RBI’s Surplus Fund Transfer To GOI
RBI’s Surplus Fund Transfer To GOI Reserve Bank of India (RBI) decided to transfer Rs.1,76,051 crore to the Central Government after accepting recommendations of the Bimal Jalan Committee. The amount of Rs.1,76,051 crore includes the RBI Surplus money of Rs. 1,23,414 crore for the year 2018-19 and Rs. 52,637 crore of excess risk provision as per the revised Economic Capital Framework (ECF) suggested by the Committee. What is RBI Surplus? The RBI Surplus is the net income earned by the apex bank after deducting all the expenses. In the year 2018-19, the RBI Surplus stood at Rs 1,23,414 crore, which is now being transferred to the government. This income is known as Profit or Dividend incorporate language. The companies generally distribute the dividend or profit among the shareholders. However, RBI is not a company; its’ profits are considered as income itself. What is Excess Risk Provision? The excess risk provision of Rs.52,637 crore is the Contingency Fund maintained by the RBI. The Reserve Bank generally maintains the Contingency Fund at 6.8 per cent of the Balance Sheet. However, as per the Bimal Jalan Committee’s recommendations, this fund should fall within 5.5 to 6.5 per cent mark of the Balance Sheet. Hence, the RBI decided to maintain the Contingency Fund at 5.5 per cent and gave the excess provision to the Government of India. Major recommendations of the Committee with regard to risk provisioning and surplus distribution RBI’s economic capital: The Committee reviewed the status, need and justification of the various reserves, risk provisions and risk buffers maintained by the RBI and recommended their continuance. A clearer distinction between the two components of economic capital (realized equity and revaluation balances) was also recommended by the Committee as realized equity could be used for meeting all risks/ losses as they were primarily built up from retained earnings, while revaluation balances could be reckoned only as risk buffers against market risks as they represented unrealized valuation gains and hence were not distributable. Risk provisioning for market risk: The Committee has recommended the adoption of Expected Shortfall (ES) methodology under stressed conditions (in place of the extant Stressed-Value at Risk) for measuring the RBI’s market risk on which there was a growing consensus among central banks as well as commercial banks over the recent years. While central banks are seen to be adopting ES at 99 per cent confidence level (CL), the Committee has recommended the adoption of a target of ES 99.5 per cent CL keeping in view the macroeconomic stability requirements. In view of the cyclical volatility of the RBI’s revaluation balances, a downward risk tolerance limit (RTL) of 97.5 per cent CL has also been articulated. Both levels were stress-tested for their adequacy by the Committee. Size of Realized Equity: The Committee recognized that the RBI’s provisioning for monetary, financial and external stability risks is the country’s savings for a ‘rainy day’ (a monetary/ financial stability crisis) which has been consciously maintained with the RBI in view of its role as the Monetary Authority and the Lender of Last Resort. Realized equity is also required to cover credit risk and operational risk. This risk provisioning made primarily from retained earnings is cumulatively referred to as the Contingent Risk Buffer (CRB) and has been recommended to be maintained within a range of 6.5 per cent to 5.5 per cent of the RBI’s balance sheet, comprising 5.5 to 4.5 per cent for monetary and financial stability risks and 1.0 per cent for credit and operational risks. Surplus Distribution Policy: The Committee has recommended a surplus distribution policy which targets the level of realized equity to be maintained by the RBI, within the overall level of its economic capital vis-à-vis the earlier policy which targeted total economic capital level alone. Only if realized equity is above its requirement, will the entire net income be transferable to the Government? If it is below the lower bound of requirement, risk provisioning will be made to the extent necessary and only the residual net income (if any) transferred to the Government. Within the range of CRB, i.e., 6.5 to 5.5 percent of the balance sheet, the Central Board will decide on the level of risk provisioning. The RBI maintains four different Reserves which comprise of assets and earnings. These reserves are Contingency Fund –Reserve for tackling unexpected emergencies Asset Development Fund –Provides support to the RBI associates like National House of Banking Currency and Gold Revaluation Account –Gold Reserves and Foreign Exchange Assets Investment Revaluation Account –Fund available with the RBI to compensate losses and accommodate gains in foreign and domestic securities. Why RBI Surplus is transferred to the Central Government? Although RBI was promoted as a private shareholders’ bank in 1935 with a paid-up capital of Rs 5 crore, the government nationalised RBI in January 1949, making the sovereign its “owner”. What the central bank does, therefore, is transfer the “surplus” — that is, the excess of income over expenditure — to the government, in accordance with Section 47 (Allocation of Surplus Profits) of the Reserve Bank of India Act, 1934. Major concerns and Expert’s opinion: The transfer of money from RBI to Government has been going on for years. It is not the first time that the apex bank has transferred its surplus money to the Government of India. However, this time, the transfer has raised concerns over the amount being transferred to Government ( It’s quite big – Rs.1,76,051 crores). The subject experts opine that if this huge amount of money is used judiciously by the government for infrastructure development facilities and so, then it is productive rather than using it as a solution to the NPA’s and Deficit financing. 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Aadhaar
