ECO SENSITIVE ZONE(ESZ)

1.Context

 Karnataka, Maharashtra, and Goa, three of the six states where the Centre has proposed eco-sensitive areas (ESA) to protect the Western Ghats, have sought a reduction in the extent of these ESAs to allow development works.

2. Eco-Sensitive Zone

• As per the National Wildlife Action Plan (2002-2016), issued by the Union Ministry of Environment, Forest and Climate Change, land within 10 km of the boundaries of national parks and wildlife sanctuaries is to be notified as eco-fragile zones or Eco-Sensitive Zones (ESZ).
• While the 10-km rule is implemented as a general principle, the extent of its application can vary. 
• Areas beyond 10 km can also be notified by the Union government as ESZs, if they hold larger ecologically important “sensitive corridors.”

1.1 Eco-Sensitive Zone (ESZ)

• The Eco-Sensitive Zone (ESZ) are areas in India notified by the Ministry of Environment, Forest and Climate Change (MoEFCC), GoI around Protected Areas, National Park and Wildlife sanctuaries. 

• Purpose: 

• To create some kind of "shock absorbers" to the protected areas by regulating and managing the activities around such areas. 
• Therefore, these areas act as a buffer for protected areas and reduce developmental pressures around a wildlife sanctuary or national park.
• They also act as a transition zone from areas of high protection to areas involving lesser protection.

• Range:

• All identified areas around Protected Areas and wildlife corridors to be declared as ecologically fragile under the Environment (Protection) Act, 1986 (National Wildlife Action Plan, 2002-2016).
• Eco-sensitive Zone could go up to 10 Kms around Protected Areas. 
• In cases where sensitive corridors, connectivity and ecologically important patches, crucial for landscape linkage, are even beyond 10 Kms width. 
• Further, Eco-sensitive zones may not be uniform all around and they could be variable in width and extent.

• Prohibited activities: 

• Activities like industries which cause pollution Commercial mining, sawmills, the establishment of major hydroelectric projects (HEP), commercial use of wood, Tourism, discharge of effluents or any solid waste or production of hazardous substances are all prohibited.

• Regulated activities:

• Activities like the felling of trees, establishment of hotels and resorts, commercial use of natural water, erection of electrical cables, drastic change of agriculture system, e.g. adoption of heavy technology, pesticides etc., widening of roads.

• Permitted activities:

• Activities like ongoing agricultural or horticultural practices, rainwater harvesting, organic farming, use of renewable energy sources, and adoption of green technology for all activities are permitted.

3. Reasons for the creation of an ecologically sensitive zone

• According to the guidelines issued by the Environment Ministry on February 9, 2011, ESZs are created as “shock absorbers” for the protected areas, to minimize the negative impact on the “fragile ecosystems” by certain human activities taking place nearby. Furthermore, these areas are meant to act as a transition zone from areas requiring higher protection to those requiring lesser protection.
• The guidelines also state that the ESZs are not meant to hamper the daily activities of people living in the vicinity, but are meant to guard the protected areas and “refine the environment around them”.
• To do so, the guidelines list the activities prohibited in an ESZ, such as commercial mining, saw mills, commercial use of wood, etc., apart from regulated activities like the felling of trees. Lastly, there are permitted activities like ongoing agricultural or horticultural practices, rainwater harvesting, and organic farming, among others.

Judgement of Supreme Court

• On June 3, a three-judge bench of the Supreme Court heard a PIL which sought to protect forest lands in the Nilgiris in Tamil Nadu, but was later expanded to cover the entire country.
• In its judgment, the court while referring to the 2011 guidelines as “reasonable”, as reported by Live Law, directed all states to have a mandatory 1-km ESZ from the demarcated boundaries of every protected forest land, national park and wildlife sanctuary.
• It also stated that no new permanent structure or mining will be permitted within the ESZ.
• If the existing ESZ goes beyond a 1-km buffer zone or if any statutory instrument prescribes a higher limit, then such extended boundary shall prevail, the court, as per the Live Law report, said.

