9 PM Daily Current Affairs Brief – July 23rd, 2022

Current Affairs Compilations for UPSC IAS Prelims 2022

Mains Oriented Articles

GS Paper 1

• Exploration, imports, private firms: India’s search for lithium spreads out

GS Paper 2

• Why the Rajya Sabha matters
• Judging Our Judges

GS Paper 3

• Despite pressures, the rupee’s remarkable resilience
• Saving The Hills – on Aravalli Range Verdict
• How we can have disaster-free floods

Prelims Oriented Articles (Factly)

Mains Oriented Articles

GS Paper 1

Exploration, imports, private firms: India’s search for lithium spreads out

News: Recently, the Centre has listed a bill in the parliament related to mining sector reforms. It is expected to allow private companies to dig for lithium.

Lithium called as “white gold” is an essential component in electric car batteries and 74% of overall global production is used in battery production.

Across the world, there is a rush to find Lithium. Therefore, the Indian government is also promoting the same.

Estimate of Lithium Resources

Global

According to the US Geological Survey, a total of about 89 million tonnes (mt) of lithium reserve is available worldwide. The top countries with resources are Bolivia (21 mt), Argentina (19 mt), Chile (9.8 mt), US (9.1 mt), Australia (7.3 mt), and China (5.1mt).

Lithium reserves in India

According to government data, no reserves or resources of lithium-bearing metals are so far part of the national-mineral inventory.

Measures Taken for exploration of Lithium reserves in India

The Geological Survey of India (GSI) has carried out 14 projects on lithium and associated elements in Bihar, Chhattisgarh, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Madhya Pradesh, Meghalaya, Karnataka, and Rajasthan during the field season programme (FSP) 2016-2017 to 2020-2021.

The GSI has also carried out 5 projects in Arunachal Pradesh, Andhra Pradesh, Chhattisgarh, Jammu & Kashmir, and Rajasthan during FSP 2021-22.

The Atomic Minerals Directorate for Exploration and Research (AMDER) has carried out preliminary surveys and limited subsurface exploration projects in Marlagalla in Mandya district of Karnataka. The surveys have shown the first traces of lithium resources of 1,600 tonnes in the country. But the reserves found are classified in the “inferred category”. Therefore, the associated confidence level is low.

Other measures taken by the government to solve India’s Lithium problem

Australia is the largest country in terms of production. Therefore, India and Australia agreed to undertake due diligence on greenfield and brownfield lithium and cobalt mineral assets, looking at India’s long-term clean energy roadmap.

Australia had signed a deal to supply India with critical minerals needed for the new-energy economy.

Further, Indian companies are also tying up with suppliers in countries that have major resources.

India has planned to set up a Giga factory for lithium-ion cell manufacturing in India by 2024. The Li-mineral will be sourced from mines in South America, Africa, and Australia.

Further, in addition to the above, a number of companies have signed MOUs to set lithium-ion up battery plants and cell technology in India, in the last 3-4 years.

The PLI scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ is also aimed at reducing imports by building a manufacturing capacity of 50-gigawatt hour (GWh).

India’s Import of Lithium

India’s EV Sector is dependent on imports. Lithium is primarily imported in the form of lithium-ion batteries for EVs and energy storage systems (ESS).

India’s imports of lithium and lithium-ion in FY21 stood at Rs 8,984 crore in FY21 and increased to Rs 13,838.22 crore in FY22.

Source Countries: China and Hong Kong are the major sources from where India imports.

What are the challenges?

Globally, the demand for Li-battery has surged, Therefore, the prices of lithium carbonate, used in rechargeable lithium batteries, have also surged a lot. For example, in the last year, prices of Chinese lithium carbonate increased by more than 400 percent as demand outstripped supply.

There is a plan for 30% EV sales penetration by 2030. Therefore, the demand for lithium is expected to surge. And it is going to be dependent on Lithium imports.

