- Front Page / NATIONAL [The Hindu]
- SC orders inspection of pollution check Centres
- Britain to leave EU’s single market: Theresa May
- SC asks govt. to file status report on Ganga rejuvenation
- India becomes Associate member of CERN
- Editorial/OPINION [The Hindu]
- In the nick of time
- Voting in a season of discontent
- The real meaning of independence for RBI
- An Afghan agenda for Trump
- ECONOMY [The Hindu]
- Finance Ministry suspends Dec. 21 tax circular on indirect transfers
- Industry seeks foreign partners for trade pact
- Indian Express
- Live Mint
Front Page / NATIONAL [The Hindu]
[1] SC orders inspection of pollution check Centres
Context
Highlighting the urgency to find immediate solutions to curb air pollution rather than mull over possible solutions, the Supreme Court has asked the Environment Pollution Control Authority to inspect over 900 Pollution Under Certificate stations across Delhi
Backdrop
The bench was hearing a suggestion that pollution certificates should be linked to vehicle insurance
Centre’s submission
Centre submitted that even the functioning of several of the pollution checking stations in Delhi were suspect
- Consultations with stakeholders were on to ban pet coke and furnace oil as industrial fuel in Delhi-National Capital Region.
Show cause notices
Centre submitted that 962 stations in the national Capital, 174 have been issued show cause notice for irregularities. These pollution centres check at least 5,000 vehicles a month
- Of the 962 centres, 75 have been suspended, 14 cancelled and warning notices were issued to 78
Status report
- Bench asked the centre to furnish a status report regarding the show cause notices issued to the PUC centres
- The court has asked for a status report on the proposal to ban pet coke and furnace oil by the next court hearing on February 6
[2] Britain to leave EU’s single market: Theresa May
Context
British Prime Minister Theresa May has made it clear- the U.K. will make a clean break from the European Union and leave its single market of some 500 million people
Article provides us with view of British PM in the aftermath of BREXIT and how things could shape up.
Give it a light read
[3] SC asks govt. to file status report on Ganga rejuvenation
Context
Almost two years after the Supreme Court voiced scepticism about the government’s self-proclaimed promise to clean up the Ganga river, the apex court has sought a fresh status report from the Centre on what it was doing to revive the holy river
Directions
Bench has directed the government to file a report on the construction and functioning of sewage treatment plants alongside the river, which runs through five States.
- The court wants the report by 24th Jan 17
Backdrop
The report has been sought on a 32-year-old pending public interest litigation petition filed by environmental lawyer, M.C. Mehta
Scepticism by SC
In 2014, the Supreme Court voiced its scepticism about the various efforts over the decades to return the Ganga to its pristine self, once even saying that it “does not expect Ganga to be cleaned up even after 200 years.”
- NGT, the last hope: In 2014, the Supreme Court said that its “last hope” rested on the National Green Tribunal (NGT) and referred the task of monitoring industrial units along the Ganga to the NGT.
- The apex court had even empowered the tribunal to cut off water and power connections if the units are found to be polluting the river.
IIT’s consortium
- Roadmap to rejuvenate Ganga: In January 2015, the government had informed the Supreme Court that a consortium of IITs was preparing a road map to rejuvenate the river.
- Setting up sewage treatment plants: It informed that a proposal is on track to have a total of 80 sewage treatment plants (STPs) which would process, in a day, 368 million litres of water flowing into the river in the five river basin States
- Detailed report submitted: In March 2015, the government submitted a detailed report prepared by the IITs for the revival of the river to its former “wholesome” self
Ganga River Basin Management Plan (GRBMP)
The Ganga River Basin Management Plan (GRBMP) 2015 drafted by the IIT consortium had pointed to several problems, from rapid urbanisation to over-grazing, which has led to the slow destruction of the river
[4] India becomes Associate member of CERN
Context
India became an Associate member of CERNwith the Indian government completing its internal approval procedures in respect of the agreement it had signed with CERN on November 21, 2016
What does it mean?
