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  • Panchayati Raj Institutions: Issues and Challenges

    Opportunity to strengthen the 73rd and 74th amendment

    op-ed snap | Polity | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters,Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    The article brings to the fore untapped potential held by the panchayats and municipalities. However, there is a need for devolution in letter and spirit by the states to tap this potential. The article explains how the panchayats and municipalities could contribute effectively in the fight against Covid-19.

    Cooperative federalism amid COVID-19

    • An unintended but welcome consequence of the struggle against COVID-19 is that the “confrontational federalism” is on the decline with the revival of “cooperative federalism”.
    • There is a realisation that there is no way the COVID-19 situation can be tackled except through a measure of cooperation between the Centre and the states.
    • Consultative process: The Centre is offering flexibility to states to adopt guidelines to their respective circumstances and states are accepting guidelines from the Centre.
    • A principal reason for Kerala’s amazing performance in “flattening the curve” is their robust system of effective devolution. Such devolution helped the Kudumbashree programme to function in association with the panchayats.

    The concept of 3 tier devolution: Centre-State-Panchayats

    • Article 243G provides that state legislatures “may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government”. 
    • This means state governments cannot and must not treat panchayats as extensions of the state government but as “institutions of (local) self-government”.
    • The logic of “cooperative federalism” is that states must function not as implementation arms of the central government but as autonomous units within the federation.
    • By the same logic panchayats too must be conceived not as an extension of state governments but as “units of self-government”. 
    • It is thus that panchayats need to be brought into the three-tier devolution system envisaged in the Constitution: Centre-State-Panchayats (and municipalities).

    How could devolution help in the fight against Covid-19?

    • In line with the rising cooperation between the Centre and the states, the focus should be on further devolution in keeping with the constitutional obligations under the 73rd and 74th amendments.
    • The starting point could best be Entry 23 of the Eleventh Schedule that reads, “Health, sanitation, including hospitals, primary health centres and dispensaries”
    • Entry 23 is among the list of 29 subjects illustratively set out for devolution to the panchayats, subject to conformity legislation being enacted by state legislatures.
    • All state legislation has included this subject for devolution.
    • Therefore, empowering the panchayats in this regard with functions, finances and functionaries is now a statutory obligation under state law under Article 243G.
    • With the migrant workers returning to their native villages, it is important to fully involve village panchayats and municipalities as “institutions of self-government” – 243W in the anti-COVID-19 campaign.
    • Entry 28 of the Eleventh Schedule mentions the “public distribution system” as among the subjects for devolution.
    • There are many other entries in the Schedule that are relevant to this exercise.
    • There is an army of 32 lakh elected representatives in the panchayats and about two lakh more in the municipalities to contribute in the fight against Covid-19.
    • Well over a third of them, some 10-12 lakh, are drawn from the Scheduled Castes and Tribes and, therefore, in touch with the most destitute in every village and town.
    • There are some 14 lakh women who have established themselves by election as village leaders. 
    • Imagine a constructive role such women can play as “front-line workers” in the battle against the coronavirus.
    • The most important requirement is planning to receive the migrant labour influx.
    • Last-mile delivery can only be comprehensively ensured by empowered panchayats and municipalities reporting to their respective gram sabhas and ward sabhas mandated under Articles 243 A and 243 S.
    • Planning for withstanding the ingress of COVID-19 requires the full deployment of the mechanisms for district planning envisaged in Article 243 ZD.

    Consider the question asked by the UPSC in 2018-“Assess the importance of the Panchayat system in India as a part of local government. Apart from government grants, what sources the Panchayat can look out for financing developmental projects?”

    Conclusion

    As the cooperative federalism underlines India’s fight against Covid-19, devolution to the third tier –panchayats and municipalities would give a much needed fillip to the fight against Covid-19.

    Back2Basics: 73rd and 74th Amendments

    • 73rd and 74th Constitutional Amendments were passed by Parliament in December, 1992.
    • Through these amendments local self-governance was introduced in rural and urban India.
    • The Acts came into force as the Constitution (73rd Amendment) Act, 1992 on April 24, 1993 and the Constitution (74th Amendment) Act, 1992 on June 1, 1993.
    • These amendments added two new parts to the Constitution, namely, 73rd Amendment added Part IX titled “The Panchayats” and 74th Amendment added Part IXA titled “The Municipalities”.
    • The Local bodies–‘Panchayats’ and ‘Municipalities’ came under Part IX and IXA of the Constitution after 43 years of India becoming a republic.

    Salient Features

    • Basic units of democratic system-Gram Sabhas (villages) and Ward Committees (Municipalities) comprising all the adult members registered as voters.
    • Three-tier system of panchayats at village, intermediate block/taluk/mandal and district levels except in States with population is below 20 lakhs (Article 243B).
    • Seats at all levels to be filled by direct elections [Article 243C (2)].
    • Seats reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) and chairpersons of the Panchayats at all levels also shall be reserved for SCs and STs in proportion to their population.
    • One-third of the total number of seats to be reserved for women. Onethird of the seats reserved for SCs and STs also reserved for women. One-third offices of chairpersons at all levels reserved for women (Article 243D)
    • Uniform five year term and elections to constitute new bodies to be completed before the expiry of the term. In the event of dissolution, elections compulsorily within six months (Article 243E).

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  • Biofuel Policy

    The evergreen debate of Food versus Fuel

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    The article discusses the recent decision of the government to make alcohol from rice. The move was bound to trigger the debate over food security of the country with a population ravaged by hunger and poverty. While the 2009 biofuel policy had stressed the use of non-food resources, the 2018 updated policy allowed using excess grains. We all want to make a shift towards a green economy but is this the right time? Let’s find out.

    What decisions did the government take?

    • The National Biofuel Coordination Committee (NBCC) chaired by the Union Minister of Petroleum and Natural Gas decided to use “surplus” rice available with the Food Corporation of India (FCI) for conversion to ethanol.
    • The objective is to make alcohol-based hand-sanitisers and for the blending of ethanol with petrol. 
    • This decision is not only audacious but also an affront to the millions of people who are deeply affected by food insecurity.

    The food question

    • In 2009, the National Policy on Biofuels stressed on the use of non-food resources to avoid a possible conflict between food and fuel.

    • Take the US’s example: In 2018-19, an astounding 37.6 per cent of the corn produced in the US is used for making ethanol.

    • In addition to cereals, oilseed crops like rapeseed, soybean and sunflower were used for biofuel production.
    • Rise in food prices: Such diversion of food crops to produce biofuel was considered one of the reasons for the rise in food prices globally.

    What should be India’s strategy in this debate?

    • There is rampant poverty, hunger, and malnutrition in India.
    • India’s position in the Global Hunger Index has slipped nine places, ranking 102 among the 117 countries in 2019.
    • The National Family Health Survey (NFHS-4) 2015-16, found that 38.4 per cent of children under five years are “stunted” (height for age) and 21 per cent are “wasted” (low weight for height).
    • In fact, over a period of 10 years, wasting has increased from 19.8 per cent in NFHS-3 to 21 per cent in NFHS-4.

    The dictums of 2018 Policy

    • The 2018 National Policy on Biofuels had a target of 20 per cent blending of ethanol in petrol and 5 per cent blending of biodiesel in diesel by 2030.
    • This was to be achieved by increasing production using second-generation bio-refineries and developing new feedstock for biofuels.
    • It allowed the production of ethanol from damaged food grains like wheat and broken rice, which are unfit for human consumption.
    • The new policy allowed the use of excess food grain for ethanol in a bounty crop year, if endorsed by the Union Ministry of Agriculture.

    Possible dangers

    • The quantity of rice from which ethanol will be produced has not been announced, nor do we know the price at which such rice will be sold by the FCI.
    • About 85 per cent of rice is Kharif crop, heavily dependent on monsoon.
    • Despite the prediction of a normal monsoon, What happens if the monsoon predictions go wrong? Will we be able to import grain?
    • Less damaged grains: Despite the commonly held belief of a lakh of tonnes of rotting grains, the FCI’s storage practices are actually quite good.
    • Damaged grains as a percentage of total quantity issued by the FCI has been just about 0.01 per cent to 0.04 per cent in the last five years.
    • Hardly any ethanol can be made from such a small amount of damaged grains.
    • Making ethanol from sound quality grains deprives food to humans as well as livestock.
    • At the time when uncertainties are looming large, it is imperative that food security and food price stability be given the highest priority.

