9 PM Daily Current Affairs Brief – January 10th, 2022

Mains Oriented Articles

GS Paper 1

• Solving migrant workers’ housing crisis

GS Paper 2

• Control rather than Privacy
• Discretionary powers of the governor: Some Raj Bhavans are on the war path
• Unchanged: On EWS quota income norm
• NFHS-5: Reading NHFS-5 data to understand India’s health, population outlook
• Health Infrastructure: PM bats for health infra at district level
• Tuberculosis(TB): We can’t afford to neglect TB care
• Why India Needs A Fiscal Council

GS Paper 3

• Worry about middle India
• India climbing up the ladder of emerging tech patents, shows data
• What GDP data says about state of economy, its influence on budget priorities
• On Track For 2070 Net Zero Target
• Pay for news: CCI’s Google probe must lead to rules on tech sharing much more revenue with news publishers
• On Financial Resolution and Deposit Insurance (FRDI) Bill : Orderly failure options will help Indian financial firms flourish
• The baton of forest restoration in the net zero race

Prelims Oriented Articles (Factly)

• New bridge to connect India, Nepal to come up in Dharchula
• Why did the Maya civilization collapse? We don’t know yet, but drought was likely not the cause: Study
• Indo US Trade- Commerce gets a fillip with improving Agri Market Access
• INS Vikrant sea trials take it one step closer to its commissioning
• Veer Baal Diwas: PM announces 26th December as ‘Veer Baal Diwas’ to mark martyrdom of Sahibzada Zorawar Singh Ji and Sahibzada Fateh Singh Ji
• Startup India Innovation Week: Centre to organize the FIRST EVER Startup India Innovation Week from 10th -16th of January 2022
• 24th National Conference on e-Governance 2021 successfully concludes at Hyderabad
• Synapses: NCBS: Zebrafish study reveals how the brain makes its connections

Mains Oriented Articles

GS Paper 1

Solving migrant workers’ housing crisis

News: Urbanisation and the growth of cities in India have been accompanied by pressure on basic infrastructure and services like housing, sanitation and health.Maharashtra and Uttar Pradesh are the two states with an acute housing crisis. The migrant workers, and their families, are the ones who bear the brunt of this problem. As per the Census of 2011, there are about 4.5 lakh houseless families, a total population of 17.73 lakh, living without any roof over their heads.  

Shelter, being a basic human need, and the fact that migrant workers are in dire straits due to the pandemic, immediately demands policy intervention by the government.

What are the issues migrant workers face in terms of housing? 

Especially vulnerable to this issue are the migrant workers, who live in extremely unsafe conditions. 

For them, their workplace is their place of lodging too. These places are often unhygienic and poorly ventilated.  

They mostly live in slums and have access only to the poorest infrastructure and services.  

According to a 2020 ILO report on internal labour migrants, the absence of dignified housing is further aggravated by a lack of adequate water, sanitation and hygiene (WASH) facilities. 

How has the pandemic made the situation worse? 

These places where migrants stay lack any means to maintain proper social distancing. 

The wage and job loss during the pandemic made them unable to afford the rental housing. 

According to a survey conducted by Azim Premji University, around 88% of migrants reported that they could not pay the rent for April and May 2020. 

What have been the government initiatives to tackle the problem? 

Swachh Bharat Abhiyan: Even though there has been an installation of public toilets through Swachh Bharat Abhiyan, their availability may not be adequate in migrant-dense clusters. 

Smart cities initiative: More about it here. Although, Govt’s data shows that 49% of 5,196 projects for which work orders were issued across 100 smart cities in India remain unfinished. 

AMRUT: Efforts like the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) launched in 2005 intended to make the process of urbanisation smooth. It is now in its second phase to make cities water-secure and provide better amenities for the marginalised. 

Atmanirbhar Bharat package: Rs 20 lakh crore Atmanirbhar Bharat package announced by the government in May 2020 included the provision of affordable rental housing complexes (ARHC) for migrant workers/urban poor. The plan was to convert government-funded housing in the cities into ARHCs through PPPs, and provide incentives to various stakeholders to develop ARHCs on their private land and operate them.  

What is the way forward? 

While developing social rental housing, the state should ensure that the location has proper access to transport networks, education and healthcare. 

The working group by NITI Aayog constituted to study internal labour has recommended that rental housing in the public sector could be expanded through the provision of dormitory accommodation. This would make public housing affordable and reduce the conflict between owners and tenants. 

Also, government should ensure that innovative policymaking initiatives reach their set goal in time. 

GS Paper 2

Control rather than Privacy

News: The Puttaswamy judgment and the Justice B.N. Srikrishna committee report led to the introduction of the Personal Data Protection Bill of 2019. 

The bill was sent to a joint parliamentary committee for further scrutiny, which has now submitted its report.  

Although there are some concerns regarding the same. 

What are the concerns regarding the joint committee report on personal data protection bill? 

Greater compliance burden on private sector: Report has divided the digital world into two domains — government and private, and puts a greater burden on private sector to comply with the privacy norms while almost exempting the state from the same. 

– Clause 35 exempts government agencies from the entire Act itself. Clause 12 states that personal data can be processed without consent for the performance of any function of the state. The issue is that this is an umbrella clause that does not specify which ministries or departments will be covered. 

