Echoing the Centre’s concerns on “protectionism”, the Economic Survey has noted that the forthcoming Carbon Border Adjustment Tax (CBAT) mooted by the European Union “went against the spirit of the Paris Agreement”.The Carbon Border Adjustment Mechanism (CBAM), as it is called, are tariffs that will apply on energy-intensive goods imported into the European Union.

A carbon trading platform, also known as a carbon market or emissions trading platform, is a financial marketplace where organizations and entities can buy and sell carbon credits or emissions allowances. The primary goal of carbon trading platforms is to reduce greenhouse gas emissions and combat climate change by creating economic incentives for entities to reduce their carbon emissions.

Here's how a carbon trading platform typically works:

• Emissions Allowances: Governments or regulatory bodies set an overall cap on the total amount of greenhouse gas emissions that are allowed within a specific jurisdiction or sector. This cap is typically established to limit emissions and reduce environmental impact.
• Allocation of Allowances: Under the cap-and-trade system, emissions allowances are distributed or allocated to participating entities, often based on historical emissions or other criteria. These allowances represent the right to emit a specific amount of greenhouse gases.
• Buying and Selling: Entities that emit fewer greenhouse gases than their allocated allowances can sell their excess allowances to those who exceed their allocated limits. This creates a market for emissions allowances.
• Carbon Credits: In addition to emissions allowances, carbon trading platforms may also involve the trading of carbon credits. Carbon credits are typically generated by activities that result in emissions reductions or removals, such as reforestation, renewable energy projects, or energy efficiency initiatives. These credits can be sold to entities looking to offset their emissions.
• Price Determination: The price of emissions allowances or carbon credits is determined by supply and demand in the carbon market. As emissions reduction targets become stricter or as entities seek to voluntarily reduce their carbon footprint, the price of carbon credits can fluctuate.
• Compliance and Offset: Some carbon trading platforms are mandatory and designed to help entities comply with government emissions reduction targets or regulations. Others are voluntary and allow organizations to offset their emissions voluntarily.
• Transparency and Verification: To ensure the integrity of the carbon market, transactions are often subject to rigorous monitoring, reporting, and verification processes. Independent third parties may verify emissions reductions and the validity of carbon credits.
• Environmental Benefits: Carbon trading platforms aim to incentivize emissions reductions, promote the transition to cleaner technologies, and fund projects that have positive environmental impacts.

One of the most well-known carbon trading platforms is the European Union Emissions Trading System (EU ETS), which operates in the European Union and covers various industries, including energy production, manufacturing, and aviation. Other countries and regions have also established their own carbon trading systems to address emissions reduction goals.

Overall, carbon trading platforms play a crucial role in the global effort to combat climate change by putting a price on carbon emissions and encouraging businesses and governments to reduce their environmental impact.

3. What are Carbon Credits?

Carbon credits, also known as carbon offsets or emission reduction credits, are a key component of carbon trading and cap-and-trade systems aimed at mitigating climate change. They represent a measurable reduction in greenhouse gas emissions or the removal of carbon dioxide (CO2) equivalent from the atmosphere. Carbon credits are typically measured in metric tons of CO2 or its equivalent in other greenhouse gases, such as methane (CH4) or nitrous oxide (N2O).

Here's how carbon credits work:

• Emission Reduction or Removal: Carbon credits are generated through activities or projects that either reduce greenhouse gas emissions (e.g., by using cleaner energy sources or improving energy efficiency) or remove carbon dioxide from the atmosphere (e.g., through reforestation or afforestation projects).
• Measurement and Verification: The reduction or removal of emissions must be accurately measured and verified according to established standards and methodologies. Independent third-party organizations often perform this verification to ensure the credibility of the carbon credits.
• Issuance: Once the emissions reduction or removal has been verified, carbon credits are issued. Each carbon credit represents one metric ton of CO2 or its equivalent that has been prevented from entering the atmosphere or removed from it.
• Trading and Sale: Carbon credits can be bought and sold on carbon markets or through specialized trading platforms. Entities that have exceeded their emissions limits or wish to voluntarily offset their emissions can purchase these credits to compensate for their own emissions.
• Compliance and Voluntary Markets: Carbon credits serve different purposes in different markets. In compliance markets, entities purchase credits to comply with emissions reduction regulations or obligations set by governments or regulatory bodies. In voluntary markets, organizations and individuals purchase credits as a means of voluntarily offsetting their carbon footprint.
• Environmental Benefits: The purchase of carbon credits helps fund emissions reduction projects and activities that have positive environmental and climate benefits. These may include renewable energy projects, energy efficiency initiatives, afforestation, reforestation, methane capture from landfills, and more.
• Additionality: One key principle in carbon credit generation is "additionality," which means that the emissions reductions or removals achieved by a project must be above and beyond what would have occurred in the absence of the project. This ensures that credits represent real and additional climate action.
• Sustainability and Co-Benefits: Many carbon credit projects are designed not only to reduce emissions but also to provide social, economic, or environmental co-benefits to local communities, such as job creation, biodiversity conservation, or improved air and water quality.

It's important to note that the carbon credit market is subject to various standards and regulations to maintain transparency, integrity, and credibility. Independent organizations and registries play a role in verifying and tracking the issuance and retirement of carbon credits to prevent double counting and ensure that the emissions reductions are genuine.

