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PREFACE

With the present shift in examination pattern of UPSC Civil Services Examination, General
Studies II and General Studies III can safely be replaced with Current Affairs. Moreover,
following the recent trend of UPSC, almost all the questions are issue-based rather than
news-based. Therefore, the right approach to preparation is to prepare issues, rather than
just reading news.
Taking this into account, our website www.iasbaba.com will cover current affairs focusing
more on issues on a daily basis. This will help you pick up relevant news items of the day
from various national dailies such as The Hindu, Indian Express, Business Standard, LiveMint,
Business Line and other important Online sources. Over time, some of these news items will
become important issues.
UPSC has the knack of picking such issues and asking general opinion based questions.
Answering such questions will require general awareness and an overall understanding of
the issue. Therefore, we intend to create the right understanding among aspirants How to
cover these issues?
This is the Third edition of IASbabas Monthly Magazine. This edition covers all important
issues that were in news in the month of August 2015.
Another important thing to note here is, IASbaba had come up with a innovative, alternate
thinking process with Connecting the dots in its previous edition. Connecting the dots has
got very good reviews and this has compelled us to incorporate in this edition too. Under
each news article, connecting the dots facilitates your thinking to connect and ponder over
various aspects of an issue. Basically, it helps you in understanding an issue from multidimensional view-point. You will understand its importance while giving Mains or Interview.

You dont always get what you wish for, but you get what you work for!!

All the Best

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INDEX

IMPORTANT ISSUES OF PAST YEAR

Reforms in Global Economic Governance


South-China Sea: Issues & Prospects
Surrogacy in India: Issues & Challenges

NATIONAL
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.

(Pages: 6 62)

Parliament stalemate : An analysis


Railway safety in India: A keen look
Privatization of Air India : A No from the government
Sugar industry of India under turmoil
Higher education sector in India : An analysis
Real Estate Bill: panel backs Government on locking up only 50% of buyer funds
A basic right is in danger: A dangerous convergence of DNA- profiling and Aadhaar
Is there an Elitist bias in Public Policy making?
Swaraj in Academy: Is loss of Autonomy trapping Higher education?
Smart City: Smart Living, People, Mobility Economy, Environment
Indigenous medicine : Natural way to Holistic Health
Government finally paves way for Land Acquisition Bill
Peace accord signed between Centre and Naga insurgent outfit.
Refugees as citizens
Banning Internet Pornography: Is a right violated??
Centrally sponsored schemes (CSS) :Slimming Down
Indias Inverted Abortion Politics
Shed the taboo around organ donation
The Killer Scam-Vyapam Scam
Criminal justice system in India : A critical analysis
Rising healthcare costs : a burden on poor

INTERNATIONAL
1.
2.
3.
4.
5.
6.
7.
8.

(Pages: 5-14)

(Pages: 63 80)

A tale of two nuclear deals


Constitutional Crisis: As Nepal fumbles with identity issues, an open threat of separatism raises new
concerns.
India- Bangladesh: Time to Look at Teesta
China factor in India Maldives relation: an analysis
Asian geopolitics
Indias ties with West Asia : An analysis
India Israel ties : A close look
The sprouting of the look west policy

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ECONOMICS
1.
2.
3.
4.
5.
6.
7.

CSR: Corporate Should Reach out


Generic drugs ban prompts India to freeze EU trade talks
Capital infusion in public sector banks
Performance of Public Sector Banks in India : An analysis
Payment Banks: Banks for the unbanked aam aadmi
New financial commission
Diminishing credibility of Indian Pharma

ENVIRONMENT

(Pages: 81 96)

(Pages: 97 100)

Green power : Renewable Energy


Climate Change and India- What to expect?

SCIENCE & TECHNOLOGY

(Pages: 101 102)

Supercritical technology: An issue of ultra-supercritical importance

DO YOU KNOW?

(Pages: 103)

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IMPORTANT ISSUES OF PAST YEAR

Reforms in Global Economic Governance

Recently adopted measures like BRICS Bank and Asian Infrastructure Investment Bank (AIIB)
questions the global centralizing economic trend as set by IMF and World Bank. Their failure
and structural bottlenecks have forced emerging economies to come up with their own set
of economic governance.
Issues with current system

IMF reforms- There are voices against IMF Quota reforms


Representation of emerging and weak countries- Changing global order demands
proper representation of emerging and weak economy. Globalization is not about
depending without power, it is about equal say and reciprocal relationships.
Dynamism in executive board: Representations of Finance ministers in global
financial institutions like IMF and WB
As the global economic crisis unfolded, the Group of 20 (G-20), BRICS, ASEAN, SCO
etc and emerging market countries assumed a leadership role on global economic
issues.
The structure of international organisations no longer reflects the centre of global
power.
The power imbalance is not just a problem because it is inequitable. Growth in
emerging markets and the slow resolution of the European debt crisis present
different problems but their solutions are linked. If the IMF and World Bank respond
to the demands of emerging markets for reforms, they will be better able to deal
with European governments
Voting power for BRICS: Because votes in these organisations are tied to the size of a
states economy.
G-20 has lost its relevance in contemporary times because of several bilateral
engagements. It has become a formal set up for meetings.
IMF voting reforms require US congressional approval, which has yet to occur.

Critical Analysis
The consequences of banks like BRICS and AIIB for the IMF and World Bank would be
disastrous. Not only would competition limit their ability to lend, but differences in
conditionality would alter the course of policy reform in borrowing countries. Allowing the
emergence of a BRICS bank or AIIB would undo the commitment to multilateral leadership
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enshrined at Bretton Woods. It will divide the world into multiple regions and may set
platform for cold war like situation because of stiff competition.
Apart from competition, the euro zones abuse of the IMF as a financial surrogate shows
why the institution needs to be reformed. Political usage of monetary organizations by US
and European Union. The focus on austerity and the lack of results also demonstrate a
pressing need to invigorate global economic governance, as one of the casualties of the
crisis has been the independence of the IMF.
Comment
Due to globalization economic activities are integrated. Rising emerging and developing
nations are involved globally for business. Institutions like IMF and World Bank merely
represents all countries in terms of voting rights and other power sharing. Revise the
selection process for leaders of the IMF and the World Bank so that the process is based on
merit rather than great-power preferences.
At the time of crisis, the efficacy of IMF and WB has been questioned due to political usage
of institutions by developed countries. G-20 has been blamed for lobbying among
developed nations thereby diminishing the role and need of weak developing and emerging
nations.
Creation of other regional institutions are in place like BRICS which would imbalance the
structure of international monetary institutions if they went on to have their own banking
and monetary system- like the creation of BRICS Bank and AIIB. It would provide
competition and rise of regionalism. This would prove disastrous in longer run as trade and
economy are well integrated now and sustainability of closed monetary policy will be prone
to global meltdown.
On the other hand establishment of such new banking or financial systems are only recent
phenomenon-that too because of present and past failures. There are many positives in
such moves for emerging economies like China, India and Brazil etc. The power shift has to
occur according to the demand driven by contemporary needs.
Suggestions

Reforms are needed at political level before economic reforms as in UNSC. Because
the power sharing is misbalanced in political institutions that governs the power
sharing in economy also. Unless that is done holistic global economic governance will
never happen.
Equitable representation will ensure vulnerability of specific nation towards specific
policy change of reserved currency nations and would lessen the chance of global
economic crisis as happened in European nations.

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The case of monopoly and using political power to finance the weaker would be
checked if proper representation and transparency is there.
Global institutions should have representations from all nation: Like in the
directorate and committee membership of IMF and WB, Finance ministers should be
included
Conditional funding would be checked-like that happened in Greece and Egypt
Also, these institutions never work well for human rights and assistance. Rather for
political and strategic importance-decisions are governed by major allies and
powers.
The outbreak of the crisis and its spillover to the entire world reflect the inherent
vulnerabilities and systemic risks in the existing international monetary system.
The reform should be guided by a grand vision and begin with specific deliverables. It
should be a gradual process that yields win-win results for all.
In the area of other international negotiations like WTO and Climate change, the
clout of major developed nations are always high and that is affecting the global
negotiations and environmental problems.
IPR issues are also violated or imposed through bilateral dealings in lieu of financial
assistance.
Additional reforms will strengthen the capabilities of the Fund and allow it to
become a more useful partner in global policy making.
Overall, the economic reforms would only happen when political reforms are done
which will set the precedence for other reforms to take place.

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South-China Sea: Issues & Prospects

The South China Sea has been responsible both for the parting as well as the bonding of
several international actors. Various stakeholders are involved because of regions strategic,
economic and other important interests. Mainly Chinas assertiveness are posing threat to
ASEAN nations including India and Western involvement (USA) has gained momentum as
part of their strategy to contain China. Overall, important issue w.r.t geopolitical and
strategic underpinnings
The South China Sea is a marginal sea that is part of the Pacific Ocean, encompassing an
area from the Singapore and Malacca Straits to the Strait of Taiwan.
A marginal sea is a partially enclosed sea adjacent to or widely opens to the open ocean at
the surface, but bounded by submarine ridges on the sea floor.
Importance of South China Sea
Strategic and economic importance

Stretching from Singapore and the Strait of Malacca chokepoint in the southwest to
the Strait of Taiwan in the northeast, the South China Sea is one of the most
important energy trade routes in the world. Almost a third of global crude oil and
over half of global liquefied natural gas (LNG) passes through the South China Sea
each year.
The sea lane running between the Paracel and Spratly Islands is used by oil tankers
moving from the Persian Gulf to Japan as well as by warships en route from the
Indian Ocean to the Pacific.
Security in the SCS is a concern both for regional countries such as China, Vietnam,
Philippines, Malaysia, as well as the extra-regional countries, including India, due to
their strategic and economic interests in this region. Any conflict in the SCS will pose
a threat to regional and international Security.
Territorial sovereignty, contention on energy, significance of the geographic location,
threat to maritime security and overlapping maritime claims are at the core of the
SCS dispute. Some scholars suggest that for the next 20 years, the SCS conflict will
probably remain the worst-case threat to peace and security in the ASEAN region.

Other significant importance of the region

The SCS, an integrated ecosystem, is one of the richest seas in the world in terms of
marine flora and fauna, coral reefs, mangroves, seagrass beds, fish and plants. The
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sea accounts for approximately 10 per cent of the annual global fisheries catchment,
making it extremely viable for the fishing industries of nearby countries.
Furthermore, value-added production (canning, filleting, fresh, frozen and chilled
processing) has translated into valuable foreign exchange earnings and job
opportunities for countries in the region.
Finally, large quantities of coal from Australia and Indonesia, the worlds two largest
coal exporters, pass through the South China Sea to markets around the world,
especially to China, Japan, and India.

Indias interests in South China Sea

At the outset it is important to state that India has a great stake in the South China
Sea. Our entire trade with China, Japan, Vietnam, Philippines Indonesia, Malaysia,
Brunei and 55% of trade with US passes through the South China Sea.
In addition India is also interested in oil and natural gas available in the region.
India has signed an agreement with Vietnam to acquire two more oil and gas blocks
for exploration besides deciding to step up cooperation in key areas of defense,
security, trade and counter-terrorism.

Imperatives for India

There are compelling reasons for India to protect the sea lanes in the SCS. First, it
considers an unimpeded Right of passage essential for peace and prosperity in the
Asia-Pacific region.
Second, India favors peaceful resolution of the dispute, in accordance with
international law, including the United Nations Convention on the Law of the Sea, as
opposed to the use of threat in resolving competing claims.
Access to resources such as oil, natural gas, food and minerals is now high on the
agenda of global issues to be faced in the years ahead. Indias increasing involvement
in the SCS region illustrates the relationship between its strategy and the need for
resources, and for the routes and logistical systems necessary for their transportation.
Undoubtedly, the SCS is a critical corridor between the Pacific and Indian Ocean for
commercial and naval shipping. In view of the emerging challenges in the region, India
is strengthening its engagement with the ASEAN region steadily.
India recognizes the strategic importance of Southeast Asia and the Indian Ocean for
defence of the Indian peninsula. Indias prosperity is dependent, almost exclusively, on
sea trade.
Land routes from the Indian subcontinent are few and provide little facility for
commerce. Safeguarding the sea lanes is therefore indispensable for Indias
development as its future is dependent on the freedom of the vast water surface. A

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secure and safe sea lane is important for Indias industrial development, commercial
growth and a stable political structure.
Challenges ahead for India

There are some apprehensions in India and other stakeholders about Chinas
ambitions in the SCS.
Chinese assertiveness and her tendency to unilaterally seek to change the status
quo have the potential to impinge upon others commercial and strategic interests in
the SCS. Though military conflict over freedom of navigation and access to maritime
resources is neither necessary nor inevitable, it is natural for India and other players
to address Chinas threat perception and to promote their national interest.
India has a legitimate interest in safeguarding the sea lanes and access to maritime
resources. With a considerable expansion of Indias engagement with the SCS
littoral states, especially with Vietnam in oil and gas explorations and defense
exercises-India appears to be emerging as an indispensable element in the strategic
discourse of this region. This may irk China
India could be a valuable security partner for several nations in the Asia-Pacific
region, provided it sustains a high economic growth rate and nurtures the
framework of partnership that it has enunciated in the region.

Initiatives by different nations

US pivot to Asia policy- targeted against China and more importantly to establish a
prosperous relation with ASEAN nations. Again the driver is the rich resources of the
region.
Indias active involvement in this region- ASEAN look towards India as the only
nation in South Asia who can challenge the might of China.
Chinas assertive presence in the region along with dispute with Japan over East
China Sea.
Military expansion of China- Fully trying to grow its clout with capabilities of Blue
Water Navy and other state of art military advancements.
Vietnam and Philippines ordered more submarines from other nations- Especial
treatment by US and support in defense.
USA and Philippines conducted naval exercises
Japan and Vietnam increased their collaboration- to counter China
Close relations between India and Japan is seen as to counter China. Japan feels that
India will support its interest in East China Sea dispute.
Chinese cabinet approved the establishment of prefectural level city of Sansha to
administer the Paracel (Xisha) and Spratly (Nansha)island groups- both of these and
their surrounding waters are under dispute in South China Sea.
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China plans to set up a military command in the Sansha islands.


Recently China announced Air Defense Identification Zone [ADIZ] over disputed
areas in East China Sea. According to critics, it may extend ADIZ over south china sea
when demand arises

Solution

China wants the dispute to be resolved by bilateral negotiations with concerned


nations but the reality is that small power nations like Vietnam, Philippines cannot
force big power like China. But other nations want international mediation.
Recently India and Vietnam said that the freedom of navigation in the East
Sea/South China Sea should not be impeded. They called on all parties concerned to
exercise restraint, avoid threat or use of force and resolve disputes through peaceful
means.
The two sides called for collective commitment of the parties concerned to abide by
and implement the 2002 Declaration on the Conduct of Parties in the South China
Sea and to work towards the adoption of a Code of Conduct on the basis of
consensus.

Impact on changing dynamics of geopolitical relations:

US pivot to Asia policy to balance China and have economic gains by sidelining to
ASEAN countries
India-Japan proximity
ASEAN looking at India to counter China- India-ASEAN relations
Impact on India-China relations

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Surrogacy in India: Issues & Challenges

Surrogacy has been subjected to huge debate since India has evolved into a
surrogacy haven and exploitation of women. There is no regulatory law except
guidelines by Indian Council of Medical Research (ICMR).

Introduction

Surrogacy is the derived from Latin term which means 'to substitute'. Surrogate
mother is a process where a woman is hired to carry and deliver a child for another
woman or couple with an agreement that child will be given to them after the birth.
Generally there are two types of surrogates, gestational surrogates where egg and
sperm from intended parents or unknown donors are put together using IVF to
create embryo which is then implanted into surrogate mother uterus and Traditional
surrogate where the sperm from intended father or unknown donor is implanted
into surrogate mother uterus for natural fertilization to take place.
Surrogacy also referred to as artificial insemination, was allegedly believed to have
been used by royal families as a way to manage their male fertility that will keep the
family blood line intact for many years.
What started as an act of love between family members has now turned into
commercial business. India created history by being the first country to legalize the
commercial surrogacy in 2002. In most of the countries it is still not legal. India has
become the preferred destination for foreign couples desiring pregnancy through
surrogacy. The relatively low cost to acquire surrogate mother, easy availability of a
large pool of surrogates, good medical infrastructure and legal freedom which don't
restrict single, gay and unmarried couples from availing this form of ART has taken
India to spiraling heights in the field of surrogacy. The technology which was evolved
to give joy of parenthood to infertile couples has now become a business leaving
behind traditional values and ethics.

Issues and Challenges

There continues to be much debates and controversies surrounding surrogacy. The


process is emotionally and physically stressful for surrogate mother and it is possible
to develop emotional attachment with the child she is carrying that can create great
amount of suffering on all the sides.
There are also debates over the infringement of baby's fundamental right to
mother's milk. The citizenship of the child born via Indian surrogate mother but
whose biological parents are foreign nationals has created much debated and
concerns because several countries have banned surrogacy and do not recognize the
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children born through assisted means as their citizens.


The booming baby industry is highly unregulated with lack of adequate legislation
and guidelines. Presently the only existing guidelines are non statutory ones issued
by ICMR in 2005. Today there exist no stipulations if the contract between the
commissioned parents and surrogate mother is violated.
Ministry of Health and Family Welfare, Government of India has drafted The Assisted
Reproductive Technologies (Regulation) Bill. The bill proposes that the surrogate
should be of 21 to 35 years of age and she should not have had more than five
successful live births in her life, including her own children.
The woman should be medically examined and tested for sexually transmitted and
communicable diseases which might be hazardous for the baby. She is also expected
to declare in writing that she has not been the recipient of blood or blood products
in the past 6 months.
Anyone can act as a surrogate in Indiaknown or unknown, related or unrelated.
There is a stand among experts to disallow foreign national to have children through
surrogates which stems from the concerns over the citizenship of the child.
Surrogacy essentially turns the unique biological ability of a woman's body to
reproduce into a commercial business when a monetary transaction is involved. This
is complicated further by the lack of strong legal provisions to safeguard the interest
of the surrogate mother, the resultant child or the commissioning parents in India.
Surrogacy is a complex and challenging subject plagued with several
controversies and debates over the past decades. On the one hand there is a
pain of infertility and craving parenthood whereas on the other side
commercialization of reproductive capacity and exploitation of women and
children. However it needs to be reiterated that of viewed in correct
perspective, surrogacy is a reproductive treatment which can provide many an
instance of happiness, fulfilment and satisfaction to infertile couple.

Recent Developments, issues and way ahead

Following the serious discussions central government is mulling over to pass a


regulatory mechanism in the form of act ending the controversy of surrogacy in India
but many issues are yet to be examined.
The compensation of the surrogate mother is one area where consensus has not
been reached.
Discrimination for gay and foreign nationals is also hugely protested as government
is considering barring them from availing surrogate children. It is protested by NGOs
and activists.
In earlier versions - in 2008 and 2010 - the bill relied on contract law to establish a
relationship between the commissioning parents and the clinic. In the current
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version, the bill states that a professional surrogate will be hired by a governmentrecognized ART Bank and not private fertility clinics, which is the current practice.

