Front Page / NATIONAL
[1]. Married woman can also ask tenant to vacate
[2]. Multi-role chopper model to be unveiled at Aero India expo
[3]. ‘Naxals possess lethal edge in using IEDs’
[4]. Man can’t claim married sister’s property: SC
Editorial/OPINION
[1]. Solar power breaks a price barrier
ECONOMY
[1]. Commerce Dept. special arm may drive foreign trade policy
[2]. China is way ahead of India in terms of railway investment: Suresh Prabhu
Indian Express
[1]. Bucking the slump
Live Mint
[1]. A disrupter’s guide to India’s defence budget
Front Page / NATIONAL
[1]. Married woman can also ask tenant to vacate
Context
Supreme Court: A tenant cannot refuse to vacate a house saying his landlady is married and has her husband’s home to live in, the Supreme Court has held
What has happened?
SC has ruled that,
- A tenant cannot refuse to vacate a house saying his landlady is married and has her husband’s home to live in
- Marriage will not extinguish the landlady’s bona fide need to re-take possession of rented premises
- Just because a woman was married it did not mean that she no longer had her own personal need for space. Merely because her husband had been allotted a government accommodation, Nidhi’s need for more space would not automatically come to an end
The case: Prolonged litigation
The case concerns eviction suit proceedings filed by Nidhi against her tenant who runs a hotel on rented premises at Moradabad in Uttar Pradesh
- Nidhi wanted re-possession of the rented portion of her house so that she could accommodate her ailing grandparents from the village. She said she and her sisters wanted a separate room to study undisturbed
- Her tenant Ram Kripal Sharma, through his legal heirs, countered that the family was influential and lived in a palatial house — Kath Mahal — which had huge halls and plenty of rooms
- On the other hand, the tenant said, his family survived on the earnings from the hotel. As the litigation dragged on — for 20 years, since 1987 — Nidhi and her sister got married and moved away. The fact that they were married went against them when the case reached the Allahabad High Court
HC’s judgement
The High Court agreed with the tenant that there was no need to release the rented portion as Nidhi and her sister were married and lived away from the ancestral home. The court held that their “alleged need disappeared long back.”
- It said Nidhi’s husband was a senior-level government servant and had a separate residential accommodation for his family
[2]. Multi-role chopper model to be unveiled at Aero India expo
Context
Hindustan Aeronautics Limited (HAL) will reveal the mock-up of India’s first indigenous multi-role helicopter at the Aero India exhibition beginning in Bengaluru next week
Multi-role helicopter
- It is planned as a twin-engine helicopter in the 10-tonne category, capable of flying at a height of 15,000 feet, and with a range of 500 km. It can perform several tasks, including counter-insurgency operations, casualty evacuation and combat search and rescue.
- The medium-category helicopter is sought after by the services, and such helicopters have so far been imported
Production on demand
HAL is expected to put up the initial design before the services for their response, and the “design and development will commence based on a firm demand from the Army and the Air Force.”
Other helicopters
HAL is building the 5.5-tonne Advanced Light Helicopter Dhruv, which is operational in large numbers. The Light Combat Helicopter is in an advanced stage of induction and a Light Utility Helicopter is under development
[3]. ‘Naxals possess lethal edge in using IEDs’
Context
Article talks about a report prepared by the National Bomb Data Centre (NBDC) of the federal counter-terror force NSG. The NBDC of the National Security Guard (NSG), which is the nodal post-blasts investigation organisation of the country, assessed that “high explosives are the most preferred form of explosives used by the Maoists/insurgents/extremists to inflict heavy casualties on the targeted people/security forces or properties
Observations
- Increase in IED blast incidents: There was a 26% increase in IED blast incidents in 2016 as compared to 2015 and human causalities have increased by 3% in the same period
- Naxalite groups continue to be “lethal and resolute” in terms of using improvised explosive devices (IEDs) and other technology devices to perpetrate bloodshed and have caused maximum deaths of security personnel and civilians in 2016
- Distribution: As many as 112 deaths due to explosive blasts were reported in the country last year, with the maximum of 73 coming from the Left Wing Extremism (LWE) theatre, 14 from the insurgency-hit areas of the northeast, five from Jammu and Kashmir and 20 from the rest of the country
- Higher fatalities in LWE–Areas: LWE-hit States accounted for 65% of total fatalities [73 personnel], while other States accounted for 35%. The higher fatalities ratio in the LWE-hit States indicate that the Maoists are lethal, resolute, aggressive and well-adapted to the jungle terrain
- Use of high explosives, a cause for concern: In 2016, 83% of all IED blasts were triggered by the Naxals and other ultras using “high explosives,” which is a cause for concern.
