northwest and central India.

Heat wave

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• It is a period of abnormally high temperatures, more than the normal maximum temperature that occurs during the summer season in the North-Western and South Central parts of India. • Heat waves typically occur between March and June. • Heat wave is declared under these circumstances: o An increase of 5°C to 6°C when the normal maximum temperature is less than or equal to 40°C. o An increase of 7°C or more from the normal temperature is considered as severe heat wave condition. o An increase of 4°C to 5°C when the normal maximum temperature of a station is more than 40°C. o An increase of 6°C or more is considered as severe heat wave condition.

If the actual maximum temperature remains 45°C or more irrespective of normal maximum temperature.

3. Katkari tribe generate income through Pradhan Mantri Van Dhan Yojana

In News:

• Katkari tribal youth from Shahpur in Maharashtra were in news recently for selling Giloy and other products online during lockdown. • They received help under the Pradhan Mantri Van Dhan Yojana (PMVDY). • Giloy is an Ayurvedic herb that has been used and advocated in Indian medicine for ages.

Katkari tribe

• The Katkari are an Indian Tribe mostly belonging to the state of Maharashtra. • Katkari is one of the 75 Particularly Vulnerable Tribal Groups (PVTGs). • The Madia Gond and the Kolam are other tribal groups included in this group. • Their vulnerability derives from their history as a nomadic, forest- dwelling people. • They were listed by the British Raj under the Criminal Tribes Act of 1871. • They are subjected to the stigma even to this day. • Presently, the Katkari are a fragmented and very scattered community.

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• They are highly dependent on others for their livelihoods. • Most Katkari are landless workers.

The Pradhan Mantri Van Dhan Yojana (PMVDY)

• It was launched in 2018.

• The scheme is run by the Tribal Cooperative Marketing Development Federation of India (TRIFED). • It is an initiative targeting livelihood generation for tribals by harnessing the wealth of forest i.e. Van Dhan. • The programme aims to tap into traditional knowledge & skill sets of tribals by adding technology & IT to upgrade it at each stage. • The initiative shall provide enhanced livelihood to about 45 lakhs tribal gatherers in one year. • Tribal community owned Minor Forest Produce (MFP)-centric multi- purpose Van Dhan Vikas Kendras (the Kendra) are set up. • Essential Features of the PMVDY: o The State Nodal Department will have the flexibility to appoint any State Implementing Agency / District Implementing Unit for implementation of the PMVDY in the State and District levels. o The Kendras would act as common facility centres for procurement cum value addition to locally available MFPs. o A typical Van Dhan Vikas Kendra shall constitute of 15 tribal Van Dhan Self Help Groups (SHG)

4. Karnataka govt. takes efforts to solve mystery over birthplace of Purandara Dasa 1) Context: To explore definitive archaeological evidences that may put an end to speculations regarding the birthplace of Purandara Dasa, the Department of Archaeology, Heritage and Museums will soon commence field research work at Keshavapura of Tirthahalli taluk in Karnataka. Purandara Dasa:

• Purandara Dasa (1484–1564) was a Haridasa, great devotee of Lord Krishna. • He was a disciple of the celebrated Madhwa philosopher-saint Vyasatirtha, and a contemporary of yet another great Haridasa, Kanakadasa.

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• Purandaradasa was the pioneer who blended the rich musical streams, namely the Dravidian and Aryan music, into a single stream known as Carnatic music. • Purandara Dasa is hailed as the father figure ‘Pitamaha’ of Carnatic music. • ‘Purandara Vithala’ was the pen name of his compositions. Issue:

• It was widely believed that the mystic poet was born in Purandharagad, Maharashtra. However, many in Malnad claimed that he hailed from this region. • According to historians, Araga in Malnad was a buzzing commercial centre during the Vijayanagar rule, the period to which the poet belonged. • Referring to the names of the places in the vicinity of Keshavapura — Varthepura, Vithalanagundi, Dasanagadde, it was argued that these places were inhabited by merchant community influenced by the Vaishnava tradition to which Purandara Dasa belonged. • Prior to his initiation to Haridasa tradition, Purandara Dasa was a rich merchant and was called as Srinivasa Nayaka. • Referring to this, the proponents of the theory that Puranadara Dasa was born in Malnad point out that the ‘Nayaka’ title was attributed to locally influential people, including wealthy merchants in Malnad during the Vijayanagar rule. Conclusion:

• To solve the mystery regarding the birthplace, the Karnataka State Government had directed the Kannada University, Hampi, to form an expert committee. • After visiting Keshavapura and surrounding places, the committee members said there was enough evidence to come to the conclusion that the devotional poet was born here. • The committee had recommended that further research be conducted on the issue.

5. Monsoon will arrive on June 5, says IMD

Context:

• India Meteorological Department’s (IMD) forecast on the arrival of the monsoon.

Details:

IMD forecast:

• The normal date of onset of the monsoon over Kerala is June 1.

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o The monsoon is considered to have arrived over Kerala only if it meets several criteria, the most important being 14 meteorological stations in Kerala and Karnataka receiving a certain minimum amount of rainfall over two consecutive days. • The India Meteorological Department (IMD) has forecast a delay in the arrival of the monsoon this year. The IMD has set a date of June 5.

Factors considered:

Summer temperatures in North India:

• The prevailing summer temperatures in north India is not conducive for monsoon onset. Below-normal summer temperatures in north India and prevailing rainfall from Western Disturbances will delay the monsoon’s further progress to Kerala. The activity of the Western Disturbances has lowered temperatures and isn’t helping the monsoon to establish. o Western Disturbances are rain bearing systems that originate in the Mediterranean regions and bring rain to north India.

Developing cyclone in the Bay of Bengal:

• IMD has also considered the influence of a developing cyclone in the Bay of Bengal.

• The IMD predicts that the storm in the Bay of Bengal is likely to grow into a cyclone and aid the advent of the monsoon into the Andaman & Nicobar Islands. • The developing storm will pull some of the monsoon winds into the Andamans but it will take more time for conditions to develop enough for it to gain strength and move into Kerala. • After the arrival on Andaman & Nicobar Islands, the monsoon typically takes 10- 11 days to reach the Kerala coast.

Skymet’s forecast:

• Skymet, a private forecaster, expects the monsoon to arrive earlier. Skymet has forecast May 28 as the date of arrival of monsoon. • Skymet has argued that the cyclone in the Bay of Bengal will not hamper the routine progress of the monsoons and instead the early onset of monsoon in the A&N Islands will bring the monsoon early over Kerala.

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6. Hotter oceans spawn super cyclones

Why in News The supercyclone ‘Amphan’ is likely to make landfall between the Sagar islands of West Bengal and the Hatiya islands of Bangladesh.

▪ Cyclone Amphan (pronounced as UM-PUN) is a tropical cyclone formed over Bay of Bengal that has turned into a “super cyclonic storm (maximum wind speed is 120 knots)”. ▪ The higher than normal temperatures in the Bay of Bengal (BoB) with the countrywide lockdown due to Covid-19 pandemic have played a role turning a storm into a super cyclone. ▪ Additionally, the super cyclone Amphan is the strongest storm to have formed in the BoB since the super cyclone of 1999 that ravaged Paradip in Odisha. Key Points ▪ ‘Cyclones’ as a Regular Phenomenon

o The cyclones gain their energy from the heat and moisture generated from warm ocean surfaces. o The BoB has higher Sea Surface Temperature (SST) compared to the Arabian Sea. Some of the reasons for higher SST of Bob are:

• Slow Flowing Winds: It keeps temperatures relatively high i.e. around 28 degrees around the year. • Higher Rainfall: It provides required humidity for cyclone formation. • Constant Inflow of Fresh Water: The inflow from the Ganga and Brahmaputra rivers makes it impossible for the warm water to mix with the cooler water below, making it ideal for a cyclonic depression. o On the other hand, the Arabian Sea receives stronger winds that help dissipate the heat, and the lack of constant fresh water supply helps the warm water mix with the cool water, reducing the temperature. o Additionally, the tropical cyclones in these seas are a typical feature of the summer months and play a role in aiding the arrival of the monsoon. ▪ Unusual Higher Temperature in BoB:

o In 2020, the BoB has observed record summer temperatures due to the global warming from fossil fuel emissions that has been heating up oceans.

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• The cyclone Fani in 2019 was also fuelled by high temperatures in the BoB. o For the first two weeks of May, there were maximum surface temperatures of 32- 34°C consecutively. These are record temperatures driven by climate change observed until now. o Such unusual warming around India is no longer restricted to just the BoB but also the Arabian Sea and the Indian Ocean. It makes storm prediction less reliable as well as disrupting monsoon patterns. ▪ Impact of Lockdown:

o Reduced particulate matter emissions during the lockdown resulted in fewer aerosols, such as black carbon, that are known to reflect sunlight and heat away from the surface.

• Every year, the particulate pollution from the Indo-Gangetic plains is transported towards the BoB which influences the formation of clouds over the ocean. o The minimal presence of heat and sunlight reflecting aerosols in BoB resulted in fewer clouds and more heat. Further, it raised the temperature of BoB by 1-3°C higher than normal. Thus, the whole phenomenon has amplified the strength of the cyclone. ▪ Overall Impact:

o The higher temperatures and minimal presence of aerosols helped the cyclone Amphan to intensify itself from a category-1 cyclone to category-5 in 18 hours that is an unusually quick evolution. Cyclones

▪ Cyclones are the formation of a very low-pressure system with very high-speed winds revolving around it. Factors like wind speed, wind direction, temperature and humidity contribute to the development of cyclones. ▪ Before cloud formation, water takes up heat from the atmosphere to change into vapour. When water vapour changes back to liquid form as raindrops, this heat is released to the atmosphere. ▪ The heat released to the atmosphere warms the air around. The air tends to rise and causes a drop in pressure. More air rushes to the centre of the storm. This cycle is repeated. ▪ Hurricanes derive their energy from heated seawater which can be prevented by presence of upper-level-winds that disrupt the storm circulation forcing it to lose its strength.

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GS 2 : Polity, Governance, International Relations

1. J&K and Article 54

Why in News Recently, in a reply to a Right to Information (RTI) query “if the Union Territory of Jammu and Kashmir will be part of the Electoral College for the election of the President of India”, the Election Commission of India (ECI) has asked to refer to Article 54 of the Constitution of India.

Key Points ▪ Article 54 specifically mentions NCT of Delhi and Puducherry as eligible to be part of the Electoral College. There is no word about the newly-formed UT of Jammu & Kashmir (J&K). ▪ Under Article 54, the President is elected by an Electoral College, which consists of the elected members of both Houses of Parliament and the elected members of the Legislative Assemblies of all the States and also of NCT of Delhi and the Union Territory of Puducherry. ▪ Also the J&K Reorganisation Act, which came into existence from August 2019, does not specify anything about whether the legislature of J&K would be able to vote in the election for a President. ▪ Inclusion of new members in the Electoral College in Article 54 would require a Constitutional Amendment to be carried out through two-thirds majority in Parliament and ratification by over 50% of the States.

o Delhi and Puducherry were included as Electoral College members under Article 54 through the 70th Constitution Amendment Act of 1992. o Before that, Article 54 consisted of only the elected Members of Parliament as well as the Legislative Assemblies of the States. ▪ However, according to some experts, Union territory of J&K would be able to participate in the President’s elections even without any Constitutional amendment.

o According to Section 13 of the J&K Reorganisation Act, 2019, the provisions contained in article 239A, which are applicable to “Union territory of Puducherry”, shall also apply to the “Union territory of Jammu & Kashmir”. Election of the President of India

▪ The President is elected indirectly by members of electoral college consisting of:

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o the elected members of both the Houses of Parliament; o the elected members of the legislative assemblies of the states; o the elected members of the legislative assemblies of the Union Territories of Delhi and Puducherry. ▪ The election is held in accordance with the system of proportional representation by means of the single transferable vote. Secret ballot is used in voting.

o In the proportional representation system, each voter will have only one vote but a voter can indicate his preference for as many contesting candidates as he likes in order of his/her preference or choice. ▪ The President’s tenure is for five years and he is eligible for immediate re- election and can serve any number of terms. ▪ There is a uniformity in the scale of representation of different states as well as parity between the states as a whole and the Union at the election of the President. ▪ All doubts and disputes in connection with election are inquired into and decided by the Supreme Court whose decision is final. ▪ If the election of a person as President is declared void by the Supreme Court, acts done by him before the date of such declaration of the Supreme Court are not invalidated and continue to remain in force. ▪ Article 324 of the Constitution provides that the power of superintendence, direction and control of elections to parliament, state legislatures, the office of president of India and the office of vice-president of India shall be vested in the election commission.

2.Permanent Mission to UN Why in News India has appointed T S Tirumurti as its Permanent Representative to the United Nations (UN).

Key Points ▪ Permanent Mission to the United Nations

o It is the diplomatic mission that every member state deputes to the UN. o It is headed by a Permanent Representative who is also referred to as the UN ambassador. o According to Article 1(7) of the Vienna Convention on the Representation of States in their Relations with International Organizations of a Universal Character, 1975 it is a mission of permanent character, representing the State, sent by a State

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member of an international organization to the organization.

• Other important Vienna Conventions are the Vienna Convention on Diplomatic Relations, 1961 and the Vienna Convention on Consular Relations of 1963. o According to the UN General Assembly resolution 257(III) of 3rd December, 1948, permanent missions assist in the realization of the purposes and principles of the UN.

• They keep the necessary liaison between the Member States and the Secretariat in periods between sessions of the different organs of the UN. o UN Permanent Representatives are assigned to the UN headquarters in New York City, and at other offices in Geneva, Vienna and Nairobi as well. ▪ Indian Permanent Mission at the United Nations

o There are currently eight Indians in senior leadership positions at the UN at the levels of Under Secretary General and Assistant Secretary General. o The first Indian delegates at the UN included statesman Arcot Ramasamy Mudaliar and freedom fighters Hansa Mehta, Lakshmi N. Menon and Vijayalakshmi Pandit

• Mehta and Pandit were among the 15 women members of the Indian Constituent Assembly. o India was among the select members of the UN that signed the United Nations Declaration at Washington on 1st January, 1942. o India also participated in the historic UN Conference of International Organization at San Francisco from 25th April to 26th June, 1945. o As a founding member of the United Nations, India strongly supports the purposes and principles of the UN and has made significant contributions to implementing the goals of the Charter, and the evolution of the UN’s specialized programmes and agencies. Arcot Ramasamy Mudaliar (1887-1976)

▪ One of the prominent lawyers of his time and joined the Justice Party in 1917. ▪ Took part in Joint Parliamentary Committee on Constitutional Reforms in India and the Round Table Conferences. ▪ He was India’s delegate to the San Francisco Conference. ▪ In 1946 he was elected the first President of the United Nations’ Economic and Social Council (ECOSOC).

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▪ He also served as the chair of the executive boards of the World Health Organisation (WHO) and United Nations Educational, Scientific and Cultural Organization (UNESCO). Hansa Mehta (1897-1995)

▪ After studying Journalism and Sociology from England, she returned to India and served as the President of the Bhagini Samaj and played a crucial role during the campaign against the Simon Commission. ▪ She was the first woman to be elected to the Bombay Legislative Council in 1931. ▪ She represented India on the Nuclear Sub-Committee on the status of women in 1946. ▪ As the Indian delegate on the UN Human Rights Commission (now known as the UN Human Rights Council) in 1947–48, she was responsible for changing the language Justice Party of the Universal Declaration of Human Rights from “all men are created equal” to “all human beings”, highlighting the need for gender equality. Lakshmi Menon (1899-1994)

▪ She was one of the founder members of the All India Women’s Conference. ▪ She was India’s delegate to the Third Committee in 1948 and argued forcefully in favour of non-discrimination based on sex and “the equal rights of men and women” in the in the Universal Declaration of Human Rights. ▪ In 1949-1950, she headed the UN Section on the Status of Women and Children. Vijaya Lakshmi Pandit (1900-1990)

▪ She led the Indian delegation to the UN (1946-48 and 1952-53). ▪ In 1953, she became the first woman to be elected president of the UN General Assembly. ▪ In 1978, she was appointed the Indian representative to the UN Human Rights Commission.

3. Taiwan’s coronavirus protocol shows how it is done

The editorial talks about Taiwan’s strategy in the containment of the spread of COVID- 19 and its strategic preparedness to the threat of emerging infectious disease.

• Despite its proximity to China, Taiwan ranked 123 among 183 countries in terms of confirmed cases per million people. • This has shown that Taiwan’s aggressive efforts to control the epidemic are working. Background:

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The novel form of pneumonia that first emerged in Wuhan, China, at the end of 2019 and has since been classified as coronavirus disease 2019 (COVID-19) has caused a global pandemic. Threat from infectious diseases:

• The threat of emerging infectious diseases to global health and the economy, trade, and tourism has not subsided. • Among the most salient examples are the Spanish flu of 1918, the Severe Acute Respiratory Syndrome (SARS) outbreak of 2003, and the H1N1 influenza of 2009. • Intermittently, serious regional epidemics, such as the Middle East Respiratory Syndrome (MERS) in 2012, Ebola in West Africa in 2014, and the Zika virus in Central and South America in 2015-16 were also seen. • Pandemics can spread rapidly around the world because of the ease of international transportation. A crisis anywhere readily becomes a problem everywhere. Taiwan’s strategy:

• In the 17 years since it was hit hard by the SARS outbreak, Taiwan has been in a state of constant readiness to the threat of emerging infectious disease. • As a result, when information concerning a novel pneumonia outbreak was first confirmed in December 2019, Taiwan began implementing on board quarantine of direct flights from Wuhan with immediate effect. • Subsequently, Taiwan established a response team for the disease and activated the Central Epidemic Command Center (CECC) as a level 3 government entity, further upgrading it to level 2 and level 1. • The CECC is able to effectively integrate resources from various ministries and invest itself fully in the containment of the epidemic. Harnessing technology:

• Taiwan has implemented dynamic plans concerning border quarantine measures, including on-board quarantine, fever screening, health declarations, and a 14-day home quarantine for passengers arriving from nations it has listed under the Level 3 Warning. • Taiwan has established an electronic system for entry quarantine, which allows passengers with a local mobile phone number to fill in health information using a mobile phone. • A health declaration is issued as a text message. This is connected to the community care support management system, which allows government agencies to provide care services and medical assistance.

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• The travel history of individuals is stored on the National Health Insurance (NHI) card to alert physicians to possible cases and prevent community transmission. For those undergoing home quarantine or isolation, the government is working with telecom operators to allow GPS tracking of their locations. • Quarantine offenders are subject to fines or mandatory placement according to relevant laws and regulations, so as to prevent transmission. Taiwan has increased its laboratory testing capacity, expanded the scope of its surveillance and inspections. Other significant measures:

• Taiwan has banned the export of surgical masks. It has requisitioned masks, and expanded domestic mask production. This has helped it achieve an effective allocation of limited resources and meet health-care, epidemic prevention, household, and industrial needs. • Taiwan has fulfilled its responsibilities as a global citizen and abides by the International Health Regulations 2005 (IHR 2005) in notifying WHO of confirmed COVID-19 cases. • Moreover, Taiwan has communicated with other countries to share information on confirmed cases, travel and contact histories of patients, and border control measures. • Taiwan has uploaded the genetic sequence of COVID-19 to the GISAID Initiative, or the Global Initiative on Sharing All Influenza Data (GISAID). Conclusion:

• Taiwan, though not a member of the World Health Organisation (WHO), cannot stand alone and must be included in the fight against such threats and challenges. • Taiwan has long been excluded from WHO due to political considerations. • Taiwan has worked with global partners to respond to the threat of COVID-19 to ensure that global health is not imperiled by a lack of communication and transparency. • Echoing the mantra of the United Nations’ 2030 Sustainable Development Goals, no one should be left behind. • Global health security requires the efforts of every person to ensure an optimal response to public health threats and challenges. • WHO should not neglect the contributions to the global health security of any nation.

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• Taiwan hopes that after this pandemic abates, WHO will truly understand that infectious diseases know no borders and that no country should be excluded, lest it becomes a major gap in global health security.

4. Open Budget Survey 2019: IBP

Why in News Recently, the International Budget Partnership (IBP) has released an Open Budget Survey (OBS) 2019.

▪ The survey evaluates each country on the basis of the availability of key budget documents of the Central or Federal Government, and assesses whether these are made public, in a timely manner, and provide comprehensive information. Open Budget Survey

▪ The Open Budget Survey is part of the International Budget Partnership's Open Budget Initiative, a global research and advocacy program to promote public access to budget information and the adoption of accountable budget systems. ▪ It is a biennial survey. ▪ The survey covers 117 countries. ▪ It rates the level of budget transparency across countries on a scale of 0-100, based on several normative, internationally comparable indicators. Key Findings ▪ Global Scenario:

o Improvement in Overall Score: OBS 2019 finds a modest global improvement in budget transparency, which is consistent with the overall trend measured by the survey over the past years. o Global Avg. Transparency Score: The global average transparency score has turned out to be 45 out of 100 and thus levels of publicly available budget information remains limited. o Top Scorers: New Zealand tops the chart with a score of 87.

• Further, South Africa (87), Mexico (82) and Brazil (81) are among the top six countries providing extensive information to the public for scrutiny. o Citizens’ Participation: The citizens’ participation in the budget process continued to be at a dismal level and thus average global scores on the OBS participation measure remains 14 out of 100.

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o Publication of Audit and Legislative Reports: Only 30 of the 117 surveyed countries have adequate scores both for audit and for legislative oversight. ▪ Indian Scenario:

o India's Global Ranking: India has been placed at 53rd position among 117 nations in terms of budget transparency and accountability. o Transparency Score: India's Union Budget process has a transparency score of 49 out of 100, which is higher than the global average of 45.

• Some of the other large developing countries, with the exception of China, have got much higher transparency scores compared to India. o Citizens’ Participation: The public participation in its budgets has been flagged as an area of improvement required for India. o Publication of Audit Reports: India performs well in publishing timely and relevant information in the audit reports and in-year reports and has scored well and above many other countries. o Publication of Pre-Budget Statement: The absence of a published Pre-Budget Statement and not bringing out a Mid-Year Review in 2018-19 pulled down the transparency score for the Union Budget of India. Way Forward ▪ While many governments and citizens have embraced the open budgeting agenda, more efforts to translate good intentions into better practice are required. ▪ A global effort of joint, sustained activism is needed to accelerate progress and deliver the promises of open budgeting to all citizens. International Budget Partnership

▪ The International Budget Partnership (IBP) is a collaborative effort of multiple actors – including civil society, state actors, international institutions and the private sector. ▪ IBP was formed in 1997 to promote transparent and inclusive government budget processes as a means to improve governance and service delivery in the developing world. ▪ It intends to bring citizens participation in open, inclusive budgeting processes to shape policies and practices that promote equity and justice on a sustainable basis.

o IBP’s focus on citizens and civil society organizations (CSOs) was driven by the pioneering civil society budget monitoring efforts in a small number of middle- income countries in the early 1990s.

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▪ IBP’s ultimate aim is to ensure that public resources are used more effectively to fight poverty and promote equitable and sustainable development in countries around the world.

5. R&D Statistics and Indicators 2019-20

Why in News According to the Research & Development (R&D) Statistics and Indicators 2019-20 report, India’s gross expenditure in R&D has tripled between 2008 & 2018 and scientific publications have risen placing the country internationally among the top few.

▪ The R&D Statistics and Indicators 2019-20 is based on the national S&T survey 2018 brought out by the National Science and Technology Management Information (NSTMIS). ▪ The report on R&D indicators for the nation is an important document for the

o Evidence-based policymaking and planning in higher education, o R&D activities and support, o Intellectual property, o Industrial competitiveness. Key Findings of the Report ▪ According to the report, R&D is driven mainly by the government sector. ▪ Expenditure on R&D:

o The Gross Expenditure on R&D (GERD) of India nearly tripled between 2007- 08 to 2017-18. o India’s per capita R&D expenditure has also increased by 1.5 times. o Increase in Extramural R&D support by central Science & Technology agencies.

• Women participation in extramural R&D projects has also increased significantly to 24% in 2016-17 from 13% in 2000-01. • These extramural expenditures are the expenditures on R&D that is performed abroad but financed by domestic institutions. o India spent 0.7% of its GDP on R&D in 2017-18, While the same among other developing BRICS countries was Brazil 1.3%, Russian Federation 1.1%, China 2.1% and South Africa 0.8%.

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▪ Researchers and scientific publications:

o The number of researchers per million populations has doubled since 2000. o India occupies 3rd rank in terms of number of Ph.D awarded in Science and Engineering (S&E) after USA and China. o India is placed 3rd among countries in scientific publication as per NSF database. ▪ Patent filing:

o India is ranked at 9th position in terms of Resident Patent Filing activity in the world.

• During 2017-18 out of total patents filed in India, 32% patents were filed by Indian residents. • Patent applications filed in India are dominated by disciplines like Mechanical, Chemical, Computer/Electronics, and Communication. ▪ According to the World Intellectual Property Organisation (WIPO), India’s Patent Office stands at the 7th position among the top 10 Patent Filing Offices in the world. National Science and Technology Management Information

▪ The National Science and Technology Management Information System (NSTMIS) is a division of the Department of Science and Technology (DST). ▪ It has been entrusted with the task of building the information base on a continuous basis on resources devoted to scientific and technological activities for policy planning in the country.

6. Strategy for calibrated opening of economy

India performing better

• While the OECD countries are reeling under the COVID-19 impact, India is clearly ahead of the curve. • This is not merely in terms of the confirmed cases in the country but is also strongly reflected in very low mortality numbers (8.5 deaths per lakh population) compared to other nations (4,040 in the UK and 1,930 in the US). • While the first cases were reported in most hotspot countries and India around the same time (last week of January), today, the outbreak is far more manageable in India than in most other countries. • It was pragmatic for a resource-poor country to be pre-emptive and declare a national lockdown when the total number of cases were still low at 500.

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• The subsequent growth of the pandemic clearly shows a perceptible decline in the number of cases due to the lockdown. • Though stringent, this was much-needed and a timely policy intervention by the government. • It is important, however, to appreciate the high and growing opportunity costs that are involved during a lockdown. • We must brace ourselves for long-term pandemic management (18 to 24 months) with significant economic impact on our lives.

Policy interventions by government and two major concerns

• The immediate costs of the lockdown are borne by the most economically vulnerable people in society. • This perhaps was the rationale behind the first round of economic policy interventions announced by the finance minister within a few days of the lockdown. • They targeted front-loading of cash transfers through PM-Kisan, support to construction workers, self-help groups, food distribution through the public distribution system, among others. • Two major concerns: Beyond welfare concerns, there are significant growth concerns that are mounting with every day of economic inactivity in the country. • Companies are struggling to honour payroll and maintain their workforce against cancelling orders and declining demand for their goods and services. • These in turn will lead to greater delays and defaults in loan repayments, thereby further weakening the fragile banking sector and struggling credit markets.

The RBI’s intervention and increasing damage to the economy

• The Reserve Bank of India stepped in for some timely monetary interventions. • However, the longstanding climate of risk aversion within the banking sector will mean that transmission of these monetary interventions is unlikely to be timely or adequate. • All eyes are set expectantly in one direction. • Historically, when economies are faced with major calamities, governments step in to stabilise the environment and boost confidence within the business community. • We have seen this response from all major economies disrupted by COVID-19 over the last several weeks. • India will not be an exception to this as the government fine-tunes its strategy to support and kickstart our immobilised economy. • The opportunity cost of time, however, is ballooning with each passing day. • Just like the spread of the virus, we are up against the full force and power of compounding. • Mindful policy interventions, when timed well, can cut growing losses and the misfortune of many.

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How the states are performing against Covid-19?

• While we have succeeded in slowing the growth of the virus at the national level, the true gains and pains are at the state and local level. • As the data reveals, currently we have three states that have made remarkable gains and “flattened the curve” of COVID cases. • These are Kerala, Haryana and Tamil Nadu where recoveries are growing and active cases are rapidly declining. • States like Karnataka and Telangana are improving their recovery rates consistently, despite fluctuations. • Every state and local administration has to keep eternal vigil and double down on containment and testing. • They have to aggressively improve their contact tracing efforts with the help of their police who are trained in debriefing, call record mapping and have more manpower than public health departments of local administrations.

What should be the strategy?

• Given the scale and variation in infection control across the country, our national strategy needs to be informed and calibrated. • Currently, there are more than 300 districts in the country which have reported zero COVID-19 cases. • This can be confirmed quickly with some random testing and the lockdown can be lifted effective immediately. • Then there are about 225 districts which have reported less than 10 cases each. • With adequate ring-fencing at the level of the block where these cases are reported, these districts too can afford to lift their lockdowns. • There are, however, approximately 30 districts across the country which have reported large numbers of confirmed cases and are identified as “hotspots”. • The lockdown in these places needs to continue with some relaxations for basic trade and essential services. • Not surprisingly, these “hotspots” are also important economic centres of the country. • The capacity of the local administration to develop and enforce appropriate strategies of containment, contact tracing and testing, should determine their decisions to ring- fence and isolate blocks while allowing other parts of the district/city to resume economic activity.

Way forward

• Given the uncertainty of the virus, we seem prepared for large hospitalisation and care if the need arises. • The efforts now must be to further contain the growth of the infection.

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• Acting against the power of compounding: If the current rate persists, we will reach over lakh cases within three weeks. That is the power of compounding we are against. • Public health support team: Beyond knowledge sharing across states and adopting successful containment strategies from each other, there is a role for the central government in providing “NSG-like” public health support teams to states that need them. • Economic package: On the economy front similarly, the central government’s timely economic package should flatten the curve of exponentially rising opportunity costs across the sectors.

Conclusion Given the relative scale and virulence of the COVID-19 virus in India, the odds seem stacked in favour of a calibrated opening of the economy.

7. No country for migrant workers

Context:

• Issue of migrant workers in other countries. Concerns: Migrant workers:

• In the face of lockdowns in many countries there has been a drastic decline in the wages and employment of migrant workers. This severely impacts the financial position of the migrant workers who live on subsistence wages. • Many of the migrant workers from the south Asian region working in other parts of the world are having limited access to healthcare. There have been reports of increasing infections among the stranded migrants. • Given the uncertainty due to the crisis, the prospects of future employment appear bleak. This might force the migrant workers to undertake reverse migration. Effect on source countries:

• Global remittances are projected to decline sharply by about 20% due to the economic crisis induced by COVID-19. This would badly impact many economies which are largely dependent on remittances to keep up economic growth momentum. • A recent World Bank report notes that the remittances to low- and middle- income countries may fall by 19.7% to $445 billion, representing a loss of a crucial financing lifeline for many vulnerable households.

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• Remittances to Bangladesh and other South Asian nations are forecast to decline by 22% to $109 billion in 2020. The growing pressure on the source countries to evacuate their citizens would pose a challenge. The possibility of permanent reverse migration would necessitate governmental aid and resources for the migrant workers and would also strain the labour market. Way forward:

• As countries respond to the COVID-19 crisis, there is a strong case for supporting the migrant workforce, which is vital to many economies. • The government should support stranded migrants and their access to health, housing, and other social services, and offer incentives to reduce the cost of remittance services.

8. Acute Encephalitis Syndrome (AES)

Context: Acute Encephalitis Syndrome (AES) has fanned fear among the villagers and health officials of Bihar’s Muzaffarpur and neighbouring districts amid the novel coronavirus disease (COVID-19) lockdown.

At least three children have reportedly died of the disease, locally known as chamki bukhar, in 2020.

About AES:

• Acute encephalitis syndrome is a basket term used for referring to hospitals, children with clinical neurological manifestation that includes mental confusion, disorientation, convulsion, delirium, or coma. • Meningitis caused by virus or bacteria, encephalitis (mostly Japanese encephalitis) caused by virus, encephalopathy, cerebral malaria, and scrub typhus caused by bacteria are collectively called acute encephalitis syndrome. • The disease most commonly affects children and young adults and can lead to considerable morbidity and mortality.

Symptoms:

It is characterized as acute-onset of fever and a change in mental status (mental confusion, disorientation, delirium, or coma) and/or new-onset of seizures in a person of any age at any time of the year.

Cause of the disease:

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Acute Encephalitis Syndrome (AES) is considered a very complex disease as it can be caused by various agents including bacteria, fungi, virus and many other agents.

Viruses are the main causative agents in AES cases, although other sources such as bacteria, fungus, parasites, spirochetes, chemicals, toxins and noninfectious agents have also been reported over the past few decades.

Japanese encephalitis virus (JEV) is the major cause of AES in India (ranging from 5%-35%).

Nipah virus, Zika virus are also found as causative agents for AES.

How is it related to litchi fruits? How it affects?

In India, AES outbreaks in north and eastern India have been linked to children eating unripe litchi fruit on empty stomachs.

Unripe fruit contain the toxins hypoglycin A and methylenecyclopropylglycine (MCPG), which cause vomiting if ingested in large quantities. Hypoglycin A is a naturally occurring amino acid found in the unripened litchi that causes severe vomiting (Jamaican vomiting sickness), while MCPG is a poisonous compound found in litchi seeds.

Why it affects undernourished children?

• Blood glucose falls sharply causing severe brain malfunction (encephalopathy), leading to seizures and coma, and death in many cases. • This is because under-nourished children lack sufficient glucose reserve in the form of glycogen and the production of glucose from non-carbohydrate source is blocked midway leading to low blood sugar level. • This causes serious brain function derangement and seizures.

Measures needed:

1. Increase access to safe drinking water and proper sanitation facilities. 2. Improve nutritional status of children at risk of JE/AES. 3. Preparative measures to be in place before the possible outbreaks. 4. Vector control. 5. Better awareness generation among children, parents through Anganwadi workers, ANMs etc.

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9. Tripura groups oppose settlement of Brus

Why in News In the middle of the Covid-19 lockdown, two community-specific groups have renewed their opposition to the permanent settlement of Bru refugees from Mizoram in Tripura.

▪ The two groups namely, Nagarik Suraksha Mancha (mostly representing Bengali people displaced from erstwhile East Pakistan post-partition in 1947) and the Mizo Convention have submitted a memorandum protesting against the proposed settlement of the displaced Brus in Tripura. Background ▪ Bru or Reang is a community indigenous to Northeast India, living mostly in Tripura, Mizoram and Assam. In Tripura, they are recognised as a Particularly Vulnerable Tribal Group. ▪ In Mizoram, they have been targeted by groups that do not consider them indigenous to the state. In 1997, following ethnic clashes, nearly 37,000 Brus fled Mamit, Kolasib and Lunglei districts of Mizoram and were accommodated in relief camps in Tripura. ▪ Since then, 5,000 have returned to Mizoram in eight phases of repatriation, while 32,000 still live in six relief camps in North Tripura.

o In June 2018, community leaders from the Bru camps signed an agreement with the Centre and the two state governments, providing for repatriation in Mizoram. But most camp residents rejected the terms of the agreement. o The camp residents say that the agreement doesn't guarantee their safety in Mizoram. ▪ The Centre, the governments of Mizoram and Tripura and leaders of Bru organisations signed a quadripartite agreement in January (2020) to let the remaining 35,000 refugees who have stayed back to be resettled in Tripura.

o The rehabilitation package offered included financial assistance of ₹4 lakh and land for constructing a house for each family. Particularly Vulnerable Tribal Groups

▪ In India, tribal population makes up for 8.6% of the total population. ▪ Particularly Vulnerable Tribal Groups (PVTGs) are more vulnerable among the tribal groups. ▪ In 1973, the Dhebar Commission created Primitive Tribal Groups (PTGs) as a separate category, who are less developed among the tribal groups. In 2006, the Government of India renamed the PTGs as PVTGs.

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▪ PVTGs have some basic characteristics - they are mostly homogenous, with a small population, relatively physically isolated, absence of written language, relatively simple technology and a slower rate of change etc. ▪ Among the 75 listed PVTG’s the highest number are found in Odisha.

10. African swine fever: Assam told to go for culling

Why in News The Centre has advised the Assam state government to go for culling of pigs affected by the African Swine Fever (ASF).

Key Points ▪ It has been advised to divide the affected areas into zones and go for culling accordingly. ▪ The disease was first reported in November-December, 2019 from the areas of China bordering Arunachal Pradesh. ▪ A few organised piggeries in Assam have been affected and the possible carrier could be humans.

o However, there is no confirmation on humans being the carrier of the virus. ▪ Earlier in April, there were reported deaths of pigs due to the Classical Swine Fever (CSF). ▪ ASF and CSF are different from Swine Flu (H1N1) and do not affect humans. ▪ CSF can be prevented by proper vaccination but there is no vaccination for ASF. Culling of the affected pigs is the only option. African Swine Fever ▪ It is a highly contagious and fatal animal disease that infects and leads to an acute form of hemorrhagic fever in domestic and wild pigs. ▪ It was first detected in Africa in the 1920s. ▪ The mortality is close to 100% and since the fever has no cure, the only way to stop its spread is by culling the animals. ▪ ASF is not a threat to human beings since it only spreads from animals to other animals. ▪ ASF is a disease listed in the World Organisation for Animal Health (OIE) Terrestrial Animal Health Code and thus, reported to the OIE.

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World Organisation for Animal Health

▪ OIE is an intergovernmental organisation responsible for improving animal health worldwide. ▪ In 2018, it had a total of 182 Member Countries. India is one of the member countries. ▪ OIE standards are recognised by the World Trade Organization as reference international sanitary rules. ▪ It is headquartered in Paris, France.

11. Combating Bioterrorism

Why in News The Covid-19 pandemic has exposed the vulnerability of several world powers in the event of use of biological weapons against them by rogue states and terrorist groups.

▪ The United States, Britain and the Soviet Union were involved in developing complex biological weapons programs after World War II and several nations continue to do so currently as well.

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Key Points ▪ Bioterrorism or Biological Attack:

o It is the intentional release of viruses, bacteria, or other germs that can sicken or kill people, livestock or crops. ▪ Biological Weapons:

o They use microorganisms and natural toxins to produce disease in humans, animals, or plants. o Biological weapons can be derived from: bacteria, viruses, rickettsia, biological toxins and fungi. o These agents can be deployed as biological weapons when paired with a delivery system, such as a missile or aerosol device. o Bacillus anthracis, the bacteria that causes anthrax, is one of the most likely agents to be used in a biological attack. o The most destructive bioterrorism scenario is the airborne dispersion of pathogens over a major population region. o Tropical agricultural pathogens or pests can be used as anticrop agents to hamper the food security worldwide. ▪ It is a substantial threat because small amounts of biotic agents can be effortlessly hidden, transported and discharged into vulnerable populations. ▪ It can impact and expose military and civilian susceptibilities to biological weapons and to the complexity of offering ample safeguards. ▪ Bioweapons experts believe that currently bioterrorists probably lack the biotechnological capability to produce-super pathogens or super pests. Covid-19: Bioweapon or Not ▪ Novel-coronavirus is alleged to have originated in bats. ▪ Some intelligence agencies initially proclaimed that coronavirus occurred naturally but later on, they claimed that the pandemic might have begun from the Wuhan lab in China after the researchers were probably able to figure out how bat coronaviruses could mutate to attack humans. ▪ However, there is no proof that the pandemic virus was engineered or manipulated, yet. ▪ In the Indian context, with the existence of hostile neighbours like Pakistan and China, the threat of biological warfare becomes important and cannot be ruled out entirely.

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Combating Bioterrorism ▪ The European Union (EU), Russia and China are finding ways to deter bioterrorism and biowarfare. The aim is to make it harder for terrorists to obtain the resources for designing biological weapons. ▪ These efforts should include:

o Intelligence Sharing & Rapid Detection

• Global intelligence agencies should operate together and share credible intelligence. • Combining human resources, laboratory resources and information supervision in novel, legal and satisfactory ways that allow for timely detection and categorization of hazards. • Rapid detection and surveillance are important for an efficient response to a bioterror strike. o Pathogen Analysis

• Speedy, uniform techniques that allow for the discovery of an extensive range of pathogens used as biological weapons in a measurable fashion. • Pathogens are a usual part of the environment and can complicate detection attempts. o Strengthening the Biological and Toxin Weapons Convention

• The Biological and Toxin Weapons Convention (BTWC) of 1972 prohibits signatory nations to develop, produce, stockpile or otherwise, acquire or retain:

• Microbial or other biological agents or toxins whatever their origin or method of production, of types and in quantities that have no justification for prophylactic, protective or other peaceful purposes. • Weapons, equipment or means of delivery designed to use such agents or toxins for hostile purposes or in armed conflict. • However, there is no exact authentication method that can ensure compliance with the BTWC. Therefore, efforts must be made to strengthen the BTWC so that it helps to uncover and successfully prevent biological weapons programs. • India ratified and pledged to abide by its obligations in 2015. o Biodefense Systems

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• Upgrading and installing biodefense systems in major urban conglomerates to protect against deadly disease outbreaks initiated by bioterrorism.

• During the Cold War, Soviet Union had set up several Biodefense systems across the country. • Developing and stockpiling vaccines and antimicrobial medicines that can be used to defend the people against infections triggered by biological weapons. • Coaching first responders on how to deal with a biological weapons attack. • Refining diagnostic laboratory capability and epidemiological capabilities. Way Forward ▪ The studies conducted to assess the actual efficiency of counter bioterrorism measures are insufficient which needs to be changed. ▪ It becomes important that engaged and methodical efforts in studying the efficiency of counter bioterrorism measures are applied in a meticulous way. ▪ It should be taken into account that the implementation of some specific counter bioterrorism practices can possibly have consequences with respect to human rights, institutional liberties, fundamental democratic values and the Rule of Law.