The need of the hour is that instead of putting a cap on who can seek to have
children through surrogacy, the rights of the surrogate mother need to be drafted in
a way that her interests are better protected.
This could be ensured by reducing the number of embryo transfers and live births a
surrogate mother can undergo and since revenue is the very reason they agree to
become surrogate mothers, the government should fix a certain amount for each
surrogate pregnancy such that the compensation from one surrogacy suffices and
the women do not have to undergo the process again.
The issues to be addressed in the regulatory bill should be compensation, informed
consent and health of the women involved.

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NATIONAL

Parliament Stalemate : An analysis

The monsoon session of the 16thLokSabha which started from 21st July is going to
end on 13th August 2015.
The legislative agenda in this session included 11 legislative bills that had to be taken
up for consideration which are currently pending in Parliament and 9 new Bills that
were proposed to be introduced and passed. Three Bills were listed for withdrawal.
The Parliament which had to discuss on important legislations like GST, Medical
Health Care bill etc suffered huge losses with repeated adjournments demanded by
the opposition.
NDTV claims that a washout of the monsoon session would waste Rs 35 crore of
taxpayer money. Times Now claimed the figure to be Rs 260 crore.

Why the present stalemate?

The government has a clear majority in the LokSabha and it lacks in RajyaSabha.
There are mainly two reasons for stalemate.
1. The government has stuck up with scandals like the Vyapam scam, Lalitgate
etc and the opposition is demanding sacking of the ministers involved.

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2. With respect to content of the bills which are proposed to be taken up for
consideration during the session like the GST bill , land acquisition
amendment bill etc.
Analysis of 15thloksabha:

During the 15th LokSabha, frequent disruptions of Parliamentary proceedings had


resulted in the LokSabha working for 61% and RajyaSabha for 66% of its scheduled
time. In comparison, the 13th and 14th LokSabhas worked for 91% and 87%,
respectively.
The 15th LokSabha passed 179 Bills of the 328 Bills during its five year tenure. This is
the least number of Bills passed by a full five year term LokSabha. In comparison, the
13th and 14th LokSabhas had passed 297 and 248 Bills, respectively.
Of the 116 Bills, other than finance and appropriation Bills, passed by the 15th
LokSabha, a significant percentage of Bills were passed without adequate debate in
the House. In the LokSabha, 36% of the total Bills passed were debated for less than
thirty minutes. Of these, 20 Bills were passed in less than five minutes.
In the RajyaSabha, 38% of the total Bills passed were debated for more than two
hours, and 7 Bills were debated for less than five minutes.
During the 15th LokSabha, Question Hour was a major casualty to disruptions.
Question Hour is the first hour of every Parliamentary sitting, devoted to questions
posed by MPs, to be orally answered by Ministers.
LokSabha lost 61% of the time scheduled for Question Hour and RajyaSabha lost
59%.
In the last five years, only 29 % of total productive time was spent on discussing the
Budget, which is an important tool in hands of parliament to make executive
financially accountable.

A bigger picture:

The main reason for such parliamentary stalemate lies in the parliament itself, its
composition i.e the MPs who make up the parliament.
In India politics has become a business. People get into politics to protect their
business establishment. While doing so they tend to forget the purpose for which
they have been elected by the people.
Criminalization of politics is a major hindrance in achieving an urbane parliamentary
behaviour.
In 15thloksabha, around 30% of MPs had criminal charges and around 14% of the
MPs had serious criminal charges on them.
The current LokSabha has 76 MPs accused of multiple serious crimes with an
average of three cases each.

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Way Forward:

Indian parliament is evolving itself over the years. Supreme Courts decision wrt
criminalization of politics is a welcome step in this regard.
Common mans perspective -What best one can do here is to elect deserving
candidates to the LokSabha who heeds and provides solution to the problems of a
common man.
Election commissions work in preventing election malpractices should be praised
and the work should be continued and strengthened further.

Connecting the dots:

Parliament over the years is losing its role as guardian of democracy. Critically
analyse.
How does the present-stale mate impact the Indian economy and general public in
particular? Your thoughts on Criminalization of Politics.
What are the instruments or provisions available in the constitution to ensure
smooth functioning of the Parliament? How effective are they?
The role of individual MPs (Members of Parliament) has diminished over the years
and as a result healthy constructive debates on policy issues are not usually
witnessed. How far can this be attributed to the anti-defection law, which was
legislated but with a different intention? (2013- GS Paper 2)

Railway safety in India: A keen look

The recent incident of twin train derailment in Madhya Pradesh has provoked people
to ask the question, are railways safe in India?
Between January 2007 and September 2011, more than 2,000 people have died in
738 railway accidents across the country.

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A statistical look into railway accidents and safety:

Derailments constitute 50% of the total rail accidents, followed by 36% accidents
at unmanned level crossings gates, 5% collisions, 4% accidents at man level
crossing gates , 2% fire accidents and 3% due to misc reasons.
Collisions which are 5% of total tally are responsible for 24% of total deaths and 26%
of total injuries.
Derailments with half of total train accidents constitutes to 4% deaths and 27%
injuries.
Unmanned level crossing gates accounted to 59% of total deaths and 39% injuries.
Fire accidents resulted in 2% deaths and 1% injuries.

Reasons for lack of railway safety:

Lack of fire detection systems: Most trains in India still lack effective systems to
detect smoke and fire. In some trains, the fire alarm systems have been installed in
air-conditioned coaches, while other compartments have been neglected. In open
compartments, it is more difficult to detect smoke.
Lack of anti-collision technologies: These are devices that automatically halt the
train if it overshoots a red signal. India, which has the worlds fourth-largest railway
network after the U.S. China and Russia, still doesnt have such safety devices.
Such technologies could have helped prevent the 32 train collisions that took place
in India since 2008, according to official figures.
Staff deficit: Speeding and skipping red signals are the main causes of concern,
human error is another common cause of accidents. The reason for this is partly that
there is a shortage of staff, meaning that workers are often overworked.
According to official figures, there were 18 train accidents last year due to faults of
drivers and other railway staff.
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Inappropriate maintenance of tracks: A significant number of accidents in India are


caused by derailments and for this derelict tracks are to be blamed.
There were 273 train derailments in India since 2008, 28 of which took place last
year, according to official figures.

A step towards railway safety:


Anil Kakodkar committee recommendations on railway safety would be appropriate at this
backdrop .

The three vital functions of rule making, operations and the regulation are all vested
in the Railway Board. There is need for an independent mechanism for safety
regulation. Creation of a statutory Railway Safety Authority with enough powers to
have a safety oversight on the operational mode of Railways would do the need.
The Research Design and Standards Organization (RDSO), the apex technical wing of
the Railways, is highly constrained. This has hampered the ability of the system to
internalize emerging technologies. Restructuring of RDSO for greater empowerment
is the need of the hour.
The adoption of an Advanced Signalling System (akin to the European Train Control
System) for the entire trunk route length of 19,000 km within 5 years.
All Level Crossings (both manned and unmanned) should be eliminated over a fixed
period of time say five years.
Also a switch over from the ICF (Integral Coach Factory) design coaches to the much
safer LHB(Linke Hofmann Busch) German design coaches.

Connecting the dots:

Enumerate the various safety concerns present in Indian railways and suggest
measures to overcome the same.
Implementation of Anil Kakodkars committee recommendations on rail safety act as
a game changer w.r.t to railway safety in India. Critically analyse.

Privatisation of Air India : A no from the government

Air India is the flag carrier airline of India owned by Air India Limited (AIL),
a Government of India enterprise. It is the third largest airline in India
(after IndiGo and Jet Airways) in domestic market share, and operates a fleet
of Airbus and Boeing aircraft serving various domestic and international airports.
It was once the largest operator in the Indian subcontinent with a market share of
over 60%. Indifferent financial performance and service, labour trouble pushed it to
fourth place in India, behind low cost carriers like IndiGo, SpiceJet, and Jet Airways.

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Between September 2007 and May 2011, Air India's domestic market share
declined from 19.2% to 14%, primarily because of stiff competition from private
Indian carriers.
At this backdrop, question of Air India privatisation has come up and is making news
for over a decade.

Why the issue now?

The demand for supplementary grants presented to the parliament on 31 st july


2015, government asks for an additional Rs 800 crore to Air India as equity
infusion. This demand will be met through additional expenditure from public
money and not by any savings of air india.
The significance of above lies, not in the amount of money, but in the political
context and the economic policy implications of the manner in which the taxpayer's
money is being spent.
The logic becomes even more questionable when one realises that the Budget for
2015-16 had already provided Rs 2,500 crore for equity infusion into the lossmaking Air India. It would appear, therefore, that so weak is Air India's financial
situation that this amount is considered inadequate, prompting the government to
raise capital infusion by Rs 800 crore.
But if we look back, the government's approach to an ailing PSU looks even more
problematic. For the last several years, the government has been infusing additional
capital into Air India - Rs 5,780 crore in 2014-15, Rs 6,000 crore each in 2012-13 and
2013-14, Rs 1,200 crore each in 2010-11 and 2011-12 and Rs 800 crore in 2009-10.

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Probable reason behind non privatisation: (Iasbabas view)

The government needs what is called as national airline to keep ferrying political
leaders in power and even government officials across the country or even abroad
on terms that are easy for them, but expensive for the nation.
Take a look at the costs the government has incurred on chartering Air India flights
for ferrying the Prime minister. Former Prime Minister Manmohan Singh undertook
73 foreign visits between 2004 and 2014, entailing a travel time of 246 days. But the
problem is that for as many as five of his last visits (17 days), the bills for chartering
the Air India aircraft are still under process and the chartering costs for the
remaining 68 foreign visits came to around Rs 700 crore. For Prime Minister
Narendra Modi, who has so far used the Air India chartered flights for 55 days during
his 13 foreign visits, no bills for as many as eight visits have been received by the
government, bills for four visits are under process and the bill for only one visit has
been computed.
Which other airline will agree to offer such easy terms for settling bills for
chartering its aircraft?

How is government trying to defend the move:

Following financial unrest in 2006-07 , Air India has undergone lot of restructuring
plans which are still in progress.
In July 2009, SBI Capital Markets was appointed to prepare a road map for the
recovery of the airline.
Air india now is a part of the global star alliance.
Following restructure in 2012, the aircraft has done well and the statistics speak for
it.
The post-tax losses suffered by the national carrier had come down from Rs 7,560
crore in 2011-12 and Rs 5,490 crore in 2012-13 to Rs 5,389 crore in 2013-14.
Its operating loss was also on the decline from Rs 5,141 crore in 2011-12 and Rs
3,807 crore in 2012-13 to Rs 2,124 crore in 2013-14.
The airline was expected to be EBIDTA (earnings before interest, depreciation,
taxes and amortisation) positive by Rs 771 crore in 2013-14 as against Rs 192 crore
in 2012-13.
After joining Star Alliance, Air Indias passenger revenue is expected to rise by 3-5
per cent as a result of cross-feed to and from the partner airlines of this global
airlines grouping, this move would benefit the passengers as well.

Is the government defence justified?

Since the financial restructuring has been done in 2012 and is still going on , we have
to wait for another couple more years , to look into the statistics and comment on
whether the government defence for Air India is justified or not.
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Connecting the dots:


1. Should Air India be privatised ? Critically analyse.
2. Comment on the feasibility of privatisation of national air carrier Air India.

Sugar industry of india under turmoil:


India is the worlds largest producer of sugarcane and second largest producer of sugar after
Cuba. This industry involves a total capital investment of Rs. 1,250 crore and provides
employment to 2.86 lakh workers. In addition, 2.50 crore sugarcane growers also get benefit
from this industry.
Characteristics of sugar industry in india:
1. Sugar industry in India is controlled.

The price of sugarcane which the farmers receive from the mills is fixed by the
government in form of FRP and SAP.
FRP-Fair Remunerative Price fixed by union government and is generally low.
SAP-State Administered Price decided upon by state government and is generally
high (the mill owners are compelled to agree with SAP over FRP).
The mill owners must give 10% of their production to the union government which
they use to supply to the state governments for their state Public Distribution
Systems (PDSs).
The market is also heavily government controlled. The export and import of sugar is
decided by the government depending upon the domestic demand.

2. Low yield of sugarcane:

Although India has the largest area under sugarcane cultivation, the yield per hectare
is extremely low as compared to some of the major sugarcane producing countries of
the world. For example, Indias yield is only 64.5 tonnes/hectare as compared to 90
tonnes in Java and 121 tonnes in Hawaii.

3. Short crushing season:

Manufacturing of sugar is a seasonal phenomena with a short crushing season


varying normally from 4 to 7 months in a year. The mills and its workers remain idle
during the remaining period of the year, thus creating financial problems for the
industry as a whole.

4. Fluctuating production trends:

Sugarcane has to compete with several other food and cash crops like cotton, oil
seeds, rice, etc. Consequently, the land available to sugarcane cultivation is not the

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same and the total production of sugarcane fluctuates. This affects the supply of
sugarcane to the mills and the production of sugar also varies from year to year.
5. Regional imbalances in distribution:

Over half of sugar mills are located in Maharashtra and Uttar Pradesh and about 60
per cent of the production comes from these two states. On the other hand, there
are several states in the north-east, Jammu and Kashmir and Orissa where there is
no appreciable growth of this industry.

6. Low per capita consumption:

The per capita annual consumption of sugar in India is only 16.3 kg as against 48.8 kg
in the USA., 53.6 kg in U.K., 57.1 kg in Australia and 78.2 kg in Cuba and the world
average of about 21,1 kg. This result in low market demand and creates problems of
sale of sugar.

The turmoil :

The industry is facing liquidity crunch with unpaid cane prices arrears built up to
around Rs 14,000 crores to farmers.
Falling sugarcane prices due to increased supply in the market.
Due to faulty pricing of FRP and SAP, farmers tend to produce more and thereby a
decrease in sugarcane prices.
Mill owners are not able to export excess sugar do to control from the union
government.

Governments effort to solve the disturbance:

Looking into Rangarajan committee report on decontrol of sugar industry. The


report talks about two-phased cane price payment system which involves paying
the FRP to the farmers at the time of the cane delivery and adjusting it later against
the final payment amounting to 70 per cent of the total revenue generated from
the sale of sugar and its by-products. Such a pricing formula would strike a balance
between the prices of sugar and sugarcane, on the one hand, and between the
demand and supply of sugar on the other.
Export of surplus sugar to address domestic over-supply and price decrease.
Increase in mixing ethanol with petrol from the present two per cent to five per
cent to begin with and 10 per cent subsequently.
Strengthening co-operative mills w.r.t their structuring and democratic functioning.

Connecting the dots:

Write a note on decontrol of sugar industry in India with special reference to


Rangarajan committee report.
Enumerate the problems faced by sugar industry in India.
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Delineate the sugarcane growing regions of India with special focus on factors that
contribute to the growth.

Higher education sector in India : An analysis

India's higher education system is the third largest in the world, next to the United
States and China and it is likely to surpass the US in the next five years and China in
the next 15 years to be the largest system of higher education in the world.
Higher education in India has recorded impressive growth since Independence. As
of 2011, India has 42 central universities, 275 state universities, 130 deemed
universities, 90 private universities, 5 institutions established and functioning
under the State Act, and 33 Institutes of National Importance.
University Grants Commission (UGC), by designing programmes and implementing
various schemes through academic, administrative and financial support, has
contributed in the growth and development of Indian higher education.

Critical analysis of higher education sector in India:

The gross enrolment into higher education has remained at about 20% over the
years. We have only 722 universities, as against the National Knowledge Commission
recommendation of 1,500.
Another challenge that confronts India is in the disparities in access to education,
especially in terms of economic class, gender, caste and ethnic and religious
belonging.
In 2008, as against an all-India enrolment rate of 17 per cent, the break-up for
these categories was 7 per cent for Scheduled Tribes (ST), 11 per cent for
Scheduled Castes (SC), 28 per cent for Other Backward Classes (OBC) and 47 per
cent for higher castes. In addition, it was 9 per cent for Muslims, 18 per cent for
Hindus and 30 per cent for Christians.
Between 1996 and 2008, private institutions expanded every year at the rate of 10
per cent. The corresponding decline in government and private-aided institutions, by

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1.65 per cent yearly, resulted in increase in the share of students in the private
institutions.
The quality of higher education is an equally serious problem in higher education
sector in India.
According to Industry reports supported by NASSCOM, only 25% of technical
graduates and about 15% of other graduates are considered employable by IT/ITES
industry due to lack of basic skills required for the job.
Apart from these, there is the issue of ensuring the access of Indian education to
global frontiers. In this, a popular view is to allow global universities to set up
campuses in India.
Enabling an education that is relevant to the economy and society is another
challenge.
Another issue relates to reform in the University Grants Commission(UGC) w.r.t its
structure and functioning.

Yashpal committee recommendations on reforms in higher education sector:

All universities must be teaching cum research universities. All research bodies
must connect with universities in their vicinity and create teaching opportunities for
their researchers.
There should be no discrimination between Central and State funded universities.
All benefits extended to Central Universities must also be extended by State
Governments to the state universities and the Centre must incentivise the States to
do so.
All private universities must submit to a national accreditation system. Private
degree-granting universities must not be confined to select areas like technology,
medicine, management, finance etc. They must be required to be comprehensive
universities covering the arts and social and natural sciences too.
There must be tight regulation of private universities in terms of auditing of
accounts, payment of minimum salaries to teachers, certain percentage of seats
reserved for meritorious students who are to be provided scholarships etc.
Granting of Deemed University status to be put on hold. All existing Deemed
Universities to be given three years to shape up (to have strong research
programmes, and become a comprehensive university as defined in this report)
failing which their Deemed University status is to be withdrawn.
National tests like the GRE must be organised round the year to get admissions into
universities. Students from all over India must be allowed to take the tests as many
times as they like and their best score can be sent to the universities for admission.
Setting up National Commission for Higher Education and Research (NCHER) under
which the various functions of the existing regulatory agencies would be subsumed
and it becomes an apex regulating agency of the higher education sector.

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Connecting the dots:

Examine the issues associated with higher education sector in India ? Suggest
measures to overcome the same.
Implementation of Yashpal committee report acts as a game changer in higher
education sector of India. Critically analyse.
Enrolment ratio in higher education is only 20% in India .At this backdrop critically
analyse preparedness of India in reaping Demographic Dividend.

Real Estate Bill: panel backs Govt on locking up only 50% of buyer funds
Background:

The Bill Real Estate (Regulation and Development) Bill, 2013 was introduced in the
Rajya Sabha in August 2013, and was referred to the parliamentary standing
committee on urban development, which gave its recommendations.
In April 2015, the government had cleared amendments to the real estate Bill,
paving the way for the much-awaited regulator in the residential real estate
industry. Commercial real estate sector was also brought under the ambit of the Bill.
The real estate sector had been devoid of any kind of regulation until now. The Bill
assumes importance in the wake of rising consumer complaints against developers
for delaying projects by over 4-5 years.