    Way forward

    • Ethanol can be produced from other ingredients such as B and C heavy molasses, sugar, sugar syrup, and sugarcane juice.
    • Ethanol has also been blessed with a low GST and enjoys relaxed conditions for inter-state movement if used for blending with petrol.
    • Since the economy faces a bleak prospect due to the impact of COVID-19, the government should first use the food grains to meet the requirement of about 10 to 20 crore people without ration cards.

    The UPSC could ask a question on the following lines “Diverting food grains for making fuels has always been a contentious issue from the food security angle. At the same time reducing India’s dependence on import for fuels is as much a serious concern. The National Policy on Biofuels-2018 sought to strike the balance between the two. Critically analyse the various provisions of National Policy on Biofuels-2018 which were different from 2009 policy.”

    Conclusion

    The government must ensure the food safety of the country first and if it still has surplus rice, it must facilitate export to friendly countries which are suffering an adverse impact of COVID-19 on their economies.

    Back2Basics: Generations of biofuels

    • There are three types of biofuels: 1st, 2nd and 3rd generation biofuels.
    • They are characterized by their sources of biomass, their limitations as a renewable source of energy, and their technological progress.
    • The main drawback of 1st generation biofuels is that they come from biomass that is also a food source.
    • This presents a problem when there is not enough food to feed everyone.
    • 2nd generation biofuels come from non-food biomass, but still compete with food production for land use.
    • Finally, 3rd generation biofuels present the best possibility for alternative fuel because they don’t compete with food.
    • However, there are still some challenges in making them economically feasible.

    Important Provision of ‘National Policy on Biofuels, 2018

    • The government aims at increasing the utilization of biofuels in the energy and transportation sectors of the country by promoting the production of biofuels from domestic feedstock in the coming decade through this policy.
    • Larger goals such as the adoption of green fuels, national energy security, fighting climate change, generating employment, etc. would be facilitated through this policy. Along with that, technological advancements in the field of biofuels will also be encouraged.
    • MNRE has set an indicative target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel to be achieved by 2030.
    • The percentage of the same currently stands at around 2% for petrol and less than 0.1% for diesel.

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    What makes MSMEs, most vulnerable to Covid-19 disruptions?

    | Economics | Mains Paper 3: Inclusive Growth & Issues

    • The Covid-19 pandemic has left its impact on all sectors of the economy but nowhere is the hurt as much as the Medium, Small and Micro Enterprises (MSMEs) of India.
    • All anecdotal evidence available, such as the hundreds of thousands of stranded migrant workers across the country, suggests that MSMEs have been the worst casualty of lockdown.
    • A closer look at the anatomy of the MSME sector explains why MSMEs are so vulnerable to economic stress.

    Possible mains question:

    Q. Discuss how the nationwide lockdown to control the coronavirus outbreak has led to the resurfacing of inherent bottlenecks in India’s MSME Sector.

    What are MSMEs? How are they defined?

    • Formally, MSMEs are defined in terms of investment in plant and machinery.
    • But this criterion for the definition was long criticised because credible and precise details of investments were not easily available by authorities.
    • That is why in February 2018, the Union Cabinet decided to change the criterion to “annual turnover”, which was more in line with the imposition of GST.
    • According to the proposed definition, which is yet to be formally accepted, a micro-enterprise will be one with an annual turnover less than Rs 5 crore; a small enterprise with turnover between Rs 5 crore and Rs 75 crore; and a medium enterprise with turnover less than Rs 250 crore.

    How many MSMEs does India have, who owns them, and where are they situated?

    • According to the latest available (2018-19) Annual Report of Department of MSMEs, there are 6.34 crore MSMEs in the country.
    • Around 51 per cent of these are situated in rural India.
    • Together, they employ a little over 11 crore people (Chart 3) but 55 per cent of the employment happens in the urban MSMEs.
    • These numbers suggest that, on average, less than two people are employed per MSME.
    • At one level that gives a picture of how small these really are. But a breakup of all MSMEs into micro, small and medium categories is even more revealing.

    Distributions of MSMEs

    • In terms of geographical distribution, seven Indian states alone account for 50 per cent of all MSMEs.
    • These are Uttar Pradesh (14%), West Bengal (14%), Tamil Nadu (8%), Maharashtra (8%), Karnataka (6%), Bihar (5%) and Andhra Pradesh (5%).
    • This breakup provides a sense of where the pain of the MSME crisis would be felt the most.
    • Chart 4 shows, 99.5 per cent of all MSMEs fall in the micro category.
    • The medium and small enterprises — that is, the remaining 0.5% of all MSMEs — employ the remaining 5 crore-odd employees.
    • While micro-enterprises are equally distributed over rural and urban India, small and medium ones are predominantly in urban India.

    What kind of problems do MSMEs in India face?

    • No/Low Formal registration: To begin with, most of them are not registered anywhere. A big reason for this is that they are just too small. But, as it is clear in a time of crisis, it also constrains a government’s ability to help them.
    • Away from Tax norms: GST has its threshold and most micro enterprises do not qualify. Being out of the formal network, they do not have to maintain accounts, pay taxes or adhere to regulatory norms etc. This brings down their costs.
    • Lack of Financial buffer: According to a 2018 report by the International Finance Corporation (part of the World Bank), the formal banking system supplies less than one-third (or about Rs 11 lakh crore) of the credit MSME credit need that it can potentially fund (Chart 5). They don’t have the buffers of the bigger firms or access to cheap capital to help them tide over this period.

    • Bad credit history: The other big issue plaguing the sector is the delays in payments to MSMEs — be it from their buyers or things likes GST refunds etc. A key reason why banks dither from extending loans to MSMEs is the high ratio of bad loans (Chart 6).

    How has Covid-19 made things worse?

    • The MSMEs were already struggling — in terms of declining revenues and capacity utilization — in the lead-up to the Covid-19 crisis.
    • The total lockdown has raised a question mark on workers payment primarily because these firms mostly transact on cash. That explains the job losses.
    • According to a recent survey he did for “small and medium” firms in manufacturing, only 7% said they will be able to survive for more than three months with their cash in hand if their business remains closed.
    • A big hurdle to restarting now is the lack of labour availability.

    What can be done?

    • The RBI has been trying to pump money into the MSME sector but given the structural constraints, it has had limited impact.
    • There are no easy answers for the MSMEs’ sufferings.
    • However, the government can provide tax relief (GST and corporate tax), give swifter refunds, and provide liquidity to rural India (say, through PM-Kisan) to boost demand for MSME products.

    What about credit guarantees?

    • Loans to MSMEs are mostly given against property (as collateral) — because often there isn’t a robust cash flow analysis available — but in times of crisis, property values fall and that inhibits the extension of new loans.
    • A credit guarantee by the government helps as it assures the bank that its loan will be repaid by the government in case the MSME falters.
    • To the extent such defaults happen, credit guarantees are shown as a departmental expense in the Budget.

    Urgent attention required

    • Governments across the world have announced various measures ranging from wage support to direct subsidies to help these businesses tide over these difficult times.
    • But, in India, more than a month after the national lockdown was announced; there is still no blueprint of how the government intends to support these businesses during this period.

    Way forward

    • There is a strong case for urgent government intervention — the costs of intervening early on will be much less than the price of delayed action.
    • To begin with, all dues owned by governments and public sector undertakings to MSMEs can be immediately cleared. This will help ease their immediate cash flow woes.
    • Second, with banks turning risk-averse, credit flow to MSMEs is likely to be depressed as solvency concerns will dominate.
    • In such a situation, the government could step in. It could set up a credit guarantee fund that backstops loans to MSMEs.

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  • J&K – The issues around the state

    What is Darbar Move?

    | Polity | Mains Paper 2: Federalism

    The Jammu and Kashmir High Court asked the Centre and the Union Territory (UT) administration to take a final call on the continuation of the 148-year-old practice Darbar Move i.e. shifting of capitals between Jammu and Srinagar.

    Possible mains question:

    Discuss the feasibility, benefits and constraints caused by multiple administrative capitals in Indian states with special context to Jammu and Kashmir and the state of Andhra Pradesh. (250W)

    Darbar Move

    • Darbar Move is the name given to the bi-annual shift of the secretariat and all other government offices of Jammu and Kashmir from one capital city to another.
    • From May to October, governmental offices are housed in the state’s summer capital, Srinagar, and the other six months in its winter capital, Jammu.
    • The tradition was started during Dogra rule in 1872 by Maharaja Ranbir Singh.
    • It involved shifting of the Maharaja’s government to Jammu to escape the harsh winters of the Kashmir Valley, which, in the 19th century, used to result in the Valley being cut off from outside the world.
    • It is advocated that the continuation of the practice helped in the emotional integration between two diverse linguistic and cultural regions of Jammu and Kashmir.

