9 PM Daily Current Affairs Brief – January 18th, 2023

Mains Oriented Articles

GS PAPER - 2

Democide, step by step

Source– The post is based on the article “Democide, step by step” published in The Indian Express on 18th January 2023.

Syllabus: GS2- Polity

Relevance– Democracy and its different forms

News– The article explains the challenges and threats to democracy in recent times.

What are challenges before democracy in current times?

Inflation and middle class anxiety is increasing. Breaking party systems, Populism and demagogues are creating threats for democracy. There is increasing bigotry, religious intolerance, and media untruths.

There has been a spate of violent attacks against elected governments. Washington witnessed a well-organised mob assault on the Capitol Hill by thousands of protesters.

In Frankfurt, a 20,000-strong network of far-right extremists known as Reichsbürger, was arrested on suspicions of leading a plot to storm parliament and violently overthrow the elected government.

In Brazil, thousands of pro-Bolsonaro citizens invaded and occupied the Three Powers Square.

What are threats to the destruction of democracy?

Democracy can be destroyed in multiple ways, in different tempos. There’s no single Iron Law for it.

Democracy can perish more gradually through high-level political plots and behind-the-scenes manoeuvrings. The military coup against the elected governments of Egypt, Myanmar, Chad, Mali, Guinea and Sudan during the past decade are examples.

Then there is the populist road to destruction of democracy. It is slower destruction. Populist demagogues take years to win out, to prove that ballots can be used to ruin democracy just as effectively as bullets.

The cases of Hungary and Serbia suggest that around a decade is required for populist governments to have ruinous effects on democratic institutions.

Democracies can perish in still other ways, and even more gradually. Different explanations of destruction of democracy neglect civil society and environmental foundations on which any given democracy rests. Democide can happen through the slow-motion convergence of social deprivation and environmental decay.

The slowest form of democide is the most lethal. It happens when citizens and their chosen representatives become victims of thoughtlessness. It stops them from seeing extreme weather events and other environmental catastrophes that breed power grabs and get people used to emergency rule.

What is true democracy?

Democracy is much more than pressing a button on a ballot paper. It goes beyond the election results, majority rule and lists of minority rights. It can not be reduced to lawful rule through independent courts or attending local public meetings.

Democracy is a whole way of life that has delicate geo-social foundations that can not be ignored.

 

New rules on online gaming

Source: The post is based on the article “New rules on online gaming” published in Indian Express on 18^th January 2023.

Syllabus: GS 2 –

News: Recently, Union Ministry of Electronics and IT released the draft rules for online gaming for public consultation.

About the new rules

Need for new rules?

India’s share of the global online gaming industry is currently just 1 per cent. However, it is expected to rise at a very high pace.

According to industry estimates, in 2020, the worth of India’s online gaming industry was around $1.8 billion. With a 38 per cent compounded annual growth rate (CAGR), the industry is expected to grow to $5 billion by 2025.

There are about 400 million online gamers in India and their numbers are expected to grow to 450 million by 2024.

The self-regulatory approach could help attract investments that has, been very subdued due to the variety of conflicting legal positions across states.

WHat more can be done?

The regulatory approach will have to target the menace of offshore gambling platforms and illicit entities that advertise their products in several media. The onus is on the SROs to ensure a healthy ecosystem for online gaming.

 

The illogical rejection of the idea of South Asia

Source– The post is based on the article “The illogical rejection of the idea of South Asia” published in The Hindu on 18th January 2023.

Syllabus: GS2- India and its neighbourhood- Relations

Relevance– Regional cooperation in South Asia

News- The article explains the challenges and obstacles for regional cooperation in South Asia. It suggests the solution for boosting regional cooperation in the region.

What are the main points of a recent World Bank study on air pollution in South Asia?

It concludes that about two million people die prematurely in South Asia each year. Particulate measure concentrations put nine South Asian cities among the world’s top 10 worst affected by air pollution.

In Bhutan, the average PM_2.5 concentration from 2018-2020 was three times World Health Organization-prescribed limits.