4. Protests by the people

• Protests erupted across the high ranges of Kerala in response to the apex court’s directions. Due to the high density of human population near the notified protected areas, farmer’s groups and political parties have been demanding that all human settlements be exempt from the ESZ ruling.
• Alex Ozhukayil, the chairman of Kerala Independent Farmers’ Association (KIFA) claimed that the court’s decision would severely impact the livelihoods of farmers.
• He said, “The total extent of the wildlife sanctuaries in Kerala is eight lakh acres. If one km of ESZ is demarcated from their boundaries, around 4 lakh acres of human settlements, including farmlands, would come within that purview. This is a matter of sheer survival of lakhs of people.”
• The ruling Left Democratic Front and the Congress-led United Democratic Fund have both called for strikes in Idukki and Wayanad districts over the past weeks to oppose the 1-km order.
• Before the SC judgment, the Kerala state government had stated during an expert committee meeting of the Union Environment Ministry in March that all human settlements should be excluded from the buffer zones.
• The Kerala state government had proposed that for some national parks, such as the Thattekad Bird Sanctuary, the extent of the ESZ area should be reduced from the proposed uniform 1 km to an ESZ ranging from zero to 1 km in the eastern and south-eastern side of the national park.
• This was because the villagers occupying the densely populated settlements in these areas believed that the ESZ would restrict their agricultural and related activities.

4. Other similar challenges

• Developmental activities:

• Activities such as the construction of dams, roads, and urban and rural infrastructures in the ESZ, create interference, negatively impact the environment and imbalance the ecological system. 

• Blatant violations:

• To cater to the increasing demand for eco-tourism, the land around parks and sanctuaries are being cleared through deforestation, displacement of local people etc. 
• Failing to recognize the rights of forest communities and curbing poaching of animals, environmental legislations undermine the ESZs in favour of developmental activities. 

• Climate change:

• Biodiversity and climate change are interconnected, for example, the rise in global temperature has generated land, water and ecological stress on the ESZs. 

• Tourism-related Pollution:

• As the pressure of tourism is rising, the government is developing new sites and gateways to the ESZ. The tourists leave behind garbage such as plastic bags and bottles etc. which leads to environmental degradation.

• Local communities:

• Slash and burn techniques used in agriculture, the pressure of increasing population and the rising demand for firewood and forest produce, etc. exerts pressure on the protected areas.

5. Earlier protests 

• This is not the first time that Kerala has faced such protests. 
• In 2013, hartals first erupted in Idukki and Wayanad after the Kasturirangan committee report recommended that 60,000 km of the Western Ghats, covering 12 of Kerala’s 14 districts, be notified as ecologically sensitive areas.

H5N1

1. Context 

A Second human case of bird flu subtype H9N2 was detected in India earlier this year — the first having been reported in 2019 — according to the World Health Organization (WHO). 

2. Avian Influenza

• Avian Influenza, also known as Avian or Bird Flu, is a form of influenza caused by a virus found in birds.
• Avian Flu is similar to variants found in animals and humans – caused strains of influenza that have adapted to specific hosts.

3. Avian Influenza Type A viruses

• Type A viruses are classified based on two proteins on their surfaces – Hemagglutinin (HA) and Neuraminidase (NA). There are about 18 HA subtypes and 11 NA subtypes.
• Several combinations of these two proteins are possible e.g., H5N1, H7N2, H9N6, H17N10, H18N11, etc.
• All known subtypes of influenza A viruses can infect birds, except subtypes H17N10 and H18N11, which have only been found in bats.

Image Source: The Hindu

4. Effect on Birds

• Although avian influenza has different subtypes, H5N1 is a highly pathogenic subtype that causes mortality in birds.
• Since 2022, the virus has infected over 100 million birds across the globe, resulting in the deaths of over 50 million and the culling of millions of poultry.
• Unlike previous outbreaks of highly pathogenic subtypes of avian influenza, H5N1 is heavily impacting wild bird species, including many which were on the verge of extinction. 
• While it is difficult to ascertain how many wild birds have been affected by the virus, a significant impact has been seen in eagles, pelicans, geese, waterfowl, gulls, falcons, and shorebirds, in addition to the highest possible impact on poultry seen till date, at least in the U.S.
• The impact of H5N1 on wild bird populations has varied depending on several factors, such as the level of exposure, geographical locations, and migratory patterns of the affected species. 
  
• High mortality in wild birds due to the virus could lead to significant ecological consequences, including the vulnerability of predators and alterations in species composition in affected ecosystems, and therefore a possible impact on biodiversity not just limited to avian species. 
• It has raised concerns regarding the spread of the virus among critically endangered avian populations.  

5. Spreading to animals

• The highly contagious H5N1 virus can also occasionally spill over from birds to animals through direct or indirect contact with infected birds or their droppings. 
  
• Worryingly, there have been several reports on the spillover of H5N1 to mammals during the current outbreak from different countries, infecting species such as sea lions, minks, foxes, wild bears, and skunks, apart from domestic animals such as dogs and cats.
• In 2023 alone, H5N1 caused the deaths of over 3,000 sea lions in Peru. In a recent yet ­to­ be peer ­reviewed study, scientists found that the virus could efficiently spread between ferrets in the laboratory.
  