GS Paper 2

Why the Rajya Sabha matters

News: Given the political scenario in the country, an appraisal of the functions of the Rajya Sabha becomes necessary.

About the formation of the Rajya Sabha

The genesis of the Rajya Sabha can be traced to the Montague-Chelmsford report of 1918. Consequently, the Government of India Act, 1919 provided for a second federal chamber or the “Council of States”.

The relevance of the Rajya Sabha was debated in the Constituent Assembly. Few members argued that such a House, over and above the Lok Sabha, would unnecessarily delay law-making.

However, many others argued that the “second chamber” would instead introduce an element of solemnity and enhance the quality of debate and discussion.

On what matters Rajya Sabha exercises limited powers?

1) Money bills: The Lok Sabha has the power to introduce Money Bills and also exercises the final say over these bills, 2) A no-confidence motion cannot be introduced in the Rajya Sabha, 3) Rajya Sabha exercises a limited role in the functioning of the Public Accounts Committee and has no part in the Estimates Committee.

On what matters Rajya Sabha exercises special powers?

a) The Rajya Sabha exercises the ability to create new All-India Services under Article 312 by passing a resolution subject to support and voting by two-thirds of members, b)  The Rajya Sabha exercises power to make laws on any subject included in the State List toward “national importance” under Article 249, c) Rajya Sabha can approve proclamations under Article 352 or 356 or 360 if the Lok Sabha stands dissolved.

What is the significance of Rajya Sabha?

a) Rajya Sabha ensures healthy bicameralism by providing some kind of accountability to the law-making process undertaken in the Lok Sabha, b) The process of indirect elections (elected by the members of the state legislative assemblies) acts as a passage between the states, people, and Parliament. This furthers the principles of decentralisation by lending an independent voice to the states.

c) Rajya Sabha meticulously analyses the merits and demerits of a Bill. It also empowers its members to voice resistance, dissent, or any disagreement, even if the Lok Sabha dominates as the primary stakeholder in the law-making process.

On all bills except Money Bills, there exists a balance of power between the Lok Sabha and the Rajya Sabha.

d) The provision of the nomination of eminent persons from fields makes Rajya Sabha even more democratic and participatory.

e) Rajya Sabha is not subject to dissolution. Hence, it is often referred to as the permanent house of Parliament.

How to empower the functioning of the Rajya Sabha further?

Give more voice to State concerns: Matters related to finance, fiscal federalism, and economic reforms must be brought under the purview of the Rajya Sabha. This will further help articulate states’ concerns and strengthen the premise of cooperative and competitive federalism.

Should not be a resort to non-elected party members: The Rajya Sabha must not be used by political parties to accommodate candidates who fail to win mass elections. Instead, parties should select their candidates with the specific role of the Upper House in mind.

Need to safeguard the rights of states: Rajya Sabha’s rich quality of ideas and debate, and the discussions in the Rajya Sabha mould the thinking of students, political enthusiasts, and the general masses. But there have been veiled encroachments as well as attacks on the rights of states. Rajya Sabha needs to safeguard the rights of states.

Judging Our Judges

News: Recently, AK Ganguly, a former judge of the Supreme Court, commented that India is a “mature” democracy. However, JB Pardiwala, a present SC judge, commented more recently that India isn’t a “completely mature” democracy. This raised a debate
over whether India is a “mature” democracy?

What are the parameters of a mature democracy?

Transparency is the hallmark of a mature democracy. This implies the dissemination of information to the citizen, especially about the public servants who are funded through the public exchequer. This also applies in the case of Indian democracy.

Democracy seems to be more mature when the disclosure of information has been done voluntarily than due to the stick of law (or legal mandate).

Why is India a mature democracy?

The public servants including Ministers, MPs, and Bureaucrats (all-India services) disclose information about their assets and liabilities.

The government has also enacted the Lokpal and Lokayuktas Act (2013) for that reason.