Carbon credits are a tool for addressing climate change by incentivizing emissions reductions and supporting projects that contribute to a more sustainable and low-carbon future. They are used by governments, businesses, and individuals to take action against climate change and reduce their carbon footprint.

Carbon trading and carbon credits are closely related concepts within the broader framework of climate change mitigation strategies. They are instrumental in addressing the issue of greenhouse gas emissions and climate change. Here's a detailed explanation of both terms:

Carbon Trading:

• Definition: Carbon trading, also known as emissions trading or cap-and-trade, is a market-based approach to reduce greenhouse gas emissions. It allows entities, such as companies or countries, to buy and sell emissions allowances, effectively putting a price on carbon emissions.
• How It Works: Under a carbon trading system, a regulatory authority or government sets an overall cap on the total amount of greenhouse gas emissions allowed within a specific jurisdiction or sector. This cap is often progressively reduced over time to achieve emissions reduction targets.
• Emissions Allowances: Entities subject to the cap are allocated a certain number of emissions allowances, which represent the right to emit a specific amount of greenhouse gases. These allowances are often distributed based on historical emissions, with the goal of gradually reducing emissions over time.
• Trading of Allowances: Entities that emit less than their allocated allowances can sell their surplus allowances to entities that exceed their limits. This creates a market for emissions allowances, and the price of allowances is determined by supply and demand.
• Compliance and Penalties: Entities are required to surrender a number of allowances equal to their actual emissions at the end of a compliance period. Failure to do so results in penalties. Entities that reduce emissions below their allowances can profit by selling their excess allowances.
• Environmental Goals: Carbon trading aims to achieve emissions reduction goals cost-effectively by allowing entities to find the most efficient ways to reduce emissions, either by reducing emissions directly or by purchasing allowances from others.
• Types of Markets: Carbon trading can occur in both compliance markets, where entities are legally obligated to participate, and voluntary markets, where entities choose to offset their emissions voluntarily.

Carbon Credits:

• Definition: Carbon credits, also known as carbon offsets or emission reduction credits, represent a quantified reduction in greenhouse gas emissions or the removal of carbon dioxide (CO2) equivalent from the atmosphere.
• Generation: Carbon credits are generated through specific activities or projects that reduce emissions or remove carbon from the atmosphere. These activities can include renewable energy projects, energy efficiency initiatives, reforestation, methane capture from landfills, and more.
• Measurement and Verification: To ensure the credibility of carbon credits, the reduction or removal of emissions must be accurately measured and independently verified according to established standards and methodologies.
• Sale and Use: Carbon credits can be bought and sold on carbon markets. Entities that wish to offset their emissions can purchase these credits to compensate for their own emissions, effectively balancing their carbon footprint.
• Environmental Benefits: The purchase of carbon credits helps fund projects that have positive environmental and climate benefits. These projects contribute to emissions reduction, biodiversity conservation, sustainable development, and more

"Net Zero" and "Carbon Neutral" are related but distinct concepts in the context of addressing climate change and reducing greenhouse gas emissions. They both aim to achieve a balance between the amount of greenhouse gases emitted and the amount removed or offset, but they do so in slightly different ways. Here's the difference between the two terms:

COMPETITION COMMISSION OF INDIA

 

 

1. Context

In a confidential submission to the Competition Commission of India (CCI) in May, the firms said the merger would not hurt competition and argued cricket rights would expire in 2027 and 2028 and allow bidding by rivals

 

2. Competition Commission of India

• The Competition Commission of India (CCI) is a regulatory authority established in India to promote and protect fair competition in the marketplace.
• It was established under the Competition Act, 2002, and became fully functional in 2009.
• The primary objective of the CCI is to prevent anti-competitive practices, ensure a level playing field for businesses, and promote consumer welfare
• The Competition Commission of India (within the Ministry of Corporate Affairs) has been established to enforce the competition law under the Competition Act, 2002.
• It should be noted that on the recommendations of Raghavan committee, the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002
• The Commission consists of a Chairperson and not more than 6 Members appointed by the Central Government
• It is the statutory duty of the Commission to eliminate practices having an adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants, in markets in India as provided in the Preamble as well as Section 18 of the Act.
• The Commission is also mandated to give its opinion on competition issues to government or statutory authority and to undertake competition advocacy for creating awareness of competition law.
• Advocacy is at the core of effective competition regulation. Competition Commission of India (CCI), which has been entrusted with implementation of law, has always believed in complementing robust enforcement with facilitative advocacy. It is a quasi-judicial body.

 

3. Key functions and responsibilities 

Here are some key functions and responsibilities of the Competition Commission of India:

1. Competition Advocacy: The CCI engages in advocacy and education activities to promote competition awareness among businesses, government agencies, and the public.

2. Antitrust Enforcement: The CCI investigates and takes action against anti-competitive agreements, abuse of dominance by companies, and anti-competitive mergers and acquisitions. It can impose penalties and remedies on entities found to be in violation of competition laws.

3. Merger Control: The CCI reviews and approves or disapproves mergers, acquisitions, and combinations that may have an adverse impact on competition in the Indian market. It assesses whether these transactions are likely to cause a substantial lessening of competition.

