SPECIAL CATEGORY STATUS(SCS)
Special Category Status (SCS) is a classification given by the Indian government to certain states that face geographical and socio-economic challenges. This status provides these states with special assistance and various concessions from the central government to address their unique challenges and promote their development. The concept was introduced in 1969 based on the recommendations of the Fifth Finance Commission.
Key features of Special Category Status include:
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Central Assistance: States with SCS receive more significant financial assistance from the central government. This includes higher grants and subsidies for central schemes.
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Concessional Funding: The central government provides financial support in the form of a 90:10 ratio for centrally sponsored schemes (CSS), where 90% of the funding is a grant from the central government, and only 10% is to be provided by the state. For other states, this ratio is typically 60:40.
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Tax Concessions: Industries set up in these states may receive various tax benefits to encourage industrialization and economic development.
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Debt Relief: These states often get better terms for debt repayment and lower interest rates on loans from the central government.
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Infrastructural Development: Special Category Status can also bring prioritization in infrastructural development projects, including roads, airports, and railways, which are crucial for connectivity and growth.
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Higher Plan Assistance: States with SCS are entitled to higher central plan assistance for their development projects.
Which states presently have SCS?
Currently, 11 States in India — Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand — have SCS
![]() Source: The Hindu
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Five factors that are considered before granting SCS to a State:
- Hilly and difficult terrain
- Low population density and/or sizeable share of tribal population
- Strategic location along international borders
- Economic and infrastructural backwardness
- Non-viable nature of State finances
Andhra Pradesh has been demanding Special Category Status (SCS) for several reasons, primarily linked to the economic and developmental challenges it faced following the bifurcation of the state in 2014, which led to the creation of the new state of Telangana.
Here are the key reasons for Andhra Pradesh's demand:
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Economic Disadvantages Post-Bifurcation: The bifurcation resulted in Andhra Pradesh losing Hyderabad, a major economic hub with substantial revenue generation, to Telangana. This left Andhra Pradesh with reduced revenue sources and significant fiscal challenges.
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Promise Made During Bifurcation: The central government, during the process of bifurcation, had assured Andhra Pradesh that it would be granted Special Category Status for a period of five years to help the state cope with the economic impact. This promise was seen as a crucial measure to ensure the state's development and financial stability.
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Infrastructure and Developmental Needs: Post-bifurcation, Andhra Pradesh had to build a new capital (Amaravati) and develop its infrastructure from scratch. Special Category Status would provide the state with higher central assistance and concessional funding to support these massive developmental needs.
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Comparative Disadvantage: Andhra Pradesh argues that without Special Category Status, it is at a disadvantage compared to states like Telangana, which inherited significant infrastructure and economic assets. SCS would help bridge this gap by providing additional financial resources.
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Political and Public Pressure: There is significant public and political pressure within Andhra Pradesh for the fulfilment of the promise of Special Category Status. The demand has become a major political issue, with various parties and leaders pushing for it as a means to ensure the state's economic growth and development.
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Developmental Incentives: Special Category Status brings various benefits, including higher grants from the central government, tax incentives for industries, and more favourable terms for debt and funding of central schemes. These incentives are seen as essential for boosting industrialization, employment, and overall economic growth in the state
- The 14th Finance Commission recommended discontinuing the practice of granting Special Category Status to states. It suggested that the distinction between Special Category and non-Special Category states should be removed for a more uniform approach to state assistance
- To compensate for the discontinuation of Special Category Status, the Commission recommended a significant increase in the share of states in the divisible pool of central taxes from 32% to 42%. This aimed to give states greater financial autonomy and more resources to address their specific needs
- The Commission proposed that all states should be treated equally in terms of devolution of funds, thereby removing any preferential treatment that Special Category Status provided. This was intended to simplify the financial assistance mechanism and ensure a more transparent and equitable distribution of resources.
- Although the 14th Finance Commission recommended discontinuing SCS, it acknowledged the need for special assistance to certain states facing unique challenges. It suggested that such states could receive targeted central assistance through specific schemes and programs rather than through a separate category status.
- The Commission emphasized the use of objective criteria for the allocation of resources to states, including factors like population, income distance, area, forest cover, and demographic performance. This approach aimed to ensure that funds were distributed based on measurable needs and performance indicators rather than a special status designation.