• The only known cases of the virus spreading between mammals were reported in minks that were raised in close confinement on a farm in Spain.
• The transmission of H5N1 from birds to mammals is rare, but when it does occur, it can be a cause for concern, as the virus could accumulate mutations and acquire the ability to potentially initiate human outbreaks.
• H5N1 has a high mortality rate of over 60% in humans and is primarily transmitted to humans through close contact with infected birds or animals, either through handling infected poultry or exposure to contaminated environments.

6. Enhanced Measures

• As the current H5N1 outbreak continues unabated with devastating impact on the avian population globally, and with significant ecological and economic consequences, the time has never been better to initiate efforts for preparedness towards building better, more efficient vaccines for avians and humans.
• Genomic surveillance should be done to map the continued evolution of the virus.
• Moreover, enhanced biosecurity measures are required to protect both animal and public health.

For Prelims: Avian influenza H5N1, Bird Flu, Hemagglutinin (HA) and Neuraminidase (NA), influenza A viruses, Genomic surveillance, Pathogens, and Viruses.

Previous year Questions

1. H1N1 virus is sometimes mentioned in the news with reference to which one of the following diseases? (UPSC 2015) A. AIDS B.  Bird flu C.  Dengue D.  Swine flu Answer: D 2. Consider the following statements : (UPSC 2010) 1. Every individual in the population is an equally susceptible host for Swine Flu. 2. Antibiotics have no role in the primary treatment of Swine Flu. 3. To prevent the future spread of Swine Flu in the epidemic area, the swine (pigs) must all be culled. Which of the statements given above is/are correct? A. 1 and 2 only B. 2 only C. 2 and 3 only D. 1, 2 and 3 Answer: A 3. Which of the following statements is/are correct? (UPSC 2013) 1. Viruses lack enzymes necessary for the generation of energy. 2. Viruses can be cultured in any synthetic medium. 3. Viruses are transmitted from one organism to another by biological vectors only. Select the correct answer using the codes given below. A. 1 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3 Answer: A

Source: The Hindu

 

SPECIAL CATEGORY STATUS(SCS)

 

 

 

1. Context

 Telugu Desam Party (TDP) president N Chandrababu Naidu emerged as a key player in national politics, after his party won 16 seats in the Lok Sabha election. TDP is in alliance with the Jana Sena Party and the BJP in Andhra Pradesh. Naidu’s support is critical for the BJP, which has only 240 seats in Lok Sabha. In return, Naidu is likely to extract several promises and assurances, the most important of which will be the status of a Special Category State for Andhra Pradesh

 

2. What is a Special Category Status?

 

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:

• Central Assistance: States with SCS receive more significant financial assistance from the central government. This includes higher grants and subsidies for central schemes.

• 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.

• Tax Concessions: Industries set up in these states may receive various tax benefits to encourage industrialization and economic development.

• Debt Relief: These states often get better terms for debt repayment and lower interest rates on loans from the central government.

• 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.

• Higher Plan Assistance: States with SCS are entitled to higher central plan assistance for their development projects.

States that have been accorded Special Category Status typically face challenges like hilly and difficult terrain, low population density or the presence of sizeable tribal populations, strategic international borders, economic and infrastructural backwardness, and non-viable state finances.

 

 

 

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

 

 

3. What are the criteria for SCS designation?

 

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

 

4. Why is Andhra Pradesh demanding Special Category Status?

 

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:

• 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.

• 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.

• 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.

• 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.

• 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.

• 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

 

5. What does The 14th Finance Commission say about the Special Category status?

 

The 14th Finance Commission, which was constituted in January 2013 and submitted its report in December 2014, made several key recommendations regarding the concept of Special Category Status (SCS).

 

Here's a summary of its stance and recommendations:

• 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.

6. Which states are demanding the Special Category Status?

 

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:

• 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.

• 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.

• 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.

• 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.

• 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.

 

7. What are the Benefits of SCS?

 

The benefits of Special Category Status (SCS) in India include various financial and developmental incentives aimed at addressing the unique challenges faced by certain states. Here are the primary benefits:

 

• 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.