The solution to the problems of air pollution lies in a “whole of region” approach. South Asian countries should begin talks between scientists, officials and leaders to create a mechanism for the cooperative management of air pollution.

What are the challenges faced by the South Asian region?

Climate change crisis led to floods in Pakistan. The Ukraine war has increased the cost of procuring energy, grain, fertilisers.

There are chances of persistent global economic recession. South Asia is facing threats from variants of the COVID-19 virus, terrorism, especially arising from the Taliban takeover of Afghanistan.

The Region has failed to build a regional defence to the issues arising from Russia’s invasion of Ukraine and NATO sanctions, trade ban and weapons stockpiling. South Asia has missed the chance to build an energy “cartel” that can command a better price for the region.

Bangladesh, Pakistan and India buy more than 50% of their liquefied natural gas through the spot market. It is an indicator of their vulnerability to global energy trends.

What are the obstacles for regional cooperation in South Asia?

Pakistan has refused talks with India. It has missed out on being part of the South Asia energy grid that is boosting regional connectivity within BBIN grouping.

India and Pakistan continue to hold up the SAARC Summit for nearly a decade. If New Delhi can virtually hold a special meeting for the “Global South”, there is no reason why it cannot convene or participate in a regional dialogue.

They have missed opportunities for regional cooperation in health security. Although, India has worked bilaterally with most of its neighbours to provide COVID-19 medicines.

 

In light of China-Russia alliance and Ukraine conflict, India and the new Eurasia

Source: The post is based on an article “In light of China-Russia alliance and Ukraine conflict, India and the new Eurasia” published in The Indian Express on 18^th January 2023.

Syllabus: GS 2 – International Relations

Relevance: changing relations between Asia and Europe

News: The article discusses the changing geopolitical scenario between Asia and Europe.

How is the geo-politics between Asia and Europe changing?

Japan – The PM of Japan is determined to build strong military partnerships with Europe. He has also said that the security of Europe and the Indo-Pacific is indivisible.

South Korea – it is also joining the party by raising its profile in Europe. For example, it is selling major weapons platforms in Poland.

Australia – It has joined the US and UK in the AUKUS arrangement, and is equally eager to bring Europe into the Indo-Pacific.

Together Japan, South Korea and Australia are bridging the divide between Asia and Europe which was once seen as separate geopolitical areas.

Moreover, the partnership between Asia and Europe has increased by Russia’s war in Ukraine and due to the alliance between Russia and China. Thus, leading to the emergence of a new Eurasia.

How did the ties between Russia and China help in the emergence of new Eurasia?

Putin signed an agreement with China declaring an alliance “without limits” and no “forbidden areas”.

China in the past tried to make an alliance with Europe but was unsuccessful in that. So, it joined Russia by blaming NATO for the crisis in Ukraine.

However, their alliance resulted in strengthening the Western alliance in Europe and emergence of a new kind of Eurasia — an alliance between China’s East Asian neighbours and Russia’s West European neighbours.

Further, the US invited key Asian partners to participate at the NATO summit held in June last year.

The prime ministers of Australia, Japan and New Zealand as well as the president of South Korea joined the summit. This was the first time that Asian leaders joined NATO deliberations.

It is expected that NATO’s engagement with Indo-Pacific issues and East Asia’s engagement with European security will continue to be new features of Eurasian geopolitics.

Moreover, the US is eager to encourage its partners, including India, to build their capabilities and strengthen regional balances of power in Europe and Asia.

How did the alliance between Russia and China impact Japan?

Japan, which has faced a bilateral maritime territorial dispute with China and looking at China’s expansionary policies, changed its security policy.

It has planned to double annual defence spending over the next five years, and build a large missile arsenal to deter China and North Korea.

It also wants to revive its domestic defence industry as well as build military capacities on the Chinese border by exporting arms.

What are the implications for India due to the emergence of new Eurasia?

The emergence of new Eurasia brings challenges for India. Earlier, India had a maritime coalition (the Quad) in the Indo-Pacific and at the same time had continental coalitions led by Russia and China.