Aadhaar Aadhaar is once again in the news, with the Parliament passing an amendment bill as well the controversy on the government requiring people to link their social media accounts with Aadhaar. Aadhaar Act, 2016 The Aadhaar (Targeted Delivery of Financial and other Subsidies, benefits and services) Act, 2016 was enacted to provide statutory backing for transfer of subsidies and benefits to eligible people having Aadhaar (UID) number. It was passed as a money bill, notwithstanding that it did not meet the criteria stated in the constitution. Major Provisions Eligibility: Every resident shall be entitled to obtain an Aadhaar number. A resident is a person who has resided in India for 182 days, in the one year preceding the date of application for enrolment for Aadhaar. Information to be submitted: To obtain an Aadhaar number, an individual has to submit his, (i) biometric (photograph, fingerprint, iris scan) and (ii) demographic (name, date of birth, address) information. The Unique Identification Authority (UID) may specify other biometric and demographic information to be collected by regulations. Enrolment: At the time of enrolment, the individual will be informed of, (i) the manner in which the information will be used, (ii) the nature of recipients with whom the information will be shared, and (iii) the right to access this information. After verification of information provided by a person, an Aadhaar number will be issued to him. Use of Aadhaar number: To verify the identity of a person receiving a subsidy or a service, the government may require them to have an Aadhaar number. If a person does not have an Aadhaar number, the government will require them to apply for it, and in the meanwhile, provide an alternative means of identification. Any public or private entity can accept the Aadhaar number as a proof of identity of the Aadhaar number holder, for any purpose. Aadhaar number cannot be proof of citizenship or domicile. Functions and composition of authority: The key functions of the UID authority include, (i) specifying demographic and biometric information to be collected during enrolment, (ii) assigning Aadhaar numbers to individuals, (iii) authenticating Aadhaar numbers, and (iv) specifying the usage of Aadhaar numbers for delivery of subsidies and services. The UID authority will consist of a chairperson, two part-time members and a chief executive officer. The chairperson and members are required to have experience of at least ten years in matters such as technology, governance, etc. Authentication: The UID authority will authenticate the Aadhar number of an individual if an entity makes such a request. A requesting entity has to obtain the consent of an individual before collecting his information. The agency can use the disclosed information only for purposes for which the individual has given consent. Response to authentication query: The UID authority shall respond to an authentication query with a positive, negative or other appropriate response. However, it is not permitted to share an individual’s fingerprint, iris scan and other biological attributes. Authentication record maintained by UID authority: The UID authority shall record the entity requesting verification of a person’s identity, the time of request and the response received by the entity. The purpose for which an individual’s identity needs to be verified will not be maintained. Protection of information: Biometric information such as an individual’s fingerprint, iris scan and other biological attributes (specified by regulations) will be used only for Aadhaar enrolment and authentication, and for no other purpose. Such information will not be shared with anyone, nor will it be displayed publicly, except for purposes specified by regulations. Cases when information may be revealed: In two cases, information may be revealed: In the interest of national security, a Joint Secretary in the central government may issue a direction for revealing, (i) Aadhaar number, (ii) biometric information (iris scan, fingerprint and other biological attributes specified by regulations), (iii) demographic information, and (iv) photograph. Such a decision will be reviewed by an Oversight Committee (comprising Cabinet Secretary, Secretaries of Legal Affairs and Electronics and Information Technology) and will be valid for six months. On the order of a court, (i) an individual’s Aadhaar number, (ii) photograph, and (iii) demographic information, may be revealed. Offences and penalties: A person may be punished with imprisonment up to three years and a minimum fine of Rs 10 lakh for unauthorised access to the centralized database, including revealing any information stored in it. If a requesting entity and an enrolling agency fail to comply with rules, they shall be punished with imprisonment up to one year or a fine up to Rs 10,000 or Rs one lakh (in case of a company), or with both. Cognizance of offence: No court shall take cognizance of any offence except on a complaint made by the UID authority or a person authorised by it. Read Also Budget 2022-2023 The Aadhaar and Other Laws (Amendment) Bill, 2019 It was brought in to replace an ordinance promulgated earlier. Major provisions Offline verification of Aadhaar number holder: Under the Aadhaar Act, an individual’s identity may be verified by Aadhaar ‘authentication’. Authentication involves submitting the Aadhaar number, and their biometric or demographic information to the Central Identities Data Repository for verification. The Bill additionally allows ‘offline verification’ of an individual’s identity, without authentication, through modes specified by the Unique Identification Authority of India (UIDAI) by regulations. During offline verification, the agency must (i) obtain the consent of the individual, (ii) inform them of alternatives to sharing information, and (iii) not collect, use or store Aadhaar number or biometric information. Voluntary use: The Act provides for the use of Aadhaar number as proof of identity of a person, subject to authentication. The Bill replaces this provision to state that an individual may voluntarily use his Aadhaar number to establish his identity, by authentication or offline verification. The Bill states that authentication of an individual’s identity via Aadhaar, for the provision of any service, may be made mandatory only by a law of Parliament. Entities using Aadhaar: Under the Act, usage of Aadhaar number