Why is India not a completely mature democracy?

In India, the judiciary has failed to disclose the information voluntarily.

The government tried to make it mandatory through the ‘Declaration of Assets and Liabilities by Supreme Court, High Court and Subordinate Court Judges Bill’ of 2009. However, the law could not be passed.

In 2009, the Central Information Commission (CIC) tried to bring judges under the ambit of the RTI. But SC and HCs exempted themselves from the disclosure under Right to Information (RTI) Act.

In 1997, the SC adopted a resolution, making asset disclosure mandatory for SC judges. Some of the HCs also followed the path. But they mandated the disclosure within “a reasonable time” after assuming office. There were no clear deadlines. Therefore, the rules failed.

In 2009, the SC resolution watered down mandatory disclosure to voluntary disclosure. Further, the 2009 resolution of the Supreme Court (SC) was followed by around 25 High Courts (HCs).

Status of voluntary disclosure by the Judges at Global and India

(A) Indian Judiciary (as of 13 July 2022))

(1) The SC’s website gives asset information for only four judges. Of these, two (including the former Chief Justice) have already retired.

(2) Out of 25 HCs, only 7 HCs have put the information about the assets and liabilities of judges on their websites. However, the percentage of judges who have done voluntary declarations varies across these 7 HCs.

(a) Punjab & Haryana HC, Kerala HC, and Himachal HC have disclosed information of 75% of judges. Thus, these can be said to be matured institutions.

(b) The Delhi HC has published information of only 36. 1% judges.

(B) Global: As per the findings of the report titled ‘Getting the Full Picture on Public Officials’ in 2017, published by the World Bank and United Nations Office on Drugs and Crime (UNODC).

(1) In more than half of the 161 countries covered, judges and prosecutors mandatorily disclose assets.

(2) More than 60% of the SC judges have done disclosure.

(3) In 56% of those 161 countries, in addition to the public officials, judges and prosecutors are also required to disclose assets.

GS Paper 3

Despite pressures, the rupee’s remarkable resilience

News: The Indian rupee has depreciated by around 7% against the U.S. dollar, since the start of the year.

What is the position of the dollar and the US?

The dollar has strengthened against all currencies, developed or emerging. The consumer price index (CPI) inflation in the United States reached a multi-decade high of 9.1% in June 2022. This prompted the reversal in the monetary policy stance of the US Federal Reserve.

The rate hiking cycle by the US Federal Reserve has caused the dollar’s appreciation which has led the dollar index to strengthen by over 11% in 2022 so far, taking it to a 20-year high.

What is the situation of the Indian rupee?

India’s foreign exchange reserves have moderated by almost $55 billion from a high of $635 billion.

The rupee has fallen sharply against the dollar, but the depreciation has been relatively lower compared with past crises such as the global financial crisis of 2008 (the rupee had weakened by over 20% between December 2007-June 2009) and the Taper Tantrum of 2013 (for seven months from the start of the crisis in May 2013, the rupee had depreciated by over 11%).

What is the RBI’s response to the performance of the Rupee?

What are the effects of a weak rupee?

What should be done to strengthen the rupee?

Firstly, the Government could encourage some of the large market cap companies (private and public sectors) to be included in the major global indices such as MSCI and FTSE. This will help increase the weight of Indian equities in these indices and also compensate for foreign portfolio outflows to some extent.

Secondly, The Government could also assist India’s entry into bond indices such as J.P. Morgan’s Emerging-Market Bond Index and Barclays Global Bond Index. This will a)  Lead to forex inflows, b) Have a soothing impact on interest rates, c) Provide the central bank with the requisite ammunition in case there is further weakness.

Saving The Hills – on Aravalli Range Verdict

News: The Supreme Court has given a verdict in which it declared that all land in Haryana covered under the Punjab Land Preservation Act will be treated as forest land.

Significance of the judgment

The verdict would end the false debate of development versus environment.