4. Market Studies and Research: The CCI conducts studies and research to understand market dynamics, competition issues, and emerging trends. This information helps in formulating policies and recommendations to improve competition.

5. Competition Advocacy: The commission engages in advocacy efforts to promote competition principles and practices among businesses, government agencies, and the public.

6. Consumer Protection: While primarily focused on promoting competition, the CCI also indirectly promotes consumer welfare by ensuring that markets remain competitive and that consumers have choices and access to fair prices.

7. Regulation of Anti-Competitive Practices: The CCI addresses practices such as price-fixing, bid rigging, and abuse of market power that can harm competition and consumers.

8. Legal Proceedings: The CCI has the authority to conduct investigations, hold hearings, and pass orders. Its decisions can be appealed to higher courts in India.

4. What is the Competition Act?

 

• The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws.
• The Act prohibits anti-competitive agreements, and abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India
• In accordance with the provisions of the Amendment Act, the Competition Commission of India and the Competition Appellate Tribunal have been established
• The government of India replaced Competition Appellate Tribunal (COMPAT) with the National Company Law Appellate Tribunal (NCLAT) in 2017
• The provisions of the Competition Act relating to anti-competitive agreements and abuse of dominant position were notified on May 20, 2009

Competition is the best means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has access to the broadest range of goods and services at the most competitive prices. With increased competition, producers will have maximum incentive to innovate and specialize. This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective. Our goal is to create and sustain fair competition in the economy that will provide a ‘level playing field’ to the producers and make the markets work for the welfare of the consumers

 

5. What is Cartelisation?

Cartels can be difficult to define. According to CCI, a “Cartel includes an association of producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of services”

The International Competition Network, which is a global body dedicated to enforcing competition law, has a simpler definition. The three common components of a cartel are:

• an agreement;
• between competitors;
• to restrict competition.

6. Way forward

CCI needs to revisit its definition of ‘relevant market’. In the age of digital world, defining relevant market has been a tough task for regulators world-wide. Technological developments like Web 3.0, AI, IoT, Blockchain and issues like data protection and privacy, search bias, platform neutrality, confidentiality, etc, have created a need for a robust competition law. Such a law should meet the demands of the technological era we live in.

 

 

For Prelims: Statutory board, Constitutional body For Mains: 1.Discuss the role and functions of the Competition Commission of India (CCI) in promoting and ensuring fair competition in the Indian market 2.Examine the challenges and limitations faced by the Competition Commission of India (CCI) in effectively regulating and promoting competition in the digital economy

 

Previous year Questions  1. Competition Commission of India is which kind of body? (RSMSSB Sanganak 2018) A. Statutory body B. Constitutional. C. Single Member D. Private Answer (A)

 

Source: indianexpress

 

HARAPPAN CIVILISATION

 

1. Context

From referring to the Harappan civilisation as the ‘Sindhu-Sarasvati’ and ‘Indus-Sarasvati’ civilisation, to multiple mentions of the ‘Sarasvati’ river, including noting its desiccation as one of the reasons for the decline of the Harappan society, to a mention of India having had a “prime meridian of its own” called the ‘Ujjayini meridian’ — the new NCERT Class 6 Social Science textbook released on Friday incorporates many new elements

 

2. Harappan Civilisation

• The Harappan/ Indus Valley civilization was the first urban civilization in South Asia, contemporaneous with the civilizations of Mesopotamia and Egypt.
• It was larger than ancient Egypt and Mesopotamia civilizations. First site excavated: Harappa site by Dayaram Sahni in 1921.
• John Marshall: first scholar to use the term Indus Civilisation. Most accepted timeline: 2500 BC-1750 BC (Carbon-14 Dating).
• Period: India Civilization belongs to the proto-historic period- Chalcolithic Age/Bronze Age. Heartland of Indus Civilization: Harappa-Ghaggar- Mohenjo Daro axis.
• Indus sites found in Afghanistan: Shortughai and Mundigaq.
• Capital cities: Harappa, Mohenjodaro.
• Port cities: Lothal, Sutkagendor, Allahdino, Balakot, Kuntasi.
• Areas covered: Harappan civilizationtion was triangular in shape and was the largest among the three ancient urban civilization the other two being ancient Egypt and Mesopotamia (present-day Iraq). It roughly covers modern day Rajasthan, Punjab, Haryana, Gujarat, and Pakistan.
• Father of Indian archaeology: Alexander Cunningham, the first Director-General of the Archaeological Survey of India (ASI).

Image Source: WEB

3. Four phases of Indus Valley Civilisation (IVC)

3.1 Pre-Harappan Phase from 7000 to 3300 BCE

• This stage is located in eastern Balochistan.
• Excavations at Mehrgarh- northwest of Mohenjodaro reveal the existence of Pre- Harappan culture.
• The earliest evidence of farming and herding is in South Asia.
  This shows the first evidence of cotton cultivation. Nomadic people began to lead settled agricultural life.