Compensatory Afforestation Fund Management and Planning Authority (CAMPA)
Compensatory Afforestation Fund Management and Planning Authority (CAMPA) Recently in news Centre releases Rs.47,436 crores for afforestation to various states from CAMPA funds What is CAMPA? Supreme Court of India ordered for establishment of Compensatory Afforestation Fund and Compensatory Afforestation Fund Management and Planning Authority (CAMPA) in 2001.In 2006, ad-hoc CAMPA was established for the management of Compensatory afforestation fund. The Bill envisage Establishing the National Compensatory Afforestation Fund and a State Compensatory Afforestation Fund for each of the states. receiving funds (from user agency) in national level and state level Funds for compensatory afforestation, the net present value of the forest and other project-specific payments. Spending the monies thus collected primarily for afforestation to compensate for the loss of forest cover, regeneration of forest ecosystem, wildlife protection and infrastructure development. Establishing the national and state-level fund management authorities to manage respective Funds. Also, Read Presedient’s Rule Important features: The law establishes the National Compensatory Afforestation Fund under the Public Account of India and a State Compensatory Afforestation Fund under the Public Account of each state. These Funds will receive payments for:(i) compensatory afforestation, (ii) the net present value of forest (NPV), and (iii) other project specific payments. The National Fund will receive 10% of these funds, and the State Funds will receive the remaining 90%. According to the Act’s provision, a company diverting forest land must provide alternative land to take up compensatory afforestation. For afforestation, the company should pay to plant new trees in the alternative land provided to the state. Key Issues and Analysis: In 2002, the Supreme Court had observed that collected funds for afforestation were under-utilised by the states and it ordered for centrally pooling of funds under ad hoc Compensatory Afforestation Fund. The law says that land selected for afforestation should preferably be contiguous to the forest being diverted so that it is easier for forest officials to manage it. But if no suitable non-forest land is found, degraded forests can be chosen for afforestation. In several states like Chattisgarh, Odisha and Jharkhand where the intensity of mining is very high, to find the non-forest land for afforestation to compensate the loss of forest is a big task. The utilisation of CAMPA fund: Several state governments are not utilising it properly. An amount of Rs.86 lakh from CAMPA funds meant for afforestation was reportedly spent on litigation work in Punjab. Moreover, at several places, the loss of natural species is compensated with plantation of non-native species in the name of the artificial plantation. It serves as a threat to even the existing ecosystem. A 2013 CAG report noted that state forest departments lack the planning and implementation capacity to carry out compensatory afforestation and forest conservation. With the share of funds transferred to states increasing from 10% to 90%, effective utilisation of these funds will depend on the capacity of state forest departments. Procuring land for compensatory afforestation is difficult as land is a limited resource, and is required for multiple purposes, such as agriculture, industry, etc. This is compounded by unclear land titles, and difficulties in complying with procedures for land use. A High-Level Committee on Environment Laws observed that quality of forest cover has declined between 1951 and 2014, with poor quality of compensatory afforestation plantations being one of the reasons behind the decline. The Bill delegates the determination of NPV (value of loss of forest ecosystem) to an expert committee constituted by the central government. As NPV constitutes about half of the total funds collected, its computation methodology would be important. Way ahead The proposed objective of the Act must be fulfilled by utilising the CAMPA funds only for the purpose it is meant for. It should efficiently be used only for afforestation and wildlife conservation activities. A closer look at the state government activities using CAMPA funding is needed. The central government should adopt the concept of outcome budgeting for allocation of funds to the state government in which funding will be done on an instalment basis by checking the outcome of previous funds. State governments should restore the existing forests rather than creating new ones. Also, Read Environmental Impact Assessment Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Pre-historic India And The Harappan Culture