    A costly practice

    • Ahead of the Darbar Move, Srinagar usually receives a facelift every year. Over 10,000 employees shift capital annually.
    • Roads around and leading to the Civil Secretariat, the seat of the government, are being renovated now.
    • Besides, the government offices and quarters have been renovated and the streetlights restored.
    • Hundreds of trucks are usually plied to carry furniture, office files, computers, and other records to the capital.
    • Over the years, there have been voices raised against the century-old practice which involves heavy funding towards ensuring the smooth conduct of the move.

    Why scrap Darbar Move?

    • If this practice is rationalized, the amount of money, resources and time which could be saved, could be utilized towards the welfare and development of the Union Territory.
    • It could be utilized for the protection and propagation of culture and heritage of the communities.
    • No reason or justification at all is available for requiring the judiciary to shift with the ‘Darbar Move’. The same negatively impact justice dispensation and impedes judicial administration.

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  • Coronavirus – Health and Governance Issues

    Vande Bharat and Samudra Setu Missions to repatriate Indian nationals

    Prelims Only | Security Issues | : Social Media Networks & Internal Security

    India is all geared to operate flights and naval vessels to repatriate Indian nationals stranded abroad.

    The name Samudra Setu typically sound like a combatant naval exercise whereas Vande Bharat reminds us of Train-18. Both ideas have opposite context and meaning. One must keep this in mind.

    What is the ‘Vande Bharat Mission’ mission about?

    • ‘Vande Bharat Mission’ will see the operation of 64 flights from May 7 to May 13 to bring back around 15,000 Indian nationals stranded abroad.
    • Once completed, it may turn out to be the largest evacuation operation ever since the 1990 airlift of 1.7 lakh people from Kuwait.
    • Approximately, 2,000 people from abroad will fly back to India daily.

    What is Indian Navy’s ‘Operation Samudra Setu’?

    • The Indian Navy launched ‘Operation Samudra Setu’ (Sea Bridge) as a part of national effort to repatriate Indian citizens from overseas.
    • Indian Naval Ships Jalashwa and Magar are presently enroute to the port of Malè, Republic of Maldives to commence evacuation operations from 08 May 2020 as part of Phase-1.
    • INS Jalashwa is the largest amphibious platform in the Navy and is based at the Eastern Naval Command headquarters in Visakhapatnam.
    • It can normally accommodate 1,000 people but will take about 800.

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  • Microfinance Story of India

    [pib] Saras Collection on Government e-Marketplace

    PIB | Governance | Mains Paper 2: NGO, SHG & Civil Society

    The Union Ministry for Rural Development and Panchayati Raj and Agriculture and Farmers’ Welfare has launched “The Saras Collection” on the Government e-Marketplace (GeM) portal.

    Possible prelim question:

    ‘The Saras Collection’ recently seen in news is a:

    a) Subsidy on beekeeping and apiculture projects

    b) Indigenous light transport aircraft

    c) Database on wetland birds

    d) Collection of products made by SHGs

     The Saras Collection

    • It is a unique initiative by the GeM, Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) and Ministry of Rural Development.
    • The collection showcases daily utility products made by rural Self-Help Groups (SHGs) and aims to provide SHGs in rural areas with market access to Central and State Government buyers.
    • The on-boarding of the SHGs has been initially piloted in the states of Bihar, Chhattisgarh, Jharkhand, Karnataka, Kerala, Himachal Pradesh, Maharashtra, Odisha, Rajasthan, Uttar Pradesh and West Bengal.
    • SHGs from all the states and Union Territories (UTs) will be covered rapidly in the upcoming phases.

    It’s functioning

    • For Functionaries: They will be provided dashboards at the national, state, district and block level for real-time information about the number of products uploaded, their value and volume of orders received and fulfilled.
    • Government buyers: They will be sensitized through system-generated messages/ alerts in the Marketplace about the availability of SHG products on the portal.

    Benefits offered

    • The Saras Collection will provide SHGs with direct access to Government buyers which will do away with intermediaries in the supply chain.
    • Thus it would ensure better prices for SHGs and spurring employment opportunities at the local level.

    Back2Basics: Government e-Marketplace

    • The GeM is a one-stop National Public Procurement Portal to facilitate online procurement of common use Goods & Services required by various Government Departments / Organizations / PSUs.
    • It was launched in 2016 to bring transparency and efficiency in the government buying process.
    • GEM aims to enhance transparency, efficiency and speed in public procurement.
    • It is a completely paperless, cashless and system driven e-marketplace that enables procurement of common use goods and services with minimal human interface.
    • It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users to achieve the best value for their money.
    • The purchases through GeM by Government users have been authorized and made mandatory by the Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.
    • It has been developed by Directorate General of Supplies and Disposals (Ministry of Commerce and Industry) with technical support of National e-governance Division (MEITy).

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  • International Space Agencies – Missions and Discoveries

    ‘The Long March 5B’ rocket

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    China has successfully launched a new rocket and prototype spacecraft in a major test of the country’s ambitions to operate a permanent space station and send astronauts to the Moon.

    Can you recall the historical link between the name “The Long March” and China’s History.

    The Long March 5B

    • Long March 5 or Chang Zheng 5 is a Chinese heavy-lift launch system developed by the China Academy of Launch Vehicle Technology (CALT).
    • It is the first Chinese launch vehicle designed from the ground up to focus on non-hypergolic liquid rocket propellants.
    • The maximum payload capacities of the base variant are ~25,000 kilograms to Low Earth Orbit and ~14,000 kilograms to Geosynchronous Transfer Orbit.
    • The spaceship is expected to transport astronauts to a space station that China plans to complete by 2022 — and eventually to the Moon. It will have a capacity for a crew of six.

    Back2Basics: Geosynchronous Transfer Orbit

     

    • About 35,786 kilometers above the Earth’s surface, satellites are in geostationary orbit. From the center of the Earth, this is approximately 42,164 kilometers. This distance puts it in the high Earth orbit category.
    • At any inclination, a geosynchronous orbit synchronizes with the rotation of the Earth.
    • While geosynchronous satellites can have any inclination, the key difference to geostationary orbit is the fact that they lie on the same plane as the equator.
    • GTO is a an elliptical orbit used to transfer between two circular orbits of different radiuses in the same plane—used to reach geosynchronous or  geostationary orbit using high-thrust chemical engines.

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  • Modern Indian History-Events and Personalities

    What is Cinco de Mayo and why is it celebrated?

    | | Mains Paper 1:

    Cinco de Mayo, or fifth of May in Spanish, also called Battle of Puebla Day, is an annual celebration observed in Mexico and the US that marks the former’s military victory on its soil over French forces in 1862.

    Possible mains question:

    Q. The French colonization attempts went beyond India and had a global reach. Comment.

    French advent in Mexico

    • In the 1860s, Mexico had been severely weakened by lengthy wars over the previous two decades – the Mexican-American War (1846-48) and the internal Reform War (1858-61).
    • As a result, in 1861, the then President Benito JuĂĄrez announced a temporary moratorium of two years on repaying Mexico’s foreign debts.
    • In response, troops from Britain, Spain, and France invaded Mexico, demanding reimbursement.
    • By April 1862, Britain and Spain negotiated with Mexico and withdrew.
    • France, which at the time was led by Emperor Napoleon III, decided to establish an empire in Mexican territories with the support of the local landowning classes.
    • France also intended to curb US power in North America.

    The Battle of Puebla

    • In late 1861, a French fleet attacked the Mexican port of Veracruz on the country’s eastern coast and landed a large army that drove the JuĂĄrez government into retreat.
    • As they moved from Veracruz to capital Mexico City, the French encountered stiff resistance from Mexican forces.
    • At Puebla, over 100 km ahead of Mexico City, a poorly equipped and outnumbered Mexican force decisively defeated the advancing French troops on May 5, 1862, killing over a thousand.
    • The event marked a significant political victory of Mexican republicans and President JuĂĄrez and helped establish a sense of national unity in the country.

    Cinco de Mayo: Present-day significance

    • In Puebla, Cinco de Mayo is celebrated annually with speeches, parades, and by reenacting episodes of the 1862 battle.
    • The city today houses a museum dedicated to the battle, and the actual battlefield is maintained as a park.
    • In the US, in the mid-20th century, the celebration became a way for immigrants from Mexico to express pride in their heritage.
    • Later, Cinco de Mayo also became popular with other demographics in the country when the festivities were linked with Mexican alcoholic beverages.
    • As the celebration assumed greater importance in the country, many have criticised the negative stereotypes of Mexicans that were perpetuated as a result, as well as the promotion of excessive drinking.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Should we do away with the MPLADS?

    | Governance | Mains Paper 2: Government Scheme/Policies

    Since its inception in 1993, MPLADS has continued uninterrupted for 27 years. But COVID-19 came as a roadblock for MPLADS. Recently, it was suspended by the government for two years. As expected it led to huge political drama. However, as an aspirant, it is our duty to cut the drama out and focus on issues that matter. This article discusses MPLADS and argues for its abolition owing to various issues associated with it.