 

8. Way Forward

 

The sustainability of development in SCS states can be questionable if it relies heavily on central grants. Long-term development requires building internal capacities and resources, which might not be adequately addressed through SCS alone

 

 

 

For Prelims:  Indian Polity and Governance For Mains: GS-II:Indian Polity and Governance

 

Source: Indianexpress

 

HEATWAVE

 

1. Context

The ongoing spell of extreme heat in many parts of the country has once again reopened discussions on the inclusion of heatwaves as one of the notified disasters under the Disaster Management (DM) Act, 2005

2. What is a Heat Wave?

• A heatwave is a period of abnormally high temperatures, a common phenomenon in India during the months of May-June and in some rare cases even extends till July.
• Indian Meteorological Department (IMD) classifies heat waves according to regions and temperature ranges. As per IMD, the number of heatwave days in India has increased from 413 over 1981-1990 to 600 over 2011-2020.
• This sharp rise in the number of heatwave days has resulted due to the increasing impact of climate change.
• The last three years have been La Niña years, which has served as a precursor to 2023 likely being an El Niño year. (The El Niño is a complementary phenomenon in which warmer water spreads west­east across the equatorial Pacific Ocean.)
• As we eagerly await the likely birth of an El Niño this year, we have already had a heat wave occur over northwest India.
• Heat waves tend to be confined to north and northwest India in El Niño years.

 

Image Source:News18

3. How do Heat waves Occur?

• Heat waves are formed for one of two reasons warmer air is flowing in from elsewhere or it is being produced locally.
• It is a local phenomenon when the air is warmed by higher land surface temperature or because the air sinking down from above is compressed along the way, producing hot air near the surface.
• First of all, in spring, India typically has air flowing in from the west­northwest. This direction of air­flow is bad news for India for several reasons.
• Likewise, air flowing in from the northwest rolls in over the mountains of Afghanistan and Pakistan, so some of the compression also happens on the leeward side of these mountains, entering India with a bristling warmth.
• While air flowing over the oceans is expected to bring cooler air, the Arabian Sea is warming faster than most other ocean regions.
• Next, the strong upper atmospheric westerly winds, from the Atlantic Ocean to India during spring, control the near-surface winds.
• Any time winds flow from the west to the east, we need to remember that the winds are blowing faster than the planet which also rotates from west to east.
• The energy to run past the earth near the surface, against surface friction, can only come from above. This descending air compresses and warms up to generate some heat waves.

4. Impacts of heat waves in India

• The frequent occurrence of heat waves also adversely affects different sectors of the economy.
• For instance, the livelihood of poor and marginal farmers is negatively impacted due to the loss of working days.
• Heatwaves also have an adverse impact on daily wage workers' productivity, impacting the economy.
• Crop yields suffer when temperatures exceed the ideal range.
• Farmers in Haryana, Punjab, and Uttar Pradesh have reported losses in their wheat crop in the past rabi season. Across India, wheat production could be down 6-7% due to heat waves.
• Mortality due to heat waves occurs because of rising temperatures, lack of public awareness programs, and inadequate long-term mitigation measures.
• According to a 2019 report by the Tata Center for Development and the University of Chicago, by 2100 annually, more than 1.5 million people will be likely to die due to extreme heat caused by climate change.
• The increased heat wave will lead to an increase in diseases like diabetes, circulatory and respiratory conditions, as well as mental health challenges.
• The concurrence of heat and drought events is causing crop production losses and tree mortality. The risks to health and food production will be made more severe by the sudden food production losses exacerbated by heat-induced labor productivity losses.
  These interacting impacts will increase food prices, reduce household incomes, and lead to malnutrition and climate-related deaths, especially in tropical regions.

5. How does air mass contribute to heat waves?

• The other factors that affect the formation of heat waves are the age of the air mass and how far it has traveled.
• The north northwestern heatwaves are typically formed with air masses that come from 800-1600 km away and are around two days old.
• Heat waves over peninsular India on the other hand, arrive from the oceans, which are closer (around 200-400km) and are barely a day old. As a result, they are on average less intense.

6. Way ahead for Heat waves

• Identifying heat hot spots through appropriate tracking of meteorological data and promoting timely development and implementation of local Heat Action Plans with strategic inter-agency coordination, and a response that targets the most vulnerable groups.
• Review existing occupational health standards, labor laws, and sectoral regulations for worker safety in relation to climatic conditions.
• Policy intervention and coordination across three sectors health, water, and power are necessary.
• Promotion of traditional adaptation practices, such as staying indoors and wearing comfortable clothes.
• Popularisation of simple design features such as shaded windows, underground water storage tanks, and insulating house materials.
• Advance implementation of local Heat Action Plans, plus effective inter-agency coordination is a vital response that the government can deploy in order to protect vulnerable groups.

For Prelims & Mains

For Prelims: Heat Wave, India Meteorological Department (IMD), El Nino, Equatorial Pacific Ocean, La Nina, Malnutrition, Heat Action Plans. For Mains: 1. Examine the various adverse impacts caused by heat waves and how India should deal with them.