Pre-historic India And The Harappan Culture There are no written records are available for the prehistoric period. However, plenty of archaeological remains are found in different parts of India to reconstruct the history of this period. In India, the prehistoric period is divided into the Palaeolithic (Old Stone Age), Mesolithic (Middle Stone Age), Neolithic (New Stone Age) and the Metal Age. Paleolithic or Old Stone Age found in various parts of the Indian subcontinent. located near water sources. rock shelters and caves also lived rarely in huts made of leaves famous sites of Old Stone Age The Soan valley and Potwar Plateau on northwest India. The Siwalik hills on north India Bhimpetka in Madhya Pradesh. Adamgarh hill in Narmada valley Kurnool in Andhra Pradesh and Attirampakkam near Chennai food was obtained by hunting animals and gathering edible plants and tubers.–hunter-gatherers used stone tools, hand-sized and flaked-off large pebbles for hunting animals Stone implements are made of a hard rock known as quartzite A few Old Stone Age paintings found on rocks at Bhimbetka and other places. Mesolithic or Middle Stone Age Mesolithic remains are found in Langhanj in Gujarat, Adamgarh in Madhya Pradesh and also in some places of Rajasthan, Utter Pradesh and Bihar paintings and engravings found at the rock shelters give an idea about the social life and economic activities of Mesolithic people. sites of Mesolithic Age, a different type of stone tools is found. These are tiny stone artefacts, often not more than five centimetres in size, and therefore called microliths a shift from big animal hunting to small animal hunting and fishing. use of bow and arrow also began during this period a tendency to settle for longer periods in an area domestication of animals, horticulture and primitive cultivation started Animal bones are found in these sites and these include dog, deer, boar and ostrich. Occasionally, burials of the dead along with some microliths and shells seem to have been practised. Neolithic Age 6000 B.C to 4000 B.C. found in various parts of India. These include the Kashmir valley, Chirand in Bihar, Belan valley inUttar Pradesh and in several places of the Deccan The important Neolithic sites excavated in south India are Maski, Brahmagiri, Hallur and Kodekal in Karnataka, Paiyampalli in Tamil Nadu and Utnur in Andhra Pradesh characteristic features practice of agriculture domestication of animal polishing of stone tools manufacture of pottery Mudbrick houses were built instead of grass huts. Wheels were used to make pottery. cultivation of plants and domestication of animals led to the emergence of village communities based on sedentary life. Pottery was used for cooking as well as storage of food grains Large urns were used as coffins for the burial of the dead There was also improvement in agriculture. Wheat, barley, rice, millet were cultivated in different areas at different points of time. Rice cultivation was extensive in eastern India. Domestication of sheep, goats and cattle Cattle were used for cultivation and for transport The people of the Neolithic Age used clothes made of cotton and wool Read Also Imperial Cholas Metal Age Neolithic period is followed by the Chalcolithic (copper-stone) period when copper and bronze came to be used. the technology of smelting metal ore and crafting metal artefacts But the use of stone tools was not given up micro-lithic tools continued to be essential items. People began to travel for a long distance to obtain metal ores This led to a network of Chalcolithic cultures Generally, Chalcolithic cultures had grown in river valleys. the Harappan culture is considered as a part of Chalcolithic culture In South India the river valleys of the Godavari, Krishna, Tungabhadra, Pennar and Kaveri were settled by farming communities during this period. Several bronze and copper objects, beads, terracotta figurines and pottery were found at Paiyampalli in Tamil Nadu. Chalcolithic age is followed by Iron Age Iron is frequently referred to in the Vedas. Iron Age of the southern peninsula is often related to Megalithic Burials burial pits were covered with these stones Such graves are extensively found in South India. Some of the important megalithic sites are Hallur and Maski in Karnataka, Nagarjunakonda in Andhra Pradesh and Adichchanallur in Tamil Nadu Black and red pottery, iron artefacts such as hoes and sickles and small weapons were found in the burial pits HARAPPAN CULTURE Important Sites Kot Diji in Sind, Kalibangan in Rajasthan, Rupar in the Punjab, Banawali in Haryana, Lothal, Surkotada and Dholavira, all the three in Gujarat Mohenjodara is the largest of all the Indus cities and it is estimated to have spread over an area of 200 hectares Origin and Evolution four important stages or phases of evolution pre-Harappan, early-Harappan, mature-Harappan and late Harappan. the pre-Harappan stage is located in eastern Baluchistan In this stage, the nomadic people began to lead a settled agricultural life early-Harappan stage, the people lived in large villages in the plains. gradual growth of towns in the Indus valley. the transition from rural to urban life sites of Amri and Kot Diji remain the evidence for early-Harappan stage mature-Harappan stage, great cities emerged excavations at Kalibangan with its elaborate town planning and urban features prove this phase of evolution. late-Harappan stage, the decline of the Indus culture started excavations at Lothal reveal this stage of evolution. It was surrounded by a massive brick wall as flood protection. Lothal remained an emporium of trade between the Harappan civilization and the remaining part of India as well as Mesopotamia. Salient Features of the Harappan Culture Town Planning grid system – that is streets and lanes cutting across one another almost at right angles thus dividing the city into several rectangular blocks Harappa, Mohenjodaro and Kalibangan each had its own citadel built on a high podium of mud brick Below the citadel in each city lay a lower town containing brick houses, which were inhabited by the common people. large-scale use of burnt bricks in almost all kinds of constructions and the absence of stone buildings are the important characteristics of
Shanta Kumar Committee Recommendations