However, the conflict between the US, Europe, and Japan on the one hand and China and Russia on the other will bring challenges for India in balancing its relation with these countries.

Further, the alliance between Russia and China will bring more challenges to India towards its security policies.

However, in presence of these events the relation of India with the US. Europe, Japan, South Korea and Australia have become stronger.

 

India’s new proposal for migrant voting

Source: The post is based on an article “India’s new proposal for migrant voting” published in The Hindu on 18^th January 2023.

Syllabus: GS 2 – Electoral Reforms in India

News: The Election Commission of India (ECI) has announced that it has developed a prototype for a Multi-Constituency Remote Electronic Voting Machine (RVM). However, the ECI could not demonstrate a prototype of RVM.

Functioning of Present EVMs

The use of EVMs started in 1992 and it is in use in all Lok Sabha and State Assembly elections since 2000.

The latest version M3 model started manufactured from 2013. From 2017, the use of VVPATs has become universal in elections.

Read more

Concerns associated with EVMs

EVMs autenticity should be machine-independent, or software and hardware independent. It means, that even if the voting machine is tampered, the same should be detectable in an offline audit.

Presently VVPAT is the mechanism to ensure the above. However, it has its own set of problems as per as per Former IAS officer Kannan Gopinathan.

VVPAT printout appears behind the VVPAT’s glass for seven seconds. it does not mean they have verified it. Presently, if a voter gets a wrong slip, she/he can test vote in the presence of an election officer. But if the test vote is correct, the voter can be penalised or even prosecuted.

Considering the fact that VVPAT generate voting slips, it has to be refilled with slips, which requires it to be connected to a laptop. It questions the ECI’s claim that the EVM-VVPAT system is not connected to any external device.

Mr. Gopinathan states in his report that a fixed number of votes cast at the beginning of the polls in each polling station to know its proper functioning. But a hack can easily bypass the first few votes, thereby preventing detection of foul play.

Is RVM different to EVM?

The EC states in its concept note that the Multi-Constituency RVM for migrant voting will have the same security system and voting experience as the EVM. Therefore, it will have similar challenges.

Second, the commission repots that RVM can handle multiple constituencies (up to 72) from a single remote polling booth. It will have an Electronic dynamic ballot display instead of fixed ballot paper sheet. This would raise questions about how these new devices communicate with each other.

Third, RVM will present logistical and administrative challenges besides the technichal ones.

 

New free foodgrain scheme as an illusion, doublespeak

Source– The post is based on the article “New free foodgrain scheme as an illusion, doublespeak” published in The Hindu on 18th January 2023.

Syllabus: GS2- Issues related to poverty and hunger. GS3- Food security

Relevance– Food security Act and related schemes

News– The article explains the recently announced new version of Pradhan Mantri Garib Kalyan Anna Yojana.

Under the new avatar of the Pradhan Mantri Garib Kalyan Anna Yojana, NFSA beneficiaries will receive five kilos of free food grains every month in 2023.

What is the difference between the earlier format and the new format of the scheme?

The only difference is that now a family of five can collect 25 kg for free. Earlier, under this scheme, they get 25 kg free under the PMGKAY and 25 kg at ₹3 under the NFSA.

So, a family will now have to purchase the remaining 25 kg from the market at the cheapest possible price of ₹450. It implies an additional expense of ₹375 to their monthly budget.

What are the issues with PMGKAY?

Election angle– The latest scheme seems politically motivated to appeal to voters in nine States that go to polls in 2023.

The Indian political landscape is impacted by ethnic heterogeneity and increasing electoral competition. In this scenario, all political parties prefer to differentiate themselves based on such patronage politics.

More than 20 central government programmes have been named or renamed to credit the ‘Pradhan Mantri’.

Exclusion related issues– The PMGKAY lacks universal coverage. The ration records have not been updated since the 2011 Census. At least 100 million beneficiaries, especially children born in the last decade, are missing from ration.