The verdict will protect the Aravalli ranges, one of the oldest mountain blocks in the world. The range also acts as the barrier against desertification of the breadbasket of India. The verdict has upheld the three decades of jurisprudence on the Aravalli range, which is a key feature of the National Capital Region (NCR).

The ruling will end decades of reckless destruction of the Aravalli range, by the real estate sector. This is validated by the fact that the three states Haryana, Rajasthan, and Uttar Pradesh, which form part of the NCR, have significantly lower forest cover than the national average of 21. 7%. Further, Haryana is the lowest at 3. 6%.

Consequences of the destruction of the natural ecosystem in India 

The destruction has already extracted a large economic and health cost in the NCR.

For Example, in 2013, the World Bank estimated that environmental destruction leads to an annual cost of India’s economic degradation of $80 billion or 5. 7% of the GDP.

Further, the lion’s share of this cost was on account of pollution because the pollution results in a significant mortality load among adults.

How we can have disaster-free floods

News: Recently, Assam was ravaged by two bouts of floods in quick succession in the month of May and June.

What were the causes behind floods in Assam?

Natural Causes: Hazards like fluvial floods, are often triggered by extreme weather events, but they translate into disaster risk due to anthropogenic factors.

Anthropogenic factors: Human factors share a complex relationship with biophysical and social vulnerability. For example, the embankments which were meant for flood protection got breached once again. It led to severe disaster.

What should be done?

There is a need to turn the seasonal flood-related crisis into an opportunity to bring a paradigm shift in flood management. There is a need to move away from hazard prevention to the minimization of disaster risk, like the adoption of the flood risk management strategies as described below:

It would require moving away from the sole focus on preventing floods through structural interventions and river engineering like embankment construction to targeting factors that drive the multiple dimensions of vulnerability. It will contribute to building people’s resilience.

How to reduce the vulnerabilities of the communities to the flood hazard?

1) The riparian population, their lives, and livelihoods should be at the center of the planning process of flood management.

2) There should be convergence across multiple departments like the department of agriculture, animal husbandry, education, PHED, and health departments.

3) There should be round-the-year mission mode developmental activities to ensure that communities not just live with floods, but thrive despite floods. This would require a range of development interventions, including new models of embankment management, to improve the overall livelihood of rural people.

4) The early warning systems should be improved, as the frequency and intensity of extreme weather events will continue to increase in the coming period.

5) At the community level, every village in Assam should have access to elevated shelters which will contribute to resilience building

6) To address management problems, it requires dedicated and trained professionals who understand the interdisciplinarity required to manage flood risk and build resilience. This set of professional cadres could be located at the district level, working closely with the District Disaster Management Agency and district administration and coordinating with the various line departments.

7) The different community institutions promoted under the National Rural Livelihoods Mission can be trained. These institutions could act as a response force for the communities to calamities in disaster-prone areas.

8) There could be District Disaster Management fellows, a dedicated group of trained young professionals with a time-bound and goal-driven assignment, along the lines of fellows in the Aspirational District Programme.

Prelims Oriented Articles (Factly)

Antarctic Bill, 2022 passed in LS

Source: This post is based on the following articles

“Lok Sabha passes the Indian Antarctic Bill, 2022 aimed at having India’s own national measures for protecting the Antarctic environment and dependent and associated ecosystem” published in the PIB on 23rd July 2022.

“Antarctic Bill passed in LS” published in The Hindu on 23rd July 2022.

What is the news?

The Lok Sabha passed the Indian Antarctic Bill, 2022 moved by the Minister of Earth Sciences. The Bill aims at having India’s own national measures for protecting the Antarctic environment and also the dependent and associated ecosystem.

What are the salient provisions of the Antarctic Bill, 2022?

Setting up of Indian Antarctic Authority (IAA): The Bill proposed to set-up Indian Antarctic Authority (IAA) under the Ministry of Earth Sciences. The IAA shall be the apex decision-making authority and shall facilitate programmes and activities permitted under the Bill.