Shanta Kumar Committee Recommendations Background Government of India (GOI) set up a High-Level Committee (HLC) in August 2014 with ShantaKumar as the Chairman, six members and a special invitee to suggest restructuring or unbundling of FCI with a view to improving its operational efficiency and financial management. Government Of India also asked HLC to suggest measures for overall improvement in the management of food grains by FCI to suggest reorienting the role and functions of FCI in MSP operations, storage and distribution of food grains and food security systems of the country; and to suggest cost-effective models for storage and movement of grains and integration of supply chain of food grains in the country. The Committee had wide consultations with several Chief Ministers, Food Secretaries and other stakeholders in various States. Suggestions from the public were invited through various newspapers also. The committee submitted its report in January 2015. Recently in the news because The Union Minister of Consumer Affairs, Food and Public Distribution stated that primacy will be given to ensuring the functioning of FCI and it is streamlined and fast-paced as per recommendations of the Shanta Kumar Committee. Shanta Kumar Committee Major recommendations On procurement-related issues HLC recommends that FCI hand over all procurement operations of wheat, paddy and rice to states that have gained sufficient experience in this regard and have created a reasonable infrastructure for procurement. These states are Andhra Pradesh, Chhattisgarh, Haryana, Madhya Pradesh, Odisha and Punjab (in alphabetical order). FCI will accept only the surplus (after deducting the needs of the states under NFSA) from these state governments (not millers) to be moved to deficit states. Read Also Right To Information On stocking and movement-related issues HLC recommends that FCI should outsource its stocking operations to various agencies such as Central Warehousing Corporation, State Warehousing Corporation, Private Sector under Private Entrepreneur Guarantee (PEG) scheme, and even state governments that are building silos through a private sector on state lands (as in Madhya Pradesh). It should be done on a competitive bidding basis, inviting various stakeholders and creating competition to bring down costs of storage. India needs more bulk handling facilities than it currently has On Buffer Stocking Operations and Liquidation Policy One of the key challenges for FCI has been to carry buffer stocks way in excess of buffer stocking norms. The underlying reasons for this situation are many, starting with export bans to open-ended procurement with distortions (through bonuses and high statutory levies), but the key factor is that there is no pro-active liquidation policy. The current system is extremely ad-hoc, slow and costs the nation heavily. A transparent liquidation policy is the need of the hour, which should automatically kick-in when FCI is faced with surplus stocks than buffer norms. Greater flexibility to FCI with business orientation to operate in OMSS and export markets is needed. On Labour Related Issues FCI engages a large number of workers (loaders) to get the job of loading/unloading done smoothly and in time. HLC recommends that the condition of contract labour, which works the hardest and is the largest in number, should be improved by giving them better facilities. On PDS and NFSA related issues Restructuring the National Food Security Act (NFSA) by virtually diluting its scope and coverage from 67 percent of the population to about 40 percent population. In order to curtail leakages in PDS Government should differ implementation of NFSA in states that have not done end to end computerization. On end to end computerization HLC recommends a total end to end computerization of the entire food management system, starting from procurement from farmers, to stocking, movement and finally distribution through TPDS. It can be done on a real-time basis, and some states have done a commendable job on computerizing the procurement operations. Enroll today with the best civils service academy and take your first step towards yours Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Paris Climate Agreement
Paris Climate Agreement Recently in news In the run-up to two key UN summits on Climate Change, India has raised the pitch for finance and technology support to develop nations to achieve the Paris Agreement goals of keeping a global average temperature rise this century well below 2 degrees Celsius. Paris agreement? The 21st session of the Conference of the Parties (COP21) of the United Nations Framework Convention on Climate Change (UNFCCC) was held in Paris from November 30 to December 12, 2015, that saw the participation of 195 nations. The nations negotiated and adopted the Paris Agreement. The outcome of the Paris conference? Even if all the commitments made by countries for the Paris Agreement are achieved, the world will still be on a course to warm by more than 3°C this century.so, The Nationally Determined Contributions (NDCs) was planned ahead of the Paris COP-21. Under this, each country described the actions it would take and the levels to which GHG emissions would be reduced (mitigation). Countries also described what they would do to improve their capacity to live in a warmer world (adaptation). The extent to which these goals required support in the form of finance or technology transfer was also mentioned. The Paris Agreement (PA) was ratified rapidly and went into force within a year (in November 2016). The Katowice meeting’s objective is to set guidelines, or agree on a rulebook, to implement pledges made by countries at the Paris Climate Conference in 2015. Major concerns Finance – There has been little if any, progress on finance, technology transfer and capacity development. Article 9 of the PA calls for financial support from developed countries that is significantly derived from public funds. This was expected to result in at least $100 billion per year to address mitigation and adaptation needs of developing countries. Article 9.5 requires developed countries to communicate their levels of support, including pledges of additional finance. Even a rough estimate of financial needs for implementing all the NDCs puts it at $4.4 trillion. But the Climate Funds Update of 2018 notes that multilateral funds pledged until 2017 