3.2 Early Harappan Phase from 3300 to 2600 BCE

• Characterized by rudimentary town planning in the form of muddy structures and elementary treat hearts and craft
• Also related to Hakra Phase, identified with the Ghaggar-Hakra valley.
• Village settlements in plain areas; Gradual growth of towns in Indus Valley.
• The transition from rural to urban life in this period.
• Indus script dates back to 3000 BC (This script is still undeciphered) Sites of Amri and Kot diji remain evidence for this stage.

3.3 Mature Harappan Phase from 2600 to 1900 BCE

• Marked by a well-developed town with a burnt brick structure established foreign trade crafts of various types.
• Excavation at Kalibangan with its elaborate town planning and urban features proves this the phase of evolution.
• Slow southward migration of the South Asian monsoon allowed villages to develop by taming floods of the Indus and tributaries.

3.4 Late Harappan Phase from 1900 to 1300 BCE

• It was the declining phase. During this several cities were abandoned and the trade disappeared.
• A gradual decay of significant urban Traits is noticed. Reduction in rainfall triggered a reorganization into large urban centers.
• Mature Harappan civilization was an ‘a fusion of the Bagor, Hakra, and Kot Diji traditions on Borders of India and Pakistan’- According to D.A. Lichtenstein
• Large urban centers include Harappa, Ganeriwal, Mohenjodaro, Dholavira, Kalibangan, Rakhigarhi, Rupar, and Lothal. Excavation at Lothal revealed this stage of evolution.
• Multiple regional cultures emerged within the area of IVC: Culture was in Punjab, Haryana, Western UP; Jhukar culture in Sindh, Rangpur culture was in Gujarat.
• The latest phases of Harappan culture are Pirak in Balochistan, Pakistan, and Daimabad in Maharashtra.
• The largest late Harappan sites are Kudwala in Cholistan, Bet Dwarka in Gujarat, and Daimabad in Maharashtra

4. Town planning and structure

• The towns were in a rectangular grid pattern with roads at right angles. Used burnt mud bricks joined with gypsum mortar (contemporary Egyptian dried bricks were used).
• The city was divided into two parts, the city on a raised platform, known as Upper Citadel & the lower town known as Lower Citadel (working-class quarters).
• A fortified citadel was found, except in Chanhudaro. Most buildings have private wells and properly ventilated bathrooms.
• Do not have large monumental structures such as temples or palaces for rulers, unlike Egyptian and Mesopotamian Civilization.
• Evidence of an Advanced drainage system. At sites such as Dholavira and Lothal (Gujarat), the entire settlement was fortified, and sections within the town were also separated by walls.
• The Citadel within Lothal was not walled off but was built at a height.

5. Agriculture

• Main crops: Wheat and Barley. Evidence of the cultivation of rice in Lothal and Rangpur (Gujarat) only.
• Other crops: Dates, Mustard, Sesamum, Cotton, Rai, Peas, etc.
• First to produce cotton in the world and used it for textiles, Called Sindon by the Greeks.
  Used animal-drawn wooden plough, and stone sickles.
• Gabarbands or Nalas enclosed by dams were found but channel or canal irrigation was
  probably not practiced.
• Produced sufficient food grains and cereals were received as taxes from peasants and stored in granaries for wages and emergencies same as in Mesopotamia.

6. Domestication of Animals

• Animals: Oxen, buffaloes, goats, sheep, pigs, dogs, cats, asses, and camels domesticated.
• Humped bulls were favored by the Harappans. Neither horse centered nor were they aware of it, but evidence of horses is found in Surkotada, Mohenjo Daro, and Lothal.
• The lion was not known.  Elephants and Rhinoceros (Amari) were well known.

7. Technology and Craft

• This is known as the first urbanization in India. Along with stone, they were well acquainted with copper, silver, gold, and bronze (occasionally mixed arsenic with copper instead of tin).
• Iron was not known to the people.
• Important crafts: spinning (Spindle whorls), bricklaying, boat-making, seal making, terracotta manufacturing (potter’s wheel), goldsmiths, bead making.
• They were aware of the use of the wheel.

8. Trade and Commerce

• The importance of Trade is established by the presence of Granaries, seals, a uniform script, and regulated weights and measures.
• They engaged in inter-regional as well as foreign trade. Sumerian texts refer to trade relations with Meluha i.e. ancient name given to the Indus region & mentions two intermediate trading stations- Dilmun (Bahrain) & Makan (Makran coast).
• Used boats and bullock carts for transportation. No metallic money was in circulation and trade was conducted by means of barter.
• Import: Gold, Silver, Copper, Tin, Jade, Steatite.
• Exports: Agricultural products, cotton goods, terracotta figurines, beads from Chanhudaro, conch-shell from Lothal, ivory products, copper, etc.

9. Social Organisations

• Hierarchy in urban habitation. Merchants and priests were an important class of this period.
• Harappans were fashion-conscious. Different hairstyles and wearing a beard were popular.
• The use of cosmetics was common (Cinnabar, lipstick, and collyrium) Necklaces, filets, armlets, and finger rings were worn by both men and women but bangles, girdles, anklets, and ear-rings were worn by women only.
• Beads were made from gold, copper, bronze, cornelian, quartz, steatite, lapis lazuli, etc. - naturalistic animal models as pin-heads and beads.