Following benefits will accrue to India as an associate member of CERN,
- Access to data: India will have full access to all data generated at CERN. As there are many experiments in CERN, there will be plenty of information available. When we were not an Associate member, India could data only from those experiments where we were participating
- Participation in experiments: India will be able to participate in all experiments. India may have to pay additional charges for participating in the experiments. Moreover, India can choose the experiments where it wants to participate
- Bidding opportunities will give Make in India a boost: Whenever any CERN facilities get upgraded and go through maintenance, it will provide opportunities for Indian industries to participate.
- Indian industry will be entitled to bid for CERN contracts, which will allow it to work in areas of advanced technology. So the “Make in India” will get a boost due to CERN.
- Eligible for staff appointments: Indian scientists will become eligible for staff appointments, it will enhance the participation of young scientists and engineers in operation and maintenance of various CERN projects. “Indian scientists and engineers working in CERN will learn how to operate and maintain the facilities. So when they return it will be useful for India
Does India need to pay any fees?
India has to pay about Rs. 40 crore a year as an Associate member. According to him, it is a small fee compared to the huge scientific and commercial benefits that India will stand to gain.
India & CERN: Over 50 years together
India has been actively involved in CERN’s scientific activities for over 50 years
- Substantial contributions to LHC: Indian physicists, engineers and technicians have made substantial contributions to the construction of the LHC accelerator and to the ALICE and CMS experiments, as well as to accelerator R&D projects
- Several agreements signed: In 1991, India and CERN signed a Cooperation Agreement, setting priorities for scientific and technical cooperation. India and CERN have signed several other protocols since then
- TIFR & CERN: India’s involvement in CERN began in the 1960s with researchers from the Tata Institute of Fundamental Research, Mumbai participating in experiments at CERN
- In the 1990s scientists from Raja Ramanna Centre for Advanced Technology, Indore too got involved in CERN experiment
- Researchers from TIFR, Raja Ramanna Centre for Advanced Technology and other institutes built components for an accelerator (LEP) and detectors (L3, WA93 and WA89)
- Observer status: India was granted Observer status to the CERN Council in 2002
CERN convention: The CERN convention was signed in 1953 by the 12 founding states. Currently, CERN has 22 member states. Besides India, Turkey, Pakistan, Ukraine are Associate members and Serbia and Cyprus are associate members in the pre-stage to membership
Editorial/OPINION [The Hindu]
[1] In the nick of time
Context
Goods and Services Tax (GST) Council has made some breakthroughs on outstanding negotiables that were holding up the introduction of the indirect tax regime.
Article details about the resolution of key issues pertaining to GST between centre & States.
Note: Please refer to the brief dated 17th Jan 17 for the relevant news.
Addressing concerns of industry
It is an opportune time to address some of the concerns raised by another key stakeholder — industry
- Need around six months’ time: Firms have indicated they would need about six months to gear up for the new tax regime once the laws, rules and all the minutiae of implementation, including the rates for different products and services, are known.
- Clarity required:More clarity and finesse are also needed on the harsh penal provisions, including the power to arrest, proposed in the draft GST law (that lists out 21 offences) and the creation of an anti-profiteering authority that can act against firms that fail to pass on benefits of tax rate cuts to consumers
- Preventing the return of Inspector Raj: While it is important to protect the consumer, a clear rule-based framework is necessary to ensure that one of the biggest gains envisaged from GST — an exponential change in ease of doing business — isn’t shadowed by fears of a return to inspector raj
Conclusion
Author concludes by saying that government should try and address all the gaps and shortcomings of the GST before fully implementing it, even if it results in a delay of few more weeks
[2] Voting in a season of discontent
Context
Election pundits are busy interpreting how the state of affairs in Manipur will play out in the March election.
Main issue dealt with in this article: How the ongoing Manipur economic blockade might affect the polls that are due to be conducted in March?