Several states have been demanding Special Category Status (SCS) from the central government. These demands stem from various economic, developmental, and political considerations. Here are some of the states that have actively sought SCS:
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Andhra Pradesh: Andhra Pradesh has been one of the most vocal in demanding SCS, primarily due to the economic disadvantages it faced following the bifurcation of the state in 2014, which led to the creation of Telangana. The loss of Hyderabad, a major economic and revenue-generating city, has been a significant factor in this demand.
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Bihar: Bihar has been consistently demanding SCS to address its developmental challenges, including high poverty rates, low per capita income, and underdeveloped infrastructure. The state argues that SCS would help accelerate its economic growth and improve living standards.
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Odisha: Odisha has sought SCS citing its high tribal population, frequent natural disasters, and overall economic backwardness. The state government believes that additional central assistance and concessions would aid in its development efforts.
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Rajasthan: Rajasthan has also demanded SCS, highlighting its large desert areas, water scarcity issues, and economic challenges. The state seeks special financial support to overcome these hurdles and promote sustainable development.
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Chhattisgarh: Chhattisgarh, with its significant tribal population and issues related to naxalism (left-wing extremism), has been advocating for SCS to receive better financial assistance for security and developmental initiatives.
- States with SCS receive more significant financial assistance from the central government.
- This includes grants and funds for development projects and centrally sponsored schemes.
- For centrally sponsored schemes (CSS), SCS states typically receive funding in a 90:10 ratio (90% central funding and 10% state funding), compared to a 60:40 or 50:50 ratio for other states.
- This reduces the financial burden on the state government.
- Industries and businesses setting up operations in SCS states may receive various tax benefits and incentives.
- These concessions aim to promote industrialization and economic development in these regions.
- SCS states often get better terms for debt repayment, including lower interest rates on loans from the central government.
- SCS states receive priority for central government projects related to infrastructure development, such as roads, airports, and railways.
- States with SCS are eligible for additional grants and subsidies from various central government schemes.
- SCS states that face specific challenges, such as insurgency or border security issues, receive additional support from the central government for maintaining peace and security.
- States with difficult terrain, extensive forest cover, and unique geographic challenges receive support for environmental conservation and sustainable development.
For Prelims: Indian Polity and Governance
For Mains: GS-II:Indian Polity and Governance
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KATCHATHEEVU ISLAND
2. Location of Katchatheevu Island
Katchatheevu is a small, uninhabited island covering 285 acres situated in the Palk Strait, positioned between India and Sri Lanka. It measures approximately 1.6 kilometres in length and slightly over 300 meters wide at its widest point.
- The island is located northeast of Rameswaram, around 33 kilometres from the Indian coastline. It is situated approximately 62 kilometres southwest of Jaffna, which is at the northern tip of Sri Lanka. Moreover, Katchatheevu is about 24 kilometres away from Delft Island, an inhabited island that belongs to Sri Lanka.
- The notable feature on Katchatheevu Island is the St. Anthony’s Church, built in the early 20th century. This Catholic shrine holds cultural and religious importance, especially during its annual festival. Christian priests from both India and Sri Lanka conduct services during this festival, attracting devotees from both countries who make pilgrimages to the island. In 2023, around 2,500 Indians travelled from Rameswaram to participate in this significant event.
- Despite its religious and cultural significance, Katchatheevu is not suitable for permanent human settlement due to the absence of a reliable source of drinking water on the island. This limitation restricts any long-term habitation on the island, making it primarily a site for occasional religious gatherings and pilgrimages.
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3. Historical Background of Katchatheevu Island
Katchatheevu Island, formed as a result of a volcanic eruption in the 14th century, holds a relatively recent place in the geological timeline.
- During the early medieval period, Katchatheevu was under the control of the Jaffna kingdom of Sri Lanka. However, by the 17th century, control shifted to the Ramnad Zamindari, which was based in Ramanathapuram, approximately 55 kilometres northwest of Rameswaram.
- With the advent of colonial rule, Katchatheevu became part of the Madras Presidency under the British administration. In 1921, both India and Sri Lanka, then British colonies, laid claim to Katchatheevu to delineate fishing boundaries in the region.
- A survey conducted during this period marked Katchatheevu as part of Sri Lanka. However, a British delegation from India contested this claim, asserting ownership of the island by the Ramnad kingdom.
- The dispute over the ownership of Katchatheevu persisted until 1974 when a final resolution was reached. This resolution marked a significant milestone in clarifying the status of the island and delineating the maritime boundaries between India and Sri Lanka.