10. Religious Practices

• Seal: Male deity Pashupati Mahadeva (proto- siva), three-horned heads, and is represented in the sitting posture of a yogi, surrounded by an Elephant, Tiger, Rhinoceros, and Buffalo, and two deer at his feet.
• Harrapan was a predominantly secular civilization. Prevalence of the Phallus (Lingam) and Yoni, two deer.
• The chief female deity was the mother Goddess. They worshiped both male and female deities.
• The people of the Indus region also worshiped trees (pipal), fire, and animals (unicorns, humped bulls, etc).
• Harappans believed in ghosts and evil forces. They used amulets against them.
• Burials: At burials in Harappan sites the dead were generally laid in pits. Some graves contain pottery and ornaments, perhaps indicating a belief that these could be used in the afterlife.
• Jewelry has been found in the burials of both men and women.

11. Seals and Sealings

• Most of the seals are square-shaped (2x2 square inches) and made mostly from Steatite.
• Seals had an animal (except cow and horse) or human figure on one side and an inscription on the opposite side or inscriptions on both sides.
• Seals were primarily used for commercial purposes, as an amulet, as a form of identification, and for educational purposes as well.
• Seals with symbols similar to the Swastika design have also been found. The round Persian Gulf seal found in Bahrain sometimes carries Harappan motifs.
• Interestingly, local Dilmun weights followed the Harappan standard. 

Image Source: Web

12. Art

• Bronze Casting: Practiced on a wide scale using the lost wax or Cire Perdue technique. They mainly consist of human and animal figures. Example: Dancing Girl. She stands in a Tribhanga dancing posture.
• Stone Statues: Bearded man: found in Mohenjo- daro and made of Steatite, interpreted as a priest.
• Red sandstone: a figure of a male torso is found in Harappa and made of Red sandstone.
• Terracotta Figures: Found less in number and crude in shape and form. Examples: Mother Goddess, the mask of a horned deity, toys, etc.

13. The Decline of Indus Valley Civilisation

The IVC declined around 1800 BCE but the actual reasons behind its demise are still debated between:

• Aryan Invasion: One theory claims that Indo-European Tribe i.e., Aryans invaded and conquered the IVC.
• Natural Factors: On the other hand, many scholars believe natural factors are behind the
  decline of the IVC.
• The natural factors could be geological and climatic.
• It is believed that the Indus Valley region experienced several tectonic disturbances which
  causes earthquakes. Which also changed the course of rivers or dried them up.
• Another natural reason might be a change in patterns of rainfall or it could have been due to a combination of these natural and anthropogenic causes.

For Prelims: Indus Valley Civilisation, Pre-Harappan Phase from 7000 to 3300 BCE, Early Harappan Phase from 3300 to 2600 BCE, Mature Harappan Phase from 2600 to 1900 BCE, and Late Harappan Phase from 1900 to 1300 BCE, Lothal, Sutkagendor, Allahdino, Balakot, Kuntasi. For Mains: Discuss the phases of the Indus Valley Civilisation and explain the Political and Social life during the Indus Valley civilization. (250 Words).

Previous year Questions

1. Regarding the Indus Valley Civilization, consider the following statements: (UPSC 2011) 1. It was predominantly a secular civilization and the religious element, though present, did not dominate the scene. 2. During this period, cotton was used for manufacturing textiles in India. Which of the statements given above is/are correct? A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 Answer: C

Source: World History Encyclopedia

 

INTERNATIONAL COURT OF JUSTICE (ICJ)

 

 

 

1. Context

The International Court of Justice (ICJ), the United Nations’ principal judicial organ, said on July 19 2024 that Israel’s occupation of the West Bank and East Jerusalem violated international law, and its presence in Palestinian territories should come to an end “as soon as possible”.

 

2.Why Israel faced accusations at the World Court?

 

• South Africa brought a case against Israel to the ICJ on December 29, under UN’s 1948 Genocide Convention. In its application, South Africa argued that Israel, in its ongoing Gaza assault, has transgressed from the provisions of Article 2 of the Convention. This article defines the term “genocide” to mean “acts committed with intent to destroy, wholly or partly, a national, ethnic, racial, or religious group”.
• The ICJ will eventually decide whether Israel is committing genocide or not — this may take years. But first, it will decide whether it has jurisdiction on this matter, and whether the alleged acts fall under the 1948 Convention.
• South Africa has also sought interim relief for the Palestinians, and asked the ICJ to order Israel to immediately suspend all military operations in Gaza, as an interim measure.
• The court is likely to rule on this in a matter of weeks. While the court’s rulings are legally binding, it has no way to enforce them. Nonetheless, its opinions carry weight with the UN and other international institutions

3.What is UN’s 1948 Genocide Convention?