12.MPLADS, its suspension, and why it must go

Context:

• The central government has suspended the Members of Parliament Local Area Development Scheme (MPLADS) for two years, to use the funds instead, to strengthen the government’s efforts in managing the challenges and the adverse impact of COVID-19 in the country. Background: Members of Parliament Local Area Development Scheme (MPLADS):

• Under the scheme, each Member of Parliament has the choice to suggest to the District Collector for works to the tune of ₹5 crores per annum to be taken up in his/her constituency. • The scheme provides an opportunity for legislators to develop their constituencies. Arguments against the MPLADS scheme:

• The author of the article argues for the permanent abolishing of the MPLADS scheme for the following reasons:

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Principle of separation of powers:

• The scheme violates the cardinal principle of separation of powers, as the MPLADS scheme gives an executive function to the legislators. • Though the principle of separation of powers is not specifically written down in the Constitution, it actually permeates the entire Constitution through several provisions mentioned in the Constitution. Despite the arrangement where the MPs only recommend projects and the implementation is done by the district authorities, more often than not, the district authorities are compelled to toe the line of the local MP. Lax implementation:

• Implementation of the scheme has not been satisfactory. The observations made by the Comptroller and Auditor General (CAG) of India, with respect to the MPLADS scheme, point to several shortcomings and lapses. • Expenditure incurred by the executing agencies has been consistently less than the amount booked. • Despite specific provisions in the scheme envisaging that works under the scheme should be limited to asset creation, 78% of the works recommended were for the improvement of existing assets. • There has been use of lesser quantities of material than specified by contractors resulting in excess payments and sub-standard works. • There is a lack of accountability for the expenditure in terms of the quality and quantities executed against specifications. • Register of assets created, as required under the scheme, has not been maintained. Most MPs use money under MPLADS quite haphazardly, and it is prone to severe leakages. Audit reports point out gross irregularities and infirmities in implementation. Gaps in utilisation:

• There have been wide variations in the utilisation of the MPLADS amount in various constituencies. • A report published in IndiaSpend, based on data provided by the Ministry of Statistics and Programme Implementation, notes that over 50% of the current MPs from Lok Sabha haven’t utilised any amount from the allocated 5 crores annually. • Only 35 MPs of the 15th Lok Sabha utilised the entire amount of MPLADS during this period. • Since the MPLADS began in 1993, 5,000 crore rupees have been lying unspent with various district authorities as of May 15, 2015.

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Thus, a significant portion of the allocated amount is left unspent. Unintended usage of funds:

• There has been widespread talk of money under MPLADS being used to benefit contractors close to the local MPs or being used to appease opinion makers in the constituency. • It has often been pointed out that such contractors are often relatives, close friends, or confidants of the MP, and such contractors and the MP are financially linked with each other. • Reports of underutilisation and misutilisation of MPLADS funds continue to surface at regular intervals. There have been innumerable instances of misuse of the funds to construct many undesirable assets. Constitutionality issue:

• The constitutional validity of MPLADS had been challenged in the Supreme Court of India in 1999, followed by petitions in 2000, 2003, 2004, and 2005. The SC has held the scheme to be constitutional. • Though the Supreme Court of India has held the scheme to be constitutional, the author argues that the SC seems to have overlooked the actual situation prevalent on the field. • Though well-intended, the implementation has been far from satisfactory. This necessitates a relook by the Judiciary.

13.Covid-19 in States with High Swine Flu Rates

Why in News Maharashtra, Gujarat, Rajasthan, Delhi and Tamil Nadu account for about 70% of India’s confirmed Covid-19 cases till now.

▪ Data from the Health Ministry’s National Centre for Disease Control (NCDC), show that these are also the states which consistently accounted for the majority of Swine Flu (H1N1) cases, since 2015. ▪ The NCDC recorded Swine Flu cases this year as well as part of India's Integrated Disease Surveillance Programme.

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Key Points ▪ Data History of Swine Flu

o 2019: Rajasthan, Gujarat, Delhi and Maharashtra accounted for 54%. o 2018: Tamil Nadu, Maharashtra, Rajasthan and Gujarat accounted for 65%. o Uttar Pradesh and Bihar are among India's most populous states and see intense migration to other states for work still they have not been in the top list always. ▪ Parallels between Covid-19 and Swine Flu

o Both are caused due to pathogens that trace their origins to viruses from non- human hosts even though they belong to different families.

• Both respiratory viruses that spread through contact. o Both infiltrate the lungs and cause characteristic pulmonary infections but they have varying lethality.

• Swine flu infections have a higher case fatality rate (deaths per confirmed cases) and can cause significant deaths in children as well as those less than 60. • Covid-19 is relatively more dangerous to those above 60 and almost harmless in children.

• However, due to lack of sufficient research, it cannot be said which age group is safer or not.

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o High number of Covid-19 and Swine Flu cases have been observed in Gujarat and Maharashtra.

• The relative dominance of these diseases can be attributed to the migration for work. ▪ Observations

o February-March are typical months for influenza (viral infection of upper or lower respiratory tract) in India. o Most influenza activity in northern India has been seen during the summer months but in southern and western India, cases occurred mostly during winter months. o According to scientists, due to the novel nature of Covid-19, the possibility of another spike later in the year cannot be ruled out. o For Swine flu, this year there is an exceptional rise in testing and active surveillance across states otherwise only few states have the infrastructure and system to actively report cases.

• Maharashtra and Tamil Nadu have 50 testing laboratories each for Covid-19 many of which are also deployed for Swine flu. Swine Flu

▪ It is caused by the swine flu virus, the H1N1. ▪ It is an infection of the respiratory tract characterized by the usual symptoms of flu like cough, nasal secretions, fever, loss of appetite, fatigue and headache. ▪ It is called swine flu because in the past it was known to occur in people who had been in the vicinity of pigs. ▪ The virus is transmitted by short-distance airborne transmission, particularly in crowded enclosed spaces. Hand contamination and direct contact are other possible sources of transmission.

14.Coronavirus Causes Blood Clots

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Why in News Recently, doctors around the world have noticed a raft of clotting-related disorders in Covid-19 patients, which causes benign skin lesions on the feet (Covid toe) to strokes and blood-vessel blockages.

▪ Thus, Covid-19 is being seen as less of a typical respiratory disease, and more of one that involves dangerous clotting. Key Points ▪ Misconception of Only Lung Damage:

o Initially it was considered that the vast majority of lung damage in Covid-19 patients was due to viral pneumonia. o But the autopsies of the Covid-19 patients shows that clumps of platelets inside blood vessels, or microthrombi, to be the reason for rapid and dramatic deterioration of condition of patients. ▪ Development of Thrombi:

o Usually these blood clots are called thrombi — that form in patients’ arterial catheters and filters used to support failing kidneys. o The clots impede blood flow in the lungs, which develop severe blood-oxygen deficiency, causing difficulty in breathing. ▪ Pulmonary Embolism:

o Studies have found that as many as 30% of severely ill Covid-19 patients suffered a so-called pulmonary embolism — a potentially deadly blockage in one of the arteries of the lungs. o Pulmonary embolism often occurs when bits of blood clots from veins deep in the legs travel to the lungs. o According to a study, the prevalence of pulmonary embolism was 1.3% in critically ill patients without Covid-19. ▪ Detection of Blood Clots:

o The D-dimer blood test is being used around the world to monitor clot formation in patients, including those with Covid-19, and patients are also being dosened with heparin and other anticoagulant medications. ▪ History of Blood Clotting Diseases:

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o The 1918 Spanish flu pandemic, caused by a novel strain of influenza, was also linked to downstream damage from clots that could end lives dramatically. o Viruses including HIV, dengue and Ebola are all known to make blood cells prone to clumping. o The pro-clotting effect may be even more pronounced in patients with the coronavirus. Issues Involved : Blood Clottings with Covid-19 ▪ Lung damage: If untreated, large arterial lung clots can put overwhelming strain on the heart, causing cardiac arrest.

o Even tiny clots in the capillaries of lung tissue may interrupt blood flow, undermining attempts to help oxygenate patients with ventilators. ▪ Vital organ damage: Clots may form in other parts of the body, potentially damaging vital organs including the heart, kidneys, liver, bowel, and other tissues. ▪ Mistaken of Covid-19 recurrence: Covid-19 survivors who have subsequent difficulty breathing, might mistakenly believe it’s a recurrence of coronavirus infection, when it may actually be a reactivation of the whole clotting problem. ▪ Subsequent disease: Pulmonary embolism also causes pulmonary hypertension, another dangerous complication that can cause fatigue and shortness of breath. ▪ Risk: Patients and doctors alike may not be aware of the risks or the potential need for treatment.

15. Saras Collection on Government e-Marketplace

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The Union Ministry for Rural Development and Panchayati Raj and Agriculture and Farmers’ Welfare has launched “The Saras Collection” on the Government e- Marketplace (GeM) portal.

The Saras Collection

• It is a unique initiative by the GeM, Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) and Ministry of Rural Development. • The collection showcases daily utility products made by rural Self-Help Groups (SHGs) and aims to provide SHGs in rural areas with market access to Central and State Government buyers. • The on-boarding of the SHGs has been initially piloted in the states of Bihar, Chhattisgarh, Jharkhand, Karnataka, Kerala, Himachal Pradesh, Maharashtra, Odisha, Rajasthan, Uttar Pradesh and West Bengal. • SHGs from all the states and Union Territories (UTs) will be covered rapidly in the upcoming phases.

It’s functioning

• For Functionaries: They will be provided dashboards at the national, state, district and block level for real-time information about the number of products uploaded, their value and volume of orders received and fulfilled. • Government buyers: They will be sensitized through system-generated messages/ alerts in the Marketplace about the availability of SHG products on the portal.

Benefits offered

• The Saras Collection will provide SHGs with direct access to Government buyers which will do away with intermediaries in the supply chain. • Thus it would ensure better prices for SHGs and spurring employment opportunities at the local level.

Government e-Marketplace

• The GeM is a one-stop National Public Procurement Portal to facilitate online procurement of common use Goods & Services required by various Government Departments / Organizations / PSUs. • It was launched in 2016 to bring transparency and efficiency in the government buying process. • GEM aims to enhance transparency, efficiency and speed in public procurement. • It is a completely paperless, cashless and system driven e-marketplace that enables procurement of common use goods and services with minimal human interface.

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• It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users to achieve the best value for their money. • The purchases through GeM by Government users have been authorized and made mandatory by the Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017. • It has been developed by Directorate General of Supplies and Disposals (Ministry of Commerce and Industry) with technical support of National e-governance Division (MEITy).

16. Opportunity to strengthen the 73rd and 74th amendment

Cooperative federalism amid COVID-19

• An unintended but welcome consequence of the struggle against COVID-19 is that the “confrontational federalism” is on the decline with the revival of “cooperative federalism”. • There is a realisation that there is no way the COVID-19 situation can be tackled except through a measure of cooperation between the Centre and the states. • Consultative process: The Centre is offering flexibility to states to adopt guidelines to their respective circumstances and states are accepting guidelines from the Centre. • A principal reason for Kerala’s amazing performance in “flattening the curve” is their robust system of effective devolution. Such devolution helped the Kudumbashree programme to function in association with the panchayats.

The concept of 3 tier devolution: Centre-State-Panchayats

• Article 243G provides that state legislatures “may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government”. • This means state governments cannot and must not treat panchayats as extensions of the state government but as “institutions of (local) self-government”. • The logic of “cooperative federalism” is that states must function not as implementation arms of the central government but as autonomous units within the federation. • By the same logic panchayats too must be conceived not as an extension of state governments but as “units of self-government”. • It is thus that panchayats need to be brought into the three-tier devolution system envisaged in the Constitution: Centre-State-Panchayats (and municipalities).

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How could devolution help in the fight against Covid-19?

• In line with the rising cooperation between the Centre and the states, the focus should be on further devolution in keeping with the constitutional obligations under the 73rd and 74th amendments. • The starting point could best be Entry 23 of the Eleventh Schedule that reads, “Health, sanitation, including hospitals, primary health centres and dispensaries” • Entry 23 is among the list of 29 subjects illustratively set out for devolution to the panchayats, subject to conformity legislation being enacted by state legislatures. • All state legislation has included this subject for devolution. • Therefore, empowering the panchayats in this regard with functions, finances and functionaries is now a statutory obligation under state law under Article 243G. • With the migrant workers returning to their native villages, it is important to fully involve village panchayats and municipalities as “institutions of self-government” – 243W in the anti-COVID-19 campaign. • Entry 28 of the Eleventh Schedule mentions the “public distribution system” as among the subjects for devolution. • There are many other entries in the Schedule that are relevant to this exercise. • There is an army of 32 lakh elected representatives in the panchayats and about two lakh more in the municipalities to contribute in the fight against Covid-19. • Well over a third of them, some 10-12 lakh, are drawn from the Scheduled Castes and Tribes and, therefore, in touch with the most destitute in every village and town. • There are some 14 lakh women who have established themselves by election as village leaders. • Imagine a constructive role such women can play as “front-line workers” in the battle against the coronavirus. • The most important requirement is planning to receive the migrant labour influx. • Last-mile delivery can only be comprehensively ensured by empowered panchayats and municipalities reporting to their respective gram sabhas and ward sabhas mandated under Articles 243 A and 243 S. • Planning for withstanding the ingress of COVID-19 requires the full deployment of the mechanisms for district planning envisaged in Article 243 ZD.

Conclusion As the cooperative federalism underlines India’s fight against Covid-19, devolution to the third tier –panchayats and municipalities would give a much needed fillip to the fight against Covid-19.

73rd and 74th Amendments

• 73rd and 74th Constitutional Amendments were passed by Parliament in December, 1992.

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• Through these amendments local self-governance was introduced in rural and urban India. • The Acts came into force as the Constitution (73rd Amendment) Act, 1992 on April 24, 1993 and the Constitution (74th Amendment) Act, 1992 on June 1, 1993. • These amendments added two new parts to the Constitution, namely, 73rd Amendment added Part IX titled “The Panchayats” and 74th Amendment added Part IXA titled “The Municipalities”. • The Local bodies–‘Panchayats’ and ‘Municipalities’ came under Part IX and IXA of the Constitution after 43 years of India becoming a republic.

Salient Features

• Basic units of democratic system-Gram Sabhas (villages) and Ward Committees (Municipalities) comprising all the adult members registered as voters. • Three-tier system of panchayats at village, intermediate block/taluk/mandal and district levels except in States with population is below 20 lakhs (Article 243B). • Seats at all levels to be filled by direct elections [Article 243C (2)]. • Seats reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) and chairpersons of the Panchayats at all levels also shall be reserved for SCs and STs in proportion to their population. • One-third of the total number of seats to be reserved for women. Onethird of the seats reserved for SCs and STs also reserved for women. One-third offices of chairpersons at all levels reserved for women (Article 243D) • Uniform five year term and elections to constitute new bodies to be completed before the expiry of the term. In the event of dissolution, elections compulsorily within six months (Article 243E).

17. Resuscitating multilateralism with India’s help Background: Post-war Multilateral Order:

• The underpinning assumption of the post-war multilateral system was that peace and prosperity went hand in hand. • Some like-mindedness and a commonly-held purpose were also assumed among members: increasing economic integration and shared prosperity would help enhance these affinities and contribute to peace. • Countries with fundamentally different domestic systems of governance did not form a part of this multilateral order, as was the case with the Soviet bloc in the Cold War years. Weaponisation of Interdependence:

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• None of our multilateral institutions was built for a world where the ties of interdependence, which were supposed to enhance the well-being of all, could themselves be weaponized for nationalistic gain, at the expense of other players. • The misuse of existing rules (or loopholes within the existing rules) by several countries, especially by China (e.g. via forced technology requirements, intellectual property rights violations, and subsidies), to gain an unfair advantage in trade relations was already attracting critique in the recent years. • But the pandemic has provided some alarming illustrations of how damaging the Weaponisation of global supply chains can be. Issues:

• The pandemic has heightened the crisis of multilateralism, not created it. • Amidst the many cracks in the system, it has deepened one especially dangerous fault-line: multilateralism, in its current form, is incapable of dealing with misuse by systemic rivals. • As death tolls rose, many countries responded with export restrictions on critical medical supplies. This is almost inevitable given the absence of adequate stocks within countries, and little in the rules to curb export restraints. • Recognising the shortages that countries were facing — masks, personal protective equipment, ventilators and more — to deal with COVID-19, China offered to sell these products to countries in need. • For instance, when the European Union (EU) put up export restrictions, China stepped in at Serbia’s request. Weaponisation of supply chain – China’s Diplomacy:

• When India complained that test kits imported from China were faulty, China slammed it for irresponsible behaviour. • When Australia indicated that it would conduct an independent investigation of China’s early handling of the epidemic, China threatened it with economic consequences. • Add to this the dangers of using faulty equipment on critical patients, plus the risks that several actors, including the EU and India, see of predatory takeovers of their companies by China. • The pandemic is teaching countries, through bitter experience, that weaponised interdependence is not just a theory but a practice that is rapidly evolving. • It can have life and death consequences. • Against this background, repeated calls by heads of governments and international organisations urging countries to remain committed to multilateralism seems unconvincing. Way forward:

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• There is a need for reassurance and policies that reflect a renewed commitment to the existence of multilateralism. • The United States must demonstrate in word and deed that autarchy is not the way forward and that it remains committed to strengthening global supply chains which are based on the promise of ensuring global stability and the attendant promise of peace and prosperity. There is an urgent need for some strategic decoupling, handled smartly in cooperation with other like-minded countries. • A multilateralism that recognises the need for decoupling will necessitate closer cooperation with some and distancing from others. • Membership of such renewed multilateral institutions would not be universal; rather, one would limit deep integration to countries with which one shares first-order values — such as pluralism, democracy, liberalism, animal welfare rights, and more. India’s Role:

• It is believed that India is uniquely positioned to help resuscitate multilateralism. • As some constituencies in the West seek a gradual decoupling from China, they would be well served to look toward India. • Countries have lost faith in China because of COVID-19 and the apparent malfeasance and the opaqueness with which it has dealt with the crisis. Its image as a reliable partner has suffered a huge dent. • Neither aid diplomacy nor the unleashing of Chinese soft power can easily recover the trust deficit that exists today between China and much of the rest of the world. • At a time when China is facing a global crisis of credibility, India may consider an attempt at mediation; to temper what is increasingly seen as Beijing’s unilateralist revisionism; revive the promise of the gradual socialisation of China into the international system; and its acceptance of the norms and rules that regulate the principal multilateral institutions. • The current crisis in multilateralism could be a remarkable opportunity for India, a country whose pluralism, democracy, and liberalism have often been underestimated by the West. • To make use of the opportunities, for itself and for the provision of certain global public goods, India’s cooperation with like-minded actors will be key. • India could work closely with the Alliance for Multilateralism (an initiative launched by Germany and France) to shape both the alliance itself and the reform agenda at large. • Working together with a group of countries from the developed and developing world could further amplify India’s voice.

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With the United States facing multiple internal challenges including the prospects of a deeply divisive Presidential election, India (together with like-minded partners even beyond the usual suspects) could assume leadership in strengthening constructive transnational cooperation. Conclusion: To reduce the further spread of the virus, to develop effective medical treatments, and to curtail the worst effects of the inevitable recession that is already in the offing, cooperation among nations will be necessary. But the issue is that multilateralism is possibly at its weakest today, when the need for it is more dire than ever before. Unless the fundamental problem is addressed, no meaningful fix would be possible.

18. Epidemic Disease Act, 1897

Why in News Recently, the Union government directed States and Union Territories to invoke the Epidemic Disease Act, 1897 to fight the Covid-19 outbreak.

▪ The colonial-era Act empowers the state governments to take special measures and prescribe regulations in an epidemic. It also defines penalties for disobedience of these regulations, and provides for immunity for actions taken under the Act “in good faith”. Important Provisions ▪ Aim:

o The Epidemic Diseases Act aims to provide for the better prevention of the spread of dangerous epidemic diseases. o Under the act, temporary provisions or regulations can be made to be observed by the public to tackle or prevent the outbreak of a disease. ▪ Powers to Central Government:

o Section 2A of the Act empowers the central government to take steps to prevent the spread of an epidemic. o Health is a State subject, but by invoking Section 2 of the Epidemic Diseases Act, advisories and directions of the Ministry of Health & Family Welfare will be enforceable. o It allows the government to inspect any ship arriving or leaving any post and the power to detain any person intending to sail or arriving in the country.

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▪ Penalty for Disobedience:

o Section 3 provides penalties for disobeying any regulation or order made under the Act. These are according to section 188 of the Indian Penal Code (Disobedience to order duly promulgated by a public servant). ▪ Legal Protection to Implementing Officers:

o Section 4 gives legal protection to the implementing officers acting under the Act. ▪ Enforcement of the Act in the Recent Past:

o The Epidemics Diseases Act is routinely enforced across the country for dealing with outbreaks of diseases such as Swine Flu, Dengue. o For Example in 2009, to tackle the swine flu outbreak in Pune, Section 2 powers were used to open screening centres in civic hospitals across the city, and swine flu was declared a notifiable disease. Background ▪ Context: The Epidemic Diseases Bill was introduced in 1897, during an outbreak of bubonic plague. ▪ Need: Since the existing laws were insufficient to deal with various matters such as “overcrowded houses, neglected latrines and huts, accumulations of filth, insanitary cowsheds and stables, and the disposal of house refuse. ▪ Special Powers: The Bill had called for special powers for governments of Indian provinces and local bodies, including to check passengers of trains and sea routes. ▪ Global Concern: The government of the day was also concerned that several countries were alarmed by the situation in India. As Russia had speculated that the whole subcontinent might be infected due to plague. Plague

▪ Plague is caused by the bacteria Yersinia pestis usually found in small mammals and their fleas. ▪ There are two main clinical forms of plague infection: bubonic and pneumonic.

o Bubonic plague is the most common form and is characterized by painful swollen lymph nodes or 'buboes'. o Pneumonic plague is a form of severe lung infection. ▪ Plague is transmitted between animals and humans by the bite of infected fleas, direct contact with infected tissues, and inhalation of infected respiratory droplets.

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▪ Antibiotic treatment is effective against plague bacteria, so early diagnosis and early treatment can save lives. ▪ Currently, the three most endemic countries are the Democratic Republic of the Congo, Madagascar, and Peru. Recent Changes in the Epidemic Diseases Act, 1897 ▪ Recently, the Cabinet amended the Act through an ordinance stating that commission or abetment of acts of violence against healthcare service personnel shall be punished with imprisonment for a term of three months to five years, and with fine of Rs 50,000 to Rs 2 lakh. ▪ In case of causing grievous hurt, imprisonment shall be for a term of six months to seven years and a fine of Rs1 lakh to Rs 5 lakh.

19.Development of the Nanomaterials Based Supercapacitors

Why in News Recently, a group of researchers (including a recipient of the INSPIRE Faculty Award) have made significant achievements in developing nanomaterials based supercapacitors to achieve high energy density and power density of supercapacitors.

▪ Energy density is the amount of energy that can be stored in a given mass of a substance or system, i.e. a measure of storage of energy. ▪ Power density is the amount of power (time rate of energy transfer) per unit volume, i.e. a measure of release of energy. Energy: Batteries, Capacitors and Supercapacitors

▪ Like batteries, Capacitors are also used to store energy. While batteries rely on chemical reactions, capacitors use static electricity (electrostatics) to store energy. ▪ Capacitors have many advantages over batteries: they weigh less, generally don't contain harmful chemicals or toxic metals, and they can be charged and discharged many times. However, they cannot store the same amount of electrical energy as batteries. ▪ Supercapacitors, also known as EDLC (electric double-layer capacitor) or Ultracapacitors, differ from regular capacitors in that they can store a huge amount of energy. ▪ Batteries have a higher energy density (they store more energy per unit mass) but supercapacitors have a higher power density (they can release energy more quickly). This property makes supercapacitors particularly suitable for storing and releasing large amounts of power relatively quickly.

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▪ Supercapacitors deliver quick bursts of energy during peak power demands and then quickly store energy and capture excess power that's otherwise lost. In the example of an electric car, a supercapacitor can provide needed power for acceleration, while a battery provides range and recharges the supercapacitor between surges. Key Points ▪ Nanomaterials Based Supercapacitors:

o The researchers have been working on carbon (Carbon Nanotubes, Graphene) nanomaterials based supercapacitors to achieve high energy density and power density of supercapacitors. o High energy density of supercapacitors suggests that constant current can be withdrawn for a longer duration without recharging. Hence automobiles can run longer distances without charging. o Thus, researchers have developed a reduced graphene oxide (rGO) at a moderate temperature of 100°C with high capacitance performance. It is cost-effective and suitable for commercial purposes. o The focus on energy devices paves the way for the development of cost-effective and efficient devices, which can be used for energy storage application. ▪ Optoelectronic Applications of Nanomaterials:

o Optoelectronics is the study and application of electronic devices and systems that source, detect and control light, usually considered a sub-field of photonics. o The researchers are developing novel nanostructures of carbon for Surface-Enhanced Raman spectroscopy (SERS).

• Surface-Enhanced Raman spectroscopy or surface-enhanced Raman scattering (SERS) is a surface-sensitive technique that enhances Raman scattering by molecules adsorbed on rough metal surfaces or by nanostructures such as plasmonic-magnetic silica nanotubes. • The enhancement factor can be as much as 1010 to 1011, which means the technique may even detect a single molecule. o The SERS can help detect harmful molecules present in water at ultra-low concentrations. o The findings make way for materials which can be used as advanced photodetectors and also be used as optical sensors for water pollution control.

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Innovation in Science Pursuit for Inspired Research ▪ Innovation in Science Pursuit for Inspired Research (INSPIRE) intends to attract talent to study science at an early age, and to help the country build the required critical resource pool for strengthening and expanding the Science and Technology base with long term foresight. ▪ It is an India specific model for attracting talent with an aptitude for research and innovation, for a career in Basic & Natural sciences. ▪ The scheme has been developed by the Department of Science & Technology (DST), Ministry of Science and Technology and approved in 2008. ▪ INSPIRE Scheme has included three programs and five components.The three programmes are:

o Scheme for Early Attraction of Talent (SEATS): It aims to attract talented youth to study science by providing INSPIRE Award of Rs 5000 to one million young learners of the age group 10-15 years. o Scholarship for Higher Education (SHE): It aims to enhance rates of attachment of talented youth to undertake higher education in science intensive programmes, by providing scholarships and mentorship. o Assured Opportunity for Research Careers (AORC): It aims to attract, attach, retain and nourish talented young scientific Human Resource for strengthening the R&D foundation and base.

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20. Virus attack worse than Pearl Harbor

Context: Donald Trump has said the COVID-19 pandemic is a worse attack on the U.S. than either Pearl Harbor or 9/11, taking aim once again at China, which he said should have stopped the disease in its tracks.

Details:

• The pandemic has hammered healthcare infrastructure in many parts of the United States, including New York City, and its impact has been particularly severe on the least privileged sections of American society, such as undocumented migrants. • The U.S. President has ramped up his rhetoric against Beijing. • China accused the United States of trying to shift blame over the novel coronavirus, after President Donald Trump said the pandemic was a worse “attack” than Pearl Harbor or 9/11. • Tension between the world’s two biggest economies (the US and China) has reached fever pitch as they have exchanged barbed comments on each other’s handling of the virus. Pearl Harbor Assault:

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• Prior to the attack on Pearl Harbor, relations between the US and Japan were already worsening. • In 1910, Japan annexed Korea and, in 1937, it invaded China. This showed Japan’s manifest expansionist agenda. • Between December 1937 and January 1938, the “Nanking Massacre” occurred where Japanese soldiers killed and raped Chinese civilians and combatants. • Japan invaded China and later French Indo-China as it was reliant on imports for oil and other natural resources. • In July 1941, the US ceased exporting oil to Japan. • As the negotiations between the US and Japan did not lead to anything concrete, Japan set its task for Pearl Harbor in November 1941. • The Japanese attack on Pearl Harbor killed over 2,300 Americans and destroyed the battleships USS Arizona and USS Oklahoma. • The Japanese assault on the Pearl Harbor naval base in Hawaii in 1941 drew the United States into the Second World War. • It signalled the official entry of the US into the hostilities, which eventually led to the dropping of nuclear bombs on the Japanese cities of Hiroshima and Nagasaki in 1945. 9/11 attacks:

• The September 11, 2001 jihadist attacks on the World Trade Center killed about 3,000 people and triggered two decades of war. • The attacks were a series of four coordinated terrorist attacks by the Islamic terrorist group al-Qaeda against the United States. • Terrorists hijacked four passenger airplanes and crashed them onto two towers of the World Trade Center Complex and the Pentagon (HQ of the US Defense department).

21. Green tribunal directs LG Polymers to deposit 50 cr.

Context:

• The National Green Tribunal (NGT) has taken suo motu cognisance of the gas leak at the LG polymer plant in Vishakhapatnam. Background:

• The gas leak in LG Polymer India’s Vishakhapatnam plant has led to the death of at least 11 people and affected several others. Details:

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• Styrene gas is defined as a hazardous chemical under relevant rules and the rules require on-site and off-site emergency plans to ensure prevention of damage. The current incident appears to be due to the failure to comply with rules and other statutory provisions. • Leakage of hazardous gas on a large scale, adversely affecting public health and environment, attracts the principle of ‘strict liability’, against the enterprise concerned. Such an entity is liable to restore the damage caused under the Environment Law, apart from other statutory liability. • The National Green Tribunal (NGT) has directed LG Polymers India to deposit an initial amount of 50 crore rupees for the damage caused by the gas leak. • The statutory authorities responsible for authorising and regulating such activities may also be held accountable for their lapses, if any, in dealing with the matter and in this regard NGT has issued notice to the Andhra Pradesh Pollution Control Board, the Central Pollution Control Board and the Union Ministry of Environment, seeking their response. • The NGT has also constituted a five-member fact-finding committee to probe the incident and submit a report. The committee has been directed to inspect the site at the earliest. • The Committee has been directed to investigate the causes of failure and the persons and authorities responsible, measure the extent of damage to life, human and non-human, public health and the environment, including water, suggest steps to be taken for compensation of victims and restitution of the damaged property and environment and the cost involved. Concerns:

• The National Green Tribunal order’s reference to the archaic law principle of “strict liability” has been questioned. • Under the strict liability principle, a party is not liable and need not pay compensation if a hazardous substance escapes his premises by accident or by an “act of God’” among other circumstances. • The strict liability principle provides companies with several exemptions from assuming liability. • The Supreme Court in the Oleum gas leak case of Delhi, found strict liability woefully inadequate to protect citizens’ rights in an industrialised economy like India (in the backdrop of the 1984 Bhopal gas tragedy) and replaced it with the ‘absolute liability principle’. Way forward:

• The term “absolute liability” should have been used by the NGT.

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• Under the absolute liability principle, a company in a hazardous industry cannot claim any exemption. It has to mandatorily pay compensation, whether or not the disaster was caused by its negligence. The Supreme Court has previously held that a hazardous enterprise has an “absolute non-delegable duty to the community”. There is a need to quickly ascertain the causes of the gas leak. Appropriate accountability must be fixed accordingly. There is a need to put in place, suitable measures to ensure that such untoward incidents do not occur in the future.

22. How different is the PM CARES Fund from the PM’s National Relief Fund?

Context:

• Setting up of the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund, or the PM CARES Fund. Background:

• The PM CARES Fund was set up to tackle distress situations such as that posed by the COVID-19 pandemic. • The Prime Minister chairs the fund in his official capacity and can nominate three eminent persons in relevant fields to the Board of Trustees. The Ministers of Defence, Home Affairs and Finance are ex-officio Trustees of the Fund. Details: Contribution guidelines:

• The fund receives voluntary contributions from individuals and organisations and does not get any budgetary support. • Donations have been made tax-exempt and can be counted against a company’s corporate social responsibility (CSR) obligations. • Contributions to PM CARES fund are exempt from the Foreign Contribution (Regulation) Act 2010, and accept foreign contributions. Donations collected:

• In a short frame of time, PM CARES has received a large number of donations. • By the first week of its inception, news reports suggested that publicly declared donations added up to at least ₹6,500 crores. Concerns: Duplication of efforts:

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• India already has a fund with similar objectives in the form of the Prime Minister’s National Relief Fund (PMNRF). • PMNRF was set up in January 1948, originally to accept public contributions for the assistance of Partition refugees but lately, it has also been used to provide immediate relief to the families of those killed in natural calamities and the victims of major accidents and riots and support medical expenses for acid attack victims and others. • The Prime Minister has sole discretion for fund disbursal from PMNRF. • A joint secretary in the PMO administers the fund on an honorary basis. • As of December 2019, the PMNRF had an unspent balance of 3,800 crore rupees in its corpus. Concerns with respect to contribution:

• Some of the public and private sector employees, who have donated a day’s salary to the fund, claim that it was done without their permission or knowledge. • Protests have been raised against companies such as Reliance which have made major donations to PM CARES even while cutting salaries of their own employees. • Allowing uncapped corporate donations to the fund to count as CSR expenditure goes against previous guidelines which state that CSR should not be used to fund government schemes. • Such a provision is not available under PMNRF. There is also the provision for unlimited tax-free contributions from major corporates. This provision is liable for misuse. Lack of transparency:

• Even though independent auditors will be auditing the fund, it is still not clear whether the fund comes under the ambit of the RTI Act or the oversight of the Comptroller and Auditor General of India. • The Centre has neither stated the exact amount of money collected in the PM CARES Fund, nor has laid down clear guidelines on the usage of the collected funds. • There is very less information available regarding the names of donors, the expenditure of the fund so far, or names of beneficiaries.

23. The trends shaping the postCOVID19 world

Context:

• Emerging geopolitical trends in the light of the COVID-19 pandemic.

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Details:

• The author of the article discusses geopolitical trends which will define the contours of the emerging global order. Asia ascending, U.S. waning: Economic aspect:

• Until the 18th century, Asia accounted for half the global GDP. The Industrial Revolution accompanied by European naval expansion and colonialism contributed to the rise of the West. • The 2008 global financial crisis and the resilience of the Asian economies led to the rise of Asia. • Current economic forecasts indicate that out of the G-20 countries, only China and India are likely to register economic growth during 2020 despite the global lockdown measures. Response to the pandemic:

• Asian countries have demonstrated greater agility and responsiveness in tackling the pandemic and more effective state capacity compared to the United States and Europe. Consequently, Asian economies will recover faster than those in the West. Isolationist approach by the U.S.:

• The U.S. had been at the forefront of shaping the global order in the last century. • The U.S. had a decisive role in the formation of the League of Nations after World War I, creation of the United Nations and Bretton Woods institutions after World War II. It was leading the western world during the Cold War, moulding global responses to threats posed by terrorism or proliferation of weapons or climate change. Recently, there has been the observed trend of retreat of the U.S. from global affairs. • The decision to exit from the Paris climate deal, the exit of America from UN agencies and halting of their funding mark the increasing isolationism on the part of the U.S. Recent U.S. decisions and the “America first” policy have also generated resentment. Countries are losing trust in the U.S.’s leadership. The U.S., though still continuing to be the largest economy and the largest military power, has lost the will and ability to lead. Intra-European fission: Existing challenges:

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• The European Union has been preoccupied with its very own internal challenges. • Ongoing Brexit negotiations. • The expansion of membership to include East European states has increased the internal divisions and made it increasingly difficult to reach agreement on political matters like relations with Russia and China. This has led to a North-South divide within the Eurozone. • The financial crisis in the Eurozone has also given rise to internal divisions. Strains in the EU showed up when austerity measures were imposed on Greece, Italy, Spain and Portugal a decade ago by the European Central Bank, persuaded by the fiscally conservative Austria, Germany and the Netherlands. New challenges:

• The trans-Atlantic divide in NATO member nations is aggravating an intra- European rift. • Rising populism has given greater voice to Euro-sceptics and calls for greater autonomy. • There has been a dearth of coordination and collaboration in the EU’s response to the pandemic. • European Central Bank (ECB) chief has ruled out lower borrowing rates for the affected member states. • Italy was denied medical equipment by its EU neighbours who introduced export controls, which led to China airlifting medical teams and critical supplies. Schengen visa or free-border movement has been affected due to the lockdown and movement regulation measures. Free movement of goods, services, capital and people, which has been the underlying theme of the European Union faces a grave challenge. Rising China:

• There has been an emergence of a stronger and more assertive China in the global order. • Though China’s growing economic role has been visible since it joined the World Trade Organization, its more assertive posture has taken shape recently under President Xi Jinping’s leadership. The Belt and Road Initiative seeks to connect China to Eurasia and Africa through both maritime and land routes by investing trillions of dollars in infrastructure building. This will give China greater strategic and economic heft in the region and world at large. Chinese assertiveness has raised concerns in its neighbourhood and the world over. New cold war:

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• The U.S. had initially assisted China’s rise and cooperated with it in the hope that an economically integrated China would become politically more open. • However in recent years, the U.S.-China relationship has moved from cooperation to competition, to trade and technology wars and is moving steadily to confrontation. • A partial economic de-coupling between the two economic giants had begun and will gather greater momentum in the days ahead. • The pandemic has seen increasing rhetoric from both China and the U.S. • The U.S. blames the pandemic on a Chinese biotech lab and accuses China of suppressing vital information that contributed to the spread. Fading organisations:

• Global problems demand global responses. However, with COVID- 19, international and multilateral bodies seem to have been ineffective. • The World Health Organization (WHO), best suited to lead global efforts against the health crisis, has become a victim of politics. • The UN Security Council (UNSC), the G-7 and the G-20 remain ineffective in ensuring coordination and collaboration. Global and multilateral institutions are witnessing the return of the damaging big power politics. The absence of a multilateral response highlights the long-felt need for reform of these bodies but this cannot happen without collective global leadership. Energy Factor:

• The growing interest in renewables and green technologies on account of climate change concerns and the U.S. emerging as a major energy producer have fundamentally altered the energy markets. • The looming economic recession and depressed oil prices will exacerbate internal tensions in West Asian countries, which are solely dependent on oil revenues. • Long-standing rivalries in the region may now create political instability in countries where regime structures are fragile. Greater unpredictability:

• Rising nationalism and protectionist responses will prolong the economic recession into a depression, sharpening inequalities and polarisations. • This will lead to greater unpredictability and turbulent times in international relations.

24.The epidemic and ensuring safety in courts

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Context:

• Working of the judiciary during and after the national lockdown. Background: Supreme Court Ruling for virtual functioning:

• Invoking its powers under Article 142 of the Constitution, the Supreme Court had issued certain directions for the virtual functioning of courts during the lockdown. • A virtual court hearing is one where there is no physical court room. All the participants take part in proceedings using telephone or video conferencing facilities. The Supreme Court (SC) had directed the State officials of the National Informatics Centre (NIC) to work with the respective High Courts to formulate a plan for the virtual functioning of courts. The SC had stated that the guidelines for virtual functioning of courts would be formulated by the NIC and sent to the respective courts and lawyers. The district courts would follow the video conferencing rules as formulated by the respective High Courts. Precedents:

• The e-filing system was introduced in the Delhi High Court in 2009. In the Delhi High Court, e-filing is mandatory for company, taxation and arbitration jurisdictions. The facility for e-filing of cases pertaining to the Delhi High Court has been recently made available at all the court complexes of the Delhi district courts. • About 10 courts in the Delhi High Court function as e-courts. There are 13 e- courts functioning in the district courts attached to the Delhi High Court. Another 11 e-courts will soon be functional. • In the Bombay High Court, e-courts started functioning from 2013. Initially only company matters, arbitration and conciliation matters, income tax appeals and suits were allowed in e-courts. Now even writs, suits and testamentary matters are heard by e-courts. • In the Madras High Court, the facility for e-filing of cases was initially made available for bail applications. Filing of urgent cases through e-mail is also permitted now. Current concerns of the judiciary: Increase in volume of cases:

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• Though currently, there is less pressure on the courts now, this will change once the lockdown is lifted. There is an expectation that there will be a deluge of new cases after the lockdown is lifted. Threat of infection:

• Since the COVID-19 crisis is far from over, once the lockdown is lifted, unless the number of advocates/litigants is restricted in open court proceedings, the possibility of the virus spreading is high. Call for open court system:

• The Bar Council of India has opposed the continuation of virtual hearings once the national lockdown is lifted. It has argued that 90% of the advocates and judges are “unaware of technology and its nuances”. Non implementation of SC guidelines:

• The NIC has not yet notified the guidelines as mandated by the SC. Challenges to adoption of e-court system: Lack of necessary infrastructure:

• International experience with respect to e-court system highlights the need to put in place the necessary infrastructure to facilitate remote court hearings. This is lacking in most courts in India. • Though some form of foundation for an e-court system is available in the Supreme Court and the High Courts, they are not available in the subordinate courts, which bear a large burden of the cases. Lack of knowledge and capability:

• In India, most advocates and litigants are unaware of and unwilling to use e- filing services. • E-filings and e-court processes involve a certain amount of technical knowledge and capability. Way forward:

• The courts should formulate plans based on the availability of infrastructure to conduct virtual hearings or actual hearings, or by running courts in shifts. • Suitable safety measures with strict social distancing norms must be put in place for conducting proceedings after the lockdown is lifted. • Only those lawyers/litigants whose cases are listed for the day’s hearing should be allowed to enter court halls. • The lawyers must enter in batches according to the serial number in the list.