What is the need for the Antarctic Bill?

The bill is in pursuant to India’s accession to the Antarctic Treaty, the Protocol on Environment Protection (Madrid Protocol) to the Antarctic Treaty and to the Convention on the Conservation of Antarctic Marine Living Resources.

What are the advantages of the bill?

The Bill 1) Provides a harmonious policy and regulatory framework for India’s Antarctic activities through well-established legal mechanisms, 2) Helps in efficient and elective operations of the Indian Antarctic Programme, 3) Facilitates India’s interest and pro-active involvement in the management of growing Antarctic tourism and sustainable development of fisheries resources in Antarctic waters, 4) Help in increased international visibility, credibility of India in Polar governance leading to international collaboration and cooperation in scientific and logistics fields.

About India’s Antarctic expeditions

What is the Convention on the Conservation of Antarctic Marine Living Resources?

The convention was signed in Canberra in 1980. The convention aims for the protection and preservation of the Antarctic environment and, in particular, for the preservation and conservation of marine living resources in Antarctica.

India ratified the Convention in 1985 and is a member of the Commission for Conservation of Antarctic Marine Living Resources.

What is the protocol on Environmental Protection to the Antarctic Treaty?

The Protocol on Environmental Protection to the Antarctic Treaty, also known as the Antarctic-Environmental Protocol, or the Madrid Protocol, is part of the Antarctic Treaty System. The Treaty was signed in Madrid in 1991.

Aim: To strengthen the Antarctic Treaty system and for the development of a comprehensive regime for the protection of the Antarctic environment and dependent and associated ecosystems.

India signed the Protocol on Environmental Protection to the Antarctic Treaty in 1998.

The Agreement on Fisheries Subsidies (Agreement) at the WTO Ministerial meeting

Source: The post is based on the article “The Agreement on Fisheries Subsidies (Agreement) at the WTO Ministerial meeting” published in PIB on 22nd July 2022.

What is the News?

The Minister of Commerce and Industry has informed Rajya Sabha about Agreement on Fisheries Subsidies.

What is the Agreement on Fisheries Subsidies?

The WTO Agreement on Fisheries Subsidies was adopted at the 12th Ministerial Conference(MC12).

The agreement marks a major step forward for ocean sustainability by prohibiting harmful fisheries subsidies which are a key factor in the widespread depletion of the world’s fish stocks.

What are the key provisions of the agreement?

Prohibition: The agreement prohibits the following

a) Subsidies from being provided for Illegal, Unreported and Unregulated (IUU) fishing and overfished stocks, b) subsidies for fishing on high seas, which are outside the jurisdiction of coastal countries and Regional Fisheries Management Organizations/ Arrangements (RFMO/As). 

Transition period: Under the Special and Differential Treatment (S&DT), Developing Countries and Least Developed Countries (LDCs) have been allowed a transition period of two years from the date of entry into force of this Agreement.  

Exceptions to Prohibition: 1) Granting or maintaining subsidy to its vessel or operator as long as it is not carrying out Illegal, Unreported and Unregulated (IUU) fishing, 2) No prohibition on providing subsidies has been imposed for fishing regarding overfished stocks as long as such subsidies are implemented to rebuild the stock to a biologically sustainable level.

Significance of this agreement: The agreement will eliminate the subsidies granted to fishing vessels or fishing operators engaged in IUU fishing. Such disciplining will check large-scale IUU fishing which deprives coastal countries like India of fisheries resources, thereby significantly impacting the livelihoods of fishing communities.

With 14.4 judges per million people, undertrials at historic high

Source: The post is based on the article “With 14.4 judges per million people, undertrials at historic high” published in Business Standard on 23rd July 2022.

What is the News?

This article talks about the vacancies in the judiciary and the increasing number of undertrials in jails.

What are the key highlights?

