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DAILY CURRENT AFFAIRS, 16 FEBRUARY 2024

ELECTORAL BOND SCHEME

 

1. Context 

In a landmark unanimous judgment, the Supreme Court on Thursday struck down as “unconstitutional and manifestly arbitrary” the electoral bonds scheme, which provides blanket anonymity to political donors, as well as critical legal amendments allowing rich corporations to make unlimited political donations.

2. Court Verdict as "Unconstitutional"

  • A five-judge Bench headed by Chief Justice of India D.Y. Chandrachud held that the scheme, and preceding amendments made to the Representation of the People Act, the Companies Act, and the Income Tax Act, violated the voters’ right to information about political funding under Article 19(1)(a) of the Constitution
  • The court agreed that the fundamental right to privacy covers a person’s political affiliation. However, it said, there should be a balance between informational privacy and the voters’ right to information
  • The court dismissed the Union government’s argument that the anonymity of political donors afforded by electoral bonds incentivised financial contributions through banking channels
  • The court rubbished the government’s claim that the scheme was meant to curb the injection of black money into the electoral process. It ruled that “curbing of black money” was not a reasonable restriction to the exercise of the voters’ fundamental right to information about political funding enshrined in Article 19(1)(a)
  • The judgment noted that the entire electoral bonds scheme had hinged on the anonymity provided under Clause 7(4). Without this, the scheme was indistinguishable from other modes of financial contributions. Sans the clause, the scheme had to fall
 

3. About Electoral Bonds

The electoral bonds scheme is a mechanism for political funding introduced by the Indian government in 2017. It allows individuals, organizations, and corporations to make anonymous donations to political parties. Over 12,900 electoral bonds worth Rs 6,534.78 crore were sold in 15 phases between March 2018 and January 2021.

3.1. Key Features of Electoral Bonds

  • Electoral bonds allow donors to make contributions to political parties while maintaining anonymity. The bonds do not carry any information about the donor, ensuring that the identity of the contributor remains undisclosed.
  • Electoral bonds are available in multiple denominations, including Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore. Donors can purchase bonds in these denominations to contribute to political parties.
  • The State Bank of India (SBI) is the sole authorized bank for the sale of electoral bonds. Donors can buy these bonds from designated SBI branches.
  • Donors must fulfil Know Your Customer (KYC) norms while purchasing electoral bonds, which includes providing their personal information to the bank. However, this information is not disclosed to the political party receiving the donation.
  • Political parties have 15 days to encash the electoral bonds in their verified bank accounts. This ensures that the bonds are promptly converted into funds.
  • There is no limit on the number of electoral bonds an individual or company can purchase, allowing for substantial contributions.
  • If a political party does not encash the electoral bonds within the stipulated 15-day period, the SBI deposits these bonds into the Prime Minister's Relief Fund.
  •  A contentious feature of the scheme is that political parties receiving donations through electoral bonds are exempt from disclosing the source of these donations in their mandatory annual contribution reports to the Election Commission of India (EC).

3.2. Rationale Behind the Electoral Bonds Scheme

The rationale for introducing the electoral bonds scheme was as follows:

  • Proponents of the scheme argued that it would bring a level of transparency to political funding by making contributions through a banking channel, as all transactions would go through the banking system, leaving an audit trail.
  • The scheme was intended to protect the privacy of donors, allowing individuals and entities to contribute to political parties without fear of retribution or public exposure.
  • By providing a legal and transparent means for making political contributions, the scheme aimed to reduce the use of unaccounted-for cash in political funding, which was perceived as a major source of corruption in the political process.
  • The scheme encouraged donors to make contributions through the formal banking system, thereby promoting digital transactions and aligning with the government's push for a cashless economy.

3.3. Challenges and Controversies

  • The primary point of contention with electoral bonds is the anonymity they offer to donors.
  • An amendment to the Finance Act 2017 exempts parties from disclosing donations received through these bonds.
  • This means that voters are unaware of the source and extent of funding for political parties, undermining transparency.
  • Transparency activists argue that the amendment infringes upon the citizen's 'Right to Know' and further reduces the accountability of the political class.
  • While the citizens remain uninformed, the government can access donor details from the State Bank of India, rendering only the taxpayers unaware of the source of donations.
Electoral bonds have gained popularity due to the anonymity they offer to donors. More than half of the total income of national and regional parties in the financial year 2018-19 came from electoral bond donations. The Bharatiya Janata Party (BJP) emerged as the largest beneficiary, receiving 60.17% of the total electoral bond donations.

