Brief of newspaper articles for the day bearing
relevance to Civil Services preparation
- GS PAPER 2
- Easy visas for Bangladeshis a mirage {Foreign Policy}
- Expanded Panama Canal is now open {International Relation}
- Caution on the coastline {Bills and Laws}
- The writing on the great wall {Foreign Policy}
- GS PAPER 3
- Rubber sector headed for new crisis {Agriculture}
- Banking on future {Economy}
- S4A won’t solve the bad loans problem {Economy}
- Now, faster credit for urban poor {Economy}
GS PAPER 2
[1]Easy visas for Bangladeshis a mirage
Context
- The Ministry of External Affairs is pushing hard for the relaxed visa norms for citizens of Bangladesh aged above 65 and below 13 years.
Analysis
- These relaxed visa norms (5 years multiple entry visa) were announced by External Affairs Minister, Sushma Swaraj when she visited Dhaka in 2014 but it met with a strong opposition from intelligence agencies and govts. of West Bengal and Assam and hence no developments has occurred on this front.
Why is there a resistance?
- Intelligence agencies believe that this relaxation would lead to an influx of migrants from Bangladesh to India, which has been a big problem from India since years now.
- However, with proper checks to detect violations and by making compulsory personal appearance at FRRO office every year for multiple entry visa, this problem can be weeded out to a large extent.
Conclusion
- State likes Assam which believe that immigrants are taking away jobs and resources from their own people have a valid point too. But in India’s national interest and considering the cordial relationship it shares with Bangladesh, such small gestures wlll go a long way in posing India as a friendly neighbour.
[2]Expanded Panama Canal is now open
News
Expansion of Panama canal.
About Panama Canal
- The Panama Canal is a man-made 48-mile (77 km) waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean.
- The original Panama Canal was first used in August 1914. It was built by the US and handed over to local control in 1999.
- The canal cuts across the Isthmus of Panama and is a key conduit for international maritime trade.
- There are locks at each end to lift ships up to Gatun Lake, an artificial lake created to reduce the amount of excavation work required for the canal, 26 metres (85 ft) above sea level.
- One of the largest and most difficult engineering projects ever undertaken, the Panama Canal shortcut greatly reduced the time for ships to travel between the Atlantic and Pacific Oceans, enabling them to avoid the lengthy, hazardous Cape Horn route around the southernmost tip of South America via the Drake Passage or Strait of Magellan.
Key points
- Construction on the new lane for the canal, which runs for 77km (48 miles), began in 2007 and was due to finish in 2014.
- It allows a new generation of much larger ships, known as Neopanamax class vessels, to ply the canal.
- Neopanamax freighters can carry up to three times the cargo of older and smaller Panamax ships.
Challenges Ahead
- The canal could face competition from a new passage in Nicaragua.
- The controversial 278km (172 mile) scheme, being built by a Chinese firm, will be longer, deeper and wider than the Panama Canal.
- Its construction started in 2014 and it is estimated to cost $50bn (£32bn).
[3]Caution on the coastline
Issue
- Critical analysis of Shailesh Nayak Committee after its review of the Coastal Regulation Zone Notification.
- For background, refer to Coastal zone report relaxes curbs on constructions.
How have the coastal zones been classified under the 2011 Notification?
- In the 1991 Notification the CRZ area was classified as CRZ-I (ecological sensitive), CRZ-II (built-up area), CRZ-III (Rural area) and CRZ-IV (water area).
- In the 2011 Notification the above classification is retained.
- The only change is the inclusion of CRZ-IV, which includes the water areas upto the territorial waters and the tidal influenced water bodies.
CRZ I- ecologically sensitive areas such as mangroves, coral reefs, salt marshes, turtle nesting ground and the inter-tidal zone.
CRZ II- areas close to the shoreline, and which have been developed.
CRZ III- Coastal areas that are not substantially built up, including rural coastal areas.
CRZ IV- water area from Low Tide Line to the limit of territorial waters of India
Key points:-
- The Committee has acknowledged that there are ambiguities that exist in key baseline data, including the demarcation of high and low tide lines and the coastal zone boundary, which has affected the preparation of Coastal Zone Management Plans. Such plans are central to the implementation of any new CRZ notification.
