A brief of newspaper articles for the day bearing
relevance to Civil Services preparation
Art & Culture
[1]. Memories of a glorious past to come alive at historic Chandragiri fort
Context:-
The historic Chandragiri Fort near Tirupati is all set to host the 545th birth anniversary of famous Vijayanagara emperor Sri Krishnadevaraya.
The fort is under the control of the Archaeological Survey of India (ASI).
Vijayanagar Dynasty:-
Vijaynagar Dynasty ruled over India for 3 centuries. It is a history full of wars with Bahamani and other muslim rulers of northern Deccan, collectively said as Deccan sultanates.
Vijayanagara the capital city is in Bellary District of northern Karnataka.
It was founded by Harihara I and his sibling Bukka Raya in 1336, the empire ruled untill 1646. Sri Krishna Deva Raya was the most famous king of Vijayanagara Empire.
The ruins of this great kingdom can be seen even today at Hampi which has been declared a protected site by the UNESCO.
International Relations
[1]. U.S. caught between Iran and Saudis
Key Points:-
The Saudi government’s embassy in Iran was attacked by a mob following the execution of a Shia cleric by Saudi.
This led to Saudi government terminating diplomatic ties with Iran which has given rise to regional tensions.
The US government has interfered to stabilise the region as such tensions can affect the Syrian peace talks to which both Saudi and Iran are stakeholders.
The US Government said that it would avoid too close an involvement as it could complicate the matter
The instability in the region can affect the process of ceasefire and Syrian political transition.
U.S. was also considering new sanctions against Iran for violations of the UN Security Council resolutions with respect to their ballistic missile programme
Economic Digest
[1]. Corruption, delays hamper startups in India: survey
Key Points:-
The survey, undertaken by social media network, LocalCircles, showed nearly 60 per cent of the citizens felt corrup
tion and delays are preventing the growth of entrepreneurship in India, while only 14 per cent felt funding to be the main impediment.
Ninety-eight per cent of the respondents said the Start Up India mission should go beyond digital/technology startups and enable entrepreneurship at the grassroot level.
Start Up India:-
“Start up India, Stand up India” is a scheme to promote bank financing for start-ups and offer incentives to boost entrepreneurship and job creation.
Each of the 1.25 lakh bank branches should encourage at least one Dalit or tribal entrepreneur and at least one woman entrepreneur.
[2]. Do sops drive investment?
Context:-
Government had decided that it will be lowering corporate tax rates and simultaneously start phasing out tax exemptions from April 2016. This timeline is being revisited the date for withdrawing tax sops has been pushed back to April 1, 2017.
The benefits of the move:-
The new timeline is clearly aimed at encouraging investments, an area of growing concern for the government.
The government is hoping that the one-year window will give companies time to rethink their plans and that a few may decide to invest.
And while there will be some loss in revenue the potential value of investments could be several times that.
This is critical since, while India has an attractive local market, tax rates are substantially higher than the Asian average of 21.9%—a lower corporate tax regime should logically help attract more foreign direct investment.
Challenges:-
As exemptions don’t get phased out while rates get cut, there could be a loss in tax buoyancy.
But this could be made up by the higher compliance that lower rates encourage as well as by a possible step-up in corporate activity.
[3]. Public investment to help fight slowdown
Context:-
The government said that it would continue the thrust on public spending in the upcoming Budget. The OROP and Seventh Pay commission will add an additional expenditure burden of nearly Rs 1 lakh crore.
When fighting a global slowdown, public investment has to lead the way.
Investing in Infrastructure:-
For 2015-16, the government had committed to increasing public spending in infrastructure to boost demand for the private sector battling stressed balance sheets.
Investment in rural infrastructure was the “need of the hour and the government is looking to boost rural consumption. It may give an allocation push in Budget 2016-17 to programmes on irrigation infrastructure and rural roads, among others.
Management participation of the private sector in some of the small airports is being considered. This is the same with regards to Railways also, to increase managerial Efficiency.
[4]. Raising excise on petrol, diesel is a good move
Context:-
The Union government has raised the excise duty on petrol and diesel last Saturday, taking advantage of falling international crude oil prices.
This was the third such duty increase in the current financial year.
Prudent move:-
The government’s strategy of increasing duty, even while oil marketing companies effect moderate price cuts, reflects a mature and prudent response to the decline in international crude oil prices.
India imports crude oil in large quantities to meet almost 80 per cent of its total domestic demand.
Passing on the entire benefit of the fall in crude oil prices to the oil refining companies or the consumers would count as poor policy, unmindful of the basic principles of taxing scarce non-renewable resources like petroleum products.
The extra revenue mobilised through the duty increases and will hopefully be used for productive purposes like helping the government ramp up its capital expenditure.