As per estimates, more than 40% of India’s population is currently excluded from both the NFSA and PMGKAY.

The most marginalised castes and communities, especially migrants, sex workers, the homeless and transgender persons are often without NFSA ration cards.

Undermining MGNREGA–

The scheme is being systematically undermined by acute Budget cuts, delayed payments and technological hurdles. In the period 2022-23, only 57 million households received NREGA work unlike 73 million last year.

 

Sutlej-Yamuna Link and Inter-State Water Disputes in India – Explained, pointwise

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Introduction

A meeting was help between the Chief Ministers of Punjab and Haryana in the presence of the Union Jal Shakti Minister. The agenda of the meeting was to resolve the Sutlej-Yamuna Link Canal dispute. The dispute between Punjab and Haryana has been festering since the 1960s, and various efforts to resolve the issue have failed. This dispute is not an isolated case. A lot of Inter-State Water Disputes have been festering among various States for a very long time without a possible solution in sight. There are multiple Constitutional and Statutory arrangements to address such disputes. However, these mechanisms have failed due to various institutional and political factors. Prolonged Inter-State Water Disputes do not augur well for the national unity and security. Hence, all stakeholders should engage constructively with each other for the settlement of such disputes.

What is the Sutlej-Yamuna Link (SYL) Dispute between Punjab and Haryana?

1955: The waters of the the Ravi and Beas rivers were calculated at 15.85 million acre feet (MAF), and divided among Rajasthan (8 MAF), Undivided Punjab (7.2 MAF) and Jammu and Kashmir (0.65 MAF).

1966: The water dispute started in 1966, when the Punjab Reorganisation Act divided erstwhile Punjab into the states of Punjab and Haryana. The Sutlej Yamuna Link Canal, a 211-km-long proposed canal connecting Sutlej and Yamuna, was planned in 1966 after Haryana was carved out of Punjab. 121 km stretch of the canal was to be constructed in Punjab, and another 90 km in Haryana.

1980: Haryana completed the project in its territory by June 1980, the work in Punjab, though started in 1982, was shelved due to protests by the opposition led by Shiromani Akali Dal (SAD).

1982: The construction work for the SYL canal was launched by then Prime Minister in April 1982 near Kapoori village of Punjab’s Patiala district.

1985: In July 1985, amidst the insurgency in Punjab, the then Prime Minister signed an accord with SAD, agreeing to set up a new tribunal to assess the sharing of water. The Eradi Tribunal headed by Supreme Court Judge V Balakrishna Eradi was set up to reassess availability and sharing of water.

1987: The tribunal recommended an increase in the shares of Punjab and Haryana to 5 MAF and 3.83 MAF, respectively.

Militancy in Punjab: In August 1985, the chief of SAD was killed by militants, less than a month after signing the accord. In 1990, the Chief Engineer and a Superintending Engineer were killed by militants. The construction came to a halt.

1996: The Haryana government moved the Supreme Court over the issue.

2002-04: In 2002, the Supreme Court directed Punjab to continue work on the SYL and complete it within a year. The Punjab Government, however, moved a review against the SC order but the petition was rejected. In 2004, following orders by the SC, the Central Public Works Department (CPWD) was appointed to take over the canal work from the Punjab Government. The Punjab Assembly passed the Punjab Termination of Agreements Act (PTAA), which abrogated all its river water agreements with neighbouring States. The then President (Dr. A.P.J. Abdul Kalam) referred this Act to the Supreme Court to decide on its legality in the same year.

2016: The Supreme Court says that as Punjab backed out of its promise to share river water and the PTAA is invalid.

2020: The SC asked the Chief Ministers of Punjab and Haryana to negotiate and the Union Government to mediate between the States.

What are the arguments of two States regarding the Sutlej-Yamuna Dispute?

Punjab: Punjab was against sharing waters of the two rivers with neighbouring Haryana, citing riparian principles, which state that the owner of land adjacent to a water body has the right to use the water, besides arguing that it had no water to share.

