Cag' S Reports on Railways

Editor’s Message

This is not a journalistic venture but an academic one designed to handhold keen and sincere UPSC aspirants. We do not claim this to be yet another surrogate window to the world. We are sure, nevertheless, that you would find this venture novel as well as useful.

www.amritaias.com | [email protected] | +91 85890 60000 3

In This Issue Sl. Topic GS Page No. Paper No. 1. India Needs Smart Urbanisation I & III 4 2. Changing Dimensions of Globalisation I & II 12 3. Issue of Triple Talaq I & II 18 4. Interlinking of Rivers I & III 23 5. How India Should Close the Financial Gender Gap I, II & III 29 6. Kerala Floods: Need for a Relook on Fate of Western Ghats I & III 34 7. Iran-India Relations II 39 8. Recent Development in USA-India Relations II 48 9. Constitutional Status to National Commission for Backward Classes II 55 10. The Scheduled Castes and the Scheduled Tribes (Prevention of Atroc- II 60 ities) Act, 1989 Amendment 11. Representation of People (Amendment) Act, 2017 II 65 12. Rejuvenating the System for Skill Development II 74 13. Australia Recommence its Adoption Programme with India II 84 14. Arbitration & Conciliation (Amendment) Bill, 2018 II 91 15. RCEP And Challnges for India II 96 16. Digital Payment Ecosystem snd its Problems II & III 101 17. Impact of the Falling Rupee on Economy II & III 107 18. CAG’s Reports on Railways II & III 114 19. National Water Ways Projects II & III 121 20. E-governance Initiatives II & IV 126 21. Prevention of Corruption (Amendment) Bill, 2013 II & IV 133 22. Food Processing Related Issues III 142 23. Military Reforms in India III 148 24. Climate Resiliant Economy and Green Financing III 156 25. Zero Budget Natural Farming III 165 26. Private Manufacturing of Oxytocin III 176 27. Block Chain Technology III 179 28. Reforming Indian Agriculture III 185 29. A Long-term Strategy to Reduce Crude Imports III 193 30. Bio-fuels and Biofuel Policy III 199 31. Cabinet Relaxes New Exploration Licensing Policy (NELP) III 205

www.amritaias.com | [email protected] | +91 85890 60000 4

INDIA NEEDS SMART URBANISATION 1 [GS-I & GS-III]

Context • Residents of Bhavanpur, a village about 15 km outside Ahmedabad, have been protesting against their inclusion in the city’s urban area by the local urban development authority. • Similar protests have been observed in villages else- where in Gujarat. It’s a strange trend, the fruits of urban development seemingly rejected. • Meanwhile, pollution in India’s urban areas seems to have sparked off a reverse migration. • Farmers from Haryana who had migrated to Delhi and Gurugram for work to escape an agricultural crisis are increasingly going back to their farms during winter, unable to take the toxic pollution. And it’s not just big cities.

Major causes of urbanization • Industrial revolution: Industrial employment catches the attention of people. • Emergence of large manufacturing centres. • Job opportunities: There are ample job opportunities in mega cities. • Availability of transportation: Due to easy transport, people prefer to stay in big cities. • Migration: Migration is main cause for rapid growth of mega-cities. • Infrastructure facilities in the urban areas.

www.amritaias.com | [email protected] | +91 85890 60000 5

• Growth of private sector. • Political, social and cultural influences.

Urbanisation problems • Unemployment and under employment • Shortage of residential housing: slums and vulnerable to disasters. • Poverty: causes malnutrition and illness, especially on women and children • Competition on limited resources: dependency on suburban areas and nearby rural areas. • Sanitation: inadequate for sewage facilities, poor sanitation and contamination of water resources. • Epidemics: poor sanitation led to unhealthy environment. • Pollution problem: Air, Water, Noise and Soil • Transportation: poor transport system, road congestion, stress and limited number of public transport. • Social vices:poverty, lack of opportunities, psychological problems, theft, rape, alcoholism, drugs, crime, violence and other

Urban Population profile-India: • About 34% of India’s population now lives in urban areas, the UN urbanisation prospects 2018 report. • India’s current population grow at 3% since 2011. More importantly, while existing large urban agglomerations (those with a population above 50 lakh) have remained mostly constant in number since 2005; smaller clusters have risen significantly (from 34 to 50 clusters with 10-50 lakh population). • By some estimates, India’s urban population could increase to 814 million by 2050. And yet, cities look and feel downtrodden, raven with poverty and poor infrastructure, with little sem- blance of urban planning. • With an increase in urban population will come rising demands

www.amritaias.com | [email protected] | +91 85890 60000 6

for basic services such as clean water, public transportation, sewage treatment and housing.

Factors that determine urban development • Population density • Density of physical development • Possession of formal plan • Proportion of the inhabitants engaging in non-agricultural oc- cupation • Functional characters like centres of trade, commerce, learning, tourism, technology etc.. • Number and range of services • Administrative, legal or political criteria • Lifestyle of the people

Urban Development - Historical flaws • Our cities have been witnessing to multiple transitions over the last century, with barely any time to recover and adapt. • The British creation of three metropolitan port cities, combined with the rollout of the railway network, transformed India’s urban landscape, relegating erstwhile prominent Mu- ghal-era towns such as Surat and Patna into provincial backwaters. • The creation of hill stations in northern India and the advent of the plantation economy, along with industrial townships (such as Jamshedpur) transformed trading networks. • Finally, the creation of cantonments and civil lines areas, along with railway stations, in our major cities led to the haphazard growth of urban areas away from bazaars and towards railway terminals. • Transforming the colonial urban centres into neatly organised urban spaces will not be easy due to constraint of resources. • Problems of urban development are visible from sectors such

www.amritaias.com | [email protected] | +91 85890 60000 7

as housing, transport, infrastructure and services.

Schemes for urban developments 1. The Jawaharlal Nehru National Urban Renewal Mission (JN- NURM) • JNNURM initiated in December 2005 to improve living conditions in urban areas and strengthen urban governance • It helps in attending to some urban development problems. • Due to weak urban planning and implementation, The JN- NURM was not a successful initiative as expected. 2. Atal Mission for Rejuvenation and Urban Transformation (AM- RUT) • It ensures that every household has access to a tap with assured supply of water and a sewerage connection. • It proposes to increase the amenity value of cities by developing greenery and well maintained open and reduce pollution by switching to public transport or constructing facilities. • 500 cities will be covered under the Scheme. • All Cities and Towns with a population of over 1 lakh with notified Municipalities, including Cantonment Boards (Civilian areas). • All Capital Cities/Towns of States/ UTs, not covered in above. • All Cities/ Towns classified as Heritage Cities by MoUD under the HRIDAY Scheme. • Thirteen Cities and Towns on the stem of the main rivers with a population above 75,000 and less than 1 lakh. • Ten Cities from hill states, islands and tourist destinations (not more than one from each State). • • This scheme is a new avatar of the (JNNURM). • • Unlike JNNURM, AMRUT will not appraise individual projects and appraise only State Annual Action plans.

www.amritaias.com | [email protected] | +91 85890 60000 8

3. Smart cities • The objective is to promote sustainable and inclusive cities that provide core infrastructure and give a decent. • Quality of life to its citizens, a clean and sustainable environment and application of – Smart Solutions. • The focus is on creating replicable models which are meant to set examples that can be replicated both within and outside the Smart City, catalyzing the creation of similar Smart Cities in various regions and parts of the country. • Core infrastructure elements »» Water Supply »» Assured electricity supply »» Sanitation »» Solid waste management »» Efficient urban mobility and public transport »» Affordable housing, especially for the poor »» Robust IT connectivity and digitalization »» Good governance, especially e-Governance »» Citizen participation »» Sustainable environment »» Safety and security of citizens, particularly women, children and the elderly »» Health and education 4. National Heritage City Development and Augmentation Yojana (HRIDAY) • It is focused on holistic development of heritage cities. • Main objective of HRIDAY is to preserve character of the soul of heritage city and facilitate inclusive heritage linked urban development in partnership with State Government.

www.amritaias.com | [email protected] | +91 85890 60000 9

• The duration of HRIDAY schemes would be Four Years starting from December 2014.

Smart Cities Mission: Implementing at a required pace? • Meanwhile, on the ‘Smart City’ front, while over 90 ‘Smart Cit- ies’ have identified 2,864 projects, India lags on implementation, with about 148 projects completed and over 70% still at various stages of preparation. • Finally, there is still an outstanding shortage of over 10 million affordable houses (despite the government taking encouraging steps to incentivise their construction). • The annually recurring instances of floods in Mumbai, dengue in Delhi and lakes on fire in Bengaluru paint a grim picture. • While work continues, admittedly slowly, on the Delhi-Mumbai Industrial Corridor project and the bullet train, urban India’s challenges remain manifold.

Governance issues in Urban development: • One primary problem is that of the definition of what’s urban. Urban development comes under State governments, with the Governor notifying an area as urban based on parameters such as population, density, revenue generated for the local administration and percentage employed in non-agricultural activities. • This notification leads to the creation of an urban local government or municipality, classifying the area as a “statutory town”. With such a vague definition, discretionary decisions yield a wide variance in what is considered a town.

The Central government considers a settlement as urban: • If it has a urban local government, a minimum population of 5,000; • over 75% of its (male) population working in non-agricultural activities; and • population density of at least 400 per sq. km

www.amritaias.com | [email protected] | +91 85890 60000 10

• it has a urban local government. • • However, many States consider such “census towns” as rural, and establish governance through a rural local government or panchayat. • • Consider the case of Dabgram, in West Bengal’s Jalpaig- uri district, which is classified only as a “census town”, while having a population more than 120,000 and located just 3 km from Siliguri. • Low Levels of Investments at Local level: Poor Capacity Build- ing: • Another issue is the low level of urban infrastructure investment and capacity building. India spends about $17 per capita annually on urban infrastructure projects, against a global benchmark of $100 and China’s $116. • Governments have come and gone, announcing a variety of schemes, the Jawaharlal Nehru National Urban Renewal Mis- sion included, but implementation has been mostly inadequate, with exploration of financing options limited as well. • For example, Jaipur and Bengaluru collect only 5-20% of their potential property tax — how can urban local bodies be sustainable without enforcing this? Meanwhile, urban institutions also suffer from a shortage of skilled people.

Issue of urban Migration - Need of Effective policies: • There needs to be a systemic policy to deal with urban migration. • Internal migration in India is very closely linked to urban transitions, with such migration helping reduce poverty or prevent households from slipping into it. • Urban migration is not viewed positively in India, with policies often bluntly seeking to reduce rural to urban migration. • Preventing rural to urban migration can be counterproductive — it would be better to have policies and programmes in place to facilitate the integration of migrants into the local urban

www.amritaias.com | [email protected] | +91 85890 60000 11

fabric, and building city plans with a regular migration forecast assumed. • It also emphasise the need for the development of rural areas to reduce the pressure on urban centres. • Lowering the cost of migration, along with eliminating discrimination against migrants, while protecting their rights will help raise development across the board. • For instance Delhi. While historically, urban policy sought to limit urban migration, this is now changing with a focus on re- vitalising cities nearby such as Meerut, building transport links and connectivity. • Towards a new model: New Urbanisation Policy has to address the ever growing demand for better urban governance systems. • Perhaps a different model of urbanisation that seeks to rebuild Indian cities around clusters of human capital, instead of considering them simply as an agglomeration of land use, is a welcome transition.

Areas to be focused on empower of cities: • Land use policy reforms are the need of the hour. • Granting urban further financial autonomy to urban local bodies could yield better results. • Enforce local land usage norms to use the scarce land resources at an optimal. • Socio economic aspects • Other physical components, recreational facilities, open spaces etc. • Institutional mechanisms to cater various urban requirements. If these three objectives are woven together and in each other, it is easy to diversify and address number of problems like mobility, development of physical infrastructure, ICT, health, and economy. The main aim of the smart city mission is to ensure better quality of life.

www.amritaias.com | [email protected] | +91 85890 60000 12

2 CHANGING DIMENSIONS OF GLOBALISATION[GS-I & GS-II]

Context • India slips its globalisation index from 62 to 78 of 140 countries. • Measured by international flows of trade, capital, information and people, the index ranked India poorly among a group of comparable countries that included its neighbours in central & south Asia and BRICS countries.

Globalisation • Globalization rests on the premise that the free flow of capital, goods, people and ideas across national boundaries will create maximum utility for people of participating countries. • Globalisation indicates increasing interactions of people through the growth of international flow of money, ideas and culture. • Globalisation is primarily an economic process of integration which has social and cultural aspects. • In social level, it means an increased level of inter connected- ness among people. • In cultural realm, it means the exchange of ideas and values among cultures and implies for developing a common global culture. • Political globalisation indicates shift of political activities from a solely national level to a global level through intergovern- mental organisations such as UN.

Impacts of Globalisation on Consumerism • • Globalisation has pumped in the consumerism in Indian

www.amritaias.com | [email protected] | +91 85890 60000 13

market. • More awareness of consumer rights. • More choices of goods and services for consumers. • Increased production and employment opportunity. • Ecology is affected due to over production. • Increased health issues and industrial pollution. • Misuse of land and other resources. • Marginalisation of poor.

Impacts of Globalisation on rural society • Negotiations with WTO affect the farm income. • Significant impact on the rural agriculture and economy. • Contract farming resulted into farm income as well as distress. • Entry of multinationals distorted the poorly develop agrarian market. • Agrarian crisis resulted into suicides of farmers in large num- bers. • Framers distress is compounded by change in culture in rural area like increased dowry etc

Impacts of Globalisation on Indian Family • Breaking of joint family to nuclear family. • Influence of individualism • Rise of nuclear family reduced the social security provided by joint families. • Arranged marriages were the tradition, but no longer the single option or norm. • Traditional authority structure collapsed. • Behavioural problems are cropping up among children. • Globalisation enabled easier communication between families.

www.amritaias.com | [email protected] | +91 85890 60000 14

• Remittance by the migrants contributed the development of families. • Working culture of the families shifted.

Impacts of Globalisation on Senior citizens • Health care has become more efficient. • Average life expectancy and health has increased. • Remittance helped the old age too. • High calorific food and medicine for the geriatric population. • People become more financially stable let them to afford better retirement life. • Young people leave their parents in faraway places. • Isolation, rejection and loneliness of aged parents. • Unable to cope up with the advanced technology • Modernisation made their knowledge obsolete. • Old age poor become too dependent for survival.

Impacts of Globalisation on Women • Changing role in work. • Challenging the institution of patriarchy in India • Women achieve social mobility. • Financial empowerment of women. • Marrying within the same caste become less important. • Prospects of higher and quality education. • Accustomed with technology and related jobs. • Gender equality comes in to public discourse. • Increased number of low paid and exploitative jobs. • Women trafficking become a global menace. • Older women’s life has become pitiable.

www.amritaias.com | [email protected] | +91 85890 60000 15

• Violence against women is on a rise.

Impacts of Globalisation on Children • More avenues for learning, job and amenities of life. • Ease of access to technology, in particular internet. • Globalisation affected the all aspects of children’s life, clothing, food, mobility etc... • International exposure for students. • Social networking addiction reduced quality social relationships. • Internet has made an impact on the life of children. • Unhealthy junk foods, violent games like Blue whale etc.... • Greater exposure towards violence and pornography.

Globalisation and change in Indian Industry. • Policy of liberalisation • Disinvestment • Privatisation • Cheap labour • Rising income inequality • Rise of service sector • Growing middle class • Land acquisition issues • Increased pollution

Globalisation and Media • Circulation of media increased. • New technologies adopted. • Indian language newspaper revolution

www.amritaias.com | [email protected] | +91 85890 60000 16

• Rise in number of literacy supports its growth. • Incorporation of advanced printing technologies. • Privately run satellite channels • TV fostered public debates. • FM stations • Demand for local news.

Why India is failing in globalisation? • There are the rising tide of anti-globalization sentiments, the anger over growing inequality of income and wealth both between and within countries. • Pervasive decline of public trust in governments, institutions, media and business. • Inequality is on a rise due to policies is conducive for capitalist than poor. • According to an Oxfam report released in January, just 1% of the world’s population owns more than half of its wealth. • Policy paralysis has caused multiple problems in the Indian democratic polity. • The bureaucratic redtapism and inertia has caused the breaking down of the welfare measures of the governments. • Sharp decline in public trust in institutions and processes of governance because it is trust that holds societies together and lies at the heart of political, social and economic interactions. • Confidence in the state’s ability and intent to uphold public interest and set high standards for other institutions has ebbed. • Balance between the special interests of the economic elite and the general interests of innovative entrepreneurs are at diverging ends. • Joint actions for climate change and economic development is absent from greater interconnectedness.

www.amritaias.com | [email protected] | +91 85890 60000 17

• Protectionism from larger developed countries distorting the larger global trade system which was envisioned by the globalisation. • Greater interconnectedness increases the threats of antina- tional forces like terrorism, separatism and other organised crime groups. • As each country maximise their gains, the poor countries become further poorer. • Global economic changes started to affect the lowest income earners of the country like farmers. • Countries find it difficult to cope with challenges such as international terrorism, ecological degradation and climate change, pervasive economic uncertainty and market volatility and structural and persistently high unemployment. • States failed in its responsibility to ensure equitable distribution of the gains of globalization.

Way forward • There is no doubt that overall both incomes and wealth have risen as a result of globalization and, more importantly, of technological innovation such as the digital revolution. • There is less poverty in the world today than at any time in human history, and technology carries the promise of delivering even greater economic gains in the future. • Government could act as a regulator and facilitator in a free market to protect the citizens from the excesses of the market. • The primary role of the government should be to provide welfare to the citizen through good governance. • The state should redistribute the gains of globalization with its poor sections of the society. • In India, the higher judiciary, constitutional bodies such as the Election Commission and the Comptroller and Auditor Gener- al enjoy a high degree of public trust, but they are exceptions. The exceptions must become the norm if India is to fulfil its incredible promise.

www.amritaias.com | [email protected] | +91 85890 60000 18

3 ISSUE OF TRIPLE TALAQ [GS-I & GS-II]

Context • The Union Cabinet has approved a few amendments in the instant triple talaq bill. The amended triple talaq bill will be tabled in Rajya Sabha for its approval. • In December, the Lok Sabha passed the Muslim Women (Protection Bill, 2017), which criminalises the practice of talaq-e-bidda. This came after the Su- preme Court on August 22, 2017, struck down triple talaq, calling the Islamic practice unconstitutional.

Changes in the triple Talaq Bill- The Cabinet made three amendments to the triple talaq law: • One: provision for bail: »» While the proposed law will remain “non-bailable” offence, the accused can approach a magistrate even before the trial to seek bail. »» Under a non-bailable offence, bail cannot be granted by police at the police station. »» A provision has been added to allow the magistrate to grant bail ‘after hearing the wife’. »» But the offence of instant triple talaq under the proposed law remains non-bailable. »» The magistrate would ensure that bail is granted only after the husband agrees to grant compensation to the wife as provided in the bill. The quantum of compensation will be decided by the magistrate, as per the bill. • Two- check misuse:

www.amritaias.com | [email protected] | +91 85890 60000 19

»» Another amendment makes it clear that the police would lodge FIR only if approached by the victim (wife), her blood relations or people who become her relatives by virtue of her marriage. »» This would settle fears that even a neighbour can file FIR as is the cases in any cognisable offence. This would check misuse. • Third- A compoundable offence: »» The third amendment makes the offence of instant triple talaq “compoundable”. »» Now, a magistrate can use his powers to settle the dispute between a husband and his wife. Under a compoundable offence, both parties have the liberty of withdrawing the case. »» However, the jail term for a Muslim man who resorts to triple talaq remains three years and only a magistrate, and not a local police officer, can release the accused on bail.

Provisions of Original Bill • If a Muslim man resorts to triple talaq then he will face a jail term of three years, as instant triple talaq will now be considered a non-bailable, cognisable offence. • Opting for triple talaq could also attract fine and the amount would be the magistrate’s call who would be hearing the case. • A Muslim wife can also approach a magistrate and ask for sub- sistence allowance for herself and her minor children. • A victim of triple talaq can seek the custody of her minor children from the magistrate who will take the final decision on the issue. Only Jammu and Kashmir will be out of the ambit of the proposed law.

Instant triple talaq • There are three forms of talaq (divorce) in Islam: Ahsan, Hasan and Talaq-e-Biddat (triple or instant talaq).

www.amritaias.com | [email protected] | +91 85890 60000 20

• Ahsan and Hasan are revocable but Biddat is irrevocable. • Biddat is considered sinful but is permissible in Islamic law. • It has been banned in more than 20 Muslim countries, including Pakistan and Bangladesh.

International Approach on Triple Talaq • 21 countries, including Pakistan and Bangladesh, have already abolished triple talaq either explicitly or implicitly. • Other Islamic countries like Turkey, Tunisia, Syria, Egypt, Mo- rocco, Iran, Iraq, Malaysia, and Indonesia have either reformed the law completely or involve legally stringent preventive measures in this area. • Unlike India, divorce in Pakistan can’t be done in one session.

Concerns of the groups • A wary AIMPLB and Muslim scholars see the demand for ban- ning triple talaq as a first step towards paving the way for a uniform civil code. • Islamic groups oppose uniform civil code because it will take away all the religious freedom that the Constitution has given us. • They wanted to follow the criminal laws as per the Constitu- tion and wanted to have the right to live their personal lives based on their religious teachings. • One of the reasons the Muslim clergy are adamant they will not allow any interference with their religion is that they believe issues are being cherry-picked. • The clergy believe that one community is being targeted. The rights of women in Islam are being ignored while criticism has focused inordinately on triple talaq and polygamy.

Why we need this • It is a part of the Constitutional obligation to guarantee gender justice for Muslim women.

www.amritaias.com | [email protected] | +91 85890 60000 21

• It is to the credit of Muslim female activists that more and more women are raising their voice against injustice, gender inequality, and subjugation. • It is time for reforms to protect their rights of Muslim women in view of changing societal values. • Certain male dominated institutions speaking on behalf of the entire Muslim population and the concerns of women have never been made centre stage. • Shah Bano and ShayaraBanocases make the reality more evident. • Analysis for 5 states where the share of Muslims in the population is higher than the Indian average of 14%, indicates that Muslim women’s divorce rate outstrips those of women from all religions by a wide margin, other than in J and K. • It is plausible that a unilateral right to divorce under Triple Ta- laq has definite gender disadvantages. • For divorce to have similar outcomes for men and women, both must have equal opportunities for quality education and institutions that support dignified and sustainable employment. This is simply not the case. • Evidence from studies shows where women’s employment rates are higher and financial dependence on husband is lower, suggest that there too, on divorce, women’s financial well being deteriorate substantially. • Unilateral divorce by husbands is a form of abandonment. • Criticism of the AIMPLB for being a male preserve that is out of touch with the ground reality of the lives of common Muslim women in the country.

Issues within the law • The Constitution allows religions to follow their own personal laws in matters of marriage, divorce, inheritance and adoption. • Unlike Hindu personal laws that underwent a series of reforms in the mid-1950s despite the stiff resistance from the Hindu

www.amritaias.com | [email protected] | +91 85890 60000 22

right, Muslim Personal Law has not seen such changes. • Constitution also provides special rights to the linguistic and religious minorities to protect and preserve their culture, which literally negate the principle of natural and gender justice at many places.

Conclusion Triple talaaq and uniform civil code (UCC) are two separate and equally important issues. And Triple talaaq should be abolished to uphold gender justice and gender equality provided by the Koran as well as the Constitution.The question of UCC calls for a much larger debate as it concerns all Indian citizens, irrespective of religion.There is no mention of triple talaaq in the Koran. Hence the religious claim also doesn’t stand still. In Islam the right to seek divorce is given to both husband and wife. However, divorce is considered totally undesirable and must be avoided as far as possible. India is a secular country where gender justice and right to religious freedom are both provided for. A secular alternative in the matter of personal laws—such as, marriage and family laws—is the entitlement of each citizen. To an extent, this secular alternative exists in the form of the Special Marriage Act, 1954. Every Indian citizen has a choice to marry under this law or their own personal laws. This law should be further strengthened, expand- ed and made popular.

#Practice Question Gender justice is the cornerstone of any democratic constitu- tions. Critically analyse the role of Muslim Women (Protection Bill, 2017 in ensuring the gender justice. (200 words)

www.amritaias.com | [email protected] | +91 85890 60000 23

4 INTERLINKING OF RIVERS [GS-I & III]

Context • 15th Meeting of Special Committee for Interlinking of Rivers was recently held.

Outcomes of the meeting: • During the meeting, it was stressed on the need for developing consensus amongst the concerned states on interlinking of rivers so that the water draining unutilized into the sea could be utilized for the needy areas. • States were called upon to discuss and sort out issues through active consultation so that the projects can be implemented on priority.

Developments so far: • Steps have been taken for early implementation of five interlinking projects and Memorandum of Agreement for implementation of these projects is being finalised in consultation with the concerned state governments. • These five projects include: I. Ken-Betwa link project, II. Damanganga-Pinjal link project, III. Par-Tapi-Narmada link project, IV. Godavari-Cauvery (Grand Anicut) link project and V. Parvati-Kali Sindhu-Chambal link.

National Water Development Agency (NWDA) • NWDA has studied and prepared reports on 14 inter-link proj-

www.amritaias.com | [email protected] | +91 85890 60000 24

ects for Himalayan component, 16 inter-link projects for peninsular component and 37 intrastate river linking projects. • The National Water Development Agency (NWDA), was setup in July 1982 as Autonomous Society under the societies registration act 1860. • To carry out the water balance and other studies on a scientif- ic and realistic basis for optimum utilization of water resources of the Peninsular river system for preparation of feasibility reports and thus to give concrete shape to Peninsular river development component of National Perspective Plan (NPP) prepared by Central Water Commission and Ministry of Water Resources, River Development and Ganga Rejuvenation. • To carry out detailed surveys and investigations of possible reservoir sites and interconnecting links in order to establish feasibility of the proposal of Peninsular Rivers Development Component and Himalayan Rivers Development Component. • To carry out detailed survey about the quantum of water in various Peninsular River Systems and Himalayan River Sys- tems. • To prepare feasibility report of the various components of the scheme relating to Peninsular Rivers Development and Hima- layan Rivers Development. • To prepare ‘Detailed Project Report’ (2006) of river link proposals under NPP for Water Resources Development after concurrence of the concerned States. • NWDA to act as a repository of borrowed funds or money received on deposit or loan given on interest or otherwise in such manner, as directed by the Ministry of Water Resources, River Development and Ganga Rejuvenation.

Need for interlinking of rivers: • The interlinking project aims to link India’s rivers by a network of reservoirs and canals that will allow for their water capacities to be shared and redistributed. • An engineered marvel that will reduce persistent floods in

www.amritaias.com | [email protected] | +91 85890 60000 25

some parts and water shortages in other parts besides facilitating the generation of hydroelectricity for an increasingly power hungry country.

Benefits and significance of interlinking: • Enhances water and food security of the country and it is essential for providing water to drought prone and water deficit areas. • Proper utilization: River interlinking projects envisage that the surplus water available in Himalayan Rivers is transferred to the areas where water supply is not adequate in the Peninsular India. • Interlinking of rivers will be a practical solution for monsoon dependency, because the water can be stored or water can be transferred from water surplus area to deficit. • Disaster mitigation: The Ganga Basin, Brahmaputra basin sees floods almost every year. In order to avoid this, the water from these areas has to be diverted to other areas where there is scarcity of water. This can be achieved by linking the rivers. • There is a two way advantage with this – floods will be con- trolled and scarcity of water will be reduced. • Create the potential to increase agricultural production by an additional 100 per cent over five years. • Avoid crop loses that occurred in 2002 to the extent of $550 million due to the extreme draught or flood condition. • Save billions every year in foreign exchange by avoiding large scale importing of oil and pulses. • Unify the country by involving almost every state as a share holder and implement agency. • Provide for enhancing the security of the country by an additional waterline for defence movements. • Facilitate the production of ecologically positive electricity from the hydroelectric power units.

www.amritaias.com | [email protected] | +91 85890 60000 26

• Provide employment opportunities for millions of people for the next 10 years. • Eradicate the flooding problems which recur in the northeast and the north India every year. • Solve the water crisis situation by providing alternative, perennial water resources, especially in peninsular region. • The large canals linking the rivers are also expected to facilitate inland navigation. • Increasing food production from about 200m tones a year to 500m thereby ensure food security. • Boost the annual average income of farmers, from the present levels which are too less to afford a decant livelihood.

Concerns associated: • Interlinking of rivers will cause huge amount of distortion in the existing environment. • High cost incurring initiatives proposed in the river interlinking. • In order to create canals and reservoirs, there will be mass deforestation. This will have impact on rains and in turn affect the whole cycle of life.eg Ken- Betwa link canal submerging 5500 hectare of forest of Panna tiger reserve. • Alteration to the natural environment causes huge loses to the biodiversity and destruction of the natural ecosystem. • Destruction of the animals passing corridors for the smooth passage of animals during lean monsoon period. • Usually rivers change their course and direction in about 100 years and if this happens after interlinking, then the project will not be feasible for a longer run. • Due to interlinking of rivers, there will be decrease in the amount of fresh water entering seas and this will cause a serious threat to the marine life system and will be a major ecological disaster. • Due to the creation of Canals and Reservoirs, huge amount of

www.amritaias.com | [email protected] | +91 85890 60000 27

area which is occupied by the people will be submerged leading to displacement of people and government will have to spend more to rehabilitate these people. • Deforestation due to the large scale construction in the central Indian forest lands. • The amount required for these projects is so huge that government will have to take loans from the foreign sources which would increase the burden on the government and country will fall in a debt trap. • Political relations with in the country may heat up as the water is a politically sensitive issue. • Diverting water from transnational rivers could evoke resistance from the neighbouring countries such as Pakistan, Ban- gladesh etc. • International water treaty like Indus water treaty may comes under strain due to reduction in out flow of water after the interlinking has done. • Further, the inter-link would create a path for aquatic ecosys- tems to migrate from one river to another, which in turn may affect the livelihoods of people who rely on fishery as their income. • Fresh water inflow to the seas affects the salinity and the ecological balance of the sea flora and fauna. • Lack of political consensus among regional and national parties on the interlinking of rivers.

Way ahead: • National Water Development Agency (NWDA) so far has received more than 40 proposals of intra-state links from 9 States viz. Maharashtra, Gujarat, Jharkhand, Odisha, Bihar, Ra- jasthan, Tamil Nadu, Karnataka and Chhattisgarh. • The successful completion of these projects will lead to reduction in disaster during floods, improved irrigation facilities, employment generation in rural agriculture, and increase in

www.amritaias.com | [email protected] | +91 85890 60000 28

exports and decrease in migration from villages.

Conclusion Given all concerns, not to mention the massive price tag, perhaps the government would do well to consider other interventions, both on the supply side and the demand side, such as conservation of water resources and more efficient irrigation and agricultural practices, etc., to deal with India’s looming water crisis. It is not doubtful that if the storage of water during the monsoon improved, the post monsoon months will be free of any water distress. But the water resources establishment sees big dams as the only storage option. Yet, the biggest, cheapest, most benign, possibly fastest and most decentralized storage option for India is the groundwater aquifer. Moreover, a careful examination of the interlinking that covers, environment, ecological, social, political and economic cost of the mammoth river linking programme.