Contradictory:-
The move that excise duty may be reduced if crude oil prices start rising is unwanted. Such a move should be done only to smooth out runaway inflation in the case of short, sharp increases in international crude oil prices
Incentive to states:-
Its decision to roll out the direct benefits transfer scheme for payment of subsidy to consumers of kerosene in 26 districts across eight states from April 1, 2016 is a welcome move.
In a bid to get more states to persuade kerosene users to join the scheme, the Centre has agreed to share as much as three-fourths of its subsidy savings on kerosene with the states in the first two years.
The sharing formula would be reduced gradually in the subsequent years. But this is a commendable start to prevent diversion and misuse of the fuel – and in the process ensure better targeting of subsidies.
[5]. UDAY hinges on structuring of discom debt takeover
What is UDAY (Ujwal Discom Assurance Yojana)?
UDAY provides for the financial turnaround and revival of power distribution companies (DISCOMS), and importantly assuring the permanent sustainable solution to the problem of DISCOMs debt.
Features of UDAY:
a) State shall take over 75% of DISCOMs debt as on 30 September 2015 over a period of two years. 50% to be taken up in 2015-16 and rest to be taken in 2016-17.
b) States will issue non-SLR including SDL bonds in the market or directly to the respective banks / Financial Institution (FI) holding the discoms debt.
Impact on State Finances:
Concerns have been voiced that this debt take-over will cause deterioration in the fiscal health of states. The impact will, however, be determined by whether the states convert the discom debt into equity and issue bonds against it or convert the debt to a loan from the state government.
By taking over 75 per cent of the debt, the state will breach the relaxed Fiscal Responsibility and Budget Management (FRBM) level set by the Centre at 3.25 per cent.
Solution for States:
States will prefer to take over the debt in the form of a loan, in which case discoms will continue to pay interest to state governments, although at a lower rate. So, in those cases, a part of the states’ interest payment will be covered by discoms, thereby lowering their fiscal deficit.
Impact on Banks:
From the banks’ point of view, the conversion of discom debt into state loans removes the uncertainty associated with repayment.
On the flip side, banks will benefit from a one-time provisioning writeback of Rs 5,000 crore on restructured loans being converted into bonds. Further, as the new bonds will be issued by the state governments they will attract zero risk weight, as against 20 per cent now.
The situation cab be complicated because the Reserve of Bank of India (RBI) is treating the balance debt as non-performing assets (NPAs). This will require banks to make higher provisions. “If this happens, banks will not benefit much from the discom restructuring plan. Banks will not be getting their money right away, but if 25 per cent of loans – roughly Rs 1 lakh crore – become NPAs, the banking sector will be under stress
Impact on DISCOMS:
For discoms, UDAY is an opportunity to clear their books and improve their technical and commercial efficiency. The transfer of debt will lead to a relief in the cost of supply of about 50 paise per unit on an all-India basis by 2017-18. Add to this the benefits on account of the reduction in transmission losses and rationalisation of coal supplies and the savings are immense.
Opinions & Editorials
[1]. Driven by neither hawks nor doves
Context:-
The article discusses the strategy that India needs to follow in its ties with Pakistan following the Pathankot terrorist base.
How to handle such crisis?
It is important that India is more reflective and introspective in its reactions.
The orchestration of operations concerning security, crisis response, and communication is vital:
- Bringing key experts on deck helps clarify chaotic situations.
- Identifying critical gaps, timelines, risks and their mitigation,
- Communication process
- The checkpoints regarding media management must be manned.
- The closure of leaks of information is a critical must
- We must learn to systematise our processes better like we have done during natural disasters.
India Pakistan relation:-
We have to keep the channels of dialogue open together with vigilant intelligence and an smart assessment of Pakistan’s moves.
When the two sides meet next, Pathankot will obviously dominate the agenda and India has a legitimate right to question Pakistan’s credibility on this issue.
Much as the world and India felt grief for the lives of innocent children lost in Peshawar, the suffering of innocent Indians at the hands of terrorists with cross-border affiliation cannot be ignored.
[2]. Net Ambiguity
Context:-
The article laments at the delay in enacting law on net neutrality as it will give way for violations leading to the erosion of the principle of net neutrality.
What is net neutrality?
Net neutrality is a principle that promises equality for all packets of data over the internet.
Consulting process:-
A consultation paper on OTT services was published in March 2015 in which TRAI’s delay and lack of familiarity with new technologies caused dissatisfaction.
It has been more than six months since the counter-comments were sent to TRAI but it has still not published its recommendations.
Without clarifying its position on or concluding the OTT consultation, TRAI has issued a subsequent paper on differential pricing of data services in December.
What is a Consultation paper?
A consultation paper provides the necessary background of policy choices and legal regulations on the basis of which inputs are invited from the public.
After these inputs are received and published, it may provide an opportunity for additional counter-comments before publishing its recommendations.
Delaying tactics:-
The two consultation process has also been viewed with suspicion, as a delaying tactic.