[4]. Man can’t claim married sister’s property: SC
Context
A property inherited by a woman from her husband cannot be claimed by her brother, the Supreme Court has said
SC’s observation
Language used in Section 15 of Hindu Succession Act clearly specifies that the property inherited from the husband and father-in-law would devolve upon the heirs of husband/father-in-law from whom she inherited the property
Backdrop
The verdict came on an appeal filed by a man challenging a March 2015 order of the Uttarakhand High Court that found him to be an unauthorized occupant in a property in Dehradun where his married sister, now dead, was a tenant
Editorial/OPINION
[1]. Solar power breaks a price barrier
Context
The auctioned price of solar photovoltaic (SPV) power per kilowatt hour has dropped
Definitions:-
Levelized tariff
Solar and renewable energy systems “fix” your energy cost in time: Once installed, it will provide years of energy — “Levelized cost” is the average cost of this renewable energy.
Levelized Cost = Net Cost to install a renewable energy system divided by its expected life-time energy output.
For example:If a solar energy system costs Rs10,000 to install (after all rebates) and it provides 100,000 kWh of electricity over its life, then the Levelized Cost of the solar energy system is Rs 10,000 / 100,000 kWh = Rs 0.10 per kWh
The Price drop
The auctioned price of solar photovoltaic (SPV) power per kilowatt hour has dropped below ₹3 to ₹2.97 in Madhya Pradesh
Present situation
Target: installing 12 GW solar capacity in 2016-17
Actual installed: ~2GW (short by almost 10 GW) as of December
Need to hasten implementation
Author states that fastening the implementation of solar energy projects has following advantages,
1). Connecting millions of people without access to electricity
2). Meeting the national goal of installing 100 GW by 2022, a target that is being internationally monitored as part of the country’s pledges under the Paris Agreement on climate change
3). Reduction in pollution from coal-based power plants
Shortcomings of the national policy on renewables
Author states that a major shortcoming of the national policy on renewables is,
- Failure to tap the investment potential of the middle class: Rooftop solar has received less attention than the large scale grid connected installations
How can this potential be tapped?
It can be tapped via mass participation by citizens, with State electricity utilities being given mandatory time frames to introduce net-metering systems with afeed-in tariff that is designed to encourage the average consumer to invest in PV modules, taking grid electricity prices into account.
Feed-in tariff: It is a payment made to households or businesses generating their own electricity through the use of methods that do not contribute to the depletion of natural resources, proportional to the amount of power generated
Conclusion
Solar power is an emissions-free driver of the economy, generating growth in both direct and indirect employment. A lot of sunlight remains to be tapped.
ECONOMY
[1]. Commerce Dept. special arm may drive foreign trade policy
Context
Article talks about Frost & Sullivan report
Frost & Sullivan report
The report was prepared by the global consultancy firm Frost & Sullivan and submitted on December 23, 2016, to the commerce & industry ministry
Observations & Recommendations
- Commerce dept at helm: India’s future trade (policy) model should have the Commerce Department at the helm, supported by ministries including External Affairs and Finance, while a ‘transformed’ Directorate General of Foreign Trade (DGFT) should be the apex body for all trade promotion activities for the country
- Recommendation: A dedicated ministerial arm under Department of Commerce will deal exclusively with trade-related policy inputs, their formulation and their rollout with the bulk of implementation work handled by a digital platform.
- Current situation: India’s foreign trade strategy and policy is currently being piloted predominantly by the Prime Minister’s Office and External Affairs Ministry
- Higher role of ITS: Report makes a strong case for a higher profile for the Indian Trade Service (ITS) in matters of trade policies & systems
- Current situation:At present, the officials belonging to the Indian Administrative Service, Foreign Service and Revenue Service evidently have a relatively superior role over ITS cadre regarding decisions on crucial trade policy matters
- Operational implementation of FTP should be with Dept of commerce: Report advocates that the operational implementation of the Foreign Trade Policy (FTP) should reside with the department of commerce providing the trade community one single entity to deal with
With respect to DGFT
- A transformed DGFT should be made accountable for all trade promotion activities for India — providing services such as trade representation in foreign countries, research & development, market intelligence, business matchmaking services as well as public relations, advertising and marketing services
- The ‘DGFT 3.0’ — with DGFT pre- and post-liberalisation being the earlier two versions — should also provide (foreign trade) monitoring and training services, hold export promotion campaigns, industrial trade fairs and ensure greater focus on small and medium firms, the report suggested
Recruiting professionals
Noting that the DGFT needs to re-skill its resources to be successful, the report said: “Future recruitment should focus on professionals with experience and qualifications in trade and commerce from reputed institutions.”