#Practice question The interlinking of rivers in India is constrained with socio-political and international factors. Critically examine (250 words).

www.amritaias.com | [email protected] | +91 85890 60000 29

HOW INDIA SHOULD CLOSE THE 5 FINANCIAL GENDER GAP [GS-I, II & III]

Context • The World Bank’s latest Global Findex data proves that India has made rapid strides in improving access to formal financial services. • In 2014, just 53% of adults had a formal account. To- day, more than 80% do. At the same time, it has cut its gender gap in financial access from 20 percentage points to six.

India bettered its performance • The Government of India’s MUDRA scheme to support micro and small enterprises and direct benefit transfers under the Jan Dhan Yojana seeks to empower women. • Initiativeds like SHG for microfinance, Stand upIndia for entre- preneurial development of SC/ST women etc. are paved way for reduction of financial gender gap. • The government has made financial inclusion and expanding the formal sector a top priority. • The Pradhan Mantri Jan Dhan Yojana (PMJDY) programme— launched in 2015 with a mission to provide a basic account to every adult—has enrolled more women than men. • Before that, millions of women were deterred from going to banks because of the long distances involved. In general, women have a more restricted “economic geography” than men, making brick-and-mortar banks harder to access. • Under the PMJDY, banks went door-to-door enrolling customers, and held camps in villages. It also increased the number of banks’ business correspondents (BCs or bank mitras), bringing services closer to more households.

www.amritaias.com | [email protected] | +91 85890 60000 30

• The government has also mandated that certain defined benefit schemes, such as Pradhan Mantri Vaya Vandana Yoja- na (PMVVY), distribute payments to accounts in a woman’s name—with benefits being deposited directly in the recipients’ Aadhaar-linked accounts. • Aadhaar and the India Stack’s biometric eKYC verification capability make it easier for women, who possess the required documents less often than men, to establish their identity to a bank. • Bringing all these initiatives together, the government has made a major policy thrust toward digital payments since de- monetization. The widespread rollout of Aadhaar enabled customers to use digital BC payment points in addition to ATMs and service terminals. With this consistent focus, India has led a massive expansion of financial access.

Eliminating gender gap from its root causes • PMJDY has opened more than 100 million new bank accounts, but many of them are inactive or carry a zero balance. • A larger gender gap persists in account usage. And beyond account ownership, in terms of credit and insurance usage, the gender gap remains high. • Smart phones to the women can act as the most promising empowerment tool for financial inclusion. »» One reason for this technological divide is that smart phones are not marketed as an empowerment tool, but rather as an entertainment and social media platform. »» In India, as in other emerging markets, many women have internalized social fears that smart phones will expose them to “bad influences”, leading to sexual harassment or broken marriages. • Access to digital financial services for women face a three-step learning curve at once: »» Becoming familiar with using a smart phone;

www.amritaias.com | [email protected] | +91 85890 60000 31

»» Understanding how credit, insurance, and other financial products work; and, »» Often, using an interface that’s not even written in their native language. »» It’s long been a goal of inclusion efforts to improve women’s financial literacy, but the second lesson is that these efforts must also improve women’s digital literacy. • Financial products are often not structured, distributed, or bundled to meet the needs of women. »» Financial responsibilities differ between men and women, who are generally tasked with back-stopping and stretch- ing the family budget. »» Bundled solutions of savings, credit, and insurance could be designed to be more relevant to women’s financial lives. • Extending Emergency Credit: »» In markets with high card penetration, customers often have the option of linking their checking accounts to a credit card account for extra liquidity. »» In emerging markets, adding microcredit to accounts could help women cover unexpected expenses and emer- gencies in their day-to-day management of the household finances. »» Women also go through more life transitions than men, moving in and out of the workforce more frequently, so making it easier to reactivate dormant accounts could increase usage.

Concerns for economic empowerment of women • More than half of the work done by women in India is unpaid, and almost all of it is informal and unprotected. • Women comprise almost 40 percent of agricultural labour; they control only 9 percent of land in India.

www.amritaias.com | [email protected] | +91 85890 60000 32

• Women in India represent 29 percent of the labour force, down from 35 percent in 2004. • Women are also shut out of the formal financial system. • The economic impact of achieving gender equality in India is estimated to be US$700 billion of added GDP by 2025. • The IMF estimates that equal participation of women in the workforce will increase India’s GDP by 27 percent. • The gender pay gap has narrowed from 24.8% in 2016 to 20% at present. • Getting paid less for the same work done by male counter- parts. Despite same qualifications, Indian men get 30% more pay than women • Many of them are not being considered for top level manageri- al jobs irrespective of their qualification. • Social perception against women who work for long hours.

Potential areas to focus • The private sector and business community will be crucial in helping bridge the gap between skills and jobs and enable access to decent work for women. • Vocational and technical training, life skills and financial literacy programmes for women to help them develop marketable skills and better decision-making abilities cannot be undertaken in a meaningful way without the involvement of industry. • Companies can also invest in women entrepreneurs through microfinance, and bring their goods and services into supply chains. • Enhancing women’s access to the internet and ICT can create a merging market of connected women who can be linked to business opportunities. • In addition, as employers, the private sector can invest in women’s security against violence at home and in public spac-

www.amritaias.com | [email protected] | +91 85890 60000 33

es, and take steps to ensure their mobility through inclusive transport.

Conclusion: • Women spend 90 percent of their income on their families, and economically empowered women boost demand, have healthi- er and better-educated children, and raise human development levels. • Fintech has led the way on re-bundling, partnering with incumbent banks and mobile network operators to distribute and scale their offerings for women’s financial empowerment. • A final lesson is for incumbent providers and governments to leverage the fintech ecosystem to customize products for the needs of specific market segments, such as low income or rural women. • Partnerships of various institutions, government agencies and civil society organisations could make it more viable to provide financial independence to women. • Universal financial access is a road ahead for eliminating the gender gap in basic access and increasing usage among all customers, by making financial services more digital, flexible, and relevant to both men and women’s lives. • There is a need to realize that women will not be hired just because they are women, they will be hired because they are good at their work. • At international level UN Women highlighted the Women’s Empowerment Principles (WEPs). Among these was the Gaps Analysis Tool, an easy way to benchmark where an organisation stands in terms of gender equality and take corrective steps.

#Practice Question The economic empowerment of women has a ramification over the socio economic and political spectrum of women’s life. Criti- cally evaluate how financial gender gap is affecting the social and political empowerment of women in India. (250 words)

www.amritaias.com | [email protected] | +91 85890 60000 34

KERALA FLOODS: NEED FOR A RELOOK 6 ON FATE OF WESTERN GHATS [GS I & III]

Context • The floods in Kerala have brought the focus back on an almost forgotten 2011 report on the Western Ghats that had made a set of recommendations for preserving the ecology and biodiversity of the fragile region along the Arabian Sea coast. • Madhav Gadgil Report 2011on Western Ghats. • Madhav Gadgil, lead author of the report has publicly argued that had the report’s suggestions been implemented by the concerned state governments, the scale of the disaster in Kerala would not have been as huge as it is.

Need for preservation of Western Ghats • The Ghats play an irreplaceable role in mediating the monsoon over the country and the forests harbour a rich biodiversity that has not even been fully studied. Various study reports contradicts with another. • The mountain chain of Western Ghats is the source of all the major rivers of India’s southern peninsula; Godavari, Krishna, Tungbhadra, Kaveri etc. • Its ecological health depends on the livelihoods of millions of people, not only in the six Western Ghats states of Gujarat, Maharashtra, Goa, Karnataka, Tamil nadu and Kerala, but of Andhra Pradesh as well. • Besides, it is one of the world’s treasure troves of plant and animal life, with a great wealth of unique plant and animal species. • The mountains also harbour a number of wild relatives of cul-

www.amritaias.com | [email protected] | +91 85890 60000 35

tivated plants, including pepper, cardamom, mango, jackfruit and plantain. • Western Ghat is one of the world’s biodiversity hot spot with large number of endemic species.

Madhav Gadgil Committee • In February 2010, then Environment Minister in Tamil Nadu organised mainly by those associated with Save the Western Ghats group. Speakers pointed to threats to the ecosystem from construction, mining, industries, real estate, and hydropower. • Environment Ministry set up the Western Ghats Ecology Ex- pert Panel under Gadgil. • The panel was asked to make an assessment of the ecology and biodiversity of the Western Ghats and suggest measures to conserve protect and rejuvenate the entire range that stretches to over 1500 km along the coast, with its footprints in Gujarat, Maharashtra, Goa, Karnataka, Kerala, and Tamil Nadu.

Gadgil Committee general recommendations • It defined the boundaries of the Western Ghats for the purposes of ecological management. • It proposed that this entire area be designated as ecologically sensitive area (ESA). • Within this area, smaller regions were to be identified as ecologically sensitive zones (ESZ) I, II or III based on their existing condition and nature of threat. • It proposed to divide the area into about 2,200 grids, of which 75 per cent would fall under ESZ I or II or under already existing protected areas such as wildlife sanctuaries or natural parks. • The committee proposed a Western Ghats Ecology Authority to regulate these activities in the area.

www.amritaias.com | [email protected] | +91 85890 60000 36

Major recommendations of Gadgil Committee: • Ban on the cultivation of genetically modified in the entire area • Plastic bags to be phased out in three years • No new special economic zones or hill stations to be allowed • Ban on conversion of public lands to private lands, and on diversion of forest land for non-forest purposes in ESZ I and II • No new mining licences in ESZ I and II area • No new dams, thermal power plants or large-scale wind power projects in ESZ I • No new polluting industries in ESZ I and ESZ II areas • No new railway lines or major roads in ESZ I and II areas • Strict regulation of tourism • Cumulative impact assessment for all new projects like dams, mines, tourism, housing • Phase-out of all chemical pesticides within five to eight years in ESZ I and ESZ II

Need for Kasturirangan Committee • None of the six concerned states agreed with the recommendations of the Gadgil Committee, which submitted its report in August 2011. • In August 2012, the then Environment Minister constituted a High-Level Working Group on Western Ghats under Kastur- irangan to “examine” the Gadgil Committee report in a “holistic and multidisciplinary fashion in the light of responses received” from states, central ministries and others. • Its report revealed that of the nearly 1,750 responses it had examined 81% were not in favour of the Gadgil recommendations. • States like Kerala had objected to the proposed ban on sand mining and quarrying, restrictions on transport infrastructure and wind energy projects, embargos on hydroelectric projects,

www.amritaias.com | [email protected] | +91 85890 60000 37

and inter-basin transfer of river waters, and also the complete ban on new polluting industries.

Recommendations of Kasturirangan Committee • A ban on mining, quarrying and sand mining • No new thermal power projects, but hydro power projects allowed with restrictions • A ban on new polluting industries • Building and construction projects up to 20,000 sq m was to be allowed but townships were to be banned • Forest diversion could be allowed with extra safeguards

Way Forward: • The government has to find speedy resolution is how much of the Western Ghats can be demarcated as ecologically sensitive, going beyond the system of national parks and sanctuaries that already exist. • The other areas free to be exploited for industrial activity, including mining and deforestation must be ensured with no environmental damages. • The assessment of ecosystem services delivered by the forests, lakes, rivers and their biodiversity to communities must be made with proper clarity. • Similarly government should bring opposing states on board and must bring a strong environment protection law. • Kerala flood is a lesson worth of learning for India’s disaster management system. And prepare a strong disaster early warning and management system. • Cooperation between the states can create an expert and integrated national structure, to manage any kind of natural disaster. • Kerala, Uttarakhand and Chennai disasters aggravated due to uncontrolled construction, large hydropower plants, filling of

www.amritaias.com | [email protected] | +91 85890 60000 38

back waters, destruction of wet lands and deforestation were assessed to have aided the scale of destruction • There is now a need to learn lessons from past tragedies and increase the resilience of disaster-struck areas through sustainable and long-term development that would involve minimal intervention in natural processes. There was an urgent need for corrective action. • The Madhav Gadgil Report and The Sendai Framework for disaster risk reduction (2015-2030) must be consider while planning and implementing and completely involving adopting integrated and inclusive institutional measures. • To work towards preventing vulnerability to disaster, increase preparedness for response and recovery and strengthen resilience by inclusion of private sector and local population to prevent such mishaps in the future.

Conclusion The ecosystem of Westerns Ghats is very sensitive and there is an urgent need to protect that from ongoing exploitation. In this background there is need of strong law to protect our sensitive ecosystem. Hence central government should bring states on board which is a must to bring strong law to protect Western Ghats.

#Practice question Discuss the ecological needs of protecting Western Ghats and highlight major recommendations made by Western Ghats Eco- logical Expert Panel. (200 words)

www.amritaias.com | [email protected] | +91 85890 60000 39

7 IRAN-INDIA RELATIONS [GS-II]

Context • The US has told India and other countries to cut oil imports from Iran to “zero” by November 4 or face sanctions. • Iran will end the privileges being provided to India if it tries to source oil from countries like Saudi Arabia, Russia, Iraq, the US and others to offset cuts in Irani- an oil. • As for the US sanctions on oil import from Iran: Iran has been a reliable energy partner for India and follows a “rationale pricing” of oil which ensures the interest of both consumers and suppliers. • A decision to withdraw from the Iran nuclear deal will test India’s foreign policy as well as U.S.-India relations.

History of India Iran Relations • India and Iran established diplomatic relations in 1950. • Iran was one of the first countries with which India signed a Friendship Treaty in March 1950. • During Shah’s regime, India’s orientation was more towards the Soviet Union and the NAM. • It was only after Pakistan’s defeat in the 1971 war, which changed the balance of power in South Asia decisively in In- dia’s favour. • Prime Minister Indira Gandhi and the Shah of Iran exchanged visits in 1974. • India’s own turbulent domestic politics of the second half of

www.amritaias.com | [email protected] | +91 85890 60000 40

the 1970s, followed by the Iranian Revolution of 1979 and the almost decade-long war that Iran fought with Iraq, then a close friend of India, once again derailed this relationship. • From the early 1990s, starting with Prime Minister Narasimha Rao’s visit to Iran in 1993, relations have maintained a steady upward graph. • Voted against Iran in the International Atomic Energy Agency in 2005.

Need to have relationships Iran • Strategic: »» Besides being a key source of crude oil for India, Iran is critical to India’s regional policy as it seeks to balance against China’s growing influence in South Asia. »» Pakistan and China have been strategic partners for decades and the ongoing China-Pakistan Economic Corridor has further cemented this strategic relationship. • Geopolitical »» Through the Belt and Road Initiative (BRI), China has also successfully enhanced its role in both South and Central Asia. »» Notwithstanding Iran’s growing bonhomie with Pakistan and China, India must stay in close contact with Iran and consciously and consistently pursue good diplomatic and economic relations with it. »» If the United States withdraws from the nuclear deal, both Saudi Arabia and Israel are expected to intensify further their efforts to combat Iranian influence in the region. • Economic: »» India’s interest in diversifying its market in central Asia. »» INSTC connectivity to Eurasian Economic Union • Chabahar Port

www.amritaias.com | [email protected] | +91 85890 60000 41

»» New Delhi is left with Chabahar as the only access route into Afghanistan and Central Asia. »» It has already committed over $500 million to the development of the port, which was operationalised last year when India sent a shipment of wheat to Afghanistan via Chabahar. »» New Delhi may have to limit its investments in Chabahar or risk facing blowback from Washington, Tel Aviv, and Riyadh. »» Iranian oil supplies decreasing in the international oil market, it would impact on prices worldwide, and will add to India’s ballooning oil import bill. • Cultural: »» India has the 2nd largest population of Shias in the world after Iran some of whom probably also have ancestral ties to Iran. These ties back to a complex political situation in India. Religion and national allegiances play a large part in Indian politics and this is magnified with the upcoming elections. • Commercial: »» Iran believes that India fulfils a substantial part of Iran’s needs. For example, India is very capable in steel, in alu- minium, in mines and metals, railroads, software, IT, technology and so on. There is a lot of demand in these sectors in Iran. • Terrorism: »» Globally, New Delhi and Tehran are on the same page in their opposition towards groups like al-Qaeda and the Is- lamic State. »» Increasing hold of ISIS is a threat to Iran and with India effective efforts against terrorism India can be a attractive partner

www.amritaias.com | [email protected] | +91 85890 60000 42

• Other projects: »» India has been vigorously pursuing the Iran–Pakistan–India (IPI) gas pipeline project for the last decade. »» The Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline yet to take off and India is very keen to kick-start an undersea pipeline project that would bring Iranian gas to India via the Arabian Sea bypassing Pakistan. »» Iran may also provide connectivity to Central Asia and Eu- rope, via the International North South Transport Corridor (INSTC), which is estimated to be 40 percent shorter and 30 percent less expensive than trade via the Red Sea-Su- ez Canal-Mediterranean route.

Context of the Issue: • As pressure mounts on India to take a re-look at its energy ties with Iran, the debate has taken a predictable turn, one which assesses India-Iran relations through the prism of the US. • India has been steadfast in its opposition to the collapse of the JCPOA and is working with Europe and China to salvage the deal. • At the same time, India continues to look at the possibility of being exempted from the US sanctions. The US has indicated that waivers could be given if there was significant reduction in oil imports from Iran.

India’s stakes in Iran are quite limited: • Iran is India’s third-largest oil supplier after Iraq and Saudi Ara- bia. Iran has offered refiners incentives including almost-free shipping and an enhanced credit period on oil sales. • But if push comes to shove, it can be replaced by other sources as the volume is manageable. • The larger economic relationship is nothing much to write about, especially when compared to burgeoning trade ties with the Arab Gulf states.

www.amritaias.com | [email protected] | +91 85890 60000 43

• New Delhi’s growing closeness with the United States, Israel, and Saudi Arabia has also led Iran to hedge against a change of heart in New Delhi by inviting Pakistan to participate in Cha- bahar’s development and expressed a desire to connect Gwa- dar and Chabhar.

Iran’s privileges to India and its extent: • The suggestions by Iranian officials that India could lose “privileges” and revert back to dollar-denominated trade could have been avoided. • Though it was later clarified that Iran will do its best to ensure security of oil supply to India through offering various flexibility measures, which facilitates our bilateral trade in particular Indian export to Iran. • India should not bother much about Iranian oil if Tehran continues to threaten New Delhi about certain nominal “privileges”. • India being Iran’s second largest market. • India still has differences with Iran on granting development rights to an Indian consortium for developing the Farzad B gas field. • Given India’s huge and growing market for oil, it certainly has other alternatives to source its oil imports, and has in fact be- gun looking at alternate supplies, including from other Gulf producers, Canada and the US.

Importance of Chabahar Port for India: • Gwadar port in the Baluchistan province of Pakistan is barely a 100 kms away from Chabahar and is being developed by Chi- na. • Chabahar will face stiff competition from Gwadar. India and Iran will have to make certain that to-and-fro business handled by Chabahar is significant. • It is located in a peaceful region as opposed to Gwadar which is situated in a violent and terrorism prone province.

www.amritaias.com | [email protected] | +91 85890 60000 44

• The possibilities for establishing manufacturing and downstream petrochemical industries in Chabahar are much greater as ready, easy, cheap natural gas is available in plentiful in Iran. • Chabahar is a natural harbour and can serve as the sourcing point for the International North-South Transport Corridor. • For Afghanistan, the Chabahar port could prove to be, as PM called it as a “Golden Gateway.” • Chabahar provides a strategic option to India to connect with Afghanistan and Central Asia and beyond by sidestepping Pa- kistan.

However, Chabahar Port makes India bother: • New Delhi certainly remains keen on the Chabahar Port and has spent significant diplomatic and political capital on the project. • The port is expected to be operational by the end of 2018, with New Delhi committed to developing a free trade area around the port, and finally completing the loop with a $1.6 billion railway line to Zahedan. • As underlined by former foreign secretary S. Jaishankar, it was Iran which was responsible for causing delays in the execution of the Chabahar project.

Chabaharconflict of interest: • Iran has not only suggested that China would be part of the Chabahar project, but has also dangled the possibility of Paki- stan joining the project at some future date. • In theory, Sino-Indian cooperation or a wider regional cooperative framework would be an excellent idea. • But to talk of India’s two main adversaries, while asking India to continue to invest in the project certainly won’t make it very enticing to New Delhi. • China, which has successfully enhanced its influence in the region and could offer economic assistance under the BRI and

www.amritaias.com | [email protected] | +91 85890 60000 45

undercut India’s proposed investments in Chabahar. • A U.S. withdrawal from the nuclear deal could open the door for Pakistan to explore an accommodation with Iran that limits India’s reach into Afghanistan and Central Asia. • Iran’s strategic ally Russia, which has also drawn closer to both Beijing and Islamabad as it seeks to balance against closer U.S.-India relations and tries to find a way to limit U.S. influence in Afghanistan and Central Asia.

Regional Stability and Security • Ensuring security and stability in Afghanistan, which is vital to peace in the region, poses a challenge to both India and Iran. • Both countries desire peace in Afghanistan but their approaches are markedly different. • On Afghanistan and regional security, there are growing di- vergences between India and Iran. Much like the Taliban, Iran wants to see foreign forces leave. • Tehran has been providing military support to the Taliban in Afghanistan for some time now, but this engagement has reached new heights more recently. • Recent reports suggest that hundreds of Taliban fighters are being trained by Special Forces at Iran’s military academies as part of a significant escalation of support for the insurgents. • Iran has also reportedly sent Afghans to fight for its ally, As- sad, in Syria. US withdrawal from the Iran nuclear deal further incentivises Iran to enhance its support to the Taliban. • Emboldened by their experience in Syria, Iran and Russia are also working closely in Afghanistan to challenge the US and, this primarily means, supporting the Taliban with greater vigour.

Challenges in relations • India to maintain neutrality in the Iran-Saudi tussle. • US-Iran Tussle and the India’s balancing act.

www.amritaias.com | [email protected] | +91 85890 60000 46

• Energy security vs US relations • Us relations vs Iran, Pakistan, China & Russia relation. • India’s geopolitical interest, INSTC, EEU etc.

Probable outcomes • The immediate factor for New Delhi will be to look at various options to deal with the situation without jeopardising its energy security. • India can re-introduce the rupee-rial payment mechanism used earlier from 2011 when all payment avenues became blocked after the EU imposed a near complete trade embargo on Iran. • India’s ability to counter growing Chinese influence in the region and have strategic access to Afghanistan and Central Asia rests on its ability to maintain close ties with Iran. • The Indian strategic community should resist the temptation of making this debate about India resisting or buckling under American pressure. • As a self-confident rising power, this debate should essentially be about Indian strategic priorities. • Bilateral cooperation in security, defence and fight against terrorism emerged as significant areas of discussion will be the way forward. A Bilateral Extradition Treaty was signed and it was also decided to have enhanced cooperation in the maritime domain. • The two countries “agreed to hold dialogue to look into measures for cooperation in defence sphere, including port calls by naval ships, training and regular exchanges of defence delega- tions.” • If India has to move beyond symbolism in its ties with Iran, Iran has to do the same. Challenging Indian vital interests even as it asks for New Delhi’s help is surely not the best way forward. • Stepping back from engagement with Iran, however, leaves the door open for India’s rivals to woo Tehran into their camp.

www.amritaias.com | [email protected] | +91 85890 60000 47

• The near-term repercussions of the U.S. decision to withdraw from the Iran nuclear deal will most certainly test India’s foreign policy as well as the U.S.-India relationship. • In the long term, it may allow India’s regional rivals to bring Iran into their camp and further their geopolitical ambitions in South and Central Asia.

www.amritaias.com | [email protected] | +91 85890 60000 48

RECENT DEVELOPMENT IN USA-INDIA 8 RELATIONS [GS-II]

Context • The US has given India Strategic Trade Authorisa- tion-1 status.

Period of Ideological Divide (1947-1991) • Since independence Cold War issues had conditioned Indo-US relations. • India’s positioning with non-alignment did not find favour in the US which they condemned as “immoral”. • India’s recognition of Communist China in 1949, military alli- ances like Baghdad Pact (1955-1958), SEATO (1954) and CEN- TO (1958-1979). • Pakistan’s inclusion in the alliance system in 1954-55 and subsequent US arms supply to Pakistan to defend against Com- munism became major irritants in the Indo-US relations. • US support during the 1962 border war with China. • Differences that emerged during the Korean War. • India’s failure to sign the Japanese Peace Treaty. • The attempt to prevent India’s use of force in Goa in 1961. • The Indo-Russian Treaty of Friendship of 1971 further embit- tered the Indo-US relations. • During 1971 Bangladesh liberation war, relations reached a lowest point. The US supported Pakistan and tried to negotiate a cease-fire through the UNSC. • Resentment over the accrual of rupee currencies by the US. • US reaction to India’s Peaceful Nuclear Explosion (PNE) of

www.amritaias.com | [email protected] | +91 85890 60000 49

1974 and imposition of technology sanctions. • Despite such differences, cooperation continued inspheres of economic, culture and education. • US also provided technical assistance and also supplied food grains(PL480). • Again in 1989, India refused to rally behind the US and ascribes Soviet Union as an aggressor in Afghanistan. • Ronald Reagan era witnessed the bitterness heighten due to difference over Diego Garcia as India wanted dismantling of the US base and establishment of Indian Ocean as a ‘Zone of Peace’. • The US refused to supply nuclear fuel to Tarapur Atomic Pow- er Station. • India’s refusal to sign NPT and US intent on enforcement of Missile Technology Regime against India further added to bitterness. • Rajiv Gandhi’s state visit to USA had helped to de-hyphenate the relationship between both countries.

End of the Ideological Divide (1990- till today) • The fall of the Berlin Wall and the end of the Cold War freed both India and the US from the limiting confines of their past preferences. • Indo-Us naval exercises conducted in 1992 and further intensify the relationships between both countries. • Further, relations saw some setbacks during the sale of F-16 aircrafts to Pakistan and Nuclear explosions at Pokhran without acceding to CTBT. • Terrorist attacks on both countries have pushed the relationship into next level. • However, differences over reforms of US, supply of F-16s to Pakistan, Trade negotiations, Cryogenic engine sales, nuclear sanctions, imposition of tariff restriction of India’s textile ex-

www.amritaias.com | [email protected] | +91 85890 60000 50

ports and other issues persisted. • During 1999, India and USA entered into Bilateral Extradition Treaty. • With the revoking of nuclear sanctions in 2001, a major mile- stone was achieved when sectors of cooperation like high technology, space research, civilian nuclear technology, economic, defence were identified. • U.S.–India Civil Nuclear Agreement »» United States will facilitate India’s access to global nuclear commerce, in return for India’s commitment to play a major role in global non-proliferation efforts. »» It also aims to harmonize its civilian nuclear programme with the norms of the nuclear non-proliferation regime. »» The promise of participation in global nuclear trade In- dia-specific waiver from the guidelines of the Nuclear Suppliers Group (NSG) which ensures Uninterrupted flow of uranium for its reactors, accesses to advanced reactor technologies to expand its nuclear energy programme and ensuring a seat at the high-tables of the non-proliferation regime without compromising commitments. • USA extended its support in India’s efforts to enter into UNSC, NSG, MTCR, the Australian Group (AG) and the Wassenaar Ar- rangement (WA). • Moreover, the trade relations grow in a slower pace as compared with China-USA trade. • India expects us industries to participate in our new programmes like Digital India, Make in India, Space explorations, S&T and defence co-production. • India and United States have renewed this Defence Framework Agreement for the next 10 years with the emphasis on • • Defence Technology and Trade Initiative (DTTI) aims to facilitate dialogue on cooperative research & development and defence trade to the highest levels of government.

www.amritaias.com | [email protected] | +91 85890 60000 51

• Under DTTI projects for possible co-development and/or co-production, as well as cooperation on aircraft carriers and jet engine technology envisioned. • Cooperation in maritime security in defending the strategic interests in Indian Ocean and indo- pacific region (Malabar Exer- cise). • Counter terrorism initiatives like FATF etc • Maintain a conventional deterrence against China against its execs. • Post-9/11 and the Campaign against Terrorism.

Concerns yet to address • India and U.S. are negotiating a Bilateral Investment Treaty (BIT). • IPR issues cast shadow on the uninterrupted trade between countries. • Increasing WTO disputes has delayed to capitalize its fullest potential in multiple sectors of economy to capitalize its fullest potential till now. • US-Iran relations created cascading effects on our relationship with, Russia, US, Iran, Saudi Arabia, Israel and many more. • Recent issues of H1B visa has also acted against the interest of IT and ITES sector of our economy. • Bilateral service trade discussions are not yet finalised to consider for implementation. • India should further balance its relations with China and USA.

CAATSA and India-US Relations • It is the Countering America’s Adversaries through Sanctions Act (CAATSA). • If implemented in its stringent form, it is likely to affect procurement from Russia, particularly the S-400 air defence system, Project 1135.6 frigates and Ka226T helicopters.

www.amritaias.com | [email protected] | +91 85890 60000 52

• CAATSA is likely to affect all the joint ventures (JVs) – existing or planned — between Indian and Russian defence companies. • The Act will also affect India’s purchase of spare parts, components, raw materials and other assistance. • CAATSA has the potential to heighten India’s traditional insecurity about the United States as a reliable partner. • The US has much to lose if it imposes CAATSA on India. Be- sides, it will be a huge set back to the emerging defence and security cooperation that has led to India signing LEMOA and COMCOSA.

Strategic Trade Authorisation (STA) • STA allows for license exception with regards to exports from the US, particularly defence equipments. • This type of US government authorisation allows a certain item to be exported under defined conditions without a transaction-specific license. • Items eligible for export to STA-1 nations include those under control for national security, chemical or biological weapons, nuclear non-proliferation, regional stability, crime control. • The categories also include electronics, lasers and sensors, information security, computers and electronics, navigation, tele- communications, aerospace, etc.

Significance of STA - 1 • The move means that India can get easy access to latest defence technologies, with the reduction of the number of licens- es needed for exports from the US. • It is also a boost for the foundational Communications, Com- patibility and Security Agreement (COMCASA). • STA-1 provides India with greater supply chain efficiency, both for defence, and for other high-tech products. • The status eases export controls for high technology product sales to India, granting it the same access as NATO allies —

www.amritaias.com | [email protected] | +91 85890 60000 53

Australia, Japan and South Korea. • India and the United States share an interest in countering Chi- na’s expanding economic and military weight. • United States has emerged as a top arms supplier to India, selling more than $15 billion of weapons over the past decade as New Delhi modernizes its Soviet-era military. • Looking at current exports from the US to India, 50% of those are eligible now under STA-1. This can free up $2.1 billion in trade, make US exporters more competitive in the global mar- ketplace, and helps in providing India with more advanced US technology.

COMCASA (Communications Compatibility and Security Agreement) • COMCASA is meant to provide a legal framework for the transfer of communication security equipment from the U.S. to India. • It would facilitate “interoperability” between their forces and potentially with other militaries that use U.S. origin systems for secured data links. • Why COMCASA »» India’s armed forces are currently dependent on less secure, commercially available communication systems for surveillance. »» It also rectifies hindrance in real time data sharing with friendly militaries, and seamless interoperability during joint missions. »» Facilitate the Indian military to use of high-end secured communication equipment from the U.S. • The violation of Indian sovereignty due to visits by US inspec- tors to Indian bases to inspect the COMCASA. • India may find it difficult to use COMCOSA optimally because of Russian-origin and indigenous Indian military platforms which may not be compatible with it.

www.amritaias.com | [email protected] | +91 85890 60000 54

• India signed LEMOVA with USA in 2016. • LEMOA stands for Logistics Exchange Memorandum of Agree- ment (LEMOA) a Logistics Support Agreement (LSA), which the U.S. has with several countries it has close military to military cooperation.