Apart from this the DoT has also made a report on net neutrality and waits its turn to exercises it power to issue regulations on the basis of TRI recommendations. Then, there’s also the Rajya Sabha standing committee on information technology.
Though TRAI has asked Reliance to halt Internet.Org/ Free Basics services, which, as per the DoT report, violate net neutrality, it isn’t clear if this is a legal order. In fact, users have reported that Internet.org/ Free Basics remain accessible.
Regulatory Uncertainty:-
Delays such as this increase regulatory uncertainty.
The absence of clear norms only furthers the interests of sizeable market power, which have the ability to take on risks in circumstances of ambiguity.
This is clear from Facebook’s resistance to maintaining the status quo on Free Basics. Facebook has, instead, sought to expand it to further telecom circles in the midst of this consultation
A lot of issues are pending like licensing of internet applications like those permitting voice calling, payment of carriage fees to telecom companies, and zero-rated plans like Internet.org/ Free Basics. The longer these issues linger, the more violations will occur and the status quo may become the norm.
A clear time table:-
Cases as these will lead to a further undermining of public trust in a consultation that has seen record participation.
It’s necessary that a clear timetable and process for bringing in net neutrality laws in India is announced at the conclusion of the counter-comments period for the consultation on differential pricing of data services
What are OTT services?
An over-the-top (OTT) application is any app or service that provides a product over the Internet and bypasses traditional distribution.
Services that come over the top are most typically related to media and communication and are generally, if not always, lower in cost than the traditional method of delivery.
[3]. Doesn’t fit
Context:-
Madras High Court in December ruled that the government must introduce a dress code for temple visits to enhance the spiritual ambience among the devotees, thronging to worship.
Since January 1, notices have been put up outside temples in Tamil Nadu warning devotees against what might be considered indecent attire.
The order is said to violate provisions of the Tamil Nadu Temple Entry Authorisation Act, 1947, which allows individual temples to frame rules relating to attire as per their custom and tradition.
Uniqueness:-
The Hindu religion is no single order, but an alliance of multiple faith systems and practices.
Every temple follows its own set of rituals, rules and regulations, which claims legitimacy from some unique tradition.
These codes of conduct and worship are rooted in the local setting and invariably influenced by numerous factors, ranging from local ecology to economics to aesthetics.
Interventions to be restricted:-
The legislature and judiciary must restrict their interventions to temporal matters, except in the case of rituals and spiritual practices blatantly discriminatory towards an individual or a section of society.
With regard to the right dress for worship, let devotees and the temple bureaucracy decide what fits best.
[4]. The promise of Dalit capitalism / Dalits Rebooted, Suited
Prime Minister Na rendra Modi inaugurated a Dicci meeting of over 1,000 Dalit entrepreneurs.
He cited B.R. Ambedkar to argue that Dalit community that has little access to land should see rapid industrialization as its best bet for advancement.
Capital to break caste:-
Successive census reports on enterprises outside agriculture show that Dalits own far fewer businesses than we should expect from their share of the total Indian population.
The representatives of Dalit capitalism want to correct this imbalance because they believe that capital is the best way to break caste in the modern economy.
It is felt that in the era of globalization dependence on reservations will bring diminishing returns.
The past few decades have seen the political empowerment of Dalits.
A new generation of Dalits intellectuals feel that the market rather than the state is the best antidote to social inequality.
Accessing Business networks:-
One of the main problems of the community is the lack of access to existing business networks.
There is no shortage of examples of specific businesses being dominated by members of one community.
This problem can be set right through voluntary action by large companies that have expansive supply chains. The Tata group has been at the forefront of such experiments. Large government departments have also tried to bring Dalit enterprises into their networks.
Around the world:-
The black capitalism project in the US has led to many success stories but it is doubtful that it has dismantled the deeper structure of racial discrimination.
South Africa has also made uneven progress in having an economic structure that is in tune with its political goal to become a rainbow nation.
DICCI:-
Dalit Industrial Chambers of Commerce and Industry. It boasts of nearly 4,000 members, heralding the new era of Dalit businessman. This represents a social and economic revolution.
There was a discussion of the book Defying the Odds by Devesh Kapur and two Dalit academics, Chandra Bhan Prasad and Shyam Babu. The book provided heart-warming stories of Dalit entrepreneurs who had battled against odds to make it to the top.
Now capitalism is seen as the most revolutionary force of all that had earlier smashed feudalism in Europe and was now smashing casteism in India.
Critiques:-
Many great Maratha kings were in fact Dalits. Even Maharaja Ranjit Singh came from a caste that would be classified as Dalit.
The success of these Dalit kings did nothing for the oppressed Dalit masses, and could not be celebrated as Dalit uplift.
Counter arguments:-
The Baroda Gaekwads and Ranjit Singhs of yore were ashamed of their caste ancestry, and did their best to cloak it. By contrast, Dicci boasts with pride of its Dalit ancestry.
By: ForumIAS Editorial Team
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