4. Election Commission's Stand

The Election Commission has expressed objections to amendments in the Representation of the People Act that exempt political parties from disclosing donations via electoral bonds. It has raised concerns about the potential violation of provisions prohibiting political parties from receiving donations from government companies and foreign sources.

5. The Way Forward

The electoral bonds scheme was introduced to enhance transparency, it has generated significant debates and concerns. A comprehensive way forward should focus on striking a balance between anonymity for donors and the citizens' right to know the financial sources of political parties. Transparent and accountable political funding is crucial for upholding the democratic values and integrity of the political process in India.
 
For Prelims: Electoral Bonds, SBI, Election Commission of India, Right to Know, Finance Act 2017, Prime Minister's Relief Fund
For Mains:
1. Examine the challenges and controversies surrounding the Electoral Bonds Scheme, particularly regarding donor anonymity and transparency in political funding. How have these issues raised concerns about the integrity of the political process in India? (250 Words)
 
 
Previous Year Questions
 
Prelims

1. Consider the following statements: (UPSC 2017)

1. The Election Commission of India is a five-member body.
2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
3. Election Commission resolves the disputes relating to splits/mergers of recognised political parties.

Which of the statements given above is/are correct?

A. 1 and 2 only          B. 2 only              C. 2 and 3 only                D. 3 only

Answer: D

2. With reference to the Constitution of India, prohibitions or limitations or provisions contained in ordinary laws cannot act as prohibitions or limitations on the constitutional powers under Article 142. It could mean which one of the following? (UPSC CSE 2019)
(a) The decisions taken by the Election Commission of India while discharging its duties cannot be challenged in any court of law.

(b) The Supreme Court of India is not constrained in the exercise of its powers by laws made by the Parliament.
(c) In the event of a grave financial crisis in the country, the President of India can declare a Financial Emergency without the counsel from the Cabinet.
(d) State Legislatures cannot make laws on certain matters without the concurrence of the Union Legislature.

Answer: B

3. Consider the following statements : (UPSC 2021)

1. In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.
2. In the 1991 Lok Sabha Election, Shri Devi Lal contested from three Lok Sabha constituencies.
3. As per the- existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her in the event of him/her winning in all the constituencies.
Which of the statements given above is/are correct?
A. 1 only         B. 2 only           C. 1 and 3             D. 2 and 3
 
4. Consider the following statements about Electoral Bond Scheme 2018: (RPSC RAS Prelims 2018)
(A) The aim of this scheme is to bring about transparency in the funding process of political parties.
(B) Only the political parties recognized by the Election Commission which secured not less than one per cent of the votes polled in the last general election to the House of People or the Legislative Assembly of the State shall be eligible to receive the Electoral Bonds.
(C) Electoral Bonds shall be valid for fifteen calendar days from the date of issue.
(D) The Electoral Bond deposited by an eligible political party in its account shall be credited on the same day.
Which of the above statements are correct?
1.  Only (A) and (B)     
2.  (A), (B), (C) and (D)
3. Only (B), (C) and (D)
4. Only (A), (C) and (D)
Answer: 2
 
5. With reference to the PM CARES Fund, consider the following statements: (AFCAT 27 2022)
I. The amount collected by it directly goes to the Consolidated Fund of India.
II. It can avail donations from the foreign contribution and donations to fund can also avail 100% tax exemption.
Which of the above statements is/are correct?
A. I only            B. II only           C. Both I and II        D. Neither I nor II
 
Answer: B
 
6. The Prime Minister's National Relief Fund is operated by which one of the following bodies?  (CDS 2019)
A. The Prime Minister's Office (PMO)
B. The National Disaster Management Authority
C. The Ministry of Finance
D. The National Development Council (NDC)
Answer: A

Mains

1. In the light of recent controversy regarding the use of Electronic Voting Machines (EVM), what are the challenges before the Election Commission of India to ensure the trustworthiness of elections in India? (UPSC 2018)

2. Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. ( UPSC 2022)

 Source: The Indian Express

 

EUROPEAN FREE TRADE ASSOCIATION (EFTA)

 
 
1. Context
 
 
India has rejected the demand for ‘data exclusivity’, as part of ongoing discussions with the European Free Trade Association (EFTA) towards a free trade agreement, Sunil Barthwal, Secretary, Department of Commerce
 
 
 2. About European Free Trade Association
 

The European Free Trade Association (EFTA) is an intergovernmental organization that aims to facilitate free trade and economic cooperation among its member states. EFTA was established on May 3, 1960, as an alternative trade bloc to the European Economic Community (EEC), which later evolved into the European Union (EU). The founding members of EFTA were Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the United Kingdom.