Foundational agreements The three agreements — »» Logistics Support Agreement (LSA) »» Communications Interoperability and Security Memoran- dum of Agreement (CISMOA) »» Basic Exchange and Cooperation Agreement for Geo-spatial Cooperation (BECA) are referred to as the foundational agreements which the U.S. signs with countries with which it has close military ties.

#Practice questions: The texture and content of the present Indo-US relationship are indicative of a constructive and pragmatic bilateral engagement. Critically Analyse. (250 words)

www.amritaias.com | [email protected] | +91 85890 60000 55

CONSTITUTIONAL STATUS TO NATIONAL 9 COMMISSION FOR BACKWARD CLASSES [GS-II]

Context • The Lok Sabha has passed the 123rd Constitutional Amendment Bill providing for a National Commission for Backward Classes as a constitutional body.

Constitutional provisions for reservation • Article 16(4) of the Constitution enables provision of reservation to Backward Class of citizens, who are not adequately represented in the State. • Reservation is provided to Scheduled Castes (SCs), Scheduled Tribes (STs) and Other Backward Classes (OBCs) through executive instructions issued from time to time, which has force of law, as held by the Supreme Court in Indira Sawhney case.

Reservation system in India • The reservation is undertaken to address the historic oppres- sion, inequality and discrimination faced by those communities and to give these communities a place. • It is there to ensure the equality mentioned in the constitution. • Our affirmative action programme was launched in 1950 to rectify the historical inequalities. • Till 1980 Mandal Commission, the reservation benefits were limited to SC/ST section of the population. • Mandal Commission had recommended that a reserved quo- ta for OBCs of 27 per cent should apply in respect of services and public sector bodies operated by the Union Government. • Commission also called for a similar change to admissions to institutes of higher education, except where states already had

www.amritaias.com | [email protected] | +91 85890 60000 56

more generous requirements. • As per extant instructions, reservation is provided to Sched- uled Castes, Scheduled Tribes and Other Backward Classes at the rate of 15%, 7.5% and 27%, (all this equated to 49.5%) respectively, in case of direct recruitment on all-India basis by open competition.

History about OBC reservations • Government had set upthe First Backward Class Commission under the chairman of social reformer Kaka Kalelkar commission in 1953. But the report was never implemented. • Morarji Desai government in 1978, B. P Mandal, to head the Second Backward Class Commission, as per the mandate of the Constitution of India under article 340 for the purpose of Articles like 15 and 16. • It was V P Singh government accepted the Mandal Commis- sion report and recommended 27% reservation for OBC candidates at all levels of its services. • The commission estimated that 54% of the total population (excluding SCs and STs), belonging to 3,743 different castes and communities were ‘backward’. • In order to avoid anti-reservation sentiments present in that period, Narasimha Rao government introduces economic criteria in deciding OBC categories. • In IndraSawhney vs Union Of India case SupremeCourt (1992) ruled that »» Backward class of citizen in Article 16(4) can be identified on the basis of the caste system & not only on economic basis. »» Reservation shall not exceed 50%. »» “Creamy layer” must be excluded from the backward classes. »» Reservation can be made by the ‘EXECUTIVE ORDER’.

www.amritaias.com | [email protected] | +91 85890 60000 57

»» No reservation in promotion. »» Permanent Statutory body to examine complains of over – inclusion / under – inclusion. So the Govt. had set-up a statutory body called National Commission for Backward Classes as a permanent body. »» Disputes regarding new criteria can be raised only in the Supreme Court.

Problems of reservation in India • Many benefits of reservation have been taken by lesser, better educated elites who are well off known as the creamy layer. • Communities excluded from reservation feel animosity for those who have access to it. • Caste polarisation is further deepened by political mobilisation. • Current forms of reservation approach have led to the deepen- ing of caste divisions. • Poor disadvantaged SC and ST as well as and OBCs remain on the fringes and mired in poverty and backwardness. • Institutions with high demand of skills should look for personal with higher skills rather than having recruitment based on caste reservation.

Provisions of the 123 Bill: • The bill provides for the grant of constitutional status to the National Commission for Backward Classes (NCBC) on par with the National Commission for Scheduled Castes and the National Commission for Scheduled Tribes. • Powers of the President: It states that the President may specify the socially and educationally backward classes in the various states and union territories. He may do this in consultation with the Governor of the concerned state. • The duties of the NCBC include investigating and monitoring how safeguards provided to the backward classes under the Constitution and other laws are being implemented and probe

www.amritaias.com | [email protected] | +91 85890 60000 58

specific complaints regarding violation of rights. • Report: The NCBC will be required to present annual reports to the President on working of the safeguards for backward classes. These reports will be tabled in Parliament, and in the state legislative assemblies of the concerned states. • Powers of a civil court: Under the Constitution Amendment Bill, the NCBC will have the powers of a civil court while investigating or inquiring into any complaints. These powers include: (i) summoning people and examining them on oath, (ii) requiring production of any document or public record, and (iii) receiving evidence. • The NCBC would have the same powers as the SC and ST commissions.

Present status of NCBC: • The Supreme Court, in its final verdict in the Indira Sawhney (Mandal Commission) case, had directed the establishment of the NCBC as a statutory body. • Based on this, a law was passed in 1993 to set up the commission. • The NCBC has been examining cases for inclusion in the BC lists for the Central government since then.

Concerns: • A widely welcomed move to grant constitutional status to the National Commission for Backward Classes (NCBC) has also brought with it a whiff of controversy over whether it amounts to encroaching on the domain of the States. • Several Opposition parties, which in general welcome the grant of constitutional status to the BC Commission, have said the Bill, if enacted, would undermine federalism, as it amounts to usurping the power of State governments to prepare their own BC lists. • The Centre has sought to allay these fears, saying the powers of the States would remain unaffected. In any case, the list for

www.amritaias.com | [email protected] | +91 85890 60000 59

every State will be prepared only in consultation with the State government.

Conclusion: • The reservation policies of the government have to be ra- tionalised. The caste based reservation should be relooked on the premises of economic criteria. Benefits of reservation should be enjoyed by the lowest rank of the disadvantaged sections of the society. The proper implementation of the creamy layer also could yield desired benefits of the present day affirmative action for OBCs.Aspirations and economic dis- tresses of people from poor families of dominant class also need to be addressed.

#Practice Questions Does the Constitutional status to National Commission for Back- ward Classes ensure effective mechanism for empowerment and inclusion of the backward castes in the society? Discuss

www.amritaias.com | [email protected] | +91 85890 60000 60

THE SCHEDULED CASTES AND THE 10 SCHEDULED TRIBES (PREVENTION OF ATROCITIES) ACT, 1989 AMENDMENT [GS-II]

Context • The cabinet has given its nod to introduce a Bill to restore the original provisions of the Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989, which the Supreme Court had struck down in a March ruling. • The Amendment Bill seeks to insert three new claus- es after Section 18 of the original Act: »» The first stipulates that for the purposes of the Act, “preliminary enquiry shall not be required for registration of a First Information Report against any person.” »» The second stipulates that the arrest of a person accused of having committed an offence under the Act would not require any approval. »» The third says that the provisions of Section 438 of the Code of Criminal Procedure — which deals with anticipatory bail — shall not apply to a case under this Act, “notwithstanding any judgment or order of any Court.

Need for the PresentAmendment • Supreme Court issued a slew of guidelines to protect people against arbitrary arrests under the Act, directing that public servants could be arrested only with the written permission of their appointing authority. • In the case of private employees; the Senior Superintendent of

www.amritaias.com | [email protected] | +91 85890 60000 61

Police concerned should allow it. • A preliminary inquiry should be conducted before the FIR was registered to check if the case fell within the ambit of the Act, and whether it was frivolous or motivated, the court ruled. • The ruling met with large public protest from Dalit groups, which they feared that the order diluted the law. • However, the court refused to stay its ruling, leading to the demand from Dalit groups that the government introduce an ordinance or an Amendment Bill to restore the provisions.

SC/ST(prevention of Atrocities) Act: • The Scheduled Castes and Tribes (Prevention of Atrocities) Act is popularly known as POA, the SC/ST Act, the Prevention of Atrocities Act, or simply the Atrocities Act. The SC/ST Act was enacted on September 9, 1989. The rules for the Act were notified on March 31, 1995. • The SC/ST Act lists 22 offences relating to various patterns or behaviours inflicting criminal offences and breaking the self-respect and esteem of the scheduled castes and tribes community. This includes denial of economic, democratic and social rights, discrimination, exploitation and abuse of the legal process. • According to the SC/ST Act, the protection is provided from social disabilities such as denial of access to certain places and to use customary passage, personal atrocities like forceful drinking or eating of inedible food sexual exploitation, injury etc, and atrocities affecting properties, malicious prosecution, political disabilities and economic exploitation. • For speedy trial, Section 14 of the SC/ST Act provides for a Court of Session to be a Special Court to try offences under this Act in each district. • The prime objective of the SC/ST Act is to deliver justice to marginalise through proactive efforts, giving them a life of dig- nity, self-esteem and a life without fear, violence or suppres- sion from the dominant castes.

www.amritaias.com | [email protected] | +91 85890 60000 62

Constitutional provisions for SC/STs • Article 17 of the Constitution of India abolished the practice of untouchability. • The Fifth and the Sixth Schedules of the constitution (with ref- erence to article 244) make special provisions for the administration and welfare of Scheduled Areas and Scheduled Tribes. • Reservation of seats for SC & ST at various layers of governments (Article 330, 332, 243D and 243T) • Articles 341 and 342 empower the President of India to draw up a list of these castes and tribes. • Article 46 says that educational and economic interests of SCs and STs shall be protected and promoted. • Article 338 and 338A provide for the appointment of SC and ST commissions with powers to ensure the smooth functioning of legal and constitutional safeguards. • Article 275(1) of the Constitution makes provision that the Union of India shall make grants to States for implementing welfare schemes in Scheduled Areas and for Scheduled Tribes.

Other Acts protecting SC/STs • Forest Rights Act 2006 »» The Scheduled Tribes and Other Traditional Forest Dwell- ers (Recognition of Forest Rights) Act, 2006, was passed on December 15, 2006. »» The Rules to the Act - which provide for some of the operational details - were notified into force on January 1, 2008. »» Prior to being passed, the original Bill was subjected to a lengthy process of examination by a Joint Parliamentary Committee. »» The Committee’s historic report marked a huge step forward for the struggle for forest rights. •

www.amritaias.com | [email protected] | +91 85890 60000 63

• Protection of civil rights Act 1955 and Protection of civil rights rule 1977. »» This act deals with the offences that are pertains to the untouchability in the country. »» Section 15A(2)(i) of the Protection of Civil Rights Act, 1955, provides for adequate facilities, including legal aid to the persons subjected to any disability arising out of ‘untouchability’ to enable them to avail themselves of such rights. »» Section 15A(2)(iii) of the Protection of Civil Rights Act, 1955, provides for setting up of special courts for trial of offences under the Act. • Panchayats (Extension to Scheduled Areas) Act, 1996 »» Panchayats (Extension to Scheduled Areas) Act, 1996 or PESA is a law enacted by the Government of India to cover the “Scheduled areas”, which are not covered in the 73rd amendment or Panchayati Raj Act of the Indian Con- stitution. »» It was enacted on 24 December 1996 to enable Gram Sabhas to self-govern their natural resources. »» It is an Act to provide for the extension of the provisions of Part IX of the Constitution relating to the Panchayats to the Scheduled Areas.

Problems faced by SCs & STs • Social Problems »» Social problems of SC/ST groups are pertained to the concept of purity and pollution. »» The untouchables were given a very low position in the society. »» They were denied many basic amenities of life which were accorded to the high-caste Hindus. »» Traditionally the untouchables were deprived of getting

www.amritaias.com | [email protected] | +91 85890 60000 64

education and illiteracy is prevalent among them. »» Many public indignities because they were denied the right to use the services of public utilities like wells, public transport as well as educational institutions. • Religious Issues »» Right to enter into temples has denied and if entered, pu- nitive actions taken on them by dominant castes. »» The untouchables were neither allowed to enter the temples nor served by the Brahmins. »» They had no right to worship the Gods and Goddesses in the temple. • Economic Constraints »» They were not provided with proper reward for their service. »» Traditionally, untouchables were deprived of landed property of their own and land reforms are poorly implemented across India except few states.. »» Economic and social constraints put forward by dominant group against establishing new businesses by untouchables. »» They were restrictedfrom to engaging themselves in the professions which were being carried out by the people of other castes. »» The untouchables were not free to choose any occupa- tion according to their own ability but mostly by birth like cleaning streets, remove dead cattle and to undertake hard agricultural work. »» Mostly they were landless labourers.

# Practice Questions What are the two major legal initiatives by the state since independence, addressing discrimination against scheduled tribe (ST)? (Prev.2017,150 words)

www.amritaias.com | [email protected] | +91 85890 60000 65

REPRESENTATION OF PEOPLE’S 11 (AMENDMENT) ACT, 2017 [GS-II]

Context • Lok Sabha has passed Representation of the Peo- ple (Amendment) Bill, 2017 to extend the facility of ‘proxy voting’ to overseas Indians, on the lines of service voters The US has given India Strategic Trade Authorisation-1 status. • The Bill seeks to amend Representation of People Act (RPA), 1950 and Representation of People Act (RPA), 1951 to allow for proxy voting and make certain provisions of these Acts gender-neutral.

Features of the Bill: • The Bill proposes to allow non-resident Indians (NRIs) to emerge as a decisive force in the country’s electoral politics on their own terms. • The amendment paves the way to remove an “unreasonable restriction” posed by Section 20A of the Representation of the People Act, which requires overseas electors to be physically present in their electoral constituencies to cast their votes.

Need of the Amendment • The best electoral system is the one that straightforwardly and most accurately reflects the preferences of voters. • Section 20A of the Act provides for registration and inclusion of overseas electors in the electoral rolls. • The Registration of Electors Rules, 1960 provide for overseas electors to register themselves in the electoral rolls of their respective constituencies on the basis of self-attested copies of their passport and valid visa, and exercise their franchise in

www.amritaias.com | [email protected] | +91 85890 60000 66

person on production of the original passport at the time of voting at the specified polling booth. • Thus, the rules demand for the physical presence of overseas electors in their respective polling stations in India on the day of polling. This causes hardship to the overseas electors. • This amendment proposes facilitating an external mode of voting, that is, voting by proxy, whereby such electors can exercise their franchise from their places of residence abroad.

Implications of current amendment: • If the Bill is passed, overseas voters can appoint a proxy to cast their votes on their behalf, subject to certain conditions to be laid down in the Conduct of Election Rules, 1961. • This would considerably mitigate the difficulties presently faced by overseas electors in exercising their franchise. • According to the provisions of ‘Representation of the People Act (Amendment) Bill, 2017 overseas Indians, who are entitled to vote in India, can appoint a proxy voter to cast their votes on their behalf. • Also, the overseas Indians would be allowed to use the option of proxy, which till now was only available to service personnel. •

Disadvantages of a proxy voter: • It threatens the very core of democracy as the special treatment violets the fact that there are many times more domestic migrants who also seek to have a voting right at their homes. • The proxy voter may cast vote for the candidate who is not desired by overseas Indians. • There can be no guarantee of NRI voters exercising their vote in a free and fair manner as there can be no check on coercion or inducement by the employers.(free will) • There is no guarantee that votes would not be sold to the so called proxy.(scope for corruption)

www.amritaias.com | [email protected] | +91 85890 60000 67

• There is no fixed number of votes a proxy could cast in an election.

Discussion on FPTP • The candidate with the highest number of votes, irrespective of the margin of victory or percentage of votes polled, is declared the winner. • The FPTP has several advantages due to which it is considered to be the simplest electoral system. • The first advantage is clarity—it is an easy system to under- stand, the choices for the voters are clear, and the counting is also simple and straightforward. • As soon as the votes are counted, the winner is immediately evident. • The system also guarantees one representative for each constituency who is accountable to his electorate, which is not necessarily the case in other voting systems. • A third advantage is that candidates get to know their relative support in the constituency, unlike other parties where electors vote for a party, and not for individual candidates. • In a country such as India, with near one billion voters, the ease of administering voting in this system almost makes it the most viable model to follow. • It is increasingly becoming clear that the first-past-the-post system of voting is fraught with serious problems. • In the 2014 Lok Sabha elections, only 37 percent of the elected candidates, or 201MPs obtained a majority of the votes in the elections. In the 2009 elections, only 22 percent, or 120 MLAs, had secured a majority. • At the legislative assembly level, across all states, averages of 44.5 percent of the MLAs have secured more than 50 percent of the vote share in their constituencies. • These instances reflect the main shortcoming of the FPTP system—the lack of legitimacy of political parties who are voted

www.amritaias.com | [email protected] | +91 85890 60000 68

to a majority of seats by a minority of voters. • In India’s electoral history, the Congress party’s politician PK Khanna recorded the victory with the lowest ever vote share— in 1967, Khanna was elected to the Shahjahanpur constituency in Uttar Pradesh with just 15.6 present of the votes. • Another consequence of the winner-takes-all nature of the FPTP system is that it rewards parties who target and treat preferentially specific segments of the electorate, or “vote banks,” rather than the majority of electors. The system thus rewards divisive electoral strategies and encourages parties to field tainted candidates. • In order to overcome the shortcoming of the first-past-the- post system, some critics advocate for the proportional representation (PR) system of voting. In the PR system, every party gets a share of seats proportional to the share of votes it se- cures. • However, the proportional representation voting system pres- ents issues as well. The system might make it difficult for parties to form the government, because the party with the maximum number of votes rarely obtains more than 30 to 35 percent of the vote share. As a result, a dominant party would likely have to form a coalition with other large parties. • With the flaws in FPTP increasingly becoming exposed, the time to look at alternative models has come. Moreover, considerable political will is required for consider the electoral reforms as a priority political agenda to addressing issues such as transparency of political funding and simultaneous elections for the Lok Sabha and state legislative assembles.

Major issues in Indian Electoral system • The major defects which come in the path of electoral system in India area: money power, muscle power, criminalisation of politics, poll violence, booth capturing, communalism, castism, non-serious and independent candidatures etc. • Electioneering is an expensive affair in every democratic polity which play a more vital role in India. Money power plays in our

www.amritaias.com | [email protected] | +91 85890 60000 69

electoral system destructive role affecting seriously the working of periodic elections. It leads to all around corruption and contributes mainly to the generation of black money economy which rules at present our country. • Elections in India so far from a common man, only those people can participate in elections as a candidate who has a lot of money, because today vote is not a mean of public opinion. It is being purchased. • Violence, pre-election intimidation, booth capturing etc. are instances of muscle power. Criminalisation of politics and politicization of criminals are responsible for the manifestation of muscle power at elections. Through violence, force, threaten- ing, creating fear in the mind of voters the political parties fry to collect maximum vote in order to win elections. • The number of candidates has swelled due to the participation of Independents. They contest elections light heartedly and lose their deposits. Non-serious candidates are largely floated by serious candidates either to cut sizeable portion of voters of rival candidates or to split the voters on caste lines or to have additional physical force at polling station and counting centres. • Numerous people charged with serious offences such as mur- der, rape, black-mailing, extortion, etc. contested and won elections. This “Criminalisation of politics has become a pecu- liar as well as a regular phenomenon of Indian Politics. • The government in power at the time of election misuse official machinery to further the election prospects of its party candidates. The miscue of official machinery takes different forms, such as issue of advertisements at the cost of government and public exchequer highlighting their achievements, disbursements out of the discretionary funds at the disposal of the minister, use of government vehicles for canvassing etc. • Communal politics in India has led to enormous bloodshed and misery to the vast majority of the people belonging to different religions. The tendency of exploiting caste, communal, religious sentiments of people would affect national unity and

www.amritaias.com | [email protected] | +91 85890 60000 70

integrity and also communal harmony. • Caste plays an important role in Indian society and this is very much visible during elections. In India, there are many places where local patterns of caste and affiliations decide the voting behaviour. People belonging to a particular caste tend to support a contesting candidate depending upon caste affiliations and local politics. A common phenomenon very prevalent in India is that people vote for those candidates who belong to their own caste. • In India, many voters do not cast their votes. The voting percentage generally is almost 50 to 60 percent. Therefore, the representative bodies are not truly representative. • In India, it takes a long time in the disposal of election petitions and sometimes the very purpose of election petition gets de- feated. • The present majority system leads to many problems. It de- cides only who get majority among the contesters irrespective of getting voting percentage, but sometimes this percentage is less than 25 percentage of total votes, even though they win in elections, it leads a winning person represents to a constituency with minority votes. • A coalition after elections is also a major defect in our political system. They contest with different ideologies in elections but after elections only for the power, on the name of the pre-venting re-elections join together to form the government is also against the public opinion. So the coalitions before the elections only will be permitted, for that required amendments will be made to law. • • At present any person gets right to vote at the age of 18 but they can contest in elections after completion of 25 years to the Lok Sabha or Legislative Assemblies. By 25 years they enter into a different profession, they may not come in to political field. Hence the voting age and contesting to the Lok Sabha and Legislative assembly are also should be the same. By this, the youth will be entered into the direct elections as representatives’ not mere voters.

www.amritaias.com | [email protected] | +91 85890 60000 71

• Paid News is a latest serious issue in Indian electoral system. According to the Press council of India, “Any news or analysis appears in any media either print or Electronic for a price in cash or kind as consideration”. In reality it is being difficulty to scrutiny, so the mechanism will be strengthened. • The problem of widespread illiteracy cause ignorance and pre- vents adequate understanding of various democratic practices and processes. Despite of several developmental steps including opening of schools and colleges across the country still illiteracy is a major problem. • Politicization of Police has emerged as another serious problem in our democracy. Political leaders very often misuse police agencies in order to sort out personal problems and intim- idate their opponents. Politicians exercise considerable power through threats of transfer of make attractive offers of alternative postings. • There has been very sharp erosion in the ideological orientation of political parties. Party dynamics in India has led to the emergence of valueless politics much against the ideals of the father of the nation, Mahatma Gandhi, who suggested that the Congress party should be disbanded after the achievement of Independence and its members should engage themselves in the service of the people.

Steps Taken by the Government • In 1974, the committee on Electoral Reforms set up under the chairmanship of V.M. Tarkunde, popularly known as the Tarkunde Committee. • The Dinesh Goswami Committee report of 1990. • The Indrajit Gupta Committee Report of 1998,recomended state funding of elections. • The low Commission report in 1999 etc. gave number of recommendations regarding electoral reforms and few of them have been implemented but yet a lot has to be done. • The whole country is now expressing serious concern over the

www.amritaias.com | [email protected] | +91 85890 60000 72

anti-social and criminal elements entering into the electoral area. • The Elections Commission of India has also taken new initiatives towards suggesting electoral reforms such as state funding of elections, model code of conduct for parties and candidates, measures to check criminalization of politics, auditing of financial sources of parties etc. • Thus it becomes necessary to take effective steps to control and eliminate the distortions by introducing appropriate amendments in the law that governs the conduct of elections

Way forward • The CEC should not be at the mercy to Executive and Parlia- ment for its requirements. He should have separate and independent election department to enhance its objectivity and impartiality. Furthering the autonomy of EC. • Political corruption should be stopped by providing funds to genuine candidate through political parties whose account should be auditable. Candidate involving in corruption should be disqualified. • At present, the EC does not have independent staff of its own. Whenever elections take place, the Election Commission has to depend upon staff of central and state Governments. The dual responsibility of the administrative staff, to the government for ordinary administration and to the EC for electoral administration is not conductive to the impartiality an efficiency of the commission. So EC should have its own staff. • For having a true democracy the registration and recognition of the political parties should be fair and without any kind of influences. • Mass Media should play a non-partisan role in election and as a safeguard of democracy. Now the new media and social media can also play a considerable role. • Every voter must be perfectly free to vote or expression of their free will.

www.amritaias.com | [email protected] | +91 85890 60000 73

• Parliament must pass a law dealing with this serious problem of delisting of valid electorates from electoral rolls because illiterate electorate residing in far villages cannot watch over publication of electorate lists. • Unearth and confiscate black money, which is widely used for buying votes. • Make politicians as well as voters law abiding. • Strictly apply the code of conduct and punish those who vio- late it by making it as a law. • Revise voter’s lists in time to avoid bogus polling and correct mistakes in the lists. • Prompt action by the judiciary, if any kind of violation is detected during elections. • Preparation of electoral rolls by EC is to be supervised at village level and certificates from officials who prepare electoral rolls to have been thoroughly revised.

Conclusion The problems remain as critical and challenging as ever. Even though the EC is working hard in this direction, but it cannot succeed unless all political parties and voters realize their responsibility. Thus it becomes necessary to take effective steps to control and eliminate the distortions by introducing appropriate amendments in the law that governs the conduct of elections. It is high time to bring out some changes in our constitution to keep away these anti-social elements from legislature and parliament.

#Practice Question Indian electoral system is failed to represent the majority will. Do you think that the India needs a different electoral system?(200 words)

www.amritaias.com | [email protected] | +91 85890 60000 74

REJUVNATING THE SYSTEM FOR A SKILL 12 DEVELOPMENT [GS-II]

Context • The report of the Standing Committee on Labour (2017-18) headed by an MP, KiritSomaiya, on the “In- dustrial Training Institutes (ITIs) and Skill Develop- ment Initiative Scheme” of the Ministry of Skill Devel- opment and Entrepreneurship (MSDE). • Small shops, basements, tin sheds and godowns. These are not random workplaces but places where private Industrial Training Institutes (ITIs) are running in the country.

Explaining the scale-up of Vocational Education: • The ITIs were initiated in the 1950s. In a span of 60 years, until 2007, around 1,896 public and 2,000 private ITIs were set up. • However, in a 10-year period from 2007, more than 9,000 additional private ITIs were accredited. •

Private sector and skill development • Private training partners have mushroomed at the rate of five a day (mostly with government support) and it is clear that the government has been unable to regulate private institutions for quality. • Private sector engagement in skill development has been taken up by standalone private training partners and not employers. • The latter could have made the system demand-driven. Mean- while, the lack of a regulator for skill development, with teeth, has led to poor quality affiliation, assessment and certification.

www.amritaias.com | [email protected] | +91 85890 60000 75

Concerns and Findings of Somiya Committee: • The Somaiya committee report is scathing in its tone and specific in details. • It further outlines instances of responsibility outsourcing, no oversight, connivance and an ownership tussle between the Central and State governments. • The committee says that it is not efficiency but a disregard for norms and standards. • However, the ITIs are not alone. The National Skill Development Corporation (NSDC) today has more than 6,000 private training centres. • Since it has short-term courses and its centres open and close frequently, it is all the more prone to a dilution of standards. • Number of ITIs increasing rapidly abut they disregard norms and standards. • Due to short-term courses, vocational training centres open and close frequently they are more prone to a dilution of standards. • With the increase in number of institutes, government has been unable to regulate private institutions for quality. Place- ment in NSDC training has been less than 15%. • Private sector engagement in skill development has been taken up by private training partners and not employers. • The employers could have made the system demand-driven. The lack of a regulator for skill development has led to poor quality affiliation, assessment and certification. • There are instances of responsibility outsourcing, no super- vision, illegal activities and an ownership tussle between the Central and State governments. • The QCI did not follow accreditation norms created by the Na- tional Council for Vocational Training (NCVT). The NCVT is just a stamp with no role in actually assessing quality. • The future of 13.8 lakh students in these substandard ITIs is at

www.amritaias.com | [email protected] | +91 85890 60000 76

risk. If the same exercise were extended to other skill development schemes, the picture would be grimmer. • Lax provisions of vocational training programs and no scrutiny is a major concern. For example the Standard Training Assess- ment and Reward scheme spent Rs. 850 crore in 2013-14 with no norms for quality. • The report also reinforces disturbing findings of a national survey by the research institute (NILERD) of the Planning Com- mission in 2011 about private ITIs: had fewer classrooms and workshops for practice; and their teachers were very poorly paid.

Systemic change required • Sharda Prasad Committee recommendations. »» Centre should scrap the existing 40 skill councils, many of which have overlapping roles. These should be replaced by just 21 councils in accordance with the national industrial classification of different sectors. »» Government should review the NSDC’s role and functioning comprehensively. »» Government should also introduce an oversight mechanism on the NSDC to ensure that such conflicts of interest do not arise in future. This mechanism should be preferably from the central bank, as it is registered as a non-banking finance company. »» The Chairman of NSDC should be excluded from NSDF • Need a better oversightwith a national board for all skill development programmes. • The core work (accreditation, assessment certification and course standards) cannot be outsourced. Board is required in vocational training that is • Since we have the NCVT as a legacy, it should be used as a kernel to constitute the board. We should also have a mandatory rating system for the ITIs that is published periodically.

www.amritaias.com | [email protected] | +91 85890 60000 77

• A ranking of the ITIs on several parameters such as the one done by the National Assessment and Accreditation Council in tertiary education can be replicated. • There should be one system, with one law and one national vocational education and training system. • Create a unified national vocational system where the ITIs, NSDC private vocational trainers and vocational education in schools, and the other Central ministries conducting training gel seamlessly and can learn from, and work with each other. • A unified legal framework can facilitate such unification. The absence of a law has only weakened regulation and monitoring. • National vocational act should be introduced and that may replace all scattered regulations - recommended in the 12th Five Year Plan.

Micro-institutional reforms • The ITIs have many internal issues such as staffing and salaries that need attention, as the NILERD nationwide survey in 2011 had found. • There is also a critical need to re-skill ITI teachers and maintain the student-teacher ratio. • Since technology obsolescence is a continuous challenge, financial support envisaged through the NSDC should be extended to the ITIs. • There has been a tremendous push by the government for private sector talent in government; perhaps it is worth considering talent from the open market to fill up higher posts in skill development. • Institutional reforms such as moving the office of the Direc- torate General of Employment (the arm that has all data on employment) from the Ministry of Labour to the MSDE would help. It would also complement the Directorate General of Training already under MSDE.

www.amritaias.com | [email protected] | +91 85890 60000 78

Other challenges in skill development • Employers and financing are the two aspects need urgent attention of policy makers. • Given the scale of our demographic challenge, a belief that financing from corporate social responsibility, multilateral organisations such as the World Bank, and the government will meet the financial needs for skill development is wishful think- ing. • The only way to mobilise adequate resources the right way is to do skills training, and have equipment and tools that keep pace with changing needs and ensure that employers have skin in the game.

Need for skill development in India • Globalization, knowledge and competition have intensified the need for highly skilled workforce in both the developing and developed nations as it enables them to accelerate their growth rate towards higher trajectory. • Demographically speaking there are two Indians, with different policy concerns: a soon-to begin-ageing India where the elderly and their needs will require greater attention; and a young India where providing education, skills, and employment opportunities must be the focus. • Skill development has emerged as a key strategy to realize the potential of demographic advantage of having the youngest workforce with an average age of 29 years. • For India, skill development is critical from both socio-economic and demographic point of view. • The skill capacity has been assessed in the form of general education and vocational training level of the Indian workforce in the age group of 15-59 and which was found to extremely low.