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• Thermal image cameras must be installed at the entrance of every court building, to identify risk persons. • Every person entering the court premises must install the Aarogya Setu app on their phones. • The entrance of every court complex must have an automatic hand wash faucet installed. • Protective equipment like masks, gloves and sanitizers should be made available. The judiciary must be allotted sufficient funds. The lack of allocation of sufficient funds to improve and strengthen technical support for the judiciary has resulted in inefficient use of technology in the judiciary.

25. Face-off Between India and China

Why in News Recently, Indian and Chinese troops engaged in a temporary and short duration face- off along the Line of Actual Control (LAC) at Naku La (Sikkim) and near Pangong Tso Lake (Eastern Ladakh).

Naku La

▪ Naku La sector is a pass at a height of more than 5,000 metres above Mean Sea Level (MSL) in the state of Sikkim.

o It is located ahead of Muguthang or Cho Lhamu (source of River Teesta). ▪ At Muguthang, the road on the Chinese side is motorable, and on the Indian side, it is a remote area. ▪ The other passes located in the state of Sikkim are Nathu La Pass and Jelep La Pass. Pangong Tso Lake

▪ Pangong Lake is located in the Union Territory of Ladakh. ▪ It is situated at a height of almost 4,350m and is the world’s highest saltwater lake. ▪ Extending to almost 160km, one-third of the Pangong Lake lies in India and the other two-thirds in China. Key Points ▪ The temporary and brief face-offs occur because the unresolved and undemarcated boundary issues.

o The India-China border shares the 3,488-km-long Line of Actual Control.

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▪ Both countries have differing perceptions owing to the undemarcated boundary, which lead to transgressions and face-offs as each side patrols up to the areas. ▪ Any such issue is resolved through the mutually established protocols to maintain peace and tranquillity on the border. The resolving mechanism also involves the local Border Personnel Meeting (BPM).

o These protocols with China have been established to resolve issues amicably at the local formation commander level. ▪ The recent clash happened three years after the Doklam stand-off between India and China (2017), which was also experienced across the border in Sikkim.

o Doklam, or Donglang in Chinese, is an area spread over less than a 100 sq km comprising a plateau and a valley at the trijunction between India, Bhutan and China. o The Doklam issue was discussed in the Wuhan Summit (2018) and two nations decided to issue "strategic guidance" to their militaries to strengthen communications so that they can build trust and understanding.

McMahon Line Line of Actual Control

▪ The 890-km McMahon Line ▪ The Line of Actual Control (LAC) is the separating British India and Tibet was effective border between India and drawn by Sir Henry McMahon at China. the China-Tibet-Britain Simla Convention (1914).

▪ The line marked out previously ▪ LAC was supposed to divide areas unclaimed/undefined borders between under Indian and Chinese control since Britain and Tibet. Also the Line put the end of the Sino-Indian War of 1962. Tawang (a region of the present Arunachal Pradesh) in the British empire.

▪ The line was forgotten until the British ▪ Unlike the LoC (between India and government published the documents Pakistan), the LAC was not mutually in 1937. Subsequently, China refused to agreed upon. This was because the war accept the line. ended with a unilateral ceasefire by China.

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Global Examples of Aggressive Diplomacy by China ▪ Covid-19 Origin:

o China has been engaged in aggressive diplomacy with western countries, which have sought clarity on the origins of the Covid-19 pandemic that has crippled the world economy, and led to almost four million people across the globe falling ill. ▪ South China Sea:

o It has also reported that China has established new administrative districts for the Spratly and Paracel archipelagos in the South China Sea. o China has also named 80 islands and other geographical features in the sea, claiming sovereignty over underwater features in the contested region.

26. Relaxation in labour laws due to COVID-19 outbreak and their impacts

• Amid the coronavirus-induced lockdown, an increasing number of states that include Uttar Pradesh, Madhya Pradesh, Rajasthan and Gujarat have pushed through changes to their labour laws by way of amendments — ordinances or executive orders. • They aim to provide some sort of blanket exemption to employers from labour laws.

What is the move all about?

• Most states cleared an ordinance exempting businesses from the purview of most labour law provisions for the next three years. • However, labour laws related to bonded labour, deployment of women and children and timely payment of salaries are not changed.

Why such a move?

• Businesses and economic activities have slowed down due to which labour welfare has also been affected due to the national lockdown. • To bring economic activity back on track, new investment opportunities would need to be created along with fastening the businesses processes and productivity.

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What are the Indian Labour Laws?

• Labour falls in the Concurrent List and there are many laws enacted by the Centre that a state cannot just brush aside. • Estimates vary but there are over 200 state laws and close to 50 central laws. And yet there is no set definition of “labour laws” in the country.

Their types

Broadly speaking, they can be divided into four categories. Refer to the image.

• The main objectives of the Factories Act, for instance, are to ensure safety measures on factory premises and promote the health and welfare of workers.

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• The Shops and Commercial Establishments Act, on the other hand, aims to regulate hours of work, payment, overtime, a weekly day off with pay, other holidays with pay, annual leave, employment of children and young persons, and employment of women. • The Minimum Wages Act covers more workers than any other labour legislation. • The most contentious labour law, however, is the Industrial Disputes Act, 1947 as it relates to terms of service such as layoff, retrenchment, and closure of industrial enterprises and strikes and lockouts.

Why are labour laws often criticised?

• Indian labour laws are often characterized as “inflexible”. Most of them are inadequate to make the sector formalized. • At present 90% of India’s workers are parts of the informal economy. The Chart shows, even the organised sector are increasingly employing workers without formal contracts. • Others have also pointed out that there are too many laws, often unnecessarily complicated, and not effectively implemented. This has laid the foundation for corruption and rent-seeking.

Issues with the recent relaxation

• The state of UP has summarily suspended almost all labour laws including the Minimum Wages Act. • Hence this move is characterized as “creating an enabling environment for exploitation”. • That’s because far from being a reform, which essentially means an improvement from the status quo, the removal of all labour laws will not only strip the labour of its basic rights but also drive down wages.

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• For instance, what stops a firm from firing all existing employees and hiring them again at lower wages, she pointed out. • Moreover, far from pushing for a greater formalization of the workforce, this move will in one go turn the existing formal workers into informal workers as they would not get any social security.

Consequences: Fall in wages is inevitable

• For one, as Chart 3 shows, even before the Covid-19 crisis, thanks to the deceleration in the economy, wage growth had been moderating. • Moreover, there was always a wide gap between formal and informal wage rates. For example, a woman working as a casual labourer in rural India earns just 20% of what a man earns in an urban formal setting. • If all labour laws are removed, most employment will effectively turn informal and bring down the wage rate sharply. And there is no way for any worker to even seek grievance redressal.

Would these changes not boost employment and spur economic growth?

• Theoretically, it is possible to generate more employment in a market with fewer labour regulations. • However, as the experience of states that have relaxed labour laws in the past suggests, dismantling worker protection laws have failed to attract investments and increase employment. • It is unproven if they can cause an increase in worker exploitation or deterioration of working conditions. However, in the long run, employment will not increase, because of several reasons.

How would they get impacted?

• There is already too much-unused capacity. Firms are shaving off salaries up to 40% and making job cuts. The overall demand has fallen. Which firm will hire more employees right now, he asked. • If the intention was to ensure more people have jobs, then states should not have increased the shift duration from 8 hours to 12 hours. • They should have allowed two shifts of 8-hours each instead so that more people can get a job. • This move and the resulting fall in wages will further depress the overall demand in the economy, thus hurting the recovery process.

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Could the government have done something else?

• Most governments have done across the world have partnered with the industry and allocated 3% or 5% of the GDP towards sharing the wage burden and ensuring the health of the labourers. • Moreover, beyond labour regulations, firms face a lot of other hurdles like the shortage of skilled labour and the weak enforcement of contracts etc. • Time demands to secure the labour most than their employers.

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27. Equal freedom and forced labour

Context:

• State governments are in the process of removing and altering labour laws.

Background:

Freedom movement:

• Rights of labour were a predominant theme of the freedom struggle and the labour movements have contributed to the successful freedom struggle. • The 1931 Karachi Declaration and Bill of Rights, often considered a fore-runner to the Constitution, place labour rights on a par with ordinary civil rights such as the freedom of speech and expression. It noted that political freedom must also include real economic freedom for the people.

Constitutional history:

• The normal understanding of the purpose of constitutions has been to limit state power, in order to preserve the freedom of the individual. • However, the Constituent Assembly of India in general, and B.R. Ambedkar in particular, argued against such a narrow understanding of freedom. • Given the role of private parties — individuals and corporations —over the economic and social life of a nation, B.R. Ambedkar argued that fundamental rights must also consider and eliminate the possibility of the more powerful having the power to impose arbitrary restraints on the less powerful in terms of economic life of the people.

Judicial stand:

• In 1983, a petition was filed in the Supreme Court seeking its intervention to address the exploitation of migrant and contract labourers, who had been put to work in constructing the Asian Games Village in New Delhi. • The Supreme Court in the PUDR vs. Union of India case made some important observations: o SC noted that often, migrant and contract labourers, under the compulsion of economic circumstance, had no real choice but to accept any work that came their way, even if the remuneration offered was less than the minimum wage. o The Court held that the compulsion of economic circumstance compelling a person to provide labour or service was no less a form of forced labour than any other.

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• The Court held that the right against forced labour included the right to a minimum wage and insisted on a constitutional guarantee of minimum wages.

Consolidation of labour laws:

• The Parliament is consolidating 29 existing labour laws into four codes dealing with wages, occupational safety and health, industrial relations and social security.

Details:

• The author of the article argues that the steps being taken by the State governments in removing labour laws are unconstitutional.

Constitutional provisions:

• The strong ideals and principles of the freedom movement eventually found their way into the Indian Constitution in the form of Directive Principles of State Policy and Fundamental Rights o Article 23 of the Indian Constitution provides for the right against forced labour. o The State shall endeavour to provide the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, within the limits of economic capacity as per Article 41. o Article 43 says workers should have the right to a living wage and “conditions of work ensuring a decent standard of life”. o The State shall take steps to promote their participation in management of industrial undertakings as per Article 43A.

Concept of “force” and “freedom”:

• Forced labour may not be only due to physical force or threat of physical harm. This constitutes a very narrow understanding of forced labour of freedom per se. • Such an understanding ignores the compulsion that is exerted by differences of power, social or economic status. These forces are equally severe as physical force or threat of physical harm. In such circumstances, poor and vulnerable people driven by the need to earn a livelihood can be placed in positions where they have no genuine choices left. • K.T. Shah, a member of the Constituent Assembly, had famously written, “necessitous men are not free men”.

COVID-19 crisis:

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• Various State governments are in the process of removing labour laws (for a set period of time). • This would lead to a situation where the economic power exercised by capital will be left unchecked. This could lead to increase in hours of work, removal of minimum wages and reduction of wages. • The author argues that the steps being taken by various State governments in relaxing labour laws, under cover of the COVID-19 pandemic, are grossly unconstitutional.

Challenges:

Market Economy:

• In a market economy, there is a marked inequality between capital and labour, more so in a country like India with pre-existing inequalities in the society. • The inequality results in a lower bargaining power for the labourer class and enables the factory owners to “make the rules” for the labourers. The author refers to this as a form of “private government”, wherein there is unilateral term- setting in the workplace. • The recent rise of the platform or gig economy has led to the rise of casualization and precarious employment which further limits labour unionism and deepens the inequality of power. • There have been rapid changes in the nature of work which are rendering old concepts of jobs and employments obsolete.

Labour laws:

• Labour laws aim to mitigate the supposed imbalance of power between capital and labour. • In India, there have been a detailed set of laws, covering different aspects of the workplace. These are enforced by the State agencies. • India’s labour law structure has been criticised on multiple counts. o The labour bureaucracy as envisaged by the labour laws of India is prone to corruption. o The adjudicatory mechanisms are inefficient. The judiciary has not been able to ensure the protection of the rights of the labour class. o The labour laws predominantly cater to the formal workforce with very less provisions in place for the contract labour or informal employment which account for a majority of the workforce.

Way forward:

• There is a need for a nuanced debate on the future of labour rights guided by B.R. Ambedkar’s insights, the constitutional guarantee against forced labour, and

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an understanding of force and freedom that takes into account differences in power.

28. JDY or NREGA card: What is better option for cash transfers?

High hopes from JAM

• The original formulation, in 2015, mentioned two possible forms of the JAM trinity: mobile banking and post office payments. • The second option never made much progress. • So, Aadhaar-enabled mobile banking became the supreme goal. • In January 2017, NITI Aayog CEO Amitabh Kant predicted the imminent demise of all cash-transfer paraphernalia other than mobiles. • These hopes reached new heights as the JAM project latched on to another flourishing narrative, universal basic income (UBI). • If you want to make cash transfers to everyone, what better platform can you have than Aadhaar, India’s unique biometric ID, doubling up as a permanent financial address?

Corona crisis belied the hopes from JAM

• In the early days of the crisis, JAM was often invoked sometimes along with UBI as a possible tool of emergency relief. • But when the time actually came to make cash transfers to the poor, JAM turned out to be of little use. • The JAM had not gone beyond some fancy digital-payment systems for the privileged. • Poor people were still running from pillar to post to collect their meagre benefits from old-fashioned bank accounts. • Some also use the services of “business correspondents”, but those have little to do with JAM. • Sure enough, long bank queues and related hardships started to emerge, especially in rural areas where the density of banks is relatively low. • In a Dalberg survey conducted last month in 10 states, only 25% of poor households reported that it was “easy” to access cash benefits.

NREGA job Cards: A better option than Jan Dhan Account

• The lead cash-relief measure in the national relief package consists of monthly transfers of ₹500 to women’s JDY accounts. • But is that a good idea? • Let’s compare women’s JDY accounts with another possible basis for cash transfers, at least in rural areas: the list of households that have a National Rural Employment Guarantee Act (NREGA) job card.

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• The numbers of accounts are roughly comparable: about 14 crore for NREGA job cards, and 12 crore or so for women’s JDY accounts in rural and semi-urban.

JDY approach fares poorly on the following 3 counts 1. Lack of transparency and clarity

• JDY accounts are a mighty mess – the NREGA job-cards list is far more transparent and well-organised. • During the frantic initial JDY wave, in 2014-15, banks opened JDY accounts en masse to meet the targets. Banking norms were not followed always. • Later on, a large proportion of JDY accounts – 40% in March 2017, down to 19% in January 2020– went “dormant” as customers were unable or unwilling to use them.

2. Large exclusion error

• The cash transfers to women’s JDY accounts are likely to involve large exclusion errors. • According to a recent Yale study, less than half of poor adult women have a JDY account, an even lower proportion, 21%, know that they have a JDY account. • The NREGA job-card list is likely to have much better coverage of poor households. • The natural complementarity between NREGA and social security pensions covering more than four crore persons under the National Social Assistance Programme alone would further help to reduce exclusion errors.

3. Large inclusion error

• Inclusion errors are also likely to be larger in the JDY approach. • Job cards are meant for rural workers, JDY accounts are for everyone. • National Election Studies 2019 data show that JDY beneficiaries tend to be better-off than NREGA beneficiaries. ( and still, they would get benefits i.e. inclusion error) • Earlier survey data suggest that the probability of having a JDY account is more or less the same for poor and non-poor households.

Comparison on reliability basis

• There have been significant issues e.g. delayed, rejected, blocked or diverted payments with NREGA payments, often related to Aadhaar. • But then, numerous “direct benefit transfer” schemes –social security pensions, scholarships, maternity benefits, among others have faced similar problems, also reflected in official transaction data.

• Both the Aadhaar Payment Bridge System(APBS) and the Aadhaar-enabled Payment System (AePS) are shot through with technical glitches.

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• Transfers to women’s JDY accounts are unlikely to be more reliable than transfers to job-card holders.

Cash in hand option

• As far as effective payment is concerned, there is a further argument in favour of the NREGA job-cards list. • Unlike JDY accounts, it lends itself to the “cash-in-hand” method on-the-spot payment in cash, instead of bank payments as a possible fallback. • The reason is that the job-cards list is a transparent, recursive household list with village and gram panchayat identifiers, while the list of JDY accounts is an opaque list of individual bank accounts. • Cash-in-hand may seem like the antithesis of JAM, but this option may become important in the near future if the banking system comes under further stress. • There are precedents of effective use of the cash-in-hand method, notably in Odisha for pension payments, and in various states for NREGA wage payments. • Several states including Andhra Pradesh, Odisha and Tamil Nadu have already resorted to cash-in-hand for relief payments during the lockdown.

Conclusion There is nothing compelling about the use of women’s JDY accounts for cash relief. In fact, it is a bit of a shot in the dark. The government do well to consider other options for further relief majors, including a switch to the NREGA job-cards list in rural areas.

29. Do numbers matter in Rajya Sabha ?

Context: The Rajya Sabha (RS), the Upper House of the Parliament of India, had its first sitting on May 13, 1952. This article is authored by the Rajya Sabha Chairman. Details:

• The Indian Constitution provides for parity of powers between the Lok Sabha (LS) and the Rajya Sabha in law, making an exception in some cases. • The Money Bill or Finance Bills can be introduced only in the Lok Sabha, which only can approve the Demands for Grants. • On the other hand, the Rajya Sabha has some special powers: • To adopt a resolution allowing Parliament to legislate on subjects in the State List. • Creating All India Services. • Approving proclamations of Emergency and President’s Rule when the Lok Sabha is dissolved.

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Elections to RS and LS:

• Elections to the Lok Sabha are held every five years and before that on dissolution of the House. • For the Rajya Sabha, one-third of the members are chosen every second year reflecting its permanent nature. • While the Lok Sabha elections hold a mirror to the recent will of the people, the Rajya Sabha is envisaged to convey the same in different phases of development marking some continuity. • The Executive lasts only as long as it has a majority in the Lok Sabha, but in law- making, both the Houses are at par. Given the possible variations in the composition of both the Houses on account of different modes of election to them, did it impact the nature and speed of legislation? Has the Rajya Sabha been obstructionist?

• An analysis undertaken by the Rajya Sabha Secretariat recently revealed that during the past 68 years since the first general elections in 1952, the government of the day had a majority in the Rajya Sabha only for 29 years and was in a minority for 39 years, including an unbroken stretch for the past 31 years. • This pronounced divergence in numbers in the two Houses of Parliament does not indicate any adverse impact on the broader course of legislation except in a few cases. • There are, however, a few discordant notes during this long journey of legislation. But there is no case for terming Rajya Sabha as obstructionist. • So far, Parliament held only three Joint Sittings to resolve differences between both the Houses. • The first instance was in 1961 when the then Nehru government enjoyed a majority in the Rajya Sabha but the Dowry Prohibition Bill, 1959 suffered a defeat. • In 1978, the Banking Services Commission (Repeal) Bill, 1977 was rejected by the Rajya Sabha. • In 2002, the Prevention of Terrorism Bill, 2002 could not pass the Rajya Sabha scrutiny. There were occasions when the Rajya Sabha sat over Bills passed by the Lok Sabha for a long time including the Prevention of Corruption Bill, 1987 and the Dock Worker (Safety, Health and Welfare) Bill, 1986. If this was checking hasty legislation, the Rajya Sabha had passed five Constituent Amendment Bills in one day on August 25, 1994 when the government of the day did not have the numbers. The Rajya Sabha has also made amendments to several Bills passed by the Lok Sabha and these were accepted in several cases by the other House.

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Though the present government too, does not have the required numbers in the Rajya Sabha, members of different parties rose to the occasion in passing landmark legislation relating to the GST, Insolvency & Bankruptcy Code, Triple Talaq, Unlawful Activities, Reorganisation of Jammu & Kashmir, Citizenship Amendment and so on. This goes to prove that numbers in the Rajya Sabha is not an issue as far as law- making is concerned. It is a different concern which applies broadly to the legislatures of the country. Spirit of cordiality between RS and LS:

• Renowned British philosopher and political economist John Stuart Mill, as early as in 1861, said in his great treatise ‘Considerations on Representative Government’ that management of free institutions requires conciliation; a readiness to compromise; a willingness to concede something to opponents and mutual give and take. • The required spirit of cordiality between the two Houses suffered a dent on some occasions. • First, when Rajya Sabha members were not included in the Public Accounts Committee in 1952. • When the Income Tax (Amendment) Bill, 1953, was introduced in the Rajya Sabha, some members questioned its certification as a Money Bill by the Lok Sabha Speaker. When the controversy was thickening, Prime Minister Nehru intervened, asserting that “For those who are interested in the success of the great experiment in nation building that we have embarked upon, it is a paramount duty to bring about this close cooperation and respect for each other (House).” • Rajya Sabha members objected when the Lok Sabha Speaker referred the Major Port Trust Bill, 1963 to its Select Committee without involving Rajya Sabha members and this Bill was later referred to its own Select Committee again. Need for a second chamber:

• Continuing with some reservations voiced in the Constituent Assembly about having a second chamber, some members of the Lok Sabha moved resolutions as early as in 1954 and again later in 1971, 1972 and 1975 for the dissolution of the Rajya Sabha. But such efforts were thwarted. • As per the constitutional provisions, the Rajya Sabha at best could hold a Money Bill for 14 days during when, it has to return such Bills without or with amendments for the consideration of the Lok Sabha. Increasing disruptions:

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• An analysis by the Secretariat revealed that the productivity of the Rajya Sabha till 1997 has been 100% and above and the past 23 years have thrown up a disturbing trend of rising disruptions. Productivity fell to 87% during 1998- 2004, 76% during 2005-14 and 61% during 2015-19. • While the time spent by the Rajya Sabha on legislation since 1978 remained the same, a concern emerges in respect of the ‘Oversight’ function of the House. • Legislatures ensure accountability of the executive through Questions, Calling Attention Notices, etc. Time share of this important Oversight function of the Council of States in the total functional time of the House during 1978-2004 was 39.50%. This fell to 21.99% during 2005-14 and to 12.34% since 2015. • This decline is primarily on account of disruptions forcing cancellation of Question Hour frequently. Disruptions also dent the quality of law-making as seen in passing of Bills without discussion sometimes. • However, the Rajya Sabha is proving to be more and more a ‘deliberative’ body with increasingly more time being spent on this function. The time share on deliberations under instruments like Short Duration Discussions, Zero Hour, Special Mentions, Discussion on Budgets and working of ministries, Motion of Thanks to President, etc. was 33.54% during 1978-2004. It rose to 41.42 % during 2005-2014 and to a high of 46.59% during 2015-19. Conclusion:

• After the initial frictions, Rajya Sabha and Lok Sabha have proved to be constructive partners in steering the socio-economic transformation of the country since 1952, co-scripting pioneering laws. • This partnership has been guided by the required spirit of cooperation and camaraderie despite divergence in the composition of both the Houses for most part of this journey. What needs to be addressed by all the stakeholders is that while enabling Rajya Sabha to retain its independence, it should not be seen as disruptive as evidenced over the past two decades.

30. Migrant workers to get free foodgrains

Context: Second tranche of the economic stimulus package has been announced by the Finance Minister. Background:

• The first tranche of measures include 3 lakh crore collateral free 4-year tenure loan for micro, small and medium enterprises (MSMEs) with moratorium on

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payment for first 12 months. A loan provision of ₹20,000 crore for stressed MSMEs was also made and a 30,000 crore special liquidity scheme for investment in debt papers of NBFCs were announced, among other schemes. • Also, a relief package of 1.7 lakh crore was announced earlier by the government. Details: Free foodgrains:

• A major focus of the second tranche of the economic stimulus package announced is to provide free foodgrains for the next two months to migrant workers who do not have ration cards. • The move to provide free foodgrains for migrant workers is an extension of the Pradhan Mantri Garib Kalyan Yojana, which provided an additional monthly free rice or wheat allocation to 80 crore people with ration cards covered by the National Food Security Act (NFSA). • Over the past few months, migrant workers and others without ration cards have struggled without access to this free food. The Centre will spend 3,500 crore for this purpose. Extension of credit facilities:

• It also includes an extension of credit facilities for urban housing, street vendors and farmers. • Street vendors who have been hit hard by the lockdown will be given access to easy credit through a 5,000 crore scheme, which will offer ₹10,000 loans for initial working capital. • The Centre plans a drive to enrol 2.5 crore farmers who are not yet part of the Kisan Credit Cards scheme, along with fish workers and livestock farmers, and provide them with ₹2 lakh crore worth of concessional credit. NABARD (National Bank for Agriculture and Rural Development) will also extend additional refinance support worth ₹30,000 crore to rural banks for crop loans. Subvention relief:

• An interest subvention scheme for small businesses has been announced. • Small businesses who have taken loans under the MUDRA-Shishu scheme, meant for loans worth ₹50,000 or less, will receive a 2% interest subvention relief for the next year. • This would cost the government ₹1,500 crore. Creation of affordable rental housing:

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• The Centre will help create affordable rental housing for the urban poor and provide relief worth ₹1,500 crore to small businesses through an interest subvention scheme. • Noting that migrant workers and other urban poor face difficulties in finding affordable housing, the Finance Minister said a scheme to build rental housing complexes through public private partnership mode would be launched under the existing Pradhan Mantri Awas Yojana (PMAY) scheme. • Both public and private agencies will be incentivised to build rental housing on government and private land, while existing government housing will be converted into rental units. The credit linked subsidy scheme for lower middle class housing under PMAY will also be extended by one year to March 2021. • It is hoped that this would also create jobs and stimulate demand for the steel, cement and construction industries. One Nation-One Ration Card:

• It is announced that, by August 2020, the ration card portability scheme will allow 67 crore NFSA beneficiaries in 23 connected States to use their cards at any ration shop anywhere in the country. • This would allow migrant workers to access subsidised food away from their home villages. The scheme would cover all beneficiaries by March 2021. Enrolment under MGNREGA:

• States have been directed to enrol returning workers without livelihood in their villages, under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Criticisms:

• An economist pointed out that the only fiscal outlay in the announcements are the ₹3,500 crore for food grains to migrants and ₹1,500 crore for the MUDRA loanees. So only ₹5,000 crore is actually coming from government coffers, while the rest are credit-based measures. • Terming the government’s approach as stingy and half-hearted, it was noted that at a time when demand is down, any move to provide liquidity are not going to help. • It is believed that putting cash in people’s pockets would have been a better approach. IIM-Ahmedabad professor and economist who had calculated that 10 crore people have been excluded from NFSA coverage due to growth since census 2011, said the new intervention of providing free foodgrains would not even cover that shortfall.

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31. Is the suspension of labour laws a silver bullet?

Some labour laws suspended by the UP government

• The Uttar Pradesh government has issued an ordinance keeping in abeyance almost all labour statutes. • Which includes laws on maternity benefits and gratuity. • The Factories Act, 1948. • The Minimum Wages Act, 1948. • The Industrial Establishments (Standing Orders) Act, 1946. • The Trade Unions Act, 1926. • This will take away the protection conferred on organised labour by Parliament.

Some repressive labour laws in colonial era

• Bengal Regulations VII, 1819 was enacted for the British planters in Assam tea estates. • Workers had to work under a five-year contract and desertion was made punishable. • Later, the Transport of Native Labourers’ Act, 1863 was passed in Bengal. • The Act strengthened control of the employers and even enabled them to detain labourers in the district of employment and imprison them for six months. • Bengal Act VI of 1865 was later passed to deploy Special Emigration Police to prevent labourers from leaving and return them to the plantation after detention.

Workers’ struggle in British India

• The labour laws in India have emerged out of workers’ struggles, which were very much part of the freedom movement against oppressive colonial industrialists. • Since the 1920s there were a series of strikes and agitations for better working conditions. • Several trade unionists were arrested under the Defence of India Rules. • The workers’ demands were supported by our political leaders. • Britain was forced to appoint the Royal Commission on Labour, which gave a report in 1935. • The Government of India Act, 1935 enabled greater representation of Indians in law- making. • This resulted in reforms, which are forerunners to the present labour enactments. • The indentured plantation labour saw relief in the form of the Plantations Labour Act, 1951.

Acts passed in India to protect workers’ rights

• The Factories Act lays down eight-hour work shifts, with overtime wages, weekly offs, leave with wages and measures for health, hygiene and safety.

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• The Industrial Disputes Act provides for workers participation to resolve wage and other disputes through negotiations so that strikes/lockouts, unjust retrenchments and dismissals are avoided. • The Minimum Wages Act ensures wages below which it is not possible to subsist.

Constitutional basis of the labour laws

• These enactments further the Directive Principles of State Policy. • These laws also protect the right to life and the right against exploitation under Articles 21 and 23. • Trade unions have played critical roles in transforming the life of a worker from that of servitude to one of dignity. • In the scheme of socio-economic justice the labour unions cannot be dispensed with.

Is the suspension of labour laws legally sound?

• The Supreme Court, in Glaxo Laboratories v. The Presiding Officer, Labour (1983) said about contract between employer and employee “the contract being not left to be negotiated by two unequal persons but statutorily imposed.” • The ‘two unequal’ here refers to the inequality between employee and employer. • In Life Insurance Corporation v. D. J. Bahadur & Ors (1980), the Supreme Court highlighted that any changes in the conditions of service can be only through a democratic process of negotiations or legislation. • Moreover, Parliament did not delegate to the executive any blanket powers of exemption. • Section 5 of the Factories Act empowers the State governments to exempt only in case of a “public emergency”. • Which is explained as a “grave emergency whereby the security of India or any part of the territory thereof is threatened, whether by war or external aggression or internal disturbance”. • There is no such threat to the security of India now. • Labour is a concurrent subject in the Constitution and most pieces of labour legislation are Central enactments. • The U.P. government by Ordinance has said that labour laws will not apply for the next three years. • How can a State government, in one fell swoop, nullify Central enactments? • The Constitution does not envisage approval by the President of a State Ordinance which makes a whole slew of laws enacted by Parliament inoperable in the absence of corresponding legislations on the same subject. • The orders of the State governments therefore lack statutory support.

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Conclusion Governments have a constitutional duty to ensure just, humane conditions of work and maternity benefits. The health and strength of the workers cannot be abused by force of economic necessity. Labour laws are thus civilisational goals and cannot be trumped on the excuse of a pandemic.

32. NEET is not student-friendly, merit-promoting

Context:

• Recent judgment of the Supreme Court on the National Eligibility-cum- Entrance Test (NEET).

Background:

• NEET was initially struck down as unconstitutional in Christian Medical College, Vellore case (2013) by a 2:1 majority. • In 2016, NEET notifications were incorporated as statutory provisions under the Medical Council of India Act and the Dentists Act.

• In 2016, a review petition was allowed and NEET was made compulsory even prior to a full hearing by the constitution Bench.

Details:

• The Supreme Court in its judgment has held that there is no fundamental right violation in prescribing National Eligibility cum Entrance Test (NEET) for admissions of graduate and post-graduate programs in medical and dental courses across aided and unaided minority professional institutes and has upheld the NEET examination for institutes across the country. • The SC has held that a uniform entrance examination like NEET helps weed out evils from the system and various malpractices which have decayed the educational system.

Concerns:

• The author of the article expresses concerns over the recent judgment and argues that key concerns of NEET have been overlooked by the SC bench.

Disadvantaging students:

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• With NEET and similar other national tests such as the Joint Entrance Examination and Common Law Admission Test, coaching institutes are prospering and gaining undue influence over the coaching industry.

• The large-scale variation in the syllabus and standards of the Central Board of Secondary Education and State boards place at a disadvantage the students coming from state boards.

• The author argues that in the case of multiple tests a student tends to gain due to the following reasons: o If a student falls ill or has not done well in one test, he/she will still have a chance to qualify in another without losing a year. o It gives a student a right to select an institution of his choice.

Element of class:

• Though the SC bench notes that NEET promotes merit, the author argues that true meritocracy requires competition and equality of opportunity. o Since most of the coaching institutes are located in cities, poorer students from a rural background and who have studied in the vernacular medium face a disadvantage. • Empirical research in the United States on standardised common tests has found that these tests are biased against the poorer and underprivileged sections of population, women and minorities. Thus there is an element of class in NEET that the Indian judiciary has so far overlooked.

Minority rights:

• SC has stated that the minority institutions are equally bound to comply with the conditions imposed under the relevant Acts and regulations to enjoy affiliation and recognition. • The author argues that minority rights are not the violation of the equality provision in Article 14 as the Constitution does permit classification. Substantive equality, as opposed to formal equality, mandates differential treatment. • The author argues that the rights of minority institutions are being violated through the regulation measures of the government. • Though minority institutions cannot grant admission based on their whims and fancies, but if such an institution follows an identifiable or reasonable methodology of admitting students, the imposition of NEET with mandatory centralised counselling is indeed an unreasonable restriction on these institutions.

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• Even if one concedes the necessity of NEET, centralised counselling due to which several minority institutions and private medical colleges are unable to fill their seats is indeed an ‘intolerable encroachment’ of the rights of minority institutions. • This leads to the denial of Article 30 rights of minority institutions and Article 19(g) rights of private unaided institutions. The Supreme Court has upheld the importance of Article 30 time and again through its numerous judgments.

Lessens autonomy of institutes:

• The NEET exam is a clear case of centralization in the educational sector.

• The author argues that NEET lessens the autonomy of universities and higher education institutions, particularly private, unaided ones.

Increasing government domination of the educational process:

• The author argues that exclusive control of education by the State may have undesirable impacts on the society. Institutions of higher learning controlled and managed by governmental agencies may promote the political purposes of the State. • The author argues that the trend towards the governmental domination of the educational process must be resisted in the interest of democracy.

Other concerns:

• NEET paper has been leaked twice in the last four years and therefore, there is not much confidence in NEET’s fairness and transparency. • In the 2018 NEET, as many as 49 questions had errors in Tamil translation. • Some argue that common admission tests cannot measure abilities that are essential for learning such as imagination, curiosity and motivation.

33. West Bengal Major Irrigation and Flood Management Project

Why in News

Recently, the Government of India, the Government of West Bengal, the Asian Infrastructure Investment Bank (AIIB) and the World Bank have signed a loan agreement for a project titled ‘West Bengal Major Irrigation and Flood Management Project’.

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▪ The project includes the improvement in irrigation and flood management in the Damodar Valley Command Area (DVCA).

Key Points

▪ West Bengal Major Irrigation and Flood Management Project aims to improve irrigation service delivery, strengthen flood risk management and improve climate change resilience in the project area. ▪ It is intended to benefit about 2.7 million farmers from five districts of West Bengal. ▪ The project comprises four components: o Irrigation Management : It will improve the management of the Damodar Valley Command Area (DVCA) irrigation scheme to improve service delivery, performance monitoring and irrigation efficiency evaluation. o Modernization of Irrigation Infrastructure : It will invest in the modernization of irrigation infrastructure at main, branch, distributary and minor canal levels. o Flood Management : It will invest in structural measures to reduce flooding in the project area. It will also include the implementation of the recommendations of the Dam Safety. o Project Management : It will strengthen the implementation agency’s capacity for project management, including financial management, monitoring and evaluation, and environmental and social safeguards management and communication. It will also support a communication campaign to inform stakeholders on the importance of water use efficiency. ▪ The total value of the project is $413.8 million, co-financed between the International Bank for Reconstruction and Development (IBRD) ($145 million), the Asian Infrastructure Investment Bank ($145 million) and the Government of West Bengal ($123.8 million). o International Bank for Reconstruction and Development (IBRD) is a part of the World Bank Group that provides financial products and policy advice to help countries reduce poverty and extend the benefits of sustainable growth to all of their people.

Background

▪ The Damodar Valley Command Area is in the need of modernization. o The command area is the area around the dam/ project, where the area gets benefits from the dam, such as irrigation water, electricity, etc. It is an area which can be irrigated from a project and is fit for cultivation. o In other words, it is the area around a dam which is under its command as an irrigation source.

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▪ It faces key challenges including degradation of infrastructure, inadequate irrigation management, poor quality of service delivery and inefficient irrigation. ▪ Due to above reasons, the farmers in the area are forced to extract groundwater, which increases the costs of cultivation. ▪ Moreover, the Lower Damodar basin area is historically flood-prone. As this area lacks the infrastructure to protect against recurrent flooding, on average, 33,500 hectares of the cropped area and 461,000 people are affected annually due to recurrent flooding in the area.

Damodar River

▪ The Damodar river rises in the Palamu hills of the Chota Nagpur plateau in the state of Jharkhand. ▪ It passes through two Indian states namely, Jharkhand and West Bengal. o The Damodar occupies the eastern margins of the Chotanagpur Plateau where it flows through a rift valley and finally joins the Hugli. o The Barakar river is its main tributary. ▪ Due to the devastating floods caused by the Damodar river and its tributaries in the plains of West Bengal, it is also known as the ‘sorrow of Bengal’.

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Damodar Valley Corporation

▪ The Damodar Valley Corporation was established in 1948 as the first multipurpose river valley project of independent India. ▪ Under this project, four dams were constructed namely, o Tilaiya Dam: It has been constructed across the Barakar river at Tilaiya in Koderma district of Jharkhand. o Konar Dam: The Konar dam has been constructed across the Konar river—a tributary of the Damodar River in the Hazaribagh District of Jharkhand. o Maithon Dam :It has been constructed across the Barakar river near the confluence of Barakar with Damodar river. o Panchet Dam: The Panchet dam has been constructed across the Damodar river, about 20 km south of the Maithon Dam.

34. Where is health in the stimulus package? Context:

• Atmanirbhar Bharat Abhiyan stimulus package. Details:

• The package of 20-lakh crore rupees announced by the Prime Minister focuses on reviving economic activities, restoring livelihoods, addressing concerns of hunger and starvation, stimulating small and medium enterprises, and enhancing farm incomes. The health sector has not received much attention. Concerns: Poor state of healthcare facilities:

• The healthcare delivery system in most States is extremely fragile given the poor state of primary healthcare facilities. • The public provisioning of healthcare has been found to be insufficient, of poor quality and having limited reach. Poor resource allotment to health sector:

• The public spending on health has been consistently low at around 1.15% of GDP for well over a decade. Opportunity cost of COVID-19 pandemic:

• It is possible that resources allocated for other health programmes are being diverted to deal with the COVID-19 pandemic. The opportunity cost of such diversion of funds could be high.

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• People’s access to routine maternal and child health as well as family planning services in parts of the country has been negatively impacted. Progress made with respect to various diseases could witness setbacks. Limitations of private sector:

• India’s private sector in health is sizable. • The private sector accounts for 93% of all hospitals, 64% of all hospital beds, and 80-85% of all doctors. Most private healthcare providers seem to be incapable of and unwilling to help even during a national crisis. • Rapidly declining revenues and sharply eroding profits are leading to the closure of many private hospitals. • Only a few private providers have come forward to extend support to the government. Way forward: Strengthening public health:

• The COVID-19 pandemic experience has brought out the critical importance of the public sector in health provisioning. • There is a need to invest in universal health coverage (UHC) by reversing the financial neglect of public healthcare. Nearly every country in the world that has achieved anything like UHC has done it through the public assurance of primary healthcare. Increasing investments in health:

• There is a need to urgently and immediately step up investments in health. • A new ‘health investment plan’ (as part of the stimulus package), at least 1% of the GDP, out of the stimulus package should be earmarked for improving the country’s health infrastructure and strengthening public health service delivery. Prioritizing primary healthcare:

• Up to 70% of the additional expenditures should be ring-fenced for primary healthcare and further strengthening health and wellness centres, primary health centres and community health centres. This would enable the State governments to be better prepared to face a second round of the pandemic. Conclusion:

• Investing in health, apart from improving people’s well-being, is also essential for accelerating and sustaining India’s economic growth.

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35.Economic Stimulus-IV Why in News Recently, the Union Finance Minister announced the fourth tranche of Atmanirbhar Bharat Abhiyan targeted towards fast track investments in the eight sectors.

▪ The fourth tranche focuses on eight sectors namely, coal, minerals, defence production, civil aviation, power distribution, social infrastructure, space and atomic energy. ▪ The announced measures also form a part of the Rs. 20 lakh crore economic stimulus package to deal with the Covid-19 pandemic. ▪ The government has already announced the Economic Stimulus-I, the Economic Stimulus-II and the Economic Stimulus-III. Basis of Policy Reforms for Fast-track Investments

▪ Fast tracking of investment clearance through the Empowered Group of Secretaries. ▪ Establishment of Project Development Cell in each Ministry to prepare a list of investable projects and also to coordinate with investors and Central/State Governments. ▪ Ranking of States on investment attractiveness to compete for new investment. ▪ Incentive schemes for promotion of new champion sectors such as solar PhotoVoltaic (PV) manufacturing; advanced cell battery storage etc.

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Key Points

▪ Coal Sector:

o Commercial Mining:

• The introduction of commercial mining will remove the government monopoly in coal mining. India has the third-largest coal availability within its untapped mines and yet India still imports coal. • Commercial mining will be introduced on the basis of a revenue-sharing mechanism. The government will receive a share of the gross revenue from the sale of coal but will not be involved with the cost incurred. o Coal Gasification/Liquefaction:

• It will be incentivised through rebate (partial refund) in revenue share to lower the environmental impact. It is also expected to assist India in switching to a gas-based economy.