Aim:

The Bill aims to establish the Real estate regulatory authority (RERA) for regulation
and promotion of the real estate sector, and to set up an adjudicating mechanism for
speedy redressal of disputes. It also aims to establish the appellate tribunal to hear
appeals against the decisions of the RERA.

Present Status:
After the revised Bill was tabled in the Rajya Sabha in May, 2015 it was referred to a select
committee. The Select Committee of the Rajya Sabha has accepted almost all amendments
made by the Narendra Modi Cabinet to the Real Estate (Regulation and Development) Bill,
which was originally drafted by the UPA government.
The amendments are largely the industrys demands and pro-buyer measures. They will also
help the government realise its vision of Housing for all by 2022.
Following are the recommendations of the Select Committee:

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1. The select committee has suggested that all real estate projects over 500 sq. m or 8
flats be brought under the purview of the Bill. Currently, the Bill has proposed
projects covering 1,000 sq. m or more than 12 flats be registered with the regulatory
authority.
2. The Bill, drafted by the UPA, had mandated that 70% of the amount collected from
buyers needed to be kept in a separate account, and to be used only for construction
of a particular project, while the rest can be spent on other projects. The panel,
however, has stuck to the NDA governments draft Bill, which has brought this down
to 50%.
Reason- in some cases the land accounts for nearly 80 % of the cost of the
project, so keeping 50% or more in a separate account will unnecessarily block
funds. Also, there is a vast difference in the per square metre selling cost and
construction cost of projects in some areas.
Safeguard Mechanisms There is a suggestion for further flexibility in the clause by allowing the promoter
to withdraw funds from the separate account to cover the cost of construction in
proportion to the percentage of completion of the project.
It also suggested that the amounts from the separate account shall only be
withdrawn by the promoter after it is certified by an engineer, an architect and a
chartered accountant that the withdrawal is in proportion to the percentage of
completion.
3. It has retained all the penal provisions for defaulters in the Bill, including fine for the
first offence and three-year imprisonment for subsequent violations.
4. Promoter should bear all the liabilities till the flat is transferred to the allottees
name.
5. Promoters should get their accounts audited within 6 months after the close of
every financial year by a practicing chartered accountant.
6. Developers, both in residential and commercial sectors, will be required to register
their projects with the regulatory authorities to be set up, and they will have to
mandatorily disclose all information regarding the promoters, project, layout plan,
schedule of development works, land status, status of statutory approvals, amongst
others.
Redefinition of the Carpet Area:
It has also redefined carpet area the net usable floor area of an apartment, excluding the
area covered by the external walls and that under-service shafts, exclusive balcony or
verandah and open terrace areas, although it would include the area covered by the internal
partition walls of the apartment.

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Recommendations from the Opposition parties in the Parliament:


1. The Opposition has argued that the clause that the Bill is applicable to projects on a
minimum of 1,000 sq m of land will help large developers.
2. It wanted constructions in smaller areas brought under the ambit of the Bill as well.
3. It also demanded addition of an anti-discrimination clause in the Bill to ensure
buyers are treated equally and not kept from purchasing property on the basis of
religion, caste, gender or eating habits.
Key Issues and Analysis:

Parliaments jurisdiction to make laws related to real estate as land is in the State
List of the Constitution can be debatable. However, it may be argued that the
primary aim of this Bill is to regulate contracts and transfer of property, both of
which are in the Concurrent List.
Some states have enacted laws to regulate real estate projects. The Bill differs from
these state laws on several grounds. It will override the provisions of these state
laws in case of any inconsistencies.
The Bill mandates that 70% of the amount collected from buyers of a project be used
only for construction of that project. In certain cases, the cost of construction could
be less than 70% and the cost of land more than 30% of the total amount collected.
This implies that part of the funds collected could remain unutilized, necessitating
some financing from other sources. This could raise the project cost.
The Standing Committee examining the Bill has made several recommendations.
These include: (a) the Bill should also regulate commercial real estate, (b) smaller
projects should also be covered, and (c) all real estate agents must be required to
register.
The real estate sector has some other issues such as a lengthy process for project
approvals, lack of clear land titles, and prevalence of black money. Some of these
fall under the State List.

A basic right is in danger: A dangerous convergence of DNA- profiling and Aadhaar

Indias rush in creating a DNA-profiling system and the reach of Aadhaar pose a
danger to individual privacy.
Two distinct processes based on questionable premises and exaggerated benefits
are converging, threatening individual liberties in India. This convergence can
undermine existing constitutional interpretation of the right to privacy.

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UID project (Aadhaar):


The UID project (Aadhaar), is a simple
way to authenticate an individuals
identity and prevent fraud so that
benefits reach the right person. For the
poor, who lack other forms of
identification, the system is meant to
eliminate hurdles and reduce the
likelihood of corruption.
DNA-profiling project:
The DNA project can have positive
outcomes, such as identifying missing
persons or victims of disasters. DNA-based
evidence can also establish the innocence
of a defendant in a criminal case aims to
assist in solving crimes, identify victims
after a natural disaster, and trace missing
persons, but the database will include
volunteers and any other index that regulators wish to add.
Proper identification can protect the poor from getting cheated; intermediaries will
find it harder to inflate the number of beneficiaries and pocket the difference.
However, both the projects have limited scrutiny of their impact on individual
privacy.

Issues:

A nationwide database that links individuals with their DNA, connecting personal
data with biometric information, gives enormous powers to the state, and there are
few credible safeguards.
Democratic countries with superior technologies and well-established search-andseizure authority have set rigorous standards to protect individual privacy. Their
bureaucracies have learned the hard way that over-reliance on data can be
counterproductive, and there have been repeated failures of protecting data.
Also, Edward Snowdens revelations about the U.S. show, even governments that
have strong laws respecting individual rights ignore restraints on their powers.
Nobody likes being accused of being soft on terrorism, particularly in times of strife.
The government may argue that, project Aadhaar is used only to assign random
numbers to individuals. But once that database is accessible to other agencies
government and private, they can link or match the data with other databases and
get a precise profile of individuals beyond what is strictly necessary i.e., what are
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their preferences and tastes; to which communities they belong; and with whom
they interact.
A rogue government can also impose mass surveillance on a scale unimagined,
enabling the state to track any individual. Databases can be linked easily and there
are no safeguards to prevent misuse. Public and private agencies have demanded
Aadhaar numbers from Indians performing routine transactions or seeking access to
government services, without explaining why the numbers are needed.
The DNA-mapping project also categorizes people by caste. What purpose does that
serve? When such data is overlaid with data from Aadhaar, which has peoples
addresses, it makes the job of identifying specific groups simpler. Given Indias
record of communal violence, it is not far-fetched to think that anthropologists,
demographers or market researchers are not the only ones who would want access
to such data.

Constitutional Status:

In a Supreme Court case where petitioners had challenged the Aadhaar card being
made compulsory, attorney general Mukul Rohatgi has argued that privacy is not a
fundamental right in India. This has brought to the fore the constitutional status of
Right to Privacy.
Regarding this issue, the Supreme Court of India, in its previous cases (M.P. Sharma
case and Kharak Singh case) had made references to the American Fourth
Amendment. The American Fourth Amendment pertains to the right of the people
to be secure in their persons, houses, papers, and effects, against unreasonable
searches and seizures. It is concerned only with one aspect of right to privacy and
not to privacy as a whole.
Though right of privacy is not a guaranteed right under our Constitution, the two
cases do not rule out a broad constitutional right to privacy.
It is almost impossible to consider the right to privacy in its entirety in a single case
since it is a bundle of rights including everything from safeguards against
unauthorised collection of personal data to restrictions on intrusion into private
spaces. The cases that have emerged from the Supreme Court over the years make
this apparent.
Different elements of privacy rights have been read into our right to life (Article 21)
and our right to free expression (Article 19). We have a right against untrammelled
interception of our communication, and against doctors divulging personal medical
information. Long before the Constitution or the Constituent Assembly came into
being, the right to privacy of women in purdah was acknowledged by common law.
Ignoring the right to privacy will not only affect Indias global image it will also
complicate international commercial relations. Who would send their information or
employees to a country that disregards its residents right to privacy?
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Connecting the dots:

Does the DNA and UID project strengthen the State and intrude the privacy of an
individual? Give your arguments.
Is right to privacy a Fundamental Right? Will this impact the cultural norms of our
country?
Is there any safeguard mechanism available to protect the right to privacy? How can
the data collected be prevented from misuse?

NOTE: For more information on DNA profiling Bill and UID (Aadhaar) refer IASbabas
previous news analysis/current affairs.

Is there an Elitist bias in Public Policy making ?

Recall Lal Bahadur Shastris famous slogan, Jai Jawan, Jai Kisan, which was later
extended to include Jai Vigyan by Atal Bihari Vajpayee.
Prime Minister Narendra Modi may put his own stamp with another twist, but the
message is not going to change too much.
The real question is: If we are really thankful to them, how far have we made our
jawans and kisans really happy for the job they have accomplished?

What is the status of our Kisans?

Today, Indias granaries are overflowing. Wheat and rice stocks with the government
in June were at 60 million metric tonnes (mmt) about 50 per cent higher than
even the augmented buffer stock norms.
Poor storage conditions lead to rapid deterioration in quality.
The sugar industry, and therefore sugarcane farmers, is in deep crisis.

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Cotton, corn, soya and so on you name a commodity and you find a glut, with
profit margins deeply squeezed. Is this how we salute our farmers for giving food
security to the country?

What is the root of the problem?

It is in the mindset.
Elitist biases in public policy mean booming stock markets, a dazzling manufacturing
sector, rapid strides in Urbanisation, with world-class infrastructure of bullet trains
and the like, are prioritized.
But the reality is that the masses in rural areas are finding it hard to make basic ends
meet.

What is the future of the Indian economy?

The future of the Indian economy lies in greater industrialisation, urbanisation,


service industry growth, etc, provided these emerging sectors are globally
competitive and able to absorb an increasing share of the labour force.
But currently, almost half the workforce is engaged in agriculture, and unless it is
schooled and skilled, it cannot move to high productivity jobs in urban areas.
And this process is going to take at least 15-20 years, or even longer, when the
proportion of the workforce engaged in agriculture will come down to, say, less than
25 per cent of overall labour.

IAS BABAs View

It is not too late to learn. It needs to focus on irrigation and water management, agriinsurance, national agri-markets, and rural infrastructure of roads and power
supplies.
This is a huge agenda for the next five years or so, before it can start to sustain itself.
Till then, one has to remain focused and persevere. Agriculture needs a strong
champion in the government to keep it at the centre of public policy, lest the elitist
biases hijack public policy for the already well-to-do sections of society.

Connecting the Dots:

Why they should focus on agriculture when its contribution to GDP has decreased to
less than 15 per cent (at factor cost)?
Why are crop insurance premiums so high in India?

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Swaraj in Academy: Is loss of Autonomy trapping Higher education?

Nearly a decade ago, in 2006, the newly constituted National Knowledge


Commission (NKC) had drawn attention to a quiet crisis in higher education. That
was an understatement.
The nations higher education sector was already broken by a long period of
sustained and extreme political interference by state and national governments.
It is not an exaggeration to use the word broken to describe the state of higher
education.
Worse still, with the exception of a handful of institutions (a few Central universities,
the IITs, IIMs and a small number of other institutions), most colleges and
universities are mediocre.

Is the damage of Higher education beyond repair?

Since the National Knowledge Commission (NKC) called attention to a quiet crisis
nearly a decade ago, we have seen a mix of feeble, unplanned and uncoordinated,
incoherent, harmful, and occasionally even well-intentioned policies being
considered and/ or implemented all evidently designed to improve higher
education.
Other than improvements in access to education, progress on other fronts, notably
the quality of education, has been negligible.
The government must step aside and not bully academic institutions into
submission. Otherwise, all that it will achieve is further crushing our already broken
higher education sector.

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What are the Reasons for the current state of Higher Education?

The reasons for this broken state are widely known. All through the 1980s and the
1990s, which merit being labelled as the lost decades for higher education,
successive state and national governments completely marginalised the sector.
Low spending combined with extreme forms of politicisation, widespread nepotism
and corruption as well as the downgrading of the academic profession destroyed the
sector.
Since 2006, some things have changed for the better but the damage inflicted during
the lost decades seems beyond repair.

What is Hindering the growth of Indian Universities?

Consider the following irony. GIAN has been set up for our academics and students
to learn best practices from US-based faculty.
However, our government officials have as much to learn, from the Americans as
well as from others, about how to run public universities. In the US, as in most
countries around the world that have robust higher education sectors, public
institutions are not government controlled.
Ministers do not have the power to approve or reject the appointments of vice
chancellors and directors.
Our universities will not realize their full potential unless the government stops
meddling in matters it has no business messing with.

IAS BABAs View

Our higher education community has generally failed to govern itself credibly vis-vis the production of knowledge.
The bottom line is Swaraj by all means, but it is what do you do with that that
counts.
However, so much of our national resources are being poured into this segment,
when it has valuable alternative uses, that we would be naive to ignore the outcome.

Connecting the Dots:

How committed are the teachers in the mushrooming public universities to


equipping our youth with the best in the world, a task involving high investment of
time and effort?
Do our Think Tanks aspire to build liberal and democratic spaces committed to
producing innovative ideas for India?

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Smart City: Smart Living, People, Mobility Economy, Environment

Smart Cities are inevitable in the same way that Smart Grids are inevitable. But we
need something new, something better, and something that works.
Private participation can ease the governments burden, particularly in the case of
small-scale infrastructure projects.
Small-scale infrastructure projects developed on public-private partnership (PPP) can
expedite development of smart cities.

What is a SMART City?

A city equipped with basic infrastructure to give a decent quality of life, a clean and
sustainable environment through application of some smart solutions.
Assured water and electricity supply, sanitation and solid waste management,
efficient urban mobility and public transport, robust IT connectivity, e-governance
and citizen participation, safety and security of citizens.
Public information, grievance redressal, electronic service delivery, citizens
engagement, waste to energy & fuel, waste to compost, 100% treatment of waste
water, smart meters & management, monitoring water quality, renewable source of
energy, efficient energy and green building, smart parking, intelligent traffic
management system.

What is the framework of System of SMART cities in India?

First step is identification of the 100 cities and for this a city challenge competition to
be conducted by Bloomberg Philanthropies is envisaged.
The current plan looks to select 20 cities this year followed by 40 each in the next
two years.

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Smart Cities Council India has been formed which is part of the US-based Smart
Cities Council, which is a consortium of smart city practitioners and experts, with a
100-plus member and advisor organizations operating in over 140 countries.
A Special Purpose Vehicle will be created for each city to implement Smart City
action plan. The SPV will be signed with the urban local body, state government and
the Centre for implementation of the project.

How will this work?

After government announces the guidelines, states will be asked to nominate names
of cities for a City Challenge Competition and the chosen ones will get Central fund
of Rs 100 crore each year for 5 years.

What are the Considerations to build a SMART city?


Some of the considerations for building a smart city are:
Timely and strategic infrastructure upgrades
Connectivity evolution
Market challenges
Optimising Smart City Communications
Impact of Open Data, Big Data
Robust and Scalable Architecture
What is the Core Idea behind the SMART system?
The main aim of the government through the Smart Cities Mission is to improve the
quality of life of citizens.
This implies providing better employment and investment opportunities and making
the city more competitive by addressing the core issue of infrastructure gaps.
Smaller infrastructure projects can be developed with negligible public investment
through PPP with quick turnaround time, going a long way in making cities better
and safer.
How PPP is important in building SMART India?
We cannot build world-class cities with public funds alone.
PPPs facilitate economic growth on a scale and timeline that would be impossible
without private capital.
It is not always necessary to develop big-ticket urban infrastructure projects that
make smart cities.
There are several small-scale urban infrastructure projects that can innovatively be
implemented through PPP.

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They are economically viable and do not require any public investment. They do not
have direct revenue streams but generate funds through improving efficiency and
savings from system improvements.

IAS BABAs View


Ultimately, for a layperson, smart is just the means through which he can get a
good city, one that is clean, safe, and offers opportunities.
By these measures, the West can boast of few cities that can already be called
smart for instance, where public transport is not just ubiquitous but your
smartphone can even track the buses.
But Smart Cities must be more than this. They must offer transformation like the
Internet, leading to empowerment.
Connecting the Dots:
If the benefits of a smart system are apparent why dont we have more such
systems?
Explain the limitations of Information and Communications Technology (ICT) in smart
cities keeping rural India in mind.
Write a note on
1. AMRUT
2. Pradhan MantriAwasYojana

Indigenous medicine : Natural way to Holistic Health

In the recent past, we have also seen a


resurgence of interest in other forms of Indian
system of medicine ayurveda, yoga and
naturopathy, unani, siddha and homoeopathy
(AYUSH) due to their immense utility in
tackling lifestyle disorders, not only in India but
all across the globe.
Although India has made significant progress in
the last six decades in providing healthcare, we
are witnessing a significant change in the
disease pattern in the country, with an
increasing number of people suffering from
communicable and non-communicable diseases.

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What is Indias Rank in the world health Aspects?

India ranks somewhere at the bottom of 193 countries on various critical health
parameters such as number of doctors, nurses, and beds.
We need to double the number of our doctors, from 0.7 to 1.5 million, for which we
need at least 600 new medical colleges.
We also need to triple our nurses count and quadruple the number of paramedics.
This will entail considerable investment of our scarce financial resources.
Further, this demands increased focus on preventive and promotive care.

How has the Mission AYUSH Evolved?

The Department of Ayurveda, Yoga and Naturopathy, Unani, Siddha and


Homoeopathy, abbreviated as AYUSH, is a governmental body in India purposed
with developing education and research in ayurveda (Indian traditional medicine),
yoga, naturopathy, unani, siddha, and homoeopathy, and other alternative medicine
systems.
Created in March 1995 as the Department of Indian Systems of Medicine and
Homoeopathy (ISM&H), AYUSH received its current name in March 2003.
It operates under the Ministry of Health and Family Welfare.
GOI is promoting AYUSH and starting integrated courses for Indian system of
medicines and modern science.The Department has been elevated to an
independent Ministry w.e.f. 09.11.2014

What are the worrying questions that are swirling around the alternative schools of
medicine?

NOT ALLS well on the AYUSH front.


Despite the governments push to popularise AYUSH was made a full-fledged
ministry in November last year, peoples perceptions about the traditional forms of
medicine are not that favourable, a trend underlined by the latest National Sample
Survey Office (NSSO) data.
There is no credible evidence yet of the effectiveness of either homeopathic or
Ayurvedic medicines and treatments.

How can AYUSH be mainstreamed into Traditional Health Practices?

With a new health policy on the anvil, we have an opportunity to mainstream the
Indian system of medicine and integrate the available AYUSH infrastructure into the
healthcare system.
The AYUSH sector has an estimated annual turnover of around Rs. 120 billion and
more than 8,000 licensed manufacturing units involved in the country.