 

Previous Year Questions   1.What are the possible limitations of India in mitigating global warming at present and in the immediate future? (UPSC CSE 2010) 1. Appropriate alternate technologies are not sufficiently available. 2. India cannot invest huge funds in research and development. 3. Many developed countries have already set up their polluting industries in India. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer (a) India faces challenges in addressing Global Warming: Developing and underdeveloped nations lack access to advanced technologies, resulting in a scarcity of viable alternatives for combating climate change. Being a developing nation, India relies partially or entirely on developed countries for technology. Moreover, a significant portion of the annual budget in these nations is allocated to development and poverty alleviation programs, leaving limited funds for research and development of alternative technologies compared to developed nations. Analyzing the statements provided: Statements 1 and 2 hold true based on the aforementioned factors. However, Statement 3 is inaccurate as the establishment of polluting industries by developed countries within India is not feasible due to regulations governing industrial setup Mains 1.Bring out the causes for the formation of heat islands in the urban habitat of the world. (UPSC CSE Mains GS 1 2013)

 

Source: The Hindu

 

NATIONAL INVESTIGATION AGENCY (NIA)

1. Context

The National Investigation Agency (NIA) on Thursday chargesheeted seven persons who allegedly created an Islamic State-inspired terror module in Ballari district of Karnataka.

2. About National Investigation Agency (NIA)

• The National Investigation Agency (NIA) is a federal counter-terrorism law enforcement agency in India.
• It was established in 2008 after the Mumbai terror attack the same year.
• The NIA is empowered to deal with the investigation of terror-related crimes across states without special permission from the states under written proclamation from the Ministry of Home Affairs.
• The primary mandate of the National Investigation Agency is to investigate and prosecute offences that have national and cross-border implications, specifically focusing on terrorism, insurgency, and other related matters.
• The NIA is headquartered in New Delhi and has 12 regional offices across the country.
• It is headed by a Director General of Police (DGP) rank officer.
• The NIA has a team of highly trained and experienced officers who are experts in counter-terrorism investigations.
• The NIA has been successful in investigating and prosecuting several high-profile terrorism cases, including the 26/11 Mumbai attacks, the 2012 Pune bombing, the 2013 Hyderabad blasts, and the 2014 Pathankot attack.
• The NIA has also played a key role in disrupting terrorist networks and preventing terrorist attacks.
• It has arrested several senior terrorist operatives and seized a large quantity of arms and ammunition.

3. The Changes Made under the NIA (Amendment) Act 2019

The National Investigation Agency (Amendment) Act, 2019, brought significant changes and enhancements to the powers and jurisdiction of the National Investigation Agency (NIA) in India. The amendments aimed to strengthen the agency's ability to combat terrorism and other transnational crimes effectively.

The key changes made under the NIA (Amendment) Act, 2019

• The amendment expanded the jurisdiction of the NIA. Previously, the agency could investigate cases related to terrorism and certain other offences listed in the NIA Act.
• The Act adds new offences to the list of scheduled offences that can be investigated by the NIA. These include

• Cyber terrorism under Section 66-F of the Information Technology Act, 2000
• Human trafficking under Section 370 of the Indian Penal Code, 1860
• Counterfeiting of currency or bank notes under Sections 489C and 489E of the Indian Penal Code, 1860
• Manufacture or sale of prohibited arms or ammunition under Sections 25 and 26 of the Arms Act, 1959
• Offenses under the Explosive Substances Act, 1908

• This extension of jurisdiction gives the NIA greater reach and authority in handling cases with international ramifications.
•  The amendment allowed for the establishment of special courts for the trial of NIA cases.
• These courts are designated to expedite the trial process and ensure that cases are heard and disposed of more quickly, particularly in terrorism-related cases.
• The NIA (Amendment) Act introduced provisions for the protection of witnesses.
• It empowers the NIA to request the central government to issue orders for the protection of witnesses.
• Ensuring the safety of witnesses is crucial for the successful prosecution of cases, especially in terrorism-related trials.
• The amended law allows the NIA to seize and attach properties that are believed to be the proceeds of terrorism or used for terrorism-related activities.
• This provision is essential in disrupting the financial networks of terrorist organizations.
• The NIA can now request the central government to seek extradition of individuals involved in terrorism and other offences under the NIA Act.
• This provision facilitates the extradition of accused persons from foreign countries to face trial in India.
• The central government has the authority to designate session courts as NIA Special Courts.
• These courts are responsible for the trial of NIA cases and follow the procedures outlined in the NIA Act.
• The NIA Act includes a schedule listing offences that fall under its jurisdiction.
• The amendment allows for offences in this schedule to be amended by the central government through notification.
• This flexibility allows for the inclusion of new offences based on emerging threats and challenges.
• The NIA (Amendment) Act includes provisions to enhance transparency and accountability in the agency's functioning.
• It mandates the submission of an annual report on its activities to the central government, which is then laid before both houses of Parliament.