The key aspects of EFTA

EFTA comprises four member countries: Iceland, Liechtenstein, Norway, and Switzerland. The organization has experienced changes in membership over the years, with some countries joining or leaving.

  • EFTA's primary objectives include promoting free trade and economic cooperation among its member states. It aims to facilitate the reduction or elimination of barriers to trade in goods and services, enhance economic relations, and foster mutual understanding and collaboration in various economic sectors.
  • While EFTA is a distinct organization, its member states often have close economic ties with the European Union. EFTA countries have developed various agreements and arrangements with the EU to facilitate trade and economic cooperation. However, EFTA member states are not part of the EU Customs Union or the EU Single Market.
  • EFTA has engaged in numerous free trade agreements (FTAs) with countries and regions around the world. These agreements aim to reduce or eliminate tariffs and other trade barriers, promoting the flow of goods and services. EFTA countries have FTAs with countries in Europe, Asia, Africa, and South America.
  • The EFTA Surveillance Authority oversees the application of EFTA's rules in its member states. It monitors compliance with agreements, including ensuring that competition rules and other regulations are adhered to by member countries.
  • The EFTA Court serves as the judicial body for the EFTA states. It handles disputes related to the interpretation and application of EFTA law. The court's decisions contribute to the legal framework of EFTA's trade and economic agreements.
  • Over the years, EFTA has seen changes in its membership. Some countries have joined, while others have left. Accession to EFTA involves negotiations and the fulfillment of certain criteria, reflecting the organization's commitment to free trade and economic cooperation.
  • EFTA member countries have diverse and developed economies. They are known for their high living standards, economic stability, and competitiveness. The organization provides a platform for these countries to collaborate and engage in trade with partners around the world.
  • While trade is a central focus, EFTA member states also collaborate in other areas, including research and development, innovation, and cultural exchanges. The organization serves as a forum for discussing and addressing various economic and policy issues.

Main Goals of EFTA

  • To promote free trade and economic integration among its member states.
  • To strengthen member states' economies and improve their competitiveness on the global market.
  • To cooperate with other countries and international organizations to further liberalize trade and promote economic development.

Institutional Structure

  • The EFTA Council is the organization's highest governing body, consisting of representatives from each member state. It meets regularly to discuss and decide on important matters related to EFTA's objectives and activities.
  • The EFTA Secretariat, based in Geneva, Switzerland, provides administrative support and facilitates communication among member states.
  • EFTA actively engages in negotiations and establishes free trade agreements (FTAs) with various countries and regions outside the organization, contributing to the expansion of economic cooperation.

Current Status of EFTA

  • Despite not being part of the EU, EFTA members maintain close economic ties with the EU through a series of bilateral agreements.
  • They participate in the European Single Market and are part of the Schengen Area, allowing for the free movement of goods, services, capital, and people.
  • EFTA remains an important economic player in Europe, with a combined GDP of over €1 trillion and a population of over 13 million.
 

Benefits of EFTA Membership

  • EFTA's free trade agreements and common market have led to a significant increase in trade and investment between member states and their trading partners.
  • EFTA's focus on free trade and economic cooperation has helped to stimulate economic growth in member states.
  • By cooperating on research and development, innovation, and education, EFTA member states have become more competitive in the global market.
  • EFTA membership has contributed to a higher standard of living and greater prosperity for the citizens of member states.