are less than $30 billion. There have also been charges of double counting and counting of development aid levelled against developed countries. Response – While the U.S. and its current policies are much to blame for the situation, other developed countries are not doing that much better. Australia and France have had political turmoil due to their climate policies even while experiencing severe weather events. Europe is still heavily reliant on coal and European Union emissions were stable in 2014-2016. The U.K. has been relying on fuel from fracking. Also, Read Terrorism Financing How does the future look? The implementation of the activities for the PA formally begins in 2020 and concludes in 2030. The world is currently in the Doha Amendment period, or the second phase of the Kyoto Protocol, which has not been ratified. In a couple of years after the start of the PA implementation, there will be a review on progress and decisions on more stringent targets for the future. This renewed commitment towards the future means that countries have to trust each other. So fulfilling obligation is a foundation of future ambition and action. India and Paris agreement India had ratified the Paris Agreement on India made four commitments, including: Reducing greenhouse gas emission intensity of its GDP by 33-35 per cent below 2005 levels by 2030, under its Nationally Determined Contributions (NDC). Pledged that 40 per cent of India’s power capacity would be based on non-fossil fuel sources and that the country will create an additional ‘carbon sink’ of 2.5 to 3 billion tonnes of carbon dioxide equivalent through additional forest and tree cover by 2030. The country had decided to better adapt to climate change by enhancing investments in development programmes in sectors vulnerable to climate change, particularly agriculture, water resources, Himalayan region, coastal regions, health and disaster management. India had ratified the Paris agreement on climate change in 2016 to become the 62nd nation to join the deal. Way Ahead What is required for India is credible, accurate and verifiable numbers on the climate flows expected from developed countries. Such a reliable flow will encourage and persuade all countries that commitments made will be fulfilled. There also has to be a general agreement on how to estimate adaptation. Countries with high emissions should alter their lifestyles considerably, for the transformational change that 1.5 Degree Report calls for. As extreme events are on the rise, the separate stream referred to as “loss and damage” needs attention. This is a provision for support to poor countries experiencing economic and non-economic losses and destruction from climate change events. In advance of the 2020 deadline for countries to raise their commitments in their national climate plans, the focus is given to practical initiatives to limit emissions and build climate resilience. Especially the driving action in six areas; namely, energy transition, climate finance and carbon pricing, industry transition, nature-based solutions, cities and local action, and resilience. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. Join Now
New Industrial Policy -2018
New Industrial Policy -2018 The New Industrial Policy ( National Industrial Policy ) aims to create jobs over the next two decades, promote foreign technology transfer and attract $100 billion FDI annually. Aim of New Industrial Policy -2018 It subsumes the National Manufacturing Policy. It primarily aims at making India a manufacturing hub. The Department of Industrial Policy and Promotion, the nodal body for the new Policy, has floated a discussion paper inviting feedback. Focus groups, with members from government departments, industry associations, academia, and think tanks have been set up to look into the challenges faced by the industry. Six thematic focus groups include manufacturing and MSME, technology and innovation, ease of doing business, infrastructure, investment, trade and fiscal policy, skills and employability. Besides, a Task Force on Artificial Intelligence for India’s economic transformation has also been constituted to provide inputs for the policy. Objectives It is time to shift from a policy of continuity to radical and accelerated reforms for greater strategic engagement with the world, i.e., it is time to Reform, Perform and Transform. A comprehensive, actionable, outcome-oriented industrial policy will enable Industry to deliver a larger role in the economy; to fulfil its role as the engine of growth and to shoulder the responsibility of adding more value and jobs. Major concerns Inadequate infrastructure: Rapid growth of the economy has put further stress on infrastructure. Lack of quality industrial infrastructure has resulted in high logistics cost and has in turn affected cost competitiveness of Indian goods in global markets. Restrictive labour laws: The labour laws have been overly protective of the labour force in the formal sector. Though labour protection and security are required, the flipside is that it discourages employers from hiring workers on a regular basis. It has probably also led to entrepreneurs choosing to stay away from labour-intensive sectors. Complicated business environment: Complex and time taking business processes and clearances have been a disincentive for businesses. Slow technology adoption: Indian industry has been a slow adopter of new and advanced technologies. Inefficient technologies led to low productivity and higher costs adding to the disadvantage of Indian products in international markets. Low productivity: Workers in India are overwhelmingly employed in low productivity and low wage activities. Productivity as measured by the value-added per worker and average wages in manufacturing in India is only one-third of that in China. Challenges for trade: Manufacturing sector especially exporters are facing challenges of stagnant/shrinking global demand and rising protectionist