4. The Way Forward

The NIA is a vital component of India's counter-terrorism architecture. By taking the necessary steps to improve the NIA's functioning, the government can make the agency more effective in combating terrorism and protecting the country from terrorist threats.

 

For Prelims: National Investigation Agency, Terrorism, NIA Act,2008,  NIA (Amendment) Act, 2019, the Ministry of Home Affairs, Information Technology Act, 2000, Indian Penal Code, Arms Act 1959, Explosive Substances Act, 1908,  For Mains:  1. "The NIA (Amendment) Act, 2019, introduced provisions for the confiscation of property believed to be connected to terrorism." Analyze the significance of this provision in curbing the financial networks of terrorist organizations and its alignment with international counter-terrorism efforts. (250 Words)

 

 

Previous Year Questions 1. The Stiglitz Commission established by the President of the United Nations General Assembly was in the international news. The commission was supposed to deal with: (UPSC CSE 2010) (a) The challenges posed by the impending global climate change and prepare a road map (b) The workings of the global financial systems and to explore ways and means to secure a more sustainable global order (c) Global terrorism and prepare a global action plan for the mitigation of terrorism (d) Expansion of the United Nations Security Council in the present global scenario Answer: B 2. Match List - I with List-II and select the correct answer using the codes given below the lists: (UPPSC 2020) List – I                              List – II A. Indian Arm Act             1. 1876 B. Royal Title Act              2. 1878 C. Indian High Court Act   3. 1869 D. Indian Divorce Act        4. 1861 A. (A) 2, (B) 3, (C) 1, (D) 4 B. (A) 3, (B) 1, (C) 2, (D) 4 C. (A) 1, (B) 2, (C) 3, (D) 4 D. (A) 2, (B) 1, (C) 4, (D) 3 Answer: D 3. Which one of the following is NOT correctly matched? (UPPSC RO/ARO 2020)  A. Prevention of Sedition Meetings Act - 1908 B. Explosive Substances Act - 1908 C. Indian Criminal Law Amendment Act - 1908 D. Newspaper (Incentive to Offence) Act - 1908 Answer: A

 

Source: indianexpress

 

GOODS AND SERVICE TAX (GST)

 

 

1. Context

 

The Centre has decided to convene a meeting of the Goods and Services Tax (GST) Council on June 22, eight-and-a-half months after its last meeting

 

2. What is the Goods and Services Tax (GST)?

• The Goods and Services Tax (GST) is a value-added tax levied on the supply of goods and services at each stage of the production and distribution chain. It is a comprehensive indirect tax that aims to replace multiple indirect taxes imposed by the central and state governments in India.
• GST is designed to simplify the tax structure, eliminate the cascading effect of taxes, and create a unified national market. Under the GST system, both goods and services are taxed at multiple rates based on the nature of the product or service. The tax is collected at each stage of the supply chain, and businesses are allowed to claim a credit for the taxes paid on their inputs.
• The GST system in India came into effect on July 1, 2017, replacing a complex tax structure that included central excise duty, service tax, and state-level taxes like VAT (Value Added Tax), among others. The GST Council, consisting of representatives from the central and state governments, is responsible for making decisions on various aspects of GST, including tax rates and rules.
• GST is intended to create a more transparent and efficient tax system, reduce tax evasion, and promote economic growth by fostering a seamless flow of goods and services across the country. It has a significant impact on businesses, as they need to comply with the new tax regulations and maintain detailed records of their transactions for GST filing

3.Goods and Services Tax (GST) and 101st Amendment Act, 2016

The Goods and Services Tax (GST) in India was introduced through the 101st Amendment Act of 2016. This constitutional amendment was a crucial step in the implementation of GST, which aimed to create a unified and comprehensive indirect tax system across the country.