 

Challenges for EFTA

  • The EU remains EFTA's largest trading partner, but it also poses a significant challenge. The EU's larger size and economic power give it an advantage in negotiations, and some EFTA businesses have expressed concerns about being at a disadvantage compared to their EU counterparts.
  • With the ongoing integration of the EU, EFTA needs to ensure that it remains relevant and attractive to potential members and trading partners. The association needs to continue to find ways to differentiate itself from the EU and to offer unique benefits to its members.
  • The global economy is constantly evolving, and EFTA needs to be able to adapt to these changes. The association needs to focus on emerging markets and new technologies to ensure that its members remain competitive in the long term.
 
3. The Way Forward
 
EFTA remains a vital economic force in Europe. The association is well-positioned to continue to prosper in the coming years, thanks to its strong member states, its focus on free trade and economic cooperation, and its adaptability. By continuing to adapt to the changing global economy and by finding ways to differentiate itself from the EU, EFTA can ensure that it remains a relevant and successful organization for its members in the years to come.
 
 

For Prelims: European Union, free trade, European Free Trade Association, European Economic Community
 
For Mains: 
1. Examine the impact of Switzerland's policy on tariff-free entry for all industrial goods on India's potential gains from the ongoing India-EFTA Free Trade Agreement negotiations. (250 Words)
2. Discuss the strategies and opportunities for EFTA to remain relevant, differentiate itself, and adapt to the evolving global economy. (250 Words)
Source: The Indian Express
 

INSURANCE REGULATORY DEVELOPMENT AUTHORITY OF INDIA (IRDAI)

 

1. Context

A free-look period of 30 days, no life insurance policy to be issued without nomination and permission for insurers to open a new place of business without prior approval are among the changes the Insurance Regulatory and Development Authority of India (IRDAI) is proposing to consolidate as many as eight regulations

2. Insurance Regulatory Development Authority of India (IRDAI)

  • The Insurance Regulatory and Development Authority of India or the IRDAI is the apex body responsible for the regulation and development of the insurance industry in India.
  • It is an autonomous body.
  • It was established by an act of Parliament known as the Insurance Regulatory and Development Authority Act, of 1999. Hence, it is a statutory body.

3. IRDA Functions

  • Its primary purpose is to protect the rights of the policyholders in India.
  • It gives the registration certificate to insurance companies in the country.
  • It also engages in the renewal, modification, cancellation, etc. of this registration.
  • It also creates regulations to protect policyholders interests in India.

4. What does the new IRDAI rule say?

  • IRDAI has asked insurance companies, including life and non-life, to fix an overall cap on commission to agents, brokers, and other intermediaries, giving more flexibility to insurers in managing their expenses.
  • This means the regulator has replaced the earlier cap on different commission payments to various types of intermediaries with an overall board-approved cap which should be within the allowed expenses.

5. What is the Objective?

The rationale of the regulation is to enable and provide flexibility to the insurers, both life and general insurers to manage their expenses within the overall limits based on their gross written premium to optimally utilize their resources for enhancing benefits to policyholders.

6. How will this move benefit insurance companies and agents?

  • The insurance sector participants have welcomed the change in the regulation and termed it a major reform.
  • They said the removal of the cap on commission payments will positively impact the sector.
  • Currently, the limit of EOM in the general insurance business is 30 percent, and in health insurance is 35 percent.
  • The insurance companies are paying insurance intermediaries a commission of 15 percent of the total premium business they are bringing in.
  • The new regulation has removed the cap. However, the overall limit of EOM will remain.
  • With the new regulations, an insurance company can pay a higher commission to an agent if the business brought in is good and claim-free.
  • The liberty to give a commission to an agent is left to the company.
  • The new norms will facilitate greater product innovation and the development of new product distribution models and lead to more customer-centric operations.
  • It will also increase insurance penetration and provide flexibility to insurers in managing their expenses. Overall, it will smoothen adherence to compliance norms.

7. What benefit will consumers get?

  • Post the changes in regulations, insurance agents are likely to be more interested in selling insurance products and explaining policy details to consumers beforehand.
  • The claim ratio of these agents will also be better.
  • When claim outgoes are within the overall manageable limit, an insurance company may not increase the premium, which will be beneficial for consumers.
  • This move will also help in increasing insurance penetration as agents will get higher commissions.
  • IRDAI said the regulation will come into force from April 1, 2023, and will remain in force for a period of three years thereafter. 

8. What do Expenses of Mangement mean?

  • Expenses of Management (EOM) include all expenses in the nature of operation expenses of general or health Insurance business and commission to the insurance agents or insurance intermediaries.
  • It also includes commission and expenses on reinsurance inward, which are charged to the revenue account.