Give it a light read.
[3] The real meaning of independence for RBI
Context
The demonetisation decision has led several observers to express concern about the autonomy and institutional integrity of the Reserve Bank of India (RBI)
Issue: Autonomy of RBI
Not a republic
Author sets the tone for the article by stating that people raising questions about the autonomy of RBI being compromised when it surrendered to government’s will on demonetization, forget that RBI is not a self-governing republic
RBI Act
Author states that a cursory reading of the RBI Act (Section 7 on Management) lays out things quite clearly.
- Part (1) of Section 7 states: “The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest”
- Parts (2) and (3) spell out the roles for the Central Board and Governor.
- Order of precedence: There is a clear ‘seniority’ principle with (1) taking precedence over (2) which takes precedence over (3)
Author’s contention
The decision to demonetize high-denomination currency was taken by the government in public interest after consultation with RBI.
- Doing its duty: The RBI Board did its duty by ratifying/recommending the action and it was then left to the Governor and his officers to implement the decision. Surely, the RBI could not take a policy decision as major as demonetisation unilaterally. Nor indeed could it turn it down unilaterally
The exact role of a central bank
Function 1: Ensuring a low and stable inflation
Author states that it is critical to understand what autonomy and institutional integrity mean for a central bank like the RBI. The RBI, like most central banks, consists of technocrats and bureaucrats who are unelected and not directly accountable to the people. In a democracy, the final responsibility of all policy decisions must lie with the elected representatives of the people, either the government or Parliament or both.
- Demand for central bank’s independence: The notion of central bank independence first gained traction in the advanced economies when it was noticed that elected governments often chose to disregard price stability in favour of growth, especially in the run-up to elections resulting in adverse effects on the economy
- Central goal of a central bank:The central goal of central bank independence was to ensure low and stable inflation via the autonomous conduct of monetary policy. It is important to note that is not the central bank’s discretion to decide what the targeted rate of inflation ought to be (or indeed what the optimum rate of growth should be); that remains the job of the elected government. But once that target is laid down, the central bank must ensure that it meets those targets with complete operational autonomy
Situation in India
- RBI decided the rate in India: In India, until the monetary policy framework and an inflation target were spelt out in 2016, it was the RBI which decided what a reasonable rate of inflation should be
- Too much power: It was the RBI Governor — just one person — who had complete control over monetary policy goals and decisions. That was vesting too much independence in an unelected official
- The proper way:The proper way to conduct monetary policy is via explicit goals laid out by the elected government which are then executed by a group of experts — a Monetary Policy Committee — rather than one individual, without any interference from the government
Function 2: Managing Debt
Author states that the RBI is the government’s debt manager.
- A separate agency: It has been proposed that this function should be handed over to an independent debt management agency, a contention resisted by RBI
- Not an assault on RBI’s independence: The separation of debt management from the RBI is not an assault on the RBI’s independence by the government. Instead, it is to remove the conflict of interest that exists in the RBI’s functions of setting interest rates, and management of the government’s debt. The latter could influence the former when it ought not to. The RBI’s independence to carry out its primary mandate, the efficient conduct of monetary policy, will only be enhanced by separating the debt management function.
Function 3: Regulation of Banking system
The third major role played by the RBI is in the regulation of the banking system.
- Author states that like any other regulatory agency, RBI must be allowed to function independently in this regard without any government interference. Moreover, there has been no evidence to suggest that the government has interfered in any way
- Separate roles: Government is the owner of Public Sector Banks (PSBs) which control nearly 70 per cent of lendingwhile RBI is the regulator. Both the domains are independent of each other
Conclusion
Author concludes by stating that there has not been any assault on the RBI’s autonomy. The government, when it exercises its right as sovereign, whether to set an inflation target or to demonetise high-value currency, is acting well within the norms of the law and the spirit of democracy. Any attempt by unelected officials to obstruct would only be abuse of their autonomy.