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India, with a wealth of 6,600 medicinal plants, is the second largest exporter of
AYUSH and herbal products in the world, estimated at Rs. 22.7 billion in 2013-14.
And yet, according to the recent NSSO survey, 90 per cent of the population, both
rural and urban, prefers allopathy over AYUSH.

Is India one of the top destinations for alternative treatment?

According to the FICCI-KPMG report, the inflow of medical tourists into India is likely
to cross 3.2 million soon, generating a market that may cross $4 billion in 2015.
Medical tourism in India started with AYUSH.
People from all across the world come to India for health-restorative cum alternative
treatments through a combination of ayurveda, yoga, acupuncture, herbal massages,
nature therapies, and some ancient Indian healthcare methods.
The time has come when all the stakeholders need to pool in their resources and
move towards harnessing the vast potential of AYUSH.
The AYUSH industry looks forward to a regulatory regime with better clarity and a
greater push from the government.

Connecting the Dots:

Why has India never conducted any systematic review of any of the systems of
medicine under AYUSH?
Write a note on Indias pluralistic health system.
Write a note on National Health Policy 2015

Government finally paves way for Land Acquisition Bill

Finally, the Government has agreed to drop key amendments, including those doing
away with the so-called consent clause and social impact assessment in the
controversial 2015 land acquisition bill, designed to address impediments to
expanding manufacturing capacity in the country.
This had disrupted most of the budget session of Parliament and eventually forced
the government to refer the bill to a parliamentary committee.
The joint committee of Parliament set up to study the controversial bill, moved a
resolution to withdraw six controversial amendments that had been opposed
vehemently by a united opposition led by the Congress.
The Land acquisition Act passed by Parliament in 2013, had replaced an 1894 land
acquisition act that was seen as anti- farmer and anti-industry at the same time.

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Controversial amendments restored:

The consent clause in the 2013 law mandated that those acquiring land get the
assent of 70% farmers for public-private partnerships (PPP) and 80% for private
projects. This was removed by the NDA government to accommodate concerns of
industry that the process of acquisition would be drawn out. It will now be
reinstated.
Another key clause that has been reinstated is on social impact assessment. The
industry lobby had argued that this would delay the process of acquisition.
Another amendment that sought to dilute stringent provisions that sought to punish
officials for any malpractices during acquisition of land.
SIX AMENDMENTS
RESTORED
1.
2.
3.
4.

Consent Clause
Social Impact Assessment
The term private company used in the 2013 law
Any malpractice related to acquisition attributed to
officials to be punishable under the Criminal Procedure
Code

REMOVED
5. Land acquisition on either side of industrial corridors
6. New categories named in the 2015 Bill:
Projects vital to national security or defence
Rural infrastructure, including electrification
Affordable housing and housing for the poor
Industrial corridors
Infrastructure projects, including projects under
PPP

Peace accord signed between Centre and Naga insurgent outfit.

The government has signed a peace accord with the Nationalist Socialist Council of
Nagaland Isak-Muivah(NSCN-IM), one of the largest insurgent outfits, which had
been demanding a unified Naga identity in the form of Greater Nagalim State for
over six decades.
The move is expected to bring peace to the region driven by long time insurgencies
and at the centre of Prime Minister NarendraModis plans for sub-regional
cooperation with Bangladesh, Bhutan and Nepal on the one hand and connecting
northeast India with the key economies of Southeast Asia on the other.
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It is a major development. One does not know the details of the agreement .The pact
will allow the principal Naga rebel group to come into the political mainstream.

A struggle for identity by the Nagas: Timeline

1826: Annexation of Assam by British.


1881: Naga hill too became a part ofBritish
India.
1918:Naga club was formedto resist the
annexation and even told Simon
commission in 1929 to leave us alone to
determine for ourselves as in ancient
times.
1946: Formation of Naga Nationalist
Council (NNC) which resolved to establish
a sovereign Naga state and conducted a
referendum in 1951, in which 99 per
cent supported an independent
Nagaland .
1952: Formation of Naga Federal
Government and Naga Federal Army
which involved in violent clashes.
1958: Enactment of Armed Forces(special
powers) Act by the centre to counter
insurgency.
1975: Shilling accord between centre and NNC to give up armed conflict by nagas.
1980: ThuingalengMuivah rejected the accord and formed Nationalist Social
Council of Nagaland (NSCN).
1988: Split in NSCN into NSCN(IM) and NSCN-K.
1990s: NSCN(IM) becomes the largest insurgent outfit in Nagaland demanding
Greater Nagalim.

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Background:

Nagas: The Naga people are a conglomeration of several tribes inhabiting the
North Eastern part of India and north-western Burma. As of 2012, the state of
Nagaland state officially recognises 17 Naga tribes. Prominent Naga tribes include
Poumai, Sumi, Angami, Ao, Chakhesang, Chang, Khiamniungan, Konyak, Liangmai,
Lotha, Pochury, Rongmei,Zeme, Mao.

Greater Nagalim: A region carved out by integrating all Naga-inhabited


contiguous areas under one administrative umbrella .It includes several districts
of Assam, Arunachal and Manipur, as also a large tract of Myanmar. The map of
Greater Nagalim has about 1,20,000sq km, while the state of Nagaland consists
of 16,527 sq km .

Armed Forces(Special powers) Act:An act of the Parliament of India that grants special
powers to the Indian Armed Forces in what the act terms "disturbed areas".

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About NCSN-Khaplang (NSCN-K) :

The NSCN-Khaplang, or NSCN-K, another faction which had born out of a split of the
NSCN in 1988. The Khaplang faction had entered into a separate ceasefire with the
Indian government in 1998 that it had called off in 2012.
Khaplang faction triggered when it got to know the fact that the NSCN-IM was close
to clinching a pact with New Delhi.
NSCN-K was responsible for the ambush in Manipur in June, 2015 that killed 18
Indian soldiers and is not yet brought to the negotiating table. The group is based in
Myanmar.
The Shillong Accord (Meghalaya) was the basis on which the NSCN was formed by
Isak Chishi Swu, Th. Muivah and S.S. Khaplang, among others.

What was the premise of Shillong Accord?


The Shillong Accord of 1975 was an agreement signed between the Government of
and Nagaland's underground government (or Naga Federal government), to accept supremacy of Constitution of India without condition
surrender their arms and renounce their demand for the secession of
Nagaland from India
representatives of the underground organisations should have reasonable
time to formulate other issues for discussion for final settlement.
Criticism of the Shillong Accord:

Clause 3 that stated "reasonable time for the underground representatives to


formulate other issues for discussion for the final settlement," still remained
unimplemented - as most of the Naga people and the Naga National Council(NNC)
leaders abroad didn't agree to endorse the agreement. They even criticized saying
that the agreement was signed by representatives of the Naga underground, rather
than the organizations like NNC or the Federal Government of Nagaland(FGN).
Many Nagas, who were not reconciled being part of Indian union of states,
condemned the agreement that ultimately created factionalism among the rebels.

Way forward:

In the short run, we could see an upscaling of the violence with the NSCN-K taking
the space vacated by the IsakMuivah(IM) group. It would have been better if both
were brought to the negotiating table together.
To end Peace in the region is vital for many key projects that PM has in mind like the
Bangladesh, Bhutan, Nepal and India road connectivity project as well as one that
will link India to Southeast Asia through Myanmar. Without peace in this region,
these would just be a pipe dream.

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Connecting the dots:

Historic Naga peace accord 2015 is like new wine in old bottle. Comment
Countering insurgency problems in Nagaland is only half done with the inking of
peace accord with NSCN(IM).Critically analyse
Naxalism is the biggest treat to internal security of India. At this backdrop how
naxalism is similar to/different from insurgency? Suggest measures taken by
Government of India to tackle the problems of insurgency in North East.

Refugees as citizens

None can object to the Union governments move to grant citizenship to


undocumented migrants who have come to India fleeing religious persecution in
Pakistan and Bangladesh.
Not just Hindus but also Buddhists, Christians, Zoroastrians, Sikhs and Jains are
eligible for citizenship under the proposed amendment to the Citizenship Act.
The government is planning to amend the Citizenship Act, 1955 to grant citizenship
to Hindus from Pakistan, Afghanistan and Bangladesh seeking asylum in India.

What is the Citizenship Act, 1955?

The conferment of a person, as a citizen of India, is governed by Articles 5 to 11 (Part


II) of Indian Constitution.
The legislation related to this matter is the Citizenship Act 1955, which has been
amended by the Citizenship (Amendment) Act 1986, the Citizenship (Amendment)
Act 1992, the Citizenship (Amendment) Act 2003, and the Citizenship (Amendment)
Act, 2005.
Article 9 of Indian Constitution says that a person who voluntarily acquires
citizenship of any other country is no longer an Indian citizen. Also, according to The
Passports Act, a person has to surrender his Indian passport; it is a punishable
offense under the act if he fails to surrender the passport.

What are the proposed Plans under Citizenship Act?

India plans to amend the Citizenship Act, 1955, to grant citizenship to


undocumented migrants who fled religious persecution in Pakistan and Bangladesh.
It said the migrants include not just Hindus but also Buddhists, Christians,
Zoroastrians, Sikhs and Jains.
There was no mention of Ahmedis in the published list or of Muslim sects facing the
wrath of religious bigotry in the concerned countries.
The cut-off date proposed for victims of religious persecution from Pakistan and
Bangladesh who can apply for citizenship is December 31, 2014. Citizenship by
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registration (a minimum stay of seven years) and naturalisation (a minimum of 12


years) will be the two routes.
Is the idea of Infiltration of illegal immigrants legitimate?

Estimates vary, but they all put the numbers of these infiltrators above two crore (20
million). Assam and West Bengal bear the major brunt of these infiltrators.
They affect the economy of these states and also the livelihood of the ordinary and
poor people, thus causing major resentment and leading to severe unrest, of the
kind being witnessed in the Bodo areas of Assam of late.
However, there is a small section of these migrants who cross over into India not for
any economic reasons but due to extreme religious persecution in Bangladesh.
Globally, a distinction is made between the economic infiltrators, namely those who
sneak into another country for economic reasons like jobs, livelihood etc without
proper documents, and those who come seeking asylum.
In the light of this global scenario on infiltrations for economic gain what our present
Government said in Assam and West Bengal recently was perfectly legitimate.

How does UNHCR (United Nations High Commissioner for Refugees) view the situation of
refugees, asylum-seekers, stateless persons and the displaced in India?

India with its history, culture, traditions, is today an example of generosity in the way
it has opened its borders to all people who have come looking for safety and
sanctuary.
There are Tibetans, Afghans, Myanmarese in India and it has maintained an open
door policy for all.
India has a generous approach in relationship to all people and a proof of that is the
granting of long term visas and work permits to refugees. UNHCR consider India a
more reliable partner in the world to guarantee that people who need help will find
a place.
And more importantly at a time when there are so many closed borders in the world,
and many people have been refused protection, India has been generous.

What is the Refugee Scene in India?

The most significant thing which deserves to be taken note of is that, there has not
been a single occasion of any refugee originating from the Indian soil except the
transboundary movement of the people during the partition of the country in 1947.
On the other hand, it has invariably been a receiving country and in the process,
enlarging its multi-cultural and multi-ethnic fabric.
In keeping with its secular policies, India has been the home to refugees belonging to
all religions and sects.

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It is relevant to point out that since its independence India has received refugees not
only from some of its neighboring countries but distant countries like Afghanistan,
Iran, Iraq, Somalia, Sudan and Uganda.

What are Indias International Commitments w.r.t REFUGEES?

India does not have on its statute book a specific and separate law to govern
refugees. In the absence of such a specific law, all existing Indian laws like The
Criminal Procedure Code, The Indian Penal Code, The Evidence Act etc. apply to the
refugees as well.
In order to get a clear understanding of the rights which devolve on the refugees on
account of Indias international commitments mentioned above and their relevance
to law enforcement, it is pertinent to enumerate some of the more important rights
accruing to refugees under the above mentioned Conventions. Article 13 of the
Universal Declaration of Human Rights guarantees Right to Freedom of
Movement, Article 14 Right to Seek and Enjoy Asylum and Article 15 the Right to
Nationality. Article 12 of the ICCPR deals with Freedom to leave any country
including the persons own and Article 13 Prohibition of expulsion of aliens except
by due process of law.

Connecting the Dots:

Is Indias refugee policy is an example for the rest of the world to follow?
Should India rethink on the religious identity basis of the migrants for deciding their
eligibility for citizenship?

Banning Internet Pornography :Is a right violated??

Following Department of
Telecommunication(DoT)
order,
Internet
Service
Providers(ISPs) blocked 857
porn sites in India.
The DoT order said that
content hosted on porn sites
relate to morality and
decency and is, therefore,
subject
to
reasonable
restrictions
on
the
Fundamental
Right
to
freedom of speech and expression.
In order to block the sites, the DoT relied on Section 79(3)(b) of the IT Act.
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Section 79 lays down conditions under which ISPs or intermediaries are exempt from
culpability for offensive content uploaded by a third party. It obligates the
intermediaries to exercise due diligence, and to act on the orders of the court or
the government and its agencies to qualify for immunity.
Section 79(3)(b) states that intermediaries would not be entitled to exemption from
liability if they failed to expeditiously remove or disable access to objectionable
material upon receiving actual knowledge, or on being notified by the government
or its agency that any information residing in or connected to a computer resource
controlled by the intermediary was being used to commit unlawful acts.
Also DoT used section 292 of the Indian Penal Code which relates to morality and
decency to issue an order, as pornography would be an act of obscenity.

Background :

In 2013, an Indore lawyer filed a PIL in supreme court demanding for an action plan
and an exclusive law to contain the proliferation of pornographic sites on the
Internet, especially in view of their adverse impact on children.
In April 2013, the Supreme Court issued notices to the Ministries of Information
Technology, Information and Broadcasting, and Home Affairs regarding the above
issue.
In August 2014, the government expressed difficulty in blocking porn sites, saying
many of these servers were located outside India. The government also told the
court that a Cyber Regulation Advisory Committee had been constituted under the
IT Act, and the availability of porn on the Internet would be deliberated upon.
On 31stjuly2015 , DoT issued orders to ISPs asking for the block of pornographic
sites.
The DoT order said that content hosted on porn sites relate to morality and decency
and is, therefore, subject to reasonable restrictions on the Fundamental Right to
freedom of speech and expression.
Article 19(1)(a) of the Constitution guarantees individual freedom, Article 19(2)
allows the state to impose reasonable restrictions on its exercise in the interests
of the sovereignty and integrity of India, the security of the State, friendly relations
with foreign States, public order, decency or morality or in relation to contempt of
court, defamation or incitement to an offence.

Is a right violated??

A bench led by Chief Justice H L Dattu said: Let us keep in mind the possible
contention of a person who could ask what crime have I committed by browsing
adult web sites in private within the four walls of my house. Could he not argue
about his right to freedom to do something within the four walls of his house
without violating any law.

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Section 292 of the IPC which codifies the offence of obscenity has been outdated
and failed to amend itself with the modern community standards.
Now it is left to the apex court to the decide on whether the right to access to
pornographic content is a fundamental right?

Iasbabas views:

Just mere blocking of some pornographic websites, do not stop the sexual violence
activities thats taking place against women and children.
Rather adopting a curative approach ,government may try adopting preventive
approaches like making background check compulsory when hiring employees in
education and other private organisations, sensitising employees towards feelings of
women , imparting sex education to children in schools etc.

Connecting the dots:

Is Individual freedom guaranteed under article 19 of the constitution absolute?


Comment.
Laws in India have failed to amend themselves in changing societal conditions.
Critically analyse.

Centrally sponsored schemes (CSS) :Slimming Down

A NitiAayog taskforce chaired by Madhya


Pradesh Chief Minister has apparently
recommended that 25 per cent of the funds
under Centrally sponsored schemes (CSS)
be made available to states as untied
monies.
This recommendation should be viewed in
the context of the fairly substantial changes
proposed to the CSS policy framework, as
well as the 14th Finance Commission (FFC)
recommendations on devolution of tax
revenues.

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What are Centrally Sponsored Schemes?

Centrally Sponsored Schemes arespecial purpose grants extended by the Central


Government to States to encourage and motivate State governments to plan and
implement programmes that help attain national goals and objectives.
There were other types of Central Assistance before 2015-16, but almost all of
them are discontinued as states got higher revenue after the 14th Finance
Commission recommendations.
These are extended by the Union Government to States under Article 282 of the
Constitution.

What is the Importance of Article 282?

The article 282 of the Constitution is an insightful saving provision.


Its purpose is to enable the governments to meet unexpected public purpose
contingencies.
The Union or a State may make any grants for any public purpose, notwithstanding
that the purpose is not one with respect to which Parliament or the Legislature of
the State, as the case may be, may make laws.

What is the current status of centrally sponsored schemes?

At present, there are 72 CSS, including six new schemes introduced by the NDA
government.
During the UPA regime, the number of CSS was reduced from 147 to 66.
Rationalization of CSS is important as Centre has decided to raise state's share in
taxes to 42 per cent from 32 per cent.
In line with the recommendations of the 14th Finance Commission ,Modi
government decided to discontinue support to eight centrally-sponsored
schemes, bringing their number down to 58, as it gears up for greater devolution
of central funds to the states, in line with its vision of cooperative federalism.

Finance Commission:

It is a body set up under Article 280 of the Constitution.


Its primary job is to recommend measures and methods on how revenues need to be
distributed between the Centre and states.
Besides suggesting the mechanism to share tax revenues, the Commission also lays
down the principles for giving out grant-in-aid to states and other local bodies.
In the case of 14th Commission, these principles will apply for a five-year period
beginning April 1, 2015.

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What kind of work a Finance Commission has to do?

The commission has to take on itself the job of addressing the imbalances that often
arise between the taxation powers and expenditure responsibilities of the centre
and the states, respectively.
Primarily, it has to ensure a sense of equality in public services across the states.
The head of the latest i.e. 14th Finance Commission is Former Governor of the
Reserve Bank of India, Mr. Y.V. Reddy, is the Chairman.

Are the recommendations of the 14th Finance Commission unanimous?

It appears there is a dissent. The report is believed to contain a dissent note from
Planning Commission member Abhijit Sen.
It has recommended an increase in the share of states in the centre's tax revenue
from the current 32 per cent to 42 per cent.
This is indeed the single largest increase ever recommended by a Finance
Commission.

What does it means to States?

As against a total devolution of Rs. 3.48 lakh crore approximately in 2014-15, the
total devolution to the States in 2015-16 will be Rs. 5.26 lakh crore approximately, a
year-on-year increase of Rs. 1.78 lakh crore approximately.
"The higher tax devolution will allow States greater autonomy in financing and
designing schemes as per their needs and requirements," says the report.
Practically, it will give more power to states in determining how they spend this
money.

Connecting the Dots:

What is the difference between centrally sponsored scheme and Central Sector
Scheme?
What are the recommendations of the Chaturvedi committee with regard to CSS?
What are the issues concerning CSS? And how is it affecting the Centre-State
relationship?