Here are some key points related to the 101st Amendment Act and GST:

 

• The 101st Amendment Act was enacted to amend the Constitution of India to pave the way for the introduction of the Goods and Services Tax.
• It added a new article, Article 246A, which confers concurrent powers to both the central and state governments to levy and collect GST
• The amendment led to the creation of the GST Council, a constitutional body consisting of representatives from the central and state governments. The council is responsible for making recommendations on GST rates, exemptions, and other related issues
• The amendment introduced a dual GST structure, where both the central government and the state governments have the power to levy and collect GST on the supply of goods and services
• For inter-state transactions, the 101st Amendment Act provides that the central government would levy and collect the Integrated Goods and Services Tax (IGST), which would be a sum total of the central and state GST
• The amendment also included a provision for compensating states for any revenue loss they might incur due to the implementation of GST for a period of five years

The 101st Amendment Act was a critical legislative step that provided the constitutional framework for the implementation of GST in India. It addressed the need for a unified tax system, simplifying the tax structure and promoting a common market across the country. The subsequent establishment of the GST Council has played a pivotal role in the ongoing management and evolution of the GST system in India

 

4. What are the different types of Goods and Services Tax (GST)?

In India, the Goods and Services Tax (GST) is structured into different tax rates based on the nature of the goods and services. As of my last knowledge update in January 2022, the GST rates are divided into multiple slabs. It's important to note that tax rates may be subject to changes, and new amendments could have been introduced since then. As of my last update, the GST rates are as follows:

• Nil Rate:

  • Some goods and services are categorized under the nil rate, meaning they attract a 0% GST. This implies that no tax is levied on the supply of these goods or services.

• 5% Rate:

  • This is a lower rate, applicable to essential goods such as certain food items, medical supplies, and other basic necessities.

• 12% Rate:

  • Goods and services falling in this category attract a 12% GST rate. Items such as mobile phones, processed foods, and certain services fall under this slab.

• 18% Rate:

  • A higher rate of 18% is applicable to goods and services such as electronic items, capital goods, and various services.

• 28% Rate:

  • The highest GST rate of 28% is applied to luxury items, automobiles, and certain goods and services that are considered non-essential or fall into the luxury category.

• Compensation Cess:

  • In addition to the above rates, some specific goods attract a compensation cess, which is levied to compensate the states for any revenue loss during the transition to GST. This is often applied to items like tobacco and luxury cars.

• Zero Rate:

  • Certain categories of goods and services may be specified as "zero-rated," which means they are effectively taxed at 0%. This is different from the nil rate, as it allows businesses to claim input tax credit on inputs, capital goods, and input services.

• Exempt Supplies:

  • Some goods and services may be exempt from GST altogether. This means that they are not subject to any GST, and businesses cannot claim input tax credit on related inputs

 

5.Central GST (CGST), State GST (SGST), Union territory GST (UTGST) and Integrated GST (IGST)

 

 

Subject	Central GST (CGST)	State GST (SGST)	Union Territory GST (UTGST)	Integrated GST (IGST)
Levied by	Central Government	Respective State Governments	Union Territory Administrations	Central Government (on inter-state transactions)
Applicability	On intra-state supplies (within the same state)	On intra-state supplies (within the same state)	On intra-union territory supplies (within the same union territory)	On inter-state supplies (across states or union territories)
Rate Determination	Determined by the Central Government	Determined by the Respective State Government	Determined by the Union Territory Administration	IGST rate is a sum of CGST and SGST rates
Revenue Collection	Collected by the Central Government	Collected by the Respective State Government	Collected by the Union Territory Administration	Collected by the Central Government (on inter-state transactions)
Utilization of Revenue	Shared between Central and State Governments	Retained by the Respective State Government	Retained by the Union Territory Administration	Shared between Central and State Governments
Purpose	Part of the dual GST structure, meant to cover central taxes	Part of the dual GST structure, meant to cover state taxes	Applicable in union territories for intra-territory supplies	Applied to regulate and tax inter-state supplies
Input Tax Credit (ITC)	ITC available for CGST paid on inputs and services	ITC available for SGST paid on inputs and services	ITC available for UTGST paid on inputs and services	ITC available for both CGST and SGST paid on inputs
Tax Jurisdiction	Applies within a particular state	Applies within a particular state	Applies within a particular union territory	Applies to transactions across states and union territories
GSTN Portal for Filing Returns	Central GSTN portal	State-specific GSTN portals	UTGSTN portal	Integrated GSTN portal

 

 

6.What are the benefits of Goods and Services Tax (GST) in India?

 

The Goods and Services Tax (GST) in India was implemented with the aim of bringing about significant reforms in the indirect tax structure. Several benefits have been associated with the introduction of GST.