According to a study by the State Government, many areas in Punjab may run dry by 2029. The State has already over-utilized its groundwater for irrigation purposes, as it a major contributor of Wheat and Paddy to the food reserves (worth INR 70,000 crore each year). According to reports, 79% of the state’s water is over-exploited. There are 109 ‘over-exploited‘ blocks out of 138, 2 ‘critical‘ blocks, 5 ‘semi-critical’ blocks, and only 22 ‘safe’ blocks. The Government claims that sharing water with any other state is impossible in such a situation.

Haryana: Haryana has been staking claim to the Ravi-Beas waters through the SYL Canal on the plea that providing water for irrigation was a tough task for the State. In southern parts, where underground water had depleted up to 1700 feet, there is a problem of drinking water. Haryana has been citing its contribution to the central food pool and arguing that it is being denied its rightful share in the water as assessed by a tribunal.

What are the arrangements to settle Inter-State Water Disputes?

Constitutional Arrangements

Schedule 7 of the Constitution: It distinguishes between the use of water within a State and the purpose of regulating interstate waters. Union List: Entry 56, It gives the Union Parliament the power to formulate laws and mechanisms for regulating Interstate rivers. State List: Entry 17, States retain autonomy regarding water utilisation for purposes such as water supply, irrigation and canals, drainage and embankments, water storage and water power subject to provisions of Entry 56 of List 1 (Union List).

Article 262: In case of disputes relating to waters, Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution or control of the waters of, or in, any inter-State rivers. Parliament may, by law also provide that neither the Supreme Court nor any other court shall exercise jurisdiction in respect of any such dispute or complaint as mentioned

Statutory Arrangements

River Board Act, 1956: The river Boards are supposed to advise on the Inter-state basin to prepare development scheme and to prevent the emergence of conflicts.

Inter-State Water Dispute Act, 1956: If a particular State or States approach the Union Government for the constitution of the tribunal: (a) Central Government should try to resolve the matter by consultation among the aggrieved States; (b) In case, consultation does not work, then the Union Government may constitute the tribunal.

Map Source: ORF

What are the reasons for persistence of Inter-State Water Disputes?

First, the legislative powers concerning water have been distributed between the Union and the State Governments. The idea has been to ensure optimum utilisation while balancing the interests of the States. However, this approach of imprecise distribution of power between the Union and the States, has created a Federal-Jurisdictional ambiguity.

Second, a big limiting factor is the lack of effective authority for enforcing the orders of tribunals. The Tribunal can only make an award and cannot make it binding. The Tribunals also lack the ability to punish for ‘contempt’.

Third, Article 262 provides that the Parliament may by law prevent the Supreme Court or any other Court from exercising jurisdiction in inter-State water disputes. However, under Article 136, the Supreme Court can hear appeals against the orders of Tribunals. Thus, the Supreme Court remains the adjudicatory body along with the tribunals, creating an institutional ambiguity regarding which body is the ultimate adjudicatory power on inter-State water disputes in India.

Fourth, critics of the system argue that the members of tribunals created for adjudicating the inter-State water disputes have been predominantly from the Judiciary. This has lead to lack of a multi-disciplinary approach to dispute settlement. They say there is not much difference between the tribunal and the bench of the Supreme Court.

Fifth, There have been excessive delays in establishing tribunals and making awards. The right to have a dispute referred to a tribunal under the IWSDA (Inter-State Water Dispute Act) is contingent on the Union Government’s determination that the matter cannot be resolved through negotiations. The provision of negotiations inevitably delays the constitution of a tribunal.

Sixth, Given that agriculture constitutes the primary economic activity in many parts of the country, water is a contentious issue. Inter-State disputes are exploited for political mobilization and electoral benefits. State Governments have rejected the awards of Tribunals.

Seventh, There is a lack of data regarding water flows, seasonal variations etc. which results in ambiguities regarding availability of water, surplus water for sharing etc. In addition, seasonal variations in monsoonal rainfall sometimes create shortage of water. State Governments than argue that there is no surplus water to be shared.

Source: Adapted from ORF

What should be the approach towards settling Inter-State Water Disputes?