Undertrials: The number of people languishing in the country’s prisons while undergoing trials has increased by 26% between 2016 and 2020. The undertrials take up 90% of the total prison capacity.

Judges per million: In India, there are just 14.4 judges for every one million population compared to 210 judges per million in Europe and 150 in the United States.

Note: In 2003, the Committee on Reforms of Criminal Justice System headed by Justice V S Malimath, had recommended raising India’s judge strength to 50 per million.

Judicial Vacancies: There are 24,521 sanctioned posts in the lower court of which 5,180 or 21% are vacant. 

– In the high courts and the Supreme Court, 34.4% of the sanctioned strength of 1,108 is vacant. 

Pendency of Cases: The lower courts are dealing with 42 million open cases.

There are another 5.9 million cases before the high courts and 72,062 before the Supreme Court.

Jawaharlal Nehru Port becomes first 100% Landlord Major Port of India

Source: The post is based on the article “Jawaharlal Nehru Port becomes first 100% Landlord Major Port of India” published in PIB on 21st July 2022.

What is the News?

Jawaharlal Nehru Port(JNP) has become the first major landlord port in India following the awarding of a private tender to expand Jawaharlal Nehru Port Container Terminal(JNPCT).

What is the Landlord Port Model?

In the landlord port model, the publicly governed port authority acts as a regulatory body and as a landlord while private companies carry out port operations—mainly cargo-handling activities.

Here, the port authority maintains ownership of the port while the infrastructure is leased to private firms that provide and maintain their own superstructure and install their own equipment to handle cargo.

In return, the landlord port gets a share of the revenue from the private entity.

What is Jawaharlal Nehru Port Authority(JNPA)?

Jawaharlal Nehru Port Authority(JNPA) is located in Navi Mumbai and was commissioned in 1989.

It is the premier container handling port in India accounting for around 50% of the total containerized cargo volume across the major ports of India. 

It is ranked 26th among the top 100 global ports (as per Lloyd’s List Top 100 Ports 2021 Report).

Explained: Why India has cut windfall tax on diesel, aviation fuel exports

Source: The post is based on the article “Explained: Why India has cut windfall tax on diesel, aviation fuel exports” published in Indian Express on 20th July 2022.

What is the News?

The government of India has slashed windfall tax on domestically produced crude, diesel and aviation turbine fuel, withdrew the levy on petrol and exempted exports of fuels from the special economic zone(SEZ) from it.

What is the Windfall Tax?

A windfall tax is a higher tax rate on sudden big profits levied on a particular company or industry.

What was the windfall tax imposed by the Government?

On July 1, the central government imposed export duties on petrol, ATF and diesel and imposed a windfall tax on domestic crude production (Rs 23,250 per tonne or USD 40 per bbl). 

Why did the Government impose Windfall Tax?

Global crude prices had risen, and domestic crude producers were making windfall gains. Private oil marketing companies were exporting petrol and diesel to foreign countries like Australia for better realization.

This led to a shortage of fuel at retail outlets as oil marketing companies were not willing to sell the commodity at a loss since prices had not increased despite rising crude and depreciating rupee.

Why is the Windfall Tax now withdrawn?

Over the last fortnight, the benchmark contract of crude oil on the Intercontinental Exchange has fallen by over 12% on fears of a recession in the US and overall global recession, prompting the government to undertake a review of the duties imposed.

MoD bans imports from 18 top defence platforms, items to be made in India

Source: The post is based on the article “MoD bans imports from 18 top defence platforms, items to be made in India” published in Business Standard on 23rd July 2022.

What is the News?

The Ministry of Defence has till now released three positive indigenisation lists comprising major equipment/platforms that can no longer be imported.

What is a Positive Indigenisation List?

The positive indigenisation list essentially means that the Armed Forces—Army, Navy, and Air Force—will only procure the listed items from domestic manufacturers. The manufacturers could be private sector players or Defence Public Sector Undertakings(DPSUs).