– In one of the clause of the bill, it states that, “harm includes any observation or surveillance that is not reasonably expected by the data principal”. This means if that someone faced a data breach situation as a consequence of their own action of say suppose installing an app or a software then the privacy clause will not apply there. This clause can be used against the data principals. 

Data protection authority: The act also talks about a Data protection authority (DPA). The conditions of appointment of the DPA also raise concerns. 

Although the Justice Srikrishna committee report provided for a judicial overlook in the appointments of the DPA, the  bill approved by the committee rests the  power to appoint the panelists vests with the Central government. 

Clause 86 bounds the authority to follow the directions of the Central Government under all cases, and not just on questions of policy. 

– Also, appointment of the authority violates the principle of federalism. Because the issue involves internal data flow and the States are key stakeholders in the process. Apart from this ‘public order’ is an entry in the State List (which can be one of the reasons on which directions to allow processing of data can be issued), this makes involving states also important. 

Non-personal data: The committee has included the non-personal data within the ambit of the Bill. 

This will put a lot of burden on the MSME sector and small businesses, as technical processes involving data-sharing are very expensive.  

Government-constituted panel headed by S. Gopalkrishnan also opposed the idea of including non-personal data in the Bill as Mandatory data localisation will according to some estimates squeeze the economy by 0.7-1.7%.  

Discretionary powers of the governor: Some Raj Bhavans are on the war path

News: There have been some incidents that show the friction between the delicate relationships of the constitutional head of state and the elected government.

What were the incidents all about?

Maharashtra: Governor refused to accept the date of election of the Speaker recommended by the State government.

However, this refusal goes against the principle of constitutional government. Under Article 178, the constitution did not assign any role to the governor in the election of the speaker. It is the house rule which says the governor shall fix the date. So, if the governor refused to accept the date of the election, the house can make amendments to that particular rule which empowers the governor to fix the date. It is the first time in the history that governor refused to fix the date of the election and so the election has not been held

Kerala: Governor alleged that he made the reappointment of Vice-Chancellor of Kannur University under the pressure of the Kerala government. Although, the reappointment has been done in accordance with the law. Further, the governor said that he does not want to hold the position of chancellor, which he got in an ex officio capacity.

This move has been in question as here the governor was not required to act on the advice of the Council of Ministers, also clarified by Supreme Court in Gopalakrishnan vs Chancellor, University of Kerala case. Here the governor can act independently, and make the choice considering the merit of the appointee before signing the appointment letter.

Other instances have been witnessed in other states like West Bengal, Rajasthan etc where the differences have been visible.

About the discretionary powers of the governor

Before independence, the governor was the absolute ruler of the province, who was answerable only to His Majesty. B.R. Ambedkar, while framing the constitution, ensured to make governor only a constitutional head and to vest executive powers in the elected government. But, at the same time, certain discretionary powers have been allotted to the government to ensure independence.

The powers of government in the constitution create some ambiguity. Article 163, which was simply re-produced from section 50 of the Government of India Act in 1935, introduced vagueness about the actual powers of the governor. This was corrected by the Supreme Court of India in Shamsher Singh(1974) case and later in Nabam Rebia (2016). The courts have held that the executive power of the governor can only be exercised with aid and advice of the council of ministers, except in exceptional circumstances.

How the governor should work?

It was seen that that confrontation takes place only in opposition-ruled states, which shows that political expediency has overtaken constitutional propriety. The governor should work in an impartial manner and should not try to create a parallel government.

In the words of Pandit Thakur Das Bhargava, “the governor will be a man above party, and he will look at the minister and government from a detached standpoint”

Unchanged: On EWS quota income norm

News: Supreme Court has allowed the commencement of counselling for postgraduate medical admissions under All India Quota scheme.

What is the background of the development?

What is the decision made by the Supreme Court?

The court has upheld the 27% quota for OBCs. However, despite several hearings and the formation of an expert committee, the controversial criteria of income capping for economically weaker sections have remained unchanged for now.

What should be the way forward?

The courts have held that the admissions process cannot be delayed further. The committee constituted to revisit the income criteria for OBC and EWS should submit its report at the earliest.

NFHS-5: Reading NHFS-5 data to understand India’s health, population outlook

News: The government of India recently released National Family Health Survey 5 (NFHS-5) data. The data shows some promising trends and some areas of concern.

What are the findings of the National Family Health Survey 5?

Population stabilization: The current levels of TFR set the stage for population stabilisation. Currently, the population growth rate is estimated to be 1.37% according to SRS(2018).

This will continue to decline, but the population will continue to grow because of population momentum resulting from a large number of people entering the reproductive age group of 15-49 years. Thus, it can be said that the UN population division’s estimate of population peaking at 165 crores around 2050 will be realized.

Sex ratio at birth: The SRB, as per the SRS report 2018, sex ratio at birth had declined from 906 in 2011 to 899 in 2018. Though NFHS-4 estimated it to be 919 in 2015–16, according to NFHS-5 estimates, SRB has increased to 929. This is encouraging. However, it has decreased in states like Tamil Nadu, Kerala, Bihar and Jharkhand among others.

Stunted children: The proportion of stunted children below the age of five has marginally declined from 38.4% to 35.4%. This has been witnessed in all states except Himachal Pradesh, Kerala and Telangana. Poor diet among children less than 23 months of age is the major cause.