First, The Sarkaria Commission has suggested that the awards of the tribunals be given the same weight as a Supreme Court Judgment.

Second, The Government’s inability to properly handle water-related disputes is reflected in the high number of appeals to the Supreme Court. Some experts suggest that the appeal to the Supreme Court should only on procedural aspects. The awards based on expert opinions shouldn’t be questioned in the Court.

Third, there is a need to establish a time frame for constituting the Tribunal by the Union Government. Tribunals should also try to avoid unnecessary delays in giving the award.

Fourth, the Inter-State Council can be rejuvenated to enable it to play a more active role in settlement of such disputes.

Fifth, Some experts have suggested that mediation, (a third party acts as an intermediary between the parties in conflict), can also be explored as a possible option for successful resolution of disputes. Example of role of the World Bank as a mediator in the Indus Water Treaty between India and Pakistan is quoted as a success of this model.

Sixth, infrastructure should be created for better collection of the data related to inter-State river basins. Better data will provide clear picture regarding availability of waters, seasonal variations and help in the equitable distribution of water among the States.

Conclusion

The Inter-State Water Disputes have been allowed to linger on for a long time. The politics of electoral mobilization has been one of the major factor, along with institutional infirmities in the arrangements. The Union and State Governments should put national interest above narrow parochial interests. As the pressures of climate change become evident through water stress in various regions, it becomes imperative that such disputes are settled in order to ensure optimal use of nation’s water resources.

Syllabus: GS II, Functions and responsibilities of the Union and the States, Issues and challenges pertaining to the Federal structure; GS II, Dispute redressal mechanisms and institutions.

Source: The Hindu, Indian Express, ORF

GS PAPER - 3

Cleaning up FCI’s operations

Source: The post is based on an article “Cleaning up FCI’s operations” published in Business Standard on 18^th January 2023.

Syllabus: GS 3 – Issues Related to Development

Relevance: measures required to bring reforms in Food Corporation of India (FCI). 

News: CBI carried out “Operation Kanak” that revealed the corruption in Food Corporation of India (FCI).

What is the issue with the FCI and what has been the response of the government?

The FIR filed by the CBI reveals that FCI officials charged between Rs 1,000 and Rs 4,000 per truckload from rice millers for accepting substandard grains and extending other favours to them.

The nexus, involving FCI officials, private grain traders, rice millers, and various others, has been revealed through raids.

Food and Public Distribution Minister Piyush Goyal called it a “wake-up call” and also urged to follow the “zero tolerance policy for corruption” in the FCI.

However, there are views that there might be more corruption involved in the FCI, given its scale of operation. Therefore, there is a need to bring reform in the FCI.

What reforms are required in the functioning of FCI?

There is a need to bring strict vigilance and use of technology in FCI operations and making its functioning fully transparent.

The suggestion given by the food minister in a five-point agenda such as the use of transparency-oriented technology, including CCTV, in the entire chain of operations, from procurement to delivery, can be inculcated.

There is also a need to set up a grievance redress mechanism for those who have to interact directly with FCI functionaries.

However, the urgent need is to carry forward the process of structural and functional reforms suggested by the Shanta Kumar Committee.

One of the recommendations of the committee was the decentralisation of the food management system by giving greater responsibilities to state governments.

Most states now produce enough cereals to meet their requirements. So, they can be asked to procure, store, and distribute these grains on their own with the supervision of the FCI.

This would reduce the workload of the FCI, thereby reducing the scope for corruption.

 

A case for reassigning GST to States

Source– The post is based on the article “A case for reassigning GST to States” published in The Hindu on 18th January 2023.

Syllabus: GS3- Indian economy and mobilisation of resources

Relevance– Issues related to fiscal policy

News- The article explains the fiscal imbalances between centre and states. It explains the need for assigning the entire GST to states.

What are some facts about GST?

The Union and State governments concurrently levy GST on commodities with 50% as Central GST and 50% as State GST. There is an Integrated GST on inter-State trade, so that 50% of it goes to the final destination State.