4. Indo-Sri Lankan Maritime Agreement and Fishing Rights
In 1974, efforts were made by then-Prime Minister Indira Gandhi to resolve the maritime border dispute between India and Sri Lanka permanently. This initiative led to the establishment of the 'Indo-Sri Lankan Maritime Agreement,' which resulted in the cession of Katchatheevu to Sri Lanka by India.
- Under the agreement, Indira Gandhi decided to "cede" Katchatheevu to Sri Lanka, perceiving the island to hold little strategic value for India. This move was intended to strengthen diplomatic ties between the two neighbouring countries.
- Despite ceding the island, Indian fishermen were granted continued access to Katchatheevu as per the agreement, maintaining their traditional fishing practices in the region. However, the agreement did not explicitly address the issue of fishing rights, leading to subsequent challenges and differing interpretations.
- Sri Lanka interpreted Indian fishermen's access to Katchatheevu as limited to activities such as resting, drying nets, and visiting the Catholic shrine, without requiring a visa. This interpretation created ambiguity regarding the extent of fishing rights granted to Indian fishermen in the waters surrounding Katchatheevu.
- In 1976, another agreement during India's Emergency period further complicated matters by prohibiting both countries from fishing in each other's Exclusive Economic Zones (EEZs). However, Katchatheevu lies at the boundary of both countries' EEZs, adding to the uncertainty surrounding fishing rights and activities in the region.
- The agreements made in the 1970s regarding Katchatheevu and fishing rights have left unresolved issues, contributing to periodic tensions and disputes between Indian fishermen and Sri Lankan authorities. The lack of clear delineation and mutual understanding regarding fishing access around Katchatheevu continues to be a contentious issue between India and Sri Lanka.
5. Impact of the Sri Lankan Civil War on Katchatheevu
The period between 1983 and 2009 was marked by the Sri Lankan Civil War, during which the border dispute involving Katchatheevu took a back seat amidst the intense conflict.
- During the civil war, Sri Lankan naval forces were primarily focused on combating the Liberation Tigers of Tamil Eelam (LTTE) based in Jaffna. This preoccupation allowed Indian fishermen to venture deep into Sri Lankan waters without significant repercussions. Incursions by Indian fishermen, especially using larger trawlers, became common during this time. These activities led to tensions as they not only overfished but also caused damage to Sri Lankan fishing equipment and vessels.
- The end of the civil war in 2009 brought about significant changes. Sri Lanka bolstered its maritime defences and shifted its attention to issues such as illegal fishing activities by Indian fishermen.
- Indian fishermen, facing resource depletion in Indian waters, continued to venture into Sri Lankan waters as they had done for years. However, with increased surveillance and stricter enforcement post-civil war, they began facing arrests and other consequences by the Sri Lankan navy.
- To this day, the Sri Lankan navy regularly apprehends Indian fishermen for illegal fishing activities in Sri Lankan waters. Incidents of alleged custodial torture and deaths have also been reported, further complicating the situation. Each such incident reignites demands to revisit the issue of Katchatheevu and its impact on fishing rights and maritime boundaries between India and Sri Lanka. The historical context of the island's ownership and fishing rights continues to be a source of contention and debate between the two nations.
6. Tamil Nadu's Stance on Katchatheevu
The issue of Katchatheevu holds significant political and emotional weight in Tamil Nadu, with successive governments and leaders advocating for its retrieval and the restoration of fishing rights for Tamil fishermen.
- The decision to "cede" Katchatheevu to Sri Lanka in 1974 without consulting the Tamil Nadu state assembly sparked immediate protests. This decision was seen as infringing on traditional fishing rights and livelihoods of Indian Tamil fishermen, given the historical ties of the Ramnad Zamindari to the island.
- The Tamil Nadu Assembly has consistently demanded the retrieval of Katchatheevu and the restoration of fishing rights. Leaders like J Jayalalitha and MK Stalin, among others, have actively pursued this agenda through legal and diplomatic channels.
- In 2008, Jayalalitha filed a petition arguing that ceding Katchatheevu required a constitutional amendment and had adversely affected fishermen's rights. Similar efforts were made by other leaders, including appeals to the Supreme Court.
- Despite Tamil Nadu's persistent demands, the Union government's stance has remained unchanged. It asserts that since Katchatheevu has been under dispute historically, no territorial or sovereignty claims were ceded.
- While there is vocal demand for Katchatheevu's retrieval, practical challenges hinder such efforts. The Union government has pointed out that revisiting Katchatheevu's status would require drastic measures, potentially leading to diplomatic complexities or conflict.