 

Here are some key advantages:

 

• GST replaced multiple indirect taxes levied by the central and state governments, simplifying the tax structure. This streamlined system reduces the complexity of compliance for businesses
• GST eliminates the cascading effect of taxes, where taxes are levied on top of other taxes. With a seamless credit mechanism, businesses can claim input tax credit on the taxes paid on their purchases, leading to a more transparent and efficient system
• GST has facilitated the creation of a common national market by harmonizing tax rates and regulations across states. This has reduced trade barriers and promoted the free flow of goods and services throughout the country
• The GST system has incorporated technology-driven processes, including electronic filing and real-time reporting, making it harder for businesses to evade taxes. This has contributed to increased tax compliance
• The input tax credit mechanism under GST benefits manufacturers, as they can claim credits for taxes paid on raw materials and input services. This has a positive impact on the cost of production and enhances the competitiveness of Indian goods in the international market
• GST brings transparency to the taxation system. The online filing of returns and the availability of transaction-level data make it easier for tax authorities to monitor and track transactions, reducing the scope for corruption
• GST has replaced a complex system of filing multiple tax returns with a more straightforward mechanism. Businesses now need to file fewer returns, reducing the compliance burden
• The implementation of GST has contributed to an improvement in the ease of doing business in India. The unified tax system has made it simpler for businesses to operate across states and has reduced the paperwork and bureaucratic hurdles associated with tax compliance
• GST has led to the harmonization of tax rates across states and union territories, minimizing the tax rate disparities that existed earlier. This creates a more predictable tax environment for businesses

7.Goods and Services Tax (GST)-Issues and Challenge

 

• Despite the intention to simplify the tax structure, the multi-tiered rate system (0%, 5%, 12%, 18%, and 28%) and the inclusion of cess on certain goods have introduced complexity. The classification of goods and services under different tax slabs can be challenging, leading to disputes and confusion
• The successful implementation of GST relies heavily on technology. Issues such as technical glitches on the GSTN (Goods and Services Tax Network) portal, especially during the initial phases, have caused difficulties for businesses in filing returns and complying with regulations
• The compliance requirements for businesses under GST, including multiple returns filing, have been perceived as burdensome. Smaller businesses, in particular, may find it challenging to adapt to the new system and comply with the various provisions
• The transition from the previous tax regime to GST posed challenges, especially for businesses in terms of understanding the new tax structure, reconfiguring accounting systems, and ensuring a smooth transition of credits from the old tax system to the GST system
• The classification of certain goods and services into specific tax slabs has been a source of contention. Ambiguities in classification have led to disputes and litigations, with businesses seeking clarity on the applicable tax rates
• The implementation of GST has increased compliance costs for businesses due to the need for sophisticated IT infrastructure, the hiring of tax professionals, and efforts to ensure accurate reporting and filing
• Challenges related to availing and matching input tax credits have been reported. Timely matching of credits and resolving discrepancies can be cumbersome, leading to concerns about the seamless flow of credit across the supply chain
• The anti-profiteering provisions were introduced to ensure that businesses pass on the benefits of reduced tax rates to consumers. However, the implementation of anti-profiteering measures has been criticized for its complexity and potential for disputes
• The periodic changes in the GST return filing system have created challenges for businesses in adapting their processes. Delays and complexities in return filing can affect working capital management

8.Goods and Services Tax Council (GST Council)

 

The Goods and Services Tax Council (GST Council) is a constitutional body in India that makes recommendations on the Goods and Services Tax (GST). It was established under the Constitution (122nd Amendment) Act, 2016, which introduced the GST in India

The GST Council consists of the following members:

• The Union Finance Minister, who is the Chairperson of the Council.
• The Union Minister of State in charge of revenue or any other Minister of State nominated by the Union Government.
• One Minister from each state, nominated by the Governor of that state.
• The Chief Secretary of each state, ex-officio.
• If the President, on the recommendation of the Council, so directs, one representative of each Union territory which has a legislature, to be nominated by the Lieutenant Governor of that Union territory.
• Three to seven members (other than Ministers) to be nominated by the Union Government, of whom at least one member shall be from the field of economics and another from the field of chartered accountancy, legal affairs or public finance

9. Way forward

 

It's important to note that the composition and structure of the GST Council may evolve over time, and there might have been changes since my last update in January 2022. To obtain the latest and most accurate information about the GST Council and its members, it is recommended to refer to official government sources or recent announcements by the relevant authorities

 

For Prelims: Economic and Social Development and Indian Polity and Governance For Mains: General Studies II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein General Studies III: Inclusive growth and issues arising from it

 

 

Previous Year Questions   1.Which of the following are true of the Goods and Services Tax (GST) introduced in India in recent times? (UGC Paper II 2020) A. It is a destination tax B. It benefits producing states more C. It benefits consuming states more D. It is a progressive taxation E. It is an umbrella tax to improve ease of doing business Choose the most appropriate answer from the options given below: A.B, D and E only B.A, C and D only C.A, D and E only D.A, C and E only Answer (D)

 

Source: Indianexpress