Health Infrastructure: PM bats for health infra at district level

News: While putting vaccination for adolescents in “mission mode”, the Prime minister stressed the need to ensure adequate health infrastructure at the district level.

What steps should be adopted to improve health infrastructure amid Omicron?

– Government should work towards Upgrading health infrastructure, testing capacity, availability of oxygen beds and ICUs, buffer stock of essential drugs under Emergency Covid Response Package (ECRP ii)

– 31% of adolescents aged 15-18 years have received their 1st jab of vaccination. Further, the contribution of various stakeholders is required to accelerate the vaccination drive for adolescents.

– Government should ensure the availability of telemedicine to ensure the availability of health-related guidance to people in remote and rural areas.

– Awareness among people to wear masks and adoption of physical distancing methods.

– Adoption of home isolation methods for mild symptoms or in case of asymptomatic cases.

– Dissemination of factual information to the community.

Tuberculosis(TB): We can’t afford to neglect TB care

News: COVID-19 pandemic put health systems under great stress. The government announced a policy to bolster public health by pledging four new national virology institutes, nine new high containment laboratories and the National Institute of one health. Unfortunately, it did not address other infectious diseases like tuberculosis.

What is the challenge posed by tuberculosis in India?

According to WHO’s global TB report 2021, with 25.9 lakh TB cases, India is home to 25% of the global tuberculosis cases. India reported an 18% decline in case notifications. The country reported 18 lakh tuberculosis cases in 2020 as compared to 24 lakh in 2019.

Fear of Covid lockdowns, economic stress discouraged people from visiting medical facilities to notify of the disease and to get treatment.

What steps have been taken for TB elimination?

India has increased the budget to tackle disease by four times. The National Strategic Plan for TB elimination has taken initiatives towards the elimination of TB by 2025. TB elimination also requires an increased level of awareness among people.

The government has organized Active Case Finding (ACF) drives Under the National TB elimination programme. This drive is implemented systematic screening of TB among vulnerable populations and has helped in early case detection. During the pandemic in 2020, 17.9 crore people were screened and 52,273 TB cases were identified.

What should be the way forward?

A sense of community ownership and public participation is intrinsic to any TB elimination programme. Collectively, through a Jan Andolan against TB, the goal of TB Mukta Bharat can be achieved.

Why India Needs A Fiscal Council

News: Recently, the Union Minister of State for Finance in a written reply to the Parliament ruled out setting up of a fiscal council, which was recommended by the FRBM Review Committee.

It was reasoned that, there are institutions that already perform some or all of the proposed functions of the Fiscal Council. For example, the Comptroller and Auditor General (CAG), National Statistical Commission and the Finance Commission.

However, this article argues the need for institutionalising Fiscal council and its consequent benefits.

What are the functions of the fiscal council?

The 15th Finance Commission has listed a number of functions for the Fiscal Council, which are

One, providing multi-year macro-economic and fiscal forecasts.

Two, evaluating fiscal performances vis-à-vis targets across all levels of government.

Three, assessing the appropriateness and consistency of fiscal targets in the states.

Four, undertake an independent assessment of long-term fiscal sustainability.

Five, assessing fiscal policy statements by governments under fiscal responsibility legislations.

Six, advising on the conditions for using escape clauses under fiscal responsibility legislations.

Seven, policy costing of new measures with significant fiscal implications.

Eight, providing analytical support to the Finance Commissions and publishing all their reports and underlying methodologies. FRBM mechanism hasn’t delivered.

Why Setting up of the fiscal council is important?

International Experience: 30 developed and emerging market economies have found it necessary to have such an institution.  For example, Congressional Budget Office in the US, Office of Budget Responsibility in the UK, Parliamentary Budget Office in Australia.

Recommended by the 15th Finance Commission: it has argued that setting up a Fiscal Council is an essential part of the 21st century fiscal architecture.

Further, it has stated that the absence of an independent fiscal institution to assess and evaluate the fiscal plan as well as performance and forecasts published by the governments has further diminished the capacity to monitor compliance.

Case studies by the IMF and OECD: It has confirmed that independent fiscal institutions effectively complements fiscal rules in monitoring their effective implementation and have contributed to improved fiscal performances.

Work of Fiscal council is different from the work of other institutions: For example, institutions like CAG or the Statistical Commission or the Finance Commission does ex-post analysis. Whereas the Fiscal council does Budgetary forecasts to evaluate the realism of the budget estimates, and monitor progress and conformity to fiscal rules.

Fiscal Council will enhance the effectiveness of the FRBM process. The FRBM process as it exists now has several shortcomings.

For example, failure to achieve the fiscal targets, lack of credibility on budgets due to shifting goal posts, creative accounting, creating new concepts such as effective revenue deficit, off-budget financing of expenditures etc.,

Other advantages

It will safeguard against government failure.

It helps to bring in an additional layer of legislative scrutiny, raise public awareness and makes the system more comprehensive and transparent.

GS Paper 3

Worry about middle India

News: Indian has experienced a “K-shaped recovery” from the Pandemic. 

Here on one side there are booming stock prices and start-ups and on the other side there are difficulties in most households which are termed as middle level India. 

How has been the economic recovery in India? 

The situation has improved. 