 

• The United Nations Convention on the Prevention and Punishment of the Crime of Genocide, commonly known as the Genocide Convention, was adopted by the United Nations General Assembly on December 9, 1948, and entered into force on January 12, 1951. It was one of the first major international treaties established in the aftermath of World War II, aiming to prevent and punish the crime of genocide.
• The Genocide Convention defines genocide as certain acts committed with the intent to destroy, in whole or in part, a national, ethnical, racial, or religious group. The acts specified in the convention include killing members of the group, causing serious bodily or mental harm, deliberately inflicting conditions leading to the group's physical destruction, imposing measures to prevent births within the group, and forcibly transferring children from the group to another.
• The convention recognizes genocide as a crime under international law and obligates its signatories to prevent and punish acts of genocide. Signatory states are required to take measures within their jurisdiction to prevent and punish genocide, both in times of peace and during armed conflicts. Additionally, the convention established the International Court of Justice (ICJ) as the primary judicial organ for disputes related to its interpretation and application.
• The Genocide Convention remains a crucial international legal instrument for addressing and preventing the most egregious crimes against humanity. It has played a significant role in shaping the framework for international criminal law and promoting accountability for those responsible for genocide

 

4.What is International Court of Justice?

 

The International Court of Justice (ICJ) is the principal judicial organ of the United Nations (UN). It was established in 1945 and began its activities in 1946. The ICJ is located in The Hague, Netherlands.

The main functions of the International Court of Justice include settling legal disputes between states and providing advisory opinions on legal questions referred to it by the UN General Assembly, the UN Security Council, or other specialized agencies and organs authorized by the UN. It is important to note that the ICJ only deals with legal disputes between states and does not have jurisdiction over individuals or non-state entities.

Key features of the International Court of Justice:

• Composition: The ICJ consists of 15 judges elected by the UN General Assembly and the UN Security Council. These judges serve nine-year terms, and the composition aims to represent a fair geographical distribution.

• Jurisdiction: The ICJ has two main types of jurisdiction:

  • Contentious Jurisdiction: The ICJ hears cases between states that voluntarily submit their disputes to the Court. Both parties must agree to the Court's jurisdiction.
  • Advisory Jurisdiction: The ICJ provides advisory opinions on legal questions referred to it by UN organs and specialized agencies. These opinions are advisory and not binding.

• Adjudication: The Court uses a range of legal principles, treaties, and customary international law to make its decisions. The judgments of the ICJ are final and binding on the parties involved in the case.

• Independence: The ICJ operates independently of the UN General Assembly and the UN Security Council in its judicial functions. It is intended to function as a separate judicial body.

• Role in International Law: The ICJ contributes to the development and clarification of international law through its judgments and advisory opinions. Its decisions are considered influential in shaping the principles of international law

 

5.International Criminal Court and International Court of Justice

 

Aspect	International Criminal Court (ICC)	International Court of Justice (ICJ)
Establishment	Established in 2002 by the Rome Statute	Established in 1945 by the United Nations Charter
Nature	Criminal court with jurisdiction over individuals for serious crimes	Principal judicial organ of the United Nations, handles state disputes
Jurisdiction	Primarily focuses on individuals for crimes like genocide, war crimes, crimes against humanity, and aggression	Resolves legal disputes between states, gives advisory opinions
Membership	States become members by ratifying the Rome Statute	Open to UN member states; states must accept ICJ's jurisdiction
Prosecutorial Authority	Independent Prosecutor appointed by the Assembly of States Parties	No prosecuting authority; relies on disputing states to present cases
Adjudication	Adjudicates cases against individuals for criminal responsibility	Adjudicates disputes between states; provides advisory opinions
Composition	Judges elected by the Assembly of States Parties	15 judges elected by the UN General Assembly and the UN Security Council
Location	The Hague, Netherlands	The Hague, Netherlands
Focus	Individual criminal responsibility	State-to-state disputes, advisory opinions
Binding Decisions	Decisions are binding on individuals and states	Judgments and opinions are binding only on the parties involved
Role in International Law	Enforces and develops international criminal law	Contributes to the development of general principles of international law
Relationship with the UN	Independent organization but cooperates with the UN	Principal judicial organ of the UN

 

 

6. Way forward

 

The ICJ will eventually decide whether Israel is committing genocide or not — this may take years. But first, it will decide whether it has jurisdiction on this matter, and whether the alleged acts fall under the 1948 Convention. South Africa has also sought interim relief for the Palestinians, and asked the ICJ to order Israel to immediately suspend all military operations in Gaza, as an interim measure. The court is likely to rule on this in a matter of weeks. While the court’s rulings are legally binding, it has no way to enforce them. Nonetheless, its opinions carry weight with the UN and other international institutions

 

 

 

 

 

For Prelims: Current events of national and international importance. For Mains: General Studies II: Important International institutions, agencies and fora- their structure, mandate.

 

Source: Indianexpress

 

LINGAYATS AND VOKKALIGAS

 

 

1.Context

The Panchamasali Lingayats, a dominant agrarian caste in Karnataka, are on a warpath again, demanding 2A category reservation under the OBC list.

 

2.About Lingayats & Vokkaligas

2.1.Lingayats

• The Lingayats are a dominant community who make up nearly 17% of Karnataka’s six crore population .
• The community can determine the outcome of polls in as many as 90-100 of the state’s 224 Assembly constituencies.
• The Lingayats, classified as a Hindu sub-caste called Veerashaiva Lingayats, are essentially followers of the 12th-century philosopher Saint Basavanna, who started a movement to help sections of society break away from the chains of caste.
• The Veerashaiva Lingayats are an amalgamation of the followers of Basavanna’s teachings and Veerashaivas who follow more traditional Hindu practices. 
• The Lingayat community has many sub-sects identified on the basis of the vocations they followed.