For Prelims

For Prelims: Insurance Regulatory Development Authority of India (IRDAI), Insurance Regulatory and Development Authority Act, of 1999, and Expenses of Management (EOM).
 
Source: The Indian Express
 
Previous year Question
 
1. The Insurance Regulatory and Development Authority (IRDA) Act was passed in the year? (TNPSC Group -1, 2014)
A. 1986
B. 1991
C. 1999
D. 2005
Answer: B
 
2. IRDAI has set up a panel under whose chairmanship to examine the need for standard cyber liability insurance product? (CGPSC Civil service 2020)
A. Pravin Kutumbe
B. P. Umesh
C. K. Ganesh
D. T. L. Alamelu
Answer: B
 
 

RENEWABLE ENERGY

 

 

1. Context

India has ambitious renewable-energy (RE) goals and currently ranks fourth globally in installed RE capacity. With a goal of tripling the capacity by 2030, the RE sector will play a pivotal role in realising India’s vision to be a green economy. Last year, the Ministry of New and Renewable Energy (MNRE) prescribed an annual bidding trajectory for about 50 GW of RE capacity between 2023 and 2028.

2. Why use Renewable energy

  • Today we primarily use fossil fuels to heat and power our homes and fuel our cars. 
  • It’s convenient to use coal, oil, and natural gas for meeting our energy needs, but we have a limited supply of these fuels on Earth. 
  • We’re using them much more rapidly than they are being created. Eventually, they will run out. 
  • And because of safety concerns and waste disposal problems, the United States will retire much of its nuclear capacity by 2020. 
  • In the meantime, the nation’s energy needs are expected to grow by 33 per cent during the next 20 years. 
  • Renewable energy can help fill the gap
  • Even if we had an unlimited supply of fossil fuels, using renewable energy is better for the environment. 
  • We often call renewable energy technologies “clean” or “green” because they produce few if any pollutants. 
  • Burning fossil fuels, however, sends greenhouse gases into the atmosphere, trapping the sun’s heat and contributing to global warming. 
  • Climate scientists generally agree that the Earth’s average temperature has risen in the past century. 
  • If this trend continues, sea levels will rise, and scientists predict that floods, heat waves, droughts, and other extreme weather conditions could occur more often. 
  • Other pollutants are released into the air, soil, and water when fossil fuels are burned. 
  • These pollutants take a dramatic toll on the environment—and humans. 
  • Air pollution contributes to diseases like asthma. 
  • Acid rain from sulfur dioxide and nitrogen oxides harms plants and fish. Nitrogen oxides also contribute to smog.
  • Renewable energy will also help us develop energy independence and security. 
  • Replacing some of our petroleum with fuels made from plant matter, for example, could save money and strengthen our energy security. 
  • Renewable energy is plentiful, and the technologies are improving all the time. 
  • There are many ways to use renewable energy. 
  • Most of us already use renewable energy in our daily lives.
 

2.1.Hydropower 

  • Hydropower is our most mature and largest source of renewable power, producing about 10 per cent of the nation’s electricity. 
  • Existing hydropower capacity is about 77,000 megawatts (MW). Hydropower plants convert the energy in flowing water into electricity. 
  • The most common form of hydropower uses a dam on a river to retain a large reservoir of water. Water is released through turbines to generate power.
  •  “Run of the river” systems, however, divert water from the river and direct it through a pipeline to a turbine. 
  • Hydropower plants produce no air emissions but can affect water quality and wildlife habitats. 
 

2.2.Bioenergy 

  • Bioenergy is the energy derived from biomass (organic matter), such as plants. If you’ve ever burned wood in a fireplace or campfire, you’ve used bioenergy. 
  • But we don’t get all of our biomass resources directly from trees or other plants. 
  • Many industries, such as those involved in construction or the processing of agricultural products, can create large quantities of unused or residual biomass, which can serve as a bioenergy source. 
 

2.3.Geothermal Energy 

  • The Earth’s core, 4,000 miles below the surface, can reach temperatures of 9000° F. 
  • This heat—geothermal energy—flows outward from the core, heating the surrounding area, which can form underground reservoirs of hot water and steam. 
  • These reservoirs can be tapped for a variety of uses, such as to generate electricity or heat buildings. 
  • By using geothermal heat pumps (GHPs), we can even take advantage of the shallow ground’s stable temperature for heating and cooling buildings. 
 