After 1st wave

With positive consumer sentiment and labour market conditions, there was a rapid recovery after the lockdowns of March and April 2020. 

– Market capitalisation of the equity market has been Rs 266 trillion level. 

– Large private firms are also registering growth. 

After 2nd wave

A similar recovery has not come about after the second wave. 

The Omicron variant is likely to make things worse for a month or three of 2022. 

Although the number of persons of working age has grown steadily, many households have a lower income when compared with pre-pandemic conditions. 

What is Middle India, and How has the pandemic affected the middle India? 

Middle India refers to small businesses and people without formal sector jobs. 

– It has experienced a succession of shocks, from demonetisation to goods and services tax to the pandemic. 

– Apart from this, the recovery after the second wave was poor and now there is renewed fear due to the Omicron. 

These sustained economic stresses have led to drawing down of assets and increase in borrowing. 

A lot of households have borrowed in order to smooth consumption through the shocks of the recent years and could never have anticipated that something like the current pandemic will ever it. 

– Due to which they are facing tough loan recovery procedures, and have no recourse to individual insolvency mechanisms. 

– This may make these households reduce their consumption the most, and they may also default on their debt. 

– This can also lead to the loss of morale, and vulnerability to political radicalisation. 

The firms that sell to middle India worry about the prospects for demand growth in 2022 and 2023. This prospect of reduced margins and weak demand growth can induce weaker investment by these firms, thus influencing the overall demand conditions in the economy. 

How the setback in middle India affects the overall economy? 

There is reduced financial depth as consumption which is visible has been a result of selling assets and by borrowing.  

Fortunes of many large listed companies depend on the optimism and spending patterns of hundreds of millions of households in middle India.

For instance: In the quarter ended Sept 2019, sales were 5.59 million and two years later this was at 5.22 million, which is 6.6% lower.

The difficulties of middle India have impacted large firms making two-wheelers and their component makers. 

The difficulties faced by Middle India and the recurrent CoVID variants may cause problem of demand shortfall from middle India in 2022.  

India climbing up the ladder of emerging tech patents, shows data

News: Domestic and global companies in emerging technologies have filed over 80,000 applications in India between 2016 and 2020.

Areas ranging from Artificial Intelligence (AI), the Internet of Things (IoT), and big data to the cloud, Edge, cybersecurity, and real-time processing account for 70 percent of all technology patents.

India is now ranked 8th in terms of AI patent filing and 4th in terms of AI research papers.

Consumer electronics, personal computing devices, and healthcare are the key focus areas for patents in India in AI.

AI accounted for 6 percent of all emerging technology patents filed in the last five years.

In the vehicle infotainment, 78.85 percent of the 300 patents between 2011-2020 were filed in India in the past five years. This percentage share is the highest in any country. However, in terms of the total number of vehicle infotainment patents, India lags behind China and USA.

What are the possible reasons for the increase in patent applications in India?

Firstly, Indian and global companies see India as an important market at par with the US and China. For instance, From 2016-2020, 40 percent of the patents filed in IoT in India originated in the US.

Further, top players like chip design company Qualcomm, Xiaomi, Apple, and Alibaba have filed patents in India in the emerging ultra-wideband technology.

Secondly, India is increasingly becoming a key center for R&D in areas like AI, IoT, and electric vehicle technology.

What GDP data says about state of economy, its influence on budget priorities

News: Both the first advance estimate (FAE) and the Professional forecasters’ survey, published by the Reserve Bank of India, estimate the Indian economy to expand at 9.2 per cent in 2021-22. 

There is also an expected sharp increase in nominal GDP, which is estimated to expand by 17.6 per cent this fiscal, much faster than the 14.4 per cent growth the Union budget had assumed. 

What has led to this rise? 

Double-digit wholesale price inflation and the persistence of high consumer price inflation have led to the surge in nominal GDP and added an upside to tax collections this year. 

But these estimates may often wary. 

What may be the reason for this variation? 

These estimates are based on the limited information available till December and can typically undergo a change when new information is available. 

Emergence of the Omicron variant– Although it is yet to be seen that how will it impact it will have on the overall economy, it has certainly injected some uncertainty in the fourth-quarter. 

The National Statistical Office also states that “the First Revised Estimates for 2020-21 (benchmark year), due for release on 31.01.2022, may also lead to a revision in growth rates reflected in FAE.” 

The budget next month will need a flexible approach to account for these uncertainties. 

What does the GDP data tell us about the state of the economy? 

Weak private consumption demand and weak consumer sentiment: The share of private consumption in GDP has been falling since the pandemic struck, and the latest RBI survey confirms the weakness. Budget needs to ensure that there is revival of consumption demand as it will lead to revival of investments. 

GDP in construction is barely above its pre-pandemic level, while trade, hotels, tourism and other contact-based services, which are also labour-intensive, lag the pre-pandemic levels. 

Omicron will again hit and delay the normalisation of employment in these segments. These activities are largely urban-centric and will likely need hand-holding from the budget. 

There has been a rising demand for the MGNREGA jobs which means a lack of rural employment opportunities. Additionally, rural wages for agriculture and non-agriculture have been very low in real terms. 

Weak tractor and motorcycle demand mirror the weakness in the rural economy.  

What must be budget priorities? 

The budget will need to extend support to rural areas till the situation normalises. 