Important initiatives for skill development • Proposed Scheme on Entrepreneurship Development.

www.amritaias.com | [email protected] | +91 85890 60000 79

»» Educate and equip potential and early stage entrepreneurs across India. »» Connect entrepreneurs to peers, mentors, incubators. »» Support entrepreneurs through Entrepreneurship Hubs (E-Hubs). »» Catalyse a culture shift to encourage entrepreneurship. »» Encourage entrepreneurship among underrepresented groups. »» Promote Entrepreneurship amongst Women. »» Foster social entrepreneurship and grassroots innovations. • Skill India programme »» Pradhan Mantri Kaushal VikasYojana (PMKVY) »» PMKVY) is the flagship scheme of the Ministry of Skill De- velopment & Entrepreneurship (MSDE). »» The objective of this Skill Certification Scheme is to enable a large number of Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood. »» Individuals with prior learning experience or skills will also be assessed and certified under Recognition of Prior Learning (RPL). »» Under this Scheme, Training and Assessment fees are completely paid by the Government. • Skills Acquisition and Knowledge Awareness for Livelihood Promotion. »» SANKALP project aims to implement the mandate of the National Skill Development Mission (NSDM). »» The project will be implemented in mission mode through World Bank support and is aligned with the overall objectives of the NSDM. »» The main objectives of the project include strengthening

www.amritaias.com | [email protected] | +91 85890 60000 80

institutional mechanisms at both national and state levels, building a pool of quality trainers and assessors, creating convergence among all skill training activities at the state level, establishing robust monitoring and evaluation system for skill training programs, providing access to skill training opportunities to the disadvantaged sections and most importantly supplement the Make in India initiative by catering to the skill requirements in relevant manufacturing sectors. • UDAAN is a Special Industry Initiative for Jammu & Kashmir in the nature of partnership between the corporates of India and Ministry of Home Affairs and implemented by National Skill Development Corporation. • STAR Standard Training Assessment and Reward »» The National Skill Certification and Monetary Reward Scheme, known as STAR (Standard Training Assessment and Reward),was operational between August 2013 and September 2014. »» NSDC is the designated implementing agency of the scheme and is working through various Sector Skill Coun- cils (SSCs), Training Providers (TPs) and independent As- sessment Agencies (AAs).

Institutions for skill development • National Skill Development Agency (NSDA). »» The National Skill Development Agency (NSDA), an autonomous body, was created with the mandate to co-or- dinate and harmonise the skill development activities in the country, is part of the Ministry of Skill Development & Entrepreneurship (MSDE). »» Coordinate and harmonize the approach to skill development among various Central Ministries/Department. State Governments, the NSDC and the Private sector. »» Evaluate existing skill development schemes with a view to assessing their efficacy and suggest corrective action

www.amritaias.com | [email protected] | +91 85890 60000 81

to make them more effective. »» Create and maintain a national data base related to skill development including development of a dynamic Labour Market Information System (LMIS). »» Take affirmative action for advocacy. »» Ensure that the skilling needs of the disadvantaged and the marginalized groups like SCs, STs, OBCs, minorities, women and differently abled persons are taken care of. »» Rationalization of the Skill Development Schemes of the Government of India. »» Creation of an integrated Labour Market Information Sys- tem. »» Engagement with States and Skills Innovation Initiative. • National Skill Development Corporation »» Proactively catalyse creation of large, quality vocational training institutions. »» Reduce risk by providing patient capital. Including grants and equity. »» The creation and sustainability of support systems required for skill development. This includes the Industry led Sector Skill Councils.

Policies initiatives for skill development • National Policy on Skill Development and Entrepreneurship 2015. »» The objective of the National Policy on Skill Development and Entrepreneurship, 2015 will be to meet the challenge of skilling at scale with speed and standard (quality). »» It will aim to provide an umbrella framework to all skilling activities being carried out within the country, to align them to common standards and link the skilling with demand centres.

www.amritaias.com | [email protected] | +91 85890 60000 82

»» In addition to laying down the objectives and expected outcomes, the effort will also be to identify the various institutional frameworks which can act as the vehicle to reach the expected outcomes. »» The national policy will also provide clarity and coherence on how skill development efforts across the country can be aligned within the existing institutional arrangements. »» This policy will link skills development to improved employability and productivity. • National Skill Development Initiative 2009 »» NSDI 2009 will empower all individuals through improved skills, knowledge, nationally and internationally recognized qualifications to gain access to decent employment and ensure India’s competitiveness in the global market. »» Create opportunities for all to acquire skills throughout life, and especially for youth, women and disadvantaged groups. »» Promote commitment by all stakeholders to own skill development initiatives. »» Develop a high-quality skilled workforce/entrepreneur relevant to current and emerging employment market needs. »» Enable the establishment of flexible delivery mechanisms that respond to the characteristics of a wide range of needs of stakeholders. »» Enable effective coordination between different ministries, the Centre and the States and public and private providers.

Conclusion: The best possible available solution is through a reimbursable industry contribution (RIC) - a 1-2% payroll tax that will be reim- bursed when employers train using public/private infrastructure and provide data.RIC, which is implemented in 62 other countries, was recommended in the 12th Plan and is an idea whose

www.amritaias.com | [email protected] | +91 85890 60000 83 time has come.An estimate indicated that such a tax would generate `17, 000 crore per annum for skilling in India — which is several multiples of State/Union governments’ current annual budget for skilling. Finally, while there is so much talk of skills for the future and the impact of artificial intelligence and automation, data show that 13.8 lakh students in the ITIs are suffering due to poor institutional accreditation.Placement in NSDC training has been less than 15%. Maybe if we take care of the present, we will be better prepared for the future.We need to create a unified national vocational system where the ITIs, NSDC private vocational trainers and vocational education in schools, and the other Central ministries conducting training gel seamlessly and can learn from, and work with each other.

#Practice Question Low employability of Indian workforce is a perennial problem for our economy. How it is affecting the overall economic growth potential?And discuss various measures undertaken by the government and other agencies to mitigate this issue. (250 words)

www.amritaias.com | [email protected] | +91 85890 60000 84

13 AUSTRALIA RECOMMENCE ITS ADOPTION PROGRAMME WITH INDIA[GS-II]

Context • The Government of Australia has decided to recommence the Adoption Programme with India, as per Hague Convention on Inter-Country Adoption. • The adoptions from India had earlier been put on hold by the Government of Australia eight years ago, on the reported charges of trafficking of children for Inter-country adoption by some of the recognized Indian placement agencies.

Significance of the move: • The recommencement of the adoption programmes will now enable large number of prospective adoptive parents including those of Indian origin settled in Australia in fulfilling their desire of adopting a child from India. • It also helps to find prospective parents for the orphaned dis- abled children, as the foreigners tend to prefer children with disability than domestic parents who seek for adoption. • Better chances for good health and social support care for the adopted children at comparatively developed Australia.

Laws governing adoption • Since adoption comes under the ambit of personal laws, there has not been a scope in the Indian scenario to incorporate a uniform law among the different communities which consist of this melting pot. • Hence, this law is governed by various personal laws of different religions. • Adoption is not permitted in the personal laws of Muslims,

www.amritaias.com | [email protected] | +91 85890 60000 85

Christians, Parsis and Jews in India. Hence they usually opt for guardianship of a child through the Guardians and Wards Act, 1890. • Indian citizens who are Hindus, Jains, Sikhs, or Buddhists are allowed to formally adopt a child. • The adoption is under the Hindu Adoption and Maintenance Act of 1956 that was enacted in India as a part of the Hindu Code Bills. • It brought about a few reforms that liberalized the institution of adoption. • Juvenile Justice (Care and Protection) Amendment Act, 2010 (J.J. Act).

Safety measures put in place by India: • The regulation of Inter-country adoptions has been made strict by the Government of India with the enactment of Juve- nile Justice Act, 2015 and notification of Adoption Regulations, 2017. • The Ministry of Women & Child Development along with Cen- tral Adoption Resource Authority (CARA) has been constantly monitoring the implementation of these laws.

Hague adoption Convention • The Hague Convention on Protection of Children and Co-operation in Respect of Inter-country Adoption (or Hague Adop- tion Convention) is an international convention dealing with international adoption, child laundering and child trafficking in an effort to protect those involved from the corruption, abus- es, and exploitation which sometimes accompanies international adoption. • The Hague Convention protects children and their families against the risks of illegal, irregular, premature or ill-prepared adoptions abroad. • To do this, the Hague Convention puts:

www.amritaias.com | [email protected] | +91 85890 60000 86

»» Safeguards in place to make sure that all inter-country adoptions are in the best interests of the child and re- spects their human rights, »» A system in place of cooperation among countries to guarantee that these safeguards are respected, and to prevent the abduction of, sale of, or traffic in children.

Implementation: • For Hague adoptions, the authorities in both countries must agree to go ahead with the adoption. • For non-Hague adoptions, requirements may vary from one country to another. • The Hague Convention does not allow private adoptions in the child’s home country. • Adoption is a handled by the provinces and territories, and they all have and follow laws implementing the Hague Conven- tion.

Central Adoption Resource Authority CARA: • Central Adoption Resource Authority (CARA) is a statutory body of Ministry of Women & Child Development, Government of India. • It functions as the nodal body for adoption of Indian children and is mandated to monitor and regulate in-country and inter-country adoptions. • With the centralised system in place for adoption anywhere in the country, agencies can no longer select the prospective parents. They are selected on first come, first-served basis as they register in ‘Carings’, the adoption portal. • CARA is designated as the Central Authority to deal with inter-country adoptions in accordance with the provisions of the Hague Convention on Inter-country Adoption, 1993, ratified by Government of India in 2003. • CARA primarily deals with adoption of orphan, abandoned

www.amritaias.com | [email protected] | +91 85890 60000 87

and surrendered children through its associated /recognised adoption agencies. • Couples will no longer be allowed to “pick and choose” one child out of three options.Instead, parents will be offered just one child to either accept or reject within 48 hours. If they reject the child, they will get another referral three months later.

Problems with the CARA: • New guidelines for adoption in 2017 and making the existing laws more stringent, agencies are finding it difficult to prepare a child for adoption. • The new process is easy for children who have been orphaned or surrendered but not for the abandoned child. It is mandated that the agency have to make sure that there are no relatives who would claim the child. • The procedure is to advertise in a national daily about the child which is often a costlier affair for the adoption agencies. • The online system lack human element in addressing the emotional and cultural aspects of adoption. • Ideal combinations did not often work out, so prospective parents either had to wait for extended periods of time. • The new system has reduced an agency’s job to mere care-giving for children rather than enabling adoptions. • The brief 20-day window to meet a child and take her home has led to a gradual rise in failed adoptions. And also from a psychological perspective, this is not in the best interests of children.

Why Legal Adoption: • Legal adoption is irrevocable and provides an extended security ring for the adopted child. • It ensures the status of the child in the adoptive family. • A legally adopted child can enforce all his/her rights in the Court of Law.

www.amritaias.com | [email protected] | +91 85890 60000 88

• On the contrary, informal adoptions do not carry any legal enforcement and are gross violation of the law of the land. • As per Supreme Court of India’s Direction, specific guidelines have been laid down by the Central Adoption Resource Au- thority (hereinafter referred as CARA), the apex controlling body in matter relating to adoption in India under the Ministry of Women and Child Development for legal adoption of Indian Children.

Problems with the adoption in India • Financial challenges and obligations.Currently, foreign couples are required to pay an official fee of $5,000 to the agency from which they are adopting a child. In the black market, this figure can be $20,000 or even higher. Indian parents are required to pay Rs.46, 000, out of which Rs.1, 000 is for registration and Rs.5,000 for home study. • Legal challenges pose difficulty for interstate and inter country adoption. • Time and legal constraints for inter country adoptions. • Health challenges include the health of adopted child. • Emotional and cultural barriers for inter country adopted children. • Violation of ethical practices by adoption agencies and parents. • Putting the paperwork online was meant to make it easier to adopt. It hasn’t quite worked out that way. • Adoption rates in India are falling, and most cite procedural delays as the main reason. • Families want a choice of babies, sometimes the attitude can lead to major conflict between (prospective) parents and agencies. • The rise of surrogacy affects prospects of adoption. • Most Indian couples prefer adopting babies under the age of

www.amritaias.com | [email protected] | +91 85890 60000 89

one and are unwilling to accept a child with any medical com- plication or physical disability. • Couples’ insistence on adopting infants has left adoption agencies with a glut of children aged 3-4 years. • Children are being adopted every which way, through nursing homes, hospitals and institutions that don’t figure in the adoption set-up at all. • Fraudulently obtaining children from poor parents with the sole purpose of selling them to foreigners for adoption at exorbitant rates. • Inter-country adoptions bred corruption and malpractices in the form of children being sold.

Recent trends in adoption • Foreign couples are more open to adopting a child with a medical condition than Indian couples. • Even though nearly 400 agencies are registered, little is done to ensure that follow all guidelines. • There is a strong belief among public and adoption agencies that adoption is a human process, it can’t be done online. • Recently, there has been a rising demand for girl children. • The number of Indian adults registered with Cara has more than doubled in under a year’s time, from 7,000 last July to 15,200 this May.

Conclusion • Above all adoption agencies play the most crucial role in child adoption. They should appoint dedicated and service oriented responsible personnel having clear-cut knowledge of child rearing so that they will be able to foster natural mothering care with love and affection. • Adoption institutions should promote adoption work by building social awareness among the parents.

www.amritaias.com | [email protected] | +91 85890 60000 90

• They should create a positive congenial social atmosphere for the purpose of adoption. Moreover the international adoption of Indian children should be encouraged with careful attention and by fallowing strict measures so that the malpractice by foreign couples regarding adoption can be checked. • The nation’s children are supreme important asset. Their nur- ture and solitude are responsibilities of nation. • Children’s programmes should find a prominent part in national plans for the development of human resources so that children grow up to become robust citizens; physically fit, mentally alert and morally healthy endowed with the skills and motivation needed by the society. • Equal opportunities for development to all children are the aim, as this will serve larger purposes of reducing inequality and increasing social justice. • Finally, tele- counselling to the prospective parents by the CARA could improve the adoption process and the smooth integration of the child into the new family environment.

#Practice Question Child adoptions in India are marred with several issues. Elucidate (150 words)

www.amritaias.com | [email protected] | +91 85890 60000 91

14 ARBITRATION & CONCILIATION (AMENDMENT) BILL, 2018 [GS-II]

Context • The Lok Sabha has passed the Arbitration and Con- ciliation (Amendment) Bill, 2018. It will amend the Arbitration and Conciliation Act, 1996. • The Act contains provisions to deal with domestic and international arbitration, and defines the law for conducting conciliation proceedings.

Features of the Bill • Arbitration Council of India: The Bill seeks to establish an independent body called the Arbitration Council of India (ACI) for the promotion of arbitration, mediation, conciliation and other alternative dispute redressal mechanisms. • Its functions include: (i) framing policies for grading arbitral institutions and accrediting arbitrators, (ii) making policies for the establishment, operation and maintenance of uniform pro- fessional standards for all alternate dispute redressal matters, and (iii) maintaining a depository of arbitral awards (judg- ments) made in India and abroad. • Composition of the ACI: The ACI will consist of a Chairperson who is either: (i) a Judge of the Supreme Court; or (ii) a Judge of a High Court; or (iii) Chief Justice of a High Court; or (iv) an eminent person with expert knowledge in conduct of arbitration. Other members will include an eminent arbitration practitioner, an academician with experience in arbitration, and government appointees. • Appointment of arbitrators: Under the 1996 Act, parties were free to appoint arbitrators. In case of disagreement on an appointment, the parties could request the Supreme Court, or the concerned High Court, or any person or institution desig-

www.amritaias.com | [email protected] | +91 85890 60000 92

nated by such Court, to appoint an arbitrator. • Role of courts: Under the Bill, the Supreme Court and High Courts may now designate arbitral institutions, which parties can approach for the appointment of arbitrators. »» For international commercial arbitration, appointments will be made by the institution designated by the Supreme Court. »» For domestic arbitration, appointments will be made by the institution designated by the concerned High Court. »» In case there are no arbitral institutions available, the Chief Justice of the concerned High Court may maintain a panel of arbitrators to perform the functions of the arbitral institutions. »» An application for appointment of an arbitrator is required to be disposed of within 30 days. • Relaxation of time limits: Under the 1996 Act, arbitral tribunals are required to make their award within a period of 12 months for all arbitration proceedings. The Bill proposed to remove this time restriction for international commercial arbitrations. • Completion of written submissions: Currently, there is no time limit to file written submissions before an arbitral tribunal. The Bill requires that the written claim and the defence to the claim in an arbitration proceeding should be completed within six months of the appointment of the arbitrators. • Confidentiality of proceedings: The Bill provides that all details of arbitration proceedings will be kept confidential except for the details of the arbitral award in certain circumstances. Disclosure of the arbitral award will only be made where it is necessary for implementing or enforcing the award.

Arbitration • Arbitration is a settlement of dispute between two parties to a contract by a neutral third party i.e. the arbitrator without re- sorting to court action.

www.amritaias.com | [email protected] | +91 85890 60000 93

• The process can be tailored to suit parties’ particular needs. • Arbitrators can be chosen for their expertise. • It is confidential and can be speedier and cheaper than court. There are limited grounds of appeal. • Arbitral awards are binding and enforceable through courts.

Significance of ADR: • The concept of Alternative Dispute Resolution is usually thought of as a voluntary chosen by the parties because of its greater efficacy and economy. • These methods usually involve a third party referred to as neutral, a skilled helper who either assists the parties in a dispute or conflict to reach at a decision by agreement or facilitates in arriving at a solution to the problem between the party to the dispute. • Alternative dispute resolution is a step towards success where judicial system has failed in eliciting facts efficiently. • In Mediation or Conciliation, parties are themselves prodded to take a decision, since they are themselves decision-makers and they are aware of the truth of their position, the obstacle does not exist. • It can preserve and enhance personal and business relationships that might otherwise be damaged by the adversarial process. • Distinct advantages of alternative dispute redressal methods over traditional Court proceedings are its procedural flexibility. • It is felt that a reliable and responsive alternative dispute resolution system is essential for rapidly developing countries like India. • While business disputes need speedy resolution, litigation is the least favoured method for that. • The Indian judicial system is marred by delays because of which businesses suffer as disputes are not resolved in a rea-

www.amritaias.com | [email protected] | +91 85890 60000 94

sonable time period. • Therefore, need for alternative dispute resolution processes like negotiation, mediation conciliation and arbitration is felt from time to time. • It was an attempt made by the legislators and judiciary alike to achieve the “Constitutional goal” of achieving fair Justice. • Alternative dispute resolution is less expensive, less time consuming, free from technicalities and provide a win – win situation for the concerning parties.

Various ADR methods • Arbitration:Arbitration is the process of hearing and determin- ing of a dispute between parties by persons chosen or agreed to by them. The object of arbitration is to obtain the fair resolution of disputes by an impartial tribunal without unnecessary delay and expense. • Conciliation:Conciliation is the process of facilitating an am- icable settlement between the parties. Unlike the Arbitration there is no determination of a dispute. There need not be a prior agreement and it cannot be forced on a party not intend- ing for conciliation. The proceedings relating to Conciliation are dealt under sections 61 to 81 of Arbitration and Conciliation Act, 1996. • Mediation: Mediation aims to assist two (or more) disputants in reaching an agreement. The parties themselves determine the conditions of any settlements reached— rather than ac- cepting something imposed by a third party.

Disadvantage of ADR • Some of the disadvantages that are found on the methods of alternative methods of dispute resolution are that, the arbitrators is not subject to overturn on appeal may be more likely to rule according to their personal ideals. • Large corporations may exert inappropriate influence in consumer disputes, pressuring arbitrators to decide in their favour or lose future business. • The burden of paying remuneration for the arbitrators is upon

www.amritaias.com | [email protected] | +91 85890 60000 95

the parties to the dispute, which may sometime be felt as a burden by the disputants.

Acts and Constitutional perspectives of ADR • Alternative Dispute Resolution in India was founded on the Constitutional basis of Articles 14 and 21 which deal with Equality before Law and Right to life and personal liberty respectively. • ADR also tries to achieve the Directive Principle of State Policy relating to Equal justice and Free Legal Aid as laid down under Article 39-A of the Constitution. • The Acts which deal with Alternative Dispute Resolution are Arbitration and Conciliation Act, 1996 and the Legal Services Authorities Act, 1987. • Section 89 of the Civil Procedure Code, 1908 makes it possible for Arbitration proceedings to take place in accordance with the Acts stated above.

Conclusion Alternative dispute Resolution methods are being increasingly acknowledged in the field of law and commercial sectors both at National - 18 - and International levels. Its diverse methods can help the parties to resolve their disputes at their own terms cheaply and expeditiously. Alternative dispute Resolution techniques are in addition to the Courts in character. Alternative dispute Resolution techniques can be used in almost all conten- tious matters, which are capable of being resolved, under law, by agreement between the parties. Alternative dispute Resolution techniques can be employed in several categories of disputes, especially civil, commercial, industrial and family disputes. ADR offers to resolve matters of liti- gants, whether in business causes or otherwise, who are not able to start any process of negotiation and reach any settlement.

#Practice Question 1. Examine the need of alternative Dispute Mechanism in India. (150 words)

www.amritaias.com | [email protected] | +91 85890 60000 96

15 RCEP AND CHALLNGES FOR INDIA [GS-II]

Context • The negotiations on the Regional Comprehensive Economic Partnership, among 16 Asian and Pacific Ocean countries, have entered a decisive phase. • Most potential member-countries of the grouping would like to see a “substantive agreement” on the trade deal by the end of this year.

Background of RCEP: • Countries in East Asia region have thriving trade and economic relations with each other through free trade agreements. • The Association of Southeast Asian Nations (ASEAN) has free trade agreements with six partners namely People’s Republic of China, Republic of Korea, Japan, India as well as Australia and New Zealand. • In order to broaden and deepen the engagement among parties and to enhance parties’ participation in economic development of the region, the leaders of 16 participating countries established the Regional Comprehensive Economic Partner- ship (RCEP). • The RCEP was built upon the existing ASEAN+1 FTAs with the spirit to strengthen economic linkages and to enhance trade and investment related activities as well as to contribute to mi- nimising development gap among the parties. • At a meeting in Singapore countries which still have issues with the outline of the agreements reached so far, may be told politely to step aside and allow a smaller group to go ahead with finalising the RCEP.

www.amritaias.com | [email protected] | +91 85890 60000 97

Present Context: • India is among the countries that will have to take a call at this point. • Negotiations on the Regional Comprehensive Economic Part- nership (RCEP), among 16 Asian and Pacific Ocean countries, have entered a decisive phase, and it would like to see a “substantive agreement” on the trade deal by the end of this year. • Countries of the grouping comprise the 10 ASEAN members and their Free Trade Agreement partners, Australia, China, In- dia, Japan, New Zealand and Republic of Korea. • At a meeting in Singapore, countries which still have issues with the outline of the agreements reached so far may be told politely to step aside and allow a smaller group to go ahead with finalising the RCEP, with the option to join it at a later date. • India is among the countries that will have to take a call at this point considering the seriousness of the situation.

India’s Concerns • The trade deficit of India with its RCEP partners is rising. • Similarly, there are differences about the extent of trade liber- alization. • Greater access to Chinese goods may have impact on the Indi- an manufacturing sector. • India has got massive trade deficit with China. • China want more commodities and higher tariff cuts which will affects Indian manufacturing sector and initiatives like make in India. • Under these circumstances, India proposed differential market access strategy for China. • There are demands by other RCEP countries for lowering cus- toms duties on a number of products and greater access to the market than India has been willing to provide.

www.amritaias.com | [email protected] | +91 85890 60000 98

• More developed countries such as Australia and Singapore are unwilling to accommodate India’s demands to liberalise their services regime and allow freer mobility of Indian workers. • Some of the RCEP countries, including India, are headed for elections next year, a point where governments traditionally turn protectionist. • Under the ambit of RCEP, countries like China, South Korea and Japan are manufacturing powerhouses, and Australia and New Zealand have strengths in processed foods, wine, and dairy products, while ASEAN has comparative advantages in plantations, electronics and auto-components. • Therefore sectors of India such as plantations, automobiles, textiles, pharmaceuticals, and engineering goods would be im- pacted negatively. • The grouping envisages regional economic integration, leading to the creation of the largest regional trading bloc in the world, accounting for nearly 45% of the world’s population with a combined gross domestic product of $21.3 trillion. • Within the RCEP, India has existing FTAs in merchandise goods with ASEAN, South Korea and Japan. • With all the three it has witnessed a higher trade deficit after signing the FTA. • Post-FTA, bilateral trade volumes did increase, but imports from partner countries have increased at a faster pace than India’s exports with partners. • The only bright spot has been Sri Lanka and Singapore, where India has been successful in achieving a positive trade balance.

RCEP prospects for India • India also needs to introspect as to what it can get from negotiating the proposed RCEP that it has not already obtained from prevailing trade agreements. • While consumers would benefit from FTAs, the Indian manufacturing sector which remains relatively uncompetitive vis-à-

www.amritaias.com | [email protected] | +91 85890 60000 99

vis the RCEP countries, would be at a disadvantage. • RCEP should not convert India into a dump yard for cheap imports from the Asia-Pacific, particularly China. • Sanitary & phytosanitary issues and technical barriers to trade measures are the most frequently used against Indian exports. Thus the non-tariff barriers in RCEP countries should be nego- tiated transparently before negotiating market access. • RCEP has the East Asian economies as partners, who have thrived on export-led growth model, unlike India whose domestic economy is its strength. Therefore India should choose a model that will complement this setup. • India has achieved significant success in services, and hence should seek greater liberalisation of trade in services, including pushing for greater access for its professionals in these markets.

Way Forward: • At a time when the U.S. has broken from the global concord on multilateral trade agreements, an Indian walkout would en- danger the united message that RCEP countries, which represent 40% of the global GDP, would wish to send out. • It would also be a sharp departure from India’s “Act East” slo- gan and its extended outreach to ASEAN. • RCEP has the potential to deliver significant opportunities for businesses in the East Asia region, given the fact that the 16 RCEP participating countries account for almost half of the world’s population; contribute about 40 per cent of global GDP and over a quarter of world exports. • RCEP will provide a framework aimed at lowering trade barriers and securing improved market access for goods and services for businesses in the region. • Despite these concerns, the government must take into account the deeper strategic pitfalls of either slowing down India’s RCEP engagement or walking out of the talks at this stage.

www.amritaias.com | [email protected] | +91 85890 60000 100

• Doing so would cut India out of the rule-making process for the RCEP and give China further space in the regional trade and security architecture. • It would also be a sharp departure from India’s “Act East” slo- gan and its extended outreach to ASEAN.

Conclusion: • Government must take into account the deeper strategic pitfalls of either slowing down India’s RCEP engagement or walking out of the talks at this stage resulted in the power to cut India out of the rules-making process for the RCEP and give China further space in the regional trade and security architecture. • RCEP recognises the importance of being inclusive, especially to enable SMEs leverage on the agreement and cope with challenges arising from globalisation and trade liberalisation. • SMEs (including micro-enterprises) make up more than 90% of business establishments across all RCEP participating countries and are important to every country’s endogenous development of their respective economy. • At the same time, RCEP is committed to provide fair regional economic policies that mutually benefit both ASEAN and its FTA partners.

www.amritaias.com | [email protected] | +91 85890 60000 101

DIGITAL PAYMENT ECOSYSTEM AND ITS 16 PROBLEMS [GS-II & III]

Context • National Payments Corporation of India (NPCI) has launched UPI 2.0, an upgraded and renewed version of Unified Payments Interface (UPI).

New features: • The latest edition has four new features to make it attractive and safer for users. • These new features will allow users to link their overdraft account to UPI, creation of one-time mandates and pre-authorisation of transactions for payment at later date and checking the invoice sent by merchant prior to making payment.

What is UPI ? • The Unified Payments Interface (UPI) is a system developed by the NPCI and the RBI to aid instant transfer of money using a cashless system. • Using UPI services, one just requires a smart phone and a banking app to send and receive money instantly or to pay a merchant for retail purchase. • In the long run, UPI is likely to replace the current NEFT, RTGS, and IMPS systems as they exist today.

The UPI ecosystem functions with three key players: • Payment service providers (PSPs) to provide the interface to the payer and the payee. Unlike wallets, the payer and the payee can use two different PSPs. • Banks to provide the underlying accounts. In some cases, the bank and the PSP may be the same.

www.amritaias.com | [email protected] | +91 85890 60000 102

• NPCI to act as the central switch by ensuring VPA resolution, effecting credit and debit transactions through IMPS.

How does it work? • UPI, built on IMPS, allows a payment directly and immediately from bank account. There is no need to pre-load money in wallets. • UPI also allows payments to different merchants without the hassle of typing one’s card details or net-banking password.

Government measures for digital economy • JAM trinity coupled with a fully online goods and services tax (GST) system changes and fast-tracking India’s digitisation and, in turn, bringing about rising financial access and rapid formalisation of the India economy. • Digital transactions and GST leave a data footprint that lenders can use. This will allow formal lenders to assess cash flows of smaller borrowers and, hence, price loans better. • Electronic development fund: The fund will be set up to support the manufacturing of electronics products that would help create new jobs and reduce import. The funds will promote innovation, research and product development to create a resource pool within the country. • Bharat Interface for Money(BHIM app), is a digital payments solution app based on the Unified Payments Interface (UPI) from the National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments systems in India.

Government regulations for digital economy • Information Technology Rules (2011) that limits cross-border transfer of sensitive personal data. • The National Data Sharing and Accessibility Policy (2012) which requires government data be stored in India, particularly for cloud providers. • The Companies (Accounts) Rules (2014) which requires back-

www.amritaias.com | [email protected] | +91 85890 60000 103

ups of financial information, if stored overseas, to be stored in India. • The National Telecom M2M roadmap (2015) which requires gateways and app servers that serve Indian customers to be located in India.

Need and benefits of digital economy • The government has projected that Indian digital economy will become USD 1 trillion by 2022 from around USD 450 billion digital economy at present. • It was also projected that the digital economy will generate 30 million employment opportunities by 2024-25. • The ministry has identified digital payments, Make In India, Start-Up India, Skill India among the key drivers of the digital economy. • Digital skilling has a lot of potential as India has a rich talent pool that can be used to meet global demand in emerging technologies like artificial intelligence. • Removal of Black Economy: When the transactions are made digitally, they can be easily monitored. • Increase in Revenues: This is one of the most obvious and common benefits of the digital economy. • Empowerment to People: One of the biggest advantages of moving towards digital economy is that it gives an empowerment to the citizens. • Facilitate the improvements in e-governance: The quicker, safer, and more efficient alternative to traditional governance, e-governance will be the ultimate outcome of the digital economy. • Creation of new jobs: The digital economy has a lot of potentials to enhance job opportunities in new markets as well as increasing employment opportunities in some of the existing occupations in the government.

www.amritaias.com | [email protected] | +91 85890 60000 104

Problems of digital payments • Problems related to cyber security. • Weak regulatory system for digital transactions and its applications. • Lack of financial inclusion in access to services. • Tendency to continue cash dependency as a medium of transactions. • Dormant accounts and associated issues. • Over the counter cash use at financial institutions discourage the digital transactions. • No robust digital infrastructure for digital transactions. • Low level digital literacy among poor people. • General apprehension about safety of money.