Indias Inverted Abortion Politics

Abortion has been legal in India since 1971, when the Medical Termination of
Pregnancy Act (MPT) allowed termination of pregnancy until only 20 weeks'
gestation.
Except for when a woman's life is at immediate risk, the act restricts the termination
of pregnancy after 20 weeks' gestation, without explanation for this arbitrary cut-off.
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Though many sees the law as quite liberal, as it aims to reduce illegal abortion,
questions being raised about women's health.

What is Medical Termination of Pregnancy Act (MPT)?

In India, Shantilal Shah Committee (1964) recommended liberalization of abortion


law in 1966 to reduce maternal morbidity and mortality associated with illegal
abortion.
Medical Termination Of Pregnancy Act, 1971 (MTP Act) was implemented from
Apr.1972.
Pregnancies not exceeding 12 weeks may be terminated based on a single opinion
formed in good faith.
In case of pregnancies exceeding 12 weeks but less than 20 weeks, termination
needs opinion of two doctors.
The Medical Termination of Pregnancy (MTP) Act of India clearly states the
conditions under which a pregnancy can be ended or aborted, the persons who are
qualified to conduct the abortion and the place of implementation

If the pregnant women finds it necessary to terminate her pregnancy, does she have the
right and upto what moment and on what conditions?

Since such termination raises a conflict between the rights of the child and the
mother (the child's right to survival and the mother's right to terminate the
pregnancy), who is competent to adjudicate the claim?
As a basic premise law states, that killing a foetus is not permissible. If then qualifies,
this opposition by specifying a series of exceptions.

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These exceptions purpose to be based on some specific consideration. One such


consideration is concerned with the conflict between the rights of the mother and
the rights of the child.
The mothers right is allowed to prevail, in some situations.
The women's supposed superiority in his matter is jurisprudentially explained in
terms of the "necessity" of the situation coupled with her right to self-defence.
To save the life or the health of the women, on a balance of probabilities, the lesser
evil is looked upon as the limitation of the foetus to that of the mother.

What is The Indian Law on Abortion says?

Section 312 of the Indian Penal Code, defines the offence of 'causing miscarriage' as
follows "whoever voluntarily causes a woman with child to miscarry shall, if such
miscarriage be not caused in good faith for the purpose of saving the life of the
woman, be punished with imprisonment of either description for a term which may
extend to 3 years, or with fine, or with both; and, if the woman be quick with child,
shall be punished with imprisonment of either description for a term which may
extend to 7 years, and shall also be liable to fine.

Is Indias abortion law putting women at risk?

Indias abortion law are contradictory and need urgent redrafting to prevent
women from making ill informed decisions and risking their lives with illegal
terminations.
If a serious fetal abnormality is detected after 20 weeks, the woman has no choice
but to continue the pregnancy, even if she does not wish to.
This arbitrary 20 week cut-off compels women to make ill informed decisions.
If ultrasound testing, typically at about 18 weeks gestation in India, indicates a
suspicious variation in fetal anatomy, the physician needs to ascertain the degree of
seriousness with additional prenatal diagnostic tests.
By the time a definitive diagnosis can be made, and the woman understands the
prognosis, the pregnancy might well have advanced beyond 20 weeks.

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What are the proposed amendments to solve this problem?

What are the concerns over the sex selective abortions?

The concerns over sex selective abortions are valid, hence the inclusion of the 20
week clause, it should be noted that taking away the right of the individual for
abortion is unethical, for it deprives the woman of control over her own body.
The right to life in Article 21 of the Indian Constitution is considered paramount and
it includes the individuals right to live a life of dignity.
One could focus on more stringent laws regarding use of medical technology for sexselection, and the enforcement of such laws rather than denying access to abortion.

Important CASE STUDY

It was in 2008, when the infamous case of Mumbai couple Niketa and Harsh Mehta,
stirred a nationwide clamour for changes in Indias 44 year old Abortion Law.
The Bombay High Court had refused permission to abort a 26-week foetus with a
serious heart defect after rejecting Niketa's plea to terminate the pregnancy in a
case torn between trauma and ethical issues.
Mehtas sought an amendment to the MTP Act so that pregnancy can be terminated
even after 20 weeks if doctors believe that the child, if born, will have serious
abnormalities, so as to render it handicapped.

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But a division bench of Justice R M S Khandeparkar and Amjad Sayed observed that
they could not alter the provision.
The law may have thought differently, but gynaecologists across the country
supported the couple.
'It is high time we all questioned the laws that go against human welfare at large,'
GeetaChaddha, a senior consultant at Apollo Hospital had said.
Niketa had a miscarriage on 27th week of her pregnancy.

Connecting the Dots:

How Indias Abortion Laws Actively Take Away Individual Choice from Rape
Survivors?
Why Indias abortion law needs an urgent update?
What issues that are not addressed in the draft Medical Termination of Pregnancy
(Amendment) Bill, 2014?

Shed the taboo around organ donation

Organ
donation
and
transplantation provides a
second chance at life for
thousands of people each year.
The growing disparity between
the rich and poor, demand for
human organs and availability of
technology in the country
makes the trading of organs a
quick means to riches for some
and a relief for others.
Invariably Organ trade leads to
exploitation of the povertystricken people by tempting
them with financial gains to meet their immediate short-term financial needs.
The sad reality is that India has one of the lowest organ donation rates among
developed and developing nations.

What are the Reasons for the lowest organ Donation in India?

Finding a donor is the main issue in the country.


Lack of awareness and improper infrastructure facilities are the main reasons behind
the existing scenario.
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Administrative hurdles and conservative


transplantation scenario in India.

mindset

further

affect

organ

What are the Myths about organ Donation in India?

There are a lot of myths associated with organ donation which needs to be
addressed to solve this problem.
Most Indians generally believe that it is against the nature and religion that body
parts are mutilated.
Some are suspicious that the hospital staff may not work hard to save their lives if
they want organs.
Others believe that there might be a temptation to declare them dead before they
are actually dead.

What are the Administrative drawbacks?

Lack of a centralized registry for organ donation acts as another major hurdle for the
people to donate organs or get data about donors.
Also, there is a problem of certifying brain deaths; if people are not aware of brain
deaths; it becomes difficult to convince the relatives of the patients for organ
donation.
India currently follows a very loose version of the opt-in framework. Under this
framework, harvesting of organs is only done after the donor explicitly agrees to it.
Countries such as the US, UK, Germany, and Netherlands have a family consent
system in place which helps raise the number of donors.

What is the Donor Card?

Signing a donor card is the first step in making your wishes about donation known.
A donor card is not a legal document but an expression of ones willingness to
donate.
While signing a donor card demonstrates ones desire to donate organ after death,
letting the family or friends know about the decision is very important.
That is because family members will be asked to give consent for the donation.
The decision will be considered final when they give consent.
Vital organs such as heart, liver, lungs, kidneys, pancreas and intestines, and tissues
such as corneas, heart valves, skin, bones, ligaments, tendons, veins, etc. can be
donated in case of brain death.

What is Green Corridor Concept?

Several new initiatives have come up to facilitate smoother and better transplants,
and hasten the process of organ retrieval.

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The Green Corridor concept is a great idea as it involves the unhindered transport of
an organ to the hospital, through a series of alerts at traffic junctions, airports and so
on.
Experts propose a formalisation of the Green Corridor by creating a new code, akin
to those used in natural disasters, to be used for any organ retrieval or transport,
which will ensure that all stakeholders civic bodies, traffic police, ambulance
operators and doctors align to ensure the timely movement of organs.

What are the Legal Provisions w.r.t Organ Donation?

The Government passed the Transplantation of Human Organ Act (THO) in 1994
which made unrelated transplants illegal and deceased donation a legal option with
the acceptance of brain death.
Government of India enacted the Transplantation of Human Organs (Amendment)
Act in 2011 which made provisions for simplifying the procedure for human organ
donation.
The recently notified Transplantation of Human Organs and Tissues Rules(THOT),
2014 has many provisions to remove the impediments to organ donation while
curbing misuse/misinterpretation of the rules.

IAS BABAs View

The availability and optimal utilisation of organs can be enhanced through a national
declaration on cadaveric donation that puts forth an opt-out framework in place.
Such a framework, through the use of IT, will ensure that only those who opt out
willingly will not be used as organ donors.
This declaration will give India the unique position of having taken up a visionary
public health initiative on such a large scale.

Connecting the Dots:

What are the Reasons behind the imbalance between the number of organs donated
and the number of people waiting for a transplant?
Making organs a commodity is fraught with erosion of social, moral, and ethical
values and is not an alternative that can be acceptable to meet organ requirements
in a civilized society. Critically analyze.

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The Killer Scam-Vyapam Scam

What is this scam about?


The scam is an admission and recruitment scam involving politicians, senior government
officials, business-persons and others in Madhya Pradesh. In it, undeserving candidates
bribed politicians and
MPPEB officials, through
middlemen, to get high
ranks in the entrance
tests or secure jobs.

Many of those
who
discovered
these sordid facts
whistleblowers
and
journalists
responsible
for
unearthing
the
details have died
in a spate of suspicious incidents.

How did they deceive authorities?


The following tricks were used by those involved in the scam:

Impersonation: All the information of the candidate remained the same, except the
photograph. The candidates photograph was replaced by that of the impersonator
and after the exam, it was changed back to the original. Obviously, the
impersonators were brilliant students and they received huge sums to keep their
mouths shut.
Engine and bogie system: A person was strategically made to sit in front of the
candidate in question. The person let them copy from his sheet or exchanged the
sheet with them at the end of the exam.
OMR sheets: The candidates in question were asked to leave their answer sheets
blank and were given high marks in the exam. Or they were supplied with solved
OMR sheets before they took the exam.

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Are the Whistle Blowers in India protected?

The fact remains that in the absence of an institutional structure designed to protect
witnesses, mere administrative enthusiasm can never serve the purpose.
The nearest we have come to such a structure is in passing the Whistleblower
Protection Act, 2011, which finally received Presidential assent.
The Centre has moved to substantially amend it to ensure that whistleblowers are
prevented from disclosing a wide variety of information including commercial
secrets and IPR.

What is Whistleblowers Protection (Amendment) Bill, 2015?


No public interest disclosure may be if it contains:

Information likely to prejudicially affect the sovereignty and integrity of India, the
security, strategic, scientific or economic interests of the state, relations with
foreign state, or lead to incitement of an offence;
Cabinet papers including records of deliberations of the Council of Ministers,
secretaries and other officers except as provided for under the Right to
Information Act, 2005.
The information relates to commercial confidence, trade secrets, intellectual
property (and such disclosure would harm a competitor).
Information is received in confidence from a foreign government;
The disclosure of the information would endanger the life or physical safety of a
person, or identify the source of information given in confidence for law
enforcement or security purposes.
The disclosure of personal information if it has no relationship to any public
interest, or if it causes unwarranted invasion of privacy. However, if such
information has been made available under the Right to Information Act, 2005,
then it may be disclosed.

What are the basic features of any law that addresses corruption?

First and foremost, the man most competent to prove bribery is the man who gave
it. On the principle that the man giving a bribe is being forced to pay his way, bribegiving should be legal but bribe-taking should not.
Absolute secrecy is the second must-have for any whistleblower law.
Witness protection is not about being followed on a morning walk by a batonwielding policeman. Witness protection is about specialist security servicemen, safe
houses, new identity papers, secret relocation and resettlement. This presumes an
institutional structure grounded in a legal framework riding on a generous budget.
Next we have the problem of persecution and hounding. This occurs at two levels
depending on whether the whistleblower is on the inside or outside. The insider
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suffers the fate of IAS officer Ashok Khemka. He is transferred 40 times in 22 years
because he refuses to engage in dirty dealings.
Finally, we come to the question of who investigates the data and who deals with
the witnesses.

Connecting the Dots:

Is Vyapam scam reflecting the real face of Indian corruption?


Do you agree with the statement Educational extravaganza became an invitation to
corruption bonanza? Yes or No. Justify your answer

Criminal justice system in India : A critical analysis

Criminal justice is the system of practices and institutions of governments directed


at upholding social control, deterring and mitigating crime, or sanctioning those who
violate laws with criminal penalties and rehabilitation efforts.
Although society maintains other forms of social control, such as family, school,
religious institutions, they are designed to deal with moral not legal misbehaviour.
Only the criminal justice system has the power to control crime and punish criminals.
Of late, the relevance of our criminal justice system- both substantive and
procedural- a replica of the British colonial jurisprudence, is being seriously
questioned.
The turn of events leading to Yakub Memons capital punishment, leaves scope for
public to comment on the effectiveness of criminal justice system in India.

Objectives of criminal justice system :

To prevent the occurrence of crime.


To punish the transgressors and the criminals.
To rehabilitate the transgressors and the criminals.
To compensate the victims as far as possible.
To maintain law and order in the society.
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To deter the offenders from committing any criminal act in the future.

Shortcomings in our criminal justice system :

Serious human resource crunch in police personnel


According to United Nations Office on Drugs and Crime (UNODC) ,the number of
police personnel per one lakh people in India is only 138, compared to 525 in Spain
and 196 in USA. Out of the 71 countries for which data is available for 2013, India
ranks 67.
Low conviction and high undertrial rates
According to National Crime Records Bureau (NCRB) data, the conviction rate for
Indian Penal Code crime cases during 2013 was a mere 40.2%. On the other hand,
NCRB prison statistics for 2013 show that more than 67% of the prisoners were
undertrials.
Overburdened and understaffed judiaciary
According to National Court Management System of the Supreme Court for 2011 ,
more than 26 lakh cases are pending in India, in which almost 25% of the cases are
more than five years old.
Politicization of the police force is another biggest reason for underperformance of
criminal justice system in India.

Strengthening criminal justice system : (Iasbabas view)

The criminal investigation system needs higher standards of professionalism and it


should be provided with adequate logistic and technological support.
The number of Forensic Science Institutions with modern technologies such as DNA
fingerprinting technology should be enhanced.
Citizens confidence in the police administration should be enhanced so as to cooperate in criminal investigation.
The legal services authorities in the States should set up committees with the
participation of civil society for bringing the accused and the victims together to
work out compounding of offences.
Understaffing in police and judiciary should be done away with.
Politicization of police should be kept at minimal by implementing supremes court
decision in Prakash Singh case.

Connecting the dots:

Critically analyse the shortcomings of criminal justice system in India , with special
focus on the state police forces.

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Modernisation of police forces is the panacea for the shortcomings of criminal


justice system in India. Comment
Judicial independence from Executive is the need of the hour , to overcome the
shortcomings of criminal justice system . Critically analyse

Rising healthcare costs : a burden on poor

The cost of treatment rose at a


double-digit pace of growth,
outpacing average inflation in both
rural and urban India over the past
decade, according to the recently
published results of a cross-national
survey on health conducted by the
National
Sample
Survey
Organization (NSSO).

As more and more patients step into private clinics and hospitals for treatment, they
have been faced with rising medical bills.
Average hospitalization costs in India have rose from Rs.5,695 in 2004 to Rs.14,935 in
2014 at the rate of 10.1% in rural areas and in urban areas it rose from Rs.8,851 in
2004 to Rs.24,436 in 2014 at the rate of 10.7%.

Reasons for increase in hospitalization costs:

The absence of adequate investments in preventive public health facilities such as


sanitation and waste management in a densely populated country such as India
which lead to rampant spread of infectious diseases and raise health costs for the
average Indian.
India spends about 1 percent of its gross domestic product (GDP) on public health,
compared to 3 percent in China and 8.3 percent in the United States.
The sorry state of public hospitals and poor quality health centres have forced an
increasing number of patients to turn to private medical centres.
The proportion of people visiting private hospitals in urban India has increased by
nearly 6 percentage points to 68% over the past decade due to poor quality urban
health centres.
Lack of insurance coverage and should shell out money from their own pockets.
86% of rural Indian patients and 82% of urban Indian patients do not have access
to any form of employer-provided or state-funded insurance.

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Lack of adequate health infrastructure: In India the number of doctors per lakh of
population is only 45, whereas, the desirable number is 85per lakh population.
similarly the number of nurses and auxillary nurse and midwives (ANMs) available is
only 75 per lakh population whereas the desirable number is 255.

Government initiatives wrt rising healthcare costs :

Increase spending on public health : Government is trying to increase public


expenditure on health from current level of 1.2%of GDP to 2.5% by 2017 and to 3%
by 2022.
Rashtriya swasthya bhima yojana , a smartcard based cashless health insurance
scheme has been modified and transferred to Ministry of Health and Family Welfare
from Ministry of Labour.
Greater access has been created to medicines, vaccines and technology through
adequate price controls and price regulation, especially on essential drugs.
Centre is trying to set up National Health Regulatory and Development Authority as
a nodal agency to supervise over public health sector in India.

Comparing health models of India and USA:

Main difference between health models of India and USA is the extent of insurance
coverage. More than 80% of the people in USA are covered under one or the other
insurance cover whereas in India the number is only 17%.In USA insurance
companies pay for the patients, whereas in India, the patients end up paying for
themselves.
Patient Protection and Affordable Care Act (PPACA) of USA may be considered wrt
above regard. The act tries to increase the quality and affordability of health
insurance, lower the uninsured rate by expanding public and private insurance
coverage, and reduce the costs of healthcare for individuals and the government.

Connecting the dots:


Critically analyse the shortcomings in public health policy of India. Give suggestions
to overcome the same.
Can India successfully adopt the healthcare model of western countries especially
that of USA. Critically analyse.

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INTERNATIONAL

A tale of two nuclear deals

The finalization of the P-5+1-Iran nuclear deal coincided with the tenth anniversary
of the India-U.S. nuclear deal by sheer chance.
But the two deals, which came ten years apart, reveal American strategy to deal with
nuclear proliferation in two distinct situations and two different times.

What is P-5+1 Iran Nuclear Deal?

The P5+1 is a group of six world powers which, in 2006, joined together in diplomatic
efforts with Iran with regard to its nuclear program.
The term refers to the UN Security Council's five permanent members (the P5)
namely China, France, Russia, the United Kingdom, and the United States; plus
Germany.
The P5+1 are often referred to as the E3+3 by European countries.

What is India-U.S Nuclear Deal?

The 123 Agreement signed between the United States of America and the Republic
of India is known as the U.S.India Civil Nuclear Agreement or Indo-US nuclear deal.
India agreed to separate its civil and military nuclear facilities and to place all its civil
nuclear facilities under International Atomic Energy Agency (IAEA) safeguards and, in
exchange, the United States agreed to work toward full civil nuclear cooperation
with India.

Do these Deals Serve strategic interests of U.S?

The objective was to put the nuclear genie back in the bottle in both cases, though it
looked positive in the case of India and negative in the case of Iran.
The U.S. was alarmed by the weapon tests of India in 1998 even more than the
revelation in 2002 of Irans nuclear activities.
Imposition of sanctions against India and Iran were swift and severe, once it became
clear that India would not sign the Comprehensive Test Ban Treaty (CTBT) and Iran
would not abandon enrichment.

Are these two deals out of fear from UNCLE SAM?

The position of strength the U.S. had in both cases derived from the crippling
sanctions that India and Iran feared, though in the case of India, the sanctions had
disappeared for extraneous reasons even before the negotiations on the deal began.