Union Budget should also ensure that there is infrastructure-focused capital expenditure, as this has a higher multiplier effect on the economy and is known to crowd-in private investments. 

Together with higher allocations, attention should also be paid to enhancing execution capacity. 

Fiscal policy (Budget) needs to play a supportive role while aiming for a reduction in deficits over the medium run.   

It also needs to ensure that the divestment targets are attainable as this it will improve the fiscal space for the government which it can use to support the economy.  

On Track For 2070 Net Zero Target

News: India’s announcement to reach net-zero emissions by sourcing 50% of its electricity from renewable energy by 2030 is a significant moment for the global fight against climate change.

Why it is imperative for India to achieve net-zero emissions?

India’s economic growth has been among the highest in the world over the past two decades. However, the rapid growth has also resulted in the increase of fossil energy consumption. This has increased India’s annual CO2 emission. Currently, India is the third-highest emitter in the world.

Further, energy demand is set to grow more than any other country in the coming decades.

How is India’s progress so far w.r.t clean energy transition?

It has overachieved its commitment made at COP21 in Paris by already meeting 40% of its power capacity from non-fossil fuels almost nine years ahead of schedule.

The share of solar and wind in India’s energy mix has grown phenomenally.

Renewable electricity is growing at a faster rate in India than any other major economy, with new capacity additions on track to double by 2026.

The country is also one of the world’s largest producers of modern bioenergy and has big ambitions to scale up its use across the economy.

The International Energy Agency (IEA) expects India to overtake Canada and China in the next few years to become the third-largest ethanol market worldwide, after the US and Brazil.

What are the existing challenges to India’s clean energy transition?

Energy security risks: The sharp increase in commodity prices has made energy less affordable.

Lack of reliable electricity supply for many consumers.

Continued reliance on traditional fuels for cooking: It causes unnecessary harm to many people’s health.

Financially ailing electricity distribution companies: it is impeding the urgent transformation of the sector.

High levels of pollution: it has left Indian cities with some of the poorest air quality in the world.

What are the factors that India needs to work out for achieving net-zero?

Access to low-cost long-term capital: To reach net-zero emissions by 2070, the IEA estimates that $160 billion per year is needed, on average, across India’s energy economy between now and 2030. So, Support from the international community is essential.

Affordability, security and sustainability: Achieving net-zero is not just about reducing greenhouse gas emissions. India’s energy transition needs to benefit its citizens.

Focus on Green hydrogen: India could easily create 5 million tonne green hydrogen demand, thereby replacing gray hydrogen in the refineries and fertiliser sector. These 5 million tonnes will result in abatement of 28 million tonnes of CO2. This proportion will grow as we fructify green hydrogen economy and result in 400 million tonnes of CO2 abatement by 2050.

Pay for news: CCI’s Google probe must lead to rules on tech sharing much more revenue with news publishers

News: Competition Commission of India has ordered a probe against Google for its ‘alleged’ abuse of dominant position in news aggregation. 

This step of Indian government is followed by actions of Australian government. Australia has passed a law that required tech platforms like Google and Facebook to fairly pay local media outlets for showing their content in news feeds or search results. 

On the similar lines, France has implemented the EU’s updated copyright rules. These rules require digital platforms to compensate news publishers for previews of news content. 

Why Levy on tech giants for using News feeds is justified? 

First, an independent and financially viable media is very important for a democracy like India. Google and Facebook take away the 70-80% of advertising revenue that comes from digital consumption of news. 

Second, responsibly produced news is important against social media jungle of half-truths, lies, fake content, superstition, manipulation and hate-mongering. Thus, it is important that efforts, of producers of such news, be paid viably.  

Third, Tech giants claim providing huge traffic to the news platforms, but it works both ways. Similarly, around 40% of trending queries on Google are news-related, bringing considerable traffic to it. 

On Financial Resolution and Deposit Insurance (FRDI) Bill : Orderly failure options will help Indian financial firms flourish

News: Government is aiming to modify and re-introduce the Financial Resolution and Deposit Insurance (FRDI) Bill. 

Government is planning to modify and re-introduce the Financial Resolution and Deposit Insurance (FRDI) Bill. The bill puts in place a resolution mechanism to deal with the insolvency of firms in the financial sector. 

The bill was introduced earlier in 2016 but was withdrawn in 2018, due to controversy around  ‘bail-in’ provision. The provision distressed financial service providers with the option to restructure its debt internally. He was allowed to either write off its uninsured debt or convert deposits to other instruments such as equity. 

However, there are other concerns also associated with the bill.  

Scope of the bill: Pension funds and Housing Finance Companies (HFCs) are not clearly mentioned in the bill. So, whether FRDI provisions would be applicable to these sectors or not is ambiguous.  

Time bound payment to depositors: Financial Stability Board (FSB) advocates time-bound payments to insured depositors. This aspect should be addressed in the revised bill. 

Deposit Insurance system: International Association for Deposit Insurance (IADI) laid down ‘Core principles for effective deposit insurance systems’. It includes pay-outs be made to depositors within seven working days. FRDI bill had no mention of any such timeline, and only mentions about prompt pay-outs to depositors. The word prompt should be defined properly and not left to define per case basis on regulators.  