    Reason for suspension of MPLADS

    • The government suspended the scheme to strengthen the government’s efforts in managing the challenges and adverse impact of COVID-19 in the country.
    • It has been suspended for two years.
    • BTW scheme in short: Each MP has the choice to suggest to the District Collector for works to the tune of ₹5 crores per annum to be taken up in his/her constituency.

    Why should MPLADS be abolished?

    1. It goes against the spirit of the Constitution

    • The scheme violates one of the cardinal principles: separation of powers.
    • Simply put, this scheme, in effect, gives an executive function to legislators or the legislature.
    • The argument that MPs only recommend projects, but the final choice and implementation rest with the district authorities is unfounded.
    • There are hardly any authorities in the district who have the courage to defy the wishes of an MP.

    2. Lacunae in implementation

    • Consider some of the observations made by the Comptroller and Auditor General (CAG) of India:
    • Expenditure incurred by the executing agencies being less than the amount booked.
    • Utilisation of funds between 49 to 90% of the booked amount.
    • The scheme envisages that works under the scheme should be limited to asset creation, but 78% of the works recommended were for improvement of existing assets.
    • Wide variations in quantities executed against the quantities specified in the BOQ (Bills of Quantity) in 137 of the 707 works test-checked. Variations ranged from 16 to 2312%.
    • Use of lesser quantities of material than specified by contractors resulting in excess payments and sub-standard works.
    • Delays in issuing work orders ranging from 5 to 387 days in 57% of the works against the requirement of issuing the work order within 45 days.
    • Extensions of time granted to contractors without following the correct procedure.
    • Register of assets created, as required under the scheme, not maintained, therefore location and existence of assets could not be verified.

    3. Wide variation in utilisation of MPLADS funds

    • A report published in IndiaSpend has some very interesting insights based on data made available to it by the Ministry of Statistics and Programme Implementation.
    • A year after they took office, 298 of 543 members of the 16th Lok Sabha— have not spent a rupee from the ₹5 crore.
    • Though ₹1,757 crore had been released for MPLADs, only ₹281 crore had been utilised by all the 543 MPs till May 15, 2015.
    • This means only 16% of the money had been spent in one year by all the MPs put together, because the Lok Sabha was constituted in May 2014.
    • Since the MPLADS began in 1993, ₹5,000 crore was lying unspent with various district authorities by May 15, 2015.
    • It is clear from the details above, as well as later experience, that most MPs use money under MPLADS quite haphazardly, and a significant portion of it is left unspent.

    4. Misuse of the money under MPLADS

    • There is widespread talk of money under MPLADS being used to appease or oblige two sets of people: opinion-makers or opinion-influencers, and favourite contractors.
    • There have been cases of the contractor and the MP being financially linked with each other.

    5. Legality issue

    • The constitutional validity of MPLADS was challenged in the Supreme Court of India in 1999, followed by petitions in 2000, 2003, 2004, and 2005.
    • The combined judgment for all these petitions was delivered on May 6, 2010, with the scheme being held to be constitutional.
    • The SC seems to have placed an unquestioned trust in the efficacy of the scheme of implementation of MPLADS drawn up by the government without an assessment of the situation prevalent in the field.
    • The court should pay more attention to its skewed implementation, evidence of which is available in audit reports.

    Contrast and compare the provision of MPLADS with the Saansad Adarsh Gram Yojana. A direct question on the MPLADS could be asked by the UPSC, for instance, consider this question-“There has been the debate around the MPLADS. Discuss the issues involved in the MPLADS.”

    Conclusion

    Reports of underutilisation and misutilisation of MPLADS funds continue to surface at regular intervals but there seems to have been no serious attempt to do anything about it till now. Some concrete decisions on the future of the scheme is now inevitable.

     Back2Basics: What is MPLADS?

    • MPLAD is a central government scheme, under which MPs can recommend development programmes involving the spending of Rs 5 crore every year in their respective constituencies.
    • MPs from both Lok Sabha and Rajya Sabha, including nominated ones, can do so.
    • MPs do not receive any money under these schemes.
    • The government transfers it directly to the respective local authorities.
    • The legislators can only recommend works in their constituencies based on a set of guidelines.
    • For the MPLAD Scheme, the guidelines focus on the creation of durable community assets like roads, school buildings etc.
    • Recommendations for non-durable assets can be made only under limited circumstances.

    For example, last month, the government allowed the use of MPLAD funds for the purchase of personal protection equipment, coronavirus testing kits etc.

     

     

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  • Air Pollution

    Environmental regulations: go or no go?

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    As the world struggles to restart the economic activities amid the pandemic, various strategies are being advised to salvage the damaged economies. One amongst them is to cut down on the environmental standards to spur the economic activities. This article explains why India should not be short-sighted to lower the environmental standards.

    What is this fuss about environment and lockdown?

    • The lockdown exit strategies are focused on saving livelihoods.

    • But the lockdown is causing fiscal pressures on governments which further motivates it to lower the environmental standards, suspend environmental monitoring requirements and reduce environmental enforcement. (Well to save some bucks.)

    • And also in the belief that this is necessary to secure economic growth.

    • But it would be a mistake to assume that there is a trade-off between saving livelihoods and protecting the environment.

    • The crisis of COVID-19 has highlighted that improving the quality of air in our country is not a matter of choice but an emergency.

    How countries around the world are reacting?

    • The US announced a significant reduction in fuel efficiency standards for new cars.

    • This move could result in increased gasoline consumption by 80 billion tonnes, pumping increased carbon emissions into the atmosphere.

    • The US Environmental Protection Agency has announced that it will not be enforcing compliance with routine monitoring and reporting obligations of environmental protection, for an indefinite period.

    • 13 European ministers have been outspoken about resisting the temptations of short-term solutions in response to the present crisis- need to maintain and strengthen EU’s effective regulatory tools to stick to its 2030 climate goals.

    5 Arguments that Indian authorities that look into viz a viz environmental standards

    1. Pollution increases risk to COVID-19

    • People living in areas with higher levels of air pollution face increased risk of premature death from COVID-19.

    • New Delhi was the world’s most polluted capital city for the second straight year in 2019.

    • And India was also home to 21 of the world’s 30 most polluted cities, Swiss-based group IQ AirVisual said in a recent study.

    • The State of Global Air 2019 Report finds air pollution responsible for over 1.2 million deaths in China and India each, based on 2017 data.

    2. The poor are the most affected by air pollution

    • There is enormous inequality in the impact of the COVID-19 fallout.

    • Those who suffer the most from air pollution are the millions who live and toil in the open, who cannot afford air-purifiers or other mitigating measures, as also the elderly and children.

    3. Risk of future pandemics

    • There is good evidence that three-quarters of the emerging infectious diseases migrate from wild or domesticated animals into humans.

    • This includes Ebola, SARS, MERS and now COVID-19.

    • Deforestation, industrial agriculture, illegal wildlife trade, climate change and other types of environmental degradation increase the risk of future pandemics.

    4. Public support for environment protection

    • From Delhi to Sao Paulo, Bangkok to Bogota, the dramatic improvement in the quality of air and water in the most polluted cities around the world has been transmitted by social media.

    • This may well result in a groundswell of public support for measures to protect the environment.

    5. The environment will get the value it deserves

    • The corona pandemic will jolt the markets into giving a clean, healthy and sustainable environment the economic value it deserves.

    • There’s a possibility that the gulf between what markets value, and what people value, will close.

    Environment conservation as a silver lining in this Pandemic

    • We have never treated air pollution as a national emergency, failing to coordinate between the Centre and state governments.

    • The COVID pandemic has been declared a national disaster in India, under the National Disaster Management Act, 2005.

    • This legislation mandates the disaster authorities coordinate among themselves and take measures for the prevention and mitigation of the pandemic.

    • Preventing and mitigating the risks of COVID-19, therefore, means the mandate for the disaster authorities is also to tackle air and other forms of pollution head-on.

    Questions based on disasters have been a recurring theme in the UPSC. In 2014, a question was asked with respect to drought, the same could be asked about air pollution. In 2017 again a question based on role of NDMA and tsunami was aksed. In 2018, a question based on Sendai Framework was asked.