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Iran was aware that the major difference between the two countries was that India
was not a signatory to the NPT, but expected that it could make up for it by hideand- seek.
Iran expressed readiness to allow inspection of their facilities, but each time the
inspectors came back with more questions than answers.

How did these deals improve the relations of the countries?

In a sense, the deal has liberated Iran from the threats of war and crippling
sanctions, without having to abandon its nuclear programme altogether.
It is more transformational to the region and the world than the India deal.
Irans new economic freedom and consequential prosperity will propel it to the
forefront of the region, posing a challenge to Saudi Arabia and others.
It may even become a partner of the United States and others in their battle against
the Islamic State.
The Iran deal marked a new beginning in Iran-U.S. relations, while the India deal was
a culmination of a process of rapproachment.

Connecting the Dots:

Write a note on Trust deficiency between INDIA-IRAN and United States w.r.t
Nuclear deals.
What is Hyde Act?
Write a note on Comprehensive Test Ban Treaty (CTBT) and NPT.

Constitutional Crisis: As Nepal fumbles with identity issues, an open threat of separatism
raises new concerns.
Present Scenario:

The continuing chaos and uncertainty,


following the political failure to deliver
the constitution and the resultant loss
of credibility and authority of the
state,
have
encouraged
both
separatist and anarchic tendencies.
Amresh Kumar Singh, a CA member
from the ruling Nepali Congress, has
openly advocated for a separate
country if they did not get the
province they were demanding.
Even the army has shown its displeasure, since the current draft of the constitution
undermines its role and position in national security. Also other major institutions
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like the Supreme Court, election commission, the police have their reservations
about the draft.
While three of the four major parties, with the exception of the Maoists, have
agreed to replace secularism with religious freedom, they are divided over the
suitability of a directly elected executive head.
Its now upto the constituent assembly to accept all these grievances within the twoweek deadline that has been set for delivering the constitution.

Background:

The preliminary draft copy of the new constitution of Nepal was tabled on July 2,
2015 in the Constituent Assembly (CA) as an outcome of the 16 point agreement
among the four major political parties (Nepali congress, CPN-UML, UPCM(moist) and
the Madeshi party )of Nepal .This had led to lot of political statements and public
unrest regarding the makeup of Nepal constitution.
The draft was tabled defying a court order and amid opposition from fringe parties,
failure to reflect the interests of marginalized groups, including women, Madhesis,
indigenous peoples, Dalits and religious minorities. The Supreme Court had stayed
the implementation of it, citing that the 16 point agreement infringes on provisions
of the interim constitution that require the CA itself to delineate and name the
provinces in the future federal structure of Nepal.

Reasons for the Constitutional Logjam ?


1. Division of Nepal - according to draft report Nepal will be divides into 8 states based
on ethnic/communal, linguistic, cultural geographical/continuity of regional identity
and continuity of historical identity and economic inter-relationship and capability,
infrastructure development and potential, availability of natural means and
resources and administrative accessibility. A committee would be set up to
demarcate the country based on above lines.
However political parties like Moists and Madeshi want the state to be divided
strictly on ethnic lines to maintain homogeneity in population.
2. Presidential form of government or Parliamentary form - draft report talks about
parliamentary form of government, even the ruling Nepali congress supports it.
However the moist party headed by Prachanda backs Presidential form of
government.
3. Whether Nepal should be Hindu republic or remain secular - majority of population
in Nepal are Hindus and are demanding for a Hindu state. Whether Nepal remains as
Hindu republic or only republic, religious freedom for people is very important and
should be the need of the hour.
4. Issues with respect to judiciary Presence of judicial council to appoint judges of Supreme Court.
Supreme Court to submit annual report to President, which will be tabled in
parliament.

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Presence of federal judicial service commission to look into matters of


promotion and transfers of judges is another cause of concern.
5. Issues related to third tier or local governments with governing from village councils
and presence of judicial committee to supervise the same.
6. Presence of Constitutional council to appoint heads and chairman of various
democratic institutions like election commission, federal public service commission,
auditor general etc. Constitutional council consists of prime minister, speaker of
lower house, leader of opposition in lower house, chief justice and one women
member among council of ministers.
Connecting the Dots:

Amidst the current ongoing crisis, can monarchy be the solution to restore the
balance between tradition and modernization in Nepal? What role can India play
here?
Does Nepal still treat India as its big brother?
What are the current measures taken by India to build better relationship with
Nepal? Are the measures on the right track?

China factor in India Maldives relation: an analysis

Maldives
is
located
south
of
India's Lakshadweep Islands in the Indian
Ocean. Eight degree channel separates
Lakshadweep islands from Maldives.
Over the years India and Maldives have
developed close strategic, military, economic
and cultural relations with each other.
Both nations are founding members of
the South Asian Association for Regional
Cooperation (SAARC),
the South
Asian
Economic
Union and
signatories
to
the South Asia Free Trade Agreement.

What is the issue now?

On July 22, 2015 the Peoples Majlis, the unicameral parliament of the Maldives,
passed a bill amending the 2008 Constitution to allow foreign ownership of land.
The bill amended Article 251, and added a new chapter to the Maldives
Constitution.
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What was article 251 all about?

Article 251 of the Constitution, in its previous form, prohibited foreign ownership of
land. It said that: (a) no foreign party, shall own or be given ownership of any part
of the territory of the Maldives, (b) a foreign party shall not receive a lease of, or
be given in any other way, any part of the territory of the Maldives for a period
exceeding 99 years and,(c) no part of the territory of the Maldives shall be used for
foreign military purposes without the approval of the majority of the total
membership of the Peoples Majlis.

What is the amendment?

It allows foreigners to own freehold land, as long as they meet certain criteria,
including that the project built on the land must be approved by Parliament, there
must be a minimum investment of US $ 1 billion in the territory of the Maldives,
and upon the projects reaching completion, at least 70 per cent of the land must
have been reclaimed from the ocean and be visible at medium tide.
It also declares that allowing a foreign party to own land under these specific
circumstances does not undermine the Maldivian states sovereignty over its
territory and does not amount to loss of territory.

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Should India be worried regarding the amendment?

Indian government officials have voiced concern that the law will be used by China
to extend its military influence and that the Indian Ocean would not remain as a
demilitarised zone.
Also with the amendment, Chinese investments will easily flow into Maldives and
China is known for reclamation of land from the sea, with its immense dredging
capabilities on display in the South China Sea.
This move by Maldives will further strengthen the maritime silk route project of
china and also provides greater access to Indian ocean.
With china taking a keen interest in expanding its strategic footprint in South Asia
and the Indian Ocean, India has good reasons to worry.

Connecting the dots:


1. Comment on geo-strategic importance of Maldives to India, in maintaining
supremacy over Indian ocean.
2. India supports Asian Infrastructure and Investment Bank initiative of China ,should it
also be a part of Maritime silk route initiative. Critically analyse.

India- Bangladesh: Time to Look at Teesta

Having resolved the longstanding issue of enclaves during the prime ministers
recent visit to Bangladesh, New Delhi has to focus now on other bilateral issues, the
most contentious one being the sharing of Teesta waters.
In the case of Teesta River, which originates in Sikkim and flows through West Bengal
into Bangladesh, settlement has not been arrived at for decades now.

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What is the Teesta Issue all about?

In 2013, an agreement was drafted which allowed for the 50:50 allocation of teesta
waters between the countries during the lean season, when the real problems of
allocation crop up. However, that was not acceptable.
India and Bangladesh share 54 rivers between them.
West Bengal has been opposing the treaty fearing that the loss of higher volume of
water to the lower riparian would cause problems in the northern region of state,
especially during drier months.
It is estimated that the Teesta River has a mean annual flow of 60 billion cubic
meters but a significant amount of this water flows only during wet season(JuneSept) leaving scant flow during the dry season(October-May) wherein the average
flow gets reduced to about 500 million cubic metres (MCM) per month.
This creates issues of equitable sharing during lean season.
Bangladesh has claimed that West Bengals Gazaldoba barrage is unilaterally
channelizing a large volume of water on the Teesta, due to which the countrys
historic flow has been reduced to only 10% and its Teesta Irrigation Project has
suffered.
This is further compounded by the downstream nature of Bangladesh wherein any
construction by India affects the water flow available to Bangladesh.
Furthermore, there are proposals to build 31 dams in the upper catchment area of
the Teesta in Sikkim, along with the 4 dams that are already underway.
One of the important factors responsible for diminishing flow of water is the building
of about 12 hydel power projects over the Teesta in Sikkim where the river
originates.

What proposals are made to augment the river flows during the non-monsoon months?
The deficit in flows can be met by the transfer of water from other water-endowed
basins.
In this connection, the proposals made in the Indian River Linking (IRL) project could
be considered.
The Manas-Sankosh-Teesta-Ganga (MSTG) link canal is one of the links proposed
under the Himalayan component of the IRL.
It envisages diversion of the surplus waters of the Manas and Sankosh rivers to the
Teesta, Ganga and beyond, to meet the requirements of water-deficit areas.
By making suitable provisions in the link canal, it should be possible to release the
required water into the Teesta during the summer to augment river flows, thus
meeting the requirements being proposed for water-sharing with Bangladesh.

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What is Indian River Linking Project (IRL)?


The Indian Rivers Inter-link is a proposed large-scale civil engineering project that
aims to link India's rivers by a network of reservoirs and canals and so reduce
persistent floods in some parts and water shortages in other parts of India.
The Inter-link project has been split into three parts:
1. a northern Himalayan rivers inter-link component
2. a southern Peninsular component and starting 2005
3. An intrastate rivers linking component.
What is (MSTG) link canal?
The Manas-Sankosh-Teesta-Ganga (MSTG) link canal is one of the links proposed
under the Himalayan component of the IRL.
The Manas-Sankosh-Teesta- Ganga link canal envisages diversion of surplus water of
Manas and Sankosh rivers with supplementation from the intermediate major
streams for the benefit of augmenting the flows of Ganga at Farakka.
It aims to further transfer it to water short areas of Krishna, Pennar and Cauvery
basins and providing irrigation facilities to the enroute command areas.
This link will comprise two dams on rivers Manas and Sankosh inside Bhutan
territory and a gravity flow canal for diverting substantial quantum of water to river
Ganga upstream of Farakka barrage.
How is India working for a permanent solution?
A possible option considered was that since the regeneration of flow in the river
channel between the Gajoldoba and Dalia barrages is about 25 per cent, which
would be available at the downstream barrage the additional 25 per cent demanded
by Bangladesh could be released by West Bengal from the upstream barrage.
But the state had its own compulsions for meeting irrigation needs as the summer
flows are generally erratic.
Hence, West Bengal did not want to commit to releasing water from the upstream
barrage, at the cost of its major project envisaging the irrigation of 9.22 lakh
hectares in the ultimate stage.
Thus, the water-sharing arrangement got embroiled in domestic hydro-politics,
stalling further action to find an acceptable solution to the dispute.
IAS BABAs View
Teesta water is an absolute right of Bangladesh, which is recognised by many
international instruments and customary international law.
Earlier, Indo-Pakistan Krishenganga water sharing disputes was settled under the
World Bank as a third party.
Now it is high time for Bangladesh to seek remedy by such kinds of international
Organizations and International courts.
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Connecting the Dots:


Historically, the progress of the India-Bangladesh relationship has always hinged on
issues of water-sharing. Critically Analyze.
Discuss all the realistic concerns that make it essential for the Indian government to
provide a fair deal to Bangladesh.

Asian geopolitics

New configurations in Asian geopolitics are emerging thick and fast.


June, 2015 saw a new trilateral involving India, Japan and Australia.
Japan will also be a part of bilateral India-US annual naval exercises, the Malabar
slated to be held over the next few months.

Why is the term INDO-PACIFIC gaining traction now?

It is clear that the present NDA government wants to revamp the Indian economy by
attracting more foreign investments.
Since the majority of its trade relations are through the sea, resolving the present
and future maritime threats by giving more attention to the Indo-Pacific construct is
of prime importance.

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India has declined Chinas offer to join the latters Road and Belt project, as there are
fears that it might be a means to contain India.
Modis visit to Indias neighbouring Indo-Pacific regional nations, prior to his visit to
China, implies not only the strategic importance of the region for India, but also
shows how India wants to counter possible Chinese threats China in the Indian
Ocean Region

What roles are envisaged for India and China in Indo-Pacific Region?

The Indo-Pacific has many critical sea lanes of communication (SLOC) that are crucial
for Chinas energy transportation.
China has long been using its strategies to reach out and find a permanent position
in the Indian Ocean Region because the area is viable for long-term infrastructure
development to reduce transport dependency through the Straits of Malacca.
The similarities between India and China are not only in their size and population but
also in their national interests.
Both of them have a large economic drive: China to maintain its global position and
India to increase its import surplus.
Maritime security is also an essential to both.
These reasons have led to both the countries investing time, energy and capital in
the Indo-Pacific region.

Are the Asias ODD-MAN (Australia& Japan) in?

Australia and Japan have been anxious to become part of the action and capitalize
on the Asian Century opportunity, and to that end it needs to cast off its odd-manout status in Asian regionalism.
While the Asia-Pacific Community never got off the ground, the continuedrise of
China (and India) created the ever aching longing for US reassurance adesire that has
now been encapsulated in the Indo-Pacific idea.
Among otherthings, this regional design seems able to address Australias dual
anxiety of being both an odd man out and an odd man in for it at once places
Australia at the centre of the action and allows the addition of twopowerful
democratic friends (the USA and India) to its hedging strategy on China.

Is the Nexus among the countries in the Indo-pacific Region Healthy?

India and Japan have an institutionalized trilateral strategic dialogue partnership


with the US. Initiated in 2011, maintaining a balance of power in the Asian-Pacific as
well as maritime security in the Indo-Pacific waters has become an important
element of this dialogue.
A similar dialogue exists between the US, Japan and Australia.
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And now a new trilateral involving India, Japan and Australia have joined these
initiatives, which can potentially transform into a quad of democracies in the IndoPacific region.
The roots of this potential partnership were laid in late 2004 when navies from the
US, India, Japan and Australia collaborated in tsunami relief operations all across the
Indian Ocean.

Connecting the Dots:

Critically analyze the undergoing transformation in the Asias geopolitical space.


Are rapidly evolving regional geopolitics is forcing Asias middle powers (India, Japan
and Australia) to devise alternative strategies for balancing China?

Indias ties with West Asia : An analysis

Indias relationship with the


Middle East or the official
United Nations term of
"West Asia" is driven by the
cold, hard logic of realism.
Indias
foreign
policy
establishment is devoting no
small amount of effort to
understand their country's
role in a politically unstable,
but exceedingly important,
area of the world for Indian
interests.
The government is poised to launch its high-level engagements with West Asia,
which is in the intense of changing political dynamics in the wake of growing threat
from Islamic State (IS) and Iran nuclear deal.
Also the government is looking at leveraging the position India enjoys as a country
with worlds second largest Muslim population and which has robust ties with key
players in the region, including UAE, Saudi Arabia, Israel and Iran, to play a befitting
role.

India and UAE economic relations: An analysis

It is estimated that about 2.6 million Indians live in UAE with a remittance value of
about $10 billion.

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UAE, is India's top trading partner in the entire West Asia North Africa (WANA)
region, as it alone represents 25% of India's export to Gulf Cooperation Council(GCC)
nations. Indian exports to the UAE account for 5% of India's global exports.
The main items of exports from India to UAE includes mineral fuels, natural or
cultured pearls, cereals, gems and jewellery, manmade yarn, fabrics, metals, cotton
yarn, marine products, machinery and equipment, plastic and linoleum products, tea
and meat .
In 2008-09, India emerged as one of the biggest trade partner of the UAE with
bilateral trade between the two countries exceeding US$1.5 billion.
India imports about 10% of its crude oil demand from UAE.
Major items of imports from UAE include mineral fuels, mineral oils, natural or
cultured pearls, precious or semi-precious stones, metal ores & metal scrap, sulphur
and unroasted iron pyrites, electrical machinery and equipment and parts thereof,
iron and steel etc.

Way ahead in India UAE economic relations : (Iasbabas view)

There is a potential of about $1 trillion investments into India from UAE.


Infrastructure development and real estate offer tremendous opportunities for UAE
businesses in India.
In agriculture sector, India can benefit from cold storage and warehousing network
technology from UAE.
Tourism sector is one of the areas that has good potential for future growth,
especially medical tourism. Immigrants coming to India are already utilising Indian
health services, including the ayurvedic establishments and spas.
Another area with considerable scope for cooperation in tourism is construction and
maintenance of hotels. There is good scope for UAE to invest in the over-all tourism
sector in India, which would help pull tourists visiting the UAE to India as well.
Since UAE is focusing on knowledge based industries and with India emerging as
world leader in space, agriculture, pharmaceuticals and bio-technology, there is
considerable scope for cooperation in technology transfer, R&D and for joint
ventures.

Background :

Gulf Cooperation Council: It is a regional intergovernmental political and economic


union consisting of all Arab states of the Persian Gulf. Its member states
are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

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Connecting the dots:

Eventhough UAEs economic, political and cultural links with India, dates back to
more than a century , the relationship has not matured to the extent that was
expected. Critically analyse.

India Israel ties : A close look

India and Israel established full diplomatic relations in 1992 and since then the
bilateral relationship between the two countries has blossomed, with defence and
agriculture forming two main pillars of the bilateral agreement.
However, in recent years, relations have seen rapid growth across a broad spectrum
of areas and the future vision of the cooperation is of a strong hi-tech partnership as
befits two knowledge economies.

Why Israel matters a lot to India ?


DEFENCE:

India is the largest buyer of Israeli military equipment and Israel is the second-largest
defence supplier to India after Russia.
From 1999 to 2009, the military business between the two nations was worth
around $9 billion.
India and Israel also closely cooperate on anti-terror activities and have signed
agreements, among other matters, on homeland and public security and protection
of classified materials and information.
Israel has also pledged support to the Make in India mission in the defence sector.

AGRICULTURE:

This has been an important facet in the Indo-Israel relationship. India has benefited
from Israels expertise in the sector, evident from the number of bilateral
agreements signed between the two nations.
While Indian agriculture is largely dependent on rain and an erratic monsoon, Israel,
a global leader in drip irrigation, has pioneered desert agriculture with sparse
supplies of water.

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India has benefited from Israeli technologies in horticulture mechanisation,


protected cultivation, orchard and canopy management, nursery management,
micro- irrigation and post-harvest management, particularly in Haryana and
Maharashtra.
Maharashtra Chief Minister Devendra Fadnavis recently visited Israel, seeking agrotechnology to address the farming crisis in the Vidarbha and Marathwada regions.

WATER MANAGEMENT:

Technologically adept Israel has developed water-management technologies, located


as it is in a semi-arid region with limited sources of fresh drinking water.
Israels expertise includes recycling waste water and desalination. Indian companies
and official delegations regularly visit the biannual Water Technology & Environment
Control Exhibition & Conference, which showcases Israels water and energy
technologies.
IDE, an Israeli company, has built several desalination plants in India, including a 100million-litre per day desalination plant at Nemelli in Tamil Nadu, commissioned in
2013, the second such plant in Chennai.