Ease of doing business
For an improvement in India’s performance on the ease of doing business – currently ranked 130 out of 190 countries and particularly on the parameter of ‘trading across borders’ (where India is) currently ranked at a dismal 143 – it is imperative to deploy digital technology to transform the experience of doing trade in the country
Backdrop
The report comes at a time when India’s goods exports have not yet recovered fully from the impact of a slowdown in demand from December 2014 to May 2016, as well as the government’s demonetisation exercise early November
[2]. China is way ahead of India in terms of railway investment: Suresh Prabhu
Context
India is way behind China on investment in railway, including border infrastructure
Article presents an interview with Railway Minister
Give it a read once
Indian Express
[1]. Bucking the slump
Context
Budget balances imperatives of economic growth with requirements of equity in a time of global recession
Changing trends
Author states that the current budget has taken into account the global trends that are threatening to upset the world economic landscape. These events are,
- Economic uncertainty in US following election of Donald Trump as new president
- BREXIT
- Global sentiment against globalization which was reflected strongly in the BREXIT vote and the election of Mr Trump
- Rise of a protectionist view wherein nations are now looking inwards rather than outwards for economic growth
Positives of the budget
- Fiscal deficit target: Setting a fiscal deficit target at 3.2% rather than 3% to provide for the higher public expenditure in the face of a sluggish private sector investment and slow growth
Fiscal deficit = Total Expenditure – Total Receipts excluding borrowings
Note: As per the fiscal consolidation road map outlined in the Budget 2015-16, fiscal deficit is to be brought down to 3.9 per cent of GDP in the current fiscal, then to 3.5 per cent in 2016-17 and further to 3 per cent by 2017-18. The 3 per cent target would now be reached a year later than planned earlier
- Steps have been taken to offset the impact of demonetization and GST rollout
- Agricultural sector: Steps have been taken to ensure that agricultural growth does not lose momentum and maintains the 4.1 per cent level
- Increase in agricultural outlay: The outlay for agriculture has been increased by 24 per cent in the fiscal year 2017/2018
- A special support of Rs 1,900 crore has been announced to bring cooperative banks into the ambit of the core banking structure
- A micro-irrigation fund and a dairy development fund will be set up under NABARD with a corpus of Rs 5,000 crore and Rs 8,000 crore respectively. The move is expected to make credit easily available to small and marginal farmers
- Crop insurance allocation increased: The allocation for the government’s flagship crop insurance scheme, Pradhan MantriFasalBima Yojana (PMFBY), has been raised to Rs 9,000 crore from Rs 5,500 crore
- The government will also take measures to bring 40 per cent of the net cropped area under insurance
- Government has also urged the states to delist perishables such as vegetables and fruits from the Agriculture Produce Marketing Committees (APMCs) and allow farmers to sell such items directly to consumers, to realize better prices.
- Employment generation: Employment generation is another of the budget’s focus areas
- Highest ever allocation to MGNREGA: Rs 48,000 crore has been allocated to the rural job creation scheme, MGNREGA, the highest ever; this has the potential to lift one crore rural households out of poverty
- Expansion of Skill India Mission:Another significant proposal is the expansion of the Skill India Mission, with the objective of harnessing India’s demographic dividend.