2.4.Solar Energy 

  • Solar technologies tap directly into the infinite power of the sun and use that energy to produce heat, light, and power.
 

2.5. Wind Energy 

  • For hundreds of years, people have used windmills to harness the wind’s energy. 
  • Today’s wind turbines, which operate differently from windmills, are a much more efficient technology. 
  • Wind turbine technology may look simple: the wind spins turbine blades around a central hub; the hub is connected to a shaft, which powers a generator to make electricity. 
  • However, turbines are highly sophisticated power systems that capture the wind’s energy using new blade designs or airfoils. 
  • Modern, mechanical drive systems, combined with advanced generators, convert that energy into electricity. 
  • Wind turbines that provide electricity to the utility grid range in size from 50 kW to 6 
  • Wind energy has been the fastest growing source of energy since 1990.
 

2.6.Ocean Energy 

  • The ocean can produce two types of energy: thermal energy from the sun’s heat, and mechanical energy from the tides and waves. 
  • Ocean thermal energy can be used for many applications, including electricity generation. 
  • Electricity conversion systems use either the warm surface water or boil the seawater to turn a turbine, which activates a generator. 
  • The electricity conversion of both tidal and wave energy usually involves mechanical devices. 
  • A dam is typically used to convert tidal energy into electricity by forcing the water through turbines and activating a generator. 
  • Meanwhile, wave energy uses mechanical power to directly activate a generator or to transfer to a working fluid, water, or air, which then drives a turbine/generator.

2.7.Hydrogen 

  • Hydrogen is high in energy, yet its use as a fuel produces water as the only emission. 
  • Hydrogen is the universe’s most abundant element and also its simplest. 
  • A hydrogen atom consists of only one proton and one electron. 
  • Despite its abundance and simplicity, it doesn’t occur naturally as a gas on the Earth. 
  • Today, industry produces more than 4 trillion cubic feet of hydrogen annually. 
  • Most of this hydrogen is produced through a process called reforming, which involves the application of heat to separate hydrogen from carbon. Researchers are developing highly efficient, advanced reformers to produce hydrogen from natural gas for what’s called Proton Exchange Membrane fuel cells.
 

3. Steps were taken by the government to promote Renewable energy

The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020.

 

3.1.Distribution of prominent renewable energy Hubs

  • Rajasthan
  • Gujarat
  • Andhra Pradesh
  • Karnataka
  • Telangana
  • Tamil Nadu

3.2.Steps taken

  • Permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route,
  • Waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
  • Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
  • Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug-and-play basis,
  • Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, etc,
  • Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power,
  • Setting up of Project Development Cell for attracting and facilitating investments,
  • Standard Bidding Guidelines for tariff-based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
4. Employment Generation
 
  • Deployment of large-scale renewable energy (RE) has the potential to create numerous employment opportunities in rural India in the coming decades. By 2030, it is projected that the clean-energy sectors could provide jobs for around one million individuals in the country.
  • However, the expansion of RE may have significant impacts on communities reliant on the land, involving changes in land use, modifications to ecosystems, shifts in livelihoods, and overall effects on land productivity.
  • As India progresses in scaling up RE, striking a balance between these interests may result in project commissioning delays, contributing to a waning interest among developers in RE tenders.
  • In 2020, wind developers, facing setbacks such as delays in land allocation, sought to terminate power-purchase agreements for approximately 565 MW wind capacity signed with the Solar Energy Corporation of India (SECI), prompting a decline in developers' enthusiasm for RE projects. Commissioning delays not only pose substantial financial risks but also jeopardize the reputation of RE developers.
  • In the pursuit of responsible RE deployment and the enhancement of communities in and around project sites, many developers actively support local development activities and community-led programs through corporate social responsibility (CSR) initiatives.
  • As an illustration, Tata Power Solar has established integrated vocational training programs for women and youth in multiple project sites.
  • Given the pivotal role of project developers in interacting with communities during land acquisition, construction, and operational phases, they play a crucial role in driving responsible practices. Additionally, regulators and investors prioritize assessing the responsible practices of new projects.
  • To encourage all developers to contribute to the rapidly growing RE ecosystem and promote responsible practices, two essential prerequisites need to be addressed
5. Way forward
 