[4] An Afghan agenda for Trump
Context
The U.S. President-elect must address Pakistan’s treacherous role in Afghanistan at full tilt.
Give it a go-through once
ECONOMY [The Hindu]
[1] Finance Ministry suspends Dec. 21 tax circular on indirect transfers
Context
In a bid to soothe the nerves of foreign portfolio investors spooked by a fresh tax burden on indirect transfers mooted by the Central Board of Direct Taxes last month, the Finance Ministry on Tuesday put the tax department missive in abeyance until further notice
The circular
The tax department circular issued on December 21 clarified that all foreign portfolio investors (FPIs) with more than 50% of their assets in India and owning over 5 % stake in any listed entities would incur tax under India’s indirect transfer provisions
Concerns
The stakeholders have presented their concerns stating that the circular does not address the issue of possible multiple taxation of the same income
[2] Industry seeks foreign partners for trade pact
Context
India’s top industry bodies are attempting to build a coalition with counterparts in other nations with similar interests to give a fillip to the country’s proposal for a Trade Facilitation in Services (TFS) Agreement at the World Trade Organisation (WTO)-level
The proposed TFS aims to
- Make it easier for professionals and skilled workers to move across borders for short-term work, as well as ensure portability of their social security contributions.
Global seminar
Two leading industry bodies — CII and FICCI — will hold a global seminar in Delhi and Mumbai on the topic in Feb 2017
Importance of coalition building
The importance of coalition building has been acknowledged by the WTO when it stated that, “coalitions give developing countries a stronger voice in negotiations. The resulting agreements mean that all countries, including the most powerful, have to play by the rules
Indian Express
[1] Permission To Prosecute
Context
Diverse SC judgments leave a loophole to stifle investigations against public servants
Author’s contention
Author states that the conflicting views of the Supreme Court on the precondition of “sanction” for prosecution of a public servant under Section 19 of the Prevention of Corruption (PC) Act, 1988 have created a legal loophole which could be exploited by unscrupulous public servants to stifle a criminal investigation
What does the Section 19 state?
Section 19 of the PC Act states:
“No court shall take cognizance of an offence… alleged to have been committed by a public servant except with the previous sanction.”
Balancing competing interests
The provision aims to balance two competing interests
- One is the need to ensure that an honest public servant is not hounded in the performance of his or her duties by frivolous complaints
- The other is that investigation into an allegation of crime isn’t choked at the threshold due to the power wielded by a public servant
Bar on cognizance till sanction is imposed
Section 19 imposes a bar on the court to take “cognizance” of an offence till sanction is obtained from the government.
- The bar is against the court to take cognizance for the purposes of trial
- There is no prohibition either under the PC Act or the Criminal Procedure Code (CrPC) to start an investigation by lodging an FIR or through a court-initiated investigation under Section 156(3) CrPC
Anil Kumar vs. M.K. Aiyappa (2013) judgement
Author states that a two-judge bench in Anil Kumar vs. M.K. Aiyappa (2013) 10 SCC 705 appears to have unsettled the law on this subject.
- The court held that Section 19, PC Act applies at the threshold itself and an application under Section 156(3) CrPC for investigation is not maintainable without obtaining prior sanction of the competent authority
- This has recently been followed by the Supreme Court in L. Narayana Swamy vs State (2016) 9 SCC 598
Opposite view
Author states that while the Aiyappa judgement takes the view that,
- even an investigation cannot be ordered under Section 156(3) CrPC without sanction, larger benches of the apex court have taken a diametrically opposite view. What is that view?