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o Infrastructure Investment:

• The infrastructure development worth of Rs. 50,000 crores will be done to achieve the Coal India Limited’s (CIL) target of 1 billion tons coal production by 2023-24 plus coal production from private blocks. o Coal Bed Methane (CBM) Extraction :

• These extraction rights to be auctioned from Coal India Limited’s (CIL) coal mines. o Mining Plan Simplification:

• Ease of Doing Business measures, such as Mining Plan simplification, will be considered. It is expected to increase annual production by 40%. ▪ Mineral Sector:

o Exploration-cum-Mining-cum-Production Regime:

• 500 mining blocks would be offered through an open and transparent auction process under this composite regime. o Joint Auction of Bauxite and Coal Mineral Blocks:

• It aims to enhance the aluminium industry’s competitiveness by reducing the cost of electricity generation. o Captive and Non-captive Mines:

• The government has decided to remove the distinction between captive and non- captive mines to allow the transfer of mining leases and the sale of surplus unused minerals, leading to better efficiency in mining and production. • The captive mines are that produce minerals for use by the same company. ▪ Defence Sector:

o Revision of FDI Limit:

• The FDI limit in defence manufacturing under automatic route will be raised from 49% to 74%. o Project Management Unit:

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• The government is expected to begin time-bound defence procurement and faster decision making by setting up a Project Management Unit (PMU) to support contract management. o Reduction in Defence Import Bill:

• The government will notify a list of weapons/platforms banned for imports and thus such items can only be purchased from India. ▪ Civil Aviation:

o Efficient Airspace Management:

• The restrictions on the utilisation of Indian airspace will be eased so that the flying of civilian aircraft becomes more efficient. Such utilisation is expected to bring in benefits of nearly Rs 1,000 crore per year. • It will also lead to optimal utilization of airspace, reduction in fuel use, time and will have positive environmental impact. • Currently, only 60% of India’s airspace is freely available and thus airplanes have been flying to most destinations through longer routes hence more fuel is used in the process and the customers end up paying more. o Airports Development through PPP :

• In addition to the existing ones,six more airports will be auctioned under the Public-Private-Partnership (PPP) model for its development. o India- a global hub for Aircraft Maintenance, Repair and Overhaul (MRO):

• The aircraft component repairs and airframe maintenance is intended to increase from Rs 800 crore to Rs 2,000 crore in three years. • The convergence between the Defence sector and the civil MROs will be established to bring down the maintenance cost of airlines. ▪ Power Distribution Sector:

o Tariff Policy Reforms:

• The tariff policy reforms will be announced in the future. The reforms are expected to focus on the consumer rights, promotion of industry and sustainability of the sector. o Privatization of Distribution in UTs :

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• The power departments/utilities in Union Territories will be privatised. • It is expected to improve the operational and financial efficiency in Distribution. ▪ Social Infrastructure Projects:

o Investments through Viability Gap Funding:

• The government is expected to invest Rs 8,100 crores through Viability Gap Funding (VGF). • Currently, most of the projects are supported by centre/states/statutory bodies with 20% as VGF. But the Centre will be increasing its share in VGF to 30% in the future. • The above benefits will be provided if the projects will be proposed by Central Ministries/ State Government/ Statutory entities. • Viability Gap Funding (VGF) signifies a grant, one-time or deferred, provided to support infrastructure projects that are economically justified but fall short of financial viability. The lack of financial viability usually arises from long gestation periods and the inability to increase user charges to commercial levels. ▪ Space Sector:

o Participation of the Private Sector:

• The government will be providing a level playing field for private companies in satellites, planetary exploration, outer space travel, launches and space-based services. • Such private players will also be allowed to use ISRO’s facilities and other relevant assets to improve their capabilities. o Liberal Geo-spatial Data Policy:

• There will also be a liberal geo-spatial data policy for providing remote-sensing data to tech-entrepreneurs. ▪ Atomic Energy:

o Research Reactor in PPP Mode:

• It will help to produce medical isotopes for affordable treatment of cancer and other diseases.

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• It will also generate facilities to use irradiation technology for food preservation. This will complement agricultural reforms and assist farmers. o Technology Development cum Incubation Centres :

• These centres will be set up to act as a link between India’s robust start-up ecosystem to the nuclear sector. Criticism ▪ It is considered to be less of a stimulus and more of industrial reforms, which could have been announced at any time. ▪ It has been also observed that the only direct budgetary cost in this tranche was the Rs. 8,100 crore to be provided as a raised 30% viability gap funding to boost private investment in social sector infrastructure. ▪ The fourth tranche covered sectors of strategic importance but these policies will be rolled out over a 3-6 month period, and any implication for supporting or reviving the economy as it comes out of lockdown is missing.

36. Economic Stimulus-V Why in News Recently, the Union Finance Minister announced the measures for providing employment and support to businesses, state governments as well sectors such as education and health as part of the fifth and final tranche of Atmanirbhar Bharat Abhiyan.

▪ The announced measures also form a part of the Rs. 20 lakh crore economic stimulus package to deal with the Covid-19 pandemic. ▪ Earlier, the Economic Stimulus-I, the Economic Stimulus-II, the Economic Stimulus- III and the Economic Stimulus-IV were announced.

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Key Points

▪ Increase in Allocation for MGNREGA

o The Government will allocate an additional Rs.40,000 crore under Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA).

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o It will help generate nearly 300 crore person days in total, addressing the need for more work by the migrants who are returning to their hometowns due to the pandemic and lockdown. o Creation of a larger number of durable and livelihood assets including water conservation assets which will boost the rural economy through higher production. ▪ Health Reforms and Initiatives

o Public expenditure on health will be increased by investing in grass root health institutions and ramping up health and wellness centres in rural and urban areas. o Preparing India for future pandemics:

• Setting up of Infectious Diseases Hospital Blocks in all districts. • Strengthening of lab networks and surveillance (Integrated Public Health Labs in all districts and blocks) • The National Institutional Platform for One Health by Indian Council of Medical Research (ICMR) will encourage research. • Implementation of National Digital Health Blueprint under the National Digital Health Mission (NDHM).

• NDHM was recommended to be established as a purely government organization with complete functional autonomy on the lines of Unique Identification Authority of India (UIDAI) and Goods and Services Network GSTN. ▪ Technology Driven Education with Equity

o Government will launch PM eVIDYA, a programme for multi-mode access to digital/online education with immediate effect. It consists of:

• DIKSHA for school education in States/UTs: e-content and QR coded Energized Textbooks for all grades (one nation, one digital platform) • One earmarked TV channel per class from 1 to 12 (One class, One channel) • Extensive use of Radio, Community radio and Podcasts. • Special e-content for visually and hearing impaired. • Top 100 universities will be permitted to automatically start online courses by 30th May, 2020. o Manodarpan, an initiative for psycho-social support for students, teachers and families for mental health and emotional well-being will be launched.

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o New National Curriculum and Pedagogical framework for school, early childhood and teachers will be launched. o National Foundational Literacy and Numeracy Mission for ensuring that every child attains learning levels and outcomes in grade 5 by 2025 will be launched by December 2020. ▪ Measures Related to IBC

o Minimum threshold to initiate insolvency proceedings has been raised to Rs.1 crore (from Rs.1 lakh, which largely insulates Micro, Small and Medium Enterprises-MSMEs). o Special insolvency resolution framework for MSMEs under Section 240A of the Insolvency and Bankruptcy Code (IBC) will be notified. o Suspension of fresh initiation of insolvency proceedings up to one year, depending upon the pandemic. o Empowering the Central Government to exclude Covid-19 related debt from the definition of “default” under the IBC for the purpose of triggering insolvency proceedings. ▪ Measures Related to the Companies Act

o Decriminalisation of Companies Act, 2013 violations involving minor technical and procedural defaults (shortcomings in Corporate Social Responsibility (CSR) reporting, inadequacies in Board report, filing defaults, etc). o Majority of the compoundable offences sections to be shifted to Internal Adjudication Mechanism (IAM). o The amendments will de-clog the criminal courts and National Company Law Tribunal (NCLT). ▪ Ease of Doing Business for Corporates

o Key reforms include:

• Direct listing of securities by Indian public companies in permissible foreign jurisdictions. • Private companies which list Non-Convertible Debentures (NCDs) on stock exchanges not to be regarded as listed companies. • Including the provisions of Part IXA (Producer Companies) of Companies Act, 1956 in Companies Act, 2013. • Power to create additional/specialized benches for National Company Law Appellate Tribunal (NCLAT).

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• Lower penalties for all defaults for Small Companies, One-person Companies, Producer Companies and StartUps. ▪ Public Sector Enterprise Policy for a New, Self-reliant India

o Government will announce a new policy whereby:

• List of strategic sectors requiring the presence of Public Sector Enterprises (PSEs) in public interest will be notified. • In strategic sectors, at least one enterprise will remain in the public sector but private sector will also be allowed. • In other sectors, PSEs will be privatized (timing to be based on feasibility etc.). ▪ Support to State Governments

o The Centre has decided to increase borrowing limits of States from 3% to 5% for 2020-21 only which will give States extra resources of Rs.4.28 lakh crore. o Part of the borrowing will be linked to specific reforms (including recommendations of the Finance Commission). o Reform linkage will be in four areas:

• Universalisation of ‘One Nation One Ration card’. • Ease of Doing Business. • Power distribution. • Urban Local Body revenues. o States can borrow more in the following pattern, notified by the Department of Expenditure:

• The first 0.5% will be an unconditional increase. • Next 1% in 4 tranches of 0.25%, with each tranche linked to clearly specified, measurable and feasible reform actions. • The last 0.50% if milestones are achieved in at least three out of four reform areas. Analysis ▪ On Increase in Allocation for MGNREGA

o The step to allocate more resources to MGNREGA was widely welcomed as it will support rural livelihoods in the time of crisis.

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o However, given that States account for 40% of MGNREGA expenditure, including most upfront costs, they will also have to spend on the scheme. o Demand for work under MGNREGA had surged to a nine-year high in 2019-20 as 5.47 crore households availed of the scheme, the highest since 2010-11. ▪ On Support to State Governments

o The expansion of the fiscal deficit has been welcomed by the states because GSDPs (Gross State Domestic Product) are likely to contract and further shrink the possible borrowing at a time when States are at the frontline of containment and relief operations. o However, the conditions on additional loans have been criticised on the grounds that in future, severe conditions may be imposed on even normal loans. o The utilisation of additional 2% borrowing by states can be lower because states may settle on borrowing less to avoid undertaking politically difficult reforms. o A likely increase in borrowing cost due to the emerging gap between total Public Sector Borrowing Requirement (PSBR) and available resources will also lead to states not opting for the increased borrowing. ▪ On Public Sector Enterprise Policy

o It was criticised on the grounds that privatising PSUs would find fewer buyers at a time of global recession, while any potential buyer would be spending money which could have gone into fresh investment on a financial transfer instead, effectively contracting demand. 37. Ashwagandha and Anti-Covid-19 Drug

Why in News Recently, researchers of IIT-Delhi in collaboration with Japan’s National Institute of Advanced Industrial Science and Technology (AIST) have found that the ayurvedic herb Ashwagandha has “therapeutic and preventive value” against Covid- 19 infection.

Key Points

▪ The publication of the coronavirus genome and structure have triggered drug designing, devising and development using informatics and experimental tools across the world. ▪ Researchers from IIT-Delhi and AIST have used Ashwagandha and propolis based compounds to target the main coronavirus’s enzyme, known as the Main protease or

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Mpro.

o Mpro plays a key role in mediating viral replication. o Enzymes are biological molecules (typically proteins) that regulate the rate of virtually all of the chemical reactions that take place within living organisms. E.g digestion. o Replication is the process by which a DNA molecule is copied to produce two identical DNA molecules.

• In replication whenever a cell divides, the two new daughter cells contain the same genetic information, or DNA, as the parent cell. ▪ The researchers have found that Withanone (Wi-N), a natural compound derived from Ashwagandha and Caffeic Acid Phenethyl Ester (CAPE), an active ingredient of New Zealand propolis, have the potential to interact with and block the activity of Mpro. ▪ Recently, the Indian government has also set up a task force to launch its clinical research studies on some Ayurvedic medicines that can be used to boost the immune system and control coronavirus. ▪ The government has also launched the ‘AYUSH Sanjivani’ App. ▪ The app intends to generate data on usage of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, Sowa-rigpa and Homoeopathy) advocacies and measures among the population and its impact in prevention of Covid-19. Ashwagandha

▪ Ashwagandha (scientific name- Withania somnifera) is a medicinal herb. It is reputed as an immunity enhancer. ▪ It is classified as an adaptogen, which means that it can help the body to manage stress. ▪ Ashwagandha also boosts brain function and lowers blood sugar, and helps fight symptoms of anxiety and depression. ▪ Ashwagandha has shown clinical success in treating both acute and chronic rheumatoid arthritis.

o Rheumatoid arthritis (RA) is an autoimmune disease that can cause joint pain and damage throughout your body. o An autoimmune disease is a condition in which your immune system mistakenly attacks your body. Propolis

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▪ Propolis or bee glue is a resinous mixture (a sticky chemical compound) that honey bees produce by mixing saliva and beeswax with gums gathered from tree buds, sap flows, or other botanical sources. ▪ Propolis is used against infections caused by bacteria, viruses, fungus etc. ▪ It is used for boosting the immune system and for treating gastrointestinal problems.

38. Working safely

Context

• India has entered the fourth phase of its lockdown, which will continue till May 31. • The Ministry of Health and Family Welfare has issued guidelines on preventive measures that need to be followed in workplaces to contain the spread of COVID-19. Basic preventive measures These measures need to be followed by employees and visitors at all times.

• Physical distancing of at least one metre to be followed at all times. • Use of face covers/masks to be mandatory. • Practice frequent hand washing and use of alcohol-based hand sanitizers. • Respiratory etiquettes to be strictly followed. This involves the strict practice of covering one’s mouth and nose while coughing/sneezing with a tissue/handkerchief/flexed elbow and disposing of used tissues properly. • Self-monitoring of health by all and reporting any illness at the earliest. Preventive measures for offices

• Employees who feel ill or are suffering from flu-like illness are advised to not attend office and seek medical advice from local health authorities. • Further, “Any staff requesting home quarantine based on the containment zone activities in their residential areas should be permitted to work from home.” What happens when someone in the office tests positive? In case one or a few persons who share a room or a closed space are found to be suffering from symptoms suggestive of COVID-19, the following measures are recommended:

• Place the ill person in a room or area where they are isolated from others at the workplace. Provide a mask/face cover till such time he/she is examined by a doctor. • Report to concerned central/state health authorities.

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• A risk assessment will be undertaken by the designated public health authority (district RRT/treating physician) and accordingly further advice shall be made regarding the management of a case, his/her contacts and need for disinfection. • The suspect case if reporting very mild/mild symptoms on an assessment by the health authorities would be placed under home isolation, subject to the fulfilment of certain criteria. • Suspect case, if assessed by health authorities as moderate to severe, he/she will follow guidelines released by the Ministry on the appropriate management of suspected and confirmed COVID-19 cases. The rapid response team of the concerned district shall be requisitioned and will undertake the listing of contacts. The necessary actions for contact tracing and disinfection of workplace will start once the report of the patient is received as positive. The report will be expedited for this purpose. Closure of workplace

• If there are one or two cases reported, the disinfection procedure will be limited to places/areas visited by the patient in the past 48 hrs. • There is no need to close the entire office building/halt work in other areas of the office and work can be resumed after disinfection as per laid down protocol. However, if there is a larger outbreak, the entire building will have to be closed for 48 hours after thorough disinfection. All the staff will work from home, till the building is adequately disinfected and is declared fit for re-occupation. Working from home as a viable alternative The National Directives for COVID-19 Management said the practice of work from home should be followed to the extent possible and staggered work hours should be adopted in respect of all offices and other establishments.

1. Institutional Challenges

• Most organisations do not have well documented policies and guidelines to support extended work from home arrangements at scale. • An employer has to compute the wage of an employee based on the days and hours of work and maintain statutory registers as evidence. • Overtime work hours have different slabs and statutory payment requirements. In a remote work arrangement, organisations will need to manage these records such that they are admissible by the Labour Department.

2. Measuring Productivity

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• Employees working for the company might not have adequate power back up and reliable high-speed internet. • Most of them confuse work from home with a facility to lounge around. • There are not enough tools available to measure their availability and engagement from the remote work location. Conclusion

• There may still be occasion to resort to intermittent lockdowns if opening up leads to mounting cases. • A prudent course would be to navigate the present with a minimalist approach, as the quest for a medical breakthrough makes progress.

39. Keeping the peace Context

• Incidents of face-off occurred between Indian and Chinese troops, resulting in injuries to several soldiers on both sides. What are the various sectors on the India-China border? India-China border is divided into three sectors:

• The Line of Actual Control (LAC) in the western sector falls in the union territory of Ladakh and is 1597 km long, • The middle sector of 545 km length falls in Uttarakhand and Himachal Pradesh, and • The eastern sector falls in the states of Sikkim and Arunachal Pradesh. It is 1346 km long. • The middle sector is the least disputed sector, while the western sector witnesses the highest transgressions between the two sides. What exactly is a Chinese transgression?

• A Chinese transgression across the border is recorded once the Indian border guarding forces in an area – either the Army or the ITBP – are “reasonably certain” that Chinese soldiers had crossed over to the Indian side of the LAC. • A Chinese transgression – in air, land or the waters of Pangong Tso lake – can be recorded, officials said, if it is visually observed by border posts, through use of surveillance equipment, in face-offs by patrols, indicated reliably by locals, or based on evidence left by the Chinese in the form of wrappers, biscuit packets, etc. to show their presence in an unmanned area. Key Stats

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• Nearly three-quarters of the transgressions, data since 2015 show, have taken place in the western sector of the LAC, which falls in Ladakh. • The eastern sector, which falls in Arunachal Pradesh and Sikkim, witnessed almost one-fifth of the Chinese transgressions. • The highest number of aerial transgressions by China, according to official data, also took place in 2019 — there were 108 instances, up from 78 in 2018 and 47 in 2017. • Overall, there were 663 recorded Chinese transgressions in 2019, up from 404 in 2018. This included a 75 per cent spike in the western sector and a 55 per cent rise in the eastern sector. Do the higher number of Chinese transgressions matter?

• A higher number indicates that the Chinese soldiers are coming to the Indian side more often, and their movements are being observed and recorded by the Indian soldiers. • This can be seen as an indicator of increased Chinese assertiveness, but as long as there are no major incidents, it means that the established border mechanisms between the two sides are working. Why Face-off?

• Both countries have differing perceptions owing to the undemarcated boundary, which lead to transgressions and face-offs as each side patrols up to the areas they claim along the 3,448-km Line of Actual Control (LAC). • The stand-off in Ladakh appears to have been triggered by China moving in troops to obstruct road construction activity by India. India upgrades the infrastructure

• At Muguthang, the road on the Chinese side is motorable, and on the Indian side, it is a remote area. Due to this, they can bring in a large number of troops if needed. • But in 2019, India completed the Darbuk-Shyok-Daulet Beg Oldi (DSDBO) road which connects Leh to the Karakoram Pass. India also maintains a key landing strip at DBO at 16,000 feet. • The broader context for the tensions is the changing dynamic along the LAC. India has been upgrading its roads as it plays catch-up with China, already enjoying an advantage in both terrain and infrastructure. China now seems to be telling India it has no right to carry out the kind of activity that Beijing has already done. • India is well within its rights to carry out construction work. Delhi needs to remind Beijing that a fundamental principle that underpins all previous agreements is recognising the right to mutual and equal security of the two sides.

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Location of the stand-off

• The Galwan River Valley is located in north-eastern Ladakh, east of the Aksai Chin plateau illegally occupied by China. Basic Framework for dealing with such issues

• “Agreement on the Maintenance of Peace and Tranquility along the Line of Actual Control in the India-China Border Areas” was initiated in 1993. • The two sides agreed to “peaceful and friendly consultations” to resolve the boundary dispute and disclaimed the threat of force as a legitimate bargaining tool. • Further, until such an agreement could be reached, the sanctity of the LAC was to be maintained. • Any “contingencies or other problems arising in the areas” were to be dealt with “through meetings and friendly consultations between border personnel of the two countries.” • An informal summit took place in Wuhan between Prime Minister Narendra Modi and Chinese President Xi Jinping in 2018, the year after the Doklam stand- off. Both countries declared they “respect each other’s sensitivities, concerns and aspirations” and reiterated their commitment to the terms of the 1993 Agreement. Way Forward

• The immediate priority is for both sides to use existing channels and step back. Flag meetings between brigade commanders have so far been unable to break the stalemate. The incidents have underlined how the new LAC situation is placing existing mechanisms under renewed stress. • Focus should also be on military-to-military communication, which would “allow the two sides to immediately clarify any relevant issues at a more senior directive level.” India and China should grasp the current situation as an opportunity to revive the stalled process of clarifying the LAC. China has resisted this as a distraction to the boundary negotiations. But rather than agree on a line, both can instead simply seek to better understand the claims of the other and reach a common understanding to regulate activity in these areas. Clarifying the LAC may even provide a fresh impetus to the stalled boundary talks between the Special Representatives. Beyond the posturing, both sides know a final settlement will ultimately have to use the LAC as a basis, with only minor adjustments. Conclusion

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• Only a settlement will end the shadow boxing on the LAC. With both countries in the midst of an unprecedented global pandemic, the time to push for a settlement to a distracting, protracted dispute is now. Operation Juniper

• In 2017, the Indian Army executed “Operation Juniper” and positioned armed troops in the Doklam area of Bhutan. • This mobilization was intended to deter a team of Chinese People’s Liberation Army (PLA) soldiers from constructing a road that would have given the Chinese access to Indian Territory. • The road would have circumvented Indian posts in Dokala, and provided the Chinese access to Jampheri Ridge and a clear line of sight to the narrow Siliguri Corridor. Commitment Problem In terms of their border dispute, India and China are struggling with what game theorists refer to as a “commitment problem.” Meaning

• A commitment problem arises when two states, who would be better off in the present if they consented to a mutually beneficial agreement, are unable to resolve their disputes due to different expectations of future strengths, and a consequent inability to commit to future bargaining power or a division of benefits. In Simple terms

• If “rising” India assumes that its material power and leverage vis-à-vis China is likely to improve over time, it has no incentive to accept China’s “benign hegemony” and to accept a negotiated settlement at a time when it cannot realize the advantages of this increased leverage. • This is also true in China’s case, as it too expects to increase its material strength and cement its superpower status in the coming decades. This could create a reasonable expectation of being able to exact greater concessions from India in the future. • A status quo agreement thus, that seeks to formalize the existing LAC becomes difficult to accept.

40.Covid-19 Halts Global Vaccination Programme Why in News As per the report released by the World Health Organisation (WHO) and partners, nearly 80 million children under the age of 1 are at risk of contracting deadly but vaccine preventable diseases such as measles, polio and diphtheria.

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▪ This is so because many countries have postponed their vaccine campaigns due to Covid-19. ▪ The report has come ahead of the Global Vaccine Summit on 4th June, at which world leaders are expected to come together to help maintain immunization programmes and mitigate the impact of the pandemic in lower-income countries.

o The Summit will provide an opportunity for the international community to pledge its support for Gavi’s five-year strategy (2021-2025) which is aimed at immunizing 300 million children and saving up to 8 million lives. ▪ The United Nations Children's Fund (UNICEF), the Sabin Vaccine Institute (Washington, USA), and Global Alliance for Vaccines and Immunizations (Gavi), are the partner organisations. Key Points ▪ Data:

o More than half (53%) of the 129 countries where data were available reported moderate-to-severe disruptions, or a total suspension of vaccination services during March-April 2020. ▪ Reasons for the disruption:

o Vaccination, which is typically done in mass campaigns, has been stopped due to fear of breaking social distancing guidelines needed to stop the spread of Covid- 19. o Health workers who provide vaccinations have also been diverted to help with the response to the pandemic. o Also, there has been a significant delay in planned vaccine deliveries due to lockdown measures and reduction in the number of available flights.

• More than 40 of Africa's 54 nations have closed their borders, though some allow cargo and emergency transport. ▪ Concerns:

o Disruption to immunization programs from the Covid-19 pandemic threatens to undo decades of progress against vaccine-preventable diseases like Measles, Polio and Diphtheria. o According to the experts, children need routine immunizations before the age of 2. Immunization

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▪ It is the process whereby a person is made immune or resistant to an infectious disease, typically by the administration of a vaccine. ▪ Functioning:

o A vaccine usually consists of two parts and is usually given through an injection. The first part is the antigen, which is a piece of disease one’s body must learn to recognise. The second part is the adjuvant, which sends a danger signal to the body and helps the immune system to respond strongly against the antigen. o In simple terms, vaccines work by exposing a person to a safer version of a disease. While the body responds to the vaccine, it builds an adaptive immune system, which helps the body to fight off the actual infection in the future. ▪ According to the WHO, vaccination prevents between two-three million deaths each year, a figure that will rise by another 1.5 million if vaccine coverage improves. Way Forward ▪ There is an urgent need to focus upon the Global Vaccine Action Plan 2011-2020 that is a framework to prevent millions of deaths by 2020 through more equitable access to existing vaccines for people in all communities. ▪ It is equally important for the countries to give importance to the United Nations Sustainable Development Goal 3 i.e. Good Health and Well being. ▪ There is a need for an immediate action plan to restart the vaccination programmes through better health infrastructure and medical equipment during the corona crisis. ▪ Countries should start efforts at individual level e.g. India can expedite the vaccination programmes under the Mission Indardhanush.

41. What explains the India China border flare up?

Context:

• Rising tensions on the India-China border. Background:

• Border skirmishes have been reported in at least four different locations along the Line of Actual Control (LAC). • Pangong lake in Ladakh, Naku La in Sikkim, the Galwan valley in Ladakh and in Demchok. Causes of the stand-off: Non-delineated borders:

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• The Line of Actual Control (LAC) has never been demarcated. • Differing perceptions of the border, particularly acute in certain spots across the Western (Ladakh), Middle (Himachal Pradesh and Uttarakhand), and Eastern (Sikkim and Arunachal Pradesh) sectors of the India-China border lead to face- off and stand-off situations. • Though the boundary in the Sikkim sector is broadly agreed upon, that too has not been delineated. India’s moves to strengthen infrastructure:

• China, along the LAC, has enjoyed an advantage in infrastructure as well as terrain that is more favourable to mobilisation of troops and resources. • The broader context for the tensions appears to be a changing dynamic along the LAC, wherein India seems to be catching up with China by improving its border infrastructure. Increasing assertiveness of China:

• The latest skirmishes at the Galwan Valley and Sikkim are somewhat unexpected as the contours of the LAC are broadly agreed to in these sectors. • The Galwan Valley incident was triggered by China moving in troops and equipment to stop construction activity by India. India is claiming that the construction activity was well within India’s side of the LAC. Boundary negotiations:

• A three-stage boundary negotiation was proposed between India and China. • Agreement on political parameters and guiding principles • Evolving a framework to resolve the dispute • Delineating and demarcating of the boundary In 2005, the agreement on political parameters and guiding principles was completed. The current and most difficult stage involves agreeing to a framework to resolve the dispute in all sectors. The 22nd round of talks between the Special Representatives was held in Delhi in December 2019. • Both sides noted that an early settlement of the boundary question serves the fundamental interests of both countries and resolved to intensify their efforts to achieve a fair, reasonable and mutually acceptable solution. Concerns: Failed negotiations:

• India has long proposed an exercise to clarify differing perceptions of the LAC to prevent border stand-offs. India has argued that such an exercise could help both countries understand the claims of the other, paving the way to regulate

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activities in contested areas until a final settlement of the boundary dispute is arrived at. • Maps were exchanged in the Middle Sector, but the exercise fell through in the Western Sector where divergence is the greatest. China has since rejected this exercise, viewing it as adding another complication to the on-going boundary negotiations. Prospects of a settlement:

• The prospects of a settlement appear bleak given the fact that there are major differences in the Western and Eastern sectors. • India claims around 38,000 sq km in Aksai Chin. While in the east, China claims as much as 90,000 sq km, extending all across Arunachal Pradesh. One particular sticking point is China’s claims to Tawang in Arunachal Pradesh. • Neither side will be willing to part with territory already held by them. Strategic move by China:

• The broader issue appears to be a fundamental difference in how the two countries view the boundary question. • China appears to view an unsettled border as holding some leverage with India, one of the many pressure points it could use to keep India off-guard. The unrealistic claims of China to Tawang indicate this tendency. • Given this strategic calculus of using border disputes by China, the stalemate over boundary delineation will likely endure. Way forward:

• Protocols agreed to in 2005 and 2013, detailing the rules of engagement to prevent border incidents, must be adhered to. • There is a need to follow the principles agreed to in the previous agreements between the two countries which call for “mutual and equal security” in border negotiations. • The most realistic solution will involve only minor adjustments along the LAC.

42. Grand Ethiopian Renaissance Dam on Nile and Various Issues

Africa’s longest river, the Nile, has been at the centre of a decade-long complex dispute involving several countries in the continent who are dependent on the river’s waters. At the forefront of this dispute, however, are Ethiopia and Egypt.

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Grand Ethiopian Rennaissance Dam (GERD)

• GERD is a gravity dam on the Blue Nile River in Ethiopia that has been under construction since 2011. • At 6.45 gigawatts, the dam will be the largest hydroelectric power plant in Africa when completed, as well as the seventh-largest in the world. • Once completed, the reservoir could take anywhere between 5 and 15 years to fill with water, depending on hydrologic conditions during the filling period and agreements reached between Ethiopia, Sudan, and Egypt.

Issues with the Dam

• While the main waterways of the Nile run through Uganda, South Sudan, Sudan and Egypt, its drainage basin runs through other countries in East Africa, including Ethiopia. • Egypt has objected to the construction of this dam and in Sudan has found itself caught in the midst of this conflict. • Due to the importance of the Nile as a necessary water source in the region, observers are concerned that this dispute may evolve into a full-fledged conflict between the two nations. • The US has stepped in to mediate.

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How can this lead to conflict?

• The mega project may just allow the country to control the river’s waters, and this is essentially what concerns Egypt because it lies downstream. • Egypt has objected to these plans and has proposed a longer timeline for the project because it does not want the water level of the Nile to dramatically drop as the reservoir fills with water in the initial stages. • For the past four years, triparty talks between Egypt, Ethiopia and Sudan have been unable to reach agreements. Egypt isn’t alone in its concerns. • Sudan is hardly a passive observer caught in the conflict just because of its location. • It too believes Ethiopia having control over the river through the dam may affect its own water supplies.

Why does Ethiopia want this dam?

• Ethiopia believes this dam will generate approximately 6,000 megawatts of electricity when it is done. • 65% of Ethiopia’s population suffers due to lack of access to electricity. • This dam will reduce those shortages and help the country’s manufacturing industry. • The country may also be able to supply electricity to neighbouring nations and earn some revenue in exchange. • Neighbouring countries like Kenya, Sudan, Eritrea and South Sudan also suffer from electricity shortages. • If Ethiopia sells electricity to these nations, they may also reap benefits.

What is happening now?

• In the latest developments on this front, Egypt announced that it is willing to resume negotiations with Ethiopia and Sudan concerning the dam. • Ethiopia has however proceeded with the first stage of filling the dam saying that it does not need Egypt’s permission to fill the dam. • In the letter to the UNSC, Egypt also implied that the dam would cause armed conflict between the two countries.

43. Importance of the Pangong Tso Lake

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(Note: No higher resolution is available for the image)

The recent incidents at the Pangong Tso lake area between Indian and Chinese soldiers on the LAC involve a picturesque lake, mountains, helicopters, fighter jets, boats, eyeball-to-eyeball confrontation, fisticuffs and injuries.

The Pangong Tso Lake

• Pangong Tso Lake in eastern Ladakh has often been in the news, most famously during the Doklam standoff, when a video of the scuffle between Indian and Chinese soldiers. • In the Ladakhi language, Pangong means extensive concavity, and Tso is a lake in Tibetan. • Pangong Tso is a long narrow, deep, endorheic (landlocked) lake situated at a height of more than 14,000 ft in the Ladakh Himalayas. • The western end of Tso lies 54 km to the southeast of Leh. The 135 km-long lake sprawls over 604 sq km in the shape of a boomerang and is 6 km wide at its broadest point. • The brackish water lake freezes over in winter and becomes ideal for ice skating and polo. • The legendary 19th century Dogra general Zorawar Singh is said to have trained his soldiers and horses on the frozen Pangong lake before invading Tibet.

Tactical significance of the lake

• By itself, the lake does not have major tactical significance. • But it lies in the path of the Chushul approach, one of the main approaches that China can use for an offensive into Indian Territory. • Indian assessments show that a major Chinese offensive if it comes, will flow across both the north and south of the lake. • During the 1962 war, this was where China launched its main offensive — the Indian Army fought heroically at Rezang La, the mountain pass on the southeastern approach

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to Chushul valley, where the Ahir Company of 13 Kumaon led by Maj. Shaitan Singh made its last stand. • Not far away, to the north of the lake, is the Army’s Dhan Singh Thapa post, named after Major Dhan Singh Thapa who was awarded the country’s highest gallantry award, the Param Vir Chakra. • Major Thapa and his platoon were manning Sirijap-1 outpost which was essential for the defence of Chushul airfield.

Connectivity in the region

• Over the years, the Chinese have built motorable roads along their banks of the Pangong Tso. • At the People’s Liberation Army’s Huangyangtan base at Minningzhen, southwest of Yinchuan, the capital of China’s Ningxia Hui Autonomous Region, stands a massive to- scale model of this disputed area in Aksai Chin. • It points to the importance accorded by the Chinese to the area. • Even during peacetime, the difference in perception over where the LAC lies on the northern bank of the lake makes this contested terrain. • In 1999, when the Army unit from the area was moved to Kargil for Operation Vijay, China took the opportunity to build 5 km of a road inside Indian Territory along the lake’s bank. • From one of these roads, Chinese positions physically overlook Indian positions on the northern tip of the Pangong Tso Lake.

Fingers in the lake

• The barren mountains on the lake’s northern bank, called the Chang Chenmo, jut forward in major spurs, which the Army calls “fingers”. • India claims that the LAC is coterminous with Finger 8, but it physically controls area only up to Finger 4. • Chinese border posts are at Finger 8, while it believes that the LAC passes through Finger 2. • Around six years ago, the Chinese had attempted a permanent construction at Finger 4 which was demolished after Indians strongly objected to it. • Chinese use light vehicles on the road to patrol up to Finger 2, which has a turning point for their vehicles. • If they are confronted and stopped by an Indian patrol in between, asking them to return, it leads to confusion, as the vehicles can’t turn back. • The Chinese have now stopped the Indian soldiers moving beyond Finger 2. This is an eyeball-to-eyeball situation which is still developing.

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Confrontation on the water

• On the water, the Chinese had a major advantage until a few years ago — their superior boats could literally run circles around the Indian boats. • But India purchased better Tampa boats some eight years ago, leading to a quicker and more aggressive response. • Although there are well-established drills for disengagement of patrol boats of both sides, the confrontations on the waters have led to tense situations in the past few years. • The Chinese have moved in more boats — called the LX series — in the lake after the tensions which rose in the area from last month. • The drill for the boats is agreed upon by the two sides, as per the Standard Operating Procedure.

Out of bounds for tourists

• Indian tourists are only allowed up to Spangmik village, around 7 km into the lake. This is where a famous movie climax was shot. • In fact, tourists were not allowed at all at Pangong Tso until 1999, and even today, you need to obtain an Inner Line Permit from the office of the Deputy Commissioner at Leh.

44. Moving beyond geopolitics

Context:

• The authors of the article analyze the trends in the domain of technology and data, and evaluate the scenario in a post-COVID phase. Significance of technology and data:

• National governments, policymakers and healthcare researchers are using technology and data to plan and improve economic activities, social development and treat deadly diseases. Recent trends: Interdependence between technology and geopolitics:

• Issues relating to technologies such as biotechnology, genetic engineering and information technology will have a long-term impact on geopolitics. • Technology and data are becoming inherently geopolitical. • Proper data related to the COVID-19 outbreak were not shared in time, and that is why there is so much anger towards the World Health Organization and China.

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• The nature of technology and data has placed tech giants such as Google, Facebook and Amazon in a commanding position. Given their global reach, governments are becoming increasingly dependent on them. • Tech giants are taking a leading role in geopolitics, at times playing on their own and sometimes as proxies of nation states to influence policymaking and national regulations. • The U.S.-China trade war, the position of governments on Huawei 5G technology, and Facebook’s attempt to implement internet.org are a few examples. Changing idea of privacy:

• The pandemic has brought a change in perception on issues like privacy. • During the current pandemic, people across the globe have accepted the idea of their live locations being traced and shared with governments. In India, more than 90 million people have downloaded Aarogya Setu despite concerns raised with respect to the right to privacy. Concerns: Increasing restrictions on data:

• Restrictions on the flow of data have increased significantly in the recent past. • World over, data protection laws, requirements of data localisation, laws related to weakening of encryption keys and data retention requirements are increasing. Lack of proper framework:

• The proposed frameworks on data are not interoperable between different jurisdictions and only focus on protection of personal data and privacy and give little thought to the broader impact of data on mobility and social aspects. • Data protection frameworks such as the General Data Protection Regulation of the EU and the CLOUD Act of the U.S. are aimed at putting users in control of their data. But they have issues relating to data localisation, cross-border flow of information and issue of data sharing. The global body, UN has also not succeeded in bringing consensus in the preparation of an acceptable framework. Way forward: Sharing data:

• In the post-COVID world, countries and tech giants should be obligated to share data in the larger interest of mankind. • The unprecedented amount of data being collected by tech giants need to be used towards the welfare of society.

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Privacy aspects:

• The current human rights framework cannot be extrapolated to human rights in the digital and biological domain. The current concept of privacy may require significant change. • There is a need to distinguish individual data from large global data sets. Need for a framework:

• In the post-COVID-19 world, the need for digital equity will require frameworks relating to governance of technology and data that look beyond geopolitical considerations. • With data flow set to become more important over time, we need government regulations and standard and inter-operable frameworks to govern issues and address risks emerging from these technological innovations. • The framework must focus on leveraging data to solve problems and ensure consistency, interoperability, privacy and security.

45. Aarogya Setu app is now open source

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Amid concerns over privacy of data being collected by its COVID-19 contact tracing app, the union government has open-sourced the Aarogya Setu app.

About AarogyaSetu App

• The App enables people to assess themselves the risk of their catching the Corona Virus infection. • It is designed to keep track of other AarogyaSetu users that a person came in contact with and alert him or her if any of the contacts tests positive for COVID-19. • It achieves this using the phone’s Bluetooth and GPS capabilities. • Once installed in a smartphone through an easy and user-friendly process, the app detects other devices with AarogyaSetu installed that come in the proximity of that phone. • The app can then calculate the risk of infection based on sophisticated parameters if any of these contacts have tested positive. • The personal data collected by the App is encrypted using state-of-the-art technology and stays secure on the phone until it is needed for facilitating medical intervention.

Issues with the app

• The AarogyaSetu app faces the same issue as every other contact tracing technology that has come up during the pandemic period — it is people dependent. • It needs widespread usage and self-reporting to be effective. • Given that any number of total users will be a subset of smartphone owners in India, and there are bound to be variations in the levels of self-reporting, the efficacy is not bulletproof. • The terms of use of the app also say as much, distancing the government from any failure on the part of the app incorrectly identifying COVID-19 patients.

1) Privacy concerns

• First of all, the app exists in the privacy law vacuum that is India. • With no legislation that spells out in detail how the online privacy of Indians is to be protected, AarogyaSetu users have little choice but to accept the privacy policy provided by the government. • The policy goes into some detail on where and how long the data will be retained, but it leaves the language around who will have access to it vague. • As per the policy persons carrying out medical and administrative interventions necessary in relation to COVID-19” will have access to the data. • This suggests interdepartmental exchanges of people’s personal information and is more excessive than countries like Singapore and even Israel.

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2) Technical issue

• Beyond the legal loopholes, there are technical loopholes as well. • The unique digital identity in AarogyaSetu is a static number, which increases the probability of identity breaches. • The abundance of data collected is also potentially problematic. • AarogyaSetu uses both Bluetooth as well as GPS reference points, which could be seen as overkill whereas other apps such as TraceTogether make do with Bluetooth.

3) Other issues

• Experts emphasise that automated contact tracing is not a panacea. • They caution against an over-reliance on technology where a competent human-in-the- loop system with sufficient capacity exists.

46. COVID-19 pandemic may create opportunities to deepen India’s engagement with Africa Background

• Africa Day is observed every year on May 25 to commemorate the founding of the Organisation of African Unity (now known as the African Union). • India has been closely associated with it on account of its shared colonial past and rich contemporary ties. • The Manohar Parrikar Institute for Defence Studies and Analyses has hosted an Africa Day Round Table annually for the last four years in order to commemorate this event. Economic condition in Africa

• The World Bank’s Africa’s Pulse is a biannual analysis of the near-term macroeconomic outlook for the region. • Each issue includes a special focus on a particular development challenge that is shaping Africa’s economic future. • In its April report, it assessed that the COVID-19 outbreak has sparked off the Sub-Saharan Africa (SSA) region’s first recession in 25 years. • Growth is expected to plummet to between -2.1 and -5.1 per cent in 2020, from a modest 2.4 per cent in 2019. With high rates of HIV, malaria, diabetes, hypertension and malnourishment prevalent, a large number of Africans were already faced with a health and economic crisis. • The steep decline in commodity prices has spelt disaster for the economies of Nigeria, Zambia and Angola.

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Precarious fiscal positions have ruled out any major governmental stimulus. Public debt has mounted. It is clear that without outside support, Africa will find it very difficult to meet the challenge. Economic Opportunities in Africa

• Africa’s rich natural resources, long-term economic potential, youthful demography and influence as a bloc of 54 countries in multi-lateral organisations are apparent. • In recent years, several extra-regional economies have strengthened their engagement with African states, with an eye to rising opportunities, including in energy, mining, infrastructure and connectivity.