- Setting up of Pradhan MantriKaushalKendras: The budget has announced the setting up of 100 Pradhan MantriKaushalKendras in 600 more districts, which will impart foreign language training to youth seeking employment outside the country
- Mahila Shakti Kendras:In order to financially empower women, Mahila Shakti Kendras will be set up in rural areas for skill development, with a corpus of Rs 500 crore
- Massive boost to agriculture: Infrastructure has received a massive boost, with an allocation of Rs 3,96,135 crore
- Highest ever allocation to Railways: The railways has received its largest ever allocation of Rs 1.31 trillion, an 8.26 per cent increase over the last fiscal
- Rail Safety Fund:A railway safety fund of Rs 1 trillion has also been announced
- Listing of Rail subsidiaries:The Indian Railways will list its subsidiaries — the Indian Railway Catering and Tourism Corporation, Indian Railway Finance Corporation and Ircon International Ltd. — in stock exchanges to give them an opportunity to grow in a competitive market and simultaneously access investments from international markets
- Increase in allocation for national highways: The allocation of Rs 67,000 crore for national highways substantially exceeds last year’s outlay of Rs 57,676 crore
- Coastal roads:Connectivity will be improved by constructing 2,000 km of coastal roads
- Gram Sadak Yojana:Rs 19,000 crore has been allocated to the Pradhan Mantri Gram Sadak Yojana
- Affordable Housing:The government’s mission on affordable housing has been given the status of an infrastructure project. It will draw more investment, helping builders to access capital from financial markets. The interest burden will fall, leading to a boom in construction of affordable homes
- Cash ceiling for donations to political parties: By proposing a ceiling of Rs 2,000 on cash donations to political parties, the government has effectively struck at a major source of unaccounted wealth
- Introducing electoral bonds
- The cap of Rs 3 lakh on cash transactions further takes forward the agenda of a cashless and corruption-free economy
- Tax Breaks to MSMEs and Salaried class: The tax breaks to the MSME sector and the salaried class is expected to drive growth by making more cash available in the economy. More people will be brought into the tax net, thereby making the economy more organised
Conclusion
Author concludes the article by stating that the budget has balanced the goals of growth and equitable development
Live Mint
[1]. A disrupter’s guide to India’s defence budget
Context
While India’s defence budget is now the fourth largest in the world, it is not providing adequate bang for the buck
Defence experts on budget
Author states that the defence experts are not very optimistic on the defence part of the Union budget. Why so? Read on to find out
3 factors
There are three factors that have, justifiably, driven the experts to such depths of pessimism.
- Personnel costs for manpower intensive army: Ajai Shukla, an expert, notes that in the manpower-intensive army, personnel costs (including pensions) account for a whopping 72% of the budget while in the leaner air force and navy, personnel costs account for 34% and 28%, respectively
- Allocation for modernization decreased due to high personnel expenses: Largely on account of these personnel expenses (which are likely to rise in the coming years), the budget allocation for modernization (or capital procurement) has shrunk by 0.9%. The navy and army have seen their modernization budget decrease by 12% and 6.4%, respectively; only the air force has seen a 12% rise in its procurement budget on account of the “mega contracts” of Rafale aircraft and Chinook and Apache helicopters
- Underutilization of a meagre allocation: Even the meagre amount that is allocated for military acquisition and modernization is often underutilized. According to noted defence analyst C. UdayBhaskar, the ministry of defence returned more than Rs13,000 crore from the capital head in 2015-16, and another Rs7,000 crore in 2016-17, which was unspent
Author’s contention
While personnel are vital, without the right equipment they become a liability
Author suggests
Few approaches that can help India to enhance its defence capabilities,
- Trimming the size: First, as several of the defence experts have noted, there is a strong case to trim the personnel size of the Armed Forces, especially the army
China’s example:
China, which faced similar budgetary challenges, has achieved significant reductions.
- Troop reduction by China: Since 1985, it dramatically cut troops on four occasions—by one million in 1985, another 500,000 in 1997, another 200,000 in 2003 and 300,000 more in 2015. In the last cut, China deliberately cut “troops equipped with outdated armaments, office staff, and personnel of non-combat organizations”
- Restructuring the army into a leaner force: As India’s economy continues to grow, there will be a natural attrition from the Armed Forces. In 2015, India reportedly faced a shortage of 50,000 personnel, including 11,000 officers. Instead of trying to desperately fill these positions India could use this as an opportunity to restructure the Armed Forces into a leaner, meaner, well-equipped military
- Selling the obsolete equipment: In addition to the size of the armed forces, India also has a large amount of equipment which is obsolete for its purposes. However, such equipment would be useful for many other countries, notably in Africa
- Providing training & maintenance for a cost: Here India might consider selling not only the equipment but also providing the necessary training and maintenance (at a cost) for it. For instance, Afghanistan, which lacks a serious air force, is an ideal candidate for such a package
- Stepping up contribution to UN peacekeeping: India could also significantly step up both its budgetary and troop contribution to UN peacekeeping (just as China has done). The budgetary contribution would not only enhance India’s clout in the world body but this money would invariably come back to India as compensation for troops and equipment.
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