     

    Conclusion

    The NDMA is a platform which should be used to combat air pollution as an emergency, similar coordination will be required at an international level to continue to work towards reduced emissions under the Paris Agreement. It is a great pity that it takes a pandemic to bring the realisation that economic growth versus clean air is a false dichotomy.

    Back2Basics: NDMA

    • On 23 December 2005, the Government of India enacted the Disaster Management Act, which envisaged the creation of the National Disaster Management Authority (NDMA).
    • It is headed by the Prime Minister, and State Disaster Management Authorities (SDMAs) headed by respective Chief Ministers.
    • It aims to spearhead and implement a holistic and integrated approach to Disaster Management in India.

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  • Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

    FCI to the rescue

    op-ed snap | Economics | Mains Paper 3: PDS, Buffer Stock & Food Security

    FCI, indeed, has remained a crucial topic from the examination viewpoint. Mostly it is highlighted for its issues, corruption and wastages in the godowns. Be it MS Swaminathan or the latest Shanta Kumar committee all focus on how to revamp this giant institution. This article, however, points to the relevance of the FCI in the times of pandemic and suggests areas where there is scope for improvement in fulfilling its role. Stay tuned to find out what are the major concerns with FCI which needs consideration by the government.

    A background check on FCI

    • The FCI was set up under the Food Corporations Act 1964.

    •  In its first decade, FCI was at the forefront of India’s quest of self-sufficiency in rice and wheat following the Green Revolution.

    • Its functions involved managing procurement and stocking grain that supported a vast Public Distribution System (PDS).

    • Over time it became a behemoth that had long outlived its purpose and Its operations were regarded as expensive and inefficient.

    • Even in the 1970s and 1980s, poor storage conditions meant a lot of grain was lost to pests, mainly rats; diversion of grain was widespread.

    What role can FCI play amid Covid-19?

    • The FCI has consistently maintained the PDS, a lifeline for vulnerable millions across the country.

    • In the middle of the COVID-19 pandemic, it can play a major role in avoiding hunger and starvation.

    • Before the lockdown, with 77 million tonnes of grains in its godowns, the FCI was facing a serious storage problem.

    • This was worrying not just because of a shortage of modern storage facilities but also because the FCI lacked a “pro-active liquidation policy” for excess stocks.

    • Post-COVID: FCI has opened up the godowns to release food stocks to those affected by the lockdown.

    • The FCI has also enabled purchases by States and non-governmental organisations directly from FCI depots, doing away with e-auctions typically conducted for the Open Market Sale Scheme (OMSS).

    • With rabi procurement underway in many States, it seems that the country will secure ample food supplies to cope with the current crisis.

    • Given the extended lockdown, the FCI is uniquely positioned to move grain across State borders where private sector players continue to face formidable challenges of transport.

    5 suggestions for the FCI to perform better

    1. Using roads along with rails:

    • The FCI is overwhelmingly reliant on rail, which has several advantages over road transport.

    • In 2019-2020 (until February) only 24% of the grain moved was by road.

    • The FCI has long recognised that road movement is often better suited for emergencies and for remote areas.

    • Containerised movement too, which is not the dominant way of transporting grain, is more cost-effective and efficient.

    • Now, more than ever, it is imperative to move grain quickly and with the least cost and effort, to areas where the need is greatest.

    2. Store grain near demand hotspot

    • The FCI already has a decentralised network of godowns.

    • In the current context, it would be useful for the State government and the FCI to maintain stocks at block headquarters or panchayats in food insecure or remote areas.

    • This would allow State governments to respond rapidly.

    •  It will also provide a sense of assurance and psychological comfort to vulnerable communities.

    • This is especially relevant for regions that are chronically underserved by markets or where markets have been severely disrupted.

    3. Release stocks over and above existing allocation

    • The central government need to look beyond the PDS and the Pradhan Mantri Garib Kalyan Yojana and release stocks over and above existing allocations.

    • This would provide flexibility to local governments to access grains for appropriate interventions at short notice and to sell grain locally at pre-specified prices until supply is restored.

    • This would allow the state government to engage in feeding programmes, free distribution to vulnerable and marginalised sections, those who are excluded from the PDS, etc.

    • In many States, there is a vibrant network of self-help groups formed under the National Rural Livelihoods Mission (NRLM) which can be tasked with last mile distribution of food aid other than the PDS.

    • Consultative committees presumably exist already in each State to coordinate with the FCI on such arrangements.

    4. Suspend FIFO principle

    • Typically, the FCI’s guidelines follow a first in, first out principle (FIFO).

    • FIFO mandates that grain that has been procured earlier needs to be distributed first to ensure that older stocks are liquidated, both across years and even within a particular year.

    • It is time for the FCI to suspend this strategy, that enables movement that costs least time, money and effort.

    5. Support the farmers trying to reach out to consumers directly

    • In many places, farmer producer organisations (FPOs) have been at the forefront of rebuilding these broken supply chains.

    • The FCI along with the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), is well placed to rope in expertise to manage the logistics to support these efforts.

    • NAFED has already taken the initiative to procure and transport horticultural crops.

    • The FCI should similarly consider expanding its role to support FPOs and farmer groups, to move a wider range of commodities including agricultural inputs such as seeds and fertilizers, packing materials and so on.

    Major concerns regarding FCI’s role

    • Cost of food subsidy: The first is a long-term concern regarding the costs of food subsidy.

    • An analysis of FCI costs spanning 2001-16 suggests that on average about 60% of the costs of acquisition, procurement, distribution and carrying stocks are in fact transfers to farmers.

    • Not all of what is counted as subsidy therefore represents a waste of resources.

    • The government needs to address the FCI’s mounting debts — an estimated ₹2.55 lakh crore in March 2020 in the form of National Small Saving Funds Loan alone.

    • Depressing food prices: A second concern is that extended food distribution of subsidised grain is akin to dumping and depresses food prices locally.

    • The depressed prices, in turn, affect farmers.

    The Covid-19 pandemic has brought into sharp focus the relevance of the FCI. This makes PDS and Food security in prelims as well as in mains examination focus area. So, questions based on the topic are likely to be asked by the UPSC, for ex- “The FCI’s role in providing succour has been proved many times in the past and it lived up to its reputation amid Covid-19 pandemic as well. In the light of the above statement, discuss the relevance of the FCI and suggest the ways to improve its performance in the times of disasters”

    Also consider a question asked by the UPSC in 2019, “What are the reformative steps taken by the Government to make the food grain distribution system more effective?”

    Conclusion

    In 2015, the Shanta Kumar report recommended repurposing the organisation as an “agency for innovations in Food Management System” and advocated shedding its dominant role in the procurement and distribution of grain. There is no doubt that the FCI needs to overhaul its operations and modernise its storage. At the same time, the relevance of an organisation such as the FCI or of public stockholding, common to most Asian countries, has never been more strongly established than now.

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  • Liquor Policy of States

    Why liquor sale matters to states?

    | Economics | Mains Paper 3: Indian Economy

    Following the ease of restrictions in the third phase of the nationwide lockdown, some of the most striking images showed long queues outside liquor stores around the country. The Delhi government announced a 70% hike in the price of liquor across categories in the capital.

    Aspirants must note:

    1. Purview of Excise duty (i.e. Petroleum and Liquor)

    2. Excise duty before and after GST regime

    3. Sources of state revenue etc.

    4. Argument relating to inclusion of Liquor in GST

    Why liquor matters?

    • Delhi’s “special corona fee” on alcohol underlines the importance of liquor to the economy of the states.
    • Manufacture and sale of liquor is one of the major sources of their revenue, and the reopening comes at a time when the states have been struggling to fill their coffers amid the disruption on account of the lockdown.

    How do states earn from liquor?

    • Liquor contributes a considerable amount to the exchequers of all states and UTs except Gujarat and Bihar, both of which have enforced prohibition.
    • Generally, states levy excise duty on manufacture and sale of liquor.
    • Some states, for example, Tamil Nadu, also impose VAT (value-added tax).
    • States also charge special fees on imported foreign liquor; transport fee; and label & brand registration charges.
    • A few states, such as UP, have imposed a “special duty on liquor” to collect funds for special purposes, such as maintenance of stray cattle.

    Share in revenue

    • A report published by the RBI last year shows that state excise duty on alcohol accounts for around 10-15 per cent of Own Tax Revenue of a majority of states.
    • In fact, the state excise duty on liquor is the second or third largest contributor to the category State’s Own Tax revenue; sales tax (now GST) is the largest.
    • This is the reason states have always wanted liquor kept out of the purview of GST.