- The SC rightly take the view that any investigation into a crime cannot be stifled at the threshold itself by giving power to the executive to scuttle it through sanction
R.R. Chari vs. State 1951
In R.R. Chari vs. State 1951 (3 judges), the court held that there was no requirement of sanction for ordering an investigation under Section 156(3) CrPC
State of Rajasthan vs Raj Kumar (1998)
In State of Rajasthan vs Raj Kumar (1998), it was held that there was no requirement for sanction before filing a chargesheet under Section 173 CrPC
Subramanian Swami vs Union of India (2014)
A bench of five judges of the apex court in Subramanian Swami vsUnion of India (2014) held that
- Section 6A of the Delhi Special Police Establishment Act, which had required prior sanction for investigation into crimes by high-ranking public servants, was unconstitutional
- Investigation cannot be subverted: investigation is central to the criminal justice system and cannot be subverted by imposing a restriction on the police at the threshold itself
- Status is irrelevant: If there is an accusation of bribery, graft, illegal gratification or criminal misconduct against a public servant”, the status of the offender is not relevant
Author argues
At this point author argues that,
- If the abovementioned is the stated legal position, then there is no rationale as to why a court should be excluded from directing an investigation under Section 156(3) CrPC without sanction but the practical consequences of Aiyappa and Narayana Swamy result in prohibiting even the issuance of a direction for investigation by a court under Section 156(3) CrPC
Impact
Author points out that the precondition of “sanction” could give a possible tool to the executive to evade a potential investigation
- A high-ranked public servant could influence the police not to set criminal law in motion by registering an FIR. And the hands of the court would be tied.
High Courts start to disregard Aiyappa judgement
Author states that several high courts have started to openly disregard Aiyappa
- Maneesh vs State: The Kerala High Court in Maneesh vs State held the judgment inAiyappa was not binding on it
- C. Shiv Kumar vs State: More interestingly, the very judge of the High Court of Karnataka who penned down the Aiyappa judgment, which was upheld by the Supreme Court, has in a subsequent judgment in N.C. Shiv Kumar vs State held that his judgment ignored “settled principles established by earlier judgments of the apex court rendered by larger benches”.
Conclusion
Author concludes by stating that it is need of the hour that SC render an authoritative pronouncement and correct the apparent anomalies in the state of the law on sanction.
[2] Cities at crossroads
Context
Article focusses on what is known about waste-to-energy plants
3 essential ingredients
Author states that a credible municipal solid waste management solution should have 3 essential elements,
- Segregation: Segregation of biodegradable or wet waste from dry waste at source
- Employing Bio-methanation plants: : Once segregation is achieved, municipal governments can use wet waste to produce compost and biogas in bio-methanation plants
- Waste-to-energy plants: Dry waste, after removing recyclable elements, should go to waste-to-energy plants: This will reduce the volume of waste that remains to be sent to landfills
Technologies used by Waste-to-energy plants (W2EP)
Author states that a number of waste-to-energy plants are coming up in urban India, using
- Incineration
- Refuse Derived Fuel (RDF)-based combustion or conversion technologies such as pyrolysis and gasification
Note: Incineration-based waste-to-energy plants rely on mass burning of municipal solid waste, which involves complete combustion of miscellaneous waste materials into ash. The latter is also true of RDF combustion-based plants
The confusion & questions
Author points out that following questions and apprehensions have been voiced in public domain,
- Damaging impact: Any potential damaging impact of waste-to-energy plants on the environment, the quality of air in particular, and consequently, on public health
- Financial feasibility: Whether these plants are financially viable
Need for high quality emission filters
Depending on what is being combusted (and this is a huge challenge to determine with municipal solid waste), the gases generated during combustion of waste may contain dioxins and furans, which are toxic and can be lethal.
- Emission control: These plants therefore need to put in place emission control filters of a very high standard to check the release of harmful gases into the atmosphere. There is a need for continuous monitoring of emissions and sharing information openly, if public apprehensions are to be put at rest
Global situation wrt incineration based plants
- Singapore: Singapore uses incineration with due environmental precautions in managing its municipal solid waste after recycling 60 per cent of its waste (among the highest rates in the world)
- Japan: Japan and a number of European countries also rely on incineration, with due precaution, as they try to minimize the waste that needs to go to landfills
- United States: The United States had a long free run with incineration plants, but thanks to the environmental movement, there has been a significant tightening of regulations with respect to emissions since the 1970s. The abundance of land in the US led to greater recourse to landfills. But incineration plants are making a comeback and with these, so is the need for vigilance on emissions
Cleaner technologies
Author states that the innovations in waste-to-energy technologies worldwide have been focusing on new technologies which can deliver cleaner emissions but are considerably more expensive, like
- Pyrolysis
- Gasification
- Plasma gasification
How abovementioned technologies work?