The push for responsible energy is not to create new barriers for developers but is with the benefit of hindsight, that energy projects have externalities that must be addressed at the outset before they become entrenched. Responsible RE will strengthen the renewable ecosystem in India, and address roadblocks in siting, public acceptance and find the right synergy between energy security, society and the environment
 
 
 
Source: The Hindu
 

WILDLIFE PROTECTION ACT 1972

 
 
 
 
1. Context
 
 
Recently, Kerala Legislative Assembly unanimously passed a resolution urging the Union Government to amend relevant sections of the Wildlife Protection Act of 1972 to address the escalating human-animal conflict in the state.

 
2. The Wildlife (Protection) Act, 1972

The Wildlife (Protection) Act of 1972 serves as a legal framework aimed at safeguarding various species of wild animals and plants, managing their habitats, and regulating and controlling trade in wildlife and wildlife products. It plays a crucial role in conservation efforts and biodiversity preservation in India.

Key Provisions

  • The Act categorizes species into different schedules based on their conservation status, providing varying degrees of protection and monitoring by the government.
  • India's accession to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) was facilitated by the Wildlife Act.
  • The Act now extends to Jammu and Kashmir following the reorganization act.

Constitutional Framework

  • The 42nd Amendment Act, 1976, transferred Forests and Protection of Wild Animals and Birds from the State to the Concurrent List.
  • Article 51 A (g) mandates citizens to protect and improve the natural environment, including forests and wildlife.
  • Article 48 A in the Directive Principles of State Policy emphasizes the state's duty to protect and improve the environment, safeguarding forests, and wildlife.

Schedules under the Act

  • Schedule I: Encompasses endangered species requiring stringent protection, with severe penalties for violations. Hunting is prohibited except in cases of threat to human life or incurable disease.
  • Schedule II: Includes species accorded high protection with trade prohibition.
  • Schedule III & IV: Lists non-endangered species with hunting prohibition, but with lesser penalties compared to Schedules I and II.
  • Schedule V: Contains vermin species that can be hunted, comprising Common Crows, Fruit Bats, Rats, and Mice.
  • Schedule VI: Regulates the cultivation and trade of specified plants, requiring prior permission for cultivation, possession, sale, and transportation.

Examples of Protected Species

  • Schedule I: Black Buck, Snow Leopard, Himalayan Bear, Asiatic Cheetah.
  • Schedule II: Assamese Macaque, Himalayan Black Bear, Indian Cobra.
  • Schedule III & IV: Chital (spotted deer), Bharal (blue sheep), Hyena, Sambhar (deer).
  • Schedule V: Common Crows, Fruit Bats, Rats, Mice.
  • Schedule VI: Beddomes’ cycad, Blue Vanda, Red Vanda, Kuth, Slipper orchids, Pitcher plant.
 

3. Initiatives and Challenges under the Wildlife (Protection) Act, 1972

Initiatives for Wildlife Development

  • Project Tiger Conservation Launched in 1973, Project Tiger aims to conserve the tiger population with ongoing support from the Ministry of Environment, Forest, and Climate Change.
  • Project Elephant Established in 1992, Project Elephant focuses on the protection and conservation of elephants.
  • Wildlife Corridors These corridors, connecting protected areas, facilitate the movement of wildlife. India is planning its first urban wildlife corridor between New Delhi and Haryana to ensure safe passage for animals like leopards.

Challenges in Implementation

  • Despite the Act's existence for over 50 years, many are still unaware of wildlife conservation's significance and the associated laws.
  • Increasing human populations and encroachment into wildlife habitats result in heightened conflicts, often leading to illegal killing of wildlife.
  • Despite stringent laws, India faces a significant challenge from poaching and illegal wildlife trade.
  • Inadequate coordination between the forest department and other agencies hampers effective enforcement of the Act.
  • Existing penalties for wildlife crimes may not serve as sufficient deterrents due to their low fines and sentences.
  • Local community involvement is essential for successful conservation efforts, but it's often lacking.
  • Climate Change poses a significant threat to wildlife habitats, necessitating consideration within the Act to mitigate its impacts.
 