2.2.Vokkaligas

• The Yelahankanadu  Prabhus were Gowdas or tillers of the Land. They belonged to Gangatgar Vokkalu sect, the ancestors of which were migrants from Morasunadu near Kanjeepuram ,They used to speak Telugu.
• Fourth in succession from Rana Bhairave Gowda, founder of the dynasty of Avanti Nadu Prabhus and great grandson of Jaya Gowda, who established separate dynasty, the famous Yelahanka Nadu Prabhus, Kempe Gowda I ruled for 46 years commencing his reign from 1513
• Jaya Gowda accepted the sovergnity of the Vijayanagar emperor.
• Today the Vokkaliga community embraces within its fold the Morasu Vokkaligas, the Gangadicara Vokkaligas, Reddy Vokkaligas, Kunchitiga Vokkaligas, Hallikaru Vokkaligas and so on.

 

3.Key takeaways

• Veerashaiva Lingayats have been provided 5% reservation under a special category called 3B. 
• A sub-sect called the Panchamasali Lingayats basically agriculturists who account for nearly 70% of Lingayats  have now risen in protest seeking reservations under the category 2A, which currently provides 15% reservations to backward castes.
• Vokkaliga community, which is currently in the 3A category, will be moved to a newly-created 2C category with 4% reservation.
• Karnataka currently has 32% quota for OBC, and 17% and 7% quota for Scheduled Castes and Scheduled Tribes, respectively, taking the total to 56%.
• Lingayats are considered the most populous community in the state, followed by Vokkaligas. The new categories will not affect the existing reservation provided to other communities.
• The increase in reservation from the one granted currently to these communities — 4% for Vokkaligas and 5% for Lingayats  via redistribution of the EWS quota will be based on the population of various communities assessed by the Karnataka State Commission for Backward Classes

 

 

 

For Prelims: Lingayats, Vokkaligas, Basava For Mains: 1.Discuss the role of the National commission for backward classes in the wake of its transformation form a statutory body to a constitutional body

 

Previous Year Questions   1.With reference to the cultural history of medieval India, consider the following statements:(UPSC CSE 2016)   1. Siddhas (Sittars) of Tamil region were monotheistic and condemned idolatry. 2. Lingayats of Kannada region questioned the theory of rebirth and rejected the caste hierarchy. Which of the statements given above is/are correct? A. 1 Only B. 2 Only C. Both 1 and 2 D. Neither 1 nor 2 Answer (C) 2.Consider the following statements about the Lingayats: (UPSC CAPF 2020)   1. They bury their dead. 2. They are great believers in the caste system, especially in the theory of purity and pollution. 3. They are against child marriage and favour widow remarriage. Which of the statements given above is/are correct? A. 1 and 2 B. 1 Only C. 2 and 3 D. 1 and 3 Answer (D)

 

Source: The Hindu

 

NON PERFORMING ASSET (NPA)

 

 

 

1. Context

a significant reduction in bad loans and timely recapitalisation have meant that the banking sector is very well-placed to lend. Together with rising credit supply from alternative channels and financial innovation, the growth finance available for both the “great Indian infrastructure build-out” and corporate capital expenditure is arguably the largest in memory, including as a percentage of nominal GDP

 

2. What is a Non-Performing Asset (NPA)?

A Non-Performing Asset (NPA) refers to a classification used by financial institutions, primarily banks, to categorize loans or advances that are in default or are in arrears on scheduled payments of principal or interest. In simpler terms, when a borrower fails to make interest or principal payments for a certain period of time, typically 90 days or more past the due date, the loan is classified as a non-performing asset.

NPAs are detrimental to banks and financial institutions as they indicate a risk of default and can lead to financial losses. These assets can hamper the lender's ability to generate income through interest and can also impact their capital adequacy and liquidity.

Financial institutions employ various strategies to manage and recover NPAs, such as restructuring loans, loan recovery processes, selling off bad debts to asset reconstruction companies, or writing off the non-recoverable amount from their books

3. NPA (Non-Performing Assets) –Classifications

Non-performing assets (NPAs) are classified based on the period for which the loan remains overdue and the likelihood of recovery. The classifications typically involve three categories:

1. Substandard Assets: These are assets that have remained non-performing for less than or equal to 12 months. They are characterized by the bank or financial institution experiencing a potential loss if full repayment occurs. Substandard assets have a higher risk of turning into bad loans.

2. Doubtful Assets: These assets have remained in the non-performing category for more than 12 months. There is a significant risk associated with these assets, where the full repayment of the loan is highly uncertain. However, there might still be some potential, albeit remote, for recovery.

3. Loss Assets: When the assets' loss has been identified by the bank or financial institution or an external auditor, and these assets have very little chance of recovery, they are classified as loss assets. These assets are considered uncollectible and of such little value that their continuance as assets is not warranted, and the entire outstanding balance is written off.

These classifications are crucial for banks and financial institutions to assess the health of their loan portfolios and take appropriate measures to manage and mitigate risks associated with NPAs

4. What is the difference between Bank fraud and Non-Performing Assets (NPA’s)?

Bank fraud and Non-Performing Assets (NPAs) are two distinct issues in the banking sector, although they can sometimes be interconnected.