- Transferring control of development in the CRZ-II zone from the Environment Department to State Town Planning authorities, as proposed, would mark a radical shift in governance.
- Also, the suggestion that construction and other activities could be taken up in CRZ-III zones just 50 m from the high tide line in densely populated rural areas under State norms (with the responsibility to rescue and rehabilitate during natural calamities left to local authorities) could be based on an over-estimation of the capacity in such bodies.
- Proposing new, lightly regulated tourism in “no development zones” is extraordinary in such circumstances.
What should be done?
- The proper course would be to identify specific areas for such activity, assess its environmental impact, demarcate the area under the State’s management plans, and fix responsibility for enforcement, particularly for pollution control.
- Changes to the CRZ notification should also mark an end to the half-hearted attempts made over the years at participatory governance involving local communities.
- Ensuring economic development and a better quality of life for them is unexceptionable as a goal, but it must pass the test of sustainability.
Conclusion
- Environmental disasters highlight the efficacy of good rules and regulations in minimising harm to people, and loss of economic assets.
- The guiding principle for any set of rules regulating human activity along India’s 7,500 km coastline has to ensure the long-term welfare of the millions of people who live in harmony with a fragile ecosystem.
[4]The writing on the great wall
Issue
- Analysis of India’s efforts to seek membership into Nuclear Suppliers Group(NSG). And what should India do now after its failed endeavor?
For background, read the following articles in the same order:-
China’s attitude towards India’s ambition
- In 2008, it supported India for NSG waiver because back then almost all the countries were in favour of granting waiver to India. And it did not wanted to be the only one to raise objections.
- It showed its support at the last moment.
- But now, China has indicated it would be willing to support India’s membership only if India and Pakistan are admitted together.
- It has kept India on the same page as Pakistan.
- And understanding its global power, it now seeks to project itself in the same category as U.S.A.
- And, it has support of many countries which advocates for a criteria-based rather than a country-specific approach for admitting new members.
What if criteria based guidelines are materialised?
- If there is a fresh discussion on so-called “criteria” applicable to all non-NPT applicants that the criteria on the basis of which India has already received a waiver could be reopened.
- India should be careful that in subsequent deliberations the NSG does not revisit the terms and conditions of the India-specific waiver.
- In case such a threat is perceived, it is better to preserve the substantive gains already obtained through the waiver rather than to push hard for membership.
NSG waiver vs NSG’s membership
| NSG waiver | NSG’s membership |
| The waiver has allowed India to engage in civil nuclear commerce with a number of countries.
It has entered into long-term nuclear fuel supply agreements with a number of supplier countries and is negotiating the supply of advanced nuclear reactors with Russia, France and the U.S. |
Membership of the NSG would not make a substantive difference except that it would make the conditions for international civil nuclear commerce and cooperation more predictable in the long run and also ensure that in any future amendments to NSG guidelines India is an active participant. |
Conclusion
We should take advantage of the NSG experience to carefully assess these changes, their impact on India and fashion an appropriate response strategy.
That is more important than the pursuit of NSG membership.
GS PAPER 3
[1]Rubber sector headed for new crisis
Context
- Central government has taken a step to reduce the import duties on rubber products. This move will affect the livelihood of Kerala’s rubber farmers.
Analysis
To give way to India-Malaysia comprehensive economic agreement, the notification by Central Board of Excise and customs has done the following:
- The import duties on new and retreaded tyres of cars and buses are slashed to 5%
- Import duties on aircraft tyres, agricultural machinery and construction machinery is reduced to zero.
- A number of zero tariff items have been listed (eraser, surgical gloves etc.)
This tariff reduction is dangerous for state like Kerala. Indian manufacturer would want rubber at cheaper prices from rubber farmers so as to compete with the cheaper imports and remain viable. This will put a great stress on the rubber farmers whose livelihood will be at stake.
Conclusion
- One way out of this is that Kerala can get rubber listed as sensitive item and give reasons of livelihood issues for the same.
- But this is not the real solution as the real problem lies with the rampant signing of foreign treaties with due consideration to domestic problem.
- While signing such agreements the national government must ensure not to give in to the demands which will put it’s own states in crisis.