4. Reasons for passing a resolution

Demand to amend section on hunting
  • Section 11 of the 1972 Act currently governs the regulation of hunting wild animals. Under clause (1)(A) of this section, the Chief Wildlife Warden (CWLW) of a state is empowered to authorize the hunting or killing of a wild animal listed in Schedule I (mammals) if it is deemed dangerous to human life, or if it is disabled or terminally ill beyond recovery.
  • The section further grants the CWLW the authority to order the killing of such an animal if attempts to tranquilize or relocate it prove unsuccessful.
  • Kerala is proposing an amendment to Section 11(1)(A), seeking to transfer the aforementioned powers from the CWLW to the Chief Conservators of Forests (CCF). This amendment is aimed at streamlining the process for addressing wild animals that pose a threat to human safety, allowing for more prompt decision-making at a decentralized level.
  • With five CCFs overseeing different regions of the state, Kerala believes that empowering them with these responsibilities would enhance efficiency and responsiveness in dealing with such situations.

Demand to declare wild boar as vermin
  • Kerala is urging the Central Government to designate wild boar as vermin under Section 62 of the Wildlife Protection Act.
  • This provision allows the Union Government to categorize any wild animal listed in Schedule II of the Act, which typically safeguards them from hunting, as vermin for a specified duration in a particular area or state.
  • The declaration of an animal as vermin is warranted when it presents a significant threat to human life and agricultural crops.
  • By attaining vermin status, wild boars would no longer be shielded from hunting regulations. This would empower both the state authorities and citizens to manage the wild boar population through culling measures, thereby safeguarding lives and livelihoods from the adverse impacts posed by this species.
 
5. Rising Tide of Human-Animal Conflict in Kerala
  • Kerala is grappling with an intensifying crisis of human-animal conflict, which has surged in recent years, posing grave risks to both lives and the state's agriculture. The situation reached a critical juncture when a radio-collared wild elephant intruded into a village in Wayanad, chasing villagers and tragically resulting in a fatal trampling incident.
  • Government statistics from the period of 2022-23 revealed a stark reality: there were 8,873 reported incidents of wild animal attacks, with wild elephants accounting for 4,193, wild boars for 1,524, tigers for 193, leopards for 244, and bison for 32.
  • Among these attacks, 27 fatalities were attributed to elephant encounters. Additionally, between 2017 and 2023, 20,957 instances of crop damage were recorded due to raids by wild animals, claiming the lives of 1,559 domestic animals, predominantly cattle.
  • Wild boars, notorious for ravaging farmlands, stand out as particularly problematic. Despite previous appeals to declare them as vermin being rejected by the Centre, Kerala took a proactive step in 2022 by empowering local self-governing bodies to deploy licensed shooters to address wild boar incursions into agricultural areas and human settlements.
  • However, this measure proved insufficient due to a lack of licensed shooters in villages and cumbersome procedures involving the forest department following each killing.
  • Consequently, the state is once again advocating for wild boars to be declared as vermin. Such a designation would grant villagers the authority to manage the menace independently, circumventing the bureaucratic hurdles that have hindered effective mitigation efforts thus far.
 
6. The Way Forward
 
Amending the Wildlife Protection Act to decentralize decision-making and declaring wild boar as vermin are crucial steps towards mitigating human-animal conflict in Kerala. These measures, coupled with proactive conservation initiatives, are essential for safeguarding lives, livelihoods, and biodiversity in the state.
 
 
For Prelims: World life Protection Act, Climate Change, human-Animal Conflict, Article 48 A, Article 51 A 
 
For Mains: 
1. Critically examine the effectiveness of the Wildlife Protection Act (WPA), 1972, in addressing the increasing cases of human-animal conflict in India. (250 Words)
2. Discuss the potential economic benefits of ecotourism and sustainable wildlife management practices in India. (250 Words)
 
 
Previous Year Questions

1. If a particular plant species is placed under Schedule VI of the Wildlife Protection Act, 1972, what is the implication? (UPSC 2020)

(a) A licence is required to cultivate that plant.
(b) Such a plant cannot be cultivated under any circumstances.
(c) It is a Genetically Modified crop plant.
(d) Such a plant is invasive and harmful to the ecosystem.

Answer: A

Source: The Indian Express
 

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