1. China

• China’s engagement of Africa, as elsewhere, is huge but increasingly regarded as predatory and exploitative. Its annual trade with Africa in 2019 stood at $208 billion, in addition to investments and loans worth $200 billion. • Traditionally, China’s participation in infrastructure projects has been astonishing. Having famously built the 1,860 km Tanzania-Zambia railway line in 1975, and the Addis Ababa-Djibouti and Mombasa-Nairobi lines more recently, China is now eyeing to develop the vast East Africa Master Railway Plan. • At the Forum for China-Africa Cooperation (COCAC) in 2018, China set aside $60 billion in developmental assistance, followed by a whopping $1 billion Belt and Road (BRI) Infrastructure Fund for Africa. • China has followed up with robust health sector diplomacy in the wake of the pandemic. China’s image was tarnished.

• This was due to supply of defective PPE gear and discriminatory behaviour against Africans in Guangzhou, leading to an embarrassing diplomatic row.

2. Japan hosted the 7th Tokyo International Conference for African Development (TICAD) in August 2019. 3. Russia hosted the first-ever Russia-Africa Summit in 2019. 4. Brazil, home to the largest population of people of African descent outside of Africa, has also sought to develop closer ties. 5. Cuba has sent medical teams to help Africa.

India’s relationship with Africa

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• Prime Minister Narendra Modi has redefined India’s relations with Africa. India- Africa trade reached $62 billion in 2018 compared to $39 billion during 2009-10. • After South Asia, Africa is the second-largest recipient of Indian overseas assistance with Lines of Credit (LOC) worth nearly $10 billion (42 per cent of the total) spread over 100 projects in 41 countries. • Ties were boosted at the India Africa Forum Summit (IAFS) in 2015. • Approximately 6,000 Indian soldiers are deployed in UN peace-keeping missions in five conflict zones in Africa. • Bilateral cooperation includes solar energy development, information technology, cyber security, maritime security, disaster relief, counter-terrorism and military training. Amidst COVID-19 Crisis

• India has already dispatched medical assistance to 25 African countries and PM Modi has had a telephonic talk with President Cyril Ramaphosa of South Africa who is the current chairperson of the African Union, and separately with others such as the Presidents of Uganda and Ethiopia. • The Minister of External Affairs has also reached out to counterparts in Africa to reiterate India’s support in the fight against the coronavirus. What should India do?

• India could consider structuring a series of virtual summits in zonal groups with African leaders across the continent over the next few months that could both provide a platform for a cooperative response to the pandemic and also serve as a precursor to the actual summit in the future. • The Aarogya Setu App and the E-Gram Swaraj App for rural areas for mapping COVID-19 are technological achievements that could be shared with Africa. • Since the movement of African students to India for higher education has been disrupted, India may expand the e-VidyaBharti (tele education) project to establish an India-Africa Virtual University. • With the locust scourge devastating the Horn of Africa and the pandemic worsening the food crisis, India could ramp up its collaboration in this sector. • It is also time for the Quad Plus, in which the US, India, Japan and Australia have recently engaged other countries such as the ROK (South Korea), Vietnam, New Zealand, Israel and Brazil, to exchange views and propose cooperation with select African countries abutting the Indian Ocean.

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47. Anchoring ties with Canberra the virtual way Relations with much potential

• While China’s aggression and WHO’s role provided the backdrop, potential for the partnership extends well beyond that. • Mr. Modi convened a multilateral summit to bring South Asia together to face the pandemic, and he spoke online with G-20 leaders on similar issues. • But India’s first bilateral summit is with Australia, and it is no longer surprising. • The convergence of interests and values has been patently obvious. • But the time has also come to translate that potential into reality.

• 1) The two countries have sought to reconstruct their increasingly turbulent regional geography into the Indo-Pacific seen the Quad with Japan and the United States as the most potent instrument to promote cooperation. • The Quad, not surprisingly has been causing apprehensions in Beijing. • 2) It is expected that the ‘Mutual Logistics Support Agreement’ will be signed during the summit. • That should enhance defence cooperation and ease the conduct of large- scale joint military exercises. • 3) Last April, Australia and India conducted AUSINDEX, their largest bilateral naval exercise. • And there are further developments on the anvil, including Australia’s permanent inclusion in the Malabar exercise with Japan. • 4) It may be prudent too for New Delhi and Canberra to elevate the ‘two plus two’ format for talks from the Secretary level to the level of Foreign and Defence Ministers.

1) Pandemic control through controlled adaptation: Learning from Australia

• Australia is one of the few countries that has managed to combat COVID- 19 so far through “controlled adaptation” by which the coronavirus has been suppressed to very low levels. • Two of the leaders of this great Australia-wide effort are Indian-born scientists. • There is much that the two Prime Ministers can share on this front.

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2) Collaboration in health, safe food and supply chains

• In terms of health and safe food as well the supply chains that facilitate their delivery, there are important lessons to be learnt. • One of Australia’s richest businessman and first patron of the Australia- India Leadership Dialogue recently described the promise of DTC-CPG (direct to consumer; consumer packaged goods) which could transform global supply chains. • Here too there is much room for collaboration and new thinking.

3) Higher education

• The recovery of Australia’s universities, most of which are publicly funded and many rank among the top in the world, is still in question. • But they are proving to be resilient and pioneers in distance and online learning. • Australian universities could well open earlier than most and emerge as a safer destination for quality education than their European or Ivy league counterparts.

Consider the question “India’s relations with Australia have of late acquired a dept and diversity which is visible in their cooperation in diverse areas. Comment.”

Conclusion

As India and Australia with shared values try to bring about fresh order in a turbulent world, the virtual summit, in this sense, could not have been better timed.

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GS 3 : Economy, Science and Technology,Environment

1. GDP growth slows to a 11-year low of 4.2%, Q4 slumps to 3.1%

Why in News India grew at 3.1%, the slowest in 11 years, in the March quarter, dragging the full- year expansion to 4.2% against 6.1% in FY19. The quarterly GDP data partially captures the impact of the covid-induced curbs, which began on 25 March.

Key Points ▪ Growth in Fiscal Year 2019-20:

o The provisional growth estimate for the year 2019-20 is at 4.2%.

• The budget estimate for Gross Domestic Product (GDP) growth in 2019-2020 was stated at 8.5%, the NSO’s previous estimates had pushed the projection down to 5%. • The Indian economy grew at 6.1% in 2018-19. o Growth rate in terms of Gross Value Added (GVA), slowed to 3.9% in 2019-20 from 6% growth in the previous year.

• GVA is GDP minus net product taxes and reflects supply-side growth. o The nominal GDP growth rate, which accounts for inflation, is estimated to have grown at 7.2% in 2019-20, sharply lower than 11% in the previous year. ▪ Growth in Final Quarter of 2019-20:

o In the final quarter of the year, that is, January 2020 - March 2020, the growth rate of GDP fell to 3.1%. o This is the lowest growth rate in the last 44 quarters. o Agriculture and mining sectors grew in the fourth quarter at rates of 5.9% and 5.2% respectively. o Public administration, defence and other services grew at 10.1%. o The manufacturing sector contracted to a negative growth of 1.4%. o The three components of demand have also fallen i.e. consumption demand has slowed, while investments and exports are both in negative territory. ▪ Analysis of the growth data:

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o Nominal GDP growth: There are two reasons why the sharp deceleration in the nominal GDP matters.

• First, the nominal GDP growth rate is the base of all fiscal calculations (revenue and spending) in the country.

• A sharp divergence in nominal GDP growth rate basically upsets all other calculations in the economy. • For instance, a sharp fall means the government does not get the revenues it had hoped for and, as such, it can’t spend as much as it wanted to. • Second, this substantial deceleration reflects poorly on the government’s fiscal marksmanship.

• In other words, it shows that the government was not able to assess the magnitude of economic growth deceleration that was underway. • Poor fiscal marksmanship, in turn, leads to inaccurate policy making because a government could end up making policies for an economy that doesn’t actually exist on the ground. • This sharp deceleration also shows the continued weakening of India’s growth momentum even before it was hit by the Covid-19 lockdown in the last week of March. o Negative Growth of Manufacturing:

• It has been argued in the past, that for India to grow and create jobs for the millions that enter its workforce each year, manufacturing growth has to rise. • But 2019 paints a dismal picture in this regard. Manufacturing contracted for three of the four quarters.

Key Terms

▪ Gross Domestic Product (GDP):

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o It is a measure of economic activity in a country. It is the total value of a country’s annual output of goods and services. It gives the economic output from the consumers’ side. o GDP = Private consumption + Gross investment + Government investment + Government spending + (exports-imports) ▪ Gross Value Added (GVA):

o It is the sum of a country’s GDP and net of subsidies and taxes in the economy. It provides the rupee value for the amount of goods and services produced in an economy after deducting the cost of inputs and raw materials that have gone into the production of those goods and services. o Gross Value Added = GDP + subsidies on products - taxes on products ▪ Nominal GDP:

o It is GDP evaluated at current market prices. It includes all of the changes in market prices that have occurred during the current year due to inflation or deflation. o It is different from the Real GDP which is calculated in a way such that goods and services are evaluated at some constant set of prices. The National Statistical Office

▪ NSO is the central statistical agency of the Government mandated under the Statistical Services Act, 1980 under the Ministry of Statistics and Programme Implementation. ▪ It is responsible for the development of arrangements for providing statistical information services to meet the needs of the Government and other users for information on which to base policy, planning, monitoring and management decisions.

o The services include collecting, compiling and disseminating official statistical information. o All business operations in NSO are done in compliance with international standards, procedures and best practices. Conclusion Economists have highlighted that GDP is headed for a contraction in 2020-21 due to the impact of Covid-19. Therefore, government expenditure will be the growth engine in the year 2020-21. Weak commodity prices and import demand will also provide some support to growth.

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2. How India can become self reliant

Context:

• The current focus on self-reliance for India. • Addressing the nation on the COVID-19 pandemic, Prime Minister Narendra Modi emphasised the necessity of a self-reliant India. Background: Indian Scenario:

• Self-reliance in state-run heavy industries and strategic sectors in the decades following independence had placed India ahead of most developing countries. • In the 1970s and 80s, however, India did not modernise these industries to climb higher up the technological ladder. • The private sector stayed content with near-monopoly conditions in non- core sectors in a protected market. • Little effort was made to modernise light industries or develop contemporary consumer products. The concept of self-reliance was neglected when India embarked on liberalisation, privatisation and globalisation in 1991 as it was believed that advanced technologies could be bought from anywhere at lower costs. Concerns:

• The author evaluates the concerns associated with India’s approach. Lagging behind:

• India’s industrial ecosystem has been characterised by low productivity, poor quality and low technology, and has been globally uncompetitive. • India completely missed out on the ‘third industrial revolution’ comprising electronic goods, micro-processors, personal computers, mobile phones and decentralised manufacturing and global value chains. • India still imports large volumes of smartphones, solar photovoltaic cells and modules despite the huge domestic demand conditions. The lack of focus on indigenous R&D may have resulted in India lagging behind the U.S., Europe and China in many of the modern technologies. Neglect of PSUs:

• The public sector undertakings (PSUs) have been inefficient and sluggish for the competitive globalised scenario.

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• No efforts have been made to either grant real autonomy to the PSUs or help them transition to new technological directions. Research and Development:

• Nascent research and development (R&D) efforts (in photovoltaics, semiconductors and advanced materials) have been undermined or abandoned. • Presently, most R&D in India is conducted by PSUs, and much of the smaller but rising proportion of private sector R&D is by foreign corporations in information technology and biotechnology/pharma. Private sector:

• The private sector has displayed little interest in heavy industries and has shown no appetite for technology upgradation. • With entry of foreign corporations, most Indian private companies retreated into technology imports or collaborations. Fallacy of FDI:

• It is generally believed that inviting foreign direct investment and manufacturing by foreign majors would bring new technologies into India’s industrial ecosystem, avoiding the need for indigenous efforts towards self-reliance. • However, mere setting up of manufacturing facilities in India is no guarantee of absorption of technologies (the ability to independently take them to higher levels). • The foreign companies have guarded commercially significant or strategic technologies in off-shore manufacturing bases. COVID-19 crisis:

• The absence of domestic production of personal protective equipment (PPE) when COVID-19 struck highlighted the drawbacks in India’s approach. International experience:

• The experience and achievements in other countries in Asia could act as a guide to India’s actions. The achievers:

• Countries like Japan, South Korea, Taiwan, Singapore and Hong Kong took huge technological and industrial strides in the 1970s and 80s. • South Korea has climbed up the technology ladder and value chains in electronic goods, consumer durables, automobiles, micro-processors, personal computers and heavy machinery. It has emerged as a global powerhouse in manufacturing and also indigenously developed technologies.

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• Taiwan developed technologies and manufacturing capacities in robotics and micro-processors, while Singapore and Hong Kong adapted advanced technologies in niche areas. • China has advanced from low-end mass manufacturing to a dominant role in global supply chains. It is now shifting to advanced manufacturing and has set itself a target of becoming a world leader by 2035 in 5G, supercomputing, Internet of Things, Artificial Intelligence (AI), autonomous vehicles, biotech/pharma and other technologies of the ‘fourth industrial revolution’. The self-reliant capabilities were enabled, by planned state investments in R&D including basic research (3-5% of GDP), technology and policy support to private corporations, infrastructure and, importantly, education and skill development (4-6% of GDP). Laggards:

• Countries like Thailand, Malaysia, Indonesia and Vietnam have focused on off- shore manufacturing lower down the value chain and without the thrust on self- reliance. Way forward:

• There needs to be improvement in quality and domestic supply chains going forward for which India will have to make major course changes in development strategies. • Indian self-reliance in science and technology (S&T) and industry in a globalised world is the way forward. Domestic efforts:

• The key ingredient for self-reliance is the need for resolute indigenous endeavour in R&D, moving away from the reliance on foreign technology induction through FDIs. • There would be the need for large-scale concerted endeavours across various domains. • Though India lags behind many countries in niche technologies, yet self-reliant capabilities in electric and fuel cell vehicles, electricity storage systems, solar cells and modules, aircraft including UAVs, AI, robotics and automation, biotech/pharma and others are well within reach. Role of government:

• Given the disinclination of most of the private sector towards R&D, significant government reinvestment in PSUs and R&D is essential for self-reliance. • There needs to be significant government reinvestment in public sector undertakings and R&D.

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• State-funded R&D, including in basic research, by PSUs and research institutions and universities needs to be scaled-up significantly, well above the current level of 1% of GDP. Role for private sector:

• Though PSUs would be given their distinctive place in the revamped R&D ecosystem, private sector delivery-oriented R&D could also be supported, linked to meaningful participation in manufacturing at appropriate levels of the supply chain. Focus on education:

• Given the fact that self-reliance without mass quality public education is not possible, India’s meagre public expenditure on education needs to be substantially ramped up, including in skill development.

3. The problem with the liquidity push

Context:

• The author of the article analyzes the post-COVID-19 relief and recovery package announced by the government. Concerns:

• The author expresses concerns over the measures announced by the RBI and the government. Meagre resource allocation:

• The economic stimulus package provides little by way of additional budgetary resources to halt and reverse the economic and social collapse that the pandemic has triggered. • Estimates by economists place the additional fiscal allocation implicit in the proposals at around 1% of the GDP as against the 10% claimed by the government. Reliance on liquidity measures:

• The relief-cum-stimulus package relies heavily on measures aimed at addressing the liquidity crunch. • The thrust is to get the Reserve Bank of India (RBI) and other public financial institutions to infuse liquidity and increase lending by the financial system to address the liquidity crunch.

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• In economy, liquidity refers to ease of access to cash. • The financial intermediaries being enlisted for the task of transmitting liquidity are the banks, with NBFCs constituting the lower tier. The author argues that this approach marks a one-dimensional approach as against the multi-dimensional approach required at the moment. Targeted long term repo operations:

• The RBI had launched the special and ‘targeted’ long term repo operations (TLTROs), allowing banks to access liquidity at the repo rate to lend to specified clients. The repo or policy interest rate has been cut by more than a percentage point to 4%. • The TLTROs call for investment of the cheaper capital in higher quality investment grade corporate bonds, commercial paper, and non-convertible debentures. • The easy funding has allowed big businesses to access cheap capital to substitute for past high-cost debt or finance ongoing projects without proportionate benefits for the smaller businesses. • There is very little evidence to show that the announced measures would be able to trigger new investments as envisaged by the package. The second round of TLTROs was aimed at easing the liquidity crunch in the NBFCs. • The NBFCs were finding it difficult to roll over the short-term debt they had incurred to finance longer term projects, including lending to small and medium businesses, housing and real estate. • The measure announced failed to incentivize the banks into lending to the NBFCs, because of lack of confidence in the NBFCs’ financial viability. COVID-19 Package Measures: COVID-19 package liquidity measures:

• Building on the initial liquidity infusion efforts from the RBI, the COVID-19 package identified more intermediaries (such as the Small Industries Development Bank of India, the National Bank for Agriculture and Rural Development, and the National Housing Bank) that could refinance lending by the banks to different sections, with targeted lending amounts. • The government has offered partial or full credit guarantees in case of defaults to incentivize the banks and other intermediaries into lending to small borrowers. • The government also sought to persuade the RBI to lend directly to NBFCs against their paper. Limitations:

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• The author argues that the measures sought under the package would not work during this crisis. • The measures may not lead to additional or new investment. • The compression of demand resulting from the loss of employment and incomes would be considerable. Faced with sluggish demand, firms are unlikely to meet past and current payments commitments and help the revival effort. Fiscal conservatism:

• The administration seems to be focussed on maintaining healthy fiscal numbers. • The spending by the fiscally conservative government would fall sharply because of a collapse in revenue collections. • The government has been reluctant with respect to even the contingent liabilities that do not immediately affect the fiscal deficit. Disposable income:

• Several measures have been announced to help increase the disposable income of different sections. • Advance access to savings like provident fund contributions, lower tax deduction at source, reduced provident fund contributions and moratoriums on debt service payments are some of the announced measures. • These measures are expected to provide access to cash inflows and reduce cash outflows and induce agents to meet overdue payments or spend to enhance the incomes of others. The author argues that the announced measures are marginal in scope and only temporarily help increase the disposable income. Sustainability:

• The sought measures only envisage a supply side push from the monetary policy initiatives. • Given the circumstances, the liquidity push would only culminate in eventual default, as borrowers use the debt to just stay afloat in the absence of new revenues. The measures are only likely to intensify the crisis, rather than resolve it. Way forward:

• The author argues for higher government support in the form of new and additional transfers to people in cash and kind, and measures such as wage subsidies, equity support and spending on employment programmes.

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• The above measures would require debt financed spending by the government, with borrowing at low interest rates from the central bank or a “monetisation” of the deficit.

4.Time to evaluate and merge income support schemes

Not much ‘new cash’ in the relief package

• On May 12, the PM announced that his government’s relief-cum-stimulus package would be Rs 20 lakh crore, almost 10 per cent of India’s GDP. • But when Finance Minister unveiled the package, sector by sector, many wondered where the “new cash” was? • So, it became clear that additional relief and stimulus in the system is just about 1 per cent of the GDP — not 10 per cent. • Much of the rest is directed towards increasing liquidity and deferring some loan payments, but not much additional cash.

Cash-transfer schemes by the state governments: Chhatisgarh and other states

• In this context, the Chhattisgarh government deserves compliments for launching the Rajiv Gandhi Kisan Nyay Yojana (RGKNY). • RGKNY is an income transfer scheme at Rs 10,000/acre for paddy farmers and Rs 13,000/acre for sugarcane farmers. • The state’s chief minister has said that the scheme will be extended to farmers of other crops — in fact, to landless labourers as well. • On the face of it, RGKNY will help put money directly into the hands of farmers and poor agricultural labourers. • In kharif 2018-19, Telangana announced a cash transfer scheme of Rs 4,000/acre, per season — this was raised to Rs 5,000/acre per season in kharif 2019-20. • There is a live portal that gives the details of the scheme and its progress. • In the rabi season of 2018-19, the Odisha government launched the KALIA scheme- Krushak Assistance for Livelihood and Income Augmentation- on a somewhat similar pattern. • West Bengal’s Krishak Bandhu and Jharkhand’s Mukhya Mantri Krishi Aashirwad Yojana are the other income support schemes worth mentioning.

2 Issues with income support policies and solutions 1. The beneficiary is not always tiller of the land

• Ideally, the money of the policies should go to the real tiller. • But in large parts of the country, there is no record of tenancy. • The government data shows only 10 per cent tenancy in the country.

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• While several micro-level studies indicate that it could be anywhere between 25-30 per cent. • In fact, in many regions like the Godavari belt, it could be even more than 50 per cent. • It does not make much sense to put money into the accounts of absentee landlords.

So, what is the solution to this problem?

• 1) The best way would be to change the tenancy laws. • Open up land lease markets, ensuring that the owner of the land has full rights to take his land back after the expiry of the lease period. • The current law, favouring “land to the tiller”, is loaded against the owner. • As a result, much of tenancy in the country remains oral. • 2) In the absence of such legal changes in land lease laws, the only way forward is to fully inform the tiller that the owner has got income support. • And then appeal to the owner to pass on this benefit to the tiller — or adjust the land rent accordingly. • Information and persuasion campaigns in radio and newspapers would increase the chances of the benefits being passed on to the real tillers.

2. Identifying the landless labourers working on the farms

• The other issue is identifying the landless labourers working on farms. • Majority of them are temporary and seasonal workers. • And leaving the task of identification to panchayats and patwaris can open doors for large leakages and corruption.

What is the solution to this problem?

• There have been talks in the past for synchronising MGNREGA with farm operations. • The synchronising will have two benefits- • 1)It will contain the cost of farming. • 2) It will ensure that those engaged in this employment guarantee scheme do useful and productive work. • The legal framework of the MGNREGA scheme does allow this on farms owned by people of SC/ST communities, and on the lands of marginal farmers.

Merging Income Support Schemes: The way forward

• The time has come to think seriously about merging income support schemes. • The merger will include the PM KISAN and state-level schemes, with the MGNREGA and price-subsidy schemes — food and fertiliser subsidies given by Centre and power subsidies given by state government. • These schemes amount to Rs 5 lakh crore — that’s a good sum of money to start a basic income cover for poor households.

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• Markets could then be left to operate freely. • This approach can cover landless labourers, farmers, and poor consumers — these categories overlap. • Let there be an expert group to look closely into the functioning of each one of these schemes and create an umbrella scheme to take care of the poor and the needy.

Conclusion Though income support schemes by the state government and the Centre are a welcome move, however, when one looks at the issues with these schemes an umbrella scheme after merging all the present schemes will go a long way in solving the problems which almost all these schemes face today.

5. Hardly the 1991 moment for agriculture

Context:

• Announcement of reforms in agricultural marketing, under the Atmanirbhar Bharat Abhiyan economic stimulus package. • The three proposed reforms regarding agricultural marketing are the reforms in the Agricultural Produce Marketing Committee (APMC) Act, the Essential Commodities Act, and on contract farming. Details: Arguments against APMC act:

• The main argument against the APMC Act is that it creates barriers to the entry and exit of traders and makes the sale and purchase of agricultural produce compulsory for farmers as well as traders. • The general argument in favour of reforms in the APMC act is that it will allow private investment in marketing infrastructure as well as provide more choices to farmers, leading to better prices received by farmers. There have been instances of collusion and corruption in the running of the APMC There is the problem of political interference in the functioning of the mandis. These are more obvious in the case of large mandis specialising in commercial crops and fruits and vegetables, where production is regionally concentrated. Given the criticism regarding the functioning of the APMC act, as many as 17 State governments have amended the APMC Act to make it more liberal. APMC act variations across states:

• The regulations and the functioning of mandis vary across States. • Kerala does not have an APMC Act and Bihar repealed it in 2006.

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• Maharashtra, West Bengal, Odisha, Gujarat, and Andhra Pradesh have deregulated fruits and vegetable trade, allowed private markets, introduced a unified trading licence and have introduced a single-point levy of market fee. • Tamil Nadu has already reformed its APMC with no market fee. • Several other states such as Jharkhand, Himachal Pradesh, Uttarakhand, Haryana and Rajasthan have also undertaken reforms. Many States have introduced direct marketing of farm produce, examples being the Uzhavar Sandhai (Tamil Nadu), the Rythu Bazaar (Andhra Pradesh and Telangana), the Raitha Santhe (Karnataka), the Apni Mandi (Punjab) and the Krushak Bazaar (Odisha). The Author’s analysis:

• The author claims that APMC mandis are being vilified for all the ills plaguing marketing infrastructure and the low prices received by the farmers for their produce, even though they play an important role in providing access to the market for farmers. The Bihar example:

• Bihar had repealed its APMC act in 2006. • As against the expected benefits, the state witnessed no private investment in building market infrastructure. • There is also no evidence that farmers have received better prices in private mandis outside the APMC. • The repealing of the APMC Act has had some negative impacts: • The state suffered a loss of revenue due to the repeal of the APMC which led to the deterioration of existing infrastructure of the market yards in the State. • The state has witnessed the proliferation of private unregulated markets which charge a market fee from traders as well as farmers. • These private markets have substandard or no infrastructure for weighing, sorting, grading and storage. Even in other States where there is deregulation to allow private traders, there is hardly any positive impacts noted. Government’s responsibility:

• The author argues that the deregulation of the markets and the consequent withdrawal of the government from the mandis would amount to the government escaping the responsibility of creating marketing infrastructure for its farmers. • Most of the existing mandis require investment in upgradation of infrastructure.

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Inaccurate assessment:

• The author argues against the notion of the APMC act being the sole reason for the farmers not receiving remunerative prices for their produce. • The fact that more than 80% of farmers, most of whom are small and marginal farmers do not sell their produce in the APMC mandis stands testament to the author’s argument. Lack of demand:

• For a majority of farmers, prices received for their produce is more a function of the demand for agricultural commodities than access to markets. • In the recent past, the terms of trade have moved against agriculture, with agricultural commodity price inflation being in the negative zone. • In the light of inflation targeting, most agricultural commodities have seen a sharp decline in demand and consequently prices received by farmers. Way forward:

• The author argues that no amount of marketing reforms will lead to higher price realisation for farmers if the underlying macroeconomic conditions are unfavourable to agriculture and farmers. • The author suggests that the government should increase fiscal spending to revive demand in the economy which would help protect the farmers from the decline in commodity prices. • This has become even more necessary after the sharp decline in incomes, job losses and decline in demand following the lockdown and expected contraction in economic activity for the year ahead.

6. RBI cuts repo rate again, down to 4%

Context

• The Reserve Bank of India (RBI) has reduced the key interest rate or the Repo Rate (the interest rate that the RBI charges for funds given to banks) by 40 bps to stabilize the financial system. • Cumulatively, since the imposition of the national lockdown in March 2020, the MPC has cut rates by 115 basis points. The repo rate now stands at 4 per cent. Why did the RBI cut interest rates?

• The Monetary Policy Committee (MPC), was of the view that the macroeconomic impact of the pandemic is turning out to be more severe than initially anticipated, and various sectors of the economy are experiencing acute stress.

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• The impact of the shock has been compounded by the interaction of supply disruptions and demand compression. Beyond the destruction of economic and financial activity, livelihood and health are severely affected. • Even as various measures initiated by the government and the Reserve Bank work to mitigate the adverse impact of the pandemic on the economy, this accommodative step is a necessity to revive growth and mitigate the impact of COVID-19 on the economy • The decision was also considered keeping inflation within the target. Other measures taken by the RBI

• The central bank has extended the Loan Repayment Moratorium for another three months till August 31, 2020. • The extension of the moratorium on repayment of term loans by borrowers means that they would not have to pay the loan EMIs during the moratorium period. In addition, Interest Payment Deferment for working capital loans has also been extended by another six months. RBI has also decided to increase the Group Exposure Limit of banks from 25% to 30% of its capital base. • Group exposure limit determines the maximum amount a bank can lend to one business house. All other conditions for the facility remain unchanged — a loan will not be classified by the lender as non-performing and there will not be any impact on individual credit scores. A liquidity facility for Exim Bank of India was also opened as it has been decided to extend a ₹15,000 crore line of credit for a period of 90 days to enable it to avail a U.S. dollar swap facility to meet its foreign exchange requirements. Also to alleviate difficulties being faced by exporters in their production and realisation cycles, it has been decided to increase the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks from the existing one year to 15 months, for disbursements made up to July 31, 2020. Significance

• It will make funds cheaper for banks thus aiding them to bring down lending rates. • EMIs on home, auto, personal and term loan rates are expected to come down in the coming days. It will reduce the Cost of Capital and ease the financial burden on businesses due to the extended lockdown. The extension of the Repayment Moratorium on loans is a welcome measure.

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• The extension will provide relief to many individuals, especially the self- employed, as they would have found it difficult to service their loans such as car loans, home loans etc. due to loss of income during the lockdown period. • Missing an EMI payment would mean risking adverse action by banks which can adversely impact one’s credit score. In another significant measure, the RBI has allowed borrowers and banks to convert the interest charges during the moratorium period (from March 1 to August 31) into a term loan which can be repaid by March 2021. • This is expected to reduce the burden on borrowers who have gone for a moratorium. The increase in Group Exposure Limit will help large corporate borrowers who may find themselves handicapped in raising funds from the markets now. Concerns

• The extended period given may however still not be enough as it will offer borrowers only about seven months from the end of the moratorium period during which they will have to crank up their businesses and service their loans. • The RBI could have put off accumulated interest repayment by one year. There was some disappointment in the markets that the RBI did not relax norms for loan restructuring by lenders. Will monetary easing help? • Demand for credit is likely to remain low as, with continuing economic and health uncertainty, firms and households will postpone their decisions. • Moreover, risk averse banks are likely to hold back even if there are borrowers. Higher-rated borrowers are likely to continue to get easy funding, while lower-rated borrowers will struggle. Conclusion

• Monetary measures may have been taken to ease economic stress. But there are limitations to what it can achieve. It cannot do the heavy lifting alone. Fiscal support is needed.

7. Amphan Cyclone (A double disaster: On a cyclone amid the coronavirus)

• Amphan is a Super Tropical Cyclone originated from the Bay of Bengal.

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• It is considered the first super cyclonic storm in the Bay of Bengal since the 1999 Odisha cyclone. It made landfall between Digha, some 180 km south of Kolkata in West Bengal, and Hatiya islands in Bangladesh on May 20. Amphan intensified from a maximum wind speed of around 140 kilometre per hour to more than 200 kmph. • This meant it witnessed ‘rapid intensification’. • The main reason behind this was the high sea surface temperatures of 32- 34 degrees celsius in the Bay of Bengal. General long-term warming of the Bay of Bengal was the leading cause of rapid intensification. Naming

• The name Amphan, which is pronounced as ‘Um-pun’, means sky and was given by Thailand in 2004. • India, Bangladesh, Myanmar, Pakistan, Maldives, Oman, Sri Lanka and Thailand decide names of cyclones in the region. • The countries submit a list of cyclone names from time to time to choose the names from the pool. • While selecting names for cyclones, countries first analyse them to see if the word is easily understood by people in the region, hence the names are generally familiar words. How devastating was the first super cyclone in Bay of Bengal in 1999?

• In 1999, Odisha was ravaged by a super cyclone that left around 10,000 people dead along its trail of destruction. • One of the powerful cyclones of the 20th century, the 1999 super cyclone had also damaged lakhs of houses, killed about two lakh livestock and affected about 2.5 to 3 million people, leaving large tracts of agricultural land unfit for cultivation for a long time due to salinity. Tropical cyclones

• Cyclones are low-pressure systems that form over warm tropical waters, with gale force winds near the centre. The winds can extend hundreds of kilometres (miles) from the eye of the storm. • Sucking up vast quantities of water, they often produce torrential rains and flooding resulting in major loss of life and property damage. Tropical cyclones in the Bay of Bengal are graded according to maximum wind speeds at their centre.

• At the lower end are depressions that generate wind speeds of 30 to 60 km per hour followed by,

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• Cyclonic Storms (61 To 88 kph), • Severe Cyclonic Storms (89 to 117 kph) and • Very Severe Cyclonic Storms (118 to 166 kph). • At the top are • Extremely Severe Cyclonic Storms (167 to 221 kph) and • Super Cyclones (222 kph or higher). Storm surges

• The term “storm surge” refers to rising seas whipped up by a storm, creating a wall of water several metres higher than the normal tide level. • The surge can extend for dozens of kilometres inland, overwhelming homes and making roads impassable. • A storm surge is shaped by a number of different factors, including storm intensity, forward speed, the size of a storm and the angle of approach to the coast. • The underlying features of the land at the coast, including bays and estuaries, are also at play. Bay of Bengal

• The tropical cyclone season in the Bay of Bengal and neighbouring Arabian Sea has two peaks around May and November, according to the World Meteorological Organisation. • The cyclones can form in the western Pacific Ocean and travel in a northwest direction before arriving in the Bay of Bengal. Some reach the southeastern coast of India but others divert northeast and move up to West Bengal and Odisha states. • The Bay of Bengal has conditions favourable to the development of cyclones, including high sea surface temperatures. Steps taken by the Govt.

• Evacuations, arranging for backup power, warning people to stay far from the coasts, designating strong buildings as cyclone shelters, and providing for at least a week’s supply of cooked food besides bolstering medical supplies. • Fishermen are advised not to venture into North Bay of Bengal along and off North Odisha, West Bengal and adjoining Bangladesh coasts. What all damage is expected in Odisha and Bengal?

• Extensive damage is expected to all types of kutcha houses and some damage to old badly managed pucca structures. • Also, there is a potential threat from flying objects.

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• Extensive uprooting of communication and power poles is also likely along with disruption of rail/road at several places. • Aside from these, extensive damage to standing crops, plantations, orchards and blowing down of palm and coconut trees, uprooting of large bushy trees are expected. • The storm surge may have also led to the ingress of saline water into the fields and homes in the Sundarbans. This will hit soil quality and impact productivity, and force people to migrate in search of livelihood. Challenge of COVID-19

• There is an additional challenge, as thousands of people have been moved to crowded shelters where the COVID-19 pandemic poses a continuing threat. • Adhering to hygienic practices, monitoring those requiring medical assistance and testing for the virus is a high priority. Ocean warming

• Cyclone Amphan is also a reminder that oceans are warming due to rising emissions, and warm ocean water is a key ingredient for the formation of tropical cyclones. • The number of cyclones in the Arabian Sea and the Bay of Bengal has increased by 32% in the last five years, says IMD data. • However, the solutions — tackling the sources of global warming, and investing in and upgrading climate resilience and adaptation techniques — are complex processes and expensive. • It also needs tremendous political will and people’s support and participation to ensure that development is sustainable. But it has to be done; otherwise, the costs, as Cyclone Amphan has shown, will be massive and recurring. Conclusion

• The states now need to carry out a detailed assessment of what Amphan has done. • They have to start rebuilding infrastructure and reaching out to people with food, clean water and medical help.

8. Grasping the defence self reliance nettle

Context

• Finance Minister had recently announced a slew of reforms in the defence sector to address long-standing strategic and national security concerns.

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Key Stats

• India, in the last one decade, had the dubious record of being the world’s largest arms importer, accounting for about 12% of global arms imports. • Saudi Arabia jumped to first place in 2018 and 2019, but India still takes over 9% of global imports. Concerns

• This external dependence for weapons, spares and, in some cases, even ammunition creates vulnerabilities during military crises. • There are a range of platforms and subsystems, developed in India and qualified in trials, some of which face hurdles to their induction by our armed forces because of foreign competition. • These include missile systems such as Akash and Nag, the Light Combat Aircraft and the Light Combat Helicopter, artillery guns, radars, electronic warfare systems and armoured vehicles. COVID-19 has, once again, focused minds on the impact of supply chain disruptions on both civil and defence sectors. To find a solution to this ageing problem, we have the new Draft Defence Procurement Procedures (DPP) 2020 and a Chief of Defence Staff (CDS) tasked with promoting indigenous equipment in the armed forces. Draft Defence Procurement Procedure (DPP) 2020

• It aims at increasing indigenous manufacturing and reducing timelines for procurement of defence equipment by removing procedural bottlenecks. Changes to be introduced

1. Indigenization

• In a bid to enhance self-reliance in defence production, the government would notify a list of weapons systems for sourcing entirely from Indian manufacturers. • The list will be expanded and widened as and when the capabilities of Indian manufacturers enhance. • There would be a separate Budget provision for domestic capital procurement. • The government has promised a time-bound defence procurement process, overhauling trial and testing procedures and establishing a professional project management unit.

2. Indigenization of imported spare parts would also be given priority.

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• It is also imperative that when we import weapons systems, we should plan for the ammunitions and spares for them to be eventually manufactured in India so that we are not driven to seek urgent replenishments from abroad during crises. • The same goes for repair, maintenance and overhaul facilities and, at the next level, the upgrade of weapons platforms.

3. Corporatizing the Ordnance Factory Board.

• Ordnance factories have been the backbone of indigenous supplies to our armed forces. • The principal products of the OFB include tanks and armoured vehicles, artillery guns, small arms and weapons of several types and ammunition. • It also produces troop comfort equipment like uniforms, tents and boots. Their structure, work culture and product range now need to be responsive to technology and quality demands of modern armed forces. Corporatisation, including public listing of some units, ensures a more efficient interface of the manufacturer with the designer and end user.

4. FDI impact

• The FDI limit in defence manufacturing under automatic route will be raised from 49% to 74%. • It would open the door to more joint ventures of foreign and Indian companies for defence manufacturing in India. • It will also sustain a beehive of domestic industrial activity in the research, design and manufacture of systems and sub-systems. • Indian companies, which have long been sub-contractors to prominent defence manufacturers abroad, would now get the opportunity to directly contribute to Indian defence manufacturing.

5. Coexistence

• The government has rightly clarified that self-reliance would not be sudden and hasty but gradual. • The thrust for indigenous research and development will coexist with the import of cutting-edge military technologies to avoid near-term defence vulnerabilities. Challenges

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• The decision to corporatize the OFB would require managing numerous other issues, the most pressing of them being to assuage the anxiety of its workforce, including officers. • The Board’s overall financial management could also pose an immediate challenge which, in turn, could become tangled in legal wrangling. Further, an increase in the FDI cap to 74 per cent through the automatic route meets a longstanding demand by overseas companies and investors. • But how attractive or financially remunerative would it be for them to invest in India’s military-industrial complex would depend on the fine print and conditions predicated to this liberalisation. The decision to notify and continuously update the list of weapons/platforms whose import would be prohibited seems equally restrictive and limiting. • In keeping with the procurement policy since 2016, there is no way the MoD can import material that is locally available or alternately can be indigenously manufactured. • It is unclear what additional purpose would be served by banning the import of these items. If anything, it will make it procedurally more complex to import any such item, should its induction become operationally necessary. Other reforms announced by the Finance Minister include the establishment of a Project Management Unit (PMU) to ensure timely completion of the procurement process, facilitating quicker decision-making, formulation of realistic General Staff Qualitative Requirements (GSQRs) and overhauling the Trial and Testing procedures. • It may be recalled that the former Defence Minister Manohar Parrikar had once publicly declared that some of the military’s QRs appeared to be out of ‘Marvel comic books’, as the technologies and capabilities they specified were ‘absurd and unrealistic’. • The April 2012 Defence Parliamentary Committee had also revealed that as many as 41 of the Indian Army’s tenders were scrapped because of the restrictive QRs. Way forward

• The armed forces should give industry a clear picture of future requirements, so that the industries can build a long-term integrated perspective plan. • DPP 2020 should incorporate guidelines to promote forward-looking strategic partnerships between Indian and foreign companies, with a view to achieving indigenisation over a period of time for even sophisticated platforms. • To give private industry a level playing field for developing defence technologies, conflicts of interest, created by the role of our Defence Research and Development Organisation (DRDO) as the government’s sole adviser, developer and evaluator of technologies have to be addressed.

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Conclusion

• Investment, Indian or foreign, will be viable only if the door to defence exports is opened, with a transparent policy.

9. Criteria for ‘medium’ units to be revised

Context: The government has decided to further revise the criteria for medium-sized units after changing the definition of MSMEs. Background:

• Unveiling the contours of the ₹20-lakh-crore stimulus package, the Finance Minister had announced a change in the definition of micro, small and medium enterprises (MSMEs). • After the revision, the investment limit has been revised upwards and an additional criterion of turnover has been introduced. • As per the revised definition: • MICRO: Any firm with an investment of up to ₹1 crore and turnover under ₹5 crore will be classified as ‘micro.’ • SMALL: A company with an investment of up to ₹10 crore and a turnover of up to ₹50 crore will be classified as ‘small’. • MEDIUM: A firm with an investment of up to ₹20 crore and a turnover under ₹100 crore will be classified as ‘medium.’

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Details:

• The government has now decided to further revise the criteria for ‘Medium sized units’ by enhancing the investment and turnover limits to up to ₹50 crore and ₹200 crore respectively. • The government plans to raise MSMEs’ contribution to India’s exports to 60% from the 48% at present, and also boost the sector’s contribution to the country’s GDP from 29% currently to 50%. • It is also intended to create five crore new jobs. • The government plans to take advantage of the ‘blessing in disguise’ posed by the global ‘hatred against China’. Significance:

• Upward revision in their investment limit will help in the seamless expansion of small and medium businesses in the country. A robust MSME sector is key to improving the economic strength and resilience of the country and making it highly self-reliant and globally competitive. • There are around 6.3 crore MSME units in the country, with over 99 per cent categorised as small units. • The old definition that had a lower threshold prevented the companies to grow, thus, translating into losing out on benefits. • The new higher limits in investment and turnover may help companies grow. • It will help bring an increased number of MSME units access to institutional working capital.