Bank Fraud: Bank fraud involves deliberate deception or dishonest actions carried out by individuals or groups, intending to gain an unfair or unlawful advantage, causing financial loss to the bank or its customers. Fraud can take various forms, such as embezzlement, forgery, loan fraud, identity theft, money laundering, or manipulating financial statements. It's essentially a criminal act involving deceit, misrepresentation, or illegal activities that lead to financial losses for the bank.

Non-Performing Assets (NPAs): NPAs refer to loans or advances that have stopped generating income for the bank because the borrower has defaulted on repayment. When a borrower fails to pay interest or principal for a specified period, typically 90 days or more, the loan is classified as an NPA. NPAs can arise due to various reasons such as economic downturns, borrower insolvency, mismanagement, or inadequate risk assessment by the lending institution.

While these issues are distinct, there can be situations where bank fraud contributes to the creation of NPAs. For instance, if a fraudulent loan is issued based on false documents or misrepresented information, it might result in the borrower defaulting on payments, eventually turning the loan into an NPA

5. What are the impacts of Non-Performing Assets (NPA)

Non-Performing Assets (NPAs) can have significant impacts on banks, the economy, and the overall financial ecosystem.

Here are some of the key effects:

• NPAs erode a bank's profitability as they stop generating income through interest payments. This affects the bank's ability to lend further and impacts its overall financial health. A high level of NPAs can weaken a bank's capital base, affecting its ability to absorb losses and maintain stability
• Banks with high NPAs become cautious about lending, especially to risky sectors or borrowers, leading to a credit crunch. This restricted lending can hamper economic growth as businesses and individuals find it challenging to secure credit for expansion or investment
• High NPAs can dent depositor and investor confidence in the banking system. Customers might withdraw deposits or shift to more stable institutions, causing liquidity issues for the affected bank
• NPAs can have broader economic repercussions. When banks face financial strain due to NPAs, their ability to support economic growth through lending diminishes. This can affect employment, investments, and overall economic development
• Regulators monitor and impose stricter norms on banks with high levels of NPAs to ensure financial stability. Banks might face regulatory penalties or restrictions, impacting their operations and growth prospects
• Banks might need additional capital infusion to cover the losses arising from NPAs. This can strain the bank's resources or necessitate seeking external funding, impacting shareholders and overall financial planning

6. Measures to control Non-Performing Assets (NPA)

Controlling Non-Performing Assets (NPAs) is crucial for the financial health of banks and the stability of the financial system. Several measures can be implemented to manage and control NPAs effectively:

Prudent Lending Practices: Implementing robust credit appraisal and risk assessment mechanisms before disbursing loans can prevent potential NPAs. Thoroughly evaluating borrower creditworthiness, financial stability, and collateral can mitigate risks.

Early Detection and Monitoring: Early identification of potential NPAs is crucial. Banks should closely monitor repayment schedules and intervene at the first signs of distress. Timely action can prevent assets from slipping into the NPA category.

Loan Restructuring and Rescheduling: Offering viable borrowers alternative repayment structures can help them meet their obligations. Loan restructuring involves altering repayment terms, interest rates, or extending the tenure to make repayments more manageable.

Asset Quality Review (AQR): Conducting regular asset quality reviews helps in identifying stressed assets early on. This enables banks to take proactive measures to prevent assets from turning into NPAs.

Asset Reconstruction Companies (ARCs): Collaborating with ARCs allows banks to transfer NPAs to specialized entities that focus on recovering these assets. It helps banks clean up their balance sheets and concentrate on core operations.

Strengthening Recovery Mechanisms: Banks should have robust recovery mechanisms in place, including legal recourse and debt recovery tribunals, to expedite the recovery of NPAs. Effective recovery minimizes losses for the bank.

Loan Recovery through Securitization and Asset Sale: Selling NPAs to other entities or securitizing them can provide liquidity and reduce the burden on banks. However, this should be balanced with ensuring fair value realization.

Prudential Norms and Regulatory Compliance: Adhering to prudential norms set by regulatory authorities helps in maintaining healthy asset quality. Compliance with regulations ensures timely recognition and provisioning for NPAs.

Debt Recovery Tribunals (DRTs) and SARFAESI Act: Utilizing legal mechanisms like DRTs and the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act expedites the recovery process and acts as a deterrent against defaulting borrowers

7. Way forward

Implementing these measures collectively and consistently can aid in controlling NPAs, maintaining a healthy loan portfolio, and preserving the stability of the banking sector.

 

For Prelims: Current events of Economy in Indian Scenario, RBI measurement to Control Non Performing Assets (NPAs) For Mains: General Studies III: Non Performing Asset (NPAs), Bad Bank

 

Previous Year Questions 1.Consider the following statements: Non-performing assets (NPAs) decline in value when (UPSC ESE 2018) 1. Demand revives in the economy. 2. Capacity utilization increases. 3. Capacity utilization, though substantive, is yet sub-optimal. 4. Capacity utilization decreases consequently upon merger of unit. Which of the above statements are correct? A.1, 3 and 4 only B.1, 2 and 4 only C.1, 2 and 3 only D.1, 2, 3 and 4 Answer (C)

Source: Indianexpress