These technologies involve,
- Heating solid waste at very high temperatures: Heating of solid waste at very high temperatures in an oxygen-controlled environment, such that the thermal reactions produce synthesis gas (or syngas)
- Advantage of Syngas: It has the advantage that it can be burned directly or transported through pipelines and/or tankers for use in electricity generation, refining, chemical and fertiliser industries
- Expensive: While syngas can be converted into a clean energy source, the technologies are expensive
Examples from India
A waste-to-energy plant based on pyrolysis-gasification technology was set up in Pune in 2012, but it has failed to deliver after repeated trials. Why it failed? It failed due to,
- High cost of cleaning syngas
- Number of technical snagsincluding the fact that it had overestimated the calorific value of the waste and underestimated the moisture content. The company now produces RDF using 300 tonnes of dry municipal waste per day — less than half of what was intended in the design of the original plant.
Failure of Pollution control boards
Author states that pollution control boards set up by the government of India and state governments were expected to provide technical assistance and keep a check on the emissions/environmental footprints of waste-to-energy plants but they have not kept pace with the rapidly evolving technology in the field of pollution control and were not able to check routine defaulters
NGT offers a ray of hope
- NGT was set up: Recognising the need for a more empowered body that could enforce adherence to environmental regulations, the National Green Tribunal was set up in 2010, as an independent judicial body under an act by the Parliament of India
- Nudging the action out of boards: As a judicial body in charge of supervisory jurisdiction over all environmental matters, NGT has, in many cases, nudged the pollution control authorities and State Pollution Control Boards/Municipalities to act
- It has been putting the weight of legal compensation and enforcement behind its rulings.
Hopefully, NGT will receive full support from the Central Pollution Control Board in its quest for scientific evaluations of the environmental impact of waste-to-energy plants
Need of subsidy
Author points out that the level of subsidy required to make W2EP financially viable presents another set of problems
- Significant capital required: These plants involve significant capital investment
- Cost is higher: The cost of energy produced is higher than from the grid, unless there are government subsidies
Why subsidy should be given for W2EP?
- Resource recovery: They help in resource recovery by generating electricity from waste
- Cost savings: They help in saving cost of transportation to a landfill
- Making electricity produced competitive: Meagre benefits from municipal bodiessuch as land for free or at token amounts plus a tipping fee for each tonne of waste processed doesn’t make the electricity produced from W2EP competitive to conventional sources
Author suggests
A transparent method must be found to determine the maximum subsidy feasible through competitive bidding
Conclusion: W2EP not a solution to our energy problem
Author concludes by stating that it is important to emphasise that electricity generation from waste is not the most efficient way of generating electricity. It is a way of resource recovery from municipal solid waste and should be considered as a by-product of waste management. Enthusiasts sometimes speak of waste-to-energy as a solution to our energy problem — this is not correct. However, if implemented to global emission standards, it could be a pathway to scientific and sustainable disposal of municipal solid waste, given the scarcity of urban land in the country, while also generating some much needed electricity
Live Mint
[1] Tough times ahead for India in Afghanistan
Context
Pakistan has managed to sell the flawed theory that the Taliban can be used to fight the Islamic State
Give it a light read
[2] What is the optimal policy response to demonetisation?
Context
A positive demand shock is not the optimal response to a negative supply shock as it will only exacerbate price pressures
Demonetization has already been covered in ample detail.
Give it a go-through once
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