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• This change matters for enterprises because there are benefits linked to it. These benefits range from loans under the priority sector lending scheme, a 25 per cent share in procurement by government and government-owned companies, promoters being allowed to bid for stressed assets under insolvency law as well as relief from the government and regulators from time to time.

10. Super Cyclone Amphan closer to mainland

The storm system in the Bay of Bengal, Amphan, developed into a super cyclone and is expected to make landfall along the West Bengal-Bangladesh coast very soon.

Super Cyclone Amphan

• Cyclone Amphan is a tropical cyclone formed over the Bay of Bengal that has intensified and likely to turn into a “super cyclonic storm (maximum wind speed is 224 kmph)”. • It has been named by Thailand. • Amphan is the equivalent of a Category 5 hurricane on the Saffir-Simpson Hurricane Wind Scale. • By the time it makes landfall in West Bengal, Amphan is expected to tone down into a category 4 Extremely Severe Cyclonic (ESC) storm with a wind speed of 165-175 kmph and gusting to 195 kmph.

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What makes it a nightmare?

• This is the first super cyclone to form in the Bay of Bengal after the 1999 super cyclone that hit Odisha and claimed more than 10,000 lives. • It is the third super cyclone to occur in the North Indian Ocean region after 1999 which comprises of the Bay of Bengal, the Arabian Sea and the northern part of the Indian Ocean. • The other two super cyclones were Cyclone Kyarr in 2019 and Cyclone Gonu in 2007.

Recent cyclones in the region

• From 1965 to 2017, the Bay of Bengal and the Arabian Sea collectively registered 46 ‘severe cyclonic storms’. • More than half of them occurred between October and December. • Seven of them occurred in May and only two (in 1966 and 1976) were recorded in April, according to data from the IMDs cyclone statistics unit. • Cyclone Phailin in 2013 and the super cyclone of 1999 — both of which hit coastal Odisha — have been the most powerful cyclones in the Bay of Bengal in the past two decades in terms of wind speed. • Last year, Fani, which was an ESC made landfall in Odisha and ravaged the State, claiming at least 40 lives.

Tropical Cyclones

• Cyclones are formed over slightly warm ocean waters.

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• The temperature of the top layer of the sea, up to a depth of about 60 metres, need to be at least 28°C to support the formation of a cyclone. • This explains why the April-May and October-December periods are conducive for cyclones. • Then, the low level of air above the waters needs to have an ‘anticlockwise’ rotation (in the northern hemisphere; clockwise in the southern hemisphere). • During these periods, there is an ITCZ in the Bay of Bengal whose southern boundary experiences winds from west to east, while the northern boundary has winds flowing east to west. • This induces the anticlockwise rotation of the air. • Once formed, cyclones in this area usually move northwest. As it travels over the sea, the cyclone gathers more moist air from the warm sea and adds to its heft.

What strengthens them?

• A thumb rule for cyclones is that the more time they spend over the seas, the stronger they become. • Hurricanes around the US, which originate in the vast open Pacific Ocean, are usually much stronger than the tropical cyclones in the Bay of Bengal, a relatively narrow and enclosed region. • The cyclones originating here, after hitting the landmass, decay rapidly due to friction and absence of moisture.

Grading of Cyclones

• Tropical cyclones in the Bay of Bengal are graded according to maximum wind speeds at their centre. • At the lower end are depressions that generate wind speeds of 30 to 60 km per hour, followed by:

1. cyclonic storms (61 to 88 kmph) 2. severe cyclonic storms (89 to 117 kmph) 3. very severe cyclonic storms (118 to 166 kmph) 4. extremely severe cyclonic storms (167 to 221 kmph) and 5. super cyclones (222 kmph or higher)

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11. Objections to Etalin Hydroelectric Project

Why in News Recently, some conservationists and former members of the National Board of Wildlife (NBWL) have sought rejection of approval for the Etalin Hydroelectric Project in the Dibang Valley, Arunachal Pradesh.

Key Points ▪ The Project is based on the river Dibang and is proposed to be completed in 7 years.

o Dibang is a tributary of the Brahmaputra river which flows through the states of Arunachal Pradesh and Assam. ▪ It envisages construction of two dams over the tributaries of Dibang: Dir and Tangon. ▪ The Project falls under the richest bio-geographical province of the Himalayan zone and would be located at the junction of major biogeographic zones like Palaearctic Zone and Indo-Malayan Zone. ▪ It is expected to be one of the biggest hydropower projects in India in terms of installed capacity. Biogeographic Regions

▪ These are the large distinctive units of similar ecology, biome representation, community and species. ▪ Originally, six biogeographic regions were identified: Palearctic (Europe and Asia), Nearctic (North America), Neotropical (Mexico, Central and South America), Ethiopian/Afrotropic (Africa), Oriental/Indo-Malayan (Southeast Asia, Indonesia) and Australian (Australia and New Guinea). Currently, eight are recognised since the addition of Oceania (Polynesia, Fiji and Micronesia) and Antarctica.

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Palaearctic Zone

▪ This includes arctic and temperate Eurasia and all islands surrounding the continent in the Arctic, in the sea of Japan and the eastern half of the North Atlantic. ▪ It also includes the Macaronesian islands, Mediterranean North Africa and Arabia. Indo-Malayan Zone

▪ Its natural boundaries contain tropical Asia from the Balochistan mountains of Pakistan eastward to the Indian subcontinent south of the Himalayan crest, including the tropical southern fringe of China with Taiwan, the whole of Southeast Asia and the Philippines. Background ▪ The Forest Advisory Committee (FAC) of the Ministry of Environment Ministry of Environment, Forest and Climate Change (MoEFCC) highlighted that the project will clear 2.7 lakh trees in subtropical evergreen broad-leaved forest and subtropical rainforests. ▪ According to a sub-committee of FAC, the project may be allowed subject to the condition that the financial outlay of Wildlife Conservation Plan be deposited to the Forest Department by user agency on the basis of a study done by the Wildlife Institute of India (WII). ▪ However, there were protests by green groups due to which MoEFCC transferred the project to the Union Power Ministry.

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Criticism ▪ Conservationists highlighted that the FAC sub-committee ignored established tenets of forest conservation and related legal issues while recommending the proposal. ▪ FAC ignored the threat of forest fragmentation.

o Forest fragmentation results from ill-planned intrusion of developmental projects into contiguous landscapes with natural forests and threatens rare floral and faunal species in a biodiversity hotspot. ▪ FAC’s site inspection report was also questioned for leaving out key details like number of grids across an altitudinal range inspected and the status of vegetation there, direct and indirect signs of wild animals listed in the various schedules of the Wildlife Protection Act, 1972 and overall appreciation of the ecological value of the area. ▪ The inadequacy of the Environment Impact Assessment report on Etalin was also highlighted.

o Wildlife officials ignored observations which include the threat to 25 globally endangered mammal and bird species in the area to be affected. ▪ The proposed mitigation measures like setting up butterfly and reptile parks are inadequate and insufficient.

12. Labour rights are in free fall Context:

• Under compulsion of reviving the economy, the state governments are amending and relaxing labour laws. Government’s arguments:

• The government’s strategy visualises effecting an economic turnaround through improvement of India’s rank in the “ease of doing business” index, thereby attracting foreign direct investment (FDI) and enthusing domestic private capital. • Industry associations and government are projecting these changes as necessary for enticing FDI relocating from China. • Flexible labour and environmental laws are key instruments through which business sentiments are being sought to be improved. • The extension of a work day up to 12 hours would help address the problem of labour shortages at a time when social distancing is the norm.

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Concerns: Labour law dilution:

• There seems to be steady effort at easing labour laws in favour of the businesses. • Elements of labour law dilution were already visible in the four labour codes aimed at consolidating 44 central labour laws (on wages, industrial relations, social security and occupational safety, health and working conditions). • The COVID crisis seems to have provided an opportunity for the government to amplify its efforts in labour law reforms. Minimum Wages Act: Under Labour Code:

• The Code on Wages, 2019 makes a distinction between national minimum wage and national floor wage. • The minimum wage calculated by a government-appointed committee in 2018 was ₹375 per day, whereas, the national floor wage in the same year was ₹176 per day. • The State governments, under the wages code, are directed to set their minimum wages only above the national floor wage. Thus, States, vying for private investments, would invariably consider the national floor wage, and this in effect would dilute the idea of minimum wage. Under COVID crisis:

• Some states under the current crisis have sought to exempt employers from complying with the Minimum Wages Act 1948. Industrial Disputes Act: Under Labour Code:

• The Industrial Relations Code, 2019, proposes to raise the membership threshold of a trade union from 15% to 75% of the workforce in an establishment, for it to be recognised as the negotiating union. Under COVID crisis:

• Some states have sought to exempt employers from complying with the Industrial Disputes Act, 1947. • Therefore, employers can hire and fire workers at will. • Employers are allowed to offer “fixed-term” employment without any restrictions on the number of renewals.

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The M.P. ordinance states that for new establishments, provisions guiding industrial dispute resolution, strikes/lockouts and trade unions would cease to operate. Labour inspection: Under Labour Code:

• The wages code had severely eroded the inspection mechanism by snatching away the power of inspectors to conduct surprise checks. Even when violations in law are detected, they are mandated to advise, provide information and facilitate employers to comply with the law. Under COVID crisis:

• Some states under new amendments have sought to exempt factories employing less than 50 workers from regular inspections and allow third-party inspections. Undemocratic route:

• The governments have chosen the path of promulgating ordinances and notifying rules, in which labour rights have been suspended without discussion and deliberation. Period of suspension:

• The length of suspension of the labour rights varies from 1,000 days (M.P.) to three years (U.P.). There is no basis to expect that the impact of the lockdown will stretch for so long and it appears that State governments are competing to project themselves as investor-friendly. Doubtful impact:

• There are doubts over whether the suspension of labour rights, aimed at reducing labour cost, would stimulate private investment and ensure recovery. • Past experience does not inspire confidence. • The Reserve Bank of India’s policies designed to reduce the cost of borrowing capital has not been able to increase credit takeoff. • Reductions in corporate tax made no impact in boosting private capital and reviving growth in subsequent quarters. Banking on private investment for economic recovery when the economy is facing acute uncertainty may turn out to be futile.

13. Economic Stimulus-III

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Why in News

Recently, the Union Finance Minister announced the measures to strengthen Infrastructure Logistics, Capacity Building, Governance and Administrative Reforms for Agriculture, Fisheries and Food Processing Sectors as part of the third tranche of Atmanirbhar Bharat Abhiyan.

▪ The announced measures also form a part of the ₹20 lakh crore economic stimulus package to deal with the Covid-19 pandemic. ▪ Earlier, the Economic Stimulus-I and the Economic Stimulus-II were announced.

Key Points

▪ Agri Infrastructure Fund o Financing facilities of ₹1,00,000 crore for funding Agriculture Infrastructure Projects at farm-gate and aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organizations (FPOs), Agriculture entrepreneurs, Start-ups, etc.). o Funds will be created immediately. ▪ Formalisation of Micro Food Enterprises o A ₹10,000 crore scheme promoting ‘Vocal for Local with Global outreach’ will be launched to help 2 lakh Micro Food Enterprises (MFEs) who need technical upgradation to attain Food Safety and Standards Authority of India (FSSAI) food standards, build brands and marketing. o Existing micro food enterprises, FPOs, Self Help Groups (SHGs) and Cooperatives will be supported. o The focus will be on women and SC/ST owned units and those in Aspirational districts and a Cluster based approach (e.g. Mango in Uttar Pradesh, Tomato in Karnataka, Chilli in Andhra Pradesh, Orange in Maharashtra etc.) will be followed. ▪ Pradhan Mantri Matsya Sampada Yojana o The scheme will be launched for integrated, sustainable, inclusive development of marine and inland fisheries. o ₹11,000 crore for activities in Marine, Inland fisheries and Aquaculture and ₹9000 crore for Infrastructure (fishing harbours, cold chain, markets etc) shall be provided. o The focus will be on Islands, Himalayan States, North-east and Aspirational Districts. ▪ National Animal Disease Control Programme o National Animal Disease Control Programme for Foot and Mouth Disease (FMD) and Brucellosis launched with a total outlay of ₹13,343

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crore to ensure 100% vaccination of cattle, buffalo, sheep, goat and pig population. ▪ Animal Husbandry Infrastructure Development Fund o Under it, a fund of ₹15,000 crore will be set up, with an aim to support private investment in Dairy Processing, value addition and cattle feed infrastructure. • Animal rearing or husbandry is considered an associate business with agricultural activities in rural India and is an integral component of Indian agriculture, supporting the livelihood of the rural population. o Incentives will be given for establishing plants for export of niche products. • A niche product is a product targeting a specific section of a larger industry and market. Niche products are often (but not always) more expensive than more generic products. • Example: Organic foods, Speciality foodstuff like high-quality coffee, Customisable products, etc. ▪ Promotion of Herbal Cultivation o 10,00,000 hectare will be covered under Herbal cultivation in next two years with an outlay of ₹4,000 crore which will lead to ₹5,000 crore income generation for farmers. o The National Medicinal Plants Board (NMPB) has supported 2.25 lakh hectare area under cultivation of medicinal plants and will bring 800- hectare area by developing a corridor of medicinal plants along the banks of Ganga. • NMPB was set up by the Government or India on 24th November, 2000 to promote medicinal plants sector. • Currently, the board is located under the Ministry of AYUSH. ▪ Beekeeping Initiatives o With an outlay of ₹500 crore, Government will implement a scheme for: • Infrastructure development related to Integrated Beekeeping Development Centres, capacity building, collection, marketing and storage centres, post harvest & value addition facilities. ▪ Extension of Operation Greens o Operation Greens run by the Ministry of Food Processing Industries will be extended from Tomatoes, Onion and Potatoes (TOP) to all fruit and vegetables, with an outlay of ₹500 crore. o It will provide 50% subsidy on transportation from surplus to deficit markets, 50% subsidy on storage, including cold storages and will be launched as pilot for the next 6 months and will be extended and expanded. o This will lead to better price realisation to farmers, reduced wastages and affordability of products for consumers.

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▪ Amendments to Essential Commodities Act, 1955 o Under the amendments to the Essential Commodities Act (ESA), agriculture food stuffs including cereals, edible oils, oilseeds, pulses, onions and potatoes shall be deregulated. o Stock limits will be imposed under very exceptional circumstances like national calamities, famine with surge in prices. o Further, no such stock limit shall apply to processors or value chain participants, subject to their installed capacity or to any exporter subject to the export demand. ▪ Agriculture Marketing Reforms o A Central law will be formulated to provide: • Adequate choices to the farmer to sell their produce at remunerative price. • Barrier free Inter-State Trade. • Framework for e-trading of agriculture produce.

Advantages from the Reforms

▪ The two recent reforms of amendment in the ECA and the proposed formulation of a Central law that will not bind farmers to sell their crop only to licensed traders in the Agricultural Produce Market Committee (APMC) mandis of their respective talukas or districts will empower farmers. o ECA will define clear triggers in terms of “price surges” for imposition of stocking limits. o These provisions will be incorporated in the Act itself to remove any scope for administrative ambiguity. o This will help in inflation-targeting within the ceiling of 6% as prescribed by the Reserve Bank of India. ▪ While agriculture is a state subject and state governments have accordingly enacted their own APMC Acts, the new Central law apparently relies on Article 301 (Freedom of trade, commerce and intercourse) of the Constitution along with entries in the Seventh Schedule (defines and specifies allocation of powers and functions between Union and States).

These give powers to the Centre to regulate all interstate and intrastate trade and commerce in foodstuffs, which can be used to create an integrated national market by removing restrictions placed by APMC laws.

14. New law for contract farming

Context:

• Atmanirbhar Bharat Abhiyan economic stimulus package.

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Details:

• A major provision of the Atmanirbhar Bharat Abhiyan economic stimulus package involves the fulfilment of the long-pending agricultural marketing reforms.

Promoting inter-state trade:

• The Centre has been attempting to reform agricultural marketing through a model Act and encouraging States to adopt it. However, given the wide divergence of the laws of different states, these laws have not been effective enough. • In this light, the Union Finance Minister has announced plans to enact a central law to permit barrier-free inter-State trade of farm commodities and e-trading. This will allow farmers to sell produce at attractive prices beyond the current mandi system. • The centre argues that though agricultural marketing comes under the State List, the inter-State trade falls in the central list and the centre can, therefore, make such a law.

Contract farming:

• There are also plans to ensure a facilitative legal framework to oversee contract farming. • This would provide farmers with assured sale prices and quantities even before the crop is sown and also allow private players to invest in inputs and technology in the agricultural sector.

Deregulating produce:

• The Centre will be deregulating the sale of six types of agricultural produce, including cereals, edible oils, oilseeds, pulses, onions and potatoes, by amending the Essential Commodities Act, 1955.

• Stock limits will not be imposed on these commodities except in case of national calamity or famine or an extraordinary surge in prices. These stock limits would not apply to processors and exporters. • The argument for the deregulation is that the Essential Commodities Act was enacted at a time of food scarcity, and needs to reflect current concerns wherein the farmer’s income is as important as ensuring consumer demands.

Investment in infrastructure:

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• The economic stimulus package also includes a plan to invest 1.5 lakh crore rupees to build farm-gate infrastructure and support logistics needs for fish workers, livestock farmers, vegetable growers, beekeepers and related activities.

Significance:

• Some of the reforms being envisaged have been under discussion for over two decades. These have been long overdue reforms.

• The mandi closures during the lockdown had highlighted the urgent need for multiple channels to sell produce. The sought agricultural reforms are seeking to convert this crisis into an opportunity.

• The reforms will have a positive impact on the food processing sector. The reforms will encourage investments in food processing and together with the infrastructure outlays will contribute in shaping a competitive agri value chain, reduce wastages and raise farmer incomes. • These reforms will benefit both farmers and consumers. o The reforms will empower farmers, strengthen agri-food processing linkages and enable demand-driven value added agriculture. o The reforms will contribute towards mitigating post-harvest losses and wastage by giving a fillip to scientific storage facilities. o The reforms will help the small farmers earn additional income by way of value-added agri-produce through food-processing. • The reforms are significant given that the agricultural sector provides livelihoods to about half of India’s workforce.

Concerns:

• Though several agricultural economists and farm activists have welcomed the reform and investment announcements, they have also expressed concerns over the lack of immediate support to help farmers survive the current crisis. • They have argued that currently, it is the time for relief, which should be prioritised over reform.

15. Stop the return to laissez faire

The editorial argues that labour laws are civilizational goals and cannot be trumped on the excuse of a pandemic. Issues:

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• Through the public health crisis created by the COVID-19 pandemic, workers are being abandoned by their employers and, above all, by the state. • The workers’ right to go home was curbed using the Disaster Management Act, 2005. • Adequate provisions were not made available for their food, shelter or medical relief. • Wage payments were not ensured, and the state’s cash and food relief did not cover most workers. • When the centre issued orders permitting their return to their home States, state governments responded by delaying travel facilities for the workers to ensure uninterrupted supply of labour for employers. • Employers now want labour laws to be relaxed. • The Uttar Pradesh government has issued an ordinance keeping in abeyance almost all labour statutes including laws on maternity benefits and gratuity; the Factories Act, 1948; the Minimum Wages Act, 1948; the Industrial Establishments (Standing Orders) Act, 1946; and the Trade Unions Act, 1926. • Several States have exempted industries from complying with various provisions of laws. • The Confederation of Indian Industry has suggested 12-hour work shifts and that governments issue directions to make workers join duty failing which the workers would face penal actions. Thus, after an organised abandonment of the unorganised workforce, the employers want the state to reintroduce laissez-faire and a system of indenture for the organised workforce too. This will take away the protection conferred on organised labour by Parliament. Colonial exploitation:

• What India is witnessing today bears a horrifying resemblance to what happened over 150 years ago in British India. • The move is reminiscent of the barbaric system of indentured labour introduced through the Bengal Regulations VII, 1819 for the British planters in Assam tea estates. • Workers had to work under a five-year contract and desertion was made punishable. Later, the Transport of Native Labourers’ Act, 1863 was passed in Bengal. • It strengthened control of the employers and even enabled them to detain labourers in the district of employment and imprison them for six months. Bengal Act VI of 1865 was later passed. • It deployed Special Emigration Police to prevent labourers from leaving, and return them to the plantation after detention.

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Factory workers too faced severe exploitation and were made to work 16-hour days for a pittance. Their protests led to the Factories Act of 1911 which introduced 12-hour work shifts. Yet, the low wages, arbitrary wage cuts and other harsh conditions forced workers into debt slavery. Evolution of Labour Laws in India:

• The labour laws in India have emerged out of workers’ struggles, which were very much part of the freedom movement against oppressive colonial industrialists. • Since the 1920s there were a series of strikes and agitations for better working conditions. Several trade unionists were arrested under the Defence of India Rules. • The workers’ demands were supported by our political leaders. • Britain was forced to appoint the Royal Commission on Labour, which gave a report in 1935. • The Government of India Act, 1935 enabled greater representation of Indians in law-making. • This resulted in reforms, which are forerunners to the present labour enactments. • The indentured plantation labour saw relief in the form of the Plantations Labour Act, 1951. • By a democratic legislative process, the Parliament stepped in to protect labour. Dignity through democracy

• The Factories Act lays down eight-hour work shifts, with overtime wages, weekly offs, leave with wages and measures for health, hygiene and safety. • The Industrial Disputes Act provides for workers’ participation to resolve wage and other disputes through negotiations so that strikes/lockouts, unjust retrenchments and dismissals are avoided. • The Minimum Wages Act ensures wages below which it is not possible to subsist. • These enactments further the Directive Principles of State Policy and protect the right to life and the right against exploitation under Articles 21 and 23. • Trade unions have played critical roles in transforming the life of a worker from that of servitude to one of dignity. Any move to undo these laws will push the workers a century backwards. • Considering the underlying constitutional goals of these laws, Parliament did not delegate to the executive any blanket powers of exemption. • Section 5 of the Factories Act empowers the State governments to exempt only in case of a “public emergency”, which is explained as a “grave emergency

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whereby the security of India or any part of the territory thereof is threatened, whether by war or external aggression or internal disturbance”. • There is no such threat to the security of India now. • Hours of work or holidays cannot be exempted even for public institutions. Section 36B of the Industrial Disputes Act enables exemption for a government industry only if provisions exist for investigations and settlements. No statutory support:

• The orders of the State governments lack statutory support. • Labour is a concurrent subject in the Constitution and most pieces of labour legislation are Central enactments. • The Constitution does not envisage approval by the President of a State Ordinance which makes a whole slew of laws enacted by Parliament inoperable in the absence of corresponding legislations on the same subject. • Almost all labour contracts are now governed by statutes, settlements or adjudicated awards arrived through democratic processes in which labour has been accorded at least procedural equality. Such procedures ensure progress of a nation. • In the Life Insurance Corporation v. D. J. Bahadur & Ors (1980) case, the Supreme Court highlighted that any changes in the conditions of service can be only through a democratic process of negotiations or legislation. Conclusion:

• The orders and ordinances issued by the State governments are undemocratic and unconstitutional. The existing conditions of labour will have to be continued. • Global corporations had their origins in instruments of colonialism and their legacy was inherited by Indian capital post-Independence. The resurgence of such a colonial mindset is a danger to society and the well-being of millions and puts at risk the health and safety of not only the workforce but their families too. • In the unequal bargaining power between capital and labour, regulatory laws provide a countervailing balance and ensure the dignity of labour. • Governments have a constitutional duty to ensure just, humane conditions of work and maternity benefits. • The health and strength of the workers cannot be abused by force of economic necessity.

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16.“Tour of Duty (ToD) Scheme” for Short Service in Indian Army

The Indian Army has planned to take civilians on a three-year “Tour of Duty” (ToD) or short service” on a trial basis to serve as officers and in other ranks initially for a limited number of vacancies which will be expanded later. Tour of Duty Scheme

• Indian Army is thinking to induct youngsters for three-year “Tour of Duty (ToD) tenure as both officers and jawans. • The ToD scheme, in case approved, will initially be launched with around 100 vacancies for officers and 1,000 for jawans. • As per Army, a ToD officer will earn Rs 80,000-90,000 per month. After ToD tenure, youngsters can find lucrative private and public sector jobs. • The Army says it will restructure the cadre and help modernize the force.

Advantages of ToD Scheme

• ToD is expected to result in a significant reduction in the expenditure on pay and pensions and free up funds for the Army’s modernization. • The overall purpose of the ToD concept is ‘internship/temporary experience’. • There will be no requirement of attractive severance packages, resettlement courses, professional encashment training leave, ex-servicemen status, ex-servicemen Contributory Health Scheme for ToD officers and other ranks. • Analysing the cost of training incurred on each personnel compared with the limited employment of the manpower for three years, the proposal calculates that it will indeed have a positive benefit.

The cost factor

• The approximate cost incurred is nearly ₹5.12 crore and ₹6.83 crores for a Short Service Commission (SSC) officer if he or she is released from service after 10 and 14 years, respectively. • The costs for those released after a three-year ToD is just ₹80-85 lakh. • Similarly, estimates for a jawan with 17 years of service as compared to a ToD recruit with three years’ service shows that the prospective lifetime savings of just one jawan are ₹11.5 crores. • Thus, savings for only 1,000 jawans could be ₹11,000 crores, which could be used for the much-needed modernization of the Army.

Other benefits

• This scheme is for those who did not want a full career in the Army but still wanted to put on the uniform.

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• Individuals who opted for ToD would get a much higher salary than their peers in the corporate sector. • They would also have an edge after leaving the service and going to the corporate sector. • The Army hoped that this would attract individuals from the best colleges, including the Indian Institutes of Technology.

Permanent Commission (PC) Vs. Short Service Commission (SSC)

• SSC means an officer’s career will be of a limited period in the Indian Armed Forces whereas a PC means they shall continue to serve in the Indian Armed Forces, till they retire. • The officers inducted through the SSC usually serve for a period of 14 years. At the end of 10 years, the officers have three options. • A PC entitles an officer to serve in the Navy till he/she retires unlike SSC, which is currently for 10 years and can be extended by four more years, or a total of 14 years. • They can either select for a PC or opt-out or have the option of a 4-years extension. They can resign at any time during this period of 4 years extension.

17. Riding roughshod over State governments

Context:

• The central government issuing guidelines to the state governments over the management of the COVID-19 pandemic. Background: Federalism:

• Federalism signifies the independence of the Union and State governments of a country, in their own spheres. 7th schedule:

• Under the Indian scheme of federalism, there is division of powers between the central and state governments. The 7th Schedule of the Indian Constitution contains three lists – Union list, State list and Concurrent list. • Parliament can legislate on matters under the Union List, State legislatures can legislate on matters under the State List and both Parliament and State legislatures can legislate on matters under the Concurrent List. • The residuary power to legislate on matters that are not mentioned in either of the lists rests with Parliament.

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• As per Articles 73 and 162, the executive power of the Centre and the States is co-extensive with their respective legislative powers, which means that the Central and State governments can only take executive actions in matters where Parliament and State legislatures, respectively, have powers to legislate. Principle of Harmonious Construction:

• The principle of harmonious construction was laid down by the Supreme Court in a number of judgments, including in Godfrey Phillips v. State of U.P. & Ors (2005). • The judgment notes that the entries in the legislative lists must be interpreted harmoniously, and in the event of any overlap between two or more entries, the specific subject matter contained in a particular entry must be deemed to have been excluded from another entry which may deal with a more general subject matter. Details:

• The Central government has been issuing guidelines to the state governments. The guidelines contain varying restrictions on public activity and commerce which the States are expected to enforce. • The Centre has been issuing guidelines under the Disaster Management Act of 2005. • The Disaster Management Act allows the Centre to issue guidelines, directions or orders to the States for mitigating the effects of any disaster. The Centre has directed the State governments to strictly enforce the set of guidelines, with the States only being allowed to increase and not dilute the restrictions. Concerns:

• The current approach seems to be counterproductive, putting the federal structure of India under strain, and seems to be an overreach of powers by the Central government. Top down approach:

• The Central government has so far followed a mostly top-down approach in tackling the COVID-19 pandemic. There seems to be very limited consultation with the states with respect to policy formulation. Counterproductive:

• Though a national level coordination and collaborative effort is necessary, the one size fits all approach seems to be having counterproductive results. • The Central government, in its latest guidelines, has classified all districts in the country as red, orange or green zones in a bid to lift lockdown restrictions in an area-specific manner. Some States/Union Territories

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objected to this classification. The states have argued that such a classification would lead to restrictions of economic activity in the entire district area even when cases had been reported only from a small portion of that district. They have called for micro zonation of hotspots beyond the district levels. • Kerala has performed relatively well in containing the pandemic and is in a position to relax the existing guidelines. However, the Central government has asked Kerala to refrain from relaxing restrictions in the State. This move seems to be questioning the wisdom and judgment of the State government which has a better understanding of the ground conditions. Division of powers:

• The Supreme Court has held time and again that federalism is a basic feature of the Constitution and stated that although the Union enjoys many more powers than States, the States are still sovereign. • Reasonable and effective division of powers is the bedrock of a federal structure. This aspect seems to be under threat due to the government’s recent moves. Disaster Management Act:

• Disaster management does not find mention in either State list or Concurrent list, nor does any particular entry in Union list specifically deal with this. Thus, the Disaster Management Act could only have been enacted by Parliament in exercise of its residuary powers of legislation. • ‘Public health and sanitation’ is a specific field of legislation under the State list. This would imply that States have the exclusive right to legislate and act on matters concerning public health. • The author argues that the Disaster Management Act cannot be applied to pandemics in view of the fact that the power to legislate on public health is vested specifically and exclusively with the States. • The author argues that the Centre’s guidelines and directions to the States for dealing with the pandemic entrench upon the state’s power to legislate and take executive action in the field of public health and hence terms it unconstitutional. Prevention of inter-State spread of contagious and infectious diseases:

• The author argues that Disaster Management Act is concerned with disasters in general and not pandemics in particular. • ‘Prevention of inter-State spread of contagious and infectious diseases’ falls under the Concurrent list, wherein both Parliament and State legislatures are competent to legislate on related matters.

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• ‘Prevention of inter-State spread of contagious and infectious diseases’ being a specific legislative head provided in the Concurrent list, the same must be deemed to have been excluded from Parliament’s residuary legislative powers. • Therefore, the Disaster Management Act, which has been enacted under Parliament’s residuary legislative powers, cannot be applied to the prevention of inter-State spread of contagious and infectious diseases based on the principle of harmonious construction. Neglecting existing laws:

• The Epidemic Diseases Act, 1897, has the specific objective of preventing the spread of dangerous epidemic diseases. • Under this Act, the State governments have the prerogative to take appropriate measures for arresting the outbreak or spread of a contagious or infectious disease in their respective States. The Central government’s powers are limited to taking measures for inspecting and detaining persons travelling out of or into the country. • Under this Act, the Central Government is not empowered to issue directions to the States to contain the pandemic within the State, but it can only deal with inter-State spread of the disease. The Central Government’s resorting to the Disaster Management Act instead of the Epidemic Diseases Act has enabled the central government to ride roughshod over State governments.

18. PM announces 20 lakh crore economic stimulus package

Context: The PM announced an economic stimulus package for ₹20 lakh crore (estimated at 10% of the GDP), with a clearly defined leap towards economic reforms with an aim to transform the country to Atmanirbhar Bharat, or a self-reliant, resilient India. Details:

• Clarifying that by self-reliance he did not mean insularity and suspicion of the world as in the past, but embracing the world in the spirit of Vasudheva Kutumbakam (the world is one family). • It was said that the edifice of this self-reliant India would be based on the five pillars of economy, infrastructure, demography, technologically driven systems and to strengthen demand and supply chains, with the supply chains being based on local sourcing. Economic Stimulus Package:

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• This amount in the economic stimulus package includes packages already announced at the beginning of the lockdown, incorporating a slew of measures from the RBI and the payouts under the Pradhan Mantri Garib Kalyan Yojana. • The Prime Minister said the economic package would not be based on incremental changes, but a quantum leap in bold reforms with regard to land, labour, law and liquidity. Concerns:

• PM has included the actions of RBI, India’s central bank, as part of the government’s fiscal package, even though only the government controls the fiscal policy and not the RBI (which controls the ‘monetary’ policy). Why shouldn’t RBI’s package be included in the overall package?

• Direct expenditure by a government — either by way of wage subsidy or direct benefit transfer or payment of salaries or payment for construction of a new hospital, etc. — immediately and necessarily stimulates the economy. In other words, that money necessarily reaches the people, either as someone’s salary or someone’s purchase. • But credit easing by the RBI, that is, making more money available to the banks so that they can lend to the broader economy is not like government expenditure. That’s because, especially in times of crisis, banks may take that money from RBI and elsewhere and, instead of lending it, park it back with the RBI. • At the last count, Indian banks had parked Rs 8.5 lakh crore with the central bank. So in terms of calculations, RBI has given a stimulus of Rs 6 lakh crore. But the reality is that it has received an even bigger amount back from the banks. Note:

• The Union Finance Minister is expected to give details of the package.

19. Andhra Pradesh to send back 13,000 tonne styrene to South Korea

Context:

The Andhra Pradesh Government has begun the process of transporting 13,000 tonnes of styrene gas in two consignments of 8,000 tonnes and 5,000 tonnes to South Korea.

Background:

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A gas leak claimed at least 11 lives and affected thousands of residents in five villages in Visakhapatnam in Andhra Pradesh. The source of the leak was a styrene plant owned by South Korean electronics giant LG.

Post-disaster response:

• Post-disaster recovery planning is a shared responsibility between individuals, private businesses and industries, state and local governments, and the federal government. • Post-disaster recovery planning is defined as developing a set of strategies to assist a community in rebuilding after a disaster occurs. • The response phase post disaster includes fulfilling basic humanitarian needs of victims, assistance by regional, national and international bodies, etc.

Details:

• 13,000 tonnes of styrene gas is being transported to South Korea. • The remaining gas in the storage tanks of the factory that leaked has been converted to 100% polymer. • Sanitisation of the villages in the vicinity of the factory has almost been completed. • The government is also drawing up plans to shift the hazardous industries to places far away from cities and towns to avert such accidents. o The need for relocation of hazardous industries and strict compliance with safety protocols stipulated by the Central government has been emphasised. • The state government has directed the officials of industries and factories departments to conduct a safety audit, particularly those involved in the manufacturing and processing of harmful chemicals. • Officials have been instructed by the Chief Minister to pay ₹10,000 to each resident of the five affected villages irrespective of their age and credit it to the unencumbered bank accounts of the women in those families.

20 . RBI’s Gold Reserve Increased

Why in News According to the ‘Report on Management of Foreign Exchange Reserves’, the Reserve Bank of India’s total holdings of gold reached 653.01 tonnes in the financial year 2019- 20.

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▪ The Reserve Bank of India publishes half-yearly reports on management of foreign exchange reserves as part of its efforts towards enhanced transparency and levels of disclosure. ▪ These reports are prepared half yearly with reference to the position as at end-March and end-September each year. Key Points ▪ The RBI’s total gold reserves were 612.56 tonnes in the preceding fiscal ended March 2019. ▪ The addition of 40.45 tonnes of gold has raised the value of gold reserves to $30.57 billion by March 2020 from $23.07 billion in March 2019. ▪ The share of gold in the total foreign exchange (forex) reserves rose from about 5.59% as of March 2019 to about 6.40% by March 2020.

o India’s Forex Reserve include: Foreign Currency Assets, Gold reserves, Special Drawing Rights and Reserve position with the International Monetary Fund (IMF) ▪ Around 360.71 tonnes of gold is held overseas in safe custody with the Bank of England and the Bank for International Settlements, while the remaining gold is held domestically. ▪ The gold reserves will help the central banks around the globe to focus on the measures needed to contain the economic impact of Covid-19. ▪ Gains or losses on valuation of foreign currency assets and gold due to movements in the exchange rates and/or price of gold are booked under a balance sheet head named the Currency and Gold Revaluation Account (CGRA).

o CGRA represents the value of the gold and foreign currency that the RBI holds on behalf of India. o It shows funds that are available to compensate RBI’s loss in the value of gold and foreign exchange reserve holdings. o The balances in CGRA provide a buffer against exchange rate/gold price fluctuations. Gold & Economy ▪ As Currency:

o Gold was used as the world reserve currency up through most of the 20th century. The United States used the gold standard until 1971. o The paper money had to be backed up by equal amounts of gold in their reserves.

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o Although the gold standard has been discontinued, some economists feel that we should return to it due to the volatility of the U.S. dollar and other currencies. ▪ As a hedge against inflation:

o The demand for gold increases during inflationary times due to its inherent value and limited supply. As it cannot be diluted, gold is able to retain value much better than other forms of currency. ▪ Strength of Currency:

o When a country imports more than it exports, the value of its currency will decline. o On the other hand, the value of its currency will increase when a country is a net exporter. o Thus, a country that exports gold or has access to gold reserves will see an increase in the strength of its currency when gold prices increase, since this increases the value of the country's total exports.

• Since, the central banks rely on printing more money to buy gold, they create an excess supply of the currency. This increases the supply and thereby reduces the value of the currency used to purchase it.

21. Economy and the challenges ahead

Projections of growth and uncertainty

• Various institutions have assessed India’s growth prospects for 2020-21 ranging from 8% (Fitch)to 4.0% (Asian Development Bank). • This wide range indicates the extent of uncertainty and tentative nature of these forecasts. • The International Monetary Fund (IMF) has projected India’s growth at 1.9%, China’s at 1.2%, and the global growth at (-) 3.0%. • The actual growth outcome for India would depend on: 1) the speed at which the economy is opened up 2) the time it takes to contain the spread of virus, and, 3) the government’s policy support.

Health of India economy before the crisis

• India slid into the novel coronavirus crisis on the back of a persistent economic downslide.

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• There was a sustained fall in the saving and investment rates with unutilised capacity in the industrial sector. • In 2019-20, there was a contraction in the Centre’s gross tax revenues in the first 11 months during April 2019 to February 2020, at (-) 0.8%. • These trends continue to beset the Indian economy in this crisis.

Growth prospects for 20-21 from the output side

• In 2019-20, which would serve as the base year, India may show GVA growth of about 4.4%, • This is well below the Central Statistics Office’s second advance estimate of 9%. • The IMF’s GDP growth estimate for 2019-20 is at 2%. • GVA is divided into eight broad sectors. Although all sectors have been disrupted, some may be affected less than the others. We divide the output sectors in four groups. • Group A- This group is likely to suffer minimum disruption. • Agriculture and allied sectors, and public administration, defence. • Despite some labour shortage issues, agriculture sector may show near-normal performance. • The public and defence services have been nearly fully active, with the health services at the forefront of the the COVID-19 fight. • For the group A sectors, it may be possible to achieve 90% of the 2019-20 growth performance. • Group D- This group is likely to suffer maximum disruption. • This includes, trade, hotels, restaurants, travel and tourism under the broad group of “Trade, Hotels, Transport, Storage and Communications”. • This sector may be able to show 30% of 2019-20 growth performance. • Group B • This comprises sectors which may suffer average disruption showing 50% of 2019-20 growth performance. • These sectors are mining and quarrying, electricity, gas, water supply and other utility services, construction, and financial, real estate and professional services. • Group C • In this group come manufacturing which has suffered significant growth erosion in 2019-20. • It is feasible to stimulate this sector by supporting demand. • In this case a 40% performance factor on the average growth of the preceding three years is applied.

So, what are the estimates for 2020-21 GVA?

• Considering these four groups together, a GVA growth of 2.9% is estimated for 2020- 21.

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• Realising this requires strong policy support, particularly for the manufacturing sector which has a weight of 17.4%. • It is also based on the assumption that the Indian economy may move on to positive growth after the first quarter. • In the first quarter, GVA growth will be negative.

Policy support for the growth

• Monetary policy initiatives undertaken so far include a reduction in the repo rate to 4.4%, the reverse repo rate to 3.75%, and cash reserve ratio to 3%. • The Reserve Bank of India has also opened several special financing facilities. • These measures need to be supplemented by an appropriate fiscal stimulus. • Cash-constrained central and State governments have taken expenditure reducing measures by announcing freezing of enhancements of dearness allowance and dearness relief. • This may result in savings of ₹37,000 crore for the Centre and about ₹82,000 crore for the States, together amounting to 6% of GDP. • There is also talk of substantially reducing non-salary defence expenditure. • With lower petroleum prices, fertilizer and petroleum subsidies may be reduced. • These expenditure cuts are contemplated to keep the fiscal deficit under some control.

Fiscal stimulus and fiscal deficit

• Fiscal stimulus can be of three types: • 1) Relief expenditure for protecting the poor and the marginalised. • 2) Demand-supporting expenditure for increasing personal disposable incomes or government’s purchases of goods and services, including expanded health-care expenditure imposed by the novel coronavirus, and, • 3) Bailouts for industry and financial institutions. • The Centre had earlier announced a relief package of ₹1.7-lakh crore. • The Centre’s budgeted fiscal deficit of 3.5% of GDP may have to be enhanced substantially to 1) make up for the shortfall in budgeted revenues; 2) account for a lower than projected nominal GDP for 2020-21, 3) provide for a stimulus. • Thus, the Centre’s fiscal deficit may increase to 6.0% of GDP. • Expenditure on the construction of hospitals, roads and other infrastructure and purchase of health-related equipment and medicines require prioritisation. • These expenditures will have high multiplier effects. • Similar initiatives may be undertaken by the State governments which may also enhance their combined fiscal deficit to about 0% of GDP to account for 3.0% of GDP under their respective Fiscal Responsibility Legislation/Law and to provide for the shortfall in their revenues and some stimulus.