The GST is a harmonised tax on commodities across the country. Individual States have little power to unilaterally change this tax. The GST Council gives the Union government a veto to thrust its preferences on the States.

What are some statistics and facts about fiscal imbalances between centre and states in recent times?

The simplest empirical measure of vertical fiscal imbalance is the formula- ‘VFI equals one minus the ratio of the State’s own revenue to own expenditure’.

If this VFI ratio is zero, the States have enough own revenue to meet their own expenditure and there is no need for financial transfers.

If we look at the data for all the States over the periods of the last three Finance Commissions, the VFI ratio shows an increasing trend. For the latest period of 2015-16 to 2020-21, the ratio was 0.530. It means that only 47% of the States’ own expenditure was financed by their own revenue in that period.

In this period, four major changes took place. First, the divisible taxes of the Union government expanded from two to all the Union taxes. It enlarged the revenue base to be shared with the States.

Second, fiscal responsibility legislation was implemented to constrain the fiscal deficits of the States. States directly borrow from the market subject to limits imposed by the Union government.

Third, the Union Planning Commission was dissolved. It led to the withdrawal of Plan grants. Fourth, GST was introduced in 2017.

These changes have considerably altered the States’ revenue structure. States have little revenue autonomy and are more dependent on the Union government.

What is the way forward to reduce fiscal imbalances between centre and states?

CGST and the excise duty on petroleum products should be assigned to the states. There is a need to bring all commodities, including petroleum products, under GST.

The Union government should continue to collect IGST only to settle revenue on a destination basis. This will ensure harmonisation of GST across States.

GST shall continue as a tax determined by the GST Council. However, the veto power of the Union government should be removed. This may once again require some constitutional amendments.

Commodity taxation should be moved to State List II of the Seventh Schedule of the Constitution, with a rider that harmonisation of commodity taxation should be maintained.

The tax base of the GST, namely consumption, is not equally distributed among the States. It creates horizontal fiscal imbalance among the States. Therefore, the Union government should effect equalisation transfers to address this issue of horizontal fiscal inequality.

What will be the impact of these measures?

The assignment of excise duty on petroleum products to the States will hasten the process of integrating taxes on petroleum products into GST. It will remove the cascading effects of the current excise duty on petroleum products.

The reassignment of tax will increase the tax revenue of the States. This will also improve accountability of the States to their people on fiscal matters.

VFI will come down. All the States’ own expenditure can be financed by their own revenue resources. The need for assigning share in Central taxes and grants in aid does not arise.

 

Crisis in the Himalayas

Source: The post is based on the article “Crisis in the Himalayas” published in the Business Standard on 18th January 2023.

Syllabus: GS 3 – Disaster and disaster management.

Relevance: About protecting the Himalayan Ecosystem.

News: The Himalayan town Joshimath is under tremendous stress, and a portion of it has started sinking. The real issue has always been about pursuing development without working on environmental sustainability.

About Joshimath

Read here: Who Tunnels Through A Sinking Town?

What are the other major disasters that happened in the Himalayan Ecosystem?

Read here: Reckless spree – Authorities must heed science and people living near mines, dams

What are the challenges faced by Hilly areas?

Read more: A mountain reeling under human aggression

-Environmental impact assessment of a particular project does not capture the cumulative impact of a series of such projects in a river basin.

-In recent years, the twin demands of both religion and defence have been added to the development argument. This kept aside environmental and terrain considerations.

What should be done to protect the Himalayan ecosystem?

In the Himalayan zone, hydro projects should generally be of the run-of-the-river variety since large-scale water storage reservoirs can greatly disturb a terrain that is seismically unstable and still shifting.

Respecting religious sentiments should not mean constructing six-lane highways to sacred pilgrim spots deep in the Himalayas. Similarly, for defence, improved access in the short term should not come at the cost of seriously disrupted communications in the longer term due to disasters.

There is an urgent need to undertake a detailed survey by multidisciplinary expert teams. This is to understand the nature and scale of the challenge with the Himalayan ecosystem. The government must both halt and then reverse the disturbing trends that are intensifying day by day.