Coverage limit of insured deposits: Deposit insurance limit has been raised to Rs. 5 lakhs by an amendment to Deposit Insurance and Credit Guarantee Corporation Act. However, it is still abysmally low compared to the coverage limit of insured deposits of about ₹1.84 crore in the US and ₹1.5 crore in Australia. 

Immunity to officers: FRDI bill should also consider providing immunity to the directors and officers of the firm under resolution. In the absence of such immunity, challenges could arise in implementing resolution orders. 

Conflict of Interest: Operational freedom of the resolution body should be ensured. Dual role of resolution body in the resolution process as well as deposit insurance of insured service providers would result in conflicts of interest.  

Resolution: Government should prioritise creating the legal framework to encourage quick resolution of stress and insolvency. 

Bridge institutions: The bill should provide for reverse-transfer powers to ‘bridge institutions’, as available across the world. This would help in resolving even the loss-making part of the business.  

The baton of forest restoration in the net zero race

News: For carbon sequestration, India must revisit its policy framework and reverse the decreasing participation of local communities.

After India’s pledge to set a net-zero target by 2070, at the COP26 summit, Glasgow, saving forests has become much more important.

In a study by Griscom (2017), natural climate solutions that also include forests can provide up to 37% of emission reduction and help in keeping the global temperature below 2° C.

However, the degradation of existing forests continues In India. As per the State of Forests Report (1989) on average, nearly 1.57 lakh hectare of forests were degraded.

Nearly 1.5 million hectares of forests have been diverted since 1980 for developmental activities.

Anthropogenic pressures due to encroachment, grazing, fire, are rising. For instance, India has lost nearly 1.48 million hectares of forests to encroachers.

Moreover, on account of increasing poverty and unemployment, India is witnessing enormous degradation of forests and deforestation.

This warrants the participation of people to achieve the desired target of carbon sequestration through the restoration of forests.

What are the steps taken by India to involve Local communities in forest management?

National Forest Policy, 1988:  it permitted to engage local communities in a partnership mode while protecting and managing forests and restoring wastelands with the concept of care and share.

Forest development agencies: It paved the way for fund flow from various other sources to joint forest management committees. It resulted in the formation of nearly 1.18 lakh joint forest management committees managing over 25 million hectares of forest area. They implemented various projects financed by external agencies such as the World Bank.

Eco-development committees: It is a similar system of joint management in the case of national parks, sanctuaries, and tiger reserves.

It proved effective as it could attract the support of the participating communities for the protection and development of biodiversity, reduction in man-animal conflicts, and the protection of forests from fires and grazing.

What is the current issue?

Many of the Centrally sponsored programs (Project Tiger, fire management, Integrated Development of Wildlife Habitats (IDWH), Compensatory Afforestation Management and Planning Authority (CAMPA)) lacks policy support to ensure the participation of local communities via the institutions of joint forest management committees.

It slowly made their participation customary. This caused a gradual decline in their effectiveness.

The role of local institutions of gram panchayat or joint forest management committees is now restricted to be a consultative institution instead of being partners in planning and implementation.

The alienation of JFMC from the participatory planning and implementation of various schemes further affects the harmony between Forest Departments and communities, endangering the protection of forests.

What is the way forward?

There is a need to incentivise the local communities appropriately and ensure fund flow for restoration interventions.

Political priority and appropriate policy interventions as done recently in Telangana need to be replicated in other States.

Telangana has created a provision for a Green Fund/Telangana Haritha Nidhi for tree planting and related activities.

Though India did not become a signatory of the Glasgow Leaders’ Declaration on Forests and Land Use, the considerations of land tenure and the forest rights of participatory communities will help India in the race toward net-zero.

Prelims Oriented Articles (Factly)

New bridge to connect India, Nepal to come up in Dharchula

Source: This post is based on the article “New bridge to connect India, Nepal to come up in Dharchula” published in the Indian Express on 10^th January 2022.

What is the News?

The Union Cabinet has approved the Memorandum of Understanding (MoU) between India and Nepal to build a bridge over the Mahakali river.

Where will the bridge be constructed?

The bridge will be built over the Mahakali river. It will link Dharchula in Uttarakhand with Nepal’s Dharchula.

The construction of the bridge will be completed within three years.

Significance: This will be the second motor bridge on the India-Nepal border in Uttarakhand. The other one, the Banbasa bridge, is situated in the Champawat district.

About Mahakali River

The Mahakali River, also called Sharda and Kali River originates at Kalapani in the Himalayas in the Pithoragarh district in Uttarakhand.

The river flows along Nepal’s western border with India. It joins Ghaghra River, a tributary of the Ganges.

Mahakali Treaty: It is an agreement between the Government of Nepal and the Government of India regarding the integrated development of the Mahakali River. The treaty was signed in 1996.

The treaty recognizes the Mahakali River as a boundary river between the two countries.

Why did the Maya civilization collapse? We don’t know yet, but drought was likely not the cause: Study

Source: This post is based on the article “Why did the Maya civilization collapse? We don’t know yet, but drought was likely not the cause: Study” published in the Down To Earth on 10^th January 2022.

What is the news?

A recent study reveals that drought was likely not the sole reason for the collapse of the ancient Mayan civilization.

What is Maya Civilisation?

Maya civilization was a Mesoamerican civilization. The civilization originated in the Yucatan Peninsula.