TRADE:

Indias total trade with Israel is $6.06 billion in 2013-14, up 57% over 2009-10. The
trade balance stood in Indias favour at $ 1.44 billion in 2013-14.
Mineral fuels and oils are Indias leading export to Israel worth $1.45 billion in 201314.
Indias major imports from Israel in 2013-14 included natural or cultured pearls and
precious stones, worth $1.20 billion. Stones and pearls are the second-largest
commodity, in terms of value, exported to Israel from India after mineral fuels.
Israel ranks 44th in terms of foreign direct investment in India, investing $82 million
between April 2000 and February 2015.
Since 2010, the two countries have been negotiating a free-trade agreement for
goods and services, which should boost investments and trade ties.

Way ahead: (Iasbabas view)

Notwithstanding cooperation in agriculture, defence etc, both countries see


themselves as isolated democracies threatened by neighbours that train, finance and
encourage terrorism, therefore both countries also view their cooperative
relationship as a strategic imperative.

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Connecting the dots:

Do you agree with the view that Israel is a natural ally of India ?
Agriculture and Defence are the two pillars which determined the relationship of
India with Israel. Comment.
India needs to develop a strategic relationship with Israel ? Analyse the statement
with reference to cross border terrorism in India.

The sprouting of the look west policy

India has successfully pursued a Look East policy with the countries of South-East
Asia. The free trade agreements concluded between India and ASEAN in goods,
services and investments talk about the success of our look east policy.
Like South East Asia , India considers the Gulf region as part of its extended
neighbourhood.
Formally India adopted look west policy in 2005, however much developments did
not take place.
With the recent visit of our prime minster to UAE, the policy has got a new start.

Indias priorities in the Gulf :


Energy security:
Securing long term energy supply is of primary importance for India in the region.
India is currently the fourth largest energy consuming country in the world and it
may go up to third position in next couple of decades.
Indias annual GDP growth at the rate of eight per cent would require further
industrial growth which would demand more energy supply for the country.
The growing energy necessity has undoubtedly dictated Indias initiative of building
up a strategic energy partnership with the region to secure long term energy supply
for the country.
Trade and investment:
The Gulf remains a favourite trading partner for India and the trade figures have
been consistently going up especially with countries like the UAE, Saudi Arabia and
Iran.
The UAE is Indias foremost non-oil trading partner in the world with a total trade of
43,469.50 million dollars. Saudi Arabia is the fourth largest non-oil trading partner
with a total trade of 21,004.57 million dollars.
The Gulf countries look at India as a fast growing economy which holds the potential
to compete with the major world economies.
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Realising the trade potential of the Gulf countries, India has entered into a
negotiation with the GCC to finalise a Free Trade Agreement.
The Gulf countries have huge potential for investing in different sectors in India as fdi
for mutual benefit.

Forging strategic ties:


While the oil and energy trade dynamics define Indias relationship with the Gulf
countries, there is a growing realisation that it is time to move beyond the
traditional buyer-seller relationship.
India is looking forward to enhance strategic ties with the region.
India has already discussed its intention of joining the United Nations Security
Council (UNSC) as a permanent member with the Gulf countries.
Military cooperation:

The growing threats of Islamic extremism, terrorism and maritime piracy have
become concerns for both India and the Gulf countries.
There is a growing concern over the rise of criminal activities, money laundering and
illegal arms trade between the two regions.

Strengthening soft power:

There is a conscious effort on the part of India to bring back Indian cultural
influence in the region which India enjoyed in the past.
In recent years India has attempted to strengthen cultural ties with the Gulf
countries by signing and renewing the existing cultural exchange programmes.
Cooperation in the field of education is an emerging area of cooperation between
India and the Gulf region.

Protecting interests of diaspora:

Protecting the interest of the five million strong Indian diaspora has been an
important element of Indias policy priorities in the Gulf.
The Indian maids working in the households are in the most vulnerable situations as
they are not covered under the local labour laws.
India has signed labour agreements with the Gulf countries which call for
protecting the workers from exploitation by the employers (like sexual
harassment, physical abuse, holding the payment, overtime work without extra
incentives etc.), checking the illegal and unauthorised recruiting agencies and
unhealthy working and living conditions.
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Gulf cooperation council(GCC) looks east :

It is not only India which is looking west , the gulf countries are also reciprocating
with their look east policy.
Several factors have contributed to this fundamental shift in West Asian strategic
thinking.
1. The structural change in the global energy market with West Asian oil and gas
increasingly heading to South and East Asian markets rather than to the Trans-Atlantic
markets.
2. Partly as a consequence of this structural change in flows and partly owing to the
fiscal stress faced by the trans-Atlantic economies, West Asia is looking to India and
other Asian powers to step in and offer security guarantees to the region. Many GCC
states have welcomed defence cooperation agreements with India.
3. In the wake of the Arab Spring and the mess in Egypt and Iraq, the Gulf states find
India and China to be more reliable interlocutors than many western states.
4. Under pressure from radical and extremist political forces within West Asia, most
states in the region have come to value the Indian principle of seeking and securing
regional stability as an over-riding principle of regional security.

Way ahead (Iasbabas view):

The Look West policy has certainly accelerated Indias engagement with the Gulf
region.
As India has huge stakes in the region, the policy should not be limited only to trade
and investment, but should be supplemented with more proactive Indian
involvement in the various sectors like education , soft power etc.

Background :

Gulf Cooperation Council : Gulf Cooperation Council (GCC) is


a regional
intergovernmental political and economic union consisting of all Arab states of the
Persian Gulf.
Association of South East Asian Nations(ASEAN): It is a political and economic
organisation of ten Southeast Asian countries which includes Indonesia, Malaysia,
Philippines, Singapore,
Thailand, Brunei, Cambodia, Laos, Myanmar (Burma),
and Vietnam.

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Connecting the dots:


Comment on the look west policy of India .
For India to be a regional power in Asia , its relation with Gulf Cooperation Council
matters a lot . Critically analyse the statement.
Look west policy of India is a win-win relation to both India and the Gulf countries.
Critically analyse.

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ECONOMICS

CSR: Corporates Should Reach out

The new Companies Act has made CSR a financial obligation, but it is still a secondary
priority.
Corporates have scrambled to meet their corporate social responsibility (CSR)
obligations under the new Companies Act, 2013.
This is not a surprise, as most companies have not regarded CSR as a business
priority. The positive outcome is that the act has compelled introspection.

What is the new Companies Act, 2013?

Companies Act, 2013 is an Act of the Parliament of India which regulates


incorporation of a company, responsibilities of a company, directors, and dissolution
of a company.
The 2013 Act has introduced several new concepts and has also tried to streamline
many of therequirements by introducing new definitions.
The 2013 Act makes an effort to introduce the culture of corporate social
responsibility (CSR) in Indian corporates by requiring companies to formulate a
corporate social responsibility policy and at least incur a given minimum expenditure
on social activities.

How CSR can contribute to profit, people and planet?

As detailed in the Act, a company covered by the Act is required to establish a CSR
committee, set CSR objectives, monitor CSR activities and report the same in their
annual financial statements.
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If the company wishes, the activities can be performed through a foundation formed
by the company specifically for this purpose.
The Act specifies quite a few types of CSR activities, including those that encompass
training, education, health, sanitation and environmental sustainability.
Quite a few of them already spend more than the mandatory 2% of their net PBT on
such activities.

What keeps companies from doing good?

While reporting of the CSR spending in annual reports is mandatory and there are no
specific penalties for not spending, the Act has certain general penalty provisions
which the government could potentially invoke.
Though the mandatory CSR norms may seem coercive in nature, the intention is to
institutionalize philanthropy and bring in accountability.
Gearing up for CSR spending would involve engaging with non-governmental
organizations (NGOs) that undertake social, developmental and educational
activities and/or form specialized foundations to do such tasks.

What are the Implementation Issues in CSR?

Today, companies are not engaged with the beneficiary community.


They provide money to build toilets, but they leave unaddressed the problem of locating
the septic tank.
They construct schools, but do little about enhancing the quality of education. They give
money, but they have no understanding of the subculture of poverty.
The result is that their contribution has had a limited impact.

How can companies overcome these issues?

What they should do is take a holistic approach.


They need to acknowledge that there is no silver bullet solution to the problems of
poverty and that, while they have expertise, it is not of a breadth that can deliver endto-end responses to these problems. What can make a difference are partnerships
wherein the sum of the parts is greater than the whole.
Take, for instance, a social enterprise between Wipro, NIIT, Larsen and Toubro (L&T) and
Unilever. Each has specific domain knowledge, such as Wipro in technology, NIIT in
education, L&T in engineering and project management; and Hindustan Unilever in
marketing and distribution.
Singly, these companies can make a meaningful and sustainable impact in their area of
expertise alone.

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But together, given the complementarity of their assets, they can shift the needle
systemically.

Connecting the Dots:

Why there is considerable confusion on what qualifies as CSR-spend and what does
not?
Write a note on Section 8 company
Do you think that CSR spending is unlikely to be adopted by companies in letter or in
spirit?

Generic drugs ban prompts India to freeze EU trade talks

A firm India put off its negotiations for a free trade agreement (FTA) with the
European Union (EU), scheduled for this month (August), following an import ban
imposed by the
latter on 700 drugs
tested
by
Hyderabad-based
GVK Biosciences.
The GOI also said
that it has been
trying to pursue the
matter
across
various regulatory
bodies
in
the
European
Union
(EU), and added the
pharmaceutical
industry was one of the countrys flagship sectors with a commendable reputation
for sound research and safety protocols over the years.
However, EU has stressed that the ban on 700 generic drugs was based on scientific
and not trade considerations.
The India-EU trade talks, formally known as the Broad- based Trade and Investment
Agreement (BTIA), remain stuck as both sides are not satisfied with each other's
offers.

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Background:

India and EU have been negotiating for the proposed free-trade agreements since
2007. The talks have seen set-backs due to differences regarding lack of access for
Indians to EUs labour market and high taxes imposed on liquor and car imports
from Europe. The latest development comes as yet another setback for the talks to
progress further.

What is free trade agreement?

The EU and India are committed to further increase their trade flows in goods and
services as well as bilateral investment and access to public procurement through
the Free Trade Agreement negotiations that were launched in 2007.
Substantial progress has been made so far, and key areas that need to be further
discussed include improved market access for some goods and services, government
procurement and geographical indications, and sustainable development.

What is Broad- based Trade and Investment Agreement (BTIA)?

India and the European Commission (with a negotiating mandate from the European
Council) initiated negotiations on a Broad-based Trade and Investment Agreement
(BTIA) in 2007.
As of March 2015, negotiations remained deadlocked after failing to resolve
differences related to matters such as the levels of permissible FDI, market access,
domestic-sourcing obligations in multi-brand retail, manufacture of generic
medicines, anti-dumping safeguards, greenhouse gas emissions, civil nuclear energy
generation legislation, farming subsidies, replacement of traditional cash-crops with
sterile genetically-engineered and patented variants, regulation & safeguards for the
financial and insurance sectors, cooperation on tax evasion & money laundering,
overseas financing and monitoring of NGOs in India, work visa restrictions,
technology transfer restrictions, cooperation on embargoes (Russia[40] & Iran), etc.

How will this Ban affect Indian Economy?

The ban will affect Indias annual exports of $15 billion. According to
Pharmaceuticals Export Promotion Council (Pharmexcil), India could lose about $11.2 billion worth of drug exports because of the decision taken by the European
Commission to ban the drugs. In 2014-15, out of the total exports of pharmaceutical
products, Europe accounted for 20%.
The ban is to come into effect from August 21 and will apply in all the 28 membernations.
There was also temporary ban, proposed by the European Commission, includes
mangoes, eggplant, the taro plant, bitter gourd and snake gourd in the past.
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The two-way commerce between the two sides stood at about $99 billion in 201415.

Connecting the Dots:

Though India and EU have been negotiating for the proposed free-trade agreements
since 2007, they are often met with setbacks. What were/are these setbacks till
date? What measures have been taken by both the governments in this regard?
How important is the pharmaceutical industry to Indias economy?
Write a note on India-EU-28 cooperation.

Capital infusion in public sector banks

In the past 15 years, the Government has infused more than Rs.81, 000 crore capitals
in PSU banks but this capital is eroding due to rising bad assets.
With non-performing assets of public sector banks (PSBs) soaring of late (as of the
January-March quarter, gross NPAs stood at 5.20 per cent compared with 5.63 per
cent in December), the Finance Ministry has announced that it will infuse Rs.70,000
crore over the next four years.
The capital infusion will be done in three tranches - Rs 25,000 crore in this fiscal and
the next followed by Rs 10,000 crore each in 2017-18 and 2018-19.

What are Non-Performing Assets (NPAs)?

Non-performing assets, also called non-performing loans, are loans,made by a bank


or finance company, on which repayments or interest payments are not being made
on time.
A loan is an asset for a bank as the interest payments and the repayment of the
principal create a stream of cash flows.
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It is from the interest payments than a bank makes its profits.

What is Capital Infusion?

When one division is not doing well, it might benefit from an infusion of new funds
from the more successful divisions.
In the context of venture capital, it can also refer to funds received from a venture
capitalist to either get the firm started or to save it from failing due to lack of cash.

How does Capital Infusion boost economy?

Adding Capital to banks is to enable them to lend to borrowers in selected sectors


such as two wheelers, consumer durable, etc, at lower rates in order to stimulate
demand.
Capital Infusion will lower the cost of lending to banks under the Marginal Standing
Facility Window (MSF) to improve liquidity in the system.
More capital to PSU banks will lower the borrowing cost and increase their capacity
to lend, besides promoting investments.

Is the Rocky Road ahead for PSBs?

PSB executives feel that the thrust on efficiency is welcome but the timing was
questionable.
For, most state-owned banks face challenges due to big asset quality pressures, large
scale retirement and a leadership gap at the top.
Capital raising efforts by PSBs other than the capital infusion by the government,
face challenges because of their relatively low equity valuations compared to their
private sector peers.

What does the Moodys Report Says?


According to the Moodys Investors Service

The governments plan to recapitalise public sector undertaking (PSU) banks to the
tune of Rs.70, 000 crore over four years is credit positive, but not a game changer.
Although the capital infusion plan is credit positive, we note that the capital amount
is a fraction of the overall capital requirements over the next four years.
Moodys report does credit the government with changing the previous policy of
providing capital to only select banks.

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Connecting the Dots:

Though the capital infusion plan is credit positive, banks still need access to equity
markets to materially improve their capital levels. Explain.
Is the money through Capital Infusion enough to take care of the capital needs, and,
if it is not, how easy or difficult will it be for the public sector banks to raise money
from the markets?

Performance of Public Sector Banks in India : An analysis

In a message to public sector banks (PSBs) that only performers will survive, the
government, in an unprecedented move, has decided to allocate capital to only
nine PSBs, which have shown efficiency in recent years.
As a result, some PSBs reeling under pressure due to mounting bad loans and
depleted capital reserves have been left out.

Issues that are a concern to the PSBs:


1. Asset quality

The biggest concern in PSBs today is the rise of NPAs(non performing assets).
In the year 2014, the Gross NPAs of the Public Sector Banks (PSBs) saw an increase
of 38.2% while that of the private sector banks was comparatively lower at 13.6%.
A Non-performing asset (NPA) is defined as a credit facility in respect of which
the interest and/or instalment of principal has remained past due for a specified
period of time. In simple terms, an asset is tagged as non performing when it
ceases to generate income for the lender.
The NPAs are classified into two categories gross NPAs and net NPAs.
Gross NPAs are the sum total of all loan assets that are classified as NPAs as on
balance sheet date, as per the Reserve Bank of India guidelines. Gross NPAs reflect
the quality of loans made by banks.
The rise in NPAs in 2014-15 has been attributed to the effects of global recession
coupled with internal factors such as slowdown in the domestic economy.

2. Credit growth

As per RBIs weekly statistical supplement, credit growth of Scheduled Commercial


Banks (SCB) for the year 2014 stood at 14.8% which was slightly lower than 14.9%
witnessed in FY13.
The credit growth in PSBs is around 14% compared to 16% from private sector
banks.
This shows PSBs are lagging behind private banks w.r.t increase in credit disbursal.
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3. Deposit growth

For the year 2014, SCBs showed a deposits growth of around 14% as compared to
13.1% for FY13.
In this PSBs account for around15% whereas private sector banks account for
around 13%.
Inspite of higher deposit growth in PSBs , the credit growth does not match the
figures of deposit growth. This shows the poor performance of PSBs.

4. Capital Adequacy

Capital adequacy refers to the statutory minimum reserves of capital which a bank
or other financial institution must have available.
Capital Adequacy remained comfortable for the PSBs but there is need for raising
additional capital to meet Basel III norms.
However with under performance of the PSBs along with unfavourable market
conditions, for PSBs to meet the capital adequacy demand, the support from the
government in form of capital infusion is needed.

P J Nayak committee report on the governance of Board of Banks in India:


The recommendations are as follows:

Repealing of Bank nationalization Act (1970, 1980) and SBI and SBI subsidiaries Act
as these acts mandate the Government to keep shareholding >50% in PSBs and
appointment of CMDs and board directors.
Government should setup a Bank Investment Company (BIC), under Companies act,
2013 as a Core investment company.
Government should transfer its shares of PSBs, to BIC.
Register all PSBs as subsidiary companies of BIC, under Companies act.

Way ahead (Iasbabas view):

The Centres plan to revive public sector banks is more an attempt to boost sagging
public confidence in them rather than a radical effort at reform.
Instead of focusing on capital infusion every time , the government can strengthen
corporate governance in PSBs, infuse some much-needed professionalism, bring
about greater transparency and accountability so that the banks can deliver better
return on its investments.

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Connecting the dots:

Comment on the performance of public sector banks in India with special emphasis
on non performing assets.
Critically analyse the recommendations of P J Nayak committee on governance of
Board of Banks in India.
Should public sector banks be privatised? Critically analyse the statement with
special emphasis on P J Nayak committee report.

Payment Banks: Banks for the unbanked aam aadmi

The issuance of an in-principle


approval to 11 applicants to start
payments banks was a major
landmark in the history of
banking in India.
For the first time we will have a
new form of bank with unique
features.

What are payment banks?

Payments banks are a non-full service bank in India. The main objective of these
banks is to accelerate financial inclusion.
Financial inclusion is the delivery of financial services like credit, insurance etc at
affordable costs to sections of disadvantaged and low-income segments of society.

Characteristics of payment banks:

These are specialised banks that provide services to small businesses, migrated
labour and low income households.
Payments banks will provide small savings accounts to its customers.
Payments banks will also allow mobile firms, supermarket chains and others to cater
to small scale businesses.
Payments banks do not carry lending activities. This means that the banks are not
allowed to give credits to its customers.
Such banks will only be allowed to accept deposits and offer payment services.
These banks have to use 'Payments Bank' in its name which will differentiate it from
other banks.
Payments banks cannot form subsidiaries or undertake any non-banking activities.
These banks are mainly based in rural parts of India, specifically areas which are
unbanked.
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The deposits made in payments banks need to be invested in government bonds.