[2]Banking on future
Context
- RBI has come up with a document -”Payment and Settlement Systems in India: Vision 2018” which reveals a plan to boost e-payments and as far as possible, make India a cashless society.
Analysis
- Similar document was released four years ago as well and since then e-payments in the form of RTGS and NEFT have increased three times. Banking transactions through mobile has grown a whopping seven times.
- It is a fact that appropriate policies and infrastructure must be put in place if we want the share of cashless transactions to increase.
- RBI aims to achieve this by putting the focus on a wide access to various e-payment services while at the same time providing convenience, security, robust infrastructure, proper supervision and timely resolution of grievance of the customers.
Reasons for massive increase in e-payments
Neither the govt. nor the RBI would have expected such a massive increase in e-payments. This boost was made possible because of a variety of reasons:
- Mushrooming of digital payment companies (Paytm, Mobikwik etc.) using which the customer could pay his/her bills increased the e-payments.
- The huge growth in e-commerce and mobile banking has lead to more and more cashless transactions.
Not only are e-payments convenient for the customer but they are equally beneficial for the govt. as well. This is because e-payments have a potential of improving the tax revenues and lowering of tax avoidance.
Conclusion
- Such a vision document at this time when India has the required infrastructure – the unified payment interface (UPI) will go a long way in increasing the share of e-payments in the overall transactions of the country.
[3]S4A won’t solve the bad loans problem
Context
Scheme for sustainable structuring of stressed assets (S4A) which was unveiled earlier this year by RBI to help the banks deal with bad loans does not seem to be bearing any fruit.
What is S4A?
|
S4A does not allow the bank to either offer any moratorium on debt repayments or to change the payment schedule or interest rates. These options were there in Corporate Debt restructuring and Strategic debt restructuring schemes.
Why S4A does not seem to solve the problem?
- Projects which have commenced their operation come under S4A. But there are many projects (esp. Power projects) which have not yet started their operations and hence can not be covered under S4A.
- The revival package under S4A relies on the current cash flows to determine the sustainable debt. While drafting the scheme the banks can not change the terms and conditions of the loan.Any project functions in a dynamic business scenario and hence unless the bankers who will manage the show are able to respond to the changes in the external environment, it will be difficult to achieve commercial viability.
- The notion that the solution of all the bad loan problems is the conversion of debt into equity is a wrong notion. This can bee seen in the case of Kingfisher airlines where despite doing the same the airlines could not be saved.
- S4A does not have anything for securing the interest of the unsecured creditors such as supplier of raw materials. They can go to the court even after the bank decides to go ahead with the scheme. They might be unsecured but they can definitely delay the process which can result in the banks and the company losing the time to change its fortune.
Conclusion
S4A like the previous Strategic Debt Restructuring (SDR) and Corporate Debt Restructuring (CDR) scheme may look as the solution to the rising problem of bad loans but it might meet the same fate like that of SDR and CDR owing to some of its provisions.
[4]Now, faster credit for urban poor
What happened?
- The Ministry of Housing and Urban Poverty Alleviation (MHUPA) has proposed to appoint a Central nodal agency for speeding up disbursal of bank loans to the urban poor.
Key points
Experts are going to discuss ways and means of scaling up skills training and credit flow for self-employment of urban poor, with regard to Deendayal Antyodaya Yojna-National Urban Livelihoods Mission (DAY-NULM).
Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM):
- National Urban Livelihood Mission (NULM) is now renamed as ‘Deen Dayal Antyodaya
Yojana-NULM’ and in Hindi as ‘Deen Dayal Antyodaya Yojana-Rashtriya Shahri Aajeevika Mission’.
Objective:–
- To reduce poverty and vulnerability of the urban poor households by enabling them to access gainful self employment and skilled wage employment opportunities,resulting in an appreciable improvement in their livelihoods on a sustainable basis,through building strong grassroots level institutions of the poor.
- The mission would aim at providing shelters equipped with essential services to the urban homeless in a phased manner.
- In addition,the mission would also address livelihood concerns of the urban street vendors by facilitating access to suitable spaces,institutional credit,social security and skills to the urban street vendors for accessing emerging market opportunities.
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