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Challenges

• Financing of the fiscal deficit poses a major challenge this year. • On the demand side, the Central (6.0%) and State governments (4.0%) and Central and State public sector undertakings (3.5%). • These together present a total public sector borrowing requirement (PSBR) of 13.5% of GDP. • Against this, the total available resources may at best be 9.5% of GDP. • The gap of 4.0% points of GDP may result in increased cost of borrowing for the Central and State governments.

Conclusion The gap in requirement of resources and availability may be bridged by enhancing net capital inflows including borrowing from abroad and by monetising some part of the Centre’s deficit. The monetisation of debt can at best be a one-time effort. This cannot become a general practice.

What is GVA?

• GVA it is a measure of total output and income in the economy. • It provides the rupee value for the amount of goods and services produced in an economy after deducting the cost of inputs and raw materials that have gone into the production of those goods and services. • It also gives sector-specific picture like what is the growth in an area, industry or sector of an economy. • While GVA gives a picture of the state of economic activity from the producers’ side or supply side, the GDP gives the picture from the consumers’ side or demand perspective. • Both measures need not match because of the difference in treatment of net taxes. • GDP = GVA + taxes on products – subsidies on products

22. Vizag gas leak claims 11 lives; over 350 hospitalised

Context: A gas leak has claimed at least 11 lives and affected thousands of residents in five villages in Visakhapatnam in Andhra Pradesh. The source of the leak was a styrene plant owned by South Korean electronics giant LG. Details:

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• Styrene monomer gas leaked from a chemical plant belonging to LG Polymers India, whose parent company is LG, the South Korean electronics giant. • Taking cognizance of the gas leak accident on its own, the Andhra Pradesh High Court has directed the Central and State governments to explain the laws applicable to it. What caused the leak?

• A statement from LG Polymers said that stagnation and changes in temperature inside the storage tank could have resulted in auto polymerization and could have caused vapourisation. Were safety protocols in place?

• Styrene has to be stored in gas tanks under 20°C to keep it stable. • The temperature has to be continuously monitored, and any exposure to light or heat may result in polymerisation. • A team of 15 engineers and officials remained on duty at the factory throughout the lockdown period to monitor it. If temperature rises, inhibitors have to be added to keep the styrene stable. • At LG Chem, an inhibitor tank is attached to the styrene storage tank but it failed to stabilise it in time. As a safety measure, the styrene tanks are never filled to capacity. Why could the inhibitor not prevent what happened?

• As the styrene was stagnant for 44 days, officials said, it was possible that some gas accumulated at the ceiling of the storage tank and its temperature rose beyond the specified 20°C, and the styrene started vaporising and escaped. This is called auto-polymerisation. • However, the exact cause is still being ascertained. • The company has not explained how the storage tank ruptured and the gas escaped. Is it under control?

• The leak has been plugged and NDRF teams moved into the five affected villages and have started opening houses to find out if anyone was stranded inside. • The spread of the gas depends on wind speeds. So far it is estimated that areas within a five kilometre radius have been affected. • Around 500 kg of chemicals have been airlifted from Gujarat and sent to Visakhapatnam to neutralise the impact of the gas leak. • A chemical called 4-Tertiary Butylcatchol (PTBC), available with a chemical factory in Gujarat, was arranged to contain the reaction at an early stage. What is Styrene?

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• It is a flammable liquid that is used in the manufacturing of polystyrene plastics, fiberglass, rubber, and latex. • Styrene is an organic compound with the formula C8H8. It is a derivative of benzene (C6H6). • It is stored in factories as a liquid, but evaporates easily, and has to be kept at temperatures under 20°C. • Styrene is also found in vehicle exhaust, cigarette smoke, and in natural foods like fruits and vegetables. What is styrene used for?

• Styrene is the main raw material for the synthesis of polystyrene, or (C8H8)n. • Polystyrene, in turn, is a versatile plastic that is used to make parts of various appliances such as refrigerators or micro-ovens; automotive parts; and parts of electronics such as computers; and also to manufacture disposable cups and in food packaging. • Styrene is also used as an intermediate to produce copolymers — which are polymers derived from one or more species of monomers such as styrene. What happens when exposed to styrene?

• As per the US-based Environment Protection Agency (EPA), short-term exposure to the substance can result in respiratory problems, irritation in the eyes, irritation in the mucous membrane, and gastrointestinal issues. • It is the mucous membrane that is mainly affected by exposure to styrene gas. • And long-term exposure could drastically affect the central nervous system and lead to other related problems like peripheral neuropathy. • It could also lead to cancer and depression in some cases. • However, EPA notes that there is no sufficient evidence despite several epidemiology studies indicating there may be an association between styrene exposure and an increased risk of leukaemia and lymphoma. • Acute exposure to styrene via inhalation at 376 ppm for 25 minutes had resulted in nausea, a sense of inebriation and headache. • But no studies have been carried out to understand the harmful effects from exposure at extremely high concentrations lasting a couple of hours. • Currently, no studies have reported deaths from short-term exposure to styrene gas. • Hence, it is not clear if the deaths were caused by styrene gas or some other chemical or a combination.

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What are the symptoms?

• Symptoms include headache, hearing loss, fatigue, weakness, difficulty in concentrating, etc. • Animal studies, according to the EPA, have reported effects on the Central Nervous System (CNS), liver, kidney, and eye and nasal irritation from inhalation exposure to styrene.

23. India needs to enact a COVID-19 law

The editorial throws light upon the lack of coordination between the Union and State governments revealed by the ad-hoc and reactive rule-making, highlighting the need for India to enact a COVID-19 law. Laws Governing Lockdown:

• The lockdown has been carried out by State governments and district authorities on the directions of the Union Ministry of Home Affairs under the Disaster Management Act of 2005, which was intended to provide for the effective management of disasters and matters related to it. • Under the Act, the National Disaster Management Authority (NDMA) was set up under the leadership of the Prime Minister, and the National Executive Committee (NEC) was chaired by the Home Secretary. The NDMA and NEC issued orders directing the Union Ministries, State governments and authorities to take effective measures to prevent the spread of COVID-19. • It laid out guidelines illustrating which establishments would be closed and which services suspended during the lockdown period.

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• Taking a cue from the guidelines, the State governments and authorities exercised powers under the Epidemic Diseases Act of 1897 to issue further directions. All these orders constitute the legislative umbrella governing the lockdown. Issue:

• The invoking of the Disaster Management Act has allowed the Union government to communicate seamlessly with the States. However, serious questions remain whether the Act was originally intended to or is sufficiently capable of addressing the threat of a pandemic. • Also, the use of the archaic Epidemic Diseases Act reveals the lack of requisite diligence and responsiveness of government authorities in providing novel and innovative policy solutions to address a 21st century problem. • Another serious failing is that any violation of the orders passed would be prosecutable under Section 188 of the Indian Penal Code – an ineffective and broad provision dealing with disobedience of an order issued by a public servant. • The ambiguous orders regarding inter-State movement has left the fate of hundreds of thousands of migrant workers to be handled by district administrations with inadequate resources. • This has also exposed the lack of coordination between the Union and State governments. Examples from across the globe:

• Many countries have passed laws, setting out unambiguous conditions and legally binding obligations. United Kingdom:

• The U.K. enacted the Coronavirus Act, 2020, which is a comprehensive legislation dealing with all issues connected with COVID-19. • The legislation includes emergency registration of healthcare professionals, temporary closure of educational institutions, audio-visual facilities for criminal proceedings, powers to restrict gatherings, and financial assistance to industry. Singapore:

• Singapore has passed the Infectious Diseases Regulations, 2020. • It provides for issuance of stay orders which can send ‘at-risk individuals’ to a government-specified accommodation facility. • As such, under Singaporean law, the violators may be penalised up to $10,000 or face six months imprisonment or both.

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• In contrast, Section 188 of the Indian Penal Code has a fine amount of ₹200 to ₹1,000 or imprisonment of one to six months. • The proceedings under Section 188 can only be initiated by a private complaint and not through a First Information Report. • Offences arising out of these guidelines and orders have a weak basis in terms of criminal jurisdiction thereby weakening the objectives of the lockdown. Way forward:

• In India, both Houses of Parliament functioned till March 23, 2020, when they were adjourned sine die. • There were a number of interventions regarding COVID-19 by opposition members through the session. • Also, there has been little clarity on a road map to economic recovery. In past instances, the Union Government has not shied away from promulgating ordinances. These circumstances call out for legislative leadership, to assist and empower States to overcome COVID-19 and to revive their economic, education and public health sectors. A consolidated, pro-active policy approach is the need of the hour. The Union Government must draft or enact a COVID-19-specific legislation that could address all the issues pre-emptively.

24. Is the perpetual bond a suitable option to raise money?

A gathering financial storm

• India projected a deficit of ₹7.96-lakh crore in the Budget before the pandemic. • Adding to the above concern: 1) Off-balance sheet borrowings of 1% of GDP. 2) The overly excessive target of ₹2.1 lakh crore through disinvestments. • Thus, financial deficit number is set to grow by a wide margin owing to corona crisis. • There will be revenue shrinkage from the coming depression that will most certainly be accompanied by a lack of appetite for disinvestment.

Need for stimulus package and measures taken by the RBI

• In addition to the expenditure that was planned, the government has to spend anywhere between ₹5-lakh crore and ₹6-lakh crore as a stimulus package. • The stimulus provided by the government so far and recent announcements by the Reserve Bank of India (RBI) achieved little.

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• All the RBI’s schemes are contingent on the availability of risk capital, the market for which has completely collapsed. • The government and the RBI have tried several times to increase lending to below investment grade micro, small and medium enterprises, but have come up short each time. • Furthermore, while the 60% increase in ways and means limits for States is a welcome move, many States have already asked for doubling the limits due to the shortages in indirect taxation collections from Goods and Services Tax, fuel and liquor. • The government and the central bank need to understand that half measures will do more harm than good.

What is the Consol Bond?

• Consol bond is a form of British government bond that has no maturity and that pays a fixed coupon. • Consols are basically rare examples of actual perpetual bonds. • The bonds were issued in 1917 as the government sought to raise more money to finance the ongoing cost of the First World War.

So, why bond like Consol Bonds is a good option for India?

• There is no denying the fact that the traditional option of monetising the deficit by having the central bank buy government bonds is one worth pursuing. • Citizens’ active participation is ensured in Consol Bond type alternative. • Furthermore, with the fall of real estate and given the lack of safe havens outside of gold, the bond would offer a dual benefit as a risk-free investment for retail investors. • When instrumented, it would be issued by the central government on a perpetual basis with a right to call it back when it seems fit. • An attractive coupon rate for the bond or tax rebates could also be an incentive for investors. • The government can consider a phased redemption of these bonds after the economy is put back on a path of high growth.

Conclusion Politicians and epidemiologists across the world have used the word “war” to describe the situation the world is currently in. So, to raise the money to fight this war against Covid-19, we can take the cue from past and issue bond based on the Consol bond.

What is fiscal deficit?

• A fiscal deficit is a shortfall in a government’s income compared with its spending. • The government that has a fiscal deficit is spending beyond its means. • A fiscal deficit is calculated as a percentage of gross domestic product (GDP).

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• There can be different types of deficit in a budget depending upon the types of receipts and expenditure we take into consideration. Accordingly, there are three concepts of the deficit, namely- • Revenue deficit = Total revenue expenditure – Total revenue receipts. • Fiscal deficit = Total expenditure – Total receipts excluding borrowings. • Primary deficit = Fiscal deficit-Interest payments. • Primary deficit shows how much government borrowing is going to meet expenses other than interest payments. • Thus, zero primary deficits mean that the government has to resort to borrowing only to make interest payments. • To know the amount of borrowing on account of current expenditure over revenue, we need to calculate the primary deficit. • Thus, the primary deficit is equal to fiscal deficit less interest payments.

Perpetual Bonds

• A perpetual bond, also known as a “consol bond” or “prep,” is fixed income security with no maturity date. • This type of bond is often considered a type of equity, rather than debt. One major drawback to these types of bonds is that they are not redeemable. • However, the major benefit of them is that they pay a steady stream of interest payments forever. • Perpetual bonds exist within a small niche of the bond market. • This is mainly due to the fact that there are very few entities that are safe enough for investors to invest in a bond where the principal will never be repaid. • AT-1 bonds which were recently in news due to YES bank failure is an example of a perpetual bond.

25. The evergreen debate of Food versus Fuel

What decisions did the government take?

• The National Biofuel Coordination Committee (NBCC) chaired by the Union Minister of Petroleum and Natural Gas decided to use “surplus” rice available with the Food Corporation of India (FCI) for conversion to ethanol. • The objective is to make alcohol-based hand-sanitisers and for the blending of ethanol with petrol. • This decision is not only audacious but also an affront to the millions of people who are deeply affected by food insecurity.

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The food question

• In 2009, the National Policy on Biofuels stressed on the use of non-food resources to avoid a possible conflict between food and fuel. • Take the US’s example: In 2018-19, an astounding 37.6 per cent of the corn produced in the US is used for making ethanol.

• In addition to cereals, oilseed crops like rapeseed, soybean and sunflower were used for biofuel production. • Rise in food prices: Such diversion of food crops to produce biofuel was considered one of the reasons for the rise in food prices globally.

What should be India’s strategy in this debate?

• There is rampant poverty, hunger, and malnutrition in India. • India’s position in the Global Hunger Index has slipped nine places, ranking 102 among the 117 countries in 2019. • The National Family Health Survey (NFHS-4) 2015-16, found that 38.4 per cent of children under five years are “stunted” (height for age) and 21 per cent are “wasted” (low weight for height). • In fact, over a period of 10 years, wasting has increased from 19.8 per cent in NFHS-3 to 21 per cent in NFHS-4.

The dictums of 2018 Policy

• The 2018 National Policy on Biofuels had a target of 20 per cent blending of ethanol in petrol and 5 per cent blending of biodiesel in diesel by 2030. • This was to be achieved by increasing production using second-generation bio- refineries and developing new feedstock for biofuels. • It allowed the production of ethanol from damaged food grains like wheat and broken rice, which are unfit for human consumption. • The new policy allowed the use of excess food grain for ethanol in a bounty crop year, if endorsed by the Union Ministry of Agriculture.

Possible dangers

• The quantity of rice from which ethanol will be produced has not been announced, nor do we know the price at which such rice will be sold by the FCI. • About 85 per cent of rice is Kharif crop, heavily dependent on monsoon. • Despite the prediction of a normal monsoon, What happens if the monsoon predictions go wrong? Will we be able to import grain? • Less damaged grains: Despite the commonly held belief of a lakh of tonnes of rotting grains, the FCI’s storage practices are actually quite good.

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• Damaged grains as a percentage of total quantity issued by the FCI has been just about 0.01 per cent to 0.04 per cent in the last five years. • Hardly any ethanol can be made from such a small amount of damaged grains. • Making ethanol from sound quality grains deprives food to humans as well as livestock. • At the time when uncertainties are looming large, it is imperative that food security and food price stability be given the highest priority.

Way forward

• Ethanol can be produced from other ingredients such as B and C heavy molasses, sugar, sugar syrup, and sugarcane juice. • Ethanol has also been blessed with a low GST and enjoys relaxed conditions for inter- state movement if used for blending with petrol. • Since the economy faces a bleak prospect due to the impact of COVID-19, the government should first use the food grains to meet the requirement of about 10 to 20 crore people without ration cards.

Conclusion The government must ensure the food safety of the country first and if it still has surplus rice, it must facilitate export to friendly countries which are suffering an adverse impact of COVID-19 on their economies.

Generations of biofuels

• There are three types of biofuels: 1st, 2nd and 3rd generation biofuels. • They are characterized by their sources of biomass, their limitations as a renewable source of energy, and their technological progress. • The main drawback of 1st generation biofuels is that they come from biomass that is also a food source. • This presents a problem when there is not enough food to feed everyone. • 2nd generation biofuels come from non-food biomass, but still compete with food production for land use. • Finally, 3rd generation biofuels present the best possibility for alternative fuel because they don’t compete with food. • However, there are still some challenges in making them economically feasible.

Important Provision of ‘National Policy on Biofuels, 2018

• The government aims at increasing the utilization of biofuels in the energy and transportation sectors of the country by promoting the production of biofuels from domestic feedstock in the coming decade through this policy.

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• Larger goals such as the adoption of green fuels, national energy security, fighting climate change, generating employment, etc. would be facilitated through this policy. Along with that, technological advancements in the field of biofuels will also be encouraged. • MNRE has set an indicative target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel to be achieved by 2030. • The percentage of the same currently stands at around 2% for petrol and less than 0.1% for diesel.

26. What makes MSMEs, most vulnerable to Covid-19 disruptions?

• The Covid-19 pandemic has left its impact on all sectors of the economy but nowhere is the hurt as much as the Medium, Small and Micro Enterprises (MSMEs) of India. • All anecdotal evidence available, such as the hundreds of thousands of stranded migrant workers across the country, suggests that MSMEs have been the worst casualty of lockdown. • A closer look at the anatomy of the MSME sector explains why MSMEs are so vulnerable to economic stress.

What are MSMEs? How are they defined?

• Formally, MSMEs are defined in terms of investment in plant and machinery.

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• But this criterion for the definition was long criticised because credible and precise details of investments were not easily available by authorities. • That is why in February 2018, the Union Cabinet decided to change the criterion to “annual turnover”, which was more in line with the imposition of GST. • According to the proposed definition, which is yet to be formally accepted, a micro- enterprise will be one with an annual turnover less than Rs 5 crore; a small enterprise with turnover between Rs 5 crore and Rs 75 crore; and a medium enterprise with turnover less than Rs 250 crore.

How many MSMEs does India have, who owns them, and where are they situated?

• According to the latest available (2018-19) Annual Report of Department of MSMEs, there are 6.34 crore MSMEs in the country. • Around 51 per cent of these are situated in rural India. • Together, they employ a little over 11 crore people (Chart 3) but 55 per cent of the employment happens in the urban MSMEs. • These numbers suggest that, on average, less than two people are employed per MSME. • At one level that gives a picture of how small these really are. But a breakup of all MSMEs into micro, small and medium categories is even more revealing.

Distributions of MSMEs

• In terms of geographical distribution, seven Indian states alone account for 50 per cent of all MSMEs. • These are Uttar Pradesh (14%), West Bengal (14%), Tamil Nadu (8%), Maharashtra (8%), Karnataka (6%), Bihar (5%) and Andhra Pradesh (5%).

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• This breakup provides a sense of where the pain of the MSME crisis would be felt the most. • Chart 4 shows, 99.5 per cent of all MSMEs fall in the micro category. • The medium and small enterprises — that is, the remaining 0.5% of all MSMEs — employ the remaining 5 crore-odd employees. • While micro-enterprises are equally distributed over rural and urban India, small and medium ones are predominantly in urban India.

What kind of problems do MSMEs in India face?

• No/Low Formal registration: To begin with, most of them are not registered anywhere. A big reason for this is that they are just too small. But, as it is clear in a time of crisis, it also constrains a government’s ability to help them. • Away from Tax norms: GST has its threshold and most micro enterprises do not qualify. Being out of the formal network, they do not have to maintain accounts, pay taxes or adhere to regulatory norms etc. This brings down their costs. • Lack of Financial buffer: According to a 2018 report by the International Finance Corporation (part of the World Bank), the formal banking system supplies less than one-third (or about Rs 11 lakh crore) of the credit MSME credit need that it can potentially fund (Chart 5). They don’t have the buffers of the bigger firms or access to cheap capital to help them tide over this period.

• Bad credit history: The other big issue plaguing the sector is the delays in payments to MSMEs — be it from their buyers or things likes GST refunds etc. A key reason why banks dither from extending loans to MSMEs is the high ratio of bad loans (Chart 6).

How has Covid-19 made things worse?

• The MSMEs were already struggling — in terms of declining revenues and capacity utilization — in the lead-up to the Covid-19 crisis.

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• The total lockdown has raised a question mark on workers payment primarily because these firms mostly transact on cash. That explains the job losses. • According to a recent survey he did for “small and medium” firms in manufacturing, only 7% said they will be able to survive for more than three months with their cash in hand if their business remains closed. • A big hurdle to restarting now is the lack of labour availability.

What can be done?

• The RBI has been trying to pump money into the MSME sector but given the structural constraints, it has had limited impact. • There are no easy answers for the MSMEs’ sufferings. • However, the government can provide tax relief (GST and corporate tax), give swifter refunds, and provide liquidity to rural India (say, through PM-Kisan) to boost demand for MSME products.

What about credit guarantees?

• Loans to MSMEs are mostly given against property (as collateral) — because often there isn’t a robust cash flow analysis available — but in times of crisis, property values fall and that inhibits the extension of new loans. • A credit guarantee by the government helps as it assures the bank that its loan will be repaid by the government in case the MSME falters. • To the extent such defaults happen, credit guarantees are shown as a departmental expense in the Budget.

Urgent attention required

• Governments across the world have announced various measures ranging from wage support to direct subsidies to help these businesses tide over these difficult times. • But, in India, more than a month after the national lockdown was announced; there is still no blueprint of how the government intends to support these businesses during this period.

Way forward

• There is a strong case for urgent government intervention — the costs of intervening early on will be much less than the price of delayed action. • To begin with, all dues owned by governments and public sector undertakings to MSMEs can be immediately cleared. This will help ease their immediate cash flow woes. • Second, with banks turning risk-averse, credit flow to MSMEs is likely to be depressed as solvency concerns will dominate.

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• In such a situation, the government could step in. It could set up a credit guarantee fund that backstops loans to MSMEs.

27. Pathways to a more resilient economy

Context:

• The author of the article articulates the necessary changes in the economic system in the face of the pandemic crisis. Details:

• The COVID-19 pandemic has drastically affected the economies and lives, and has challenged the tenets of economics that have dominated public policy for the past 50 years. Such a situation necessitates the redesign of economies, businesses and lives. • The author of the article discusses ideas to build a more resilient economy and a more just society. Idea of De-growth:

• Traditionally, GDP has been considered the supreme goal of progress. The given scenario, where even the richest countries are failing to contain the damage of the pandemic, calls into question the prominence of GDP as a goal. • Goals for human progress must be reset. There is a need for better measures to gauge human development. • A five-point ‘de-growth’ manifesto by 170 Dutch academics has recently gained a lot of attention. Idea of national boundaries:

• Boundarylessness has been often promoted by hyper-globalizers based on the argument that boundaries impede flows of trade, finance and people. They have argued that removing such boundaries would be good for global growth. • The author argues that boundaries between countries are good. • Since countries are at different stages of economic development, and have different compositions of resources, they will have to follow different paths to progress. The presence of boundaries allows them to do so. • The breakdown of the World Trade Organization serves as an example of the importance of borders. Under the WTO, all countries were expected to

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open their borders, which caused harm to countries at different stages of development, and their reluctance has been a drag on WTO negotiations. Necessity of government’s role:

• The recent past has witnessed the growing importance of market economy, leading to the subsequent decrease in the government’s role. Capitalist corporations have wanted governments out of the way to make it easy for them to do business. • However, the current crisis has brought to light the critical role of the government in critical times. Governments are having to bail out businesses. This calls for higher roles for governments in any future system. Limitations of market economy:

• Market economy, though allows for higher efficiency, leads to unequal access to resources. • Those who have money and power can acquire goods and services from the markets, while the poor do not have money to obtain what they need. The “marketization” of economies has contributed to the increasing inequalities in wealth over the last 50 years. • There is a need to revaluate the emphasis on market economy. Justice and dignity:

• There are inherent differences between a consumer and a citizen. • Citizens have a broader set of needs than consumers. Citizens’ needs cannot be fulfilled merely by enabling them to consume more goods and services. They value justice, dignity and societal harmony too. • Traditional economists’ evaluations of the benefits of free trade and competition policy are based on consumer welfare alone, and fail to account for negative impacts on citizens. • Citizen welfare must be the objective of progress. Importance of collaboration:

• The faith in “Darwinian competition” which propounds the principle of the survival of only the fittest, fails to recognize many deficiencies in modern societies and economies. • Competition must be restrained and Collaboration must be promoted. This could involve collaboration among scientists in different disciplines, and among diverse stakeholders, and collaboration among sovereign countries. • Improvements in abilities to share and govern common resources have become essential for human survival in the 21st century. Public ownership of IPR:

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• Recently, there has been an increasing emphasis on recognizing intellectual property rights as a means to promote innovation and development. • The author calls for recognizing intellectual property as belonging to the public for the following reasons: • The current era of knowledge accords more power and wealth to those who own knowledge. Intellectual property monopolies are producing enormous wealth for their owners, though many were developed on the back of huge public investments. • Powerful technologies can be used for benign purposes. The author calls for evolving new institutions for public ownership of technologies and for the regulation of their use. Way forward: Structural changes:

• Unlike the financial crisis of 2008, which was basically a crisis of liquidity in the system wherein the solutions were obvious, the COVID-19 crisis has revealed structural weaknesses in the global economy, and would require structural changes in the system. • Though currently global attention understandably is focused on relief and recovery, it is equally important to redesign the entire system for resilience. Integrated approach:

• The economic system cannot be redesigned by domain experts devising solutions within their silos. There is a need for an integrated approach to redesigning the system where the new policies complement and supplement each other and increase the effectiveness of the changes. Innovative approach:

• Innovations are required at many levels to create a more resilient world. Innovation is essential in the overall design of the economy. • Innovations will be required in business models for business survival. Basic changes:

• Changes will be necessary in human life patterns, work and consumption habits, and human priorities.

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28.Manufacturing Hits Record Low

Why in News According to a recent IHS Markit India monthly survey, Manufacturing Purchasing Managers’ Index (PMI) fell to 27.4 in April, 2020 from 51.8 in March, 2020.

Key Points

▪ India’s manufacturing sector activity has witnessed contraction in April, 2020 due to national lockdown restrictions.

o The new business orders have collapsed at a record pace severely hampering the demand. o This is the sharpest deterioration in business conditions across the manufacturing sector since data collection began over 15 years ago. ▪ The deteriorating demand conditions has led the manufacturers to drastically cut back staff numbers. ▪ Export orders have also witnessed a sharp decline. ▪ There was also evidence of supply-side disruption due to the lockdown. ▪ The PMI slipped into contraction mode, after remaining in the growth territory for 32 consecutive months.

o In PMI’s language, a reading above 50 means expansion, while a score below that denotes contraction. ▪ According to the 12-month outlook for production the demand will rebound once the Covid-19 threat is diminished and lockdown restrictions are eased. ▪ The Index (PMI) is compiled by IHS Markit for more than 40 economies worldwide. IHS Markit is a global leader in information, analytics and solutions for the major industries and markets that drive economies worldwide.

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Purchasing Managers' Index

▪ Purchasing Managers’ Index (PMI) is an indicator of business activity - both in the manufacturing and services sectors.

o It is calculated separately for the manufacturing and services sectors and then a composite index is also constructed. o The PMI summarizes whether market conditions as viewed by purchasing managers are expanding, neutral, or contracting. ▪ The purpose of the PMI is to provide information about current and future business conditions to company decision makers, analysts, and investors. ▪ The PMI is a number from 0 to 100.

o PMI above 50 represents an expansion when compared to the previous month; o PMI under 50 represents a contraction, and o A reading at 50 indicates no change. ▪ The PMI is usually released at the start of every month. It is, therefore, considered a good leading indicator of economic activity. ▪ It is different from the Index of Industrial Production (IIP), which also gauges the level of activity in the economy. Index of Industrial Production

▪ The Index of Industrial Production (IIP) is an index which details out the growth of various sectors in an economy such as mineral mining, electricity, manufacturing, etc.

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▪ It is compiled and published monthly by the National Statistical Organisation (NSO), Ministry of Statistics and Programme Implementation. ▪ The Base Year of the Index of Eight Core Industries has been revised from the year 2004-05 to 2011-12 from April, 2017.

o The eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). o The eight Core Industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers. Difference between PMI and IIP

▪ IIP covers the broader industrial sector compared to PMI.

o IIP shows the change in production volume in major industrial sub sectors like manufacturing, mining and electricity. o Similarly, the IIP also gives use based (capital goods, consumer goods etc) trends in industrial production. ▪ PMI is more dynamic compared to a standard industrial production index.

o The PMI senses dynamic trends because of the variable it uses for the construction of the index compared to volume based production indicators like the IIP. o For example, new orders under PMI show growth oriented positive trends and not just volume of past production that can be traced in an ordinary Index of Industrial Production.

29. Environmental regulations: go or no go?

What is this fuss about environment and lockdown?

• The lockdown exit strategies are focused on saving livelihoods.

• But the lockdown is causing fiscal pressures on governments which further motivates it to lower the environmental standards, suspend environmental monitoring requirements and reduce environmental enforcement. (Well to save some bucks.)

• And also in the belief that this is necessary to secure economic growth.

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• But it would be a mistake to assume that there is a trade-off between saving livelihoods and protecting the environment.

• The crisis of COVID-19 has highlighted that improving the quality of air in our country is not a matter of choice but an emergency.

How countries around the world are reacting?

• The US announced a significant reduction in fuel efficiency standards for new cars.

• This move could result in increased gasoline consumption by 80 billion tonnes, pumping increased carbon emissions into the atmosphere.

• The US Environmental Protection Agency has announced that it will not be enforcing compliance with routine monitoring and reporting obligations of environmental protection, for an indefinite period.

• 13 European ministers have been outspoken about resisting the temptations of short- term solutions in response to the present crisis- need to maintain and strengthen EU’s effective regulatory tools to stick to its 2030 climate goals.

5 Arguments that Indian authorities that look into viz a viz environmental standards 1. Pollution increases risk to COVID-19

• People living in areas with higher levels of air pollution face increased risk of premature death from COVID-19.

• New Delhi was the world’s most polluted capital city for the second straight year in 2019.

• And India was also home to 21 of the world’s 30 most polluted cities, Swiss-based group IQ AirVisual said in a recent study.

• The State of Global Air 2019 Report finds air pollution responsible for over 1.2 million deaths in China and India each, based on 2017 data.

2. The poor are the most affected by air pollution

• There is enormous inequality in the impact of the COVID-19 fallout.

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• Those who suffer the most from air pollution are the millions who live and toil in the open, who cannot afford air-purifiers or other mitigating measures, as also the elderly and children.

3. Risk of future pandemics

• There is good evidence that three-quarters of the emerging infectious diseases migrate from wild or domesticated animals into humans.

• This includes Ebola, SARS, MERS and now COVID-19.

• Deforestation, industrial agriculture, illegal wildlife trade, climate change and other types of environmental degradation increase the risk of future pandemics.

4. Public support for environment protection

• From Delhi to Sao Paulo, Bangkok to Bogota, the dramatic improvement in the quality of air and water in the most polluted cities around the world has been transmitted by social media.

• This may well result in a groundswell of public support for measures to protect the environment.

5. The environment will get the value it deserves

• The corona pandemic will jolt the markets into giving a clean, healthy and sustainable environment the economic value it deserves.

• There’s a possibility that the gulf between what markets value, and what people value, will close.

Environment conservation as a silver lining in this Pandemic

• We have never treated air pollution as a national emergency, failing to coordinate between the Centre and state governments.

• The COVID pandemic has been declared a national disaster in India, under the National Disaster Management Act, 2005.

• This legislation mandates the disaster authorities coordinate among themselves and take measures for the prevention and mitigation of the pandemic.

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• Preventing and mitigating the risks of COVID-19, therefore, means the mandate for the disaster authorities is also to tackle air and other forms of pollution head-on.

Conclusion The NDMA is a platform which should be used to combat air pollution as an emergency, similar coordination will be required at an international level to continue to work towards reduced emissions under the Paris Agreement. It is a great pity that it takes a pandemic to bring the realisation that economic growth versus clean air is a false dichotomy.

30. How Remdesivir tricks coronavirus? A new research has found how Remdesivir treats coronavirus and described the exact mechanism of interaction between the virus and the drug. Remdesivir is an experimental antiviral made by American pharmaceutical firm Gilead Sciences that was first developed to treat Ebola. How Remdesivir kills coronavirus?

• Remdesivir is designed to obstruct the stage of replication, when the virus creates copies of itself, followed endlessly by the copies creating copies of themselves.

How does replication take place?

• Once the virus enters the human cell, it releases its genetic material, which is then copied using the body’s existing mechanism.

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• At every stage of infection, various human proteins, virus proteins, and their interactions come into play. • At the replication stage, the key viral protein at play is an enzyme called RdRp (an enzyme is a kind of protein that speeds up chemical reactions within a cell). • It is RdRp that makes the copies, by processing components of the RNA of the virus. • University of Alberta researchers called it the “engine” of the virus in a paper last week, in which they described the action of Remdesivir against this “engine”. • In scientific literature, such an enzyme is called a polymerase (the p is RdRp stands for polymerase) or a replica. • In any case, this is the enzyme that is targeted by Remdesivir.

And how exactly does Remdesivir target this enzyme?

• In order to replicate, the virus processes raw material from the virus RNA, broken down by another enzyme with that specific function. • When a patient is given Remdesivir — the inhibitor — it mimics some of this material and gets incorporated in the replication site. • With Remdesivir replacing the material it needs, the virus fails to replicate further. • These coronavirus polymerases are sloppy and they get fooled, so the inhibitor gets incorporated many times and the virus can no longer replicate.

31. Why liquor sale matters to states?

Following the ease of restrictions in the third phase of the nationwide lockdown, some of the most striking images showed long queues outside liquor stores around the country. The Delhi government announced a 70% hike in the price of liquor across categories in the capital. Why liquor matters?

• Delhi’s “special corona fee” on alcohol underlines the importance of liquor to the economy of the states. • Manufacture and sale of liquor is one of the major sources of their revenue, and the reopening comes at a time when the states have been struggling to fill their coffers amid the disruption on account of the lockdown.

How do states earn from liquor?

• Liquor contributes a considerable amount to the exchequers of all states and UTs except Gujarat and Bihar, both of which have enforced prohibition. • Generally, states levy excise duty on manufacture and sale of liquor.

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• Some states, for example, Tamil Nadu, also impose VAT (value-added tax). • States also charge special fees on imported foreign liquor; transport fee; and label & brand registration charges. • A few states, such as UP, have imposed a “special duty on liquor” to collect funds for special purposes, such as maintenance of stray cattle.

Share in revenue

• A report published by the RBI last year shows that state excise duty on alcohol accounts for around 10-15 per cent of Own Tax Revenue of a majority of states. • In fact, the state excise duty on liquor is the second or third largest contributor to the category State’s Own Tax revenue; sales tax (now GST) is the largest. • This is the reason states have always wanted liquor kept out of the purview of GST.

What exactly is State Excise?

• Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called “State Excise” duty. • For most of the states, excise duty is the second largest tax revenue after sales taxes (state VAT). • Besides, a substantial amount comes from licences, fines and confiscation of alcohol products.

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What has changed with the State Excise after the GST regime?

• At the central level, excise duty earlier used to be levied as Central Excise Duty, Additional Excise Duty, etc. • However, the Goods and Services Tax (GST), introduction in July 2017, subsumed many types of excise duty. Today, excise duty applies only on petroleum and liquor. • Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services. • Alcohol does not come under the purview of GST as exclusion mandated by constitutional provision. • States levy taxes on alcohol according to the same practice as was prevalent before the rollout of GST. • After GST was introduced, central excise duty was replaced by Central GST because excise was levied by the central government. The revenue generated from CGST goes to the central government.

What are the other sources of revenue for the states?

• The states’ revenues comprise broadly two categories — Tax Revenue and Non-Tax Revenue. • Tax revenue is divided into two further categories: State’s Own Tax Revenue, and Share in Central Taxes. • Again, Own Tax Revenue comprises three principal sources:

1) Taxes on Income (agricultural income tax and taxes on professions, trades, callings and employment);

2) Taxes on Property and Capital Transactions (land revenue, stamps and registration fees, urban immovable property tax); and

3) Taxes on Commodities and Services (sales tax, state sales tax/VAT, central sales tax, a surcharge on sales tax, receipts of turnover tax, other receipts, state excise, taxes on vehicles, taxes on goods and passengers, taxes and duties on electricity, entertainment tax, state GST, and “other taxes and duties”).

Back2Basics: What is Excise Duty?

• Excise duty is a form of tax imposed on goods for their production, licensing and sale. • It is the opposite of Customs duty in sense that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside of the country. • At the central level, excise duty earlier used to be levied as Central Excise Duty, Additional Excise Duty, etc.

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• Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services.

Purview of excise duty

• The GST introduction in July 2017 subsumed many types of excise duty. • Today, excise duty applies only on petroleum and liquor. • Alcohol does not come under the purview of GST as exclusion mandated by constitutional provision. • States levy taxes on alcohol according to the same practice as was prevalent before the rollout of GST. • After GST was introduced, excise duty was replaced by central GST because excise was levied by the central government. The revenue generated from CGST goes to the central government.

Types of excise duty in India Before GST kicked in, there were three kinds of excise duties in India.

1) Basic Excise Duty

• Basic excise duty is also known as the Central Value Added Tax (CENVAT). This category of excise duty was levied on goods that were classified under the first schedule of the Central Excise Tariff Act, 1985. • This duty was levied under Section 3 (1) (a) of the Central Excise Act, 1944. This duty applied on all goods except salt.

2) Additional Excise Duty

• Additional excise duty was levied on goods of high importance, under the Additional Excise under Additional Duties of Excise (Goods of Special Importance) Act, 1957. • This duty was levied on some special category of goods.

3) Special Excise Duty

• This type of excise duty was levied on special goods classified under the Second Schedule to the Central Excise Tariff Act, 1985. • Presently the central excise duty comprises of a Basic Excise Duty, Special Additional Excise Duty and Additional Excise Duty (Road and Infrastructure Cess) on auto fuels.

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32. A grain stockist with a role still relevant

Context:

• Food Corporation of India’s critical role in countering the challenges posed by COVID-19. Background: Food Corporation of India:

• The Food Corporation of India (FCI) has been set up under the Food Corporations Act 1964. • In the initial decades of its inception, the FCI was praised for being at the forefront of India’s quest for self-sufficiency in rice and wheat following the Green Revolution, managing procurement and stocking grains that supported a vast Public Distribution System (PDS). • However, in recent times, there have been many concerns over the organisation. • FCI’s operations are regarded as expensive and inefficient. There are long-term concerns regarding the costs of food subsidy. • The FCI has witnessed mounting debts which currently stands at an estimated ₹55 lakh crore in March 2020, in the form of National Small Saving Funds Loan. • FCI faces serious storage problems and is plagued by the issue of shortage of modern storage facilities. In the 1970s and 1980s, poor storage conditions meant a lot of grain was lost to pests, mainly rats. • There have been reports of widespread diversion of grains and high leakage losses. • FCI has lacked a “pro-active liquidation policy” for excess stocks which leads to market distortion in some instances. The distribution of subsidised grains is sometimes blamed for depressing food prices and affecting farmers. • Some experts have argued that given the increasing role of the market economy, the FCI seems to have long outlived its purpose. Details: FCI role in the pandemic crisis:

• Notwithstanding its dubious reputation, the FCI has consistently maintained the PDS, a lifeline for vulnerable millions across the country. • Currently, in the middle of the COVID-19 pandemic, FCI with its buffer stocks holds the key to warding off a looming crisis of hunger and starvation,

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especially in regions where lakhs of migrant workers have returned home with little money or food. • The FCI has already moved 3 million tonnes (post-lockdown) to States, including Uttar Pradesh, Bihar, West Bengal and Karnataka and those in the Northeast, where demand outstrips State procurement and/or stocks. • The FCI has also enabled purchases by States and non-governmental organisations directly from FCI depots, doing away with e-auctions typically conducted for the Open Market Sale Scheme (OMSS). • Given the extended lockdown, the FCI is uniquely positioned to move grains across State borders where private sector players continue to face formidable challenges. Way forward:

• The author of the article discusses a few strategies for the FCI which would enable it to more effectively play its role in countering the challenges posed by COVID-19. Improving transport logistics:

• The FCI has been traditionally reliant on rail transport. In 2019-2020 (until February) only 24% of the grains moved was by road. • Given the fact that road movement is often better suited for emergencies and for remote areas, the FCI can consider increased road transport of the food stocks. • The FCI is also well advised to promote containerised movement of grains which is more cost-effective and efficient. It is imperative to move grains quickly and with the least cost and effort, to areas where the need is the greatest. Positioning strategy:

• The coming months will see increased demand of staples from food insecure hotspots. • In such a scenario, FCI can adopt “pre-positioning” strategy for regions that are chronically underserved by markets or where markets have been severely disrupted. This strategy involves storing of grains closer to demand hotspots. • The FCI already has a decentralised network of godowns. In the current context, it would be useful for the State governments and the FCI to maintain stocks at block headquarters or panchayats in food insecure or remote areas, in small hermetic silos or containers. • Such a move, apart from ensuring a sense of assurance and psychological comfort, would allow State governments to respond rapidly to demands. • This would provide flexibility to local governments to access grains for contextually appropriate interventions at short notice, including feeding

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programmes, free distribution to vulnerable and marginalised sections, those who are excluded from the PDS, etc. • It can also allow freedom to panchayats, to sell grain locally at pre- specified prices until supply is restored. Higher allocations:

• The central government should look beyond the PDS and the Pradhan Mantri Garib Kalyan Yojana and release stocks over and above existing allocations. • This should preferably be done at the centre’s expense rather than by transferring the fiscal burden to States. Collaboration:

• The FCI can consider working in collaboration with the vibrant network of self- help groups formed under the National Rural Livelihoods Mission (NRLM). These SHGs can be tasked with the last mile distribution of food aid other than the PDS. Change in existing guidelines:

• The current FCI guidelines prescribe a first in, first out principle (FIFO), that mandates that grain that has been procured earlier needs to be distributed first to ensure that older stocks are liquidated, both across years and even within a particular year. • The FCI must suspend this strategy, to enable the adoption of a strategy that costs the least time, money and effort. Enhanced role:

• There has been an increasing trend of farmers growing for markets (like horticultural crops), seeking to reach out to consumers directly. The farmer producer organisations (FPOs) have been at the forefront of this development. The current lockdown and restrictions on movement have broken such supply chains. • The FCI, along with the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), is well placed to rope in expertise to manage the logistics to revive and support direct sales. • The FCI can consider expanding its role to support FPOs and farmer groups, to move a wider range of commodities including agricultural inputs such as seeds and fertilizers, packing materials and so on. Conclusion:

• The often questioned relevance of an organisation such as the FCI or of public stockholding has been strongly established by the role of FCI in the current crisis situation.