Regulations for payment banks:

Payments banks can hold a maximum balance of Rs 1,00,000 per customer.


These banks can only issue debit and ATM cards. They cannot issue credit cards to its
customers.
Such banks should have a minimum paid-up equity capital requirement of Rs 100
crore.
Under payments banks, the stake of a promoter should be minimum 40% for the first
five years.
As per the rules of the Foreign Direct Investment (FDI) these banks can allow foreign
share holding.

List of the companies, entities and people, that received an "in-principle" nod for payment
banks:
1. Reliance Industries Ltd
2. Aditya Birla Nuvo Ltd
3. Airtel M Commerce Ltd
4. Vodafone m-pesa Ltd
5. Tech Mahindra Ltd
6. Dilip Shanghvi
7. Fino PayTech limited
8. National securities depository limited
9. Vijay Shankar Sharma
10. Department of Posts
11. Cholamandalam Distribution Services Ltd.
Some issues that can arise wrt payment banks:

For this model to work well every bank has to have several branches or contact
points so as to cover a larger geography and population.
Given that the targets will be the lower income groups, to obtain a sizeable
quantum of funds, the numbers to be included have to be high which is very
challenging.
When it comes to the postal department, there have to be changes in laws to enable
a post office to do banking.
Post Offices are the agency which already collects small savings which also includes
savings accounts.
But now with the postal bank having the potential to earn an income, how will the
old savings accounts and the new ones be differentiated? This has to be worked
out with the government.
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There is a case of cannibalisation of either payments banks by commercial banks


and post offices or the other way round.
The successful Jan Dhan Scheme implemented by commercial banks has garnered as
many as 175 million accounts with an average balance of just Rs. 1,200, with 45 per
cent being zero balance.
These accounts are being used largely for various cash transfers and hence a large
part of these balances.
In this case how do the new banks convince people to open such accounts and
maintain a positive balance?
The use of technology is vital. The applicants will presumably have different
approaches. The postal bank holds the biggest advantage of already having around
1.5 lakh offices.
A technology that connects all the contact points is the need of the hour.
There are regulatory issues which presumably have already been addressed by the
RBI.
For instance can telecom selling agents become staff for collecting deposits? We
cannot have unqualified staff dealing with customers as there should be protection
against mis-selling.
Therefore, the RBI would have to set up a new cell to monitor these banks
which will be a logistical issue given the geographical spread.

Way ahead:

The concept of new payments bank is compelling as it opens another route for
inclusive banking. While time will tell how successful this model will be in
incremental terms, the RBI on its part has given permission to probably the best
players who are capable of making this a reality.

Connecting the dots:

What are payment banks ? Explain its relevance to India in order to achieve financial
inclusion.
Critically analyse the issues associated with payment banks in India .
Comment on the characteristics of payments banks.

New financial commission

While countries in the West are giving their central banks more authority and
regulatory powers, India is proposing a system to reduce the RBI to a shadow of
itself.
The code, if implemented, will undermine RBI's ability to rein-in inflation.

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This will also discourage investors in taking risks in the future as RBI has been viewed
by many as an anchor for financial stability in the country.

What does the new draft says?

The Monetary Policy Committee (MPC) will be chaired by the RBI governor
It will also comprise a member of the RBI board and an RBI employee
Decisions at MPC meetings will be taken by a majority vote of the members present
and voting
The previous draft had suggested the RBI governor have the power to supersede any
MPC decision
Each member of the MPC will have to state the reasons for voting in favour of or
against proposed resolutions

What is the proposed shift in the structure?


At present, the monetary policy is framed by the central bank after factoring in the
recommendations of an expert advisory committee, assessing multiple economic
indicators in domestic and global markets and, finally, consulting with the finance
minister on the broader policy direction.
The final decision, however, rests with the governor.
But, under the proposed framework, RBI governor will be one of the several
members of the committee and the government will dictate the policy.
In effect, the power to decide the countrys monetary policy will be shifted from an
independent, credible institution to the political interests of the government, for
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whom monetary policy will then be among the many tools under disposal to work
operate in line with its political agenda.
What are the Possible Conflicts of the new proposal?
The potential for conflict of interest is vast.
So far, the government has been interested in securing high growth rates, not only
as an electoral plank but also as a means to finance various expenditure schemes
proposed in each Budget.
The RBI, on the other hand, is tasked with controlling inflation, which often
accompanies high growth rates.
Raising interest rates is the best tool to achieve this, but it also puts a dampener on
growth.
This will give room to major conflict of interests in the functioning of the MPC. For
instance, a government-controlled MPC can push for a rate cut, even if the RBI is not
fully convinced with the signals emanating from the inflation-front.
The RBI will then be forced to sing the same tune of the finance ministry.
This can put the economy in serious trouble in the long term.
IAS BABAs View
Sidelining the central bank according to political whims and fancies of politics, the
government will risk making Indias economy a black spot in the eyes of rest of the
world with no credible, independent monetary policy framework.
An RBI, with little control on the monetary policy, will not be a favorite in the eyes of
global investors and international rating agencies, which would do no good for India,
which is aspiring to become a global economic power.
Connecting the Dots:
What is the exact aim of the proposed Indian Financial Code (IFC)? What is it trying
to fix? Is a need for a fix at all?
Is the Government undermining the RBIs Independence with its new proposals?

Diminishing credibility of Indian Pharma

A foreign drug safety regulator identifies serious data integrity issues provided by an
Indian company.
Yet, instead of investigating the accusations in a transparent manner, the Centre
predictably cries foul.
Instead of crying foul, Indian regulators should be examining the evidence and acting
upon it.

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On What basis did EU ban Indian drugs?

The European Commission stresses that the decision concerning a ban on 700
generic drugs was based on scientific and not trade considerations and in accordance
with the advice of the scientific committee of the European Medicines Agency
(EMA).
The EU-wide step came following several country-specific bans, in Germany and
France among others.
Indian industry has argued that these medical products have been in use in Europe
for several years without any specific vigilance reports against them - though the
Europeans may well retort that a vitiated testing and approval process is sufficient
reason for a ban, even in the absence of compound-specific reports.
India has been in touch with European drug regulators to allay their apprehensions
about the testing procedures in the Hyderabad facility.

How does this move effects Indian pharmaceutical industry?

The country could lose about $1-1.2 billion worth of drug exports because of the
decision taken by the European Commission to ban the drugs, according to
Pharmaceuticals Export Promotion Council (Pharmexcil).
India exported $15.4 billion worth of pharmaceutical products in 2014-15, with
Europe accounting for $3 billion, or 20 per cent of the total.
Out of the $3 billion, exports of generic medicines constituted about $1 billion and
drug ingredients accounted for the rest.

Is the quick fix culture and chaltahai attitude of India Increasing?

If Indian companies have to export to western markets, where the returns are much
higher than African or Latin American countries, they will have to meet their
stringent standards.
There is no question of any government compromising on quality in the case of a
product as critical as medicine.
The Indian regulators will also have to pull up their socks and ensure that the best
global standards are being met instead of waiting for their western counterparts to
point out the mistakes and then go on the defensive.
The "non-tariff barriers argument that is often raised to defend Indian goods
against western curbs is not easy to accept in relation to faults found in the
production of life-saving drugs .
A few black sheep can give the entire nation a bad name and a hawks eye needs to
be kept to check such malpractices.
The US government has also been mounting pressure on India to tighten patent
laws. However, the fact that MNCs have been ever-greening patents with cosmetic
changes in their drugs merely to keep out competition has strengthened Indias case.
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Several court rulings have gone against the MNCs on the issue. India cannot afford to
fritter away the competitive advantage that it has painstakingly built up in the
pharma sector over the years and the huge benefit that flows from it to the sick and
suffering.

Is Indian Pharma and drugs safety being recognized as the symbol of LOBBY &
MANIPULATION?

The fact that another Indian clinical research organization based in Chennai
landed in trouble this time with the World Health Organization (WHO) makes
matters even worse.
The notice of concern issued by the United Nations health agency last month
comes close on the heels of the 700 generic drugs being withdrawn in Europe.
WHO stated that there had been critical lapses in a trial of HIV drugs, including
the fact that two-thirds of patients' electrocardiograms (ECGs) turned out to be
fake as details and dates had been changed by the Chennai firm.
The WHO inspectors also criticised the standard of record-keeping in the trial,
including apparent attempts to conceal documents from inspectors.
Multinational pharma companies, that sell branded drugs at exorbitant prices,
represent a formidable lobby opposed to Indian competitors who they have
often accused of infringing patent rights.

How the Drug Circulation in the world does actually works?

A countrys drug regulator is well within its rights to decide which medicines are
suitable for its population and which ones arent.
What matters is whether it has systems in place to discharge its responsibilities.
In what pharmaceutical companies call established markets such as western
Europe and the US, where new drugs are almost always launched first, regulatory
agencies approve a drug based on the results of safety and efficacy trials on human
volunteers.
As no drug is entirely free of side-effects, agencies take a decision based on the riskbenefit ratio.
It is the regulator who decides that certain risks are acceptable when compared with
the drugs benefit.

How far is the DRUG REGULATOR responsible?

Regulators in so called emerging markets such as India take their cues from the
West.
They usually prescribe a safety and efficacy trial on roughly 100 Indian volunteers so
long as the drug is approved in its home country or a major market.

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Since India is predominantly an off-patent drugs market, a number of companies


other than the drugs innovator have traditionally made their copies of the drug
available here, sometimes before the innovator.
Since the regulatory barriers to entry are relatively low, India has hundreds of
companies selling thousands of drug formulations.

What are the Major Pitfalls in the Indian Approach?

First, while in most cases drugs pass muster with all major regulators, in some cases
that does not happen.
So one country may approve a new drug, another might not for any number of
reasons, including politics.
Second, more relevant to the issue of banned drugs is that a medicine may prove
unsafe after it has been marketed.
Even a drug approved after rigorous clinical trials might throw up unacceptable risks
when given to a larger population.
That is why well-regulated markets have systems to monitor new drugs postapproval.
This is usually a combination of post-market surveillance of new drugs and
regulatory activity to get information about side-effects from doctors, hospitals,
patients etc.
The system works imperfectly, but it does work.

Connecting the Dots:

Why India still sells medicines banned elsewhere in the world?


If two major market regulators (USA & France) take contradictory positions on ban of
drugs, what should India do? (Example drug pioglitazone)

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ENVIRONMENT
Green power : Renewable Energy

Despite the vague promises and


platitudinous statements of intent
that it contains, the proposed
National Renewable Energy Act(RE
Act), in the form that has been put up
for public comments, should come as
a measure of relief to the renewable
energy industry inasmuch as it also
yields to several of the industrys
longstanding demands.
The draft Renewable Energy Bill lays
the grounds for making renewable
energy mainstream option.

Why is the RE Law needed?

The Electricity Act (Amendment) Bill 2015 (proposed) provides many key provisions
for the promotion of renewable energy resources including off-grid / decentralized
mode of renewable energy production.
However, from the perspective of future energy resource planning, there is a need to
create a holistic framework to promote the use of renewable energy and its
applications not only in electricity (covered under the E-Act) but also in heat and
transport segments.
There is also a need for an integrated energy resource mapping and planning with
right set of institutional and structural support mechanisms for which the RE Law can
be a pivotal legislation.

What is the aim of proposed National Renewable Energy Act (RE Act)?

1.
2.
3.
4.
5.
6.

The RE Law also aims to have strong linkages with various other national objectives
like:
National Action plan for Climate Change (NAPCC)
National Mission on Enhanced Energy Efficiency (NMEEE)
National Electric Mobility Mission (NEMM)
National Wind & Waste Energy Mission
National Manufacturing Policy
National Skill Development Program
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Hence, the RE Law would bring a macroscopic synergies across various national
objectives and hence a much coordinated and robust RE development model.

Is India trying for level playing field for renewables with RE Act?

Renewable energy offers opportunity to contribute to social and economic


development, energy access, secure energy supply, climate change mitigation, and
the reduction of negative environmental and health impacts.
State governments will also formulate renewable energy policy and plans at state
level.
They may also establish a state 'green fund' for the promotion of renewables.
Other recommendations include setting up renewable energy parks and setting
renewable energy targets.

IAS BABAS View

The RE Act does a lot of mine-clearing of the path towards the goal of generating
175,000 MW of power from renewable resources by 2022. However, the
government has more work to do.
The industry has often cited two major stumbling blocks transmission infrastructure
and the off-taker risk, or the perception of the ability of the buyer of green power
to pay for it.
The transmission infrastructure issue is thus being addressed, though it is doubtful
if the infrastructure will be in place by 2022.
The other issue, off-taker risk, which is based on the poor health of State-owned
power distribution companies, is more vexing.
The answer to that probably lies in the new Electricity Act, which seeks to engender
a crop of private supply companies, to which a renewable energy generator could
sell his power.

Connecting the Dots:

What are the Shortcomings of the Renewable Energy Act? Pros & Cons of Renewable
energy.
Is India working on a comprehensive Renewable Energy Act 2015?
What is the contribution of renewable energy in the total energy generated in India?
How can the current status be improved?

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Climate Change and India- What to expect?


Note- This issue is not yet completed. We will come up with more detailed analysis after
the Paris Talk. Any assumption at this stage is of less use
Background

In December 2015, UNFCCC COP-21 or The Paris Talk is going to take place. US, China
and EU have already declared their intentions and plan about emission reduction
(voluntary targets). India being the fourth largest emitter is going to declare its
stance later in September 2015.

What is the debate?

From long time there is a tussle between Developed vs. Developing World on the
issue of Climate Change and mitigation efforts. After failure of Kyoto Protocol and
Copenhagen Summit, Paris Talk is touted to be a game changer.
But, there are many hurdles as well as uncertainties on whether a stringent
enforcement could be established or not.

The debate around Indias commitment

Indias national scenario demands growth considering the domestic needs and
requirements. Being a developing country and demand for huge population, Indias
growth in industries and economy is inevitable. Consequently the emission will also
increase in the process.
India is trying its best to shift to renewable energy but major demand is fulfilled by
Coal as a raw material. This is the major agenda for other developed nations. The
myth of clean coal is exposed the moment USA started banking on its Shale Gas
resources as earlier US was the proponent of Clean Coal Technology but now silent
on this.
India cannot give away its dependency in Coal for years to come. U.S and China have
announced voluntary reduction by the end of 2030 but after reaching to peak. This is
not practical for India at this point of time.
Even if China peaks its GHG emissions by 2030, as it has committed, and the US
manages to slash its emissions by 32 per cent by that year, these countries will still
be spewing an estimated 14-17 tonnes of GHGs per capita. This will be more than
double India's most liberally projected carbon emission level, of seven to eight
tonnes per head in 2030. At present, its per capita GHG emissions are merely 1.7
tonnes.

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IASbabas View:

A voluntary commitment by US and China just before Climate Talk-Paris is seen as a


covert measure to avoid pressure or compulsory commitment by other nations.
Developed countries are blaming Developing countries for the consequences of
Climate Change that has direct relevance to their past wrong doings.
Developing and Least Developing countries are demanding compensation (Loss and
Damage) in the form of Funding and Technology Transfer.
Developed world is not in favour of any compulsory fund allotment neither Transfer
of Technology. They want developing countries to share the burden without any
demand, mostly favouring their economy.
There is a need to look on the greater picture of Climate Change catastrophe. All
these negotiations are more of political and economic dealings unlike Environmental
Concern.
The Paris Talk should not end up like KYOTO or COPENHAGUN. Blame Game will only
accelerate the issue and make it even worse.

Connecting the dots:

Do you think Paris Climate Talk will bring some solace to Environment. Comment
in the context of present situation.
Climate Change Negotiations have become political and economic business rather
than Environmental Concern. Do you agree?
The whole process of Carbon Emission Reduction in itself is flawed. Critically
Comment

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SCIENCE & TECHNOLOGY

Supercritical technology: An issue of ultra-supercritical importance

The
concept
of
supercritical
technology was introduced as a
national plan in the Integrated
Energy Policy report of 2006 issued
by the Planning Commission.
Ultra-supercritical technology is the
new paradigm that the Indian power
sector is aiming to touch.

What is this new generation technology?

Since coal is here to stay for a while, the ultra-super critical technology will help
green the process while making it more efficient.
It noted that the average fuel conversion efficiency of Indian power plants is just
about 30.5 per cent, though the new 500 MW plants have efficiency of 36 per cent.
State-of-the-art supercritical boilers can reach an efficiency level of 46 per cent
depending on plant location.
Under Indian conditions an efficiency level of 38-40 per cent should be attainable.
This alone can reduce coal requirement by 111 million tonnes.

How is Super Critical Technology Eco Friendly?

Ultra-supercritical technology uses steam with very high temperatures, up to 620C,


and pressure, up to 300 bar, resulting in a much higher efficiency than conventional
coal fired plants. A unit burns much less coal, thereby generating less emission per
megawatt of power output.
Power generation companies are likely to make this technological switch to drive up
output and plant load factor, curb variable costs and cut down discharge of
pollutants in the atmosphere.
Efficiency savings will not only reduce operating costs and make better use of fossil
fuels; they will reduce the overall liability for emissions.

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Will this provide a needed service to India?

This will provide a much-needed service to India, especially for farms and businesses.
Due to an energy deficit of nearly 160 gigawatts, 400 million Indians do not have
regular access to electricity.
To India's economic planners, thermal power is the only viable option to fulfill India's
energy demand.
What is within our capability is to minimize the carbon footprint of coal-fired plants.
This is wherethe more fuel-efficient ultra-supercritical technology can contribute.

IAS BABAs View

The union government had been taking a number of initiatives to promote the use of
super critical technology.
The government had taken initiative to make easy the manufacturing of component
used in the super critical units.
It is said that in the 13th five-year-plan, only super critical technology-based power
plants would be set up in India.

Connecting the Dots:

What is the status of Ultra super critical coal fired power plant technology in the 12 th
FYP?
Is thermal power is the only viable option to Indias economic planners to fulfill
India's energy demand?
How will it contribute in Mitigating Climate Change?

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DO YOU KNOW?

Swachh Bharat rankings

Mysuru tops the Swachh Bharat rankings among 476 cities in the country. Also three
more from Karnataka - Hassan, Mandya and Bengaluru have figured in the list of
'the best 10' in the country. West Bengal had 25 cities/towns in the first 100,
according to the survey.
The data was released by the Union Ministry of Urban Development (MoUD).
The MoUDs report was mainly based on the assessment of municipal areas for
minimal open defecation, effective solid waste management where the city awaits
major reforms in the last couple of years.

Nepal New Constitution

Nepal finally signed a breakthrough pact on the new Constitution on 8th August,
2015

Sundar Pichai

India-born Sundar Pichai was named CEO of Google on Tuesday by the company's
founders Larry Page and Sergei Brin in course of a re-organization that created a
mother company called Alphabet.

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