The civilization developed in the area that today comprises southeastern Mexico, all of Guatemala and Belize and the western portions of Honduras and El Salvador.

The civilization was known for its monumental architecture and an advanced understanding of mathematics and astronomy.

The civilization flourished between 600 and 800 AD. However, between 800 and 950 AD, many of the cities of civilization were abandoned. This period is called the collapse of the Classic Maya civilisations.

Why was this study conducted?

Based on evidence from the past, Scientists think that this period saw significant droughts. This led to a theory that the Maya people faced starvation because of their dependence on drought-sensitive crops such as corn, beans and squash. 

However, several scientists were not convinced with the drought theory. That’s why this study was conducted.

How was the study conducted, and what are the findings?

Scientists made a list of 497 indigenous food plants of the Maya lowlands. These plants have also been identified through paleoethnobotany, a branch of science dealing with behavioural and ecological interactions between past humans and plants.

They examined the drought tolerance of the plants under three different scenarios: Short-duration, medium-duration and extreme drought.

Even in extreme situations, many plants persisted.

Based on this, they said that drought was likely not the sole reason for the collapse of the ancient Mayan civilization. The researchers think that social and economic upheaval also likely have played a role. 

Indo US Trade- Commerce gets a fillip with improving Agri Market Access

Source: This post is based on the article “Indo US Trade- Commerce gets a fillip with improving Agri Market Access” published in the PIB on 10^th January 2022.

What is the News?

In accordance with the discussions at the 12th India – USA trade policy forum meeting, India and the United States have signed the framework agreement for implementing the “2 Vs 2 Agri-Market Access Issues”.

What are 2 Vs 2 Agri-Market Access Issues?

Under this deal, two Agricultural Products from India will be exported to the US. Similarly, two American products will be imported to India.

From the Indian Side, Indian mangoes & pomegranate have been chosen for export to the USA while the US will export cherries and Alfalfa hay to India.

India-United States Trade Policy Forum (TPF)

India-United States TPF is a premier forum to resolve trade and investment issues between the two countries.

The forum is co-chaired by the Indian Minister of Commerce and Industry and U.S. Trade Representative.

The forum has five focus groups – agriculture, investment, innovation and creativity (intellectual property rights), services, and tariff and non-tariff barriers

INS Vikrant sea trials take it one step closer to its commissioning

Source: This post is based on the article “INS Vikrant sea trials take it one step closer to its commissioning” published in the Business Standard on 10^th January 2022 

What is the News?

INS Vikrant is heading out to sea for its third set of sea trials.

What is INS Vikrant?

INS Vikrant is India’s first indigenously built aircraft carrier (IAC-1).

The aircraft carrier was built by the Cochin Shipyard Limited (CSL) for the Indian Navy. 

​​It is named ‘Vikrant’ as a tribute to India’s first aircraft carrier, Vikrant (R11). 

Key Features of INS Vikrant

The ship can operate a mix of aircrafts like Russian MiG-29K/KUB fighters, Kamov-31 helicopters and a new fleet of Sikorsky MH-60R Seahawk multi-role helicopters.

Type of Aircraft Carrier: STOBAR (short take-off but arrested landing)

When is INS Vikrant going to be inducted?

Currently, the Indian Navy operates a single aircraft carrier, INS Vikramaditya, which was bought from Russia. 

INS Vikrant is scheduled to be commissioned into service by August 2022.

After this, the Indian Navy is planning a second indigenous aircraft carrier (IAC-2), to follow INS Vikrant. It is believed that the IAC-2 will be named INS Vishal.

Veer Baal Diwas: PM announces 26th December as ‘Veer Baal Diwas’ to mark martyrdom of Sahibzada Zorawar Singh Ji and Sahibzada Fateh Singh Ji

Source: This post is based on the article “PM announces 26th December as ‘Veer Baal Diwas’ to mark martyrdom of Sahibzada Zorawar Singh Ji and Sahibzada Fateh Singh Ji” published in the PIB on 9th January 2022 

What is the News?

The Prime Minister has announced that 26th December shall be observed as ‘Veer Baal Diwas’ to mark the martyrdom of Sahibzada Zorawar Singh Ji and Sahibzada Fateh Singh Ji.

Who were Sahibzada Zorawar Singh Ji and Sahibzada Fateh Singh Ji?

Sahibzada Zorawar Singh and Sahibzada Fateh Singh were the sons of Guru Gobind Singh. They are remembered as among the most respected martyrs in Sikhism.

How did they die?

A combination of Mughals and hillmen besieged Anandpur Sahib on the orders of emperor Aurangzeb. 

The Mughals promised to leave the Sikhs alone if they would hand over the fortress of Anandpur Sahib. To this, Guru Gobind Singh agreed and left the town with his family.

However, the Mughals broke their promise and attacked them. Guru Gobind Singh entrusted his two sons, Jorawar (9 years old) and Fateh (7 years old) as well as his mother, Mata Gujri, to the care of a cook in his household named Gangu.

However, the cook, bribed by Mughals, betrayed the family. The family was then brought to Sirhind in the presence of Wazir Khan, the Nawab of Sirhind.

The two sons of Guru Gobind Singh were offered safe passage if they became Muslims. Both refused, and so Wazir Khan sentenced them to death. They were bricked alive.

Who was Guru Gobind Singh?