 

Role of private sector in space: India’s rocket dreams ready for a lift-off

Source: The post is based on the article “INDIA’S ROCKET DREAMS READY FOR A LIFT-OFF” published in the Livemint on 18th January 2023.

Syllabus: GS 3 – Achievements of Indians in science & technology.

Relevance: About the role of the private sector in space.

News: Barring ISRO, no other organization was building satellites (or rockets) in India in 2008. The role of private players has increased manifold since then.

Though India has a long way to go to catch up with the likes of the US, Russia and China, it is an endeavour well begun.

How has the role of the private sector in space increased since then?

-Chennai’s SRM University has built the SRMSat. It was designed to address pollution by monitoring carbon dioxide and water vapour in the atmosphere.

Dhruva Space: The company launched Thybolt-1 and Thybolt-2. Now many foreign entities are in talks with Dhruva Space to build and launch their satellites. It is a part of India’s space odyssey 2.0.

Agnikul Cosmos: It works to capture a small satellite launch market. It is developing rockets fuelled by its patented semi-cryogenic engines and 3-D prints the rockets.

Digantara: The company wants to address the problem of space debris and has developed an in-orbit device that will track it. It also plans to launch a constellation of 40 satellites to gather data on space junk in low-earth orbit (LEO).

Pixxel: The company wants to build a constellation of 24 hyper spectral micro satellites (launched three demo satellites in 2022), which will act as an “MRI scanner” of Earth.

They will monitor deforestation, track air and water pollution, check forest biodiversity, as well as coastal and marine health apart from changes in the urban landscape.

Skyroot Aerospace: Recently, it launched Vikram-S, India’s first private rocket, from Isro’s launch facility at Sriharikota.

Airtel-backed OneWeb is in the process of launching 648 small satellites in LEO mode to provide its high-speed satellite internet service.

Read more: Year-End Review -2022: Department of Space

What led to an increased role of the private sector in space?

Indian National Space Promotion and Authorisation Centre (IN-SPACe): It is the regulatory entity facilitating the private sector’s participation in the space industry.

Ever since its operationalization, over 100 companies have come up in this sector and in 2022 they raised as much as $110 million, which is more than what private space players had raised cumulatively till 2021.

The success of SpaceX: With its Starlink satellites, SpaceX demonstrated the profit for private players.

Advantages of smaller satellites: Smaller satellites use industry-grade rather than space-grade components. Further, these smaller satellites are parked closer to earth, where radiation is lower and has a shorter lifespan. Moreover, while an INSAT class satellite will cost at least ₹400 crores, smaller satellites can be built for just ₹10 crores.

Above all, they do not need large launch vehicles such as the PSLV or GSLV, which cost ₹300 crore and ₹450 crores, respectively.

Note: According to European Space Agency data, anywhere between 70,000 to 100,000 satellites will be launched in the next 15 years and over 80% will be small satellites weighing less than 500 kg. 

What are the limiting factors in increasing the role of the private sector in space?

Funding: India’s space budget of $1.7 billion (in 2022) was minuscule compared to the US’s $30 billion and China’s $14 billion (which includes $1 billion from its private players).

Space assets: While the US had 1,650 space assets and China had 450, India’s, at last count, had less than 100.

Long neglect of the commercial space market: India’s share in the $440 billion global space market is just 2%. The government wants to increase this share to 10% through the private sector, which will be able to attract large-scale private capital.

What will be the role of ISRO if the role of the private sector in space is the future?

a) The private sector will rely on ISRO for infrastructure—be it launch facilities, tracking systems, technology transfers and capacity building, b) ISRO will focus on scientific missions such as focussing on deep-space missions, and putting an Indian in space through its Gaganyaan mission. There by passing on the commercial business to the private sector.

Note: ISRO has set up NewSpace India Ltd (NSIL) to handle the commercial end of the business. 

At present, India needs a space policy, which can be clear and liberal on private players.

 

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