What is the significance of this list?

Promote Domestic Industry: These weapons & platforms will promote domestic industry and transform R&D and manufacturing in the country.

Reduced Fiscal Deficit: The other benefits of indigenisation will be reduction in the fiscal deficit, security against its porous borders and hostile neighbors and generation of employment.

What are the steps undertaken by India to boost Domestic Defence manufacturing?

In the Union Budget 2022-23, the Finance Minister has allocated 25% of the defence R&D budget for industry-led R&D.

Click Here to read about other measures

19th century painting of Raja Serfoji, son stolen from Thanjavur Saraswathi Mahal traced to U.S. museum

Source: The post is based on the article “19th-century painting of Raja Serfoji, son stolen from Thanjavur Saraswathi Mahal traced to U.S. museum” published in The Hindu on 23rd July 2022.

What is the News?

A rare 19th-century painting of Raja Serfoji and his son Sivaji, which was stolen from Saraswathi Mahal, Thanjavur has been traced to the US Museum.

Who was Maharaja Serfoji?

Maharaja Serfoji was the last of the Bhonsle Rajas of Thanjavur. He was born in 1777 and died in 1832. 

His only son Shivaji ruled until 1855. However, he had no male successor.

Due to this, Thanjavur became a casualty of Lord Dalhousie’s infamous ‘Doctrine of Lapse’ and it got absorbed into British Ruled Indian provinces.

Contributions of Maharaja Serfoji

Library: The Sarasvati Mahal Library was founded as a Palace Library by the Nayak Kings of Thanjavur (1535–1675), it was however Serfoji who enriched it with priceless works, maps, dictionaries, coins and artwork.

Educational Reforms: Serfoji founded a school called Navavidhya Kalanidhi Sala where languages, literature, the sciences and arts and crafts were taught in addition to the Vedas and shastras. 

– Serfoji is also credited with installing a hand press with Devanagari type in 1805, the first of its kind in South India. He also established a stone-type press called “Nava Vidhya Kalanidhi Varnayanthra Sala“.

Medicine: Serfoji established the Dhanavantari Mahal, a research institution that produced herbal (indigenous medicine) medicine for humans and animals.

What is the Doctrine of Lapse?

The Doctrine of Lapse was an annexation policy followed widely by Lord Dalhousie when he was India’s Governor-General from 1848 to 1856.

The doctrine declared that if an Indian ruler died without a male heir his kingdom would “lapse”, that is, become part of Company territory. 

One kingdom after another was annexed simply by applying this doctrine: Satara (1848), Sambalpur (1850), Udaipur (1852), Nagpur (1853), Jhansi (1854) among others.

Centre seeks to reward all Jal Jeevan Projects by year’s end

Source: The post is based on the article “Centre seeks to reward all Jal Jeevan Projects by year’s end” published in Livemint on 23rd July 2022.

What is the News?

The Government of India seeks to award work for the entire Jal Jeevan Mission project to contractors by the end of this year, as it aims to provide safe tap water to all rural households by 2024.

What is the Jal Jeevan Mission?

Click Here to read

What is the progress of the Jal Jeevan Mission?

At the announcement of the Jal Jeevan Mission in 2019, out of 192.7 million households, only 32.3 million (or 17%) households had tap water connections. Currently, the mission has reached more than 51% of rural households.

In Goa, Haryana, Telangana, Andaman & Nicobar Islands, Puducherry, Dadra & Nagar Haveli and Daman & Diu, every rural household has tap water supplies.

However, nearly half of rural households with infrastructural challenges and large funding requirements remain to be covered. 

Moreover, with the new requirement that gram panchayats confirm that all households in their villages have received water supply, only 2% of the villages have been certified so far to have tap water connections in all houses.

Is there a funding problem with the mission?

The government has so far spent just over 25% of the total allocation to provide tap water supplies. Hence, funding for the mission will not be a problem considering that three-fourths of the budget was still to be used.