Solutions to the digital payments • Strong cyber security system. • Enhancing rules and legislations to support the initiatives of digital payments. • More customer service points to increase the access of services. • Encourage the point of sail machine for better utilisation of digital services. • Enhances uses of banking service correspondent in rural area. • Reduce transaction cost through new innovation. • Build user-friendly application. • Advocacy programmes to create awareness and the mindset of people towards digital payments. • Encourage private sector participation. • Trust deficit can be solved by improved security for transactions and best digital infrastructure.

www.amritaias.com | [email protected] | +91 85890 60000 105

• Build strong regulatory system.

Infrastructural issues in Indian digital economy • The mobile phone will be the predominant mode of transitioning to the digital economy in India. But India’s inability to meet the rising demand for network capacity will place severe constraints on the move to and growth of the digital economy. • The constraining factors are the lack of sufficient spectrum available to mobile use, which is must for transitioning to the digital economy through mobile phones. • As per the Cellular Operators Association of India report, operators in India possess significantly smaller amounts of spectrum compared to international standards. • Operators in India possess spectrum of approximately 13 mhz on average, which is very low compared to other Asian countries such as Bangladesh (37.4 mhz) and Malaysia (75 mhz). • In India the problem is not scarcity of spectrum scarce, but also available spectrum is fragmented, overpriced and inflexi- ble. • The current push to digital transactions on account of demonetisation has meant increased congestion on a limited spectrum capacity.

Suggestions for improvements • Government must allocate more spectrums at affordable price to deploy more spectrums for actual use by telecom subscrib- ers, which in turn will push cashless economy goal. • To realise the goals of cashless/digital economy there is need to build greater digital infrastructure, which is vital considering the current digital infrastructure of India.

Conclusion A move towards cashless economy has multi-faceted benefits for any economy. But push towards digital economy calls for building greater digital infrastructure. Hence government should ad-

www.amritaias.com | [email protected] | +91 85890 60000 106 dress all the issues related to digital infrastructure to realise the benefits of digital economy.

#Practice question Digital India remains a distant dream as far as the digital divide exists. Critically analyse (200 words)

www.amritaias.com | [email protected] | +91 85890 60000 107

IMPACT OF THE FALLING RUPEE ON 17 ECONOMY [GS- II & III]

Context • With the rupee recently weakening past `70 to a dollar and hovering about that level since, concerns over the impact of the devaluation on economic indicators are intensifying.

Indian Rupee getting cheaper • The Spike in oil prices has pulled down the rupee, by pushing up dollar demand. • Turkish currency turmoil: The Indian currency had plunged by Rs 1.08, or 1.57 per cent, to a record low of 69.91 against the US currency amid fears that Turkish currency turmoil could turn out into global financial crisis. • Global Trade war fears triggered by the US and China’s retalia- tory import tariffs have also weakened the Rupee. • The Chinese Yuan has fallen sharply in the last few sessions. This also has triggered a dollar flight from many emerging economies. The Spurt in dollar outflow has pulled down most Asian currencies, including the rupee.

Impact on inflation • With rupee falling, country’s imports become more expensive and exports cheaper. The reason is simple. • It takes more rupees to pay for the same quantum of imports and fewer dollars for a buyer to pay for the same quantity of exports. • More expensive imports are likely to drive inflation upward, especially in India where input products constitute a large part of our imports.

www.amritaias.com | [email protected] | +91 85890 60000 108

• In addition, a depreciating rupee also impacts the oil import bill since it costs more rupees per barrel of oil, which plays its own part in pushing inflation up.

Effects on GDP growth • On the one hand, costlier inputs and the subsequent increase in the prices of finished goods should have a positive impact on GDP. • But the consequent decrease in demand due to higher prices could nullify this. • A depreciating rupee certainly affects the exports and imports, since exports are likely to receive a boost while imports could flag somewhat. • It remains to be seen what impact a reduction in household consumption would have on demand, especially when the fes- tive season is nearing.

Effects on individuals • A depreciating rupee means higher prices of goods and services, costlier petrol and trips abroad turning more expensive. • On the flip side, the domestic tourism could grow as more tourists visit India since their currency now buys more here. • In the medium term, export-oriented industries may also create more jobs.

NPA • According to RBI, terms loans on which interest or instalment of principal remain overdue for a period of more than 90 days from the end of a particular quarter is called a Non-performing Asset. • Increasing percentage of NPA to the total deposits. • Stressed assets and asset reconstruction companies are performing below expected mark. • The global situation of stressed assets shows that Italy ranked

www.amritaias.com | [email protected] | +91 85890 60000 109

number one with 16%of NPA to its GDP followed by India with 9.6% about half of the 2017-18 annual budget. • Increasing NPAs with public sector banks strain the public finance which is already in stress. • In order to cope with the NPA, banks started with higher services charges, minimum required deposits etc. • 5 sectors Textile, aviation, mining, Infrastructure contributes to most of the NPA, since most of the loan given in these sector are by PSB, They account for most of the NPA. • However, in terms of Agriculture / Farm Loans; the NPA is defined as under- • “If the loan (installment/interest) is not paid for 2 crop seasons for short duration crop agriculture loans such as paddy, Jowar, Bajra etc., it would be termed as a NPA. For Long Duration Crops, the above would be 1 Crop season from the due date.”

Reasons for hike in NPA • International factors »» Failures, non payment over dues in other countries, recession in other countries, externalization problems, adverse exchange rates etc. »» Fall in global demand which cause damage to the export based industries and their debts to the banks. »» High import coast on the raw material needed for industries due to weakening of rupee. • Domestic factors »» GDP slowdown -Between early 2000’s and 2008 Indi- an economy were in the boom phase. During this period Banks especially Public sector banks lent extensively to corporate. »» Relaxed lending norms especially for corporate honchos when their financial status and credit rating is not ana- lyzed properly.

www.amritaias.com | [email protected] | +91 85890 60000 110

»» Protected environment of previous years ensured that banks never needed to develop sophisticated treasury operations and Asset Liability Management skills. »» Financial policies like demonetisation and implementation of GST. »» The legal impediments and time consuming nature of asset disposal proposal. »» Postponement of problem by banks in order to show higher earnings. »» Manipulation of debtors using political influence and allocation of new loans for entities with less financial capacity to repay them. »» Scarcity of raw material, power and other resources. »» The directed loans system under in which commercial banks are required a prescribed percentage of their credit (40%) to priority sectors. »» A combination of directed lending and social banking relegated profitability and competitiveness to the background. »» Shortage of raw material, raw material/input price escalation, power shortage, industrial recession, excess capacity, natural calamities like floods, accidents. »» The huge amounts of loan granted under poverty alleviation schemes were totally unrecoverable by banks due to political manipulation, misuse of funds and non-reliability of target audience of these sections. »» Credit allocation became ‘Loan Melas’, loan proposal eval- uations were slack and as a result repayment was very poor. »» Massive waivers of farm and commercial loans have caused damage to the balance sheet of public sector banks. »» Banks did not conducted adequate contingency planning,

www.amritaias.com | [email protected] | +91 85890 60000 111

especially for mitigating project risk. • Internal matters of banks »» Funds borrowed for a particular purpose but not use for the said purpose. »» Project not completed in time. »» Poor recovery of receivables. »» Excess capacities created on non-economic costs. »» In-ability of the corporate to raise capital through the issue of equity or other debt instrument from capital markets. »» Business failures. »» Diversion of funds for expansion\modernization\setting up new projects\ helping or promoting sister concerns. »» Wilful defaults, siphoning of funds, fraud, disputes, management disputes, miss-appropriation etc. »» Deficiencies on the part of the banks viz. in credit appraisal, monitoring and follow-ups, delay in settlement of payments\ subsidiaries by government bodies etc.

Steps taken to curb NPA • Government has launched ‘Mission Indradhanush’ to make the working of public sector bank more transparent and profes- sional in order to curb the menace of NPA in future. • Government has also proposed to introduce Insolvency and Bankruptcy code. • RBI introduced number of measures in last few years which include tightening the Corporate Debt Restructuring (CDR) mechanism, setting up a Joint Lenders’ Forum, prodding banks to disclose the real picture of bad loans etc. • RBI taken prompt corrective measures on banks with 12% NPA or above. • SARFARESI act (Securitisation and reconstruction of financial

www.amritaias.com | [email protected] | +91 85890 60000 112

asset and enforcement of security interest). • DBT-Debt Recovery Tribunals • FRDI- Financial Resolution And Deposit Insurance

Way forward • Short term measures »» Government should establish Asset Reconstruction Com- pany (ARC) with equity contribution from the government and the Reserve Bank of India (RBI). »» Review of NPA’S/Restructured advances- We need to assess the viability case by case. »» The Banking Regulation Act may be amended to give RBI more powers to monitor bank accounts of big defaulters. »» RBI’s loan restructuring schemes such as corporate debt restructuring (CDR), formation of joint lenders’ forum (JLF), flexible structuring for long-term project loans to infrastructure (or 5/25 Scheme), strategic debt restructuring (SDR) scheme and sustainable structuring of stressed assets (S4A) to check the menace of NPAs. »» Given the gravity of the problem, the government may ask banks to go for more “hair cut” or write offs for NPAs. • Long-term measures »» Improving credit risk management- This includes credit appraisal, credit monitoring and efficient system of fixing accountability and analyzing trends in group leverage to which the borrowing firm belongs to. »» Sources/structure of equity capital-Banks need to see that promoter’s contribution is funded through equity and not debt. »» Banks should conduct necessary sensitivity analysis and contingency planning while appraising the projects and it should built adequate safeguards against such external factors.

www.amritaias.com | [email protected] | +91 85890 60000 113

»» Strengthen credit monitoring-Develop an early warning mechanism and comprehensive MIS (Management Infor- mation System) can play an important role in it. »» Enforce accountability- Till now lower ring officials considered accountable even though loaning decisions are taken at higher level. »» Restructured accounts should treated as non-performing and technical write offs where Banks remove NPA’S from their balance sheets permanently should be dispensed with. »» Address corporate governance issues in PSB. This includes explicit fit and proper criteria for appointment of top executives and instituting system of an open market wide search for Chairman.

Conclusion A strong banking sector is important for a flourishing economy. The failure of the banking sector may have an adverse impact on other sectors. Selection of right borrowers, viable economic activity, adequate finance and timely disbursement, correct end use of funds and timely recovery of loans is absolutely necessary pre conditions for preventing or minimizing the incidence of new NPAs.

#Practice question Non Performing Assets are like black hole which engulf the financial system into it and destroy it. Critically evaluate the NPA issues in India in the light of recent measures taken by RBI to curb this menace.(250 words)

www.amritaias.com | [email protected] | +91 85890 60000 114

CAG’ S REPORTS ON RAILWAYS 18 [GS-II & GS-III]

Context • CAG observation on modernization of railways had brought the focus back on this key priority area of government as highlighted in the Budget.

Indian railway • The Indian Railways (IR) is the fourth-largest railway network in the world – in terms of size, its total track length being 1,21,407 kilometre. • It operates more than 13,000 passenger trains on a daily basis. • It is currently the 8th-largest employer in the world, with more than 1.3 million employees but trains running late have been a common scenario across the country. • It is the continual endeavour of Indian Railways (IR) to take measures for modernisation of railway passenger coaches, strengthening and up gradation of security infrastructure and stations and improvement of catering facilities. • The focus of Railways’ modernisation plans for its stations is mainly on improving the façade and passenger facilities, rather that removing bottlenecks to ensure timely movement of trains. • The latter should be one of the most important parameters to judge the quality of service being provided to the passengers, the Comptroller and Auditor General (CAG) has said in its report tabled in Parliament. • Important activities such as providing platforms with adequate length for easy boarding of long trains, providing adequate facilities for stabling trains and for their maintenance in stations,

www.amritaias.com | [email protected] | +91 85890 60000 115

and adequate yard capacity significantly contribute to timely arrival and departure of trains, the CAG pointed out.

Blockage of lines and its solution • During a review of the existing infrastructure at 15 selected stations, the audit noticed that infrastructure such as platforms; washing pit lines and stabling lines at the stations were not augmented to match the increase in number of trains handled in all these stations. • Non-availability of adequate washing pit lines and stabling lines led to movement of empty trains to other depots for maintenance purposes. This caused blockage of lines. • Longer platforms can solve the problemproblem of blockages in railway lines. • The possibility of further expansion of the stations by adding more platforms needs to be considered before considering green field projects. • The modernisation/ redevelopment of stations should also address infrastructural constraints and works such as construction of additional platforms, stabling and washing pit lines and remodelling of yards should be included in its scope, it recommended. • Indian trains have 24 coaches on an average. Hence to accommodate these longer train rakes, there should be platform of adequate length and adequate facilities of stabling and washing pit lines.

Modernisation coaches and speed: • Large scale proliferation of Linke Hofmann Busch (LHB) coaches. • Improvements in EMU (Electric Multiple Unit) / MEMU (Main- line Electric Multiple Unit) rakes. • Speed of train coaches. • Manufacture of electric train set coaches.

www.amritaias.com | [email protected] | +91 85890 60000 116

• Mid-Life-Rehabilitation (MLR) of coaches. • Model Rake Coaches. • New coaches and train services with better amenities. • Safety and Security of railway passengers. • Safety and security in Railway stations. »» Provision of CCTV cameras has been made over 394 railway stations. »» Installation of CCTV cameras is also under progress over 983 stations with allocation of budget under Nirbhaya Fund. • Railway Protection Force (RPF) Security helpline 182, installed to assist Railway Passengers especially women in distress, is planned to be upgraded by making it automated. • This Information Technology (IT) enabled upgraded system shall make the distress response efficient by introducing features like automated phone call system, acknowledgement through SMS, computerized registration of complaint and further processing, voice recording, monitoring of call attending and optimum call capacity utilization. • To improve the standard of food being provided to passengers, new Catering Policy has been issued on 27th February, 2017. • Indian Railway Catering and Tourism Corporation Limited (IRCTC) has been mandated to carry out the unbundling by creating a distinction primarily between food preparation and food distribution.

Committees related railway • The BibekDebroy Committee (2014) »» Establishment of independent regulator called Railway Regulatory Authority of India (RRAI). »» Railway should be facilitated to have a transition to commercial accounting and international accounting stan-

www.amritaias.com | [email protected] | +91 85890 60000 117

dards. »» Private sector should be allowed into running both freight and passenger trains in competition with Indian railways. »» Streamline recruitment and Human resources management. »» All existing production units whether it is for coaches or locomotives should be placed under a government SPV known as the Indian Railway Manufacturing Company (IRMC). »» Decentralisation should happen at the bottom level duties. »» Railways should partner with State governments in construction of new suburban lines. »» A separate Railway budget should be phased out progres- sively and merged with the General Budget and eventually also integrates the Ministry of Railways with Ministry of Transport. »» An Investment Advisory Committee may be set up, con- sisting of experts, investment bankers and representatives of SEBI, RBI, IDFC and other institutions for raising resources for investment. »» Indian Railways should focus on core activities to efficiently compete with the private sector rather than running a police force, schools, hospitals and production and construction units. • Anil Kakodkar Committee (2011) »» High Level Safety Review Committee was constituted by the Ministry of Railways. »» Recommendations covering various aspects viz. General Safety Matters, Organizational Structure, Empowerment at Working Level, Safety Related Works and Issues, Filling up of vacancies in critical safety categories and Manpower Planning Issues. »» Plugging the shortage of critical Safety Spares, External

www.amritaias.com | [email protected] | +91 85890 60000 118

Interferences – Removal of Encroachment and Sabotage, up gradation of Signalling, Telecommunication and Train Protection System, up gradation of Rolling Stock, Track, Bridges, Elimination of Level Crossings. »» Human Resource Development with emphasis on Educa- tion and Training Institutes on Indian Railways, Eco-system and Safety Architectures on Indian Railways. • Arvind Panagariya Committee »» Committee constituted to fast track the Mumbai- Ahmad- abad high speed rail corridor. »» The committee is tasked to interact with the Japanese counterpart for taking further steps in implementation of Mumbai-Ahmadabad High speed rail corridor.

Important schemes for railway • Avataran »» It is an umbrella program consists of 7 missions such as, »» Mission 25 Tonne - It aims to increase revenue by augmenting carrying capacity. »» Mission Zero Accident - Elimination of unmanned level crossings on broad Gauge in the next 3-4 years and Equipping 100% of the High Density Network with Train Collision Avoidance System (TCAS). »» Mission PACE (Procurement and Consumption Efficiency) - It aims to improve procurement and consumption practices to improve the quality of goods and services. »» Mission Raftaar - It targets doubling of average speeds of freights trains and increasing the average speed ofsuper- fast mail/express trains by 25 kmph in the next 5 years. »» Mission Hundred - Under this mission, at least a hundred sidings will be commissioned in the next 2 years.Siding refers to low-speed track section / track branch distinct from a running line.

www.amritaias.com | [email protected] | +91 85890 60000 119

»» Mission beyond book-keeping - It will establish an accounting system where outcomes can be tracked to inputs. »» Mission Capacity Utilisation - It proposes to prepare a blueprint for making full use of the huge newcapacity that will be created through two Dedicated Freight Corridors between Delhi-Mumbai and Delhi-Kolkata scheduled to be commissioned by 2019. • Rail safety fund »» The new rail safety fund called - Rashtriya Rail Sanraksha- Kosh to be utilized for track improvement, bridge rehabilitation work, improved inspection work etc. »» Further, it is a non-lapsable fund created by Ministry of Fi- nance, since the union and railway budgets will be merged for the first time. »» RSF receives fund from this year budget allocation and also from the Central Road Fund. »» The Central Road Fund is collected by levying Cess on diesel and petrol for safety-related work. »» The Rail Safety Fund was setup based on the recommen- dation of a committee headed by Anil Kakodkar, former chairman of Atomic Energy Commission Chairman.

Proposed Solutions by CAG • It suggested that the modernisation/redevelopment of stations should address infrastructural constraints and works such as construction of additional platforms, stabling and washing pit lines, remodelling of yards etc. should also be included in the scope of modernisation/redevelopment of stations. • The CAG report states that all Zonal Railways need to prepare comprehensive Master Plans for stations with heavy passenger traffic, identify constraints of station line capacity and devise measures to be taken to address these constraints on priority. • It is also desirable to increase the length of all the platforms

www.amritaias.com | [email protected] | +91 85890 60000 120

at major stations so as to accommodate trains of 24 or more coaches. • It is also desirable that railways need to create additional platforms/ pit lines of adequate length where the number of platforms is not adequate for handling the trains originating/ ter- minating/ passing by the station.

#Practice Question Enumerate the problems and prospects of railway as a means of transportation in India. (250 words)

www.amritaias.com | [email protected] | +91 85890 60000 121

19 NATIONAL WATER WAYS PROJECTS [GS-II & GS-III]

Context • 20 National Waterways out of 111 are in North East- ern Region (NER). NW-2 (river Brahmaputra) from Dhubri to Sadiya (891 km) is operational for transport and cruise and cargo vessels are moving on it. • India has an extensive network of inland waterways in the form of rivers, canals, backwaters and creeks. • The Maritime Agenda of India 2020 identifies inland waterways as a means to enhance connectivity to ports, develop IWT infrastructure and a host of other issues. • There are 111 national water ways notifies across the country.

Inland Waterways • Inland waterways are system of navigable inland bodies of water like rivers, creek, back waters, lakes, and large water reservoirs. • India has about 14,500 km of navigable waterways which comprise of rivers, canals, backwaters, creeks, etc.

National Waterways Act: • The National Waterways Act 2016 declared 106 new waterways as national waterways (NWs) in addition to the existing five NW. • The Inland Waterways Authority of India (IWAI) has estimated that approximately Rs 25,000 crore would be required for development of identified projects on NWs till 2022-23.

www.amritaias.com | [email protected] | +91 85890 60000 122

Inland Waterways Authority of India • The Inland Waterways Authority of India (IWAI) came into ex- istence on 27th October 1986. • The objectives of IWAI focus on development and regulation of inland waterways for shipping and navigation. • The Authority primarily undertakes projects for development and maintenance of IWT infrastructure on national waterways through grant received from Ministry of Shipping. • The head office of the Authority is at Noida. • The Authority also has its regional offices at Patna, Kolkata, Guwahati and Kochi and sub-offices at Allahabad, Varanasi, Bhaglapur, Farakka, Hemnagar, Dibrugarh (Assam), Kollam, Bhubaneswar (Odisa) and Vijayawada (A.P.).

Disadvantages of inland water transport • In most of the rivers of India, floods are caused during rainy season when water current is so torrential that it becomes difficult to ply boats. • Rivers remain dry during the summer and whatever water becomes available in rivers, it is used for supply of water to the vast canal system for irrigation, there remains no water for navigation during the summer season. • Rivers of the South India flow in rocky areas, hence they are not fit for plying boats because there are waterfalls in the way. • As compared to boats, railways are quicker and safer means of transport. • On banks of most of the rivers, thick layer of sand is deposited. • Almost all rivers fall from shallow and sandy deltas. Hence, ships cannot sail from sea shores to inland parts.

Advantages of the inland water transport • Inland navigation has been considered as the cheapest means of transport among the methods of transport. Initial invest-

www.amritaias.com | [email protected] | +91 85890 60000 123

ment on river services as well as expenditure on their maintenance is much lesser as compared to road and rail transport. • For more load and long journey, transport through waterways is cheaper than rail and road transport. • Supplementary mode: Reduces pressure on road and rail and Reduces congestion and accidents on road. • It is considered as the most useful method from the point of view of energy saving. One horse power can carry 4,000 kilogram load in water whereas, it can carry 150 kilogram and 500 kilogram load by road and rail respectively. • Bring development to the areas near by the inland water port • Address the regional disparity in development. • Mobility across various places has become easier and conve- nient. • Increase the people to people contact between regions with in the country. • IWT can act as a tool for integration of the various parts of the country. • Water transport is most useful for heavy loads. • In north-east India, road and rail transport is blocked during rains. It is also difficult to construct roads or railways in these areas. Hence, water transport is more suitable in such region. • There is lesser pollution in water transport. Example: In Viet- nam, the transformation of transport in the rice supply chain was projected to considerably reduce the amount of carbon emissions in the country.

Why it is not taken up in India yet • Despite these large and beneficial aspects of the use of inland waterways, the usage had only increased to 0.5% by 2016. • The lukewarm response is due to two reasons. One is the cost of loading and unloading freight and other is narrow difference between freight costs estimated between various modes of

www.amritaias.com | [email protected] | +91 85890 60000 124

transport. (Rs 1 ($0.0165) per tonne per km by water, railways is Rs 1.4 ($0.0219) per and By road at Rs 2.5 ($0.0401) • Investment is very limited in this sector or lack of financial resources. • Private sector has very limited involvement in operating water ways. • The supporting industries of shipping and logistics are yet to pick up. • There are not many industrial units on the riverside which affect the growth of this mode of transport. • Lack of cargo availability could possibly distance private players away from this scheme. • Another aspect that raises costs is that travel by river is much slower than by rail or road, and therefore there is an opportunity cost of the time spent. • To maintain the water levels in the river to the degree needed for them to function as inland waterways, the water use for other activities like irrigation and drinking water will be cur- tailed. • Dredging may also impact aquifers along the river, damaging the ability of water to percolate underground. • On top of all this, the removal of riverbed material in creeks or rivers near the sea may allow the ingress of saline water, damaging the ecosystem in the region. • • As water is an issue that is managed by Indian states rather than the Centre, the work necessary to manage waterways will need extensive Centre-state cooperation, and will have to respect local sensitivities. • States are running deficit financing and find it difficult to finance these projects.

Probable solutions to the development of the sector • The involvement of private and public sector enterprises

www.amritaias.com | [email protected] | +91 85890 60000 125

would be a catalyst for growth. • PPP mode as well as attracting private finance could be a solution to the finance crunch in the sector. • For instance Jindal ITF bagging the project for the movement of 3 million metric tonnes of imported coal to NTPCs Farak- ka power plant through the national waterways-I (NW1) could well signify the beginning of the entry of the private sector.

Conclusion • Country like China has developed inland waterways effectively to integrate the economic development with the far reaching rural areas. • IWT needs to be promoted as a reliable mode of transport. • There is enough space for all modes of transport to exist and function. • The integration of inland waterways with the various links in the supply chains is required. • The inner ports could well be the next big opportunities in In- dia. • India can join with Bangladesh as a Protocol on Inland Water Transit and Trade has been in place between the two countries since 1972. • Building on an existing platform, in an area that already has intensive inland water transport, and is relatively water rich, would be much easier than starting a new.

www.amritaias.com | [email protected] | +91 85890 60000 126

20 E-GOVERNANCE INITIATIVES [GS-II & GS-IV]

Context • Digital India might be the biggest push towards inclusive e-governance in India. • Maharashtra was the first state to have a dedicated e-governance policy. • Many years ago, in a bid to evangelise the use of the Internet in India, a global technology giant decided to ‘seed’ some non-traditional locations in India with Internet access-enabled devices and free Wi-Fi. Such as schools in low-income areas, and slums. • Prior to 2006 when the Government of India formally launched its National e-Governance Plan (NeGP) some departments of Government of India as well as state governments had initiated steps to adopt e-governance. • NeGP aims to make all government services available to citizens via electronic media. • NeGP has been formulated by the Department of Electronics and Information Technology (DeitY) and Department of Administrative Reforms and Public Grievances (DARPG).

E- Governance models • Broadcasting Model: »» In this as name implies information is broadcast to wider public domain through use of ICT and convergent media. »» This models strength is its focus on spreading information to wider mass and through this citizen will be able to

www.amritaias.com | [email protected] | +91 85890 60000 127

judge functioning of existing government mechanism »» It also helps citizens forming informed decision. »» For instance, making available about information on schemes. • The Critical flow Model: »» Information of critical value is channelized to targeted section into the public domain through use of ICT. »» Targeted audience may include media, affected parties, opposition parties, judicial bench, independent investiga- tors or the general public. »» The model is more focused in terms of its information content and intended users. »» It exposes weakest aspects of governance and decision making process inform people about failure in specific cases and maladministration. »» It builds pressure on concerned government organizations / institutions and individuals to take into cognizance the opinions and interest of masses in decision making mechanism.Example Transparency International. • Comparative Analysis Model: »» Comparative Analysis model continuously incorporates best practices in the area of governance and uses them as benchmark to evaluate other governance practices. »» It also uses the result to advocate positive changes or influence public opinion on these governance practices. »» Comparison could be made over a time scale to get a snapshot of the past and present situation or could be used to compare the effectiveness of an intervention by comparing two similar situations. • E-Advocacy Model: »» It is based on setting up a planned, directed flow of information to build strong virtual allies to complement action

www.amritaias.com | [email protected] | +91 85890 60000 128

in the real situation. »» It builds the momentum of real world processes by adding the opinions and concerns expressed by virtual communities. »» Virtual communities come together because they share similar view points or idea or concerns or issues and these communities in turn join together to support real life group activities for concerted action. »» The diversity of the virtual community, and the ideas, expertise and resources accumulated through this virtual form of networking • The Interactive Service Model: »» Interactive model opens government door for direct participation of citizens in governance. »» It also brings grater objectivity and transparency in decision-making processes through use of ICT tools. »» Government services are directly available to its citizen and are done by opening interactive Government to consumer to government (G2C2G) channels.

National e-Governance Plan(NeGP) • A holistic view of e-Governance initiatives across the country, integrating them into a collective vision, a shared cause. • Its objective is to make all Public Services accessible to the common man in his locality, through common service delivery outlets and ensure efficiency, transparency and reliability of such services at affordable costs to realize the basic needs of the common man • National e-Governance Plan has been launched with the aim of improving delivery of Government services to citizens and businesses. • The e-Kranti framework addresses the electronic delivery of services through a portfolio of mission mode projects that cut across several Government Departments.

www.amritaias.com | [email protected] | +91 85890 60000 129

• Thrust areas of e-Kranti outlined in Digital India are technology for Education – e-Education,Health – e-Healthcare, Farmers, Security, Financial Inclusion, Justice, Planning and Cyber Secu- rity. • The E-infrastructures envision for creating State Wide Area Networks (SWAN), State Data Centres (SDC) and Common Service Centres (CSC).

Private services vs Governance: • Nevertheless, the bulk provided genuine and clearly needed services to people who otherwise had to depend on agents and touts for securing access to basic services that they were, at least on paper, legally entitled to. • In fact, such learnings eventually prodded the government to reluctantly push forward with not just e-governance initiatives, but deliver access to e-governance through measures like the ‘e-sevakendras’ which facilitate e-form submissions, e-filings and e-payments for government services. • Unfortunately, while there is much talk of pushing the cause of e-governance in India, actual progress has been slow. • True, the so-called G2C (government to citizen) stack is now well-advanced. • One can access most government service providers electronically to get bills and make payments. With the introduction of the GST network, one can now pay almost all your taxes electronically, file returns, claim refunds, and so on.

UN E-Government Development Survey (EGDI): • The UN E-Government Development Survey or indexis the only global initiative to measure and track how governments are faring on the e-governance front. • According to the UN website, the report “looks at how e-government can facilitate integrated policies and services across the three dimensions of sustainable development”. • With an EGDI index score of 0.5669, India is just above the

www.amritaias.com | [email protected] | +91 85890 60000 130

world average of 0.55. The Asian leader in e-government, South Korea, scored 0.9010 (marginally behind world leader Denmark’s 0.9150). India’s score is also much less than of Iran (0.6083). Even in the SAARC region, Sri Lanka is ahead of In- dia.

E- Governance areas that required improvement: • Build institutional capacity for better delivery over e-platforms. • Create technical infrastructure across India has become a challenge. • Strengthen the legal infrastructure regime to support the growth of e-governance in India. • Build judicial competence in areas of e-governance for better adjudication of related cases. • Voluntary disclosure of information by various governmental agencies and departments could attract people to utilize the e-governance platforms. • Increasing digital literacy and awareness among the poor section of the society is a prerequisite for the successful penetration of the e-governance. • Areas like public health and land records, the progress has stopped with putting up some downloadable forms online. • Many government departments still insist on physical forms and signatures, despite the near universalising of an identity instrument like AADHAAR, which allows simple and fool proof authentication. • India continues to rank a relatively low 96 in the United Na- tion’s e-Government Development Index 2018.

E-participation Index: • However, India does rank very high in one sub-index. It moved up 12 places in the e-Participation Index, from 27 in 2016 to 15 in 2018. • While not as general as the EGDI, the EPI looks at issues like

www.amritaias.com | [email protected] | +91 85890 60000 131

e-information, e-consultation and e-decision making to arrive at a score. • India’s high ranking does signify: »» The government is making more information available online. »» More people are in a position to access that information, and also »» Electronically participate in policy formation and decision-making. »» A good example of this was when the government first mooted its ‘smart cities’ initiative, when citizens were able to actively participate with ideas on what kind of initiatives their city should adopt and how these initiatives should be designed and implemented.