tendencies around the world. Indian MSME sector is particularly facing tough competition from cheap imports from China and FTA countries. Inadequate expenditure on R&D and Innovation: Investments in these areas is essential to ensure growth in the industry. Public investments have been constrained and private investment is not forthcoming as these involve long gestation periods and uncertain returns. Read Also Environment Impact Assessment Policy proposals It proposes to incorporate a range of measures for the following: Facilitating the use of smart technologies such as the internet of things (IoT), artificial intelligence (AI) and robotics for advanced manufacturing. Increasing the number of global Indian firms helping attract inward FDI and supporting outward FDI to assert Indian presence in world markets. Addressing the problem of low job creation in the formal sector. Enhancing industrial competitiveness Developing alternatives to banks and improving access to capital for MSMEs through options like the peer to peer lending and crowdfunding. Providing a credit rating mechanism for MSMEs. Addressing the problems with duty structure and also balancing it against obligations under multilateral or bilateral trade agreements. Studying the impact of automation on jobs and employment. Ensuring minimal/zero waste from industrial activities and targeting certain sectors to radically cut emissions. Reviewing the FDI policy to ensure that it facilitates greater technology transfer, leverages strategic linkages and innovation. Read Also Post Mauryan Era
UPSC Mains 2019 Questions- Essay
UPSC Mains 2019 Questions- Essay Section- A 1. Wisdom Finds truth 2. value, are not what humanity is, but what humanity ought to be 3. Best for an individual is not necessarily, but best for society 4. Courage to accept and dedication to improve are two keys to success Section- B 5. South Asian societies are woven not around the State, but around their cultures and plural identities 6. Neglect of primary health care and education in India are reasons for backwardness 7. Biased media is a real threat to Indian democracy 8. Rise of Artificial Intelligence: the threat of jobless future or better job opportunity through reskilling and upskilling. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. Join Now
Lokpal and Lokayukta
Lokpal and Lokayukta After an unjustified delay of five years, finally, Justice PC Ghose was appointed as the first Lokpal. It is a milestone in fighting corruption in high places. The concept of an institutional mechanism, or an anti-corruption ombudsman, has been around for over 50 years. It was finally enacted as a law in 2013 and came into effect on January 16, 2014. What are Lokpal and Lokayukta? Lokpal and Lokayukta are India’s anti-corruption ombudsman at centre and state levels respectively, to look into corruption charges against certain categories of public servants. They are not constitutional bodies but derive their powers from the statute enacted in 2013 – the Lokpal and Lokayuktas Act. Lokpal and Lokayuktas Act, 2013 provides for the appointment of a Lokpal at the Centre and Lokayuktas in States, its structure, jurisdiction and powers. The Lokpal act also called upon states to appoint a Lokayukta within a year of it’s coming into force. Though first proposed by the then law minister Ashok Kumar Sen, the terms Lokpal and Lokayukta were coined by Dr L. M. Singhvi. In 1966, the First Administrative Reforms Commission recommended the setting up of two independent authorities- at the central and state level. Lokpal bill was passed in Lok Sabha in 1968 but it lapsed with its dissolution. Several attempts were made since then to pass the bill. Later, the Commission to Review the Working of the Constitution and the Second Administrative Reforms Commission also recommended its establishment. The United Progressive Alliance (UPA) government was successful in getting the Lokpal and Lokayuktas Bill, 2013, passed in both the Houses of Parliament after being pressured by the “India Against Corruption movement” led by Anna Hazare. About Lokpal Lokpal consists of one chairperson and a maximum of 8 members. Chairperson of the Lokpal should be either the former Chief Justice of India or the former Judge of the Supreme Court or an eminent person with impeccable integrity and outstanding ability, having special knowledge and expertise of minimum 25 years in the matters relating to anti-corruption policy, public administration, vigilance, finance including insurance and banking, law and management. Half of the members should be judicial members (former Judges of the Supreme Court or a former Chief Justice of the High Court) and 50% of the members should be from SC/ ST/ OBC/ Minorities and women. The non-judicial member should be an eminent person with impeccable integrity and outstanding ability, having special knowledge and expertise of minimum 25 years in the matters relating to anti-corruption policy, public administration, vigilance, finance including insurance and banking, law and management. Term of Office The term of office for Lokpal Chairman and Members is 5 years or till the age of 70 years. Appointment The members are appointed by the president on the recommendation of a Selection Committee. Selection Committee The selection committee is composed of the Prime Minister who is the Chairperson; Speaker of Lok Sabha, Leader of Opposition in Lok Sabha, Chief Justice of India or a Judge nominated by him/her and One eminent jurist For selecting the chairperson and the members, the selection committee constitutes a search panel of at least eight persons. Lokpal Search Committee would shortlist the names prepared by the DoPT and place then before the Selection panel who may or may not pick names suggested. Read Also Hate Speech Conditions of Office The Salary allowances and other conditions of service of the chairperson and members are equivalent to that of Chief Justice of India and Judge of the supreme court