    What exactly is State Excise?

    • Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called “State Excise” duty.
    • For most of the states, excise duty is the second largest tax revenue after sales taxes (state VAT).
    • Besides, a substantial amount comes from licences, fines and confiscation of alcohol products.

    What has changed with the State Excise after the GST regime?

    • At the central level, excise duty earlier used to be levied as Central Excise Duty, Additional Excise Duty, etc.
    • However, the Goods and Services Tax (GST), introduction in July 2017, subsumed many types of excise duty. Today, excise duty applies only on petroleum and liquor.
    • Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services.
    • Alcohol does not come under the purview of GST as exclusion mandated by constitutional provision.
    • States levy taxes on alcohol according to the same practice as was prevalent before the rollout of GST.
    • After GST was introduced, central excise duty was replaced by Central GST because excise was levied by the central government. The revenue generated from CGST goes to the central government.

    What are the other sources of revenue for the states?

    • The states’ revenues comprise broadly two categories — Tax Revenue and Non-Tax Revenue.
    • Tax revenue is divided into two further categories: State’s Own Tax Revenue, and Share in Central Taxes.
    • Again, Own Tax Revenue comprises three principal sources:

    1) Taxes on Income (agricultural income tax and taxes on professions, trades, callings and employment);

    2) Taxes on Property and Capital Transactions (land revenue, stamps and registration fees, urban immovable property tax); and

    3) Taxes on Commodities and Services (sales tax, state sales tax/VAT, central sales tax, a surcharge on sales tax, receipts of turnover tax, other receipts, state excise, taxes on vehicles, taxes on goods and passengers, taxes and duties on electricity, entertainment tax, state GST, and “other taxes and duties”).

    Back2Basics: What is Excise Duty?

    • Excise duty is a form of tax imposed on goods for their production, licensing and sale.
    • It is the opposite of Customs duty in sense that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside of the country.
    • At the central level, excise duty earlier used to be levied as Central Excise Duty, Additional Excise Duty, etc.
    • Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services.

    Purview of excise duty

    • The GST introduction in July 2017 subsumed many types of excise duty.
    • Today, excise duty applies only on petroleum and liquor.
    • Alcohol does not come under the purview of GST as exclusion mandated by constitutional provision.
    • States levy taxes on alcohol according to the same practice as was prevalent before the rollout of GST.
    • After GST was introduced, excise duty was replaced by central GST because excise was levied by the central government. The revenue generated from CGST goes to the central government.

    Types of excise duty in India

    Before GST kicked in, there were three kinds of excise duties in India.

    1) Basic Excise Duty

    • Basic excise duty is also known as the Central Value Added Tax (CENVAT). This category of excise duty was levied on goods that were classified under the first schedule of the Central Excise Tariff Act, 1985.
    • This duty was levied under Section 3 (1) (a) of the Central Excise Act, 1944. This duty applied on all goods except salt.

    2) Additional Excise Duty

    • Additional excise duty was levied on goods of high importance, under the Additional Excise under Additional Duties of Excise (Goods of Special Importance) Act, 1957.
    • This duty was levied on some special category of goods.

    3) Special Excise Duty

    • This type of excise duty was levied on special goods classified under the Second Schedule to the Central Excise Tariff Act, 1985.
    • Presently the central excise duty comprises of a Basic Excise Duty, Special Additional Excise Duty and Additional Excise Duty (Road and Infrastructure Cess) on auto fuels.

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  • Ministry of External Affairs : Important Updates

    Non-Aligned Movement (NAM) Virtual Summit

    IOCR | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    PM Modi has for the first addressed the Non-Aligned Movement (NAM) summit since assuming office in 2014.

    Possible mains question-

    Q. Non-Aligned Movement (NAM) has lost its relevance in the new era of multipolar world. Comment.

    Highlights of the online summit

    • The online NAM Contact Group Summit on “United against COVID-19” was hosted by current NAM Chairman and Azerbaijan President Ilham Aliyev.
    • The NAM leaders announced the creation of a task force to identify requirements of member countries through a common database reflecting their basic medical, social and humanitarian needs in the fight against COVID-19.

    What is the Non-Aligned Movement (NAM)?

    • The NAM is a forum of 120 developing world states that are not formally aligned with or against any major power bloc.
    • The group was started in Belgrade, Yugoslavia in 1961.
    • After the UN, it is the largest grouping of states worldwide.

    Its formation

    • NAM emerged in the context of the wave of decolonization that followed World War II.
    • It was created by Yugoslavia’s President, Josip Broz Tito, India’s first PM, Jawaharlal Nehru, Egypt’s second President Gamal Abdel Nasser, Ghana’s first president Kwame Nkrumah, and Indonesia’s first President, Sukarno.
    • All five leaders believed that developing countries should not help either the Western or Eastern blocs in the Cold War.
    • As a condition for membership, the states of the NAM cannot be part of a multilateral military alliance (such as the NATO) or have signed a bilateral military agreement with one of the “big powers” involved in Great Power conflicts.
    • However, its idea does not signify that a state ought to remain passive or even neutral in international politics.

    Terms of summits

    • Unlike the UN or the Organization of American States, the NAM has no formal constitution or permanent secretariat.
    • All members of the NAM have equal weight within its organization.
    • The movement’s positions are reached by consensus in the Summit Conference of Heads of State or Government, which usually convenes every three years.
    • The administration of the organization is the responsibility of the country holding the chair, a position that rotates at every summit.
    • The ministers of foreign affairs of the member states meet more regularly in order to discuss common challenges, notably at the opening of each regular session of the UN General Assembly.

    Its relevance today

    • One of the challenges of the NAM in the 21st century has been to reassess its identity and purpose in the post-Cold War era.
    • The movement has continued to advocate for international cooperation, multilateralism, and national self-determination, but it has also been increasingly vocal against the inequities of the world economic order.
    • On the contrary, from the founding of the NAM, its stated aim has been to give a voice to developing countries and to encourage their concerted action in world affairs.

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  • Coronavirus – Disease, Medical Sciences Involved & Preventive Measures

    How Remdesivir tricks coronavirus?

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    A new research has found how Remdesivir treats coronavirus and described the exact mechanism of interaction between the virus and the drug.   Remdesivir is an experimental antiviral made by American pharmaceutical firm Gilead Sciences that was first developed to treat Ebola.

    DNA/RNA related terminologies, Genes and Genomes, etc. always find their way in UPSC Prelims.  Most recent one was-

    With reference to the recent developments in science, which one of the following statements is not correct? (CSP 2019)

    (a) Functional chromosomes can be created by joining segments of DNA taken from cells of different species.

    (b) Pieces of artificial functional DNA can be created in Iaboratories.

    (c) A piece of DNA taken out from an animal cell can be made to replicate outside a living cell in a laboratory.

    (d) Cells taken out from plants and animals can be made to undergo cell division in laboratory petri dishes.

    How Remdesivir kills coronavirus?

    • Remdesivir is designed to obstruct the stage of replication, when the virus creates copies of itself, followed endlessly by the copies creating copies of themselves.

    How does replication take place?

    • Once the virus enters the human cell, it releases its genetic material, which is then copied using the body’s existing mechanism.
    • At every stage of infection, various human proteins, virus proteins, and their interactions come into play.
    • At the replication stage, the key viral protein at play is an enzyme called RdRp (an enzyme is a kind of protein that speeds up chemical reactions within a cell).
    • It is RdRp that makes the copies, by processing components of the RNA of the virus.
    • University of Alberta researchers called it the “engine” of the virus in a paper last week, in which they described the action of Remdesivir against this “engine”.
    • In scientific literature, such an enzyme is called a polymerase (the p is RdRp stands for polymerase) or a replica.
    • In any case, this is the enzyme that is targeted by Remdesivir.

    And how exactly does Remdesivir target this enzyme?

    • In order to replicate, the virus processes raw material from the virus RNA, broken down by another enzyme with that specific function.
    • When a patient is given Remdesivir — the inhibitor — it mimics some of this material and gets incorporated in the replication site.
    • With Remdesivir replacing the material it needs, the virus fails to replicate further.
    • These coronavirus polymerases are sloppy and they get fooled, so the inhibitor gets incorporated many times and the virus can no longer replicate.

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  • Monsoon Updates

    Bay of Bengal Boundary Layer Experiment (BoBBLE)

    | Science Tech | Mains Paper 1: Geographical Features & Their Location

    A team from IISc Bengaluru and UK based researchers has created a blueprint for accurate prediction of monsoon, tropical cyclones and another weather-related forecast under the BoBBLE Experiment.

    Aspirants must note:

    1) BoBBLE is headed by which organizations?