E-governance and poverty alleviation: • Unfortunately, the form of crowd-sourced public planning appears to have been just a flash in the pan. • The reason the UN compiles this index and urges member countries to focus on e-government initiatives is that there is a clear link between greater e-governance and easier public access to government services and a reduction in poverty and inequality. • One of the biggest reasons our poverty alleviation measures have failed to achieve the desired impact (apart from corruption and leakage) is inefficient targeting, and lack of information with the intended beneficiaries about plans and schemes meant to assist them.

Conclusion • As India catapults towards a cashless and digital economy and as human interface between service providers and end users gives way to digital, it becomes imperative to ensure accessibility for inclusion.

www.amritaias.com | [email protected] | +91 85890 60000 132

• Knowledge is power, but access to knowledge is another kind of power. This is where digital can be a great disruptor. • With the India Stack (Aadhaar, UPI, etc. aimed at ensuring presence-less, cashless and paperless service delivery), and the ongoing mobile and broadband revolution, India can become a world leader in e-governance. But it may have to learn some lessons from Iran and South Korea first. • It becomes our collective responsibility to ensure inclusive development, one that engages all stakeholders through a pragmatic and judicious combination of interventions while effectively leveraging technology to ensure truly inclusive and sustainable development.

# Practice question: Governance offers tremendous opportunities for improving de- manddriven service delivery to the underprivileged section of our society. Do you agree that the present initiatives of government are successful in achieving theseobjectives? Discuss.

www.amritaias.com | [email protected] | +91 85890 60000 133

PREVENTION OF CORRUPTION 21 (AMENDMENT) BILL, 2013 [GS-II & GS-IV]

Context • The Rajya Sabha has passed the Prevention of Cor- ruption (Amendment) Bill, 2013. • The present Bill seeks to amend the Prevention of Corruption Act, 1988.

Changes suggested to PC Act, 1988 • Giving bribe has been made as a punishable offence. »» The Bill introduces the offence of ‘giving a bribe’ as a direct offence. »» However, a person who is compelled to give a bribe will not be charged with the offence if he reports the matter to law enforcement authorities within seven days. • Redefining the Criminal misconduct. »» Fraudulent misappropriation of property; and »» Illicit enrichment (such as amassing of assets dispropor- tionate to one’s known sources of income). • Prior approval for investigation alleged to have been committed by a Public Servant. »» Before a police officer conducts any investigation into an offence alleged to have been committed by a public servant, prior approval of the relevant government or compe- tent authority should be taken. »» Such approval would not be necessary in cases which involves the arrest of a person on the spot on a charge of taking a bribe. • Time limit prescribed for the trial of cases.

www.amritaias.com | [email protected] | +91 85890 60000 134

»» As per the Bill, trial by special judge should be completed within two years. »» If not, reasons for the delay must be recorded, for every six months of extension of time obtained. »» However, the total period for completion of trial may not exceed four years.

Need for the amendment: • The amendment to the Prevention of Corruption Act, 1988 was necessitated from the obligation of India to review the existing provisions of the Act so as to bring it in line with the United Nations Convention against Corruption (UNCAC).

United Nations Convention against Corruption (2005) • The United Nations Convention against Corruption is the only legally binding universal anti-corruption instrument. • The Convention’s far-reaching approach and the mandatory character of many of its provisions make it a unique tool for developing a comprehensive response to a global problem. • The vast majority of United Nations Member States are parties to the Convention with 186 parties and 140 signatories. • India is a signatory to this convention. • The Convention covers many different forms of corruption, such as bribery, trading in influence, abuse of functions, and various acts of corruption in the private sector. • The Convention covers five main areas: »» Preventive measures, »» Criminalization and law enforcement, »» International cooperation, »» Asset recovery, »» Technical assistance and information exchange.

Forms of Corruption

www.amritaias.com | [email protected] | +91 85890 60000 135

• Embezzlement: It is theft of resources by people who are put to administer it. • Nepotism: Nepotism is typical favouritism, in which an officer prefers his proper kinfolk and family members. • Conflict of Interest: organisational interest suffers over personal interest. • Favouritism: Favouritism is a highly biased distribution of state resources as a result of natural human tendency to favour someone. • Fraud: Fraud is a financial crime that involves some kind of de- ception, swindle or deceit. • Bribery: This form of corruption is the payment (in money or kind) that is given or taken in a corrupt relationship.

India and corruption • India’s ranking in the annual corruption index, released by Ber- lin-based non-government organisation Transparency Interna- tional (TI), slid to 81 among a group of 180 countries in 2017. • The Corruption Perception Index 2017 also singled out India as one of the “worst offenders” in the Asia-Pacific region.

Causes of corruption • Vast size of population coupled with widespread illiteracy and the poor economic infrastructure lead to endemic corruption in public life. • Emergence of political elitism which believed in self-interest rather than public interest. • Tolerance of people towards corruption and lack of intense public outcry against corruption. • Absence of a strong public forum to oppose corruption allows corrupt to reign over people. • Corruption is caused as well as increased because of the change in the value system and ethical qualities of men who

www.amritaias.com | [email protected] | +91 85890 60000 136

administer. • The old ideals of morality, service and honesty are regarded as an anachronistic. • In a highly inflationary economy, low salaries of government officials compel them to resort to the road of corruption. • Artificial scarcity created by the people with malevolent inten- tions wrecks the fabric of the economy. • Complex laws and procedures alienate common people to ask for any help from government in need of time. • Election funding has become an area for frequent corrupt practices.

Various dimensions of corruption • Corruption has implications on security and law and order. • Corruption led to underdevelopment in economy and intensi- fies economic disparity. • It has its repercussion over social inclusion and gender equality. • Corruption created unviable political climate for young personals to participate in the political system. • It also led to deterioration of environment and biological resources. • Corruption triggered social friction and value changes in the society. • Governance and administration of the country is affected by the proliferation of corrupt practices.

Institutions mechanisms against corruption • Comptroller and Auditor General »» In spite of being an independent organization its impact on corruption has been tangential. »» CAG has no authority to call Government officers/depart-

www.amritaias.com | [email protected] | +91 85890 60000 137

ment for clarification, it can just mention a paragraph in its report of lapses occurred. »» They don’t have authority to sanction. Everything has to go through Public Accounts Committee (PAC). • Central Vigilance Commission (CVC) »» It was setup to check corruption in Central Government organizations. »» Upon receiving complaints CVC can direct vigilance officers or CBI to take up investigation. »» It has neither investigative power, nor its reports are oblig- atory to Government departments. • Central Bureau of Investigation (CBI) »» It has severe shortage of manpower and autonomy. »» Close to 10,000 cases of CBI are pending in court out of which 23% are pending for more than 10 years. »» It needs to take permission from Government to prosecute any officer above Joint Secretary, which generally involves time consuming process reducing steam in investigation. • Judiciary »» Justice delayed is equivalent to Justice Denied. »» With delay in getting justice, the ordinary public has lost hope in Judiciary, so instead of fighting any injustice, we tend to believe corrupt practices are better than going through than following legal rules. The best legal brains in Supreme Court are wasted on unnecessary cases like Bail petitions to politicians.

Key Features of the Acts related to corruption • Indian Penal Code, 1860: »» Section 169 pertains to a public servant unlawfully buying or bidding for property. The public servant shall be pun-

www.amritaias.com | [email protected] | +91 85890 60000 138

ished with imprisonment of up to two years or with fine or both. If the property is purchased, it shall be confiscated. »» Section 409 pertains to criminal breach of trust by a public servant. The public servant shall be punished with life imprisonment or with imprisonment of up to 10 years and a fine. • The Prevention of Corruption Act, 1988 »» In addition to the categories included in the IPC, the definition of “public servant” includes office bearers of cooperative societies receiving financial aid from the government, employees of universities, Public Service Commission and banks. »» If a public servant takes gratification other than his legal remuneration in respect of an official act or to influence public servants is liable to minimum punishment of six months and maximum punishment of five years and fine. »» If a public servant accepts a valuable thing without paying for it or paying inadequately from a person with whom he is involved in a business transaction in his official capacity, he shall be penalized with minimum punishment of six months and maximum punishment of five years and fine. »» It is necessary to obtain prior sanction from the central or state government in order to prosecute a public servant. • The Benami Transactions (Prohibition) Act, 1988 »» The Act prohibits any benami transaction (purchase of property in false name of another person who does not pay for the property) except when a person purchases property in his wife’s or unmarried daughter’s name. »» Any person who enters into a benami transaction shall be punishable with imprisonment of up to three years and/or a fine. »» All properties that are held to be benami can be acquired by a prescribed authority and no money shall be paid for such acquisition.

www.amritaias.com | [email protected] | +91 85890 60000 139

• The Prevention of Money Laundering Act, 2002 »» The Act states that an offence of money laundering has been committed if a person is a party to any process connected with the proceeds of crime and projects such proceeds as untainted property. »» The penalty for committing the offence of money laundering is rigorous imprisonment for three to seven years and a fine of up to Rs 5 lakh. »» The Adjudicating Authority, appointed by the central government, shall decide whether any of the property attached or seized is involved in money laundering. »» An Appellate Tribunal shall hear appeals against the orders of the Adjudicating Authority and any other authority under the Act. »» Process followed to investigate and prosecute corrupt public servants. • If a person is convicted of an offence under the Narcotics Drugs and Psychotropic Substances Act, 1985 the term of imprisonment can extend up to 10 years.

Measures to tackle corruption • Fool-proof laws should be made so that there is no room for discretion for politicians and bureaucrats. • Cooperation of the people has to be obtained for the successful containment corruption. • People should have a right to recall the elected representatives or direct democratic measures at local level may reduce this menace. • Electoral reforms are crucial in mitigating political corruption, like State funding of election expenses. • Responsiveness, accountability and transparency are a must for a clean system. • Bureaucracy, the backbone of good governance, should be

www.amritaias.com | [email protected] | +91 85890 60000 140

made more citizens friendly, accountable, ethical and transparent. • Strengthening whistle blowers protection bill and judicious use of RTI act can also ensure a reduction in corruption. • More number of courts should be opened for speedy & inex- pensive justice so that cases donot linger in courts for years and justice is delivered on time. • Local bodies, Independent agencies of government like Lok- pals, LokAdalats, CVCs and Vigilance Commissions should function effectively. • A new Fundamental Right viz. Right to Information should be introduced, which will empower the citizens to ask for the information they want. • In long-term, anticorruption strategies have to be supported by moral education and the strengthening of the ethical principles underpinning society. • Reinforcing the civic responsibility through positive and negative reinforcements. • Eliminating the opportunity for corruption by changing incentives, by closing off loopholes and eliminating misconceived rules that encourage corrupt behaviour. • Media can play an active role in keeping the issues related to corruption alive in public discourse. • Making CBI more independent can be a right way forward.

World Bank’s strategy to curb corruption • Paying civil servants well • Creating transparency and openness in government spending • Cutting red tape • Replacing regressive and distorting subsidies with targeted cash transfers • Establishing international conventions

www.amritaias.com | [email protected] | +91 85890 60000 141

• Deploying smart technology

Conclusion There is no one panacea to solve corruption, it has to be addressed at all levels from social, economic inequality, empower- ing people, and strengthening existing democratic and investigative institutions. We cannot eliminate corruption; but only reduce the corruption by fixing bugs in existing systems.

www.amritaias.com | [email protected] | +91 85890 60000 142

FOOD PROCESSING RELATED ISSUES. 22 [GS-III]

Context • International Conference on Recent Advances in Food Processing Technology (iCRAFPT) 2018 is being held at Indian Institute of Food Processing Tech- nology, Thanjavur in Tamilnadu. • Theme of the conference is ‘Doubling farmers’ income through food processing’.

Significance of the conference: • This conference will be a valuable and important platform for inspiring international and interdisciplinary exchange at the forefront of food research. • Over the course of three days, internationally renowned speakers will share their research experiences in the areas of advances in food engineering and its industrial applications, food product development, food biotechnology, nano foods.

Important statistics • The Food Processing Industry has emerged as one of the important segment in terms of its contribution to Indian economy, as it contributes 9% and 11% of GDP in Manufacturing and Agriculture sector respectively. • The share of Food Processing Sector in GVA of manufacturing sector was 8.71% and in that of agriculture, forestry and fishing stands at 10.04% in 2015-16. • The number of registered food processing units has increased from 37,450 in 2013-14 to 38,608 in 2014-15. • Investment in Fixed Capital in registered food processing sector has grown from 25.90 USD’ billion in 2013-14 to 29.53 USD’

www.amritaias.com | [email protected] | +91 85890 60000 143

billion in 2014-15, witnessing a growth rate of 14%. • Food Processing Industry stands as one of the major employment intensive industry, constituting 12.77 % of employment generated in all manufacturing factories registered under Fac- tories Act 1948. • The sector makes up for 13% of India’s exports and 6% of total industrial investment. Additionally, the sector is considered as the 13th largest recipient of FDI in India.

Policies and programmes in food processing sector • 100% FDI is permitted under the automatic route in food processing industries. • 100% FDI is allowed through government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India. • Food processing is recognised as a priority sector in the new manufacturing policy in 2011. • Reserve Bank of India has classified loan to food & agro-based processing units and Cold Chain under agriculture activities for Priority Sector Lending (PSL) subject to aggregate sanctioned limit of USD 15.38 million per borrower from the banking system. • Government has set up a special fund called “Food Process- ing Fund” of approximately USD 300 million (at INR 67.25 to 1 USD) in National Bank for Agriculture and Rural Development (NABARD) for extending affordable credit to designated food parks and the individual food processing units in the designated mega food parks. • A Dairy Processing & Infrastructure Development Fund (DIDF) has been set up with an outlay of USD 1.67 billion during the period from 2017-18 to 2028-29. • Ministry of Food Processing Industries is also keen on developing an integrated and comprehensive National Food Pro- cessing Policy and aims to build India’s National Food Grid and National Cold Chain Grid apart from the retail markets at every

www.amritaias.com | [email protected] | +91 85890 60000 144

nook and corner of the country. • Ministry of Food Processing Industries ( MoFPI) provides a host of financial assistance to food processing companies in India, under the umbrella scheme of Pradhan Mantri Kisan Sampada Yojna (PMKSY).

Significance and the need for food processing: • Create much needed employment and income generation, as food processing is a labour intensive industry. • Most of the agricultural products are not consumable in their original form, for which they are processed. • Food products can be further processed such as flour into bread. • Apart from this, left over part of crop such as risk husk can also be processed to get some useful product for e.g. Rice Bran oil, cattle feed, Sugarcane bagasse can be used for power cogeneration. • Food processing not merely adds value to the agro products, but also increases their utility. • Food processing Industry is the product of agriculture and In- dustry. • Post harvest and food processing technology are commodity and location specific. • It enhances and augments per capita food availability form a unit arable land and other resources by preventing avoidable post harvest losses and adding value to the fresh agro-produces. • A substantial amount of these losses could be prevented if appropriate agro-processing centres having backward linkage with farmers to ensure constant supply of quality raw food materials are established and operated. • Integration of production agriculture with on-farm primary processing is needed to have higher and sustainable production, productivity and better quality end products for domestic

www.amritaias.com | [email protected] | +91 85890 60000 145

and export markets. • It would also help in reducing rural urban disparity and ensuring household food and nutritional security for all at an affordable cost.

Food processing industry in India: • India Food Processing Industry is estimated at $135 billion industry which is growing at about 8% annually. • This growth rate is significantly more than agricultural growth rate which remains around 4%. • These signals indicate toward phenomenal shift toward food processing from traditional ways.

Food processing industry and employment growth: • FPI is employment intensive industry; it can be an answer to jobless growth of past decade. • Currently, only 3% of employment is in FPI, while in developed countries it handles 14% population. • Again, much of the employment will be created into rural India. This can remedy problem of distress migration. • Growth in direct employment in the organized food processing sector stands at 6% during 2011-12.

The key challenges identified overall for the food processing sector in India are as follows: • Poor supply chain linkages: India’s agriculture market has a long and fragmented supply chain that results in high wastage and high costs, especially due to seasonality, perishable, and variability of produce. • Infrastructure bottlenecks: The export related infrastructure for agri-produce is grossly inadequate, especially at sea ports and airports. More than 30 percent of the produce from the fields gets spoilt due to poor post-harvesting facilities and lack of adequate storage infrastructure.

www.amritaias.com | [email protected] | +91 85890 60000 146

• Lack of skilled manpower: The agricultural workforce is inadequately skilled across different levels of food processing. • Low adherence to quality standards: India lacks basic stan- dardization and certification infrastructure. Given the size of the food processing industry, there is a huge gap in the availability of laboratories, trained manpower, and certification agencies.

Achievement so far • 9 Mega Food Parks operationalise during 2014-18. • 83 Cold Chain Projects operationalise 3.9 lakh tonnes food processing capacity created. • MoUs for investment worth of Rs. 90,191 crore (US$13.56 billion) signed during ‘World Food India 2017’ in November, 2017. • A dedicated Investors’ Portal and Mobile APP called ‘Nivesh Sandhu’ launched by the Prime Minister during the inaugural function of the World Food India 2017.

Conclusion • India ranks second in terms of availability of arable land with 127 diverse agro-climatic zones, having a share of 11.2% of the total arable land in the world. In addition, the resource-rich country has the 6th largest food and grocery market and 5th largest retail market globally. • Thus, India is capable of providing world a perfect blend of traditional and hygienic food processed and packaged according to the modern technology • Indian food processing industry is growing at a healthy rate, and two sectors which are driving the growth are dairy sector and horticulture sector. • Private Sector participation has been on a continuous rise in many segments of value chain. And, there exists huge opportunities for investments in the fields of contract farming, raw material sourcing and creation of agri-linkages.

www.amritaias.com | [email protected] | +91 85890 60000 147

• FSSAI, the apex regulatory body has taken wide steps aim- ing to simplify product approval along with creation of a single-interface portal, “The Food Regulatory Portal” for effective and transparent implementation of the food safety laws in the country. • Apart from growing population and burgeoning purchasing power, rising urbanization, rising retail trade due to initiatives such as Digital India, together with presence of global players of the industry can be considered as the major growth drivers for the food processing industry.

#Practice question Food processing industry in India suffers from multiple challenges. Do you think that the food processing industry can create necessary opportunities for capitalizing the demographic divi- dend? (200 words)

www.amritaias.com | [email protected] | +91 85890 60000 148

23 MILITARY REFORMS IN INDIA [GS-III]

Context • The initial flavour of the debate in the decades following the Group of Ministers’ report, the Kargil Re- view Committee report, and the Naresh Chandra Committee report focussed on a restructuring of higher defence organisation as the first step. • This was intended to improve synergy among different tools of statecraft (bureaucracy, military, research and development, intelligence, internal security mechanisms, and more). • Structural changes within the Ministry of Defence, and sharing of expertise, the debate shifted to the second tier of reform in the operational realm.

Need for military in India • Age old combat equipments and weapons to the personnel. • Issues regarding promotions and surpassing of seniority. • There exists a regimental bias within a single force. • A clear preference for Infantry over Artillery, which in-turn supersedes Engineers and Signals has also been observed in promotions. • Poor quality of food and living conditions for soldiers at lower ranks. • Improper allocation and cancellation of leaves to the personals. • Increasing incidents of work related stress causing suicides and fratricides among defence service personals.

www.amritaias.com | [email protected] | +91 85890 60000 149

• Continuation of certain colonial practices had led to resentment within the forces. • Step motherly treatment of the paramilitary personals. • Inadequate implementation of earlier reform’s recommenda- tion. • Political intervention in appointments at top level officials. • Armed forces personals are employed for non core activities. • Lack of capacity and training for cadets to cope with the emerging new forms of warfare like cyber, space etc.

Need for a theatre command: • India has 19 commands (14 geographic commands, 3 functional and 2 joints). Indian armed forces will face in fighting jointly can be gauged from the astonishing fact that of the 17 single service commands, no two are headquartered in the same location. • Major military powers like the US and China operates via theatre commands. China restructured its military in 2015 to come up with six theatre commands, whereas America’s theatres – the Unified Combatant Commands – are global in scope. • Theatre commands are seen as better for pooling resources and improving efficiency. • Air force doesn’t have enough resources — fighter squadrons, mid-air refuelers and AWACS — to allocate them dedicatedly to different theatre commanders. • In the heat of the battle, differences between the two services will inevitably crop up and that can very seriously affect our effectiveness. Hence, a theatre command with one command- er is the need of the hour.

Concerning Issues • Critiques argue that India’s existing separate Command Head- quarters stand operationally time-tested by India’s wars with China and Pakistan. Hence there is no need for theatre com-

www.amritaias.com | [email protected] | +91 85890 60000 150

mand. • Command specific strength optimized according to their geographical needs. »» For instance Northern Command has mountainous terrain theatrical command may not be specialized in this geographical region. »» Theatre command may lead to compromise in specific strength of each command. • Theatre Commands needs dedicated allocation of combat assets that may create a tussle over scare resources. • Exercise Gaganshakti showcased that its assets can be shifted from one theatre to the other within no time and putting them under a dedicated theatre would not be of much use in country with limited resources. • Each forces requirement is different and their strengths can be optimised only if the required resources spent on building ca- pabilities and cutting-edge skills. • Acquiring of nuclear weapons have made little or no difference to its force structure and planning. • At a time when the major powers are reducing their forces and relying more on technology, we are still constantly seeking to expand the size of our forces.

Apprehensions over reserves • With deep understanding of joint operations, it is impossible to imagine that the reservations expressed by the IAF leadership in supporting the creation of integrated theatre commands in isolation are tantamount to stonewalling. • Dissection of the recently conducted exercise, Gaganshakti, would provide a quantitative analysis of this assertion. • The main apprehensions of the IAF leadership not only revolve around how best to exploit its dwindling offensive resources if they are hived off to multiple theatre commands, but also how the limited availability of enabling equipment and platforms

www.amritaias.com | [email protected] | +91 85890 60000 151

(AWACS, refuelers, electronic warfare platforms and more) could seriously jeopardise operations even in a single-adver- sary limited conflict. • This conflict could involve up to three of the proposed theatre commands, including the Indian Navy. • India’s armed forces have little experience in training, staffing and exercising Joint Task Forces based on at least a division-sized land component. • Creation of three division-sized task forces for operations in varied terrain, including out-of-area contingency operations, could be mulled over. These would be commanded by an Army, Navy and Air Force three-star officer, respectively, re- porting to the Chairman of the Chief of Staff’s Committee. This could offer real lessons in integration.

DB Shekatkar Recommendations: • Committee of Experts (CoE) was constituted by Ministry of Defence under the chairmanship DB Shekatkar to recommend measures to enhance combat capability and rebalance defence expenditure. • Better utilization of Supply and Transportation echelons and Animal Transport Units. • Closure of Military Farms and Army Postal Establishments in peace locations. • Enhancement in standards for recruitment of clerical staff and drivers in the Army. • Improving the efficiency of the National Cadet Corps. • The Report was taken up by the Ministry of Defence to frame key action points and roadmap for implementation. • Optimization of Signals Establishments to include Radio Mon- itoring Companies, Corps Air Support Signal Regiments, Air Formation Signal Regiments, Composite Signal Regiments and merger of Corps Operating and Engineering Signal Regiments. • Restructuring of repair echelons in the Army to include Base

www.amritaias.com | [email protected] | +91 85890 60000 152

Workshops, Advance Base Workshops and Static / Station Workshops in the field Army. • Redeployment of Ordnance echelons to include Vehicle De- pots, Ordnance Depots and Central Ordnance Depots apart from streamlining inventory control mechanisms.

Earlier reform measures: • Join commands are considered are vital for fighting a modern warfare which emphasis mobility and fusion of different elements of military power for the concentrated application of force. • A tri-service chief was first mooted by the Arun Singh Com- mittee in 1990, is yet to be implemented. • When the defence budget studies closely, 72 percent of budget goes into cost of personnel, 17 percent for maintenance of equipment and just 11 percent for new equipment. • All of suggested reforms by various committees were successfully subverted by the IAS-dominated Ministry of Defence bureaucracy. • Along with these turf wars has been an out-of-the-box propo- sition that a bottom-up approach may be the answer to India’s quest for integration. • Historical evidence of military reform shows that a multi- pronged and simultaneous approach at all levels, or a sequential one beginning at the top is more successful in bringing change. • Any other approach that leaves the bottom and the top unat- tended is fraught with risk. • There is a need for clear policy-driven directives that meet In- dia’s national security needs and challenges. • National security reforms and restructuring are bound to have far-reaching consequences and call for political sagacity, wisdom and vision. • A concurrent three-pronged approach to military reform

www.amritaias.com | [email protected] | +91 85890 60000 153

would be ideal. • The collective wisdom of past reports should be a torch bearer for the present reform initiatives and take into account con- temporary political and security considerations.

Strategic Partnership (SP) model • The Defence Acquisition Council (DAC), in a landmark decision, has approved procurement of 111 Utility Helicopters for the Indian Navy at a cost of over Rs. 21,000 crores. • This is the first project under the MoD’s prestigious Strategic Partnership (SP) Model that aims at providing significant fillip to the Government’s ‘Make in India’ programme.

Strategic Partnership (SP) model • It is intended to enhance competition, increase efficiencies, facilitate faster and more significant absorption of technology, create a tiered industrial ecosystem, ensure development of a wider skill base, trigger innovation and enable participation in global value chains as well as promote exports. • Present model intends to boost private sector participation and create domestic expertise in four key areas, namely, fighter aircraft, helicopters, submarines, and armoured vehicles and main battle tanks. • Each company would be selected for each area based on its competence, which would then tie up with the foreign Original Equipment Manufacturer selected through the procurement process, to build the platform in India with significant technology transfer.

Significance of SP: • The SP model, if implemented well, is likely to have a number of benefits for both the private sector and the larger Indian defence industry. • The biggest benefit for the private sector would be the opportunity to participate in some big ticket contracts.

www.amritaias.com | [email protected] | +91 85890 60000 154

• Bridging the trust gap by going a long way between the Indian private sector and MoD, with the latter perceived to be friend- lier toward public sector entities. • Strategic Partners, being private sector companies, are expected to exploit their dynamism, competitiveness, profit orientation. • Exposure to the civilian sector for efficient utilisation of the technology, manpower and infrastructure developed in the process. • The model has a long-term vision of promoting India as a manufacturing hub for defence equipment thus enhancing self-sufficiency and establishing an industrial and R&D ecosystem.

Concerns over SP: • Despite potential benefits, there are two concerns which need to be addressed to make SPs contribute in a meaningful and time-bound manner. • The first and foremost concern is the lack of institutional capacity and ability to guide the new process to its logical conclusion. • There is also a concern regarding the long-term viability of SPs largely due to the privileged position enjoyed by public sector entities.

Way ahead: • Time and again, the MoD has deviated from its own promise of fair play in award of contracts and handed over large orders to DPSUs and OFs on nomination. • It would be futile to expect SPs to make major investments if the government does not provide a level-playing filed to the private sector. • Check the politicization of the armed forces and ensure optimum political oversight. • In order to ensure equality amongst the services, it is essential

www.amritaias.com | [email protected] | +91 85890 60000 155

to have a balanced approach rather than the Ajai Vikram Singh Committee based differential promotion parameters must be adopted. • Grievance redress mechanisms must be strengthened to avoid victimizing complainants and adopt proper feedback. • Timely approvals are mandated for the leaves with significant reasons. • Policy on social media usage to counter the threat to national security must be rolled out. • Sensitization within the establishment is to address genuine concerns related to nutrition, hygiene, leave, compensation etc... • Strong action against colonial practices like Sahayak System, Buddy syatem etc. could help regain the confidence of soldiers. • Boosting troop morale by acting on reports on time without delay. • The paramilitary forces must be brought at par with the other armed forces. • Bureaucratic intervention should have a regulating mechanism to control corruption incidents and bureaucratic apathy. • Even when protecting the discipline of the armed forces, the whistle blowers should be considered with proper redress mechanisms to rectify the issues in the forces.

#Practice question India’s defence reform efforts have existed nearly as long as the current system itself. Evaluate (200 words)

www.amritaias.com | [email protected] | +91 85890 60000 156

24 CLIMATE RESILIANT ECONOMY AND GREEN FINANCING [GS-III]

Context • Climate change causes rising temperatures, altered water cycles and extreme weather events that raise risks to energy, food and water systems, people and the global economy. • From 2030 to 2050, the World Health Organisation expects 250,000 additional deaths a year due to climate change found out in reports by HSBC on Cli- mate resilient economies

Recent Development • Poor disproportionally affected from climate change. • Besides the physical impacts of climate change and sensitivity to extreme weather and each country’s potential to respond to change, plus transition risks – the challenges faced in trying to mitigate climate-change risks and move towards a lower-carbon economy. • India, followed by Pakistan and the Philippines, are the most vulnerable countries to changes in climate, with Finland, Swe- den and Norway, and thereafter Estonia and New Zealand being the least exposed. • The country most exposed to physical impacts overall is Qatar, followed by Israel and Bahrain. • Indeed, the seven most vulnerable are all in the Middle East or North Africa. The least exposed is Canada, followed by Russia and Finland. • Qatar and Bahrain also have the highest average annual temperatures at 28.2ºC being just ahead of Singapore.

www.amritaias.com | [email protected] | +91 85890 60000 157

• The countries weakest on potential to respond to climate change are Kenya, followed by Lebanon and Pakistan. Best- placed are Norway, New Zealand and Australia. The need to address these challenges is more urgent than ever.

India’s Situation in this regard: • India witness poor public and private funding in climate resilience measures. • India is making big efforts in that direction, but more needs to be done. A climate-resilient economy cannot be a priority only for the government. • Companies, regulators, banks and financial institutions need to be part of the effort. • The government aims to source 175 GW of power from renewable energy by 2022 and for nearly 57 per cent of total electricity capacity to come from non-fossil fuels by 2027. • All of this will require billions of dollars’ worth of investments.

Role of Investment from Private sector: • It has been estimated that approximately $100 trillion of additional investment will be required between 2016 and 2030 to sync the imperatives of global development with that of addressing the challenge of climate change. • Climate change creates additional expenditure on every rupee invested by the public and private sector due to heavy losses made by Climate disasters. • Banks and financial institutions are key intermediaries between investors who are keen to put more of their cash into low-carbon projects, sustainable projects and those projects requiring capital. • Globally, green finance is gaining prominence as a medium to raise funds for environment-friendly and climate-resilient projects. • The appetite for green investment opportunities is growing

www.amritaias.com | [email protected] | +91 85890 60000 158

with European and US investors, in particular, committed to increasing their climate-related holdings. • Technological gap is evident between developed and developing economies and their private sector participation. • Investments in climate resilient technology in developed economies are mainly mobilized from the private sector.

Climate Resilient Economy • Access the impact caused due to developmental activities. • Identify the resource & planning at all levels are important to optimise resources. • Community participation is inevitable for the success of various climate resilience programmes. • Set up specialized organisations to implement dedicated programmes. • Analyse and monitor the impacts of the programmes implemented. • Provide additional financial supports to states and various developmental agencies. • Technology transfers from developed countries to developing and underdeveloped countries will enable them to cope with climate change. • International collaborative efforts help underdeveloped coun- ties to become disaster resilient. Eg. REED+ and UNFCC • Horizontal linkage of the various socio-economic schemes implemented by centre and state governments.