respectively. They are not eligible for reappointment, cannot hold any constitutional or governmental office. They cannot contest any elections for a period of 5 years. Jurisdiction of Lokpal It includes the Prime Minister, except on allegations of corruption relating to international relations, security, public order, atomic energy and space. In such a case, a full bench of the Lokpal considers initiation of a probe with the approval of two-thirds of the members. Such a hearing should be held in camera, and if the complaint is dismissed, the records shall not be published or made available to anyone. Ministers and members of Parliament, except matters of anything, said in Parliament or a vote has given there Groups A, B, C and D officers Officials of Central Government It also includes any person who is or has been in charge (director/ manager/ secretary) of anybody/ society set up by central act or any other body financed/ controlled by the central government and any other person involved in an act of abetting, bribe giving or bribe-taking. Powers of Lokpal It has Superindence over the Central Bureau of Investigation and can give directions to it. If a case is referred to CBI by Lokpal, the investigating officer in such a case cannot be transferred without the approval of Lokpal. Lokpal will have an Inquiry Wing and Prosecution Wing. The Inquiry Wing has the powers of a Civil Court. It can confiscate assets, proceeds, receipts and benefits arisen or procured by means of corruption in special circumstances. It can transfer or suspend public servants connected with allegations of corruption. It has the power to give directions to prevent the destruction of records during the preliminary inquiry. Functioning A complaint can be made to the Lokpal for an offence under the Prevention of Corruption Act. The Lokpal may order a preliminary inquiry by its Inquiry Wing or refer it any investigation agency like CBI. However, the Lokpal should establish that a prima facie case exists after seeking an explanation from the public servant as well as his competent authority. With respect to Central Government Servants, it may refer cases to the Central Vigilance Commission. Preliminary Enquiry report should be done within 60 days. A Lokpal bench of not less than 3 members considers it and after giving an opportunity to the public servant, decides on a further investigation – it may dismiss, initiate a full investigation or start departmental proceedings. The preliminary investigation should be normally completed within 90
UPSC Mains 2019 Questions- General Studies Paper 1 (GS 1)
Instructions Total Marks: 250. Time duration: 3 hours. There are 20 questions printed both in ENGLISH and HINDI. All questions are compulsory. The number of marks carried by a question/part is printed against it. Answers must be written in the medium authorized in the admission certificate which must be stated clearly on the cover of this question-cum-answer (QCA) booklet in the space provided. No marks will be given for answers written in the medium other than authorized one. Answers to questions no. 1 to 10 should be in 150 words, whereas answers to questions no. 11 to 20 should be in 250 words. Keep the word limit indicated in the questions in mind. Any page or portion of the page left blank, must be struck off clearly. Join Integrated Prelims Cum Mains Test Series 2022 Questions Q1. Highlight the Central Asian and Greco-Bactrian elements in the Gandhara art (Answer in 150 words) Q2. The 1857 Uprising was the culmination of the recurrent big and small local rebellions that had occurred in the preceding hundred years of British rule. Elucidate. (Answer in 150 words) Q3. Examine the linkages between the nineteenth century’s ‘Indian Renaissance’ and the emergence of national identity. (Answer in 150 words) Q4. Assess the impact of global warming on the coral life system with examples. (Answer in 150 words) Q5. Discuss the causes of depletion of mangroves and explain their importance in maintaining coastal ecology. (Answer in 150 words) Q6. Can the strategy of regional resource-based manufacturing help in promoting employment in India? (Answer in 150 words) Q7. Discuss the factors for localisation of agro-based food processing industries of Northwest India (Answer in 150 words) Q8. What makes Indian society unique in sustaining its culture? Discuss. (Answer in 150 words) UPSC Mains 2019 Questions General Studies Paper 2 UPSC Mains 2019 Questions General Studies Paper 3 UPSC Mains 2019 Questions General Studies Paper 4 Q9. “Empowering women is the key to control population growth.” Discuss. (Answer in 150 words) Q10. What are the challenges to our cultural practices in the name of secularism? (Answer in 150 words) Q11. Many voices had strengthened and enriched the nationalist movement during the Gandhian phase. Elaborate. (Answer in 250 words) Q12. Assess the role of British imperial power in complicating the process of transfer of power during the 1940s. (Answer in 250 words) Q13. Explain how the foundations of the modem world were laid by the American and French Revolutions. (Answer in 250 words) Q14. What is water stress? How and why does it differ regionally in India? (Answer in 250 words) Q15. How can the mountain ecosystem be restored from the negative import of development initiatives and tourism? (Answer in 250 words) Q16. How is efficient and affordable urban mass transport key to the rapid economic development of India?(Answer in 250 words) Q17. How do ocean currents and water masses differ in their impacts on marine life and the coastal environment ? Give suitable examples (Answer in 250 words) Q18. Do we have cultural pockets of small India all over the nation? Elaborate with examples. (Answer in 250 words) Q19. What are the continued challenges for women in India against limo and space? (Answer in 250 words) Q20. Are we losing our local identity for the global identity? Discuss. (Answer in 250 words) Try Prelims 2022 Daily FREE Tests