    2) Its purpose and application

    What is BoBBLE?

    • The Bay of Bengal Boundary Layer Experiment or BoBBLE in short is a project funded by Union Ministry of Earth Sciences and the Natural Environment Research Council of UK.
    • BoBBLE tries to determine, quantify and model ocean-atmosphere interactions that drive variability in the South Asian monsoon.
    • The experiment created a blueprint for future weather system observational experiments for accurately forecasting monsoon rainfall.

    Why need BoBBLE?

    • The Bay of Bengal (BoB) plays a fundamental role in controlling the weather systems that make up the South Asian summer monsoon system.
    • In particular, the southern BoB has cooler sea surface temperatures (SST) that influence ocean-atmosphere interaction and impact the monsoon.
    • Compared to the southeastern BoB, the southwestern BoB is cooler, more saline receives much less rain, and is influenced by the summer monsoon current (SMC).
    • To examine the impact of these features on the monsoon, the BoB Boundary Layer Experiment (BoBBLE) was undertaken.

    BONUS:

    1) How technology development in monsoon forecasting can benefit realizing the dream of doubling farmers income by 2022?

    2) Discuss the role of Bay of Bengal in monsoon dynamics. (Hint: the link between the two lies in Indian Ocean Dipole (IOD))

    How is the experiment carried out?

    • BoBBLE will deploy two ships, six ocean gliders and eight floats to collect an unprecedented range of oceanic and air-sea flux observations.
    • These will occupy locations in the southwest and southeast Bay, as well as tracing east-west and north-south paths between those locations, measuring ocean temperature, salinity and currents.

    With inputs from http://www.walker.ac.uk/research/projects/bay-of-bengal-boundary-layer-experiment-bobble/

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  • e-Commerce: The New Boom

    ‘BharatMarket’: An e-commerce platform for retail traders

    Prelims Only | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Traders’ body Confederation of All India Traders (CAIT) said that it will soon launch a national e-commerce marketplace ‘BharatMarket’ for all retail traders in collaboration with several technology partners.

    A prelims question with tricky options to throw you off track-

    The BharatMarket initiative recently seen in news is-

    A. Trade of Bharat-22 Exchange Traded Fund (ETF)

    B. Platform for farmer to sell their produce

    C. Initiative in power sector

    D. e-commerce platform

    Here you have to play safe…..

    BharatMarket

    • The marketplace will integrate the capabilities of various technology companies to provide end-to-end services in the logistics and supply chains from manufacturers to end consumers, including deliveries at home.
    • It will include nationwide participation by retailers and aims to bring 95 per cent of retail traders onboard the platform, who would exclusively run the portal.
    • It has been already started as a pilot project, initially with a limited number of essential commodities, in six cities — Prayagraj, Gorakhpur, Varanasi, Lucknow, Kanpur and Bengaluru.
    • This will be an effective way to get essential commodities to consumers during the lockdown period and within containment zones.

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  • Innovations in Biotechnology and Medical Sciences

    [pib] UV Blaster: A UV Disinfection Tower

    PIB | Science Tech | Mains Paper 3: S&T – Applications In Everyday Life

    The DRDO has developed an Ultra Violet (UV) Disinfection Tower for rapid and chemical-free disinfection of high infection-prone areas.

    GYAN:

    We have a UV filter in our home based water filter.  Ever wondered, how do UV rays kill viruses/bacteria?

    UV Blaster

    • The UV blaster is a UV based area sanitizer designed and developed by Laser Science & Technology Centre (LASTEC), the Delhi based premier laboratory of DRDO.
    • It is useful for high tech surfaces like electronic equipment, computers and other gadgets in laboratories and offices that are not suitable for disinfection with chemical methods.
    • The product is also effective for areas with a large flow of people such as airports, shopping malls, metros, hotels, factories, offices, etc.

    How does it work?

    • The UV based area sanitizer may be used by remote operation through laptop/mobile phone using wifi link.
    • The equipment has six lamps each with 43 watts of UV-C power at 254 nm wavelength for 360-degree illumination.
    • For a room of about 12 x 12 feet dimension, the disinfection time is about 10 minutes and 30 minutes for 400 square feet area by positioning the equipment at different places within the room.
    • This sanitizer switches off on the accidental opening of a room or human intervention.

    Back2Basics: UV germicidal irradiation

    • UV irradiation is a disinfection method that uses short-wavelength ultraviolet rays to kill or inactivate microorganisms by destroying nucleic acids and disrupting their DNA, leaving them unable to perform vital cellular functions.
    • UVGI is used in a variety of applications, such as food, air, and water purification.
    • UVGI devices can produce strong enough UVC light in circulating air or water systems to make them inhospitable environments to microorganisms such as bacteria, viruses, moulds, and other pathogens.
    • UVGI can be coupled with a filtration system to sanitize air and water.
    • It has been used primarily in medical sanitation and sterile work facilities.
    • Increasingly, it has been employed to sterilize drinking and wastewater since the holding facilities are enclosed and can be circulated to ensure a higher exposure to the UV.

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  • BRICS Summits

    BRICS’ fight against COVID

    | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    “BRICS” is an acronym coined by Jim O’Neill in 2001. In the start of the 21st century, BRICS seemed like the future economic powerhouse. Somehow this picture faded a little with time. This article shows the resilience and potential demonstrated by BRICS in times of Covid-19. It throws light on the latest initiatives of BRICS like New Development Bank. Finally what lies in the future for BRICS?

    The “I” in BRICS

    • India has reinforced its reputation as a rapidly emerging pharmacy of the world.

    • As the world’s largest producer of hydroxychloroquine, India has exported the drug to many countries like Russia, Brazil, Israel, U.S,  SAARC and Gulf nations.

    • Pharma-alliance: The above developments have set the stage for India to forge an inclusive BRICS-driven pharma alliance, which could also actively explore the production of vaccines.

    The “C” in BRICS

    • Despite allegations, China has responded strongly in containing the pandemic, leveraging its position as the workshop of the world.

    • China, using it’s manufacturing capabilities, responded to the disease by providing the “hardware” — masks, gloves, coveralls, shoe covers and testing kits — to hotspots across the globe.

    • Under its Health Silk Road doctrine, the Chinese are reaching out to two of the worst global hotspots, Italy and Iran.

    • China has also rolled out a medical air bridge for Europe.

    The “R” in BRICS

    • Despite fighting the virus at home, Russia too has sent its doctors and virologists overseas including an air mission to Italy.

    • At the request of U.S. President Donald Trump, Russia offered help in the form of medical experts and supplies.

    The “S” in BRICS

    • South Africa, the current rotating head of the African Union, is engaged in framing a pan-African response to COVID-19.

    The “B” in BRICS

    • Only Brazil’s response may need a course correction.

    • In Brazil’s case resistance to breaking the infection chains through travel bans, lockdowns, isolation and testing appear to have led to an infection surge.

    Where does the NDB’s model fit in this picture?

    • The New Development Bank of the BRICS has already demonstrated the way forward to allocate financial resources to combat COVID-19.

    • In April, NDB announced that it is going to disburse a $1 billion emergency loan to China, and subsequently to India, South Africa and Brazil.

    • The NDB had the financial heft to provide $10 billion in “crisis-related assistance” to BRICS member countries.

    The next step for BRICS –  COORDINATION

    • BRICS has demonstrated their comparative strengths as providers of Humanitarian Assistance and Disaster Relief (HADR).

    • BRICS countries now need to pool and coordinate their efforts, in partnership with the WHO, and Europe and North America, as part of a global assault on the virus.

    • BRICS countries also need to earmark resources and assets to combat a whole range of natural disasters, with special focus on the emerging economies and the global south.

    • The NDB’s financial model demonstrated to address the pandemic, can now become a template to address natural disasters.

    Bodies like BRICS have remained the favourite child of UPSC. Be it questions in prelims or mains. A question based on the regional grouping could be asked by the UPSC, for ex- “BRICS nations have proved to be more than merely an economic grouping. In light of the above statement, discuss the Humanitarian Assistance and Disaster Relief (HADR) potential of the BRICS countries.”

    Conclusion

    BRICS in future can leverage the coordination among them to work on finding the vaccine and also build on the experience gathered from the pandemic to form a disaster response policy in the future.

    Back2Basics: BRICS

    • BRICS is the acronym coined for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.
    • Originally the first four were grouped as “BRIC” (or “the BRICs”), before the induction of South Africa in 2010.
    • The BRICS members are known for their significant influence on regional affairs; all are members of G20.
    • Since 2009, the BRICS nations have met annually at formal summits. China hosted the 9th BRICS summit in Xiamen on September 2017, while Brazil hosted the most recent 11th BRICS summit on 13-14 November 2019.