Concept of Green Financing in India: • In India the concept of green financing is nascent. Take the green bond market. • Green bond issuance in India rose sharply last year — to more than $4 billion from $1.3 billion in 2016, according to data pro- vider Dealogic.

www.amritaias.com | [email protected] | +91 85890 60000 159

• While this is a welcome development, it is just a drop in the ocean against India’s climate change-related investment needs. • Measures to encourage green-bonds could help raise finances needed to “green” India’s economy. • The government could offer tax incentives to encourage mu- tual fund and other onshore investors to invest in local green bonds. • Currently, there is no incentive for onshore investors to buy labelled green bonds or make green investments. • India could also look at issuing a sovereign green bond, like France did to great effect last year. • This would help push climate-change considerations into the limelight and provide a welcome market benchmark. Allowing banks to claim “priority sector benefits” on their green investments would also help. • Knowledge sharing across regions and institutions is critical to ensure that initiatives that are successful in one location get replicated expeditiously. • Steps such as these could help India to draw in more of foreign capital — this would be especially welcome given that global investors are increasingly factoring climate change into their assessments of a country’s overall economic performance.

Measures and Policies for Tackling Climate Change: Government Initiatives: • In the pre-2020 period, India announced its voluntary goal to reduce the emission intensity of its Gross Domestic Product (GDP) by 20-25 per cent from 2005 levels by 2020. • According to Biennial Update Report submitted by Govern- ment of India to United Nations Framework Convention on Climate Change (UNFCCC) in 2016, India has achieved 12% reduction in emission intensity between 2005 and 2010 and is on course to achieve the voluntary goal by 2020. • Under the Paris Agreement, India has submitted its National-

www.amritaias.com | [email protected] | +91 85890 60000 160

ly Determined Contribution (NDC) to the UNFCCC outlining eight (8) targets for 2021-2030, incluidng: »» To reduce Emission Intensity of its Gross Domestic Prod- uct (GDP) by 33 to 35 percent by 2030 in comparision to 2005 level, »» To achieve about 57 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030 with the help of transfer of technology and low-cost international finance including from Green Climate Fund (GCF), »» To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover by 2030. • To achieve the goals, Government of India is implementing the National Action Plan on Climate Change (NAPCC) which includes eight national missions being implemented by various Ministries in specific areas of Solar Energy, Enhanced Energy Efficiency, Sustainable Habitat, Water, Sustaining the Hima- layan Ecosystem, Green India, Sustainable Agriculture and Strategic knowledge for Climate Change. • Government of India is also implementing a dedicated National Adaptation Fund to implement adaptation actions in vulnerable sectors across the country.

Climate finance and Green Funds • Green funds in private sector are mainly in the form of Equities and bonds. • Public finance mobilisation in climate finance through the Tax- es, cesses, tax incentives and guarantees. • A green fund could be the tool that Indian market needs to un- lock financing and scale up clean energy growth. • The first loss capital is higher in green funds hence the private investors are hesitant to invest in it. • A green fund’s mission is to promote the growth of a vibrant

www.amritaias.com | [email protected] | +91 85890 60000 161

clean energy economy. • A green fund has what private banks lack: a mission to expand clean energy, specialised underwriting expertise in clean technology and access to public capital that can be used strategi- cally to attract private capital. • And because green funds typically reinvest their income, effectively recycling public funds, they can create a bigger market impact than government subsidies or incentives alone. • Public institution such as the Indian Renewable Energy Devel- opment Agency may offer loans to clean energy projects, but that alone does not make it a green fund. • Green fund investments demonstrate the viability of clean energy technologies or take some of the risk until the private sector is comfortable with the new technologies.

Compensatory afforestation fund act • The Centre has notified rules for operationalising a Rs 66,000 crore fund collected as compensations under Compensatory Afforestation Fund Act passed in 2016 to promote the green cover in the country. • 13 activities are permitted for funding. They include plantation, assisted natural regeneration of forests, forest fire prevention, pest and disease control in forests, soil and moisture conservation works and improvement of wildlife habitat. • Usage of funds: 80% of the compensatory afforestation amount will be utilised by states for plantations, assisted natural regeneration of forests, forest fire prevention, pest and disease etc. The remaining 20% will be used for 11 listed works to strengthen forest and wildlife protection related infrastructure. • Role of gram sabhas: Besides enlisting the 24 activities which are to be taken up using the fund, the rules also specify that the working plan will be taken up “in consultation with the gram sabha or village forest management committee”.

www.amritaias.com | [email protected] | +91 85890 60000 162

Significance of the move • The move will help India re-green its forest and non-forest areas which have lost trees due to forest diversions amounting to more than 1.3 million hectares after the Forest (Conserva- tion) Act of 1980 kicked in allowing various developmental activities. • Over the last ten years, the fund had accumulated the amount as compensations by user agencies for diverting forest land for industries and infrastructure projects. • The CAMPA was created as per a Supreme Court ruling in 2009. • Much of the funds collected under the legislation had been left unspent with an ad hoc Compensatory Afforestation Fund Management and Planning Authority (CAMPA) in absence of enabling rules. • Until now, the funds were disbursed to states under a temporary and time consuming mechanism. With the relevant rules now in place, the implementation of the act is expected to gather pace.

Way ahead • Since the rules for utilisation of the fund have been notified, the unspent amount will now be transferred to the National Compensatory Afforestation Fund at the Centre and the respective State Compensatory Afforestation Funds in a phased manner, depending on its utilisation. The national and state funds — both non-lapsable — can be utilised for only the activities listed under the CAF Act.

Compensatory Afforestation Fund Act 2016 • This act provides for setting up Compensatory Afforestation Fund Management and Planning Authority (CAMPA) at both central and state level to ensure expeditious and transparent utilization of amounts realized in lieu of forest land diverted for non-forest purpose.

www.amritaias.com | [email protected] | +91 85890 60000 163

• The act also seeks to establish the National Compensatory Afforestation Fund under the Public Account of India, and a State Compensatory Afforestation Fund under the Public Ac- count of each state. • The payments into the funds include compensatory afforestation, NPV, and any project-specific payments.

Conclusion • Between all the issues that concern us — poverty, education, employment, health — it is easy to forget that global warming is one of the most critical challenges we face. We need to do a lot more and a lot sooner or risk an environmental crisis. • Additional investment should be accompanied by rile, regulations, fiscal inventiveness and effectives and effective markets at all level are required. • Grass root agencies and common property resources management are inevitable to utilize optimize its utility. • Countries spend trillions of dollars on waging wars, but they are reluctant to commit more to mitigate climate change and this is an imminent disaster. • The world is at an “important stage” to deal with climate change and should lay stress on “very strong” community- ori- ented activity to tackle the issue. • While using Technology as a solution to the climate impacts, for instance drip irrigation in dry lands, ramifications and wors- ening of social and political conditions should not be ignored. • Financing clean energy infrastructure, sustainable transport, energy efficiency and waste management are among the key imperatives today. Growth and diversification of the market remain key targets. • Integrating adaptation and mitigation could be a possible way out. Integrating both will increase the local legitimacy of the project, as adaptation puts emphasis on local needs.

www.amritaias.com | [email protected] | +91 85890 60000 164

#Practice question Climate financing is inevitable for building a climate resilient economy. Critically evaluate the climate financial initiatives in In- dia. (200 words)

www.amritaias.com | [email protected] | +91 85890 60000 165

ZERO BUDGET NATURAL FARMING 25 [GS-III]

Context • Under Network Project on Organic Farming (NPOF) and All India Coordinated Research Projects (AICRP) on Integrated Farming Systems the Indian Council of Agricultural Research (ICAR) has initiated an experi- ment on “Evaluation of zero budget farming practices in basmati rice-wheat system” at various districts from Rabi 2017. • It aims to study the zero budget farming practices on productivity, economics and soil health including soil organic carbon and soil fertility.

Zero Budget Natural Farming • Zero Budget Natural Farming, as the name implies, is a method of farming where the cost of growing and harvesting plants is zero. • This means that farmers need not purchase fertilizers and pesticides in order to ensure the healthy growth of crops. • It is, basically, a natural farming technique that uses biological pesticides instead of chemical-based fertilizers. • Farmers use earthworms, cow dung, urine, plants, human ex- creta and such biological fertilizers for crop protection. • It reduces farmers’ investment. • It also protects the soil from degradation.

The four pillars of ZBNF • Jivamrita/jeevamrutha is a fermented microbial culture. It provides nutrients, but most importantly, acts as a catalytic agent that promotes the activity of microorganisms in the soil, as

www.amritaias.com | [email protected] | +91 85890 60000 166

well as increases earthworm activity; During the 48 hour fer- mentation process, the aerobic and anaerobic bacteria present in the cow dung and urine multiply as they eat up organic ingredients (like pulse flour). • Jeevamrutha also helps to prevent fungal and bacterial plant diseases. Jeevamrutha is only needed for the first 3 years of the transition, after which the system becomes self-sustaining. • Bijamrita/beejamrutha is a treatment used for seeds, seed- lings or any planting material. Bijamrita is effective in protecting young roots from fungus as well as from soil-borne and seedborne diseases that commonly affect plants after the monsoon period. • It is composed of similar ingredients as jeevamrutha - local cow dung, a powerful natural fungicide, and cow urine, a strong anti-bacterial liquid, lime, soil. • Mulching. there are three types of mulching: »» Soil Mulch: This protects topsoil during cultivation and does not destroy it by tilling. It promotes aeration and water retention in the soil. Suggests avoiding deep plough- ing. »» Straw Mulch: Straw material usually refers to the dried biomass waste of previous crops, but it can be composed of the dead material of any living being (plants, animals, etc.). Provide dry organic material which will decompose and form humus through the activity of the soil biota which is activated by microbial cultures. »» Live Mulch (symbiotic intercrops and mixed crops): it is essential to develop multiple cropping patterns grown in the same field, to supply all essential elements to the soil and crops. For instance, legumes are of nitrogen-fixing plants. • Moisture: It is the condition where there are both air molecules and water molecules present in the soil, and farmer encourages reducing irrigation, irrigating only at noon, in alternate furrows ZBNF farmers report a significant decline in need for

www.amritaias.com | [email protected] | +91 85890 60000 167

irrigation in ZBNF.

Principles of ZBNF • Intercropping • Contours and bunds • Local species of earthworms • Cow dung and urine used

Government initiatives to support ZBNF: • Government of India has been promoting organic farming in the country through the dedicated schemes of Parampara- gatKrishiVikasYojana (PKVY) since 2015-16 and also through RashtriyaKrishiVikasYojana (RKVY). • In the revised guidelines of PKVY scheme during the year 2018, various organic farming models like Natural Farming, Rishi Farming, Vedic Farming, Cow Farming, Homa Farming, Zero Budget Natural Farming (ZBNF) etc. have been included wherein flexibility is given to states to adopt any model of Or- ganic Farming including ZBNF depending on farmer’s choice. • Under the RKVY scheme, organic farming/ natural farming project components are considered by the respective State Level Sanctioning Committee (SLSC) according to their priority/ choice.

Case study • The Andhra Pradesh government’s unique initiative to improve farmers’ livelihood through zero budget natural farming (ZBNF) is the right solution to fight climate change in the drought-prone Rayalaseema region. • The main aim of ZBNF is elimination of chemical pesticides and promotion of good agronomic practices. • As fighting drought is one of the main objectives of ZBNF, the farm ponds store water for use in adverse conditions. • Intercropping is an important feature of ZBNF.Farmers use

www.amritaias.com | [email protected] | +91 85890 60000 168

bio fertilizers and that make the soil fertile, thus giving higher yields. • Besides reduced input cost, farmers practising ZBNF gets higher yields.

Need for Organic Farming in India • The need for organic farming in India arises from the un-sustainability of agriculture production and the damage caused to ecology through the conventional farming practices. • The present system of agriculture which promoted an overrid- ing quest for accumulation of wealth and inherently self-destructive and unsustainable. • Increasing use of pesticides resulted in the damage to environment and increased resistance of insects to them. Pesticides harmed useful organisms in the soil. • The monoculture of high yielding seeds required external inputs of chemical fertilizers. The fertilizers also destroy soil organisms. They damage the rhizobia that fix nitrogen and other microorganisms that make phosphates available to plants. • Sustainable agriculture based on technologies that combine increased production with improved environmental protection has been accepted as absolutely essential for the maximiza- tion of the consumer welfare. • The consumers are increasingly concerned about the quality of the products they consume and food safety has become a crucial requirement. • The abysmal level, to which we have degraded our resources, requires immediate remedial measures without terming the demand for them as the ploys of the rich nations to exploit the poor. • Organically cultivated soils are relatively better attuned to withstand water stress and nutrient loss. Their potential to counter soil degradation is high and several experiments in arid areas reveal that organic farming may help to combat desertification.

www.amritaias.com | [email protected] | +91 85890 60000 169

• The national productivity of many of the cereal crops, millets, oilseeds, pulses and horticultural crops continues to be one of the lowest in the world in spite of the green revolution. • The fertilizer and pesticide consumption has increased manifold; but this trend has not been reflected in the crop productivity to that extent. • The modernisation of Indian agriculture has resulted in the increased use of irrigation water.This leads to salinity and water logging leaving the land uncultivable. Over exploitation of underground water is another effect. When water table falls, increasing energy will be required to lift water for irrigation. • Chemical fertilizers, pesticides, herbicides, etc. are manufactured using the non-renewable materials like the fossil fuels. Increasing demand for chemicals and energy in agriculture sector will have effects on our energy sources. • The extensive crop production through Increase in the area under cultivation has been an important aspect of modern agriculture seen in India. Increasingly areas under forests are brought under plough along with the marginal, sub-marginal and undulating land. The net sown area doubled over here decade. • The genetic base of crops is very important and a reduction of genetic diversity leads to the emergence of pests on a large scale. There is a large scale reduction of genetic diversity due to the use of imported and HYVs. • The reasons attributed to the low productivity are the drastic reduction in soil nutrients in the areas where fertilizer is used intensively in which the organic matter is not supplemented

Negative effects of current conventional farming • The Indian agriculture switched over to the conventional system of production on the advent of the green revolution in the 1970s. • The change was in the national interest which suffered setbacks because of the country’s over dependence on the for-

www.amritaias.com | [email protected] | +91 85890 60000 170

eign food sources. The national determination was so intense that all the attention was focused on the increase in agriculture production. • Decline in soil productivity can be due to wind and water erosion of exposed topsoil; soil compaction; loss of soil organic matter, water holding capacity, and biological activity; and salinity of soils and irrigation water in irrigated farming areas. • Desertification due to overgrazing is a growing problem, especially in parts of Africa. • Agriculture is the largest single non-point source of water pol- lutants including sediments, salts, fertilizers (nitrates and phos- phorus), pesticides, and manures. • Pesticides from every chemical class have been detected in groundwater and are commonly found in groundwater be- neath agricultural areas; they are widespread in the nation’s surface waters. • Eutrophication and “dead zones” due to nutrient runoff affect many rivers, lakes, and oceans. Reduced water quality impacts agricultural production, drinking water supplies, and fishery production. • Water scarcity in many places is due to overuse of surface and ground water for irrigation with little concern for the natural cycle that maintains stable water availability. • Other environmental ills include over 400 insects and mite pests and more than 70 fungal pathogens that have become resistant to one or more pesticides; stresses on pollinator and other beneficial species through pesticide use; loss of wetlands and wildlife habitat; and reduced genetic diversity due to reliance on genetic uniformity in most crops and livestock breeds. • Agriculture’s link to global climate change is just beginning to be appreciated. Destruction of tropical forests and other native vegetation for agricultural production has a role in elevat- ed levels of carbon dioxide and other greenhouse gases. • Recent studies have found that soils may be sources or sinks

www.amritaias.com | [email protected] | +91 85890 60000 171

for greenhouse gases. • Volatilization, also called vapour drift, is caused when a pesticide turns into a gas or vapour after spraying. This lets it travel through the air to different places and harm wildlife that would not ordinarily be directly affected.

Organic farming techniques • Crop Rotation: A technique to grow various kinds of crops in the same area, according to different seasons, in a sequential manner • Green Manure: Refers to the dying plants that are uprooted and stuffed into the soil in order to make them act as a nutrient for the soil to increase its quality • Biological Pest Control: A method in which living organisms are used to control pests, without or with limited use of chemicals • Compost: Highly rich in nutrients, this is a recycled organic matter used as a fertilizer in the agricultural farms • Polyculture has come into the picture wherein different kinds of crops are harvested and cultivated in order to meet the increasing crop demand and produce the required soil microorganisms. • Rather than using harmful chemicals to enhance this soil, organic agriculture focuses on implementing natural ways to not only increase the health of soil but also keep the nature and human health unharmed. • In organic agriculture, there is more focus on suppressing the weed rather than eliminating it completely. »» Mulching – a process wherein plastic films are used in order to block the growth of weed. »» Mowing and cutting – wherein there is a removal of weeds’ top growth. • Since organic agriculture encourages the use of natural ways to enhance the farm, crops and soil; there is a discouragement

www.amritaias.com | [email protected] | +91 85890 60000 172

of genetically engineered animals and plants. • Encouraging ladybugs, minute pirate bugs and other such predatory beneficial insects that feast on pests and fly away from the farm. • Using herbicides and pesticides that are natural or contain less chemical. Proper sanitization of the entire farm in order to keep it free from pests. • Organic agriculture encourages the use of domestic animals to increase the sustainability of the farm. • Organic farming found with low incidence of pest attack.

Benefits of organic farming • Sustainable agriculture • Increasing agriculture production • Food self-sufficiency • Environmental protection • Conservation of natural resources • Rural development

Disadvantage of the organic farming • During the conversion period, yield of the crops will be low as compared to the conventional mode of cultivation. • Organic farming requires more labour input than the conventional farming system hence production cost increases many fold. • Conversion to the organic food may create food insecurity. • Marketing and distribution is not efficient because organic food is produced in smaller amounts. • Organic farmers must have specific knowledge about localized growing systems. • Organic farms and foods must go through a rigorous certification process.

www.amritaias.com | [email protected] | +91 85890 60000 173

Government initiatives • ParamparagatKrishiVikashYojana to promote organic farming. »» Organic farming Revolution in India on the lines of the Green Revolution »» Government has started the ParamparagatKrishiVikasYo- jana (PKVY), under which 2 lakh hectareshas been made suitable for organic farming thereby benefitting 5 lakh farmers. »» National Centre of Organic Farming is to promote organic farming in the country. »» The government has initiated the Organic Value Chain De- velopment for North Eastern region. • National Mission for Sustainable Agriculture (NMSA) »» NMSA seeks to address issues associated with climate change. »» Adaptation and mitigation strategies need to address food security, equitable access of food resources, enhancing livelihood opportunities and contributing to economic stability of the people at the end. »» Mission, therefore, focuses to transform Indian agriculture into a climate resilient production system through suitable adaptation and mitigation measures mainly in the domain of crops and animal husbandry. • States like Sikkim have come up with their own organic agriculture policy. • Sub-Mission on Agro forestry(SMAF) »» Under the framework of National Mission for Sustainable Agriculture (NMSA) has been launched during 2016-17. »» The aim of the Sub-Mission is to expand the tree coverage on farmland in complementary with agricultural crops. »» Liberal transit regulation rule for transport of timber is a

www.amritaias.com | [email protected] | +91 85890 60000 174

precondition for availing the benefit of the Agro-forestry programme by the States. • National Agro Forestry Policy »» National Agro forestry Policy, 2014has been formulated with the objective to bring coordination, convergence and synergy between various elements of agro forestry scattered in various existing Missions, programmes and schemes of the Government. »» The policy will provide a platform to stimulate the growth of agro forestry in India. »» It will encourage farmers for agro forestry as an integral component of farming system which will lead to meet the ever increasing demand of timber, food, fuel, fodder, fertilizer, fibre, and other agro forestry products. »» It also helps in conserving the natural resources and forest; protecting the environment & providing environmental security; and increasing the forest / tree cover. • Rain fed Area Development Programme (RADP) »» Increasing agricultural productivity of rain fed areas in a sustainable manner by adopting appropriate farming system based approaches. »» To minimise the adverse impact of possible crop failure due to drought, flood or un-even rainfall distribution through diversified and composite farming system. »» Restoration of confidence in rain fed agriculture by creating sustained employment opportunities through improved on-farm technologies and cultivation practices »» Enhancement of farmer’s income and livelihood support for reduction of poverty in rain fed areas and »» Convergence of relevant developmental programmes in project area for optimal utilisation of resources by establishing an integrated and coordinated system involving. • Pradhan MantriKrishiSinchaiYojana(PMKSY)

www.amritaias.com | [email protected] | +91 85890 60000 175

Conclusion Organic agriculture is being conducted by many countries with the rejection of using techniques and chemicals that harm animals, crops, soil, environment and even the human health. Hence, such a process of agriculture should be encouraged since it acts as a protection shield to all the main factors that form the planet

#Practice question What is Zero Budget Natural Farming? Discuss how it can address the agrarian crisis of India?(200 words).

www.amritaias.com | [email protected] | +91 85890 60000 176

PRIVATE MANUFACTURING OF 26 OXYTOCIN[GS-III]

Context • The Union Health Ministry’s ban on the retail sale and private manufacture of oxytocin will kick off from September 1.

Oxytocin • Oxytocin has also been dubbed the hug hormone, cuddle chemical, moral molecule, and the bliss hormone due to its effects on behaviour, including its role in love and in female reproductive biological functions in reproduction. • Oxytocin is a hormone that is made in the brain, in the hypo- thalamus. It is transported to, and secreted by, the pituitary gland, which is located at the base of the brain. • It acts both as a hormone and as a brain neurotransmitter. • The release of oxytocin by the pituitary gland acts to regulate two female reproductive functions: Childbirth and Breast-feed- ing.

Use of Oxytocin • The drug, a synthetic version of a human hormone, is a life-saver for women. • Doctors use it to induce labour in pregnant women and to stem postpartum bleeding. • So critical is its role in maternal health that the World Health Organization recommends it as the drug of choice in postpartum haemorrhage.

Concerns on free use of Oxytocin • The government’s ban ignores its critical uses, and is motivat-

www.amritaias.com | [email protected] | +91 85890 60000 177

ed instead by the misuse of the hormone in the dairy industry. • Because oxytocin stimulates lactation in cattle, dairy farmers inject the drug indiscriminately to increase milk production. • This has spawned several unlicensed facilities that manufacture the drug for veterinary use. • Much is unknown about the ill-effects of oxytocin on cattle. One of the concerns was that oxytocin leads to infertility in dairy animals, and some studies show this to be true. • It has also been linked to mastitis, a painful inflammation of the udder. Milk consumers worry about exposure to it through dairy products.

What needs to be done? • Even if the ill-effects of oxytocin are real, a ban is not the answer. The right approach is to strengthen regulation, and crack down on illegal production. • Oxytocin is simply too important to Indian women, 45,000 of whom die due to causes related to childbirth each year.

Antimicrobial Resistance • Antibiotic use more than doubled in India between 2000 and 2015, fuelling antibiotic resistance that is making common infections such as E.coli, strep throat, pneumonia and tuberculo- sis. • Antimicrobial resistance is a condition wherein bacteria and other microorganisms become resistant to antimicrobial med- ications used to cure the infections that these microorganisms cause. • The overuse and misuse of these medicines is accelerating the spread of resistant bacteria, also known as superbugs. • The number of babies carrying antimicrobial resistant bacteria is growing at an alarming rate in India. • Factors like unsupervised dumping of pharmaceutical waste, excessive use of last resort antibiotics, and overuse of antibiot-

www.amritaias.com | [email protected] | +91 85890 60000 178

ics on farm animals have only amplified the crisis. • Resistant infections claim seven lakh deaths across the globe annually. • Relying on antibiotics for illnesses that might not have been caused by bacteria. • Due to cheap labour and capital costs most of the world’s antibiotic drugs are manufactured in China and India. • Antibiotic pollution from pharmaceutical production plants leads to the proliferation of resistant bacteria. • Good Manufacturing practices in the country fail to address the environmental concerns of pharmaceutical production even withinthe environmental regulations and laws. • Poultry farms are utilizing antibiotics in exorbitant quantity for more productivity affects directly and indirectly to human and other organisms. • It directly reduces the bacterial resistance of the human body. • Manure from these farms is used as a fertiliser and is washed downstream into rivers and groundwater, thereby spreading the resistant genes to the wider bacterial community. • Restrict the use of antibiotics as growth promoters in livestock is an immediate solution. • Build awareness among farmers and advise them to follow good farming practices to prevent infection and stress in the flock. • These advisories are not binding on the farmers and are simply just guidelines to follow.

#Practice Question Anti biotic misuse fuels antimicrobial resistance in India. Critically analyse the issue and suggest probable solutions.(200 words)

www.amritaias.com | [email protected] | +91 85890 60000 179

27 BLOCK CHAIN TECHNOLOGY [GS-III]

Context • Tech Mahindra and the Telangana government have signed an agreement to establish a Blockchain district in Hyderabad, a first-of-its-kind Centre of Ex- cellence for Blockchain in India.

• Blockchain technology: • Blockchain Technology was invented by Satoshi Nakamoto in 2008 for use in cryptocurrency bitcoin. • A blockchain is an encoded digital ledger that is stored on multiple computers in a public or private network. • Blockchain is a decentralised digital ledger that records transactions on thousands of computers globally in such a way that the registered transactions cannot be altered retrospectively. • A block is the “current” part of a Blockchain which records some or all of the recent transactions, and once completed, goes into the Blockchain as permanent database. • Each time a block gets completed, a new block is generated. • Blocks are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block. • Blockchain technology allows for instant recognition of the exact size of the block by all transacting parties in the chain since the block is simultaneously updated on all their databas- es, and has unique security features that do not allow tamper- ing with the definition of the block. • Each block’s movements across the chain have the ability to be verified by all parties in the chain since the block carries

www.amritaias.com | [email protected] | +91 85890 60000 180

with it the digital imprint, or ‘signature’, of wherever it has been. • Blockchain is a new-age technology that helps in record-keeping through the use of cryptography, a secure method of writ- ing digital codes. • With blockchain, many people can write entries into a record of information, and a community of users can check the records to reduce the scope of fraudulent practices in altering information. • It is an incorruptible digital ledger for storing data across a peer-to-peer network. • Further, it is a secured way of conducting online transactions and its use removes the characteristic of infinite reproducibility from a digital asset. • Very useful for cross border remittances, its use enables instant transfer of money as against the current system that takes about a week for the same. • Real-time basis accesses of information held on blockchain through shared database. • Blockchain database is not stored on physical servers but on cloud, which makes it easy to store unlimited data. • Moreover, blockchain technology is a self-auditing ecosystem of digital value and blockchain network automatically checks every transaction that happens in it.

Benefits of blockchain technology • This technology is used behind crypto-currencies. • As a public ledger system, blockchain records and validate each and every transaction made, which makes it secure and reliable. • All the transactions made are authorized by miners, which makes the transactions immutable and prevent it from the threat of hacking.

www.amritaias.com | [email protected] | +91 85890 60000 181

• Blockchain technology discards the need of any third-party or central authority for peer-to-peer transactions. • It allows decentralization of the technology. • It can also be used in smart contracts, supply chain management logistics, asset protection, payment processing, crowd- funding, governance, file storage and date management and Internet of Things. • Middle men free way of exchange of assets. • Crypto currencies take the power for issuing currency from government and take it to the people. • Absence of middle level ledgers increases the speed of transactions.

Challenges of block chain technology • Common public may not be aware and reluctant in using this sophisticated technology for day to day activities. • Primary infrastructure is anecessary requirement for the successful utilisation of blockchain technology. • Security about the key which is used to protect a particular Bitcoin. • An issue of cyber theft is posing a serious challenge with Bit- coins and similar crypto currencies. • Huge amount of power is required to maintain computers to verify the transactions. • Transaction speed may affected due to the blocks in the chain must be verified by the distributed network • While it can help enhance the delivery of government services, it cannot replace an inefficient system. • Although it can deter corruption by making governments more accountable and transparent, it cannot prevent the entering of false information into the network.

www.amritaias.com | [email protected] | +91 85890 60000 182

What wasin news? • Tech Mahindra, as a founding member of the Blockchain district, will provide platform and technology assistance to all the incubators in the district. • On its part, the Telangana government would provide regulatory and policy support to promote the growth of Blockchain. • Initially it would be a virtual cluster, connecting with the stakeholders working in the emerging technology. It would have a physical building at a later phase. • In short, it will be “a cluster of buildings”, which will house start-ups and other stakeholders working on the development of the platform. • Block chain district could be become one of the global talent hub which help to blockchain technology to thrive in India at par with other competitors. • It also provides a block chain ecosystem that helps to build India in to a blockchain capital of the world.

Blockchain technology in public administration • Blockchain could simplify the management of trusted information, making it easier for government agencies to access and use critical public-sector data while maintaining the security of this information. • There are a number of blockchain tools and technologies that government agencies can implement today to protect critical data and improve the management of records associated with property ownership and incorporation. • For instance the nation of Estonia, for example, is rolling out a technology called Keyless Signature Infrastructure (KSI) to safeguard all public-sector data. • Blockchain has the potential to optimize the delivery of public services; further India’s fight against corruption, and create considerable value for its citizens. • By maintaining an immutable and chronologically ordered re-

www.amritaias.com | [email protected] | +91 85890 60000 183

cord of all actions and files (“blocks”) linked together (“chain”) in a distributed and decentralized database, Blockchain creates an efficient and cost-effective database that is virtually tamper-proof. • Blockchain promises to create more transparent, accountable, and efficient governments. • In addition to creating a more efficient government, blockchain can also help create a more honest government. • Decentralized and programmable nature of the blockchain applications can be used to change health information technology to gain greater efficiency in public and private health care systems. • A public blockchain, like the one Bitcoin uses, records all information and transactions on the decentralized database permanently, publicly, and most importantly, securely. • By allowing governments to track the movement of government funds, blockchain can hold state and local actors accountable for any misappropriations. • Blockchain not only deters corruption through accountability, but it can also do so by bypassing the middleman entirely. • Earlier this year, the World Food Programme began testing blockchain-based food and cash transactions in Pakistan’s Sindh province. • Refugees in Jordan’s Azraq camp are now using the same technology, in conjunction with biometric registration data for authentication, to pay for food.

Conclusion • A secure way of transaction is a primary requirement for any socio-economic development programme of governments. Blockchain technology could be a new avatar in the financial and technological future of the country. Blockchain technolo- gycould radically decentralise society itself, getting rid of the need for banks, governments, even companies and politicians.

www.amritaias.com | [email protected] | +91 85890 60000 184

#Practice question What is Blockchain technology? Explain the applications of Blockchain technology in ascertain transparent and accountable governance? (150words)

www.amritaias.com | [email protected] | +91 85890 60000 185

REFORMING INDIAN AGRICULTURE 28 [GS-III]

Context • 54.6 per cent of the population is engaged in agriculture and allied activities (census 2011) and it contributes 17 per cent to the country’s Gross Value Added. • India is the world’s largest producer of pulses, rice, wheat, spices and spice products. India has many areas to choose for business such as dairy, meat, poultry, fisheries and food grains etc. • India has emerged as the second largest producer of fruits and vegetables in the world. • Production of wheat, estimated at 93.50 million tonnes, is higher by 6.97 million tonnes than the production of 86.53 million tonnes achieved during 2014-15. • Total food grain production in the country is estimated at 252.22 million tonnes which is marginally higher by 0.20 million tonnes than the previous year’s food grain production of 252.02 million tonnes. • Production of pulses estimated at 16.47 million tonnes is lower by 0.68 million tonnes than their production during 2014-15. • The total production of rice is estimated at 104.32 million tonnes which is lower by 1.17 million tonnes than the production of 105.48 million tonnes during the preceding year.