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• The Shanta Kumar report in 2015 recommended repurposing FCI as an “agency for innovations in Food Management System” and advocated shedding its dominant role in the procurement and distribution of grain. • The FCI needs to overhaul its operations and modernise its storage.

33.Drop in FPI Outflows

Why in News According to recent data from Central Depository Services Limited (CDSL), the Foreign Portfolio Investors (FPIs) have significantly reduced the pace of outflows from the equity and debt market in April, 2020, after a record net outflow of Rs 1,18,203 crore in March 2020.

Key Points ▪ FPIs sold a net of Rs 6,883 crore from the equities market and net holdings worth Rs 12,551 crore from the debt market in April.

o In equity market shares are issued and traded, either through exchanges or over- the-counter markets (i.e directly). It is also known as the stock market. o The debt market is the market where debt instruments are traded. o Debt instruments are instruments that require a fixed payment to the holder, usually with interest. E.g. bonds (government or corporate) and mortgages. ▪ However, they invested a net of Rs 4,032 crore in debt Voluntary Retention Route (VRR) scheme.

o VRR scheme allows FPIs to participate in repo transactions and also invest in exchange traded funds that invest in debt instruments. ▪ Outflows have continued due to uncertainty surrounding economic conditions caused by Covid-19 lockdown and investors are cautious. However, the pessimism also continues to grip the markets. ▪ So far, India has been able to contain the Covid-19 pandemic from spreading aggressively. The measures announced by the government and the Reserve Bank of India (RBI) periodically to revitalize the sagging economy have also resonated well with investors. ▪ With selective relaxation in the lockdown and gradual opening up of economic activity in the country, foreign investors will be closely watching the developments on this front. ▪ A success on developing medicine and vaccines will lead to a V-shaped recovery in the economy and markets.

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Voluntary Retention Route (VRR) scheme ▪ The VRR scheme is aimed at attracting long-term and stable FPI investments into debt markets. ▪ Investments through the route will be free of the regulatory norms applicable to FPI investments in debt markets, provided investors maintain a minimum share of their investments for a fixed period. ▪ VRR Scheme has a minimum retention period of three years and investors need to maintain a minimum of 75% of their investments in India. ▪ FPIs registered with Securities and Exchange Board of India (SEBI) are eligible to voluntarily invest through the route in government and corporate bonds. V-Shaped Recovery ▪ A V-shaped recovery is characterized by a sharp economic decline followed by a quick and sustained recovery. ▪ The recession of 1953 is an example of a V-shaped recovery. ▪ A V-shaped recovery is different from an L-shaped recovery, in which the economy stays in a slump for a prolonged period of time.

Foreign Portfolio Investment

▪ Foreign portfolio investment (FPI) consists of securities and other financial assets passively held by foreign investors.

o It does not provide the investor with direct ownership of financial assets and is relatively liquid depending on the volatility of the market. o Foreign portfolio investment is part of a country’s capital account and is shown on its Balance of Payments (BOP). o The BOP measures the amount of money flowing from one country to other countries over one monetary year. ▪ The investor does not actively manage the investments through FPIs, he does not have control over the securities or the business.

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▪ The investor’s goal is to create a quick return on his money. ▪ FPI is more liquid and less risky than Foreign Direct Investment (FDI).

o A Foreign Direct Investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. FDI lets an investor purchase a direct business interest in a foreign country. ▪ FPI is often referred to as “hot money” because of its tendency to flee at the first signs of trouble in an economy. ▪ FPI and FDI are both important sources of funding for most economies. Foreign capital can be used to develop infrastructure, set up manufacturing facilities and service hubs, and invest in other productive assets such as machinery and equipment, which contributes to economic growth and stimulates employment.

34. RBI Cancels Licence of CKP Co-op Bank

Why in News Recently, the Reserve Bank of India (RBI) has cancelled the licence of Mumbai-based CKP Co-operative Bank.

Key Points ▪ RBI has cancelled the licence of the bank as the financial position of the bank was highly adverse and unsustainable.

o The bank is not in a position to pay its present and future depositors. o The bank failed to meet the regulatory requirement of maintaining a minimum capital adequacy ratio of 9% and reserves. ▪ RBI has asked the Registrar of Co-operative Societies, Maharashtra to start the process of winding up operations of CKP Co-operative bank and appoint a liquidator.

o On liquidation, every depositor of the bank is entitled to get up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation. ▪ In September last year, RBI had imposed restrictions on Punjab and Maharashtra Co-operative (PMC) Bank not to do any business for six months after it found major irregularities, which included financial irregularities, complete failure of internal control and systems, and wrongdoing and under-reporting of its lending exposure.

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Capital Adequacy Ratio ▪ Capital Adequacy Ratio (CAR) is the ratio of a bank’s capital in relation to its risk weighted assets and current liabilities. It is also known as Capital-to-Risk Weighted Asset Ratio (CRAR). ▪ It is decided by central banks to prevent commercial banks from taking excess leverage and becoming insolvent in the process. ▪ The Basel III norms stipulated a capital to risk weighted assets of 8%. ▪ However, as per RBI norms, Indian scheduled commercial banks are required to maintain a CAR of 9%. Deposit Insurance and Credit Guarantee Corporation ▪ DICGC came into existence in 1978 after the merger of Deposit Insurance Corporation (DIC) and Credit Guarantee Corporation of India Ltd. (CGCI) under the Deposit Insurance and Credit Guarantee Corporation Act, 1961.

o It serves as a deposit insurance and credit guarantee for banks in India. o It is a fully owned subsidiary of and is governed by the Reserve Bank of India. ▪ DICGC charges 10 paise per ₹100 of deposits held by a bank. The premium paid by the insured banks to the Corporation is paid by the banks and is not to be passed on to depositors. ▪ DICGC last revised the deposit insurance cover to ₹5 lakh in Feb, 2020, raising it from ₹ 1 lakh since 1993. The protection cover of deposits in Indian banks through insurance is among the lowest in the world.

o The Damodaran Committee on ‘Customer Services in Banks’ (2011) had recommended a five-time increase in the cap to ₹5 lakh due to rising income levels and increasing size of individual bank deposits. ▪ Banks, including regional rural banks, local area banks, foreign banks with branches in India, and cooperative banks, are mandated to take deposit insurance cover with the DICGC. Co-operative Banking

▪ A Co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. It is distinct from commercial banks. ▪ Co-operative banks in India are registered under the States Cooperative Societies Act. The Co-operative banks are regulated by both Registrar of Co-operative Societies and Reserve Bank of India (RBI) and governed by the

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o Banking Regulations Act 1949. o Banking Laws (Co-operative Societies) Act, 1955. ▪ Features of Cooperative Banks:

o Customer Owned Entities: Co-operative bank members are both customer and owner of the bank. o Democratic Member Control: Co-operative banks are owned and controlled by the members, who democratically elect a board of directors. Members usually have equal voting rights, according to the cooperative principle of “one person, one vote”. o Profit Allocation: A significant part of the yearly profit, benefits or surplus is usually allocated to constitute reserves and a part of this profit can also be distributed to the co-operative members, with legal and statutory limitations. o Financial Inclusion: They have played a significant role in the financial inclusion of unbanked rural masses. ▪ Co-operative Banks are broadly classified into Urban and Rural co-operative banks based on their region of operation. Difference between UCBs and Commercial Banks

▪ Regulation: Unlike commercial banks, UCBs are only partly regulated by the RBI. Their banking operations are regulated by the RBI, which lays down their capital adequacy, risk control and lending norms. However, their management and resolution in the case of distress is regulated by the Registrar of Co-operative Societies either under the State or Central government. ▪ Borrower can be a Shareholder: In general for a commercial bank, there is a clear distinction between its shareholders and its borrowers whereas in a UCB, borrowers can even double up as shareholders.

35. Economic recovery may take over a year, says CII

Context:

• Strategy paper submitted by the Confederation of Indian Industry (CII) to the Central Government. Details: Industry concerns:

• A survey among the member CEOs of the CII notes the likelihood of job losses.

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• The survey also notes the complete shutdown of operations as their biggest problem, followed by a lack of demand, supply and distribution chain disruption, and a credit crunch. • The CII has opined that an economic recovery would take over a year. Suggestions: Calibrated exit:

• Given the immense economic impact, the CII has argued for a calibrated exit from the lockdown in the country’s most crucial economic regions. Changes in zone classification:

• The CII has called for changes in zone classification. • Within the high economic value districts, small restricted areas such as the actual street, mohalla, building or industrial complex where COVID-19 cases have been identified should be treated as the containment zone. An area of about 500 m radius around these areas should be treated as orange zone. The remaining area of the district should be classified as green zones. Focussing on priority districts:

• The CII has argued that the country’s high performing economic districts should be allowed to play by different rules in the third phase of the lockdown. • The 100-150 districts with the highest economic value identified either through GDP contribution or density of industrial clusters should be allowed to restart industrial activity, even in containment areas, if stringent rules are followed. Testing and health protocols:

• Aggressive door-to-door testing, or group testing covering 100% of the population can be carried out in priority zones and stringent sanitation and distancing protocols can be mandated. • Personal protective equipment should be provided free of cost for all within the industrial unit. Workers would have to be housed on the premises or within walking distance and both raw materials and finished goods would be disinfected and kept in isolation for 72 hours before use. • CII has argued that the cost of 100% testing and aggressive health protocols is lower than continued shutdown in these areas.

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36. Global Energy Review 2020

Context: International Energy Agency (IEA) has released its Global Energy Review 2020 report.

Key findings:

1. Global energy demand is projected to fall six per cent in 2020. 2. This will be steepest decline in percentage terms in 70 years and the largest ever in absolute terms. 3. All fuels except renewables are set to experience their greatest contractions in demand for decades. 4. The projected 6% decline would be more than seven times the impact of the 2008 financial crisis on global energy demand, reversing the growth of global energy demand over the last five years. 5. According to the report advanced economies will experience the greatest declines in energy demand in 2020. 6. In India, energy demand would decline for the first time, following on from low demand growth in 2019. 7. Global oil demand in 2020 is projected to drop by 9 per cent or 9 million barrels per day on an average across the year, returning oil consumption to 2012 levels. Global coal demandis projected decline by 8 per cent, in large part because electricity demand will be nearly 5 per cent lower over the course of the year. 8. Global Electricity Demand has been declined by 20% during periods of full lockdown in several countries. However, the residential demand is outweighed by reductions in commercial and industrial operations.

What next?

According to IEA, if lockdowns are shorter and the global recovery is more rapid, the decline in global energy demand across 2020 could be limited to 3.8 per cent, which is still four times the decline during the global financial crisis.

About IEA:

Established in 1974 as per framework of the OECD, IEA is an autonomous intergovernmental organisation.

MISSION – To ensure reliable, affordable and clean energy for its member countries and beyond.

Its mission is guided by four main areas of focus: energy security, economic development, environmental awareness and engagement worldwide

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Headquarters (Secretariat): Paris, France.

Roles and functions:

Established in the wake of the 1973-1974 oil crisis, to help its members respond to major oil supply disruptions, a role it continues to fulfill today.

IEA’s mandate has expanded over time to include tracking and analyzing global key energy trends, promoting sound energy policy, and fostering multinational energy technology cooperation.

Composition and eligibility:

It has 30 members at present. IEA family also includes eight association countries.

A candidate country must be a member country of the OECD. But all OECD members are not IEA members.

To become member a candidate country must demonstrate that it has:

1. Crude oil and/or product reserves equivalent to 90 days of the previous year’s net imports, to which the government has immediate access (even if it does not own them directly) and could be used to address disruptions to global oil supply. 2. A demand restraint programme to reduce national oil consumption by up to 10%. 3. Legislation and organisation to operate the Co-ordinated Emergency Response Measures (CERM) on a national basis. 4. Legislation and measures to ensure that all oil companies under its jurisdiction report information upon request. 5. Measures in place to ensure the capability of contributing its share of an IEA collective action.

Reports:

1. Global Energy & CO2 Status Report. 2. World Energy Outlook. 3. World Energy Statistics. 4. World Energy Balances. 5. Energy Technology Perspectives.

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37. Can antibody tests help tackle COVID-19?

Context:

• The rapid testing kits being used to detect antibodies to the novel coronavirus were found to be providing unreliable results and have been stopped. RT-PCR test:

• An RT-PCR test on a nasal or throat swab involves extracting RNA or ribonucleic acid, the genetic material of the virus, and checking if it shares the same genetic sequence as the SARS-CoV-2 virus. Concerns:

• The current RT-PCR technology requires RNA extracting machines, a specialised laboratory, and trained technicians. The test is a time consuming process, involves large scale logistics, requires many chemicals and involves substantial costs. Advantages:

• The only way such tests turn negative is if the actual sample does not have the virus or the swab was not properly administered and too little of the virus was gleaned. So, the chances of faults are limited if the set guidelines are appropriately followed • The RT-PCR test is currently the ‘gold standard’ in detecting the virus. Antibody tests:

• Antibody tests, also called serological tests, detect the presence and quantity of antibodies that are produced by the immune system to battle an infection. • It is an indirect test because it cannot find the virus, but it can determine if the immune system has encountered it. • Two kinds of antibodies result from an infection: Immunoglobulin M and Immunoglobulin G (IgM and IgG). In response to an infection, the IgM is first produced within a week of infection. Two weeks later, the levels of IgM reduce and are replaced by IgG. The latter is a longer-lasting antibody and, depending on the infectious agent involved, can offer different durations of immunity. Concerns:

• Antibodies can show up only between nine to 28 days after an infection has set in. Thus, an undetected infected person, if not isolated, can spread the disease. • The antibodies may be produced in response to a closely-related pathogen also and not necessarily novel coronavirus.

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• Due to a lack of sufficient research on the study of the antibodies and the profile of recovered patients, the antibody tests remain imperfect. • The duration of the antibodies against SARS-nCoV-19 is not documented. The lack of antibodies does not necessarily rule out the previous exposure of the person to coronavirus. Advantages:

• Antibody tests are fast and relatively inexpensive. • Antibody tests are portable, can be administered on-site and can be conducted en masse. Significance of anti-body testing:

• Antibody tests can be used to gauge the extent of infection in a community or a large group of people who may have had exposure to the virus. • Studies in India too have shown that for every symptomatic positive, there are two asymptomatic or presymptomatics (those who do not visibly manifest the disease). It helps identify if the virus is present in certain clusters. This can help government authorities decide on what regions in a lockdown can be opened up if the aim is to get regular life back on track as soon as possible. Rapid antibody tests can also play a role in determining the degree of “herd immunity” in a population. • Herd immunity means that when a sizeable fraction of the population has been infected, the virus ceases its pace of spread. Way forward:

• The Indian Council of Medical Research (ICMR) has advised States to use antibody testing for surveillance and use real time RT-PCR (or real-time reverse transcription-polymerase chain reaction) tests for diagnosis. • There have been efforts to produce the antibody testing kits domestically.

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38. National Infrastructure Pipeline (NIP)

• To augment infrastructure and create jobs in the country, the government task force on National Infrastructure Pipeline (NIP), which in its report projected total investment of Rs 111 lakh crore in infra projects over five years. • It said that 18 per cent of the targeted investment is expected to be made in the road sector.

What is the National Infrastructure Pipeline (NIP)?

• NIP includes economic and social infrastructure projects. • During the fiscals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) amount to around 70% of the projected capital expenditure in infrastructure in India. • It has outlined plans to invest more than ₹102 lakh crore on infrastructure projects by 2024-25, with the Centre, States and the private sector to share the capital expenditure in a 39:39:22 formula.

Key benefits of NIP

• Economic: Well-planned NIP will enable more infra projects, grow businesses, create jobs, improve ease of living, and provide equitable access to infrastructure for all, making growth more inclusive.

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• Government: Well-developed infrastructure enhances the level of economic activity, creates additional fiscal space by improving the revenue base of the government, and ensures the quality of expenditure focused in productive areas. • Developers: Provides a better view of project supply, provides time to be better prepared for project bidding, reduces aggressive bids/ failure in project delivery, ensures enhanced access to sources of finance as a result of increased investor confidence. • Banks/financial institutions (F1s)/investors: Builds investor confidence as identified projects are likely to be better prepared, exposures less likely to suffer stress given active project monitoring, thereby less likelihood of NPAs.

Projects include

• The report contains recommendations on general and sector reforms relating to key infrastructure sectors for implementation by the Centre and states. • These projects will be implemented under the National Infrastructure Pipeline (NIP), a first of its kind exercise, by consulting states, relevant ministries and departments. • Three committees will be set up to monitor project progress, eliminate delays, and find ways to raise resources, along with a steering committee in each of the infrastructure ministries. • Sectors such as energy (24%), roads (18%), urban (17%) and railways (12%) amount to around 71% of the projected investments. • The projects will also be spread across sectors such as irrigation, mobility, education, health, water and the digital sector.

39. Demo-2 Mission

Why in News National Aeronautics and Space Administration (NASA) and SpaceX are all set for the Demo-2 mission which is scheduled for 27th May, 2020 from the Kennedy Space Center in Cape Canaveral, Florida, USA.

▪ Demo-2 Mission will send astronauts to the International Space Station (ISS). Key Points ▪ Under the Mission, astronauts Robert Behnken and Douglas Hurley will dock with ISS and then remain there for between one to four months, depending on the time of next mission. ▪ It is a part of NASA’s Commercial Crew Program, which is a partnership to develop and fly human space transportation systems.

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▪ SpaceX spacecraft named Crew Dragon will be used to take them into space.

o It will be only the fifth class of US spacecraft to take human beings into orbit, after the Mercury, Gemini, Apollo and Space Shuttle programs. ▪ It is a high priority mission for the US which is clear by the fact that the mission is being carried out amidst Covid-19 pandemic. ▪ The mission is a major milestone for SpaceX, which is a private company founded by Elon Musk, who is the founder of Tesla.

o It has established itself as the leader in the private space sector mainly due to its reusable rocket, the Falcon 9. ▪ NASA classifies the impact of space flight on humans in 5 broad criteria known as 5 Hazards. These are:

o Radiation o Isolation and confinement o Distance from Earth o Gravity o Hostile/closed environments ▪ Health Specific Impacts:

o Weightlessness and osteoporosis o Telomeres get longer during spaceflight o Decreased body mass and increased folate in orbit o Spaceflight can Trigger Gene Mutations Project Mercury (1958-63)

▪ It was the first US man-in-space program. ▪ The objectives of the program, which made six manned flights from 1961 to 1963, were specific:

o To orbit a manned spacecraft around Earth. o To investigate man's ability to function in space. o To recover both man and spacecraft safely. Gemini Program (1962-66)

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▪ Designed as a bridge between the Mercury and Apollo programs, it primarily tested equipment and mission procedures and trained astronauts and ground crews for future Apollo missions. ▪ Four main goals:

o To test an astronaut's ability to fly long-duration missions (up to two weeks in space). o To understand how spacecraft could meet and dock in orbit around the Earth and the moon. o To perfect re-entry and landing methods. o To further understand the effects of longer space flights on astronauts. Apollo Program (1963-72)

▪ It was designed to land humans on the Moon and bring them safely back to Earth.

o Six of the missions (Apollos 11, 12, 14, 15, 16, and 17) achieved this goal. o These missions returned with scientific data and almost 400 kilograms of lunar samples. ▪ Apollo 8 was the first manned mission to go to the moon. This mission did not land on the moon. It orbited the moon, then came back to Earth. ▪ Apollo 11 was the first moon landing mission. It landed on 20th July, 1969. The crew of Apollo 11 was Neil Armstrong, Michael Collins and Buzz Aldrin. Space Shuttle Program (1981-2011)

▪ NASA's space shuttle fleet, Columbia, Challenger, Discovery, Atlantis and Endeavour, flew 135 missions and helped construct the ISS. ▪ The spacecraft carried people into orbit repeatedly, launched, recovered and repaired satellites, conducted cutting-edge research and built the largest structure in space. ▪ The final space shuttle mission, STS-135, ended on 21st July, 2011. ▪ As humanity's first reusable spacecraft, the space shuttle pushed the boundaries of discovery ever farther, requiring not only advanced technologies but the tremendous effort of a vast workforce.

40. China to Launch Official Digital Currency

Why in News Recently, China has started testing its official digital currency which is unofficially called “Digital Currency Electronic Payment, DC/EP”.

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Key Points ▪ The digital currency of China has not been officially released but internal pilot tests are being carried out in four cities of China. ▪ China is expected to officially make the sovereign digital currency available to the public later in 2020. ▪ It could be considered the world’s first Central Bank Digital Currency (CBDC) if it is officially issued by state bank People’s Bank of China. ▪ The total size of China’s digital currency could reach one trillion yuan ($140 billion), equivalent to about one-eighth of China’s cash. Digital Currency ▪ Digital currency is a payment method which exists only in electronic form and is not tangible. ▪ Digital currency can be transferred between entities or users with the help of technology like computers, smartphones and the internet. ▪ Although it is similar to physical currencies, digital money allows borderless transfer of ownership as well as instantaneous transactions. ▪ Digital currency is also known as digital money and cybercash. ▪ E.g. Cryptocurrency Cryptocurrency ▪ A cryptocurrency is a digital or virtual currency that uses cryptography for security. ▪ Cryptocurrencies use decentralized technology to let users make secure payments and store money without the need to use their name or go through a bank. ▪ They run on a distributed public ledger called blockchain, which is a record of all transactions updated and held by currency holders. ▪ The most common cryptocurrencies are Bitcoin, Libra, Ethereum, Ripple, and Litecoin. India’s Stand on Digital Currency

▪ The Reserve Bank of India (RBI) had banned cryptocurrencies in 2018.

o RBI had considered cryptocurrencies as a poor unit of account and also demonstrated by their frequent and high fluctuation in value. o RBI also stated that it pose several risks, including anti-money laundering and terrorism financing concerns (AML/CFT) for the state and liquidity, credit, and operational risks for users. o It had also said that it would seriously consider developing a sovereign digital currency when the time is appropriate

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▪ Subsequently, the Supreme Court has struck down a circular of the RBI, which bans financial institutions from enabling deals in digital or cryptocurrencies.

o The ban was challenged by the Internet & Mobile Association of India (IAMA) sighting that dealing and trading in cryptocurrency was a legitimate business activity and that the RBI did not have jurisdiction over it as these assets could be classified as commodities rather than currency.

41. WHO raises concern over use of BCG vaccine

Context:

• The use of BCG vaccine against COVID-19. Background: BCG Vaccine:

• BCG vaccine is primarily used to protect children against TB in high-risk countries. • BCG given early in life helps improve the immune system and has been proved to be effective in preventing intra-cellular infections. BCG vaccine and COVID:

• A study has found an association between countries that have a universal BCG vaccination and reduced coronavirus cases and deaths. • The study notes that the BCG vaccine by enhancing the innate immune response to subsequent infections helps reduce viral load after SARS-CoV-2 exposure, with a consequent less severe COVID-19 and more rapid recovery. • This has led to further research to conclusively prove the efficacy of the BCG vaccine against COVID-19. • Randomised controlled trials are underway in the Netherlands and Australia to find out whether the BCG vaccine can reduce the incidence and severity of COVID-19 among healthcare workers. Details:

• The World Health Organization (WHO) has expressed a few critical issues over the use of BCG vaccine for COVID-19.

• The study establishing the relation between fewer COVID-19 cases and universal BCG vaccination programme is based on population rather than individual data, which casts doubt over the accuracy of the conclusion.

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• BCG vaccine is given at birth and is unlikely to reduce the severity of COVID-19 decades later. There is also the possibility that the beneficial off-target effects of the BCG vaccine might have been altered by subsequent administration of a different vaccine. • The SARS-nCoV-19 induces cytokine storm in some patients, leading to complications and even death. The BCG vaccine may ramp up the immune system leading to exacerbation of COVID-19 in a small population of patients with severe disease. • BCG vaccination is likely to give a false sense of security to people, especially during the pandemic. • The use of the vaccine without evidence of its benefits could affect the vaccine supply to protect children against TB in high-risk countries. • WHO has underscored the importance of randomised controlled trials of the BCG vaccine to understand its safety and efficacy before using it on healthcare workers.

42. It’s about food, nutrition and livelihood security

The editorial throws light upon how the current national lockdown announced to tackle the COVID-19 pandemic, has highlighted the problems of food, nutrition and livelihood security confronting a large number of rural people, in particular, migrants to cities. Issues:

• If food availability, food access and food absorption is ensured, then there would be a fairly robust system of food and nutrition security. All the above dimensions are, however, now threatened by the novel coronavirus. • It is very critical to highlight the linkages between agriculture, nutrition and health. • While the Public Distribution System (PDS) may be able to meet calorie needs, the inability to harvest, transport and market perishable fruits and vegetables at remunerative prices during the current crisis, has not just deprived farmers of incomes and livelihoods, but consumers too are deprived of micronutrients in their diets. • Farmers making losses, and agriculture moving from being job-led to jobless, raise questions about the sustainability of the production cycle. • At the same time, this can have long-term consequences on nutrition and health security. Addressing the problem:

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While some measures have been announced, there is a need to understand the different dimensions of food security in a holistic manner in order to address this problem in its totality. Availability of food in the market:

• The availability of food in the market is seen as a function of production. • Owing to the Green Revolution, today India has enough food in the market and in government godowns. • This is a great accomplishment by Indian farmers who converted a “ship to mouth” (goods straight off from ship to the mouth of the consumer) situation to a “right to food” commitment. Farmers’ contributions in terms of sustainable production must not be taken for granted. • Though a few special exemptions have been given to the agricultural sector, farmers are confronted with many problems. • Labour shortages, many of the inputs including seeds being unavailable, marketing arrangements including supply chains not being fully functional, pricing not being remunerative, and also, public procurement not being adequate are a few of the problems. There is no room for complacency especially in a situation where there is the absence of demand, lack of storage or value addition facilities, specifically for perishable commodities. Access to food:

• Access to food is a function of purchasing power. • Fortunately, the government, through the National Food Security Act (NFSA) and the PDS, has assured some additional food to every individual during this crisis. • This should be further strengthened and the food basket widened by including millets, pulses and oil. • Steps should also be taken to avoid hidden hunger caused by the deficiency of micronutrients in the diet. • In light of the closure of schools and Anganwadi centres, and the consequent disruptions in the provision of midday meals or other nutritional inputs, it is important to pay attention to the life cycle approach advocated in the NFSA, particularly the first thousand days in a child’s life, when the cognitive abilities of the child are shaped. • India might otherwise see negative effects on nutritional security in the medium to longer term. Ensuring Job Security through value addition:

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• Currently, a lot of people employed both on farms and in the non-farm sector are without jobs. If job security is threatened, then so is food and nutrition security. • It must be ensured that people do not lose their jobs. • One way of doing this will be to ensure value addition to primary products. • One example of such value addition is the Rice Biopark in Myanmar, wherein the straw, bran, and the entire biomass are utilised. • This would, of course, mean some attention to and investment in new technologies that can contribute to biomass utilisation. • The Amul model provides a good example from the dairy sector of improved incomes to milk producers through value addition. Similar attention needs to be given to the horticulture sector on a priority basis. Women farmers are at the forefront of horticulture and special attention needs to be given to both their technological and economic empowerment during this crisis. Work under MGNREGA:

• Another pathway to livelihood security for small and marginal farmers and landless households, and women within them, is strengthening the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). • The definition of a worker in MGNREGA has so far been applied only to unskilled, manual work, and not to skilled jobs in agriculture and allied activities. • Given the lack of jobs and incomes during the COVID-19 crisis, it is imperative to expand the definition of work in MGNREGA to cover skilled work related to farmers and their farming activities. • This is particularly important for women farmers and workers, who should not just be given tasks of carrying stones or digging mud. • Apart from farming, they engage in a range of essential care tasks, including caring for children, the elderly and sick people. • These tasks, often invisible, need to be recognised as work and supported with appropriate education, including on nutrition. Focus on non-food factors:

• Absorption of food in the body or its utilisation is dependent importantly on sanitation, drinking water and other non-food factors, including public health services. It is another dimension of food security. • Ensuring that these services are functional depends on the capacities of the local panchayats and their coordination with other local bodies.

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• The lack of adequate clean water, in particular, has come to the fore in both rural areas and urban slums in the context of COVID-19, where one of the key measures for stopping transmission relates to frequent hand-washing. Conclusion:

• India avoided what could have been a big famine in the 1960s through the help of technology and public policy, which actively worked with and supported farmers to achieve significant increases in yield. • Through a combination of farmers’ cooperation, technological upgrading and favourable public policies in procurement, pricing and distribution, India can deal with the fallouts of the pandemic.

43. Core Sector Shrinks by 6.5%

Why in News According to the data released by the Ministry of Commerce and Industry, the eight core sector industries contracted by 6.5% in March, 2020.

▪ The cumulative growth of eight core sector industries during 2019-20 was 0.6%. ▪ In February, 2020, the eight core sector industries recorded a growth of 5.5%. Key Points ▪ Seven out of eight core sectors contracted in the month of March.

o The contraction was led by steel production, electricity, cement production, natural gas production, fertiliser production, crude oil production and petroleum & refinery production. o Coal was the only core sector which saw growth. ▪ The contraction in the core sector has occurred despite the fact that several of the core sector industries were given exemptions under the lockdown. E.g electricity and steel which are continuous processes and were not stopped. ▪ However, the movement of goods faced major restrictions due the nationwide lockdown, resulting in reduced demand which led to reduced production. ▪ The March core sector data also reflected the cut in capital expenditure by both state and central governments in order to make up for falling tax revenues.

o The capital expenditure is defined as the money spent on the acquisition of assets like land, buildings, machinery, equipment, as well as investment in shares.

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o High capital expenditure usually means more investment by the government towards the creation of infrastructure and other assets that are crucial for rapid economic growth. Core Sector Industries

▪ The eight core sector industries include coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity ▪ The eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). ▪ The eight Core Industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.

Industry Weight (In percentage)

Petroleum & Refinery production 28.04

Electricity generation 19.85

Steel production 17.92

Coal production 10.33

Crude Oil production 8.98

Natural Gas production 6.88

Cement production 5.37

Fertilizers production 2.63

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Index of Industrial Production ▪ The Index of Industrial Production (IIP) is an indicator that measures the changes in the volume of production of industrial products during a given period. ▪ It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation. ▪ IIP is a composite indicator that measures the growth rate of industry groups classified under:

o Broad sectors, namely, Mining, Manufacturing, and Electricity. o Use-based sectors, namely Basic Goods, Capital Goods, and Intermediate Goods. ▪ Base Year for IIP is 2011-2012. ▪ The eight core industries of India represent about 40% of the weight of items that are included in the IIP. ▪ Significance of IIP :

o It is used by government agencies including the Ministry of Finance, the Reserve Bank of India, etc, for policy-making purposes. o IIP remains extremely relevant for the calculation of the quarterly and advance GDP estimates.

44 .Plasma therapy is no silver bullet

Importance of scientific research in dealing with Covid-19

• The COVID-19 pandemic has posed unprecedented challenges to governments, health professionals and the general public at large, around the world. • Every response, administrative, social, economic or medical is being subjected to intense public scrutiny, as it rightly should be in the spirit of mature democracy. • Scientific research in medicine is the only means to overcome novel and complex diseases such as COVID-19 and that too thrives on the same spirit of debate and criticism. • Difficulty in establishing protocols: The difference is that the standards of evidence required, to generate consensus and arrive at the most optimal protocols, are far more rigorous and time-taking than in most other walks of life.

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Issues with plasma therapy

• The convalescent plasma therapy, that is being currently studied by the Indian Council of Medical Research, through open-label, randomised controlled trial to evaluate it for both safety and efficacy. • The problem with the therapy is of the lack of established protocols. • What is involved in therapy? The therapy involves infusing patients suffering from COVID-19 with plasma from recovered patients. • In theory, the antibodies of the recovered person may help that patient’s immune system fight the virus. treat • While showing great promise, it is a line of ment that is yet to be validated for efficacy and safety and cannot be deployed widely without caution. • The current evidence to conclude anything about the true benefits of this therapy is very thin. • Till date, there have been only three published case series for convalescent plasma in COVID-19 with a cumulative of 19 patients. • Given the very small number of patients involved in these studies and a publication bias in medicine, we cannot conclude the therapy will work on all patients all the time or even believe that the convalescent plasma was the only reason for their improvement. • The most important principle in medical ethics is “do no harm”. • The transfusion of convalescent plasma is also not without risks, which range from mild reactions like fever, itching, to life-threatening allergic reactions and lung injury. • To recommend a therapy without studying it thoroughly with robust scientific methods may cause more harm than good. • Further, convalescent plasma therapy requires intensive resources, healthy COVID-19 survivors to donate, a blood bank with proper machinery and trained personnel to remove plasma, equipment to store it and testing facilities to make sure it has an adequate amount of antibodies.

Need for the Randomised Controlled Trials (RCT)

• To say with certainty whether a drug is truly effective or not, the gold standard in medicine is to conduct a randomised controlled trial. • In RCT half the patients get the experimental drug and the other half do not. • Only if patients in the first half show substantial improvement over those in the second half, it indicates the drug is beneficial.

Exploring other options and focusing on health infrastructure

• Too much focus on one approach can take away the focus from other important therapeutic modalities like the use of oxygen therapy, antivirals, and antibiotics for complicated hospital courses.

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• To overcome the pandemic comprehensively, we should focus on strengthening health systems at all levels, including referral systems, supply chain, logistics and inventory management. • We need to work on protecting our healthcare workers, improving prevention methods, promoting cough etiquettes, effective quarantining and accurate testing.

Conclusion Even these times of collective uncertainty are no reason to lower scientific temper. Science should be driven by reason and evidence with hope as a catalyst but not by either fear or populism. Pushing one or the other therapy without evidence or caution can only set back our larger fight against COVID-19.

45. Rethinking the role of Intellectual Property in Corona crisis

Purpose of patent rights

• The purpose of creating and recognising patent rights is for the common public good, i.e., innovation should be made public in exchange for a limited monopoly. • Thus, patents need to be disclosed to the public in order to enable further research. • Should pandemics such as COVID-19be an exception to this? • With the outbreak of COVID-19, there are several innovations. • All these innovations may be the subject matter of patent applications around the world. • It will be a few years before patents are even granted. • However, friction already exists among various stakeholders. • For instance, one country made attempts to obtain exclusive rights to a vaccine being developed. • On the other hand, there are also collaborations taking place. • However, the spirit of collaborative solutions is only on the anvil. • The question that arises is whether the exclusivity that is recognised by patent rights will be detrimental to society. • Will patents create roadblocks or is there a solution?

Possibility of conflicts over patent rights

• Governments and international organisations need to arrive at a consensus in advance to ensure that the system is ready. • Procrastination would be disastrous. • Creating hindrances through exclusivity claims, in the wake of a pandemic, will result in dividing countries, corporations and international organisations. • This will not benefit patients and the world as a whole.

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• If patent owners create impediments on the strength of patent rights, the world will start despising patents and that is not a situation IP owners ought to be in. • Under the TRIPS (Trade-Related Aspects of Intellectual Property Rights) regime, there are several tools such as compulsory licensing that are available to ensure access to medicines. • However, beyond the laws, society needs to respect innovation. • To protect the sanctity and integrity of patent systems, and in order to ensure that an anti-IP sentiment is not generated globally, answers need to be found within the existing regime. • In exceptional circumstances such as these, there is a likelihood that societies may resort to extreme steps to protect themselves. • Before such ideas are floated, solutions should be created.

The idea of creating a patent pool

• One method by which aggregation and dissemination of innovative products can be ensured is by creating a patent pool. • Patent pools are usually effective in aggregating, administering and licensing patents related to specific areas of technology. • Such pools are usually managed by a central agency and the patents which become part of the pool are readily made available for licensing. • Some pools even publish the royalty rates payable for such licences. • Anyone who wishes to obtain a licence will be able to approach the pool, agree to the terms, and begin to manufacture and sell the products. • Such pools are prevalent in, for instance, standard essential patents related to telecom and digital innovations. • At the moment, individual efforts are being made by research organisations to create their own pools. • A more fruitful endeavour would be to create a global pool of COVID-19-related innovations, or innovations related to rare pandemics, in respect of vaccines and medicines. • This could be managed by a trustworthy international organisation. • All countries ought to have the right to implement these innovations without further permission from the patent-holders. • This would not require countries resorting to provisions such as compulsory licensing, state acquisition, etc. • Even if royalties are at a minimal level, the revenues would still be in billions of dollars owing to the large swathes of the population affected by the pandemic, who will need to be administered these products.

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Way forward

• Creation of a pool and immediate licensing will ensure that there are hundreds of manufacturers across the world. • As a result, vaccines and medicines will be quickly available. • Such a pool needs the cooperation of not just countries and international organisations but also the hundreds of researchers, innovators, companies and universities involved. • Doha Declaration: Pooling of patent resources is also in line with the Doha Declaration on Public Health which is a part of the TRIPS agreement. • This declaration recognises the need for taking measures to ‘protect public health’ and ‘promote access to medicines’.

Conclusion Public-private partnerships (PPP) need to be scaled up. Creation of the ‘PPP-pandemic patent pool’ at a global level, to pool all innovations, is the way forward. Let us not wait any longer.

46. Global Energy Review 2020 : IEA Why in News Recently, the International Energy Agency (IEA) has released a report namely, Global Energy Review:2020 which also includes the impact of the Covid-19 crisis on global energy demand and CO2 emissions.

▪ The imposition of lockdown in several countries has largely restricted transportation such as road and air travel. In turn, the drastic reduction in the global energy demands has been observed. Global Energy Demands ▪ The countries in full lockdown are experiencing an average decline of 25% in energy demand per week, while in those with a partial lockdown, the fall in energy demand is about 18% per week. ▪ Global energy demand declined by 3.8% in the first quarter of 2020 compared to the first quarter of 2019. ▪ Further, it is expected that the impact of Covid-19 on energy demand in 2020 would be more than seven times larger than the impact of the 2008 financial crisis on global energy demand. ▪ Considering the above scenario the global demand of various energy sources can be analysed as given below:

o Coal Demand:

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• It has been declined by 8% compared with the first quarter of 2019. • The reasons for such decline include, China – a coal-based economy – was the country hardest hit by Covid-19 in the first quarter and cheap gas and continued growth in renewables elsewhere challenged coal. o Oil Demand:

• It has declined by 5% in the first quarter, majorly due to curtailment in mobility and aviation, which account for nearly 60% of global oil demand. • The report also estimates that the global demand for oil could further drop by 9% on average in 2020, which will return oil consumption to 2012 levels. o Gas Demand:

• The impact of the pandemic on gas demand has been moderate, at around 2%, as gas-based economies were not strongly affected in the first quarter of 2020. o Renewables Energy Resources Demand:

• It is the only source that has registered a growth in demand, driven by larger installed capacity. • Further, the demand for renewables is expected to rise by 1% by 2020 because of low operating costs and preferential access for many power systems. o Electricity Demand:

• It has been declined by 20% during periods of full lockdown in several countries. • However, the residential demand is outweighed by reductions in commercial and industrial operations.

Covid-19 and CO2 Emissions ▪ Overall, the emissions decline in 2020 could be 8% lower than in 2019, which would be the lowest level of emissions since 2010. ▪ It is also the largest level of emission reduction — six times larger than witnessed during the 2009 financial crisis, and twice as large as the combined total of all reductions witnessed since World War II.

▪ In the first quarter of 2020, the decline in CO2 emissions is more than the fall in global energy demand. India’s Energy Demands ▪ India, which is one of the IEA association countries, has experienced a reduction in its energy demands by 30% as a result of the nation-wide lockdown.

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▪ Moreover, in India, where economic growth and power production are slowing significantly, the demand for coal is expected to decline steeply.

o China and India are the largest and third-largest electricity users in the world respectively, and coal use is dominant in both these countries shaping the global demand for this fuel. International Energy Agency

▪ The International Energy Agency (IEA) is an autonomous organisation which works to ensure reliable, affordable and clean energy. ▪ It was established in the wake of 1973 (set up in 1974) oil crisis after the OPEC cartel had shocked the world with a steep increase in oil prices. ▪ It is headquartered in Paris, France. ▪ World Enegry Outlook report is released by IEA annually. ▪ India became an associate member of the International Energy Agency in 2017. ▪ Mexico officially became the International Energy Agency’s 30th member country in February 2018, and its first member in Latin America.