Guru Gobind Singh was the 10th Sikh guru. He was born in Patna, Bihar in 1666. He became the Sikh guru at the age of nine, following the demise of his father, Guru Tegh Bahadur, the ninth Sikh Guru.

He founded the Sikh warrior community called Khalsa in 1699. He introduced the turban to cover the hair along with the principles of Khalsa or the five ‘K’s.

He laid the rules of Khalsa warriors, like abstaining from tobacco, alcohol, halal meat, and imbibing the duty of protecting innocent people from prosecution.

He named Guru Granth Sahib as the religious text of the Khalsa and the Sikhs. He fought against the Mughals in the Battle of Muktsar in 1705.

He also wrote the Zafarnama which was a letter to the Mughal Emperor Aurangzeb.

Startup India Innovation Week: Centre to organize the FIRST EVER Startup India Innovation Week from 10th -16th of January 2022

Source: This post is based on the article “Centre to organize the FIRST EVER Startup India Innovation Week from 10th -16th of January 2022” published in the PIB on 9th January 2022 

What is the News?

Department for Promotion of Industry and Internal Trade (DPIIT) is organizing the first-ever Startup India Innovation Week.

What is Startup India Innovation Week?

Aim: To commemorate the 75th year of India’s independence ‘Azadi Ka Amrit Mahotsav’ and to showcase the spread and depth of entrepreneurship across India.

Objectives: a) Bring together key startups, entrepreneurs on one platform to discuss best practices b) Encourage and Inspire Youth for Entrepreneurship c) Provide market access opportunities to startups and d) Mobilize capital for investment into startups.

Themes: The event is being organized on various themes such as Academia & Mentorship Support to Startups, Incubation and Acceleration Support to Startups, Market Access through Corporates & Government to Startups and Funding & International Avenues to Go Global.

About India’s Startup Ecosystem

India is the world’s third-largest startup ecosystem. It has recognised more than 61,000 startups as of date. 

These startups are spread over 633 districts, with at least one startup from every State and UT of the country. 45% of the startups in India are from Tier-2 and Tier-3 cities, and 45% of them are represented by women entrepreneurs.

24th National Conference on e-Governance 2021 successfully concludes at Hyderabad

Source: This post is based on the article “24th National Conference on e-Governance 2021 successfully concludes at Hyderabad” published in the PIB on 10th January 2022 

What is the News?

The 24th National Conference on e-Governance 2021 has successfully concluded.

What is the 24th National Conference on e-Governance?

Organized by: Department of Administrative Reforms & Public Grievances (DARPG) and Ministry of Electronics & Information Technology (MeitY) in association with the State Government of Telangana.

Purpose: The conference provides a platform for Government officers, industry stalwarts and researchers to share best practices, the latest technology developments so that we can use them for achieving effective governance and public service delivery.

Theme: “India’s Techade: Digital Governance in a Post Pandemic World”.

At the conference, the National Awards for e-Governance are presented for exemplary implementation of e-Governance initiatives to recognize and promote excellence in the implementation of e-Governance initiatives.

Hyderabad Declaration: At the conference, the ‘Hyderabad Declaration’ on e-Governance was adopted. The declaration aims to bring citizens and governments closer through digital platforms and transform citizen services through the use of technology.

Synapses: NCBS: Zebrafish study reveals how the brain makes its connections

Source: This post is based on the article “NCBS: Zebrafish study reveals how the brain makes its connections” published in The Hindu on 10th January 2022 

What is the News?

Researchers at the National Centre of Biological Sciences, Bengaluru, have studied Zebrafish to understand how Synapses are formed.

What are Synapses?

Neurons, or nerve cells in the brain, connect by means of junctions known as synapses through which they also transmit signals.

Types of Synapses

Chemical Synapses: In this, there is a space of about 20 nanometres between two neurons and the way they communicate is this: One neuron converts the electrical signal into chemical signals and this chemical is released into the synaptic space and the receiving neuron converts the chemical signal back into an electrical signal. 

Electrical Synapse: In this, the two neurons have a physical connection and the conversion of electrical to chemical need not occur, and they communicate directly. Electrical synapses are like a physical wire, communication is faster, but they are also fewer in number.

What was the study conducted by Researchers? 

It is known that electrical synapses are formed before chemical synapses. Electrical synapses are like a blueprint in which neurons make a handshake. This results in the making of chemical synapses. 

Research on organisms such as leeches showed that if one can remove electrical synapses, the chemical synapses do not form. However, the mechanism of how it happens in higher organisms such as vertebrates was not known.

Researchers have chosen Zebrafish as a model organism to study this process.(Zebrafish are transparent, and neuron development in larval zebrafish can be observed from day to day by injecting a dye or by engineering the fish to express fluorescent proteins).

What did the researchers find out?

The researchers found that knocking out a particular protein known as the gap junction delta 2b (gjd2b) in the cerebellum of zebrafish affected levels of the enzyme CaMKII. Levels of CaMKII were seen to increase in the Purkinje neurons in the cerebellum.

While zebrafish have about 300-400 Purkinje neurons, humans have thousands of these. In humans, for example, excess abuse of alcohol leads to damage of Purkinje neurons, which results in a lack of coordination in movement.

Moreover, the researchers found that in the absence of gap junction protein, CaMKII levels prematurely increase. Due to this, chemical synapses do not form.