Irrigation for Agriculture • Drought and floodsare accruing huge financial losses to the farmers.

www.amritaias.com | [email protected] | +91 85890 60000 186

• Seven decades after independence, Indian agriculture remains hostage to the whims of the rain gods during the monsoon season. • The principal reason for this is that 73 million hectares out of a net sown area of 141 million hectares are unirrigated and rainfall dependent. The spatial distribution of rain too has deep impact. • This year, for instance, rains have been plentiful in central and south India, normal in western India and deficient in the east and the North-East. • Even though food grain production will probably top a record 280 million tonnes this year (third year of record in a row), there will be large geographical pockets of output deficiency and household stress. • Pradhan MantriKrishiSinchayeeYojana (PMKSY) »» The scheme was approved with an outlay of Rs. 50,000 crore for a period of 5 years (2015- 16 to 2019-20). »» The major objective of PMKSY is to achieve convergence of investments in irrigation,expand cultivable area under irrigation, improve on-farm water use efficiency to reduce wastage of water, enhance the adoption of precision irrigation and other water saving technologies (More crops per drop), promote sustainable water conservation practices, etc. »» The mission is administered by Ministry of Water Resourc- es, River Development and Ganga Rejuvenation.

Agriculture and credit • Low earning power of the borrower, which results in poor repayment. • Use of loan for unproductive purposes. • Very high rate of interest charged by the village moneylender. • The manipulation of accounts by the lenders.

www.amritaias.com | [email protected] | +91 85890 60000 187

• Private money lenders are highly exploitative in character because of the inherent profit motive. • Institutional credit is not linked with other non-farm services such as marketing and processing and warehousing. • Rural indebtedness has grown many folds in the last decade. • Frequent farm loan waivers had strained the state finance across the country. • Fresh borrowing has to be reduced to the minimum level keeping in view that the repayment capacity of farmers is ensured. • Control of the activities of moneylenders is also necessary to check the exploitation of farmers by the money lenders. • Due to progressive institutionalization of credit, private sources now meet barely 20% of the short- and medium-term credit needs of the farmers. • Kisan Credit Card »» The Kisan Credit Card Scheme is in operation throughout the country and is implemented by commercial banks, cooperative banks and Regional Rural Banks (RRB). »» The scheme has facilitated in augmenting credit flow for agricultural activities. »» A Kisan Credit Card (KCC) is a credit delivery mechanism that is aimed at enabling farmers to have quick and timely access to affordable credit. »» It was launched in 1998 by the Reserve Bank of India and NABARD. »» The scheme aims to reduce farmer dependence on the informal banking sector for credit – which can be very expensive and suck them into a debt spiral. The card is offered by cooperative banks, regional rural banks and public sector banks.

Reasons mentioned & Data from Economic Survey • To add insult to injury, climate change is likely to add long-run

www.amritaias.com | [email protected] | +91 85890 60000 188

volatility to agricultural yield. • The Economic Survey 2017-18 (Chapter 6) suggests that farmer income losses could range from 15% to 18% and could rise to between 20% and 25% in non-irrigated areas. The survey as- serts that in the absence of adaptation by farmers and changes in policy, there is likely to be an average loss of 12%. • An increase in average temperatures, a decline in average rainfall and an increase in the number of dry days may together conspire to create this impact. • The survey also points out that while real Indian agricultural output growth has grown from about 2% average in the first decades to over 3% now and the annual volatility (measured by standard deviation) has been reduced from 6% to about 3%, the growth is below China’s and the volatility of output is higher than China’s for the same period.

Crop Insurance • Issue of crop failure due to natural calamities, pests and diseases, weather conditions is always there. For that we have National Crop Insurance Programme (NCIP) with component schemes of Modified National Agricultural Scheme (MNAIS), Weather Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS). • In addition, National Agricultural Insurance Scheme (NAIS) which was to be withdrawn after implementation of NCIP from Rabi 2013-14 was extended further upto 2015-16. • Modified National Agricultural Insurance Scheme (MNAIS): Actuarial premium rates are charged with a provision of subsidy upto 75%, which is shared by the Central and State Govern- ments on a 50:50 basis. • Weather Based Crop Insurance Scheme (WBCIS): Provide coverage against weather deviation from the notified standards on the basis of weather data received from the notified Auto- matic Weather Stations (AWSs) and Automatic Rain-gauges (ARGs).

www.amritaias.com | [email protected] | +91 85890 60000 189

• As a result of the review of these schemes, a new scheme Pradhan MantriFasalBimaYojana (PMFBY) has been introduced along with pilot Unified Package Insurance Scheme (UPIS) and restructured Weather Based Crop Insurance Scheme (WBCIS). Under the PMFBY, a uniform maximum premium of only 2 per cent will be paid by farmers for all Kharif crops and 1.5 per cent for all Rabi crops. In case of annual commercial and horticultural crops, the maximum premium to be paid by farmers will be only 5 per cent. Balance premium will be paid by the Government.

Minimum Support Prices • Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. • The minimum support prices are announced by the Govern- ment of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP). • MSP is price fixed by Government of India to protect the producer - farmers - against excessive fall in price during bumper production years. • The minimum support prices are a guarantee price for their produce from the Government. • The major objectives are to support the farmers from distress sales and to procure food grains for public distribution. • In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market, govt. agencies purchase the entire quantity offered by the farmers at the announced minimum price. • Determinants of MSP »» Cost of production (CoP) is one of the important factors in the determination of MSP of mandated crops. »» Besides cost, the Commission considers other important factors such as demand and supply, price trend in the do-

www.amritaias.com | [email protected] | +91 85890 60000 190

mestic and international markets, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors and the likely impact of MSPs on consumers, in addition to ensuring rational utilization of natural resources like land and water. »» The pricing policy is rooted not in ‘cost plus’ approach, though cost is an important determinant of MSP.

Climate resilient agriculture • Forecasting studies of rice yields using DSSAT (Decision Sup- port System for Agro-technology Transfer) rice model predict- ed that, all states in the eastern region are likely to experience reduced yields of below or equal to 10% during mid-century climate change scenarios except Bihar. • Net global warming potential (NGWP) and Greenhouse gas intensity (GHGI) were influenced by tillage and residue treat- ments. • Thermal sensitive crops started deteriorating its productivity.

What should India do? • India’s agricultural policy for the next decade should shift away from cereal (and quantity) centricity and be primarily focused on water effectiveness. For political reasons, Indian policy has not been able to evolve from “farmer welfare” to “agricultural household sustainability”. • The lack of long-term policy planning combined with a welfare-oriented policy results in a periodic loan-waiver approach which perpetuates a poor credit culture in the agriculture sector and, consequently, a fragile state balance sheet. This is a vicious circle of waiver addiction and debt, both at the rural household and state level. • Federal policy itself is trapped by the seventh schedule of the Constitution, which makes agriculture, dairy, meat and fisheries a state subject.

www.amritaias.com | [email protected] | +91 85890 60000 191

Various Government Initiatives • Government has initiated many schemes to make farmers aware of the benefits of micro-irrigation such as a Centrally Sponsored Scheme (2006), National Mission on Micro-irrigation (2010), National Mission on Sustainable Agriculture (2014) and the recent Pradhan MnatriKrishiSinchayiyojana. • The latest scheme PMKSY Per Drop More Crop is an important micro-irrigation scheme that focuses on District Level implementation of the scheme making district magistrates directly accountable. • This scheme has been constantly publicized on all forms of media and is also being taught at various KisanMelas. It becomes all the more important to use micro-irrigation and save water in all spheres of lifewhen 54% of India faces high water stress. • The government has come up with a Rs. 6,000-crore World Bank-aided Atal BhujalYojana with community participation to ensure sustained groundwater management in overexploited and ground water-stressed areas in seven States.

Way Forward • In addition, the water effectiveness emphasis should insist on agricultural power being priced to the farmer. The only way to reduce gross misuse of ground water is to price the main input (electricity to pump that water out). • Other factors like seed quality, balanced fertilizer input (nitrogen, phosphate and potash), route to market and reduction in information asymmetry are important, but the principal problem has been a lack of focus. • A comprehensive reform process in agriculture would start with a constitutional amendment that makes agriculture and water (use) a concurrent subject in the Constitution—there has been precedent for this in the 42nd Amendment of 1976. • The purpose of this amendment would be to provide a federal fillip to states, with a primary emphasis on water effectiveness.

www.amritaias.com | [email protected] | +91 85890 60000 192

• This water effectiveness project will not only focus on bringing more areas under irrigation in a sustainable manner (not with capital but with a thoughtful district by district approach) but also focus on sprinkler and drip irrigation. • A water effectiveness focus for agriculture policy will improve yield, change cropping patterns and reduce misery. It is the only way to mitigate the significant impact likely from climate change. • As emphasised in this year’s theme on World Water Day by the UN, we need to connect with nature to help rebalance the water cycle in a sustainable and cost-effective way by planting new forests, reconnecting rivers to floodplains and restoring wetlands. Governments, communities, the private sector, and researchers must collaborate.

Conclusion • Most of the Indians are directly or indirectly depending on the agriculture. Some are directly attached with the farming and some other people are involved in doing business with these goods. • India has the capacity to produce the food grains which can make vast difference in Indian Economy. • To achieve targeted mark by the government it needs to provide support in case of land, bank loans and other machineries to the small farmers along with the big farmers with this we can expect improvement in Indian economy.

#Practice Question Identify the major issues in agriculture sector and critically analyse the role of Minimum Support Price in address these issues in agriculture. ( 250 words)

www.amritaias.com | [email protected] | +91 85890 60000 193

29 A LONG-TERM STRATEGY TO REDUCE CRUDE IMPORTS [GS-III]

Context • India’s energy consumption will grow 4.5 percent every year for the next 25 years. There is a need for a more transparent and flexible market for the oil and gas sectors. • India imports 80 percent of its oil needs and is the third largest oil consumer in the entire world. • Country’s refineries are on track to meet the ambitious target to produce clean and affordable fuel by April 2020.

Oil and gas sector in India • The oil and gas sector is among the six core industries in India and plays a major role in influencing decision making for all the other important sections of the economy. • NELP and HELP envisaged in fulfilling the ever-increasing disparity between India’s gas demand and supply. • The government has allowed 100 per cent Foreign Direct In- vestment (FDI) in many segments of the sector, including natural gas, petroleum products, and refineries, among others. • India’s economic growth is closely related to energy demand; therefore the need for oil and gas is projected to grow more, thereby making the sector quite conducive for investment.

Context of Brent Crude • The oil industry has been witnessing significant turmoil and uncertainty in recent months due to various international events and incidents.

www.amritaias.com | [email protected] | +91 85890 60000 194

• The primary benchmark for international oil prices, the Brent crude, reached a level ($80.49 per barrel) in May that was not seen since 2014. • Histrionics around the US sanctions on Iran have also affected sentiments considerably. • In recent weeks, tariffs imposed by the Donald Trump administration and the increasing production from Saudi Arabia and Libya have caused abatement of prices.

Effects of oil price rise on India • The global economy in a better position now than in the last few years and with the oil supply glut disappearing, crude price might not fall sharply over the near term, as it did before. • High oil prices are a double whammy for India: it would not only widen the country’s trade deficit but also impose a fiscal burden on account of fertilizer, kerosene and LPG subsidies. • With domestic retail prices of transportation fuels at an all- time high, the expectation is that the excise duty on petroleum products might be lowered unless the recent fall in prices sustain. • The government had collected around `2 trillion from such duties in 2017-18, which played a crucial role in fiscal management. • Lowering the excise duty would exert pressure on fiscal balance of the centre as well as states. • Alternatively, oil marketing companies (OMCs) may be asked to absorb losses but that would intrude on their capital expenditure plan.

Long-term Strategy to deal price Volatility • India needs a carefully devised strategy that is not driven by short-term goals rather it should aims to gradually insulate the country from global oil price volatility. • Expediting the migration to electric mobility by new inven-

www.amritaias.com | [email protected] | +91 85890 60000 195

tions. • Expanding the bio-fuel production and blending in petrol. • Stimulating exports of petroleum products reduce strain over current account. • Furthering developments in other energy recourses for energy needs. • Build strategic oil reserves.

Expediting the migration to electric mobility • Since the transport sector accounts for around 70% of the total diesel sales in the country, it is an appropriate sphere for a transition from traditional fuels to electric motors. • A favourable incentive mechanism (subsidy up to 60% of the total cost of an electric bus) to help the adoption of electric buses gain traction is already in place. • The need of the hour is to get the pace of building electric vehicle (EV) supportive infrastructure to catch up with the addition of new electric buses to the public transportation system, mainly to facilitate a smooth take-off of EV bus services. • The best approach thus is a multi-stage adoption which calls for identifying a specific set of routes for electric bus services in a particular big city and ensuring that all infrastructures needed for their seamless operation is in place before considering other sets of routes. • Out of the total transport sector, trucks alone account for around 28% of the diesel consumption. • Creating dedicated electric corridors for trucks on the high- ways could go a long way in curbing oil imports.

Expanding the bio fuel blending in petrol • Increasing the blending proportion of domestically available bio-fuels in cooking gas and transportation fuel is another way to reduce India’s reliance on imported crude oil.

www.amritaias.com | [email protected] | +91 85890 60000 196

• Ethanol is mainly used for blending in India and it is mostly derived from sugarcane molasses means its production is con- tingent on weather patterns. • Moreover, sugarcane, refining of which creates molasses, is a water-intensive crop, so fresh incentives to increase ethanol production may not be good economics in a country where water scarcity is a serious problem. • Hence, methanol, produced from coal, should be given more weightage when it comes to blending. • Besides, biodiesel supply should be augmented by making Jatropha farming more productive through genetic modifica- tion. • A reduction in oil imports by 20%, the country could save up to $18 billion a year in terms of foreign exchange.

Indian Strategic Oil Reserves • Indian Strategic Petroleum Reserves Ltd has built 5.33 million tonnes of strategic crude oil storage at three locations — Padur (Kerala) and Mangaluru on the western coast and Visakhapatnam on the eastern coast for about 10 days consumption. • The government’s strategic reserve in India is managed by the Indian Strategic Petroleum Ltd. • Centre will build two more strategic oil reserves with a combined capacity of 10 million metric tonnes (MMT) — at Chand- ikhole in Odisha and at Bikaner in Rajasthan. • • This will take our capacity to 15.33 MMT.

Initiatives to promote use of Biofuels • • Since 2014, the Government of India has taken a number of initiatives to increase blending of biofuels. • • The major interventions include administrative price mechanism for ethanol, simplifying the procurement procedures of OMCs, amending the provisions of Industries (Development &

www.amritaias.com | [email protected] | +91 85890 60000 197

Regulation) Act, 1951 and enabling lignocellulosic route for ethanol procurement. • The Government approved the National Policy on Biofu- els-2018 in June 2018. • The policy has the objective of reaching 20% ethanol-blending and 5% biodiesel-blending by the year 2030. • The policy expands the scope of feedstock for ethanol production and has provided for incentives for production of advanced biofuels. • Recently, the Government has increased the price of C-heavy molasses-based ethanol to Rs. 43.70 from Rs. 40.85 to give a boost to EBP Programme. • Price of B-heavy molasses-based ethanol and sugarcane juice- based ethanol has been fixed for the first time at Rs. 47.40. • The Government has reduced GST on ethanol for blending in fuel from 18% to 5%.

Way forward • The government has done well to not have resorted to administrative price controls, which would be at variance with the reform credibility that it earned through the implementation of structural reforms such as GST and the new insolvency and bankruptcy code. • Further affirmation from the highest levels of the government on continuation of fuel price deregulation would go a long way in bolstering investor sentiment, which is essential to boost private investment. • In brief, the right option now is to use the current situation as an opportunity to push for initiatives that are in the best interest of the country. • Reducing the country’s reliance on oil imports would bode well for energy security, and make our financial markets less vola- tile in the event of untoward developments in the oil market. And savings from reduced oil imports could in turn be used

www.amritaias.com | [email protected] | +91 85890 60000 198

to finance infrastructure projects, which are crucial for India’s long-term growth prospects.

Conclusion • In the near- to medium-term, it is imperative to explore how fuels can eventually be covered under the goods and services tax (GST), which is essential not only to reduce any undue burden on users but also to prevent leakages and achieve efficiency. • To begin with, natural gas and aviation turbine fuels (ATFs) may be considered for inclusion, which might not cause substantial revenue loss for states but will foster confidence that other petroleum products will be brought under GST sooner rather than later. • India’s energy vision comprises of four pillars – »» Energy access »» Energy efficiency »» Energy sustainability »» Energy security

#Practice Question Discuss various strategies to curb the imports of crude oil and analyse the feasibility of using biofuels as a viable option in achieving self sufficiency in our energy demands.

www.amritaias.com | [email protected] | +91 85890 60000 199

30 BIO-FUELS NATIONAL WATER WAYS PROJECTS [GS-II & GS-III]

Context • Rajasthan has become the first State in the country to implement the national policy on bio-fuels un- veiled by the Centre in May this year. • The policy lays emphasis on increasing production of oilseeds and establishesa Centre for Excellence in Udaipur to promote research in the fields of alternative fuels and energy resources.

Classification of Biofuels • 1st generation biofuels are also called conventional biofuels. They are made from things like sugar, starch, or vegetable oil. Note that these are all food products. Any biofuel made from a feedstock that can also be consumed as a human food is considered a first generation biofuel. • 2nd generation biofuels are produced from sustainable feedstock. The sustainability of a feedstock is defined by its availability, its impact on greenhouse gas emissions, its impact on land use, and by its potential to threaten the food supply. No second generation biofuel is also a food crop, though certain food products can become second generation fuels when they are no longer useful for consumption. Second generation bio- fuels are often called “advanced bio-fuels.” • 3rd generation bio-fuels are biofuel derived from algae. These bio-fuels are given their own separate class because of their unique production mechanism and their potential to mitigate most of the drawbacks of 1st and 2nd generation bio-fuels.

National Policy on bio-fuels- salient features • Categorization: The Policy categorises bio-fuels as “Basic

www.amritaias.com | [email protected] | +91 85890 60000 200

Bio-fuels” to enable extension of appropriate financial and fiscal incentives under each category. »» First Generation (1G) bio-ethanol & biodiesel and “Ad- vanced Bio-fuels” »» Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels »» Third Generation (3G) bio-fuels, bio-CNG etc. • Diversifying raw materials:The Policy expands the scope of raw material for ethanol production by allowing use of Sugar containing materials like Sugar Beet, Starch containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes, which are unfit for human consumption. • Protection to farmers: Farmers are at a risk of not getting appropriate price for their produce during the surplus production phase. • Viability gap funding: the Policy indicates a viability gap funding scheme for advanced Bio-fuels refineries of Rs.5000 crore in 6 years in addition to additional tax incentives, higher purchase price. • Invest in improving production mechanism: The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, short ges- tation crops. • The Policy allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Bio-fuel Coordination Committee.

Expected benefits of bio-fuels • Import dependency: The policy aims at reducing import dependency. • Cleaner environment: By reducing crop burning & conversion of agricultural residues/wastes to bio-fuels there will be further reduction in Green House Gas emissions. • Health benefits: Prolonged reuse of Cooking Oil generate po-

www.amritaias.com | [email protected] | +91 85890 60000 201

tential health hazard and can lead to many diseases. • Used Cooking Oil is a potential feedstock for biodiesel and its use for making biodiesel will prevent diversion of used cooking oil in the food industry. • Employment Generation: One 100klpd 2G bio refinery can contribute 1200 jobs in Plant Operations. • Village Level Entrepreneurs and Supply Chain Management. • Additional Income to Farmers: By adopting technologies, agricultural residues/waste can be converted to ethanol and can fetch a price for these wastes. • Bio-fuels in India are of strategic importance as it augers well with the ongoing initiatives of the Government such as Make in India, Swachh Bharat Abhiyan, Skill Development. • And offers an opportunity to integrate multiple ambitious targets of doubling of Farmers Income, Import Reduction, Em- ployment Generation, Waste to Wealth Creation. • Globally, bio-fuels have caught the attention in last decade and it is imperative to keep up with the pace of developments in the field of bio-fuels.

Concerns over bio-fuels • Monoculturerefers to the practice of growing one heavily concentrated crop, rather than the rotation of various crops through a farmer’s fields over time. • Bio-fuels are not yet poised to completely replace our reliance on petroleum. • It would take a considerable amount of time to see a major shift from gasoline to bio-fuels, due to the massive number of gas-only cars on the road and the considerable lack of ethanol or biodiesel pumps worldwide. • There are concerns that it might be challenging to grow enough crops to meet the demand for bio-fuels. • There are also concerns the production of bio-fuels requires

www.amritaias.com | [email protected] | +91 85890 60000 202

more energy than they can generate. • Selection of crops or use of lands for bio-fuels production that will jeopardize food supplies or increase their price should be avoided, particularly because of their dire impact on the people in poor developing countries. • Depletion and contamination of water supplies can have pro- found effects on human and animal health. Many biofuel crops require large amounts of water for their cultivation, particularly harmful in areas where water is scarce. • The cutting of forests in order to create land available for the growing of biofuel crops would have grave impacts on greenhouse gas reduction as well as biodiversity, land erosion, and the need for wood for housing and other local necessities. • Other environmental risks include the use of genetically altered crops to increase bio-fuels’ production, with the danger that the genetic alterations will migrate to the detriment of other agricultural crops, and the introduction of invasive species through feedstock cultivation that also could harm existing agriculture. • The introductions of second-generation bio-fuels that are derived from non-food feedstocks such as switch grass and agricultural wastes have their own environmental problems. Switchgrass can be valuable for flood protection and prevention of erosion. Agricultural wastes removed from the land can result in deterioration of the productivity of the land, possibly capable of remedy by crop rotation. • A serous socio-economic problem with the expansion of bio-fuels that needs addressing is the increasing concentration of lands in the ownership of a few large landowners.

Probable solutions • Agricultural extension services can play an important role. • The feasibility of legally binding, enforceable standards should be considered for the cultivation and processing of bio-fuels with respect to the risks listed above – e.g. protection of food

www.amritaias.com | [email protected] | +91 85890 60000 203

and water supplies. • Meanwhile, voluntary guidelines, best practice standards and credible certification/labelling schemes for different bio-fuel feedstock and production practices should be quickly developed and promoted. • Bio-fuel production should not be permitted that jeopardiz- es the price and supply of food and crops essential for animal feed and local construction materials for the people of developing countries. • Exporters and Importers of bio-fuels should be informed about and required to respect all environmental and labour laws and relevant local, national and international bio-fuels’ standards, guidelines and/or certifications. • Measures should be adopted to prevent deterioration of land used for bio-fuels through monoculture utilization. • Measures should be adopted to protect the land rights and way of life of existing farmers and ranchers. • Regulations must be adopted to protect water supplies and protect against water and air pollution from the growing of bio-fuels feed stocks. • Further research should be pursued urgently on second generation bio-fuel technologies and feed stocks that do not compete with food production and on regulatory provisions to prevent degradation of the land from their utilization.

Conclusion • The potential is great for the use of bio-fuels to relieve world dependence on scarce and uncertain supplies of oil and to reduce emissions of greenhouse gasses. • Particularly in developing countries where national and individual resources are too low for the introduction of modern energy resources essential for their development, bio-fuels have potential for providing energy from local crops, creating jobs and alleviating poverty.

www.amritaias.com | [email protected] | +91 85890 60000 204

• None of these potentials will be realized, however, if standards are not adopted to provide against substitution of fuel for food crops, endangerment of clean water supplies, deterioration of the land and inequitable distribution of the profits from bio-fuel production. • Introduction of bio-fuels is proceeding so rapidly, however, that the environmental and social risks of bio-fuel production are too often being ignored. • Without careful and thorough assessment and regulation, the promise of bio-fuels may well be lost.

www.amritaias.com | [email protected] | +91 85890 60000 205

CABINET RELAXES NEW EXPLORATION 31 LICENSING POLICY (NELP) [GS-III]

Context • The Union Cabinet approved the policy framework to streamline production sharing contracts signed in the pre-New Exploration Licensing Policy (NELP) and NELP periods. • Key decisions under the framework include increasing the exploration period granted for blocks in the northeast, and easing the sharing of royalties with the developers of the blocks.

New Exploration Licensing Policy (NELP) • New Exploration Licensing Policy (NELP) was conceptual- ized by the Government of India, during 1997-98 to provide an equal platform to both Public and Private sector companies in exploration and production of hydrocarbons. • It provided for establishment of Directorate General of Hydro- carbons (DGH) as a nodal agency for its implementation. • It was introduced to boost the production of oil and natural gas and providing level playing field for both public and private players. • Before implementation of the New Exploration Licensing Pol- icy (NELP) in 1999, a mere 11% of Indian sedimentary basins were under exploration, which has now increased extensively over the years.

Hydrocarbon Exploration and Licensing Policy (HELP) • Government of India launched a new policy regime for Explo- ration & Production (E&P) sector namely Hydrocarbon Explo- ration and Licensing Policy (HELP) in 2016 which is paradigm

www.amritaias.com | [email protected] | +91 85890 60000 206

shift from earlier policy regime. • The main features of new Policy regime are Revenue Sharing Contract, single Licence for exploration and production of conventional as well as unconventional Hydrocarbon resources, marketing & pricing freedom, etc. • Open Acreage Licensing Policy (OALP) under HELP, is main innovative feature wherein investor can carve out Blocks of their own interest and submit an Expression of Interest (Eol) throughout the year. Based on the areas for which expression of interest has been expressed bidding will be conducted every 6 months.

Govt. amends definition of hydrocarbon to include shale • The Ministry of Petroleum and Natural Gas has liberalised the definition of petroleum to bring more hydrocarbons such as coal bed methane and shale gas under its fold. • Petroleum and Natural Gas (Amendment) Rules, 2018 have been amended in this regard. • Petroleum will now mean naturally occurring hydrocarbons, whether in the form of natural gas, in a liquid, viscous or solid form, or a mixture of these. It, however, does not include coal, lignite and helium occurring in association with petroleum or coal or shale. • Prior to this, the definition excluded shale and therefore barred companies from exploiting it from fields that are producing conventional oil and gas or coal-bed methane.

Significance of this change • The amendment of the definition of petroleum is a welcome move as it would open up exploration of all hydrocarbons in existing fields which is line with the new Hydrocarbon Explora- tion Licensing Policy (HELP). • It would help in enhancing domestic exploration and production of hydrocarbons and increasing India’s energy security and reducing dependency on imports.

www.amritaias.com | [email protected] | +91 85890 60000 207

Petroleum products and GST • The highest GST slab of 28% in much lower than the taxes already being paid on these products and inclusion under GST results in lowering the prices. • State governments derive a lion’s share of revenues from sale of these fuels and bringing them under the GST results in sharp decline in state revenue, which then will have to be com- pensated. • The exclusion of natural gas from the purview of GST remains a deterrent to attracting large-scale investments as neither the producers nor the consumers are able to set off the taxes paid on their input and output. • While the Goods and Service Tax (GST) was implemented from July 1, 2017, crude oil, natural gas, petrol, diesel, and jet fuel (ATF) were kept out of it for the time being. • No date for their inclusion in GST regime has yet been announced.

Shale Gas &Coal Bed Methane • Shale gas is a natural gas formed from being trapped within shale formations. • It is unconventional source of methane, like coal-bed gas and tight gas (trapped in rock formations). • It is colourless, odourless gas, lighter than air. It is cheaper than natural gas, releases 50% less CO2. • It also provides feedstock for petrochemicals industry, which is turned into fertilizer, plastics and other useful stuff. • However, Coal Bed Methane (CBM) is also an unconventional form of natural gas found in coal deposits or coal seams. • CMB is formed during the process of coal formations. • It is considered a valuable energy resource with reserves.

www.amritaias.com | [email protected] | +91 85890 60000 208

India’s resource dichotomy • India is rich in natural resources. The country produces as many as 87 minerals including fuel, metallic, non-metallic, and atomic minerals. • Among the minerals, reserves of coal, iron ore and bauxite are vast and will last decades. • But is India fails to take advantage of this geological windfall. • Coal extraction in the country is less than the domestic demand so we depended on coal import. • Iron ore mining is buried in even bigger problems. A politician-industry-bureaucracy nexus led to mining leases being allotted in violation of norms. • Also, in the absence of an oversight body, illegal mining became rampant and environmental considerations were disre- garded. This, in turn, led the Supreme Court to intervene. The court banned iron ore mining in Karnataka in July 2011 and in Goa in October 2012. • Bauxite mining is also caught up in land acquisition and environmental issues. And no new bauxite mine has come up in the last 25 years.

Mining related issues • The Mines and Mineral (Development and Regulation) Act, 1957 and its MMDR Amendment Act, 2015 governs mining in India. • There have been problems in acquiring land for new mines and delays in government approvals. • Increased judicial scrutinies following corruption scandals in the allotment of mining blocks and environmental degradation caused by illegal mining have made matters worse. • Lack of transparency in policies is fuelling corrupt practices. • No new exploration sites have been found. • Environment and forest clearances and land acquisition prob-

www.amritaias.com | [email protected] | +91 85890 60000 209

lems pose the biggest challenges to mining. • As many as 65,337 mining applications are pending with states, apart from those with the Centre. The central government says the decision on granting mining permits lies with state governments while the states blame a policy paralysis at the Centre for their indecision.

Probable solutions • A simple and transparent policy for natural resources, auc- tioned through a revenue-sharing model, can be a win-win situation for the government, industry and the people • The government should also replace outdated mining laws. • National Mineral Policy (2006) • An independent regulatory regime is a prerequisite before the government can think of allowing private players into commercial exploitation of resources.

Schemes for welfare of mining affected I. District Mineral Foundation (DMF) »» Set up as a trust under Mines and Minerals (Development and Regulation) Amendment bill 2015. »» District Mineral Foundation (DMF) is a trust set up as a non-profit body, in those districts affected by the mining works. »» DMF aims to work for the interest and benefit of persons and areas affected by mining related operations. »» It is funded through the contributions from miners. »» Its manner of operation comes under the jurisdiction of the relevant State Government. »» Mining related operations largely affect less developed and very remote areas of the country, and vulnerable sections of the population, especially Scheduled Tribes.

www.amritaias.com | [email protected] | +91 85890 60000 210

II. The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) »» PMKKKY has been launched by the Government which will be implemented through funds collected under DMF. »» Provide welfare to areas and people affected by mining related operations. »» PMKKKY is implemented by the DMF. »» Implement various developmental and welfare projects/ programs. »» Minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts. »» Ensure long-term sustainable livelihoods for the affected people. »» All areas directly and indirectly affected by mining related operations are covered under PMKKKY.

www.amritaias.com | [email protected] | +91 85890 60000

212