7. The Way Forward
For Prelims: India-Sri Lanka, Katchatheevu island, LTTE, Sri Lanka Civil War, Exclusive Economic Zones
For Mains:
1. The Katchatheevu dispute highlights the complexities of maritime border demarcation. How can India ensure the security of its fishermen and promote sustainable fishing practices in the Palk Strait? (250 words)
2. You are a senior diplomat tasked with finding a solution to the Katchatheevu dispute. Outline a framework for negotiations that considers the historical, economic, and social aspects of the issue. (250 words)
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Previous Year Questions
1. Katchatheevu Island was ceded by India to which Country in 1974 (SSC CPO 2017)
A. Sri Lanka B.Maldives C.Indonesia D.Myanmar
2. With reference to the United Nations Convention on the Law of Sea, consider the following statements: (UPSC 2022)
1. A coastal state has the right to establish the breadth of its territorial sea up to a limit not exceeding 12 nautical miles, measured from baseline determined in accordance with the convention.
2. Ships of all states, whether coastal or land-locked, enjoy the right of innocent passage through the territorial sea.
3. The Exclusive Economic zone shall not extend beyond 200 nautical miles from the baseline from which the breadth of the territorial sea is measured.
Which of the statements given above are correct?
A.1 and 2 only B.2 and 3 only C.1 and 3 only D.1, 2 and 3
Answers: 1-A, 2-D
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EUROPEAN UNION (EU)
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The European Parliament (EP) represents the citizens of EU member states. Its main roles include negotiating EU laws with member state governments, which are represented by the European Council.
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The EP also has the authority to approve the EU budget, vote on international agreements, and decide on the enlargement of the bloc. Additionally, it can approve or reject the appointment of the European Commission president — currently Germany’s Ursula von der Leyen — and the commissioners.
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Unlike national parliaments, the EP does not have the right to propose laws; it can only negotiate those proposed by the executive European Commission.
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The EP consists of 720 Members (MEPs) who are elected every five years. These MEPs then elect their president for a term of two and a half years.
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In 21 member states, individuals aged 18 and above can vote.
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Citizens living in another EU country can choose to vote for candidates either from their home country or from their country of residence.
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In some member states, voters can only choose closed lists where they cannot change the order of preferred candidates, while in others, they can select individual candidates in a preferential system.
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All candidates must be EU citizens. Depending on the country, voters may choose from individual candidates or political parties’ delegates. Once elected, politicians from each nation join the European groups in the Parliament based on their political orientations. Elected individuals cannot hold positions in national governments or other political bodies such as the EU Commission
What are the member countries of the EU?
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden
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1945-1957: Post-War Integration Efforts
- 1945: After the devastation of World War II, European countries seek to ensure lasting peace and economic stability.
- 1951: The European Coal and Steel Community (ECSC) is established by the Treaty of Paris, signed by Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. This organization aims to integrate the coal and steel industries of member countries, making war between them "materially impossible."
1957: The Treaties of Rome
- 1957: The Treaties of Rome are signed, establishing the European Economic Community (EEC) and the European Atomic Energy Community (EURATOM). The EEC aims to create a common market and a customs union among its members
960s-1980s: Growth and Challenges
- 1973: The first enlargement of the EEC occurs, with Denmark, Ireland, and the United Kingdom joining the Community.
- 1981: Greece becomes a member, followed by Spain and Portugal in 1986.
- 1986: The Single European Act is signed, aiming to create a single market by 1992, ensuring the free movement of goods, services, capital, and people.
1990s: Political and Economic Union
- 1992: The Maastricht Treaty is signed, formally establishing the European Union. The treaty introduces new forms of cooperation between governments, such as a common foreign and security policy, and lays the foundation for economic and monetary union, including the creation of a single currency.
- 1995: Austria, Finland, and Sweden join the EU.
- 1999: The euro is introduced as the single currency for 11 EU countries, with physical currency (banknotes and coins) entering circulation in 2002.
2000s: Major Enlargement and Institutional Reforms
- 2004: The EU undergoes its largest expansion, with ten new countries (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia) joining.
- 2007: Bulgaria and Romania join the EU.
- 2009: The Lisbon Treaty comes into force, reforming the EU's institutional structure and increasing its powers in areas such as justice, security, and foreign policy
2010s: Economic Crises and Brexit
- 2010: The eurozone faces a significant debt crisis, prompting reforms and financial support mechanisms to stabilize the economies of member states.