    New Development Bank and the Fortaleza Declaration

    • During the sixth BRICS Summit in Fortaleza (2014), the leaders signed the Agreement establishing the New Development Bank (NDB).
    • In the Fortaleza Declaration, the leaders stressed that the NDB will strengthen cooperation among BRICS and will supplement the efforts of multilateral and regional financial institutions for global development, thus contributing to collective commitments for achieving the goal of strong, sustainable and balanced growth.
    • The bank was established in July 2015 by the BRICS countries (Brazil, Russia, India, China and South Africa).
    • The aim of the bank is to mobilize funding for infrastructure and sustainable development.
    • Its ownership structure is unique, as the BRICS countries each have an equal share and no country has any veto power.
    • In this sense, the bank is a physical expression of the desire of emerging markets to play a bigger role in global governance.
    • NDB was created to help fill the funding gap in the BRICS economies and was intended to grow its global scope over time.
    • The bank, with its subscribed capital base of US$50bn, is now poised to become a meaningful additional source of long-term finance for infrastructure in its member countries.

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    From informal to the formal economy: The crooked road

    op-ed snap | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    The article discusses the issues around the informal workforce in the economy. What are the factors responsible for the high informal sector in India? How is this sector responding in times of COVID? Are there some easy solutions to mainstream the informal sector into our formal economy? These are some of the points one should ponder upon while reading this article.

    The vulnerability of the informal workforce

    • Developing countries such as India are economically vulnerable to Covid-19 because of the presence of huge informal workforce.

    • Lack of protection: This vast informal workforce, which has no labour, social or health protection, is woefully ill-equipped to cope with the medical and economic shocks of the virus.

    The humongous size of the informal economy in India

    • Share of the informal sector: As per Periodic Labour Force Survey, 2017-18, 90.6 per cent of India’s workforce was informally employed.

    • This estimate includes those who are employed in informal enterprises (unincorporated small or unregistered enterprises).

    • It also includes informal workers in the formal sector (workers in the formal sector who are not provided any social security benefits by employers).

    • Take another example: Between 2004-05 and 2017-18, a period when India witnessed rapid economic growth, the share of the informal workforce witnessed only a marginal decline from 93.2 per cent to 90.6 per cent. 

    • Covid effect: Looking ahead, it is likely that informal employment will increase as workers who lose formal jobs during the COVID crisis try to find or create work (by resorting to self-employment) in the informal economy.

    • Also, formal enterprises are likely to continue hiring informal workers as they seek more flexibility and attempt to cut labour costs to cope with the COVID-19 induced economic uncertainty.

    Why is the informal more favourable over the formal?

    • The basic reason: necessity to eke out a subsistence living in the absence of alternative employment opportunities.

    • The ‘not so basic’ reasons: Some self-employed persons choose to be in the informal economy voluntarily to avoid registration or taxation.

    • Many are deterred by the costs of formalisation or don’t see much benefit from formalisation.

    • Finally, the phenomenon of informalisation of wage employment in the formal sector is a consequence of formal firms trying to avoid payroll taxes and employer’s contributions to social security or pensions to reduce labour costs.

    Some solution to smoothen the crooked road

    • A multi-pronged and comprehensive approach is needed to facilitate the transition.

    • Labour intensive growth: It requires creating more formal jobs through labour-intensive growth so that informal workers can move to these jobs.

    • Registering and taxing informal enterprises: The Indian experience of compelling informal firms to register and become tax compliant through demonetisation and introduction of GST formalised them only in a legal sense.

    • There is a need for increasing productivity of informal enterprises and incomes of the informal workforce by providing them with technical and business skills, infrastructure services, financial services, enterprise support and training to better compete in the markets.

    • Promoting the path to entrepreneurship in the informal economy.

    • Many informal enterprises would welcome efforts to reduce barriers to registration and related transaction costs as they expect to reap the benefits of formalising.

    • Reducing decent work deficit: This requires protecting informal workers by providing them a social protection floor, ensuring a set of basic working conditions (adequate living wages, limits on hours of work and safe and healthy workplaces).

    A direct question based on the issue of the informal sector can be asked by the UPSC, for ex- “There is a humongous presence of the informal sector in the Indian economy. What are the factors responsible for this? Suggest ways to transform the informal sector into the formal sector.”

    Conclusion

    Questions around the role of government and who bears the onus of protecting workers deserve careful consideration in the backdrop of the rising incidence of informal employment in the formal sector and the growth of the gig economy. It is apparent that in our relentless pursuit of economic growth, we have ignored the voices of India’s informal sector for too long.

    Back2Basics: What is the informal economy?

    • An informal economy (informal sector or grey economy) is the part of any economy that is neither taxed nor monitored by any form of government.
    • Although the informal sector makes up a significant portion of the economies in developing countries, it is sometimes stigmatized as troublesome and unmanageable.
    • However, the informal sector provides critical economic opportunities for the poor.

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  • Coronavirus – Economic Issues

    Globalisation 2.0 after Covid-19

    op-ed snap | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    The article discusses the future of the Globalisation after Covid-19. Globalisation 2.0 which has been dominated by China will see several changes in the post-pandemic world. Investment decisions and Global Value Chains would undergo a paradigm shift. The article is concluded by expressing the hope that pandemic doesn’t end  Globalisation 2.0 but it will certainly usher in the new rules of capitalism.

    Globalisation 2.0 and issues with the flow of labour

    • What is Globalisation 2.0? In strictly economic terms, globalisation is about the free movement of capital, goods and labour across national borders.
    • Globalisation 2.0 began in the early 1980s and has lasted for four decades.
    • Under the 2.0 phenomenon, the labour flows were never as free as the movements of capital and goods.
    • This is because one does not necessarily see who produced the goods or capital coming into the borders.
    • But migrants are distinguishable, one can directly observe how ethnically, racially, religiously different they are from the mainstream.

    Rise of right-wing politics in the US and UK due to labour flows

    • Labour flows is a major reason for triggering right-wing politics of nativism in present times.
    • Donald Trump directed his political campaign against non-white immigrants, especially Hispanics and Muslims.
    • He criticised businessmen who, in search of lower costs, had made China the destination of their accumulated investments, transferring jobs away from America’s industrial heartland.
    • Thus, his policies to levy higher tariffs to curtail freer trade. These policies made sure that the American corporations bring capital back to the US.
    • In Europe, a similar politics has been led by the UK, though less vociferously.

    How China has benefited from Globalisation 2.0?

    • In 1980, China was the 48th largest economy in the world: with GDPs at roughly $200 billion, Indian and Chinese economies were similar in size.
    • In 2018, China, with a GDP of $13.6 trillion, was the second-largest economy in the world, behind the US ($20.5 trillion). But far ahead of Japan ($4.9 trillion), Germany ($4.0 trillion), Britain ($2.8 trillion), France ($2.8 trillion) and India ($2.7 trillion).
    • Not only in terms of GDP, but China had also become the largest trading nation in the world by 2018:
    • Exports: worth $2.5 trillion, substantially ahead of the US ($1.6 trillion).
    • FDI in China: In 2018, China attracted over $203 billion worth of net FDI, much more than India ($42 billion), and second only to the US ($258 billion).

    Is COVID-19 a sign of ending Globalisation 2.0?

    • Despite the pure economic logic of how easy it is to manufacture at scale in China, the global leader today are more concerned about the political overtones.
    • Given all the doubts about how China handled the information about the origins of the virus in Wuhan, anger against China in world capitals is evident.
    • Such anger can have impact on the rules of globalisation.
    • Strict regulation of labour laws: We can expect labour flows will now be more strictly regulated than before.
    • Political risks in investment decisions: Western investors will also have to factor in political risks in their investment decision-making.
    • National security concern: New concerns like what if China threatens supply disruptions for critical materials.
    • Instead of chasing lower labour costs, investors will either bring capital back to domestic shores or geographically restructure their supply chains.
    • To summarize it, Globalisation will not end, but it will be pushed into greater retreat. Thus, changing the rules of the BIG game of capitalism.

    A question based on the impact of the pandemic on the global trade, issues associated with and opportunities for India could be asked in the Mains Paper 3.

    Also the Idea of Globalisation is important from the aspect of paper 1 and Essay. “Globalisation’ vs ‘Nationalism’ was one of the topic in Essay paper in 2009.

    Conclusion

    For the foreseeable future, economic efficiency, the cornerstone of market-based systems, will not be high on priority. Politics will drive new economic policies, not market-based rationality.

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