Court ruling on IBC creates uncertainty in admission of cases. Timelines envisaged in code must be adhered to

Source: The post is based on the article “Court ruling on IBC creates uncertainty in admission of cases. Timelines envisaged in code must be adhered to” published in Indian Express on 23rd July 2022.

What is the News?

The Supreme Court in Vidarbha Industries Power Ltd vs Axis Bank Ltd has held that it is not mandatory for the National Company Law Tribunal(NCLT) to admit an application to initiate Corporate Insolvency Resolution Process(CIRP) even if a debt exists and the Corporate debtor is in default.

What has been the process to initiate Corporate Insolvency Resolution Process(CIRP) so far?

Till now, in order to initiate proceedings under the IBC, financial creditors had to provide proof of the corporate debtor’s default. 

Once the adjudicating authority, the National Company Law Tribunal, was convinced of the default, the application was admitted. This allowed for quick admission of cases. 

However, the judgment in Vidarbha Industries Power Ltd. v. Axis Bank appears to have created ambiguity in this process. 

What has changed after this judgment?

The Supreme Court has held that NCLT has to consider the grounds made out by the corporate debtor against admission, on its own merits.

This creates space for applications by financial creditors to be rejected even if there is a default. 

What will be the impact of this judgment?

The success of the IBC was in its attempt to transform the credit culture in the country. The threat of losing control over the firms was meant to ensure that borrowers honour their obligations.

There are indications of this threat has become a credible deterrence. Till March 2022, 21,000 applications for the initiation of the resolution process were resolved before their admission. 

However, if the admission of cases itself becomes a matter of discretion, this will impinge on IBC being an effective deterrence for errant borrowers. 

India’s battery storage potential to be 600 GWh by 2030: Niti report

Source: The post is based on the article “India’s battery storage potential to be 600 GWh by 2030: Niti report” published in Business Standard on 23rd July 2022.

What is the News?

NITI Aayog has released a report titled ‘Advanced Chemistry Cell Battery Reuse and Recycling Market in India’.

What are the key findings of the report?

Currently, the battery storage market in India is dominated by consumer electronics which comprises smartphones, laptops, notebooks and tablets.

This is expected to grow further with the digitalisation of platforms and the integration of technology in day-to-day life.

The report predicts that by 2030, India will have a battery storage potential of 600-gigawatt hour(GWh) and demand for electric vehicles, stationary storage and consumer electronics will mainly drive the adoption of battery storage.

Further, for battery recycling, a ​​coherent regulatory framework incentivising all stakeholders to participate in the recycling process will help in the development of a battery recycling ecosystem in the country.

With $87 billion, India top remittance recipient in 2021: UN report

Source: The post is based on the article “With $87 billion, India top remittance recipient in 2021: UN report” published in Economic Times on 20th July 2022.

What is the News?

The World Health Organization(WHO) has released a report titled ‘’World report on the health of refugees and migrants’. This is the first WHO report on the health of refugees and migrants.

Note: WHO is a specialized agency of the United Nations responsible for international public health.

What are the key findings of the report?

Migrants: Globally, there are around one billion migrants or roughly one in eight people.

– Disease, famine, climate change and war have forced people to flee their homelands and the conflict in Ukraine has helped push the number of displaced people worldwide to more than 100 million for the first time in history.

– At the same time, the COVID-19 pandemic continues to disproportionately affect the health and livelihoods of migrants and refugees. 

Remittances: In 2021, the top five remittance recipients in current US dollars were India, China, Mexico, the Philippines and Egypt.

– India received 87 billion dollars in remittances in 2021.

Challenges to Remittances: Remittances are expected to continue growing in 2022, but there are challenges, such as the COVID-19 crisis, which still poses one of the greatest risks to low-and middle-income countries especially as fiscal stimulus programmes in migrant destination countries cannot continue indefinitely.