- 2013: Croatia becomes the EU's 28th member state.
- 2016: The United Kingdom votes to leave the EU in a referendum, leading to Brexit.
- 2020: The UK officially leaves the EU on January 31, 2020
- The European Council comprises the heads of state or government of the EU member states, along with the President of the European Council and the President of the European Commission. The High Representative of the Union for Foreign Affairs and Security Policy also participates
- The European Council meets at least four times a year, usually in Brussels, Belgium. Additionally, extraordinary meetings can be convened to address urgent issues
- The European Council sets the EU's general political agenda and provides strategic leadership on key issues facing the EU. While it does not legislate or adopt laws, its decisions and recommendations guide the work of other EU institutions
- The European Council operates on the basis of consensus, with decisions typically reached through discussions and negotiations among its members. However, unanimity is not always required for certain decisions, particularly in areas where EU treaties allow for qualified majority voting
India and the European Union (EU) engage in cooperation across various sectors, reflecting their shared interests and objectives.
Some of the key areas of cooperation between India and the EU include:
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Trade and Investment: Both India and the EU are major trading partners. Efforts are underway to enhance bilateral trade relations through negotiations for a comprehensive free trade agreement known as the EU-India Broad-Based Trade and Investment Agreement (BTIA). Additionally, initiatives aim to promote investment flows between India and the EU.
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Political Dialogue and Strategic Partnership: India and the EU engage in regular political dialogues to discuss regional and global issues of mutual concern, including security, counter-terrorism, climate change, and sustainable development. They have established a strategic partnership framework to deepen cooperation in these areas.
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Research and Innovation: Collaboration in research and innovation is a growing area of cooperation between India and the EU. Joint research projects, technology partnerships, and academic exchanges are promoted to address common challenges and foster technological innovation.
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Education and Culture: India and the EU cooperate in the fields of education, culture, and people-to-people exchanges. Programs such as Erasmus+ facilitate student and academic mobility between India and EU member states, while cultural events and initiatives promote mutual understanding and appreciation.
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Energy and Climate Change: India and the EU collaborate on energy security, renewable energy, and climate change mitigation efforts. Dialogues and partnerships focus on promoting clean energy technologies, sustainable development, and the implementation of the Paris Agreement on climate change.
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Security and Counter-Terrorism: Cooperation in security and counter-terrorism is a priority for India and the EU. They exchange information, share best practices, and coordinate efforts to combat terrorism, cyber threats, and other transnational security challenges.
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Migration and Mobility: India and the EU engage in dialogue on migration and mobility issues, including legal migration, visa facilitation, and irregular migration management. Cooperation aims to promote safe, orderly, and regular migration flows while addressing challenges related to migration governance.
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Healthcare and Public Health: Collaboration in healthcare and public health is increasingly important, especially in areas such as pandemic preparedness, disease surveillance, and healthcare infrastructure development. India and the EU work together to strengthen health systems and respond to global health challenges.
For Prelims: Current events of national and international importance
For Mains: GS-II:GS-II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
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Previous Year Questions
1.Consider the following statements: (UPSC CSE 2023)
The ‘Stability and Growth Pact’ of the European Union is a treaty that 1. limits the levels of the budgetary deficit of the countries of the European Union 2. makes the countries of the European Union to share their infrastructure facilitie 3. enables the countries of the European Union to share their technologie How many of the above statements are correct (a) Only one (b) Only two (c) All three (d) None Answer (a)
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PRO-TEM SPEAKER
- A Protem Speaker, or Pro Tempore Speaker, is a temporary or acting Speaker of a legislative body, such as a parliament or house of representatives. This position is typically filled when the regular Speaker is absent, incapacitated, or the position is vacant. The Protem Speaker carries out the duties and responsibilities of the Speaker during this interim period.
- In many legislative systems, the Protem Speaker is often a senior or respected member of the legislature who is appointed to maintain the order and continuity of legislative proceedings. Their role is crucial in ensuring that legislative activities can continue without interruption and that procedural rules are followed
- The pro-tem Speaker is appointed by the President of India. This appointment is typically made from among the senior-most members of the Lok Sabha. The role of the pro-tem Speaker is to preside over the first meeting of the newly elected Lok Sabha, administer the oath of office to new members, and oversee the election of the Speaker of the Lok Sabha.
3.